Sandfire Resources Limited

Thank you for standing by and welcome to the Sandfire Resources FY26 Financial Results Conference call. All participants are in a listen-only mode. If you wish to ask a question, you'll 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.

Thank you and hi everyone. Welcome to our results call for the 2026 financial year. Our executive team is here with me today for the Q&A which we'll get to after Megan has taken you through our financial results and Jason has provided an update on our exploration program that spans Spain, Portugal, Botswana and South Australia now that we're on the ground in the Kunamona. doing the work needed to confirm the value proposition for our exciting copper-gold project, Calcaroo. I should also note that our President of Exploration, Scott Thomas, joins us for the Q&A and he's looking forward to discussing the growing success of our infill, extension and regional drilling program and the mineralised systems we've intercepted at Natsa and Mateo that are highly encouraging. But 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 we conduct our business, with how I respect their elders and leaders past, present and emerging. As always, we'll start with safety. As I mentioned in our call in July, our thrift declined incrementally to 1.6 at 30 June, a level that compares very favourably with global benchmarks. Yet despite this, it was also our most difficult year, as we reported our first-ever fatality when our 34-year-old colleague Ivan Manuel Vazquez-Barrido from Constructionist Mary was fatally injured at our Magdalena mine on 25 February. We must continue to believe it's possible to have a workplace that is injury-free, where systems, processes and culture come together to ensure even the lowest probability, high consequence risks are understood, identified, controlled every hour of every day, 365 days a year. And it goes without saying that belief will never be enough. We have to do the work, which in our case is covered by three very distinct and interconnected workstreams. The continued refinement and embedment of our systems and processes, further strengthening our critical controls via our Principal Hazards Program of Work. The infield training we're undertaking, which we refer to as our Don't Walk Past Program of Work, that's designed to reinforce behavioural expectations for all employees and contractors, which in turn connects with the psychological safety training we have underway that defines the shared accountability we all have to create a working environment where everyone feels safe to speak up and intervene whenever something just doesn't look or feel right irrespective of a team member's seniority or title. That's because nothing will ever be more important than the health and wellbeing of our people. With that, I'll hand over to Megan to walk you through our record financial results, increasingly strong balance sheet and the confidence we have in our business, which collectively underpinned our board's decision to declare our first dividend in more than four years. Megan, over to you.

Thank you, Brendan, and good morning to everyone on the call. I'm pleased to present our financial results for FY26. As Brendan touched on, we have delivered record operating and financial results for the year. underpinned by robust operating performance across the business and buoyant commodity markets. We have delivered record sales revenue of $1.7 billion and underlying EBITDA of $867 million for a more than three-fold increase in underlying profit to $350 million and a statutory profit of $354 million. Digging deeper, at Mateo, Underlying operations EBITDA increased by 45% to $461 million at a 62% margin as the operation capitalised on strong commodity markets and low TCR fees. The operation achieved record mill throughput of 6.1 million tonnes for record copper equivalent production of 59.7 thousand tonnes in financial year 26. This has allowed the operation to continue realising economies of scale benefits, albeit also experiencing a 16% increase in underlying operating unit costs to $46 per tonne, or within 5% of annual guidance, or $44 per tonne. Primarily driven by the transition of the higher cost A4 mine from development into production, a significant increase in price-linked royalties and higher power and fuel prices. Notwithstanding these pressures, Mateo remained highly cost competitive, achieving an implied C1 unit cost of $1 a pound across FY26. At Master, underlying operations EBITDA increased by 71% to $499 million at a 55% margin, primarily driven by higher commodity prices and lower TCR fees, which more than offset a modest increase in underlying operating costs. primarily associated with the strengthening of the Euro when measured against the US dollar, for an underlying operating unit cost of $89 per tonne, also within 5% of annual guidance. Despite these pressures, our valuable by-products of silver, zinc and lead ensure that MATSA remains highly cost competitive, achieving an implied C1 unit cost of $0.88 per pound of copper across financial year 26. Below the line, our DNA expense of $318 million was broadly consistent with last year. Our underlying net finance expense of $19.6 million decreased from $44 million in financial year 25, reflecting the full repayment of debt during the year and transition to a net cash balance of $353 million at 30 June 2026. Our underlying income tax expense increased to $178.9 million, reflecting the significant improvement in the group's profitability for an underlying effective tax rate of 34%. The group's underlying effective tax rate continues to be impacted by the limited ability to recognise benefits associated with tax losses in Australia and the USA. It should also be noted that the Government of Botswana enacted new tax legislation effective from 1 July 2026. which includes a 2.5% increase in the minimum tax rate that can be applied and removes the upfront capital deduction for capital investment whereby mine development expenditure will now be deductible at an annual rate equal to the greater of 100% of capital investment divided by the expected number of years of activity to which the expenditure relates or 10% per annum. Importantly, the increase in the minimum tax rate is not expected to have a significant impact on Mateo, given the profitability of the asset, whilst the removal of the upfront deduction for capital investment will not have a material impact over the life of mine, following the completion of the capital intensity phase and utilisation of all associated capital losses. Total expenditure across the group increased by 11% to $230.6 million as we commenced construction of our new tailing storage facility and procured mining equipment at MAPSA. which was offset by a decrease at Mateo as we completed the A1 pre-feasibility study, the ramp-up of the A4 open pit mine, the Stage 3 lift of our tailings storage facility and our plant de-bottlenecking project. We also invested $5.2 million at Kalkaroo, primarily directed toward the establishment of site infrastructure and commencement of the planned 130km infill and extension drilling program. Our business and balance sheet has been fundamentally transformed across the last two years. We added a significant $750 million to our balance sheet over the past two years, finishing the year with a net cash balance of $353 million, demonstrating the cash-generating capabilities of our quality operations for our shareholders. Our positive operational and financial outcomes have enabled our board to declare success a fully-cracked final dividend of 35 Australian cents per share in respect of financial year 26. This decision has been made in accordance with our unchanged capital management framework, which considers the cash-generating capability of our assets, our expected payments in the September quarter, and the maintenance of a cash buffer, which will allow the group to navigate geopolitical uncertainty while preserving capacity to invest in the business and pursue value-accretive growth opportunities, all with confidence. With that, I'll hand over to Jason to give a summary of the updated mineral resource and ore reserve estimates and the exploration results we released to the market this morning.