St Barbara Limited

Thank you for standing by and welcome to the St. Barbara briefing on FY20 Q4 June quarterly report. All participants are in a listen only mode. There will be a presentation 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 Mr. Craig Jensen. Please go ahead.

Thank you, Amanda, and good morning to everybody. And obviously, thank you very much for joining us this morning for St Barbara's 2020 Quarter Report Briefing. On the call with me this morning, I have Garth Campbell-Cohen as Chief Financial Officer, Rowan Cole, Company Secretary, Val Madsen, General Manager, Human Resources and HSEC, and David Cottrell, Manager, Investor Relations. At a higher level, I'll be going through the presentation pack and I'll open up for discussions at the end. but also discuss the quarter that we've had and the strong end of the financial year. And I'd have to say up front that the quarter that we've had has been very strong in many ways, and I'll go into detail behind that strong performance in the coming presentation. First and foremost, I'm very pleased with our safe performance, and in particular the COVID-19 management that we've endured during this quarter, no different than others in our industry and across the country and globally. However, the risks of COVID-19 remain and will maintain our discipline as we evolve our management plan accordingly. I will have a call out to Val Madsen and her team at this point in time and congratulate her and the team. All the operations led by our general manager of the organisation in particular to be able to manage through these challenging and difficult times for us. And as you'll see in the coming slides and the conversation we'll have, Not only is our safety performance certainly improved over this quarter and a very strong year, but we've been able to manage and navigate our way through the current COVID-19 issues that we have globally in the countries of where we operate. So moving on, operationally, it was an excellent quarter. For example, the Manti Gold had a record quarter. Guali produced 50,000 ounces for the first time in a year. And Simberi had the best quarter for the year. finishing up very strongly. The cash balance increased in the company by $85 million. The company is in a very healthy position with $405 million in cash. And as a result, we're planning to repay the $200 million we drew down back in March to bolster the balance sheet at the end of that time. In terms of where I'd like to go to slide four and discuss some of the those management plans and issues that we've had around COVID-19. As I've talked about previously, our absolute priority during this pandemic is the health and wellbeing of our people, partners, suppliers, and the communities of where we operate. Fortunately, we've had no COVID-19 positive cases in any of our sites. However, we are very conscious of the risks in maintaining our controls by adopting and evolving in the changing circumstances of the past and what we have in front of us going forward. In PNG, for example, we've seen flights resume and allowed us to rotate our expat management team. However, with cases on the rise in PNG, we are keeping a watchful eye on the situation. Our exploration program has recommenced under strict procedures and guidelines, given the remoteness of where we operate. We've also been conducting a number of mental health webinars for our employees, which we are offering on an ongoing basis and we will certainly continue to do that and monitor the health and wellbeing of our people and our partners and providing support in the communities of where we operate. Lastly, in this area, we've maintained a strong commitment to our communities with a number of COVID-19 related programs and donations during this quarter, supporting the areas and the people that live in the areas of where we work. With that now, I'd like to turn to slide five. And on slide five are the highlights of the quarter, which some have already mentioned. We've had our strongest production quarter for two years in light of guidance. The operations generated $126 million in operating cash flow. The cash position increased $85 million after growth capex of $11 million, income tax of payments of $6 million, and expiration of $5 million was spent. Over to slide six, and again, I'll just touch on our safety performance at a very high level, but safety is certainly going in the right direction, which I'm pleased about. However, there's still a lot of work to be done to achieve an injury-free workplace. Pleasingly, FY20, there was a 44% decrease in recordable injuries, and I'll take the moment to congratulate all of our employees, partners in all our operations and beyond for this achievement, and congratulations to them. Turning on to areas of focus for us and moving into slide seven. During the quarter, as I've mentioned in the past, we've had a review with external technical assistance that was undertaken of each of our operations. A range of productivity improvements and cost reduction opportunities have been identified and there are still more being identified as we speak. We're also looking at our operating model to enhance our technical expertise to see what we're going to set ourselves up for success and how we're going to set ourselves up for success in the future. At Atlantic Gold, we're progressing with various environmental impact statements for each of the developments, which I'll talk a bit more in detail in slides to come. The COVID restrictions are slowing some stakeholder engagement down, in particular community engagement. Work continues to be optimal in sequencing the Atlantic Gold projects and we'll still continue to work that in the short term. short period over the remaining part of this calendar year. At Gwalior, we're completing the final bench shaft as we speak. Currently, it's sitting at 93% complete at 480 metres, with a further 37 metres to go before that project is finally completed. It certainly has been a challenging program and project over a long period of time, and it will be good to get this one behind us so we can move on and optimise that operation. Once complete, we will seek to optimize development, maximize oil extraction and production, and ultimately reduce operating costs into the future for that operation. A dedicated project team has been established to drive business improvement opportunities already identified in the operational review that I mentioned just a moment ago. So Gwalior is becoming a very strong operation. Again, coming back out of the Gwalior extension project, and certainly we are getting ready to optimise that particular asset. At Sinberry, we're progressing the Sinberry Sulfide Project through the feasibility study. This involves future optimising work already completed in the past pre-fee study. I look forward to seeing the improvements in the study come to fruition at the end of this year. The consolidated June 4 quarter results on slide 8 shows the consolidated quarterly production and all its sustaining costs. This shows our best quarter since acquiring Atlantic Gold. And with that, I'd like to move into some of the operations in a little bit more detail. Moving on to slide nine and starting off with Atlantic Gold. So again, as I previously mentioned, Atlantic Gold had a record quarter. The team completed, in this quarter as well, the team has completed a realign of the ball mill. And the reason I highlight this as a significant factor is it's the first time the internal team Due to COVID restrictions and having people move around the country and within country to come and do our linings as contractors and relines as contractors, we've performed that task ourselves. I'm pleased to announce that the team not only completed better than budget, but certainly in a shorter time than allocated in our plans. Congratulations to the Atlantic team. As announced earlier this week, we are seeking to acquire 100% shares in MRRI. for $60 million. As you would know, MRRI hold 40% interest in the Tukoi mine and 25% interest in certain exploration tenements around the Tukoi operation. Post this transaction, St Barbara will own 100% of the Tukoi mine and 100% of the surrounding exploration tenements. Completion for this transaction is expected to be done and signed by early September. FY21 guidance for Atlantic productions between 100 and 115,000 ounces. All in sustaining costs between $9.55 and $1,100 per ounce. Sustaining capex ranges between $15 and $20 million, with growth capex about the same, which is $15 to $20 million. On the Atlantic growth projects, the COVID-19 restrictions certainly have slowed down in terms of stakeholder management, engagement, and particularly in the area of public consultations. I'm pleased to say that the federal agencies have now reopened and engagement with the First Nation groups has recommenced. And I myself have had many engagements with the federal and the state government over the last quarter. The Beaver Dam data collection is progressing well together with the feasibility studies on plant design and haul roads. I'm pleased with the progress on that particular project. and we expect to submit a revised environmental impact statement in the December quarter of this year. At 15 Mile Stream, currently we're revising the environmental impact statement with scientific studies, and the first national consultation on this project is progressing very well. We expect to submit a revised EIS in the current quarter. Cochrane Hill EIS is planned for later this coming year. On the proposal to designate the archipelago Lake Wilderness area would have engaged with the Nova Scotia government and the outcome has been delayed due to COVID-19 restrictions. We are in consultation and we have had meetings with the key stakeholders around Cochrane Hill and that's progressed very well at the same time. So moving on to Gwalior quarter four performance. Gwalior's quarterly result has been very solid to say the least. Production priority this quarter has absolutely showed the ability of what the Gwalior team can deliver in lifting production levels in that operation. Certainly looking forward to the extension projects being finished. On completion of the Gwalior extension project allows full optimisation of the mine. However, in support of continued sustainable operations in the meantime, FY21 development will remain under production and I'm sure we'll get some questions on that. FY21 guidance, production between 175,000 ounces and 190,000 ounces. All in sustaining cost guidance is 1435 to 1560 per ounce. Sustaining capex is 70 to 80 million Australian and growth capex at 30 to 32 million Australian. Sustaining capex includes a higher mine capital development to increase a number of mining fronts and that will be the focus of this next coming production year. Forward planning for FY22 and 23 indicates a production uplift to 190,000 to 200,000 ounces. I'm happy to take questions on this at some other stage. So moving on now to slide 11. The final raised bore has advanced during the quarter. However, we did prioritise all movement underground. We had significant issues with the raised bore with bad alterated ground and squeezing ground that caused a lot of delays. Thankfully that is now coming to an end with the last 37 metres currently underway. On to slide 12 in terms of St Berry. St Berry at a higher level had another improved quarter. Congratulations to the team there. Both Botlow and Sarawak Central Pit had higher grades than anticipated which certainly assisted in that production uptick. On the downside, mill performance was lower due to reduced availability, in particular the SAG mill and the road con. During this quarter, we replaced a 250-metre section of the road con with the remainder of the original belt of 1,200 metres to be replaced in this current financial year. As announced in May, the Board approved the Simberry Sulfide project to proceed to a feasibility study, and this has been well-progressed as we speak. We expect the feasibility study and environmental social impact assessment to be completed in December of this year. The final investment decision is being targeted for the March quarter 2021. FY21 guidance for St Berry is the production between 95 and 105,000 ounces. All in sustaining costs between $16.65 and $18.40 per ounce. sustaining capex between $12 to $15 million and growth capex between $4 to $5 million that is directly related to the feasibility study. If I may now, just turning to slide 13 and our balance sheet. Our balance sheet is shown clearly on slide 13. Cash increased by $85 million during the quarter to $405 million and this is after $11 million of growth $6 million in tax payments and $5 million in exploration expenditure in the quarter. The debt is $316 million, as I mentioned earlier, and we plan to repay the $200 million drawdown from the syndicated debt facility that we drew down earlier this year. So just quickly moving through the exploration update on slide 14. So again, during the quarter, exploration resumed. under strict new procedures in particular to COVID-19 management and due to us working in extremely remote areas. Activity was focused on the Leonora region and Moose River corridor. The surrounding Gwalior is of particular focus, the surrounding area in Gwalior is of particular focus and we've commenced drilling in the shallow portions of the Gwalior system during this quarter. Additionally, the broader Leonora region, we are testing targets located within a 30 kilometre trucking distance from the operation itself. Slide 15 shows a high level, some of the growth pipeline that we have in place. So we're focused on building the existing growth options as well as keeping an eye out for external growth opportunities. The future growth potential looks very exciting for us and I look forward to be able to talk positively about that in the future. In conclusion, on slide 16, we've had a very good quarter to the end of the year. It's our best production performance in two years. Our safety performance has improved and heading in the right direction, although we obviously still have some work to do to be injury-free. Cash at the end of the quarter has increased by $85 million, leaving the company a very strong cash position at $405 million. Debt is $316 million. and we intend to repay the $200 million at the end of the month, which we drew down in March to bolster the balance sheet in case of COVID operation, that COVID affected our operations in any way. The feasibility study on St. Barry's sulphide is continuing. The operational reviews, as I've mentioned before, that obviously helped us in a production journey in quarter four, Aqualia is underway and continuing underway, and now Atlantic, and then on to St. Barry, and that's progressing very well, I'm pleased to say. Lastly, we announced on Monday that we have reached an agreement to acquire MRRI and hold the remaining 40% of 2COI. I think in terms of the presentation pack, that's certainly a very quick overview and high-level update to everybody. And with that, I'd now like to throw open for any questions that people in the audience may have.

Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Alex Barkley from Morgan Stanley. Please go ahead.

Hi, Craig. A couple of questions from me. Firstly on guidance, specifically Gwalior, Previously, you had a preliminary guidance for FY21-22 sitting more at about 230,000 ounces. And now it looks like you're coming in a little bit lower in FY21 and 22. Is next year, is that likely about playing catch up with development tons? And then perhaps are you going through some lower mine grades over that period, you know, in light of some pretty good mine tonnages you've just had this quarter? I'm just interested in how that guidance figure seems to have moved a little bit lower from what was previously suggested.

Yeah, Alex, thanks for that. That's a really good question, particularly for people that are focusing on glow performance. Look, I'd have to say, you know, the operation, as I mentioned in the last quarter, has gone through almost three years of upgrades and project delivery and all sorts of different interruptions. And I have to suggest that our development rates, because of all that, has certainly impacted our production rates. Where that leads us is, I guess, coming out of the extension project, in particular when we finished the ventilation early to mid next month, it will give us the opportunity to really get in and optimise that business. What we did and how we managed through the core and particularly the uptick in production this time was test a lot of methodologies in our improvement program. As I've alluded to, we've had some technical people help us look at optimising Gwalior and other assets, but we're talking about Gwalior. And clearly, if we do get the productivity right, the mine sequencing right, the development right, without having to worry about vent shafts and taking that material to the surface, optimising our path plan, they are the sorts of numbers that we should settle on. We're certainly looking at the second part of Gwalior in terms of margins and margins going forward. And I think if we land at a production level, life of mine with the best margins it can produce is probably the better outcome, life of mine for the operation. It's certainly gone through peaks and troughs over the years and in recent time as well. My focus will be to level that out maximize our margins and certainly be more predictable during the life of mine. The last technical comment that I'll make is Gwalior's grade is dropping off. It is getting deeper. It's a changing mind from what we've had for many, many years. So the focus now is on management operating systems, productivity, and certainly cost out of our business for better margins.

Thanks. And just a question on Atlantic Gold. I appreciate studies are ongoing at this point, but I just wanted an idea of when you're thinking about extra processing capex for 15-mile stream and then Cochrane down the line. You know, you're thinking about how far that can be delayed and Pat would be seeing that FY22 because it doesn't look like it's coming next year.

Yeah, look, again, it certainly won't be next year. The mechanical and electrical and the civil engineering is going on as the project unfolds and as we work through the permitting process. But as mentioned before in the presentation deck in particular, we are looking at complete whole of business optimisation and in that, where do the Atlantic Ripper projects sit? What is the right timing? What is the correct sequence? And that will then certainly give us a better window of understanding the capital. In the short term, for the next 18 months, it won't be a burden on the organisation, no.

Okay, thanks.

Your next question comes from Reg Spencer from Canaccord Genuity. Please go ahead.

Thanks. Good morning, Craig. Good morning, team. I was wondering if you could just give us a bit more of a breakdown of the growth topics across Gwalior and Sambiri next year, given that the vent upgrade is approaching completion at Gwalior. Can you give us an indication of what falls into that growth gap? CapEx at Gwalior and likewise from Beery. Can we look at the growth CapEx there as being a little bit of a head start on the sulphides potentially? Just trying to, hopefully you can flesh that out for me, please.

Yeah, Reg, I certainly can. Look, I think the capital, we will finish off the vent shaft in the next few weeks at Gwalior. I'm very confident of finally getting that out of the way. The next round of major capital guile will be the second stage of cooling and ventilation, which is a small percentage of what was spent in the last three years. But there is a little bit of capex on that itself. So that's quite simple, really, and not a lot of money. I think the... St Berry is even easier to describe. The $3 million to $4 million that we'll be spending in growth capex in particular is almost... focusing on the study. I'm very excited about that project and trying to fast track as best we can given the opportunity for investment and payback. It's certainly over 110,000 ounce sort of project for quite a number of years at a modest investment. So I don't think at this point in time we have a growth project internally that could surpass that investment. So I'm fast tracking that. There is a small amount of capital at similar sorts of amounts at Sinbury that is also setting us up for a longer life of mine in the next two years. So the investment capital that goes into there now will be sustaining. It's got a longer window than two to three years life of mine. It's now out beyond 10. So any investment we do, we certainly put a lens over life of mine of greater than two years.

That's great. Nice little segue into Sambiri sulfides. Clearly, you're looking to complete studies by the end of this year, FID, the start of next year. I know you guys don't like to dwell on it too much, but there has been, from what I can see, some legislative changes to the PNG Mining Act. We understand that that's really focusing around what's happening in Porgera. But how might those potential changes affect the way you think about the development plans of the sulphides if you proceed with that project?

Yeah, Reg, obviously the changes to the Mining Act are sitting with the PNG government and not progressing at all for a lot of reasons. And one is the whole parliamentary issues in PNG are problematic, particularly with COVID and other things. So that's still sitting there and going nowhere. Like, as I mentioned in the last quarter, there is a lot of communication within the Chamber of Mines and industry within PNG, keeping a very close eye on what's happening because it will impact the entire investment community and extraction industry in PNG, and not favourably. What I'm confident about is our mining licence to our ML industry is something like about eight years away before we need to worry about going through relicensing what we already have, which is a bit of a different argument and different position than Porger, for example. The other thing for me is in terms of now we know that the project, Los Alfibes, has certainly got huge benefits. not only just extension of life of mine, but certainly a lot of ounces at low cost. But going through the next phases will be the return on investment with the engineering that we do. So what I'm saying is we are looking at ways of bringing the life of mine, for example, even shorter than where we're saying 13 years to get our return on investment sooner than later. So if there are any changes to the mining act, then we're somewhat protected by our licence to operate. The current Prime Minister has certainly come out in the public and stated that current MLs will be grandfathered regardless of any mining act changes. So, you know, all that's a political arena that we're keeping a close eye on.

Craig, based on your comments around the potential optimising of a mine plan and maybe shortening that payback period, can we speculate in thinking that might have something to do with how you approach grade? Is there the opportunity to grade stream and perhaps chase higher grades earlier on in the mine plan to deliver that shorter payback?

It would be nice to be able to have those levers. I would suggest that that's certainly a work in progress and we need to understand a lot more about the oil body knowledge before we'd even look at what the mine plan could or couldn't deliver. One of the pleasing things I have to say is our grade control in particular is certainly picking up some more opportunity for the oxide program to extend the current life of mine there, which will help us in a lot of ways. So I think the transition from one... or type to another is very easy, very smooth. I've got a lot of work to do in this feasibility study to understand what the mine plan, what the mine can actually deliver at maximum rates, given the equipment and the area that we work, versus what the plant will have to, I guess, accept. So we're looking at all aspects of optimising that project. Great. That's fantastic. Thanks, Craig. I'll pass it on.

Thanks, Ruth.

Your next question comes from David Ratcliffe from Global Mining Research. Please go ahead.

Hi, good morning, Craig and team. So I just wanted to follow up on Gwalior. And if I can push a little bit more on the grade and tonnage kind of profile over that guidance period of 21 to 23. And really... Because I guess if you look at the numbers, it looks like what it's implying is that targeted run rate of 1.1 million tonnes per annum could fall outside of that period. Is that the right way to think of it? And then, you know, given your comments on optimisation, does that kind of rate still make sense going forward if you are going to be focusing more on the margins of the operation?

Yeah. David, I think if you just wind the clock back into the quarter, I think you can see clearly what the operation can produce if it's debottled to a point where the extension projects are finished and we can optimise. And I think with the internal business plans that we are currently reviewing in terms of how we run Guali, how we optimise, how we certainly benchmark ourselves against our peers, and a whole range of operating performance. That was a test run in the last quarter to get the best result we could. And of course, it came out quite well. So that's given us the confidence that when we develop, when we optimise, when we get the plan right, we will certainly be able to be more productive than what's in our FY21 budget and guidance plan. in future years, but we have to do the development, we have to do the optimisation and we have to get our projects right. At the same time, our internal review has seen quite a few optimistic areas to take costs out of our business as well that we will pursue. So at the end of a period, and pick a number, we will certainly look to have very, very strong margins for a longer period of time and a stable operation instead of up and down and, for a poor choice of words, a boom and bust. So, yeah, optimising the mine. I think we will develop very and focus heavily on development, keeping in mind we're still producing more ounces than we did this year into next year. we will optimise for the years to come and certainly set the mine up for success in the third year. I don't have enough information to give you any more guidance on year two than what we've guided on today.

Okay, thanks. And then just in terms of path, I also want to get a bit of an update there of how that's performing and are you reaching targeted levels of waste that you're managing to keep hunting down? Because I think there was a comment before that, yeah, that also would be optimised.

Yeah, correct. And we've just finished the first program of that optimization, which was a reliability review. Typical of major assets like that during commissioning phase, particularly that you've never operated before. And that's certainly a unique design. And during the quarter, I was lucky enough to be allowed into Western Australia and spend almost a week and a half, nearly two weeks at the operation. Saw that asset myself. The team have certainly been struggling to commission and have it reliable, but there's been a significant amount of work done during this quarter and before this quarter started. Typical of timing, we have had consultants there working on the reliability program and certainly any engineering changes we may or may not need to stabilize that plant and make it a reliable piece of equipment that we know it will be. In the white space between me leaving a month ago and now the team on site have been able to get it running and certainly commissioning it as we go and the production rates in the last two weeks during the review have been higher than they ever have been in commissioning is going very well and reliability seems to have picked up a lot. So I think we will certainly get the design criteria and design rates out of that piece of equipment in the very near future. But there is a bit of work to do with some minor design changes, but it certainly over the next 12 months will play a critical part in what the future will be. Okay, thank you.

Your next question comes from Nick Herbert from Credit Suisse. Please go ahead.

Oh, thank you. Good morning, Craig. Thanks for all the details so far. I might just continue with a couple of others actually on Gwalior, if that's okay. Do you mind just drilling down into the FY21 guidance a bit more in terms of what those assumptions are on throughput and grade, sort of phasing this sort of first half versus second half? And then, you know, completely understand you still have to do your optimisation work. But if we just look at that FY21 guidance for your sustaining capex and your development rates, you know, ahead of that optimisation, you do have to play a bit of development catch-up and want to increase that mining rate. Is that a, I guess at this point, a fair rate that we could assume that continues over the next couple of years until we get, you know, greater detail there?

Look, in terms of guidance, Nick, I'd say, yeah, but with a caveat, you know, and you'll see it in the first two quarters of FY21 in terms of production, how it would be below expectations of a lot of people. And the reason for that is strategic. And as you'll see, the total quantum of guidance is more than what it is this year in terms of ounces produced. So that means... We're having a slow first half year. That is deliberate. It's in a mine plan specifically to be able to deliver optimisation in the second half and the years coming after that. So, you know, at some stage, because of the extension project being finished, at some stage we'll optimise to where it should be. And I keep using that word, but I think the strategy... Given that we've got to make sure that the mine design is right, the mine-induced seismicity is controlled, we understand the geotech issues that accelerated rates will deliver, ground control is safe. So the business interruption, and we can run the operation safely at higher rates, has certainly been managed well, and it has been, and it is. Post the, I guess, the... ventilation work that we will do over the next six or so months in particular, waiting for the ground to break through from the VR6B to be completed, we will optimize ventilation. So the second half of the year, we'll set ourselves up very, very well. The advanced, and you can see that in some of our capex spend, the advanced development over the first six months over ore has certainly slowed the first six months production down. The second half would be indicative, I would imagine, of the next year, and then any optimisation of future opportunities will be guided on in appropriate time. But I'm really excited about the future of Galagalia, even though it's getting deeper. The grade is certainly not... We're not seeing and won't see the grade of yesteryear, but it will be achieving its best margins for a long time in the coming years and certainly stable.

That's really helpful. Thank you. And just to go back on the sustaining capex this year, not after guidance, but just with what you've talked to in terms of the expectation for development rates, is it a fair assumption for us to go with that for now, subject to what comes out of that optimisation study?

Look, I would. And that's the reason we've put it out there as a real number until we go through the optimisations. But it's like all, I guess, reviews that you do. You benchmark yourself against best in class and we're all operations similar to us and we've got some work to do. The issue with those rates, and not because we're not capable, we showed that we were in the last quarter, What the issue will be is getting the sequencing absolutely spot on to make sure that our short-term interval control and other MOS opportunities that we roll into that mine increase the productivity safely.

Right. Thanks, Craig.

Your next question comes from... Matthew Freidman from Goldman and Sachs.

Please go ahead. Sure. Thanks very much. Morning, Craig and team. A couple of questions from me. Firstly, I guess just following on there from Mick's question on the mine development capex. You've made it quite clear what the goal is for FY21 in terms of really focusing on development. But looking further ahead and obviously pending... the optimisation work you're doing, but do you think that that rate of sustaining capex of around $70 to $80 million, is that the number that's required to achieve the productivity you're hoping to achieve going forward out of FY22 and beyond?

Look, I'd be way too early to guide other than, you know, if we're spending and focusing a lot of effort and a lot of that capex on development to get in front of the mine plants, And really what we're achieving there is opening up more headings and slopes that we can go to if we run into issues. One, we're not bottlenecking ourselves. Some of that cost will disappear at the end of this program. But other opportunities will come out of the optimisation, I'm sure.

Yeah, sure. No, that's a pretty clear answer. I guess what you're getting at is that you view it as a bit of a catch-up or a bit of an overspend in FY21 versus what's required on a sustaining basis. Yeah, correct, Matthew. Yeah, thanks. Secondly, expanding on Reg's question on the growth capex there, that's really adding additional cooling and ventilation capacity. If I look back to some prior guidance, which may be a bit dated now, I think it pointed to additional cooling and ventilation capacity of around $70 million over the life of the mine. So is the $30 million that you're spending in FY21 give or take what's required to finish the vent raise? Can we assume that that will come off that $70 million requirement over the life of the mine?

The cooling in particular is going to be life of mine issues and so will ventilation. I mean, we certainly have the infrastructure at the surface now and other infrastructure underground, but as we go deeper, we're going to need more. This is certainly the stage two of the major, I guess, component. And, you know, the ventilation work in itself is still undetermined and not defined, but I think what you'll see would be a little bit higher. We are... preparing ourselves for maximum production and development over the coming periods of time. We are advanced purchasing some equipment this year that they're going to help us to do that just in time. And some of the long lead items that we'll need two years out from now. So it's all about bringing the balance of capital flow in line with production and productivity. And that's where we've landed at this point, yeah. Sure, thanks Craig.

Then I guess secondly, moving on to Atlantic, and thank you very much for the update there on your various submissions. Maybe just focusing in on Beaver Dam. Can you remind us what you're expecting in terms of the decline or the depreciation at Tukoi? And I guess from that point for Beaver Dam, when would you need to start production from Beaver Dam? And therefore, when would you hope to get approvals in order to achieve that? and whether you can give an indication on how that might compare to the timeline that you're expecting once you've submitted the revised EIS later this year. So I guess to just think backwards from when Tukoi starts to deplete and what that means for when you need Beaver Dam up and running.

Yeah, look, Matthew, I think Beaver Dam is certainly... Let me talk about Tukoi first. I think we've certainly got some opportunity to extend the life of mine and turquoise, and we're looking for that at the moment. We're certainly drilling and shoring up, I guess, a grey control in particular, but also drilling out more of a turquoise. I think Beaver Dam itself is obviously, as I said, will submit a revised EIS in the December quarter this year. We're certainly engaged with the regional and federal government in terms of permitting, permitting timelines. We really would like to see that permitted sooner than later so we can get on with development. I think about two years from now is when we would like to have Beaver Dam online, but we're still doing some development work in Tukoi to extend the life of mine there as well.

Yeah, sure. Maybe to think of it in a slightly different way, the previous plan kind of had this overlap between Tukoi and Beaver Dam in terms of feeding the Tukoi mill. Is it possible that we'll see a scenario where there is no overlap or there is a minimal overlap? Or in other words, that Beaver Dam is ramped up at the tail end of Tukoi? Or is that just conceptually not likely to happen?

Well, I'd have to say that I'm certainly looking for the longest overlap or the biggest overlap that I can get so I can maximise the facility at Tukoi first and foremost. Worst case scenario is that we go to low grade and we're waiting for whatever the wait reason would be, whether it's permitting. Now, having said that, the local government in particular and the First Nations are very engaging, they're supporting what we're doing. And I certainly hope to have the permitting approvals sooner than later. So the overlap is longer, not shorter. The exact targets on those, I wouldn't like to commit to in these sorts of conversations, but we certainly have an internal target to optimise and get going in that facility as soon as we can.

No, that's helpful in terms of your thinking. Thanks very much, Craig.

Your next question comes from Levi Spry from JP and Morgan. Please go ahead.

Yeah, okay, Craig. Thanks. Yeah, a couple of easy ones. So just continuing that on. So there's $60 million for Turquoise. Just to remind me, any CPs or outstanding approvals? So when does the cash go out the door?

I'll revert to Garth exactly the cash flow, but we hope to have signatures on paper and finalised early next month.

Yes, so Levi, the cash flows should be end of August. We are subject to the shareholder meeting and also court approval, but that's what we're targeting end of August.

Okay, thanks. And just continuing Matt's questions there. So, I mean, we're all still working to 43-101, which was like a long time ago. So just to put it out there, when do you update the... Yeah, it's a life and mind plan for the whole asset.

From the entire asset, I think it would be before the end of calendar year. I think there's a lot of work to do to understand, A, the ore body, and B, keeping in mind we've got some very exciting ground that we're doing exploration in, and not only near Tukoi, but in that Moose River corridor, that could change a whole range of things. But as we know it now, I'd certainly like to be able to talk about the life of province as we know it now later this year. Okay, great.

Thank you. And then just back to Gwalior, it feels like you got off there a little bit easy with the 22-23 guidance. So 190 to 200,000 ounces, fairly tight range. So what tonnage and grade is that based on? Is it based on 1.1 million tonnes at six grams?

It's based on the six, six and a half grams, Levi, yeah, and the tonnage is about a million, but we'll be happy to get there first.

Yeah, okay. So what's the delta between the 230 that was out there previously? Is it great or is it throughput?

No, it's certainly throughput, and that's driven by the development work, as I've been talking about, but also... the productivity and the reliability of the path plant. So if we can join all those things together and optimise, we'll certainly break through that million tonne mark and beyond. But it's way too early to give you a number on that. Okay, thanks.

And so I'm just trying to work out what's in and what's out of it. So this optimisation process that's ongoing, can you give us some timing around that?

Yeah, I think the optimisation itself is, I guess, mainly focusing on management operating systems, productivity, things like automation, We don't talk about automation, big data, and how we use that information very well at Suburba, and we've certainly got some opportunities at Gwalior on that. And it's just de-bottlenecking that operation. And the mining team there in particular for three years have taken every component for the PAF plant and materials down one decline, including some of the waste material not only from development but from the vent shafts and there's been three major levels of work around those vent shafts have all had to come to the surface pretty much. That all has to disappear and is disappearing for us to be able to get in a mine like we did in quarter four. The enablers for that will be good systems, processes, good optimisation, short-term control and certainly management operating systems and that's where we will head for productivity. What I'm also trying to paint the picture here is longer term, the margins at Gwalior will be very strong and very stable. Our costs are too high. We certainly understand that. And we've got some opportunity identified through the review to have a look at some of those costs. And when it comes together, the productivity will be in the order of what we're guiding on and but the cost and the margins will cost out and the margins will be much better okay thanks thanks Greg thank you that does conclude our conference for today thank you for participating you may now