Anglo American plc

Well, good morning, everybody, for those of you I haven't spoken to in person. Welcome, and thanks for joining us again today. So a pretty busy first half, following on from a pretty busy last year, but a very exciting one nonetheless for us, and I think definitely marking the transition as we deliver this accelerated strategy for Anglo-American. On a go-forward business in both copper and iron ore, I think we continue to deliver excellent operational performance, which is building now on the groundwork that we laid over two years ago. This focus on operational excellence is by and large driving stable and cost-effective production. In a world that is just getting more and more complex with some unprecedented volatility, it is more important than ever that we remain focused on what we can control, which includes driving operational excellence to get the most out of our business. I really am very pleased to say that completing the first and the biggest component of our portfolio simplification, which was the demerger of Valterra, has been really successful, unlocking material value for all of our shareholders. It took a tremendous effort from both the Anglo and the Valterra teams, and this was a really big step forwards towards the goal of becoming a focused, high-quality copper company. and premium iron ore producer with substantial growth options. We're going to talk a little bit later today about the coal transaction with Peabody. But regardless of the outcome of this specific deal, the portfolio simplification is progressing well, and we continue to work incredibly hard to unlock what we believe remains substantial inherent value within this company. The new Anglo-American provides an exceptionally high quality base and sets us up to benefit from high return growth in the right commodities with our collection of Tier 1 mines, our vast resource endowments and further long-term asset optionality. Safety is, of course, our number one priority and the primary focus in everything that we do. So, of course, it saddens me greatly to report the loss of two colleagues in two separate incidents in the first half of this year at our managed operations, one in Brazil and the other at Unki in Zimbabwe. This is a profound reminder of how deeply safety matters. Although we still have a lot of work to do in this front, we have indeed though made some significant progress in reducing our injury frequency rates across the whole of the business. In the first half of this year, these rates were reduced by 24% from the end of last year and have actually almost halved in the last three years. At the same time, our high potential incidents have continued to decline which is a result of disciplined execution, some strong risk analysis and mitigation, and the commitment of our teams on the ground. As a result of our efforts to simplify and prioritize work, our leaders are able to spend much more time now in the field, engaging directly with their teams, fostering this accountability that we were after, and encouraging now a culture of proactive reporting. Our commitment to safety is unwavering. It's a journey. We still have a long way to go, but I am confident that we are making progress. And we intend to end up with an environment where it is safe to come to work and leave work every day in the same way in which you arrived. Our operating model is the foundation of operating excellence. It is a structured approach which underpins the development and the delivery of our plans by connecting our strategy directly with the underlying assets. This disciplined execution ensures that we deliver the right work at the right time, but more importantly, in the right way. It also allows us to better understand potential problems much sooner and lets us address these proactively in order to maintain and drive longer-term value maximizations. The operating model is underpinned by our commitment to sustainability and also extends into our capital management capabilities. And this enables us to translate our endowments and our wider exploration program, of course, into value at the right time. Our operating model translates more into stability and in turn supports safety in the operations and options to pursue incremental improvements. And this helps us to generate the higher margins that we're now seeing and a return on capital employed, as well as enabling the delivery of value accretive growth and capital returns. I really am delighted by the performance of both our copper and iron ore businesses during the first six months of this year, and our guidance is unchanged for the rest of the year. In Copper Chili, we've seen some strong performance from Las Bronces, which has come in actually ahead of our plans as we continue to open up the Denoso II area and put that mine back into the right shape. The strong performance at Las Bronces is increasingly setting us up well as we head into an even better version of this mine once it adopts a joint mine plan with Next Doors and Dena as part of our agreement with Codelco. We'll continue to work on getting that agreement finalized and hope to do that later on this year. Los Brancos' performance, and in fact El Soldado's performance alongside Los Brancos, has fully offset the variability in the grade and the recoveries that we saw coming out of Coyahuasi. which is, I think, a remarkable achievement in and of itself, considering that both of those mines are overall lower grade, and it shows how much the team have turned both of those assets around in the last couple of years. Lower copper production was planned at Koyawasi for 2025, as the mine transitions between phases in the main pit, which is Rosario, and this is expected to be complete by the end of 2026. The stockpiles, which we had planned to use to supplement production during this period, turned out to be quite a lot more refractory than was expected. And as a result of that, we ended up with lower recoveries. This was compounded in the first half by the variability in the metallurgy and the water constraints that the mine suffered, which affected both throughput and recoveries. Now, in terms of the water, Koyawasi has started to receive additional water, so we've just commissioned our own desalination plant, and as of the end of June, we are now using that water, and of course that plant will ramp up. during the course of this year and on into 2026. And this should help to mitigate this issue of lower grades as we go through the development work on the mine itself for the rest of this year. So, therefore, we are expecting significant improvements in the second half from Koyawase. We're also now having a look at next year's plan from the independent joint venture team and are working with our partners to see how we can best optimize the ore feed and minimize the impact of these recoveries until we get that next phase into production later on in 2026. Now, this may include having to accelerate the mine development to manage ourselves through this transition. But let's not forget that Koyawasi is one of the world's very best copper endowments. With over 2.6 billion tons of reserves at almost a percent copper, it is an outstanding asset by any measure. Now, our newest mine, Queveco in Peru, continues to perform very well. In just its third year operation, it's still reaching above capacity throughput rates. Great cost management from the team on the ground there, and strong byproduct credits help to bring the costs in at Queveco at just 88 cents a pound, which shows the very high margin nature of this particular asset. Our high throughput rates are now unfortunately putting some pressure on the recoveries from the coarse particle recovery plant, and we are continuing to work on de-bottlenecking and drive improved stability and recoveries there. And then, turning to our premium iron ore assets, these assets underpin a very solid business, generating strong cash flows with upside optionality as the world steel industry moves to higher quality iron ore as an input to help them manage their own emissions. Our Brazilian iron ore operation at Minas Rio is delivering stable production, showing continuous improvement quarter on quarter. In South Africa, Kumba's performance benefited from improved rail availability and port performance, supporting very strong sales volumes. We also are continuing to realise the benefits of the reconfigured mine plan there. with some excellent cost control by Mpumi and the team. And we still have, of course, the UHDMS margins to benefit from as that project is going into implementation. So turning now to our portfolio simplification. Really pleased that we've delivered the biggest single element of this transformation journey with a successful demerger of Valterra on the 31st of May this year. And that was, as we remind ourselves, only just a year after having announced the accelerated strategy. We worked extremely hard to structure this demerger, including the prior distribution of part of our holding, the retention of the 19.9% stake, and in parallel, an Anglo-American share consolidation. The Valterra team has also been on an extensive marketing campaign, including global shareholder engagement and a capital markets day, which I believe showcased that business extremely well. All of the elements here, structurally and proactively, have addressed the flowback concerns and have helped, I think, to set Valterra up to succeed in the capital markets. I'm delighted. that we've also been able to share directly in their success alongside our shareholders, with the residual stake having benefited now from quite a material rise in PGM prices in the last couple of months, increasing by value of about half a billion dollars to around $2.6 billion as of yesterday. Now, as previously stated, we are looking to responsibly exit that position over time, and hope that the Valterra team can continue to move from strength to strength. The PGM's demerger was clearly a major milestone on our simplification journey, but our efforts continue unabated on the remaining processes. In Nickel, we signed the definitive agreement with MMG back in February of this year for proceeds of up to half a billion dollars, and we are now working through the final regulatory approvals. And in steelmaking coal, we completed the sale of Jelenba for a billion dollars at the start of the year too. Now, as you know, at the end of March, we had this unfortunate incident underground at Maramba. Most importantly, the mine was safely evacuated with all of our processes and procedures working exactly as they should have. The incident itself caused no damage to the mine, and there's no damage to any of the equipment in the mine either. And we are now going through a very rigorous process to work out the right approach to restarting the mine with all the appropriate regulatory approvals and safety considerations every step of the way. Our team in Brisbane has gone about this work in an excellent manner, I believe. So, you know, we have now over two decades of experience in operating this mine and the team in Australia combined with the technical capability team and the experience across the group are working diligently on the restart in partnership and in collaboration with all of our stakeholders. So as part of that process, we've set up a tripartite industry forum. So that's basically a forum that's constituted of business, government and labour stakeholders to discuss this incident and be sure that we are transparently sharing the learnings from this incident. This is a first, I believe, for the mining industry in Queensland and sets a new benchmark for both transparency and industry collaboration. We will continue to work very closely with our workforce here, with the industry safety and health representatives, as well as with Resources Safety and Health Queensland under a commonly agreed set of principles to progress a staged approach to recommencing production as soon as is feasibly possible in a fully risk-assessed manner. Now I want to be very clear that as we have worked through the different options, our primary lens, as it always is, has been safety. We got back underground in mid-April and we developed the plans for a staged restart. We had approval to start maintenance and development activities in early June. and work is now well progressed to prepare the long wall panel for a restart. Just last week, we received the approval to move the shearer from the tailgate, which is where it was at the time of the incident, all the way back to the main gate, and that is in order for us to undertake some specific long wall maintenance activities. And in so doing, of course, we're going to get the benefit of of the provision of some very useful data for validating our control systems as we move towards a safe and a structured restart of production. Now, subject to the final approval from the regulators, we intend to use remote operations at the restart for a period of time just as part of this plan. In regard to the sale process for steelmaking coal, Peabody was, as we know, the successful bidder and signed a definitive sales agreement at the end of a highly competitive process. While the Moranba incident is unfortunate and we are working constructively with Peabody, knowing what we know today in terms of the condition of that mine, the equipment, as well as the progress that we are making on a daily basis with the various stakeholders, as I've described, we remain confident in our belief that the event does not constitute a material adverse change under the sales agreement. We have been constructive, flexible and open with Peabody as we work towards completion and should Peabody ultimately decide not to complete, we remain confident of that legal position under the contract. We ran a very competitive process last year and the strong inbound interest that we have received over the last few months I think is a reflection that these may very well be the last Tier 1 steelmaking coal assets to come to the market for the foreseeable future. And I think it also underpins the fact that the supply-demand fundamentals remain very attractive for that industry. Therefore, if we are forced to remarket the assets, we are confident in a successful sale process, but this would potentially push back completion into 2026. Lastly, on the beers. Our commitment here to exit De Beers is unwavering and we are progressing with both a trade sale and listing options in parallel. Primarily due to the complexity of the shareholding agreements and more importantly the challenging diamond markets over the last couple of years, this was always expected to be the final step in the portfolio transformation journey. We continue to make good progress here on both tracks. The finalization of the sales agreement and mining licenses extension for Debswana with the government of Botswana back in February was a critical enabler to move forward with the separation process. On the trade sale route, we are currently engaging with a credible set of interested parties in a formal process now. In parallel, we have been engaging with the government of Botswana in respect of its interest to increase its shareholding in WS. A trade sale absolutely remains our preferred exit route for the business, but only if we can find the right buyer on the right terms. In parallel, we are progressing preparatory activities for a capital markets process should that become the preferred route for our shareholders. As far as diamond markets are concerned, we have started to see the early signs of stabilization. We certainly hope so anyway over the last six months. I think this is notable considering the increased volatility in the sentiment from potential tariffs. We continue to monitor the situation really closely and remain focused on managing De Beers' business to optimize the cash generation of that business while at the same time preserving the value of the iconic nature of this business. The De Beers team has a clear response plan ready to ensure that cash generation would be preserved should the market take a lot longer to recover. De Beers is such an important company to the country of Botswana and indeed to the other countries where De Beers operates. And so throughout the process, we are of course engaging with all of these stakeholders with regards to pathways forward as you would expect us to do. With some of the best diamond mined resources and best marketing capabilities in the world, De Beers, I believe, is well positioned to emerge and thrive as the market recovers. We continue to believe that there is significant upside potential in this business for the right combination of owners, and we will continue to keep the market abreast of developments as appropriate. And with that, I'll hand over to John, who will help us make sense of some of the financials in a really noisy half, and then I'll come back and close out. Thanks, John.

Thank you, Duncan, and good morning, everyone. I'm pleased with the underlying operating and financial performance during this period. But, of course, as we transition to our new end state, the financial reporting does become very complex. And so I've tried to set out on this first slide, as simply as I possibly can, the basis on which our numbers are presented. Firstly, accounting rules require us to present our businesses as either continuing or discontinued, depending on where in the sales process they sit. At this period end, that means that PGMs, SMC and nickel are discontinued, while De Beers continues to be a continuing operation. I've then set out our own defined pro forma, which is our best estimate of the ultimate end state for Anglo-American, including business. the divestment of De Beers and associated corporate cost savings. The results are clear. Our discontinued operations have suffered losses in the period, and this reflects the South African flooding earlier in the year affecting PGMs in the five months before demerger and the non-operation of both Grosvenor and Moranbah in SMC. Meanwhile, our continuing operations have performed well, albeit down slightly on last year, with that shortfall being almost completely due to De Beers and the continuing weak diamond market conditions. The combination of continuing and discontinued operations resulted in total group earnings of 15 cents per share and a dividend of 7 cents per share in line with our 40% payout policy. This lower payout reflects the losses from those discontinued operations. Looking at our results on a pro forma basis clearly shows the higher margin nature of our go forward business. Lastly, on this slide, on net debt, there's been a slight increase in the period to $10.8 billion. And with EBITDA from discontinued operations excluded from the calculation, this results in net debt to EBITDA of 1.8 times. Of course, that ignores the expected proceeds from the sale of our remaining 19.9% stake in Volterra and sales proceeds from SMC, Nickel and ultimately De Beers. Adjusting for those would see our net debt to EBITDA below 1 times. Moving on and starting with the results for the continuing operations. Production was down 9%, mainly due to De Beers managing production to match lower demand and the second plant at Los Bronces being on care and maintenance since the middle of last year. Our basket price was down 1%, largely due to lower iron ore prices. While EBITDA at $3 billion was lower than last year, largely due to De Beers, with margins similarly impacted. And that translated into a continuing earnings per share of 32 cents. Drilling into a little bit more detail now on that continuing EBITDA. You can see De Beers had a $0.5 billion negative impact compared to the first half of 2024. This reflects the prior year inclusion of a royalty sale of $0.1 billion and ongoing challenging market conditions. Our focus on reducing inventory in the period also resulted in some diamonds being sold at lower margins. But while De Beers overall EBITDA was negative $0.2 billion in the period, our focus on working capital meant that the business was cash neutral. The lower volumes that you can see here were mainly in copper. due to the smaller lost bronzes plant being on care and maintenance, together with lower volumes at Kolowasi as the mine transitions phases and realises lower recoveries on the ore from stockpiles. I was delighted once again with the strong cost focus. Commercially, our supply chain teams are doing well to manage CPI, while our cost savings are coming through exactly as planned. The net 0.2 billion cost benefit shown here reflects 0.3 billion of gross cost savings offset by 0.1 of higher costs, mainly at Kolowasi, as we accelerate development work to ensure we minimise this period of lower recoveries. Staying with costs, you can see here that we remain firmly on track to deliver our committed $1.8 billion of cost savings. In February, I said we would realise an incremental half a billion savings in 2025. 0.3 from run rate savings achieved in 2024 and 0.2 from new savings to be delivered as we further streamline our corporate costs. At the half year, we've realised 0.3 billion of that full year target of 0.5. And with restructuring activities continuing, we're exactly where I would want us to be. Standing back, you can see here that all of our EBITDA in the period came from copper and iron ore. Copper EBITDA represented $1.8 billion, with margins at 48%, as higher prices largely offset lower sales volumes. Notably, Kiaveco delivered a standout performance, with unit costs at 88 cents per pound and an EBITDA margin of 68%. Iron ore EBITDA was £1.4 billion flat on this period last year, but this hides a strong underlying performance, considering that lower prices were offset by higher sales and a strong cost performance at Ministerial. And as you can see here, the cost focus that I've just talked to is evident in our unit costs, with iron ore down 5% and copper just slightly higher, reflecting the reduced contribution from the lower cost kolowasi in the period. The underlying effective tax rate for the continuing business for the first half was 49%, reflecting the mix of profits with a higher proportion from Peru, where effective rates inclusive of mining taxes are around 41%, while still carrying corporate costs in the UK, and we expect the full-year ETR to be between 44% and 48%. Over the longer term, we expect the ETR for the end-state simplified portfolio to be somewhere between 38% and 42%, as Colowassie gets back to normal volumes and UK corporate costs are reduced. Touching briefly now on discontinued operations. Firstly, PGM said a weak first five months before demerger, mainly due to the flooding in South Africa in the first quarter. The insurance costs associated with that flooding will also result in a cash cost to Anglo-American in the second half of around $0.25 billion, given that it was self-insured. Secondly, SMC was loss-making in the first half, reflecting the fact that Grosvenor was not operating throughout the period and Moranbah is not operated since the incident at the end of March. And finally, you should note the loss on the demerger of PGMs. This reflects a gain of $2.9 billion on the assets demerged, being the market value on the date of demerger less than net asset value at that date. This gain was then offset by a recycling of historic foreign exchange losses of $4.6 billion on the translation of RAND underlying assets to dollars as required by accounting standards. as well as taxes and transaction costs incurred of £0.5 billion. And all of that was in line with our previous guidance. You will also note on our balance sheet that we have a financial asset investments of $2.3 billion in respect of a residual non-strategic 19.9% holding in Valterra, which was the value at 30 June. The net debt impact from discontinued operations was an increase of $0.1 billion, and I'll come on to that in a little bit more detail shortly. Looking next at our cash generation from continuing operations, which is another area of focus of mine. We again saw an inflow from working capital of $0.4 billion. As expected, our go-forward businesses managed to maintain the good working capital position achieved at the end of 2024, with the inflow largely driven by a reduction in diamond inventories in De Beers. This reflected a combination of diligently matching production to demand and a focus on selling down all categories of diamond inventory, even if some lines were at lower margins. While we continue to manage the situation closely, De Beers' diamond inventories are getting closer now to normal levels. The working capital inflow and close management of sustaining capex resulted in conversion of operating profit to cash of 108%. After tax, interest and distributions to non-controlling interests, our sustaining attributable free cash flow was $0.6 billion. From the sustaining attributable free cash flow from continuing operations, we then funded growth capex of £0.3 billion, mainly comprising the de-bottlenecking initiatives at Colomassie, the UHDMS project at Coomba, and the woodsmith spend to progress the critical studies. We then also paid the 2024 dividend. Proceeds from the Gellanbad disposal were $0.9 billion, while the impact of the PGM's de-merger was an increase in net debt of £0.4 billion. This reflects a neutral outcome on the demerger itself, reflecting the net impact of the debt demerged and the special dividend received. We then paid taxes and transaction costs of 0.4 billion in the first half, with a further 0.1 billion still to come, all in line with the guidance that we gave earlier this year. There is then a net 0.5 billion impact from discontinued operations. This reflects the trading results and capex for SMC and nickel, as well as plats up to the point of demerger, offset by the transfer of SMC and nickel finance leases to held for sale. So, this all left net debt at $10.8 billion and net debt to EBITDA at 1.8 times. And as I mentioned earlier, this is largely an arithmetic output rather than indicative of the group's position. This excludes EBITDA from exiting businesses and the proceeds for those businesses have yet to be received, including the monetisation of the £2.6 billion as at today's value stake in Valterra. As those transactions conclude, I would expect to see leverage come down below one times. Just touching briefly now on CapEx. We took decisive action last year to reduce the CapEx and you're seeing that come through here in these numbers. CapEx at $1.6 billion is half a billion lower than this time last year. We've been rigorous in our capital allocation and prioritisation of spend without, of course, compromising on safety or the underlying asset integrity. And with the exit of De Beers expected in due course, we would see that come down lower on a pro forma basis to around $1.4 billion for the simplified portfolio. And looking ahead, we expect sustaining CapEx at around $2 billion per annum, with LifeEx and growth options on top of that subject to meeting our hurdles, of course. Finally, it's worth briefly looking at the pro forma results for the go forward group without De Beers and including the full benefits of our cost savings. As you can see, it continues to show strong margins, cash conversion and return on capital employed, demonstrating the positive outcomes from our transformation strategy. So, rounding out then on the key points. Our go-forward businesses are performing well, delivering strong EBITDA margins. Our focus on cost is unrelenting and we're perfectly on track to deliver our committed $1.8 billion of cost savings. We continue, of course, to focus on cash generation. Our attention to detail on working capital and capex has ensured another period of very strong cash conversion. Our net debt will benefit significantly from transaction proceeds and the sell-down of our remaining 19.9% stake in Volterra, after which our leverage will be below one times. We continue to be excited by the financial outcomes from our simplified portfolio, higher margins, higher cash conversion and higher return on capital employed. Thank you. And I'll now hand back to Duncan.

Thanks, John. So there are a number of elements here which make our simplified portfolio stand out from the rest. the first of which, of course, is our commodity mix, which is now entirely future enabling products. We are fortunate in that we have some of the best copper assets in the world, which are set to represent more than 60% of EBITDA by 2027, all of which have significant expansion potential. Our iron ore business supplies premium iron ore to the steelmaking industry, and that positions us well as that sector decarbonizes and as new steelmaking centers emerge. The newly positioned Anglo-American, as John has just pointed out, will be higher margin and more cash generative. We are continuing to prioritize value accretion over volume growth, as at the end of the day, it is the value that you are creating from a unit of capital that should be the measure, not just simply the tons of production. And I think that the Los Bronces and Dina joint mine plan that we announced in February of this year is a great example of that. By working to solve for value and to generate meaningful synergies, we have created an outcome that is designed to provide substantial benefits for all of our investors. Our strong market base of assets, which are all competitively positioned on the cost curve, and in many cases set to improve their relative positioning over the next few years, will be key to generating higher free cash flow. This should support consistent capital returns for our shareholders over time. Now, you've seen this chart on the left before, and we continue to believe that it's a really important one, and the underlying story in it is important. It helps us to understand why, despite an optically high copper price, industry returns remain modest. The cost and the capital of building new projects has grown faster than prices. This lack of a price response is very unlikely to continue in the coming years considering the challenges that the industry is facing just to keep up with the expected medium-term demand trends. This will also, we think, shine a brighter light on those few companies that have long-life, high-quality, expandable assets with lower capital, lower risk growth options, which will be able to then generate higher returns. And it is not just the longer-term growth that will drive improving conditions for Anglo-American. As Koyawasi recovers from its current lower-grade phase later this year, and at Los Bronces, as it improves on its own before we even do the tie-in with Andina, industry consultants would, Mac, expect that by 2030, we will have seen the biggest improvement in the cost-curve positioning of the business as compared to our main peers. Our high-quality endowments also underpin our growth optionality. As this chart shows, we remain well-placed to deliver copper production in excess of a million tonnes per annum. Now, all of these projects in this slide are advancing in both the studies and the permitting processes. Rest assured that we remain very focused on optimizing for value rather than simply production growth at any cost, as I said. The Los Bronces plant decision, the prioritization of Los Bronces and Dena Joint Venture, amongst others, are examples of that. And we'll keep chasing down those adjacencies. Kiveko's pathway in the short run will be throughput of 140,000 tons per day all the way up to 150,000 tons per day, and we have now got the permits for that. Sakati in Finland has also seen an optimization that, and at the low end of prices, will see copper equivalent production of around 60,000 to 80,000 tons per annum. We continue to evolve and progress our studies on all of these projects and this alongside our substantial copper endowments and any further adjacency optionality I think reinforce a real pathway to a million tons and beyond. Turning to our premium iron ore business, now while we understand that there is a real focus in the market on copper these days, iron ore, specifically the premium quality iron ore segment, is one that we fully expect to generate substantial returns for shareholders. The material produced at Minas Rio and Kumba is high-grade and high-quality and compares favourably to our peers. Not only that, but the quality of our products is also improving over time. At Kumba, the UHDMS project will treble the proportion of premium quality production volume at Sishen from 18% all the way up to 55% and serves as a valuable addition to the mix of products already produced by Kumba. At Ministerio, the Serpentino resource provides us with the option to potentially double our production there, and that would be production of high-quality DR grade iron ore. While there may be some temporary short-term pressure on pricing as new sources of iron ore supply come into the market, When considering the declining grade in the Pilbara, coupled with China's commitment to decarbonisation, we continue to have conviction in the long-term fundamentals of iron ore. The optionality in our iron ore portfolio only enhances our ability to drive value from it. At Woodsmith, we are continuing to progress the three conditions that we need to be met before we would proceed to FID for this project. We have had some great learnings to date from the SBR moving into the Sherwood Sandstone, and the team have embedded these learnings and are setting us up very well, I think, to continue to sink one of the two main shafts. We are also making good progress with the syndication, with discussions going well with a number of strategic partners. And lastly, our balance sheet must be appropriately deleveraged at the time that we would be prepared to take this to the board for an FID approval. And on the market development front, we are continuing to see very positive market sentiment and strong inbound interest from the agricultural industry. Now, while Woodsmith remains a compelling opportunity, and has the potential to be a flagship asset in this portfolio, we only see these three conditions being fulfilled by 2027 at the earliest. In conclusion, our focus on operational excellence is delivering stable performance in our simplified portfolio, with both our copper and our iron ore businesses tracking to full-year guidance. Our cost savings targets remain on track, and we continue to drive efficiency through capex and working capital. We remain committed to our portfolio simplification and reached another milestone with the successful demerger of Altera earlier this year. We are continuing to progress our respective exits from the remaining businesses as expediently as we can and will continue to focus on optimizing value. Looking forward, we remain on a clear pathway to transform this company and are set to emerge as a highly differentiated business that is well positioned to deliver consistently through the cycle with significant growth optionality. And with that, I think John and I are very happy to take your questions. And Tyler is going to moderate just so that I don't call you by the wrong name. But Miles, I saw your hand.