Nickel Industries Limited

Thank you and thank you everyone for joining the Nickel Industries full year results call. Could I please ask the slide moderator to move the slides to page two. I'm very pleased to report full year results of record group EBITDA of US $403 million, a 19% increase on the $339 million that was recorded for FY22. Policies moderator, it's the next slide, number two. Record gross profit of US $338 million. Record operating profit of US $280.7 million, which translated into profit after tax of US $176.2. We saw a significant increase in our nickel production, up from 70,079 tons in FY22 to 131.26 tonnes, so an 87% increase in nickel tonnes, which translated into record RKEF EBITDA of US$337 million and NIC, or Nickel Industries Attributable Nickel, of $103,364. At the mine, excellent year at the Heng Jaya mine. Record production, $13.4 million, up 97% on the $6.8 million for FY22. And record mine EBITDA of US $87.9 million. And that's been driven by completion of the HMI to IMIP haul road, which delivered US $42 million in EBITDA in the December quarter alone. And so we look forward to continued strong performance from the Hang Jaya mine. And the mine was awarded a green proper rating again for the second consecutive year. These very substantial results translated into declaration of a final dividend of Australian 2.5 cents per share, a four-year dividend of 4.5 cents per share, as well as announcement of a non-market share buyback of up to US$100 million. over the next 12 months I think signalling to the market that financially NIC is in a very strong position and that we see the current share price that in our view that the share price is very undervalued. We have a very strong balance sheet, net debt of US$66.2 million. I think importantly we are fully funded for our transition into the class one nickel space On the ESG side, a number of important milestones, including execution of an operational lease agreement for Indonesia's largest 200-megawatt peak solar project, as well as electric vehicle trucks, and completion of a AUD$943 million placement to United Tractors and invitation to present at the COP28 climate summit in Dubai where we unveiled our carbon targets of 50% reduction by 2035 and net zero by 2050. Next slide, please. Safety. Excellent year for safety. 16.7 million LTI-free man-hours were worked across all of NIC operations in 2023, which is a very, very good result. We continue to focus on leading the way in safety and continuous improvement. Slide four, please. Just by numbers, group revenue 4.5% to $1.8 billion. Gross profit up 15% to $338 million. Operating profit $280 million, up 8%. Profit after tax was down to $176 million. And I'll let Chris touch on that later on when we get to Q&A, but driven by some finance and interest expenses. Profit attributable NIC of $121 million. Group EBITDA of $403 million, as I mentioned, up 19%. EBITDA from RKEF operations, $337 million, up 13%. EBITDA from mine, $87.9 million, up 63%. And we expect that EBITDA from mine operations to continue to grow. Off the back of these strong results, there was an increase in the full-year dividend. which brought the final result to 4.5 cents, which is a 12.5% increase. I should note that these results have been achieved against the back of the materially lower LME nickel price, which has declined from 25,623 to 21,487, so a 19% decrease. And we only... captured oracle nickel production in Q3 of last year. And if you look at how our newer oracle and angel nickel RKEF assets are performing, they're performing very well. So oracle delivered 82.5 million of EBITDA and angel nickel, which is fully ramped up for the year, delivered US 179.5. So there's certainly more upside for this year, given that we now have, we will get a full year of production from Olical Nickel. If we could just go to slide five, please. I mentioned that we have a very strong balance sheet, net debt of US $66.2 million. and we are fully funded for our transition into the Class 1 battery grade nickel space and again we're taking the lead there in being the first company to develop an HPAL that will produce three Class 1 nickel projects. Our ability to fund throughout the year was driven by successful equity and debt raisings which included $185 million institutional placement, $270 million placement to Shanghai Decent, $20 million retail share purchase plan, a $943 million Australian strategic placement to United Tractors, which was done at $1.10. That's a 30% premium, more than a 30% premium to today's share price. And the US $400 million senior unsecured notes We also have established a US $400 million maiden funding lines with Bank Negara Indonesia, one of Indonesia's largest banks, that was successfully syndicated out to an additional eight banks. with a strong mix of Asian, European and global banking institutions involved. And as I said, that's the first time an Indonesian bank has come into funds in HPAL. And that's really off the back of the very strong ESG credentials of nickel industries and our operations. Collectively, these initiatives have allowed us during the year to acquire an additional 10% in the ONI RKEF project, acquire an initial 10% interest in the HNC HPOWER project, and secured an option to invest in a nickel-matte converter for our ONI RKEF project. It also means that it's allowed us to take a final investment decision for a 55% interest in the ENC HPAL project. If we could just move to slide six, you can just see here the EBITDA reconciliation. And you can see there on the table on the right, those interest and expense amounts, some are financial. that impacted on our EBITDA as well as some withholding tax for FY23. Just move to slide seven, please. You can see throughout the year the strong ramp-up quarter on quarter. Starting March 23, we delivered 27,398 tonnes. You can see in the white bubble chart for the quarter the average LME price was and that delivered 113.2 million US in EBITDA from operations. Moving to the far right of that chart, production was up to 36,273 for the quarter, the December quarter. Again, the white bubble chart, the LME price was down 48% to 17,288. yet our EBITDA from operations was actually up to $135 US, up from $113 million at the beginning of the year. So I think it just highlights the robustness of the business throughout the year, as I mentioned earlier, in a challenging nickel price environment. If we could just move to slide eight, please. The anxiety of mine, we're seeing very strong results coming through from the Heng Jaya mine as a result of completion of the haul road which has allowed us to sell significantly larger tons. The annual EBITDA of US$87.9 million up 63% on FY22 and we expect as well to capture a full year now of this steady run rate of sales of about 10 million tons a year. I mentioned again Fourth quarter, during the December quarter, 42.5 million U.S. EBITDA from the mine alone for a single quarter. So it's performing extremely well. Slide nine. ESG. We continue to play a leadership role in sustainable mining in Indonesia. Some of the awards and accolades that we received throughout the year The S&P, we're in the second top quartile worldwide of ESG performers as ranked by S&P. We have the highest MSCI ESG, any Indonesian-based metal mining company. Below that, you can see from a number of different groups, a number of different awards, gold awards. Moving over to the next column, award of our second consecutive green proper rating, again, only one of two mining companies in all of Indonesia to have a green proper rating. We are striving to hopefully be the first company to achieve gold. To put it into some sort of perspective, this rating which is undertaken by the Indonesian Ministry of Environment and Forestry is A number of different companies are audited. This isn't just mining companies, this is agricultural companies, shipping companies. Of the 3,694 companies that were audited last year, only 196 or less than 5% achieved this rating. Off the back of the work that we've been doing, we were invited to present at the COP28 climate summit in Dubai. And it was there that we unveiled our net zero targets of a 50% reduction by 2035 and net zero by 2050. And other ESG initiatives that we undertook during the year was the first successful trial of electric vehicle trucks in Indonesia. And we will be looking to wrap those numbers up towards the end of this year. And as I mentioned earlier, a binding agreement to become the sole off-taker of Indonesia's largest solar project, which is 200-megawatt peak plus 20-megawatt-hour battery energy storage system. If we could just move to slide 10. The company is now diversifying its production into Class 1 nickel space in a large and meaningful way, and that will be through the Excelsior ENC nickel project. Again, it will be built with our partners Shanghai Decent. It will have 72,000 tonnes of capacity. It will be the first project globally that will have the capability to produce MHP, nickel sulphate and nickel cathode. That gives us product diversification and the flexibility to sell into various segments of the Class 1 nickel market where we may see superior margin opportunities. NIC will own 55%. As with all of our other projects, it comes with a construction guarantee, and the capex is US$2.3 billion on a 100% basis, which includes all auxiliary facilities, including tailings, sulfuric acid plant, and other supporting infrastructure. It comes with a timeframe guarantee of no more than two years and also a nameplate guarantee. been successfully awarded a 15-year tax holiday from the Indonesian government so ENC will pay zero tax for 15 years and then another additional two years at 11%. Our 55% stake in ENC which translates to US $1.265 billion is fully funded from existing cash on the balance sheet And that cash has been built through the strong EBITDA, strong RKEF and mine operations, but as well as the $943 million Australian placement to United Tractors, as I mentioned, at $1.10 at a 30% premium, and partly through $400 million US loan facilities from BNI, which we see as a bridge to potential project financing. We can just go to slide 11. This is just really the milestones across the various quarters for 2023. Again, another very busy and productive year. Started with completion of the institutional placement and retail SPP in the March quarter and the execution of the electric vehicle battery supply chain framework. So that was sort of that signaled our intention to move into the Class 1 market in a big way. In the June quarter, completion of five-year US $400 million senior unsecured notes and the commencement of first commercial sales from Oracle Nickel, as well as the announcement of the $943 million placement to United Trackers. That allowed us to... to increase our interest in Oracle Nickel by 10% and moved to 80%. We also completed an equity issuance to Shanghai Decent for 270 million US, acquired 10% interest in HN, trading HPAL. and has given us access to mixed hydroxide precipitate that we can market to potential new customers. And we've already sent some samples to some customers, and we're in negotiations as to sales of that MHP. In the September quarter, we also completed the Hengzai Mine to IMIP haul road, And the results of that were really delivered in the December quarter, whereas I mentioned it was 42 million US in EBITDA was delivered from the Hangzhou mine. Finally, a very busy final December quarter, execution of the solar agreement, presentation at the COP28 summit in Dubai, a positive fit for EMC, trial of the electric vehicle trucks, announcement of nickel match sales to Glencore, so the first sales that are outside of sales of our nickel pig iron to Chingsan. We acquired our initial 13.75% in ENC, and construction there is progressing very well. And subsequent to year-end announcement of a capital management framework, with an increased final dividend and an on-market share buyback. So in summary, it's been, despite a significant decline in nickel price over 2023, we've seen an increase in EBITDA from all of our operations, which are performing very well. We are fully funded for our transition into higher margin, lower carbon intensity, class one nickel, which will bring us a diversified customer base. And we are launching very shortly a process to look to attract a strategic investor and off-taker into the ENC HPAL project. And we've seen very strong interest to date. And so we look forward to that. for launching that process. With that, I will hand over to Q&A.

Thank you very much. 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 are on a speakerphone, please pick up your handset before asking the question. Our first question comes from Cameron Taylor from Bank of America. Cameron, please go ahead.

Good morning, Justin. Well done on the results. Just a couple of questions, if I may. The first is on Indonesia's RKAB approvals. There's concerns around shortages of nickel oil, given that less than 40 miners in Indonesia had received these approvals. Obviously, it's a net benefit for Heng Jaya and also NPI prices. Can you just talk a bit about that and how it impacts nickel industries?

Yes, so look, there has been delays in issuance of RKAB approvals. I'm pleased to report that ours has been issued. but it certainly did take a long time to get issued. That was partly impacted as well by the elections that we had in February 14. I think what it does signal is that the Indonesian government is cracking down on the quality of mining operations and is certainly undergoing much tighter scrutiny. That delay in RKAB has led to a bit of a decline in NPI grades as it's taken time for mines to be issued their RKAB and then start supplying ore again. In the interim, it's meant that we've had to go into some of our lower grade ore stockpiles for our RKEFs. But on the positive side, these new RKAB approvals are now a three-year duration rather than historically it was always required to be done at the beginning of every year and unfortunately very often there was delays so I think with the new three-year issuance that will set a much clearer runway for the next three years and won't certainly limit the impact of delays in issuing RKAB and delays in all supply to our RKEF operations.

Okay, that's helpful. Thank you. And just secondly, with respect to ENC, are United Tractors still interested in acquiring 20%? You mentioned on the slide 10 that the second stage is subject to funding. But would you also consider the fact that China are sort of on the verge of becoming a net exporter of refined nickel? This could put pressure on demand for ENC's products. Would that go into the consideration of approving the second stage?

Yeah, UT is of course still welcome to participate for 20%. They as yet haven't made a decision. So we will be launching that strategic partnering and offtake process. We have 20 of the top global EV and battery makers and we have seen very, very strong interest with a number of them have already taken samples, conducted site visits. The process has formally kicked off. In regards to phase two, look, I think phase two, obviously subject to the market, subject to funding, I think it will be too subject to the demand that we see from this strategic partnering process. I think we may see more demand than we'll actually have available simply from EMC phase one. And then just in relation to the class one nickel that is coming out of China currently, Interestingly, a lot of the RKEF lines that have been producing nickel matte that's been going to China and refined into nickel sulfate are being switched back to the production of nickel pig iron. The reason for that is Qingshan is quite bullish on stainless in China, as well as they were the only profitable stainless producer last year in China. They made net profit of about... And so I think they see themselves significantly increasing their market share, which will require more nickel pig iron, which means that these lines switching back from nickel matte to nickel pig iron will reduce, hopefully, the overhang of class one nickel sulfate and nickel matte that currently exists in China. And look, at the end of the day, Plus one nickel from HPAL will always be cheaper than the nickel mat from RKFs and have a significantly lower carbon intensity. And so we're targeting North American, European, Japanese, Korean customers rather than basically everything ex-China for our E&C products.

Okay, and how does that, just a follow-on, how does that play into your decisions around transferring or turning the Angel lines into MAT on this also, maybe swapping back King JR?

That's something that we're actually, we're analysing at the moment and looking at our strategy for MAT or Nickel PI.

Okay, great. Thanks, Justin.

Thanks again.

Our next question comes from Mitch Ryan from Jefferies. Mitch, go ahead, please.

Morning, Justin and team. Thanks for taking my question. The first one is just back on sort of the stockpiles. Can you give any colour on current stockpile levels at IMIP and IWIP? And do you control your own stockpiles or are they a blended stockpile arrangement?

I can't give you specific numbers on the stockpile levels. We do, we have a blended, our stockpiles are a blended mix and we feed all of the ore from our Hangia mine directly into our own RKF operations and we then supplement that with additional ore as required. Our RKAB We are looking in the second half of this year to increase our quota up to 22 million tonnes per annum with a view getting to the point where all of our IMIP RKEF operations there would be self-sufficiency from our Hangia mine if required.

Thank you. Sorry, you called out that you were using some lower grade stockpiles. Is that ongoing and does that lower grade lead to a lower NPI grade or just a higher RKEF cost? How does that sort of express itself?

Yeah, so there has been a decline in all grades that have been going into the RKEF. That does translate into lower NPI grades. and as a result lower nickel tons that are produced at the back end. What we are seeing is that given the very depressed LME price, oil prices are actually quite low and coal prices have also decreased somewhat. So we have seen a reduction in power costs as well.

Okay, perfect. Thank you. changing tack a little bit to the buyback. Obviously, you announced that with your quarterly. I'm assuming that you were in blackout until the release of these results. With the release of these results, should we start to see potentially nickel industries in the market for its own shares?

There is just one condition that we have to fulfill before we can start that. And because UT is at 19.9%, we're in the process of just seeking further approval. And as soon as we have that, then yes, we will be in the market looking at it.

Sorry, I'd forgotten that condition. Do you have an expectation of when you expect that to be resolved or you're in the hands of the government at this point in time?

Yeah, yeah. In the hands of the government. But look, I don't foresee any issues. Look, hopefully it will happen sooner rather than later. Okay, thank you for taking my questions.

That's it for me. No worries. Thanks, mate.

Our next question comes from Adam Baker from Macquarie. Adam, please go ahead.

Good morning, Justin team. just maybe one on the balance sheet cash flows moving forward. Just on the, I did notice you did start to draw down on the PT bank facility before the end of the year. Just wondering the mechanisms moving forward this quarter. I know you've got the senior secured notes due in April. I guess when can we expect to see the remaining drawdown of the PT bank facility and how you're thinking about the repayment of the senior secured notes? Is that, likely to be drawdown of cash or drawdown of the remaining PC bank facility.

Thanks. Hi Adam, it's Chris Sheppard. Current expectation is that we will drawdown the remainder of that BNI facility this coming month. We've got a payment due to Shanghai Decent at the end of March and if you recall that BNI facility was earmarked for the ANC project funding. So I currently expect that we will draw down the remainder. So by the end of the quarter, we'll be sitting there with $400 million of the syndicated bank loan. In terms of the options that we've got available, yes, we've still got a $245 million maturity in April. We're currently analysing that, the management team and with our bankers and investors, and the options range from, as I mentioned before, at the one end, one bookend, we've got enough cash on the balance sheet that gives us a lot of flexibility over the next few months, to at the other end, there's obviously We could do bond refinancings, whether that be a new bond or a TAP. We interestingly, or not interestingly, but you've seen we've syndicated out that bank loan to on top of BNI, which I think has only further improved our access to capital, bank capital as well for this purpose. I can't give you any more colour than that. We are working through all our options, but I feel very comfortable with the balance sheet where it is in terms of the cash there that we will make the most opportune decision for the capital structure over the next month or two.

Thanks for that. And the reason for the term deposit, the $490 million term deposit, was that, you know, more, you know, to make the Indonesian lenders comfortable or... Is that something nickel industry side? Yeah, just wondering why you decided to go... Better interest rates, mate.

Just better interest rates. By putting a certain amount into the term deposits, that allows us just to access higher rates, which gives us, obviously, income.

Makes sense. And just one final one. DNA, you know, bit of a year-on-year uplift. What can we forecast moving forward? Are we expecting to sit around these levels?

Yeah, I think where we're at now looks probably like the right number. We've got all the assets now on the balance sheet. And obviously, as we've made very clear, we see no new deals coming on of any size. So I think the current levels are pretty appropriate.

Great. Thanks, Chris.

No problem. And just as a reminder, if you still would like to ask a question, press star 1 to enter the queue. And our next question comes from David Coates from Bell Potter Securities. David, please go ahead.

Thank you. Thanks, Justin, for the opportunity to ask a couple of questions. Well, first of all, the sale process for the ENC 20 cents, you talked about it earlier. I don't think you mentioned anything about timing. Are you able to give us any indication on the duration of that process?

Look, I think it will probably run its course for most of this year. We are just finalising with our bankers what the ideal timeframe should be. Given the diverse mix of groups across a number of different countries, we've identified some will move quickly, some not so quickly. And so that's just something that we're working through now in terms of what sort of a timeframe do we give to people. If I can just add to that, we've got obviously this 20% was all due out.

Sorry, I was just crossing over there for a second. Yeah, we both went quiet. Sorry, Justin, I thought you'd finished. Sorry, David, if I can just add to it. Our 55% is fixed. whether or not the process goes forward. We're committed to 55%. Any seal down will come from Shanghai Decent's 45% stake.

Yep, yep. Understood, understood. And, Justin, maybe a sort of a philosophical question, if you like, on the markets. But there's been some views expressed that, you know, similarly to, I guess, the bifurcation of class one and class two, nickel markets is a view that maybe we need to see bifurcation of sort of more ESG compliant in some people's view, nickel versus less ESG compliant or nickel. Do you see, what's your view on that? Do you have a, do you sort of see how that sort of may or doesn't play out?

We would absolutely welcome a green premium. Our ENCH power, we're targeting it to be the lowest carbon-intensive nickel units globally, and that's through a mix of solar, through our electric vehicle truck fleet, through the fact that more than 60% of our power is is generated from a sulfuric acid plant or from the heat generated from that sulfuric acid plant, our mine, as you've seen, which will supply the ore, is an ESG leader in Indonesia. We would absolutely welcome it, but will it come to fruition? I think not. We've been engaging with a number of EV and battery makers, and they're just interested in cost. That's purely all they're focused on. And we're seeing EV penetration rates stalling. And so these guys are under pressure to bring costs down. So not one of the ones that we've spoken to. They're comfortable with the ESG. credentials of Indonesia. I mean, you only have to look at the names that are invested already in country. You've got Ford, you've got BASF, you've got Hyundai, you've got LG, Volkswagen. So, you know, this, I think this concept of a green premium. Really, there actually isn't going to be any difference between nickel mined in Australia and nickel mined for HPALs in Indonesia. And so this whole concept of a green premium, I think it's not going to come to fruition. And as I said, importantly, it's the end customer who's the one that's saying they would be unwilling to pay it.

Nice one. Thanks very much, Justin. Appreciate that. Thanks, Ed.

Our next question comes from Tim Zell from Lazard Asset Management. Tim, you may proceed.

Hi, Justine. Hi, Chris. Can you hear me fine?

Yes. Cool.

I've got a couple of questions here. Firstly, I don't know if you guys can provide us any sort of guidance outlook for the margin per tonne for each of your archetypes for the next couple of quarters of the year. I mean, I'm assuming if they comprise their current levels.

Chris, did you want to talk to guidance?

Yeah, I just... You cut out probably for, I think, the last 10 seconds there, Tim, where you said assuming if the nickel price was the... Yeah, look, I think everyone's well aware of our position. We do not provide guidance. And it's difficult because we've got commodities on the revenue side and commodities on the cost side. So, no, I can't provide guidance, but all I would, highlight is what Justin, when he went through in the presentation, he showed the fall in the LME price, the average LME price on a quarter by quarter, and yet due to the volume of nickel units that we've been bringing up, the EBITDA, and still through the cycle, if we believe that the price is at a low level, the We're still making a record EBITDA per quarter. I can't give you any more than that, Tim.

Maybe I'll give another go. I mean, in terms of your input cost, obviously, you know, cold prices are coming off a bit. I mean, as you mentioned, the LME liquid price is coming off a bit. How much do you think has been reflected into your latest quarter costs or how much is yet to come, I guess, in this quarter? Yeah.

Again, that all goes down to our stockpiles, which unfortunately, I know you guys want colour on it, but we just don't provide stockpile information.

Okay, that's all. The second one is, I think, on the debt facility, can you talk about your bank covenant? I know it's probably got a lot of cash in there. Can you talk about bank covenants? on those different debt instruments and also is there any restrictions on dividends or buyback that are attached to any of that sort of instrument?

Yeah, sure. I won't disclose the actual covenants under the bank facilities. We've gone through that with KPMG and it's not required. They're very standard. Part of our audit work in the last week or two has been provided in fulsome covenants calculations for both our senior secured notes and also the BNI loan or the syndicated loan. Obviously, when BNI syndicates out a loan, all of the new banks coming in are testing the covenants and obviously getting very comfortable there. They wouldn't be doing so When we pay our dividends for the trustee on the senior secured bonds, senior unsecured bonds, we obviously send through calculations there as well around the dividend. And also when we execute on a, assuming we execute on the, sorry, assuming United Tractors gets its FIRV approval and then assuming we execute on the share buyback, which as Justin's explained is, We will obviously have calculations there under both the bank facility and the bond facilities.

Okay. If I can just make a last one. I think I heard that Justin mentioned about seeking approval for 20 million tons from the Hanjaya mine. Did I hear that?

That's correct. yeah that's correct what's the timeline and also i understand the haulage road obviously probably can't take the 422 million tons so what was the solution there so that that that expanded uh uh rkab quota um is is in uh development with the enc h pal project so the ens as part of the enc h pal project we will be building a 11 million ton dedicated limonite slurry pipeline. So that's predominantly what that OKAD will allow us to do.

Right. And roughly, what's the capex on the slurry line that you... Can I get a sense? Look, yeah.

We haven't disclosed that. It's not big. Yeah, it's not large. It's tens of millions. It's not a big... All right, great. Thanks, guys. Thanks, Ed.

And now we have a question from Kate McCutcheon from Citi. Kate, please go ahead. Hi, good morning, Justin and Chris. Just a quick one for you, Chris. In your reported revenue, just confirming... are there MH, that the MHP cells are in that number and that that's your share of HNC? Hello?

Sorry, Kate, I've been sitting on mute. I'm sorry. I've been talking to myself on mute. OK, no problem, Chris. You can talk again. Apologies for that. We... I just want to backtrack a little bit on H&C and give people a little bit of colour. Obviously, we're a 10% shareholder there only, and it's not... it's not usual to be considering yourself having significant influence in equity accounting. However, given our minority protections of our shareholders agreements, we have determined for the auditors that we will be equity accounting everything here. And hence, that's just a bit of colour for the analysts, or for yourself and others, why we're actually going down this path. Can I... I did cut out earlier, though. Can I get the other bit of the question?

I think that was my question, just confirming that those MHP sales went through the revenue line and that that was your share of the HNC revenue. Okay. And then moving forward, what part should we account for through your P&L?

Yeah, so look, there's two sides. There's two sides to HNC, and you'll see that in the notes, in Note 17. We've obviously got our share of HNC being our 10% numbers. And then we've also got, through our right, the entity which owns HNC, the 10% stake in HNC is SYN Creation and we own 100% of SYN Creation and SYN Creation has offtake rights to 10.3% of the product. So when you look at HNC, you kind of have to, if you're trying to get a look through about MHP margins and what MHP looks like, you need to look at those in totality. Where It becomes a little bit difficult, obviously, from the equity accounting side. HNC makes greater EBITDA. It makes EBITDA of larger than the numbers you'll see in the presentation and in the results. But we cannot account for that full 10% because we're equity accounting. We're actually having to take the profit and loss, which therefore includes all the financial expenses of HNC and includes depreciation, et cetera. So what I would caution is to try to add those two up and get a see-through on agency numbers. The further little bit of complication in all of this is it's four and a half months worth of operations. So you really don't have a full, you don't even have two quarters worth of numbers there to really get any sort of see-through analysis done.

Okay, good. I might follow up with you, Officer Chris.

Thank you. 100%. And we were speaking with KPMG. We knew the EMC, sorry, the HMC numbers would be of interest to the lives of yourself and other investors. So happy to.

Okay. Thank you. And there are no further questions at this time. So I will now hand the call back over to Mr. Werner for closing remarks.

Thank you, everyone, again, for your attendance. And looking forward to another strong 2024 as we transition the company into a major producer of Class 1 nickels. So thank you, everyone, again, for your time.