Sandfire Resources Limited

Thank you for standing by and welcome to the Sandfire Resources September 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 1 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 September quarterly call which we hope is a slightly quieter day for a number of you. Our executive team is here with me today as usual for the Q&A which we'll get to very shortly but before we start I'd just like to acknowledge the traditional custodians of the lands 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. We pay our respects to their elders and leaders past, present and emerging. As we always do, let's start with safety. We finished the period with a group TRIF of 1.4 and no recordable injuries across the group. Obviously a very welcome result. The safety of our people is paramount and as our asset president at MATSA, Rob Scargill, likes to put it, it's all about achieving and sustaining safe production. and that's why we're working hard to raise awareness of the need to report and learn from high potential incidents and further strengthen our control environment. Out of four-year results in August, we noted copper equivalent production for FY26 would be weighted towards the second half with a circa 4852 skew anticipated. We also noted that copper equivalent production skew in the first half would be even more acute at a 4555 split across the September and December quarters. Pleasingly, copper equivalent production for the group is tracking almost 5% ahead of that plan at 35,500 tonnes and remains on track to achieve the midpoint of annual guidance of 157,000 tonnes. At MATSA, we delivered copper equivalent production of 21,800 tonnes, which represents 23% of FY26 guidance of 96,000 tonnes. as our mine plan navigated grade variability, which is, I might add, typical of polymetallic ore bodies such as MATSA. As in the past, recoveries were also impacted as our polylines processed a high proportion of ore with elevated pyrite from the Castellahitas zone within Aguas Tanitas. As importantly, we've maintained discipline with MATSA's underlying operating unit cost of $85 per tonne coming in marginally lower than full year guidance. Mateo has also continued to run to plan, achieving 13.6,000 tonnes of copper equivalent production for 22% of annual guidance, noting FY26 production for Mateo will also be weighted towards the second half of the year, as we said in August. And pleasingly, we're set up well as our team has made strong progress dewatering the A4 such that mining recommenced in Stage 1 in recent days and we're already mining low-grade ore in Stage 2. This is what underpins the planned surge in high-grade material from A4 in the second half and the building production profile across the year. Despite softer metal production in the quarter, we had five shipments depart the port of Woolworths Bay in Namibia, which certainly bolstered operating cash flow, something Megan can talk to in the Q&A. From a broader perspective, Mateo's underlying operating costs came in 4% below full-year guidance at $42 per tonne, but please don't get too excited. This is precisely what we anticipated, as costs will rise across the year, consistent with full-year guidance as we extract more oil from A4 and incur additional haulage and handling costs, as this high-grade pit is, as you'd recall, around 8km from the processing plant, which sits adjacent to T3. From a strategic perspective, in Q1 FY26, we invested $7 million in regional and $6 million in near-mine and extension exploration programs in the Iberian Pyrite and Kalahari Copper Belts. And our investment in regional exploration in the Mateo Hub will accelerate with the imminent recommencement of drilling activity. As you would expect, we took advantage of the recent pause in activity in Botswana to increase the coverage of our induced polarisation dataset in the Matea hub and have further enhanced our targeting approach such that we have detailed plans for 20 kilometres of target drilling which will be undertaken across the next 9 to 12 months. And while we're back at A1 testing down dip of known mineralisation, we're still on track to release a maiden reserve in Q4 of this financial year. Turning back to MATSA, we were extremely pleased to receive the final regulatory approval for the new tailings storage facility and the teams already commenced early works, such as land clearance and fencing to secure the site. Separately, we expect our closure plan for the existing TSF to be approved shortly, which will allow the team to complete the final incremental raise to establish a sustainable landform. The support we receive from government in both Spain and Botswana is not taken for granted. It is greatly appreciated. And lastly, to Black Butte, We still expect an updated resource and reserve statement and new pre-feasibility study to be released by Samphire America in Q2 FY26, paving the way for the group to determine its longer-term strategic fit in the portfolio. So bringing this all together, our team's unrelenting focus on the basics continues to feed into our balance sheet, where net debt declined by a further $61 million to finish the period at $62 million for a cumulative $283 million reduction in net debt across the past 12 months. The combination of our modern mining complexes, preferred commodity exposure, talented people, the consistent and predictable performance they deliver and of course our increasingly strong balance sheet ensures we are strategically well positioned for the future. So with that, let's go to questions. Thank you.

Thank you. If you wish to ask a question, please press star 1 on your telephone and leave 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 Khan Peker from RBC. Please go ahead.