Whitehaven Coal Limited

Thank you, Operator, and good morning, everybody. Thanks, everyone, for taking the time to dial in to our full-year results for FY23. As usual, I'm joined by Kevin Ball, our CFO, Ian Humphreys, our EGM of Operations, and Kylie Fitzgerald, of course, here, who's our Head of Investor Relations. I'm going to go through the presentation with Kevin as usual, and then we'll open up for Q&A then after. I know a lot of this information in terms of the physicals and so on has obviously come out through the process of quality releases, so I won't dwell on that too much, and we'll get through this. I know it's a jam-packed day in terms of other companies releasing their data today as well, so I know a number of you have places to be quickly after this call, so we'll try and get through it relatively quickly. I'm over to the highlights over on page 3, and it just brought up some of the important changes in our business and results that we've achieved. Safety is continuing an excellent trend here at 13% improvement on our TRIFA to 4.7, and in this year we've had zero environmental enforcement actions, which is a fantastic result, something we aspire to all the time, but it's nice to actually see that delivered. The market, as everybody knows, has delivered very good pricing for us this year, and the realised pricing at $4.45 Australian dollars per tonne is certainly a fantastic record result. Volumes for the year at $18.2, which you saw with the Q4 release. The translation volume times at good price, obviously with our cost base, delivered a record EBITDA number of $4 billion and NPAT at $2.7 billion Australian, which is... which is fantastic. It's left us in a very good position net cash-wise. The balance sheet is in strong shape, as many of you know, at 2.65 billion at 30 June. That's enabled the board to approve a final fully franked dividend of 42 cents per share, which is a very good result overall. And that obviously is complementing the progression of our buyback during the course of the year, where we spent nearly $950 million on the buyback during the course of FY23. In aggregate, that adds up to a 52% total shareholder return for the year just past, which puts us in the top 10 of the ASX 100. And, of course, we're paying our share of taxes and royalties during the year. Kevin's surprised, reacting when I say we're paying maybe more than our share, he might think, but $1.65 billion in taxes and royalties during the year is quite a significant contribution to both state and federal coffers. So I'll move over to our markets, and obviously for the Whitehaven watchers, this is no new news to any of you. There's our markets and our spread between met and thermal. It's no real change in our business there, but I'll just call out a couple of little deviations as we've shifted weighting. Obviously with sanctions and so on around the world on thermal coal from Russia, or all coal from Russia, the thermal coal, most pointedly, has been taken up in the Korean market. So we sold less in the Korean market, but we shifted a lot of that volume into the premium market of Taiwan, which has been positive for us. And because you're not only, is that a very good, reliable market, Taiwan, but you actually get longer terms than you do with the Korean market. So we like moving that coal into that market. And our footprint in Malaysia has expanded also, taking up 7% of our volumes. This next slide really just speaks to Whitehaven as compared to other producing jurisdictions, so a company versus jurisdictions. I know that's an odd contrast, but it just goes to point out to you where we sit in the quality curve for our thermal product. This gives you the distribution, if you like, between the lower levels of what people call high CV coal versus the higher levels of high CV coal, which is more like the product that Whitehaven produces. In FY23, depending on how you cut this, 94% of our sales were actually thermal coal, and in excess of them, in excess of 35%, were in the 6,200 and above level. Now, I do note that other commentators classify high CV in different ways, and that's what we're just calling out here in in this slide. Some are as low as 5600, which we obviously don't classify that as high CV. When you see us sell 5600, we actually call that mid CV just so you can reconcile the terminology that we've used in the past. And high CV from our reckoning is the lower end of a GCNU contract. So that's at the 5850 level. So anything above that in our numbers normally is classified as a high CV coal. But what you can tell from this is obviously Whitehaven's portfolio is all in the high CV market. defined by McCluskey, and the greater proportion of it is actually in the high, high sea-lead market than pretty much anybody else going around. So a very good position for us to inhabit. Over to the next slide. Just again, one of the reasons why our coal is in such good demand is just the relative merits of it as opposed to using other jurisdictions' coal. And what this slide really just tells you, it just says that You know, you need 63% more coal. You're going to use Indonesian coal to produce the same energy outcome as taking coal from Walls Creek. And so that just gives you a sliding scale across various jurisdictions and the relative efficiencies of it. You can see who our main competitors are, if you like, in the high CV end of the market. And going from left to right, right across the extreme of the Indo sub-bit market, which is obviously the lowest-ranked coal market. And I've said many times in our presentations to a lot of you, that coal generally isn't a competitor for our coal. Generally, people blend it with ours. And so just as a cost-saving measure, because of its low ash nature, generally people will blend that with ours to bring the average cost of their feedstock down. Over the next slide, again, just a really nice reinforcement. It would be wishful thinking to think we could build a new coal-fired power station in this country and get the benefit of this. But I just sort of highlighted it again just for the sake of everybody out there. If you look at If you look at the brown coal footprint of the Latrobe Valley and what that gives you from an emissions perspective and you compared it to the types of ultra supercritical power stations that we are fueling in Japan, Korea and Taiwan, then you get an enormous benefit from an emissions reduction perspective. So from those two extremes, that's a 42% difference across what are mass market solutions for large scale energy production. So that's why people enjoy the use of our coal and are willing to pay a premium for it. Over across, again, this is a footprint with various markets. It's useful just to actually draw the connection between what it is we do and what it gets used for. And so in the Japanese market here, you can see that we're providing 41 minutes of the day electricity for Japan. In South Korea, that's gone down to nine minutes because of what I mentioned there before, that they are taking more Russian coal and displacing Australian coal generally. Taiwan's gone the other way. It's gone up a little bit at 15.8 minutes. Then that's, I'm sure nobody wants to have a blackout without Whitehaven Coal for anywhere between 41 minutes to nine minutes. In fact, on average across the 200 million people that inhabit these three jurisdictions, it's on a weighted average basis about 30 minutes of the day that we're fueling. So an important role that we play that we don't want to lose sight of. Now for Flickover, just in terms of the markets, obviously lots of focus on the outlook. We have seen coal prices moderate from the highs that we saw in the first half of the year through to the second half. And it's always useful just to reflect on the various commentators and advisors and price decks that are published here. And we thought we'd just line them up for everyone to see how people are projecting the demand as we look through the forecast period after 2040. So you can see here Woodmac we've used often and we still continue to do that, but we've lined it up against AME and CRU and Commodity Insights to give you a bit of look as to how they see the market going. You can see them all, absent Commodity Insights, you can see they're all trailing down sort of in a way more or less consistent with the IEA various scenarios that we measure ourselves against as far as TCFD perspective goes. The outlier here, quite interestingly, who in more recent years has been more right than wrong, is actually Commodity Insights, which I know a number of you also use. They're actually projecting growth through this period from a thermal coal perspective in the order of about 25%. So it's quite a big change relative to the others. And I think it's certainly reflective of what we've seen in the market in more recent times. Although we are talking, obviously, an out period here for another 17 years. So things can vary as we know. Flipping across to the next slide, now when you have a look at that in relative terms and you have a look at what's the demand growth and then what's the runoff in supply, and what this points to is a very high delta emerging over that same outlook period in the high CV coal market in particular. So if your supply is growing and then the decline's coming up by almost exactly an equal amount, then there's about a 50% delta here in aggregate terms between what we think is the projected growth throughout through 2040 versus what the supply available to satisfy those needs will be so quite a big quite a big Delta now this is not just the preserve of high CV thermal coal it does also play out in in in the hard coke market as well so again this is commodity insights data looking through the projected out to 2040 and then again taking into account there is a runoff with existing production not as dramatic I have to say that there is a runoff in existing production, which leads to a delta projected at a 2040, so in 17 years' time, of about 74 million tonnes. So quite a big difference, not as big as the thermal market, but still a big difference, and at the rate at which progress gets approved these days or constructed, it will be very difficult to see that, an extra 74 million tonnes coming on in annual production any time soon. So just to summarise a few of the factors impacting the company during the course of this year, it has been a little bit bumpy. The first half, obviously heavily weather affected, as everybody knows. So that's constrained us as a supplier, constrained our peers as suppliers also. So exports through the port had been low year on year, as many of the operators deal with excess water in their pits, which has caused lots of challenges and continues to do so for some players. But it's been record pricing, obviously, which has contributed to the fantastic results that we've had. We achieved the 1% over GC realisations for the full year, which is a very good result. And we have been battling, though, with a number of different constraints in the market, and that is that labour has been quite challenging for us, as we've discussed over the various quarters throughout the year. And, of course, inflation is rife in our business well over Well over what you hear is the stated inflation rate for the economy as a whole. I think everybody observes that the mining industry itself is experiencing inflation well in excess of what the national experience is. And we'll speak to a little bit of that later on in our pack. So going on to the results, I'll just deal with our safety first. As I said, safety has been a very good story for us with our trend in safety continuing to improve year on year at 13%. And with no environmental non-compliances here, that's a really, really solid result and something, obviously, we should be very focused on replicating in this new year. Our engagement with the community and our people continues to be very strong. And these stats, I'm sure, are very familiar to many of you. And I'll just call out the material changes in here. You know, our female representation, our workforce is actually jumping quite significantly. Actually, that's been quite a focus. And so it's 17%. Now, that's certainly improving quite dramatically, and you can see the comparable stats there. It was 15 last year and 12 the year before, so making good progress there. Our workforce engagement's actually recorded a really nice bump as well, and so that's very positive. So our people are more engaged, despite the fact that it's a very tight labour market, as we've repeatedly talked about. So it's holding on us to make sure that we keep the people we have, let alone find the ones that we need to continue on our merry way. Obviously, Indigenous representation in our business has always been a high and very strong, as has our devotion to spending our money locally with various businesses in our region. So that's from Tamworth to Narrabri, shares that $350 million across a host of local businesses. Financial highlights, again, you've seen most of this, so I won't dwell on it too much, but they have very good results. $4.45 Aussie per tonne has been a great result. NPAT at $2.7 is quite an extraordinary result. Extraordinary outcome off the back of $6 billion in revenues, $4.2 in terms of cash generated from our operations. Unicost of $1.03, so you can see the manifestation of inflation in our business, and lower volumes for that matter, as we commentated through the quarters, driving our costs up to some degree, but inflation quite significantly affecting that. And total shareholder returns during the course of the year, that 42 cents, 40 franc dividends, an excellent result, 1.6 billion in total returns to shareholders with the buyback and dividends together. That means that's the dividends paid during the year plus the actual shares in the buyback program bought back during the course of the year gives the aggregate number of 1.6. And as I mentioned earlier, 52% total shareholder return, I think puts us number nine on the ASX 100, which is a pretty solid result. The Rom Waterfall, we thought we'd just break this out for you. You've seen this, obviously, across the quarters, but just categorised into the areas where we've had some differences from where we were in the previous year. Obviously, the flooding, you can see the flooding effects on both the smaller and larger mines being called out there. We are heading into a drier period by all accounts, so that's generally good for mining, although, as I mentioned earlier, everybody has plenty of water, and having only been through droughts in 2018-19, We put a lot of drought-proofing related infrastructure in our business anyway to withstand a drought or drought period if that re-emerges in the short to medium term. Narrabri had a very good first half of the year. That was actually really good, relatively unaffected by the issues associated with weather for our open-cut mines. But it did have a slower exit of 110b as we moved into that very extensive change-out, which we'll talk about a little bit later. Again, I won't go too heavily into this because you've seen all the results for operations through Q4, but Mauls Creek certainly weather affected. Q3 was flat and then Q4 was very solid, bringing home the results for the year. Our guidance for the new year is 10.1 to 11.2 in the new year in FY24 and hopefully obviously no weather. Our labour is in a better position, I'm sure, which will be a product of some Q&A at the end of this discussion. And there are some AHS constraints, which we've already spoken about in our last call, which we factored into this as we transition by the end of this calendar year into full in-pit dumping and the need, obviously, to keep our AHS project separate, segregated from our manned fleet in the short to medium term. Over to Narrabri again. We've spoken about this at some length already. I think the key here to call out is really guidance for the new year. 6 to 6.7 million tons for the year. As I say, the slower exit of 110B and we're now cutting away obviously at 203, which is very positive to be back on that side of the mine. And so that'll be the total for our ROM guides for narrow rifle this year. Now, just moving over, as I said, we're into 203. We've got our cut and fit operation now complementing the volumes coming off the long wall. And... And I'm going to talk a little bit about this a little bit further because we've asked to provide some more detail on just the capex associated with the 200 series panels where we currently are and at version stage three, which is the 300 series panels. And I'll deal with that a little bit later. Going to our open cuts, the overall ROM of 3.4 million tonnes for the year from the two operations was 15% below the previous year. So that was obviously heavily weather affected. It is, sadly, for Werris Creek, the mainstay of the provision of coal under the Coal Reservation Policy, which was not very popular, as you can imagine, with us or any of the coal producers. And we'll see that that's got to go through until 30 June of this year, and then obviously up for discussion as to what happens then after with that. But our guidance for the new year, 2.6 to 2.8 million tonnes for for the gun and open cuts, acknowledging that Weres Creek finishes up early in the new calendar year in this financial year. Over to the operational performance. Now, our drive in this year is to improve the operational consistency and reliability of our business, and Project Lift is our business improvement program to focus on doing that. And really, essentially, we're just trying to make our business a little bit more consistent along the way and drive productivity benefits, particularly at a time when we're seeing significant inflation in our business. Cost outs in a period of inflation and resource constraints and labour constraints in particular is still quite challenging. So productivity, we believe, is the key to moving the dial here. We have put in place a range of labour initiatives to try and mitigate uh not just turnover but to find the people we need for our expanding business and uh and which is yielding good results in fact uh on the basis that we keep a couple of fleets uh in ahs operation at malls creek for this year and that's the basis of our budget and our guidance for the new year the two fleets remain uh in that form uh we're close to fully man there at malls which is a big improvement on uh on where we've been in the past uh but project lift It's definitely a focus, not just a year-on-year thing. This is actually a year-on-year improvement for our BI team and looking forward to seeing results coming out of this over this year and the future. I'll just flick over quickly to our early mining victory. Very exciting progress for us. Clearing and removal and storage of topsoil started yesterday out on site. So that's actually very, very exciting, quite a milestone. As everybody knows, this is really just a small version to take advantage of the existing capacity down at our Gunnedah Prep Plant and our haulage capacity down to it. And I'll take a pay obligation. So we're starting in here early. It's a low capex startup at $150 million, which will be spent entirely during this year. But nice to see that getting underway, and we should see the beginnings of coal at the end of this financial year. But we're in the process, obviously, of assembling a workforce. With WERA's coming off, we've got quite a few people over at WERA who want to come and work for Vickery. And generally, I have to say, the community and employment interest to coming over to Vickery was really quite positive. So not often you get to see a new mine start up, so quite a nice milestone for everybody. to witness. With that, I'll hand over to Kevin to deal with the financial results.

Thanks very much, Paul. So we'll have a look at the five years of history. In here you can see really the two strong years in 23 and 22, two years before that COVID affected in 21 and 2020, but really a record result for this year. Average coal price $445 a tonne, $6.1 billion in in revenue, EBITDA of four, as Paul has said, and NPAT of 2.7. After paying down our senior debt facility in FY22, we've really been delivering returns to shareholders in the form of frank dividends and a buyback program. We've decreased the shares on issue by about 19% since February 2022. And in addition to providing a return to shareholders, we've also built a balance of cash on the balance sheet, which really does provide some ballast in the share price. Over the coming slides, I'll take you through some headline numbers. So on to the EBITDA margin. A 75% EBITDA margin compared with 72% the previous year, two really strong years. Our average realization was about $413 after purchase coal, coal reservation, and royalties. Average costs were about 103. Now that's a whole of company cost, and we'll take you through that in a few slides to come. But there's some really good news in here in terms of we have delivered a premium to GC Neat, which we expect to do on a regular basis. A $310 margin on 12.7 million tonnes of owned coal sales. So a really strong year. Let's turn the page and have a look at EBITDA. Really the driver here was the increase in price, a billion dollar increase in EBITDA, $430 from FX. Our strategy in the year continued. We really washed coal hard. We could see the premiums in the high CV market, and we were working hard to provide a product that came with an increased cost, and we'll talk about that in a little bit. But we're able to utilize those high-quality washed coals to blend up coal, lower CV coal from Werris Creek and Narrabri into the high CV market. Only 14% of sales being mid-CV in the year, which I think is pretty good. and 80% of sales volumes are above 5850 NAR. The blending benefits from that washing strategy contributed about $270 million in EBITDA to the business. So you can understand why we do it. Higher costs were $238 million on the bridge. Input driven, our diesel pricing was 36% higher. Our explosives were 21% higher. Our OEM suppliers took the opportunity to negotiate increased prices, and you'll see that through Those guys would be the likes of Cap and Hitachi. Our wages and salaries reflected the difficult labour markets that exist and the fierce competition for labour. And because our volume was down, that impacted the costs across the business. FX, not really. FX did contribute to ours. The dollar fell from 73 cents to 67. There was some impact in costs in that, but more than sucked up by the FX on pricing. And I'll take you through the... the cost bridge in a little while. Coming over to pricing, again, I'd leave you with the perspective that generally we expect to be trading at a premium to GCNUC over a year. In a stable pricing environment, we would expect that slight premium, and you see that in fiscal years 19, 20, and 23, and then you see the impact in 21 and 22 of coal quality from Narrabri and that rising coal price in FY22. So moving to unit costs, which I think is where everyone's trying to, everyone's got some interest here. Our unit costs moved from 84 to 103. We've seen some temporary cost drivers, the impact of flooding on the volume of coal that we produce and move and sell. And as previously indicated, the half year, the benefit of having high coal prices played a role in the rise of cost because our product quality strategy sees us washing more coal to produce a better quality product. Cost increases also reflect the underlying inflation. We've talked about diesel costs, explosives, labour, OEM parts. So there's not much we can do about diesel, that just comes through. And I'd say to you that this year our procurement team spent a large proportion of their time dealing with demands for suppliers or from suppliers for increased costs. This is probably the first year I think where procurement hasn't actually returned a multiple of their own investment. So that tells you that there's pressure in the margin or in the market for costs. The NCIG, as we've talked about, the acceleration of the amortization of debt from NCIG, because we expect coal prices to remain strong, we expect to see that cost continue for several more years. I'd say to you, you can calculate our unit costs off the face of the P&L. We're transparent. Have a look at the appendices in the presentation to see the calc. And our unit cost is a whole of company unit cost, not a mine unit cost. So you should bear that in mind. Come over the page to our investment flows or total investing capital of $307 million. We spent about $240 in the business on development projects and operations. So $154 million in open cuts, Narrabri sustaining CapEx, the Narrabri 200 series main development and the Narrabri 200 series precinct and small CHP upgrades. Some other spending and regulatory remains a spend that continues to grow, I think, in coal these days, and I don't expect to see that go away. And you can see down on the acquisitions, and we've categorized those, deferred payments for the acquisition of EDF's interest in Narrabri, a further deferred payment on the Narrabri private royalty, internalizing the Gunnarubbasin haulage business, and some other investing spends. $307 million in total there. Come out of the page. I mean, this is a page that warms the cockles of a CFO's heart. At the start of FY23, we had a net cash balance of $1.04 billion. I'd say to you, we delivered $3.6 billion of operating cash flows. So let me say that again. We delivered $3.6 billion of operating cash flows. And at the end of June, we had $2.7 billion of net cash on the balance sheet. We put $307 into the business, which I just talked about. We returned $1.6 billion in cash to shareholders in the form of dividends and share buybacks. And there's another $70 odd million there in lease payments and some other things in there where we had to populate the employee share trust for Whitehall and Cole. So that's the acquittal of the cash. I guess some people will ask us what we're doing with the $2.65. This is a pretty good story. We're going to give the government $889. We paid them $52 in June. We'll pay them another $835 million in June. in December. We've got a final dividend in here of $337 million and that leaves us with about $1.4 billion on the balance sheet. A balance sheet that's in robust health would be the way I'd say it and gives us plenty of optionality. Net cash and liquidity. I don't plan to spend too much time on this. Strong cash position. We completed the refinancing in June. We've sourced the contingent credit support facilities, which is really guaranteed for environmental bonding, rehabilitation, biodiversity, port and rail. And we are going to retain some cash on the balance sheet for operating the business and for capital purposes. So just to remind people of our capital allocation framework, I'd say this is not a tough piece of maths. We've got $2.7 billion in NPAT. Between dividends and share buybacks for the year, we will have allocated $1.35 or $1.3 50% of that. So we do invest capital to maintain or optimize operations. We put some cash on the balance sheet, which you've seen, but we are in the business of returning capital to shareholders and providing value to shareholders. So after all of that, if there are opportunities that make sense in the form of growing the business, either through the development projects we have, through additional returns to shareholders or M&A, that's where their decision comes down to. but it's all built around value and what's the value for shareholders. Turn the page, I think I can say we did return 20 to 50% of end patent shareholders through dividends and buybacks. And if you look down this page, we've done that in all but FY21 where we had a COVID impacted year. So I think it's a pretty good answer. The payout ratio of 50% includes $609 million for dividends, which is a touch over the 20% that we've referred to, and $724 million in share buybacks. So it's a good story. So Paul, coming back to you. Thanks, Kevin.

I'll just move over to our outlook and talk about some of our guidance again, just to restate that. From the market outlook perspective, the market actually is quite interesting. If you look at thermal and also, as also met, both prices actually look reasonably well supported in what's otherwise relatively subdued times. From the thermal side of things, obviously, The mad scramble for every molecule of energy last year and combined with a mild winter in the north did leave people overstocked for this period of the year. And so incremental buying has actually been relatively muted. But despite that, I think you've seen coal prices pretty steady at reasonable levels. And despite the turbulence you're seeing from a growth perspective, particularly in Asia and China, With that discussion, Europe being quite flat, the met coal pricing also has actually been pretty good despite all that. So the fundamentals, we think, for the outlook are actually pretty solid. And those factors that we've seen before seem to be underpinning a pretty good year for us in this new year. So over to our guidance, as I mentioned, I've gone through the mind-by-mind guidance, but I haven't touched on the sales. So managed coal sales, we're looking at 16 to 17.5 million tonnes, the equity number there at 12.7 to 13.9. Cost basis, as I mentioned, we've got a range here, 103 to 113. That is a decent range, and we're just acknowledging the types of inflationary impacts that Kevin's outlined and some of the key ingredients to our business already. And then, of course, capex now. The CAPEX is stepping up at 460 to 570. That's quite a significant portion of it. And I do want to spend a little bit of time just to work through this quickly for you. The key thing that's easy to able to excise from that number is really just obviously Vickery. So you can take the 150 straight out of there because we've talked about that. And that's easy to understand. But we do have a step up in CAPEX associated with Narrowbriar. And so as I mentioned earlier, We do get lots of questions on this, so we wanted to try and help you all out and understand a little bit more about Narrabri and what's going on there. So there is obviously, it is an underground mine, so it does have higher sustaining capex than the open cuts do. And there's obviously lots of, it is capex hungry because a lot of the work goes in before you actually cut any coal. And so as everybody knows, the operating costs are actually, the act of cutting the coal is actually quite minor. And the rest of the cost to produce is actually amortization of costs incurred in mining. early before that or in fact in previous periods, whether it be for development lanes and so on. So I will just scroll forward just over to a slide just to remind everyone. Yeah, this slide, thank you very much. Just to remind everybody what's going on here. We've obviously finished those panels of the 100 series panels on the right-hand side of this slide. Now we're now into 203, the start of the 200 precinct, but there's still a lot of work there to establish the full 200 precinct. And then stage three, as everybody has heard us talk about for a long time now, is really the 300 series panels. And so there's lots of work here. And I just really wanted to remind everybody about some of the important features of this transition from, if you like, from right to left on this picture. We have got a thinning seam as we progress to the left. Our long wall that we've had since the beginning of the mine won't see the full life of this asset. It now goes to 2044. So, as we've always said, we will need to put an order in for a new long wall, and it will need to be reflected at a slightly thinning seam as you go to the south or to the left, as it's depicted on this picture. And so, acknowledging that, there's an opportunity for us to perhaps order that a little earlier, which is what we said we would like to do, and then we would have two long walls not operating... concurrently, but operating in sequence. So we'd have a walk-on, walk-off arrangement between a panel in the 200s and a panel in the 300s. So that does necessitate capex being spent earlier in order to facilitate that, but obviously you gain continuous production over the period that you're able to operate sequentially those two long walls. So that's just to remind you of the context of that. I will go back a slide now and just focus, give you some numbers here to work with on Narrabrike. So the 200 series panels themselves, the capex spend for that over the 24 to 26 year period, 24 FY24 to FY26, I should just be clear on that, is $250 to $300 million. And that includes $145 million for mains. Last year, we spent $34 million of that. Oh, sorry, in 22. And in last year, we spent $77 million of this total capital. 250 to 300. So everybody understands what the bucket for the 200 precinct looks like. Now, as I mentioned, we do need to set up the 300 series panels as well so that we can actually walk on, walk off once we've got two long walls. And so there is a bunch of capital that needs to be spent on that as well. And we're dragging a little bit of that forward, obviously, to buy a new long wall and then also set up the precinct to be able to operate within. And the capex for that is around the 800 to 850. Now, that includes That includes a new long wall, and recent estimates for this, if you need any more evidence of inflation, recent estimates of this is between $300 to $350 million for a new long wall. Now, originally when we talked about this concept, the numbers were less than half of that, and so it's quite an extraordinary change that that's brought about due to inflation, and also there are less of these things being produced. And so I suspect there's a little bit of strategic pricing being delivered there from the very few people now who actually make this type of equipment. So we've had a relatively modest amount spent obviously at FY23 and the balance of that capital, as you can see, we're projecting out over 25 to 29. This is an important piece of the puzzle. I know there's a lot of data in here, so I'm not going to go straight through it all now, but I just wanted to give you a sense and give you some more information so that you're able to work your way through what the step up in in capex is for in in this new year so obviously Vickery as I say 150 plus obviously Narrabri taking the big chunk of that also in our gardens for 460 to 570 million in this next 12 months the balances as you can see there there are overhauls and normal things that apply to our open-cut operations as biodiversity offsets there's a bit of housing investment of course we're trying to make it more attractive for people to move out to our region so we are investing in housing and issues We've got some money in there from emissions reduction studies and so on. There's a bit of land we've got to purchase as well. So I'm sure there'll be some questions out of this which come, but we're better to start off with a bit of information for you so you can actually use this for your projections going out now that we are definitely moving, hopefully, to the closing stages of the approvals process at the EDBC level for Narrabri now going out to 2044. Right. Now, if I could just... wrap up and we can get on to the Q&A. Our focus for the year remains relatively consistent with where we've been in the past. Safety and environmental management, obviously that has to be front of mind and our first cab off the rank of course. We've been doing well, want to continue to do well. Environmental performance outstanding this year. The challenge is to maintain that this new year and to keep the trend on our safety performance going. Operational reliability and consistency, that is something we're absolutely dedicated to improving in this year and that will be the key to delivering FY24 guidance. As I say, Project LIFT is very much something we're dedicated to and we want to see some really good results out of that quarter on quarter to just turn this into a bit more of a boring and reliable pathway through the course of the year. Cost management in this time and productivity with that has to be a focus. So you'll see plenty of effort invested in that. The safeguard mechanism, I think we have to respond to that in both. We'll obviously pay whatever is necessary as a result of that. We have got a dollar per tonne included in our cost guidance there for that, just so everybody knows. But there's also an issue there to look at the various means by which we can actually mitigate some of our emissions, particularly from Narrabri, because the underground mines across the industry are going to pay a heavier burden here than the open cuts, as we've talked about before. Early mining at Vickery, obviously fantastic to see that start yesterday and we're pushing ahead with that and of course we think there's a good year ahead of us here price-wise as well. The market looks pretty well supported and prices are starting to rise as we see it moving back into periods approaching the northern winter again and constraints across the whole energy complex are going to see prices continue to improve. So with that comes the responsibility of course to manage our capital prudently. And so we'll definitely be doing that. And the share buyback is temporarily paused, as we've noticed in our announcements already this morning, while we're considering application of that capital in the light of growth opportunities that have presented themselves. So with that, I might bring the presentation to a close. And Lisa, we might move into the Q&A session, given I know that we've got maybe 20 minutes there and people have got a hard stop. They've told us at 10.30. Lisa, can I just ask everybody to, once you've got the mic, let's not rattle off three or four questions. That's not really fair to everybody else on the call. So can I ask you all, we'll get to you all at some point, whether it be today or in this call, but later today. One or two questions, please, just to make sure everyone gets a go.