Sandfire Resources Limited

Thank you for standing by and welcome to the Sandfire Resources June 2025 quarterly report. All participants are in a listen only mode. 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 Brendan Harris, Chief Executive Officer and Managing Director. Please go ahead.

Good morning everyone and welcome to our June quarterly call where we provide a preliminary summary of performance for FY25 in advance of our full year results on 28 August. Our executive team is here with me today for the Q&A, which we'll get to in good time, recognising we have another call in a few weeks. Before we start, I'd like to acknowledge the traditional custodians of the land on which we stand, the Whadjuk people of the Noongar Nation, as well as the First Nations peoples of the lands on which SAMFIRE conducts its business. our respects to their Elders and Leaders past, present and emerging. And can I say, it was good to visit Mita Thera again last week to meet with the Yaganianaya. The importance of these meetings should not be underestimated as authenticity and consistency is important as we strive to rebuild our relationship and deliver on the commitments we have made to them. For safety, our group Triff was 1.7 at the end of the June quarter, a modest but disappointing increase from last year. While our injury frequency remains well below industry benchmarks, we must believe it's possible to have a workplace that is injury free. And that's why we're working hard to raise awareness of the need to report and learn from high potential incidents, which is very much aligned with our efforts to create an inclusive culture that values diversity where everyone feels safe to speak up and empowered to stop work when something doesn't look or feel right. The safety of our people must always come before production. So stepping back and reflecting on the year more broadly, I am particularly proud of our team for the way they've navigated a number of significant challenges beyond their control, including record rainfall and a major power outage in Spain and a generational rain event in Botswana to still deliver 152.4 thousand tonnes of copper equivalent production which ended the year only 1% below full year guidance. That, I remind you, was established in June of last year, June and July. What a truly fantastic result, all things considered. At MATSA, copper equivalent production of 25.1 thousand tonnes signified the strongest quarter for the year, bringing total copper equivalent production to 94.1 thousand tonnes across FY25. What's more, we anticipate another robust year at MATSA in FY26 and expect to achieve copper equivalent production of approximately 96,000 tonnes for a 2% increase year-on-year. Mateo continues to let its results do the talking, achieving record quarterly copper equivalent production of 16.4,000 tonnes in Q4, for total copper equivalent production of 58.3,000 tonnes across FY25, and year-on-year growth of 29%. This in turn underpinned a 30% increase in sales in 2004 as five cargoes departed Walworth Bay during the period. Having just visited the operation and reviewed our flood recovery program, I can again confirm that we're well-placed to deliver a circa 3% growth rate in copper equipment production at Mateo in FY26. And before I move on, I should note that we are moving with the times and have provided production guidance ranges for FY26, having listened to external feedback and assessed evolving industry practice. But please don't worry. We'll continue to provide single point estimates for our broader operating parameters at the back of our quarterly report as a guideline to help you build your own projections from first principles. As you'd expect, we continue to focus on the things we can control and have enjoyed low rates of inflation over the last two years when compared with much of the industry. Consider our preliminary estimates for unit costs at Matza and Matea of $78 per tonne and $40 per tonne respectively across FY25 still compare well with guidance we provided as far back as August 2023 of $78 and $41 per tonne. As forewarned, however, strength in the Euro to US dollar exchange rate has started to bite at MATSA. And while unit costs, and this is important, are expected to remain well controlled in local currency terms in FY26, sustained strength in the exchange rate would create further upward pressure, recognising around 90% of MATSA's costs are Euro denominated. Similarly, at Mateo, our flood recovery program included an increase in low-grade material feed in Q4 and a release of working capital, which contributed to a $1 per tonne increase in unit costs across the year relative to revised guidance. Our preliminary analysis indicates that unit costs are likely to increase by a further 10% at Mateo in FY26, as the A4 open pit achieves commercial production and a high proportion of total material movement is expensed Importantly, with limited cash impact and an increasing contribution of A4 material carries additional haulage and handling costs. As a reminder, we will provide our full suite of guidance metrics when we report our full year results. Turning to Black Butte, you will have seen that Sandfire America recently completed its 2024-25 exploration program. where 27.8 kilometres of diamond drilling was undertaken across 76 holes. The successful program has confirmed the extension of high-grade mineralisation in the Johnny Lee Lower Copper Zone, which is, after all, the juice that drives the project's economics. Sandfire America is expected to complete a new pre-feasibility study for the Black Butte project, including a revised mineral resource and oil reserve estimate in the December quarter which will position us to more clearly define the optimal pathway to realised value from the project. Before closing, I should also note that we have transferred accountability for all near mine and regional exploration adjacent, so we can better leverage our strategically valuable operating presence in both the Iberian Pyrite and Kalahari Copper belts, as we seek to bring greater urgency and build momentum in this critically important area. With this change in accountability, Richard Himes has departed the organisation and we want to thank him for establishing the foundations of our exploration program. So bringing this all together, I hope it's clear to see that we remain focused on the basics and continue to do what we say while building resilience in our operations and generating plenty of cash. Our strong finish to the year and strong market fundamentals delivered Unaudited group sales revenue of $1.2 billion in FY25, underlying EBITDA of $528 million and a stunning $273 million reduction in net debt across the year, including $120 million in Q4 alone. Well, we've faced some real challenges. This year, our talented team, high quality operations, preferred commodity exposure and increasingly strong balance sheet leave us well placed to deliver our simple, effective and proven strategy. With that, let's go 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 comes from Mitch Ryan from Jefferies.