Alkane Resources Limited

Thank you for standing by. This is the conference operator. Welcome to the LKN Resources Second Quarter Fiscal Year 2026 Financial and Operating Results Conference Call and Webcast. As a reminder, all participants on the telephone are in listen-only mode, and the conference is being recorded. After management's presentation, there will be opportunity to ask questions. For those on the telephone, to join the question queue, you may press star 11 on your telephone keypad. Participants on the webcast may type your questions in the Q&A feature in the webcast. Now let me hand the call over to Natalie Chapman, Alkane's Corporate Communications Manager.

Hello, everyone. Thank you for joining our call today. Some housekeeping items to note. The accompanying presentation for today's call is available for download from the company's website at alcres.com. Today's press release, the financial statements and the MD&A are all posted on our website and CETA+. For those of you on the webcast, please move through the presentation slide yourself as directed by our presenters. Moving on to slide two. I'll remind everyone that this conference call contains forward-looking information that is based on the company's current expectations, estimates, and beliefs. and may also use terms that are non-IFRS performance measures. Please review Alkane's quarter two fiscal year 2026 disclosure materials for the risks associated with this forward-looking information and the use of non-IFRS performance measures. Please note that all dollar amounts mentioned on today's call are in Australian dollars unless otherwise stated. Also, as management reviews the quarter and half yearly results, please remember that Alkane has a June 30th fiscal year end. So the quarter ending December 31, 2025 is our second quarter of the 2026 fiscal year. And as we closed the merger with Mandalay Resources on August the 5th, 2025, our group financial and operating first half fiscal year fiscal 2026 results shown today only include five months from the Costa Field and Bjorkdale Mines, the former Mandalay operations, and a complete six months of results from Tomingley. Please move on to slide three. Today's speakers from Alkane Resources are Nick Earnor, Managing Director and Chief Executive Officer, and James Carter, Chief Financial Officer. I'll now hand the call over to Nick Earnor.

Hi everyone, and thanks for joining us today. Let's go to slide four, which provides a quick summary, highlighting our record achievements on our very successful first half of 2026. Alcan had a record-setting second quarter and first half of fiscal 2026, both operationally and financially. We produced just over 43,600 gold equivalent ounces in Q2. which gives us just over 74,000 gold equivalent ounces for the first half of 2026. Now remember here, the ex-Mandeley asset production from July, the month of July, is not included in that number. And so when we look at our full year, so the full 12 months including July, including Mandalay assets, we're on track to meet that group 2026 guidance of 160,000 to 175,000 gold equivalent ounces. So given the strong prices for gold, the strong prices for antimony, and our great production results, our mines generated Australian dollar, 133 million of operating cash flow for the quarter, which has boosted our already strong financial position. As a quarter end, we had Australian dollar, 246 million in cash, bullion, and liquid investments on hand. This strong financial position, combined with what we expect to be continued robust free cash flow from our operations, allows Alkane to aggressively grow the company through exploration, capital programs in each of our mines, as well as advance the Bode-Kaiser copper-gold porphyry project and opportunistically grow the company organically. Now let me move on to slide five to get into more details on the quarter. On a consolidated basis, in Q2, Alkane produced nearly 43,000 ounces of gold and 267 tons of anthony, which equates to nearly 44,000 gold equivalent ounces. All of these are records for Alkane as a company. This was from mining nearly 581,000 tonnes of ore at an average gold grade of just under 2.4 grams per tonne and an average antimony grade of just under 1%. Recoveries of just over 90% gold and just under 87% antimony were higher than in Q1. Now, I'm going to get into specifics with each mine shortly, but let me summarise. Overall, all our mines are operating well. and all of them meet our own expectations, which are very high. So let's move on to slide six and look at Tommingley. In Q2, we processed nearly 319,000 tonnes of ore and an average recovery rate of 89.8% and an average grade of two and a half grams per tonne. This led the mine to produce a bit over 22,000 ounces of gold. This is 20% higher than we got in Q1. High production came from slightly improved operations but mostly from the planned mining sequence moving into higher-grade zones. Also, continued cost management. And this resulted in all in sustaining costs in Q2 being Aussie $2,216 per ounce. The US dollar amount is on the screen there. This is 16% lower than in Q1. So the primary source of auric tomingly continues to be from the Roswell underground deposit. During the quarter, And I'm going to describe, this is ordinary course of business for us, but I want to give you detail on us. We had some minor challenges. We had some shock credit downtime that delayed our pace fill. We had some lower development rates leading to lower development ore. And we redesigned some stope shapes to improve load recovery. But all these issues were overcome pretty rapidly, and like I said, are part of the ordinary course of business. Our processing plant continues to perform well. We're milling in excess of budget, And primarily this is a result of us inserting a mobile crusher to pre-crush the material prior to entering our processing circuit. So this pre-crushing material entering the circuit has seen a nominal increase in milling rates to approximately 1.3 million tonnes per annum. With further optimisation on both throughput and cost options for this mobile crusher continuing. Capital expenditure during the quarter was mainly for the new highway realignment project. Construction of this is expected to be completed in about a year from now in 2027. This is a high-return project which allows us to access the high-grade San Antonio deposits in two new open-cut mines. Bottom line, improved productivity, lower costs, high gold grade, high gold prices. Cash flow from Tom Ingle was Australian $67 million in the second quarter, or a bit over 70% higher than Q1. Moving on to slide seven, Q2. At Bjorkdal, we processed nearly 330,000 tonnes of ore with an average grade of 1.04 grams per tonne and an average recovery rate of 87.4%. This allowed us to produce just under 10,000 ounces of gold. All in sustaining costs in Q2 were Australian, 4,117 per ounce, again, the US is on your screen, or 2% higher than in Q1. Bjorkdal was a solid quarter mining performance. All production's going well. We've got consistent stope productivity, and we've got stable development activities. We've also started replacing some critical equipment, which has resulted, as you'd hope, in machine availability. Further equipment replacements are continuing in this quarter, current quarter three. Mill throughput was a little bit slower, I mean lower, than the previous quarter. This is primarily due to our mill reline. The new linings we put in were wearing slightly slower than the anticipated rate. Good for relining. but it limited our maximum allowable mill load. The completion and commissioning of the return water system from the mine as well has also had a positive impact on float performance to date, which has led to improved recovery. With improved productivity and high gold prices, operating cash flow from Yorkdale was Australian 35 million for the second quarter. Onto slide eight. At Costa Field, our gold and antimony mine, we processed nearly 35,000 tonnes of ore. In Q2, we planned to be in a higher grade sequence in the mine. Therefore, we achieved an average gold grade of just over 10.4 grams per tonne and an average antimony grade of 0.91%. Both of these were higher than in Q1. Gold recovery rates of 93.9% and an antimony recovery rate of 86.8% were also higher than in Q1. Our increased plant efficiency and throughput rates, particularly as well as the grade, allowed the mine to produce 10,790 ounces of gold and 267 tons of antimony, or 11,686 gold equivalent ounces. All in sustaining costs in Q2 were Australian $2,149 per gold equivalent ounce, resulting in a 12% decrease from Q1. And this demonstrates the focus we have on getting high grade in and expanding our production rates. Cost of field summary, steady operational performance during the quarter, strong mining productivity. As well, we continue to advance several initiatives to improve our ore quality and recovery. We continue to try and optimize drill and blast optimization, remembering this is a narrow vein stoping environment where we're trying to keep our widths as tight as possible. We continue to focus on operator training and we are moving towards emulsion explosives because we want to improve some recovery and reduce dilution. So we prioritize here on Costa Field, operational consistency and grade control, and we use this to underpin our strong production outcomes that we expect to get over the coming quarters. So with this great productivity, with our cost control, high gold prices, and of course high gold grade, operating cash flow from Costa Field was Aussie 30 million for the second quarter. Now, moving on to slide nine, One of the key strategic initiatives that we have is to drive organic growth by increasing mineral resources. We have an aggressive exploration program across our portfolio. I'm gonna tell you about that now. So on slide nine here that we're at. At Tommy Lynn Q2, we invested two million Aussie for the quarter in several programs. This includes one and two on the picture, extension drilling under the existing pits of Wyoming and then Coloma North. Number four on the picture, resource infill drilling at Roswell. And we get results here like just under eight meters at nearly half an ounce per tonne. At three, number three, discovery of a new zone of gold rich mineralization at McLean's right next to existing infrastructure. Intercepting gold intercepts like 26 meters at 4.36 grams per tonne of gold. Down at number five, and we own the land under this, drilling in El Paso, which also resulted in several significant intercepts, including 8.2 metres at 3.74 grams per tonne. And then last but not least, at number six, we commenced testing Peak Hill for its gold copper porphyry potential, and number seven, we're conducting geophysical targeting and drill testing for low-sulfidation epithermal gold-caused veins at Glen Islay. What I wanna show you here is that a lot is happening at Tom and Lee to expand the resources. And more importantly, that the sheer volume and range and distance of this work alone demonstrates the big potential and the reason why we continue to focus on exploration. So let's move on to slide 10, Bjorkdal exploration. Here we invested Australian two million on a program at number three, there, Storheden, and on two programs to test the northern and eastern depth extensions, numbers one and two, with the goal of extending the ore body that's currently being mined. So for example, at Storheden, the number three, the results of this drilling highlighted the doubling of the known depth and extent within a series of Bjorkdal, just like the deposit to the south style veins, interpreted across three target domains. This was all released in December. The highlight results included 34 grams per tonne over 1.6 metres, 142 grams per tonne over 0.6 metres, and 111 grams per tonne over half a metre. This narrow vein, high grade, this is the backbone of what we see at Bjorkdal, and we've got the expertise to mine these type of veins, either narrow vein or over broader swarms, efficiently. In additional, over at number four, to the right of your page, workers recently commenced to extend the North Berriot resource. So let's move on to slide 11. At Costaville, we invested six million Australian dollars in Q2 on near-mine drilling with three main focus areas. Number one, Brunswick South drilling, we focused there on building the high-grade intercepts we discovered earlier in the year, so earlier in 2025, with progression to infill drilling late in the quarter. And number two, Kendall drilling. We're exploring a series of veins, quite high-grade, above the currently active Yule workings. And number three, the Sub-King Cobra, we call it. We're drilling focused both on infill and extending the mineral resources below the existing Cuffley and Augusta workings. But additionally, perhaps even more excitingly, numbers four and five, True Blue has progressed with three diamond rigs predominantly concentrating on infill drilling with a focus on step-out testing at our surface geochemical anomaly there. Meanwhile, number six, we're also testing the potential for a Sunday creek stone mineralization just below Costa Field's historic mines. So moving on to slide 12, this is the Northern Molong Porphyry Project, the entirety of which is shown on the map of this slide, stylized map on this slide, and this is a highly prospective gold and copper corridor. This project also encompasses, in the bottom right of your page, our Bode-Keyser copper-gold project. During the quarter, we invested three million Australian dollars on several programs, including a mobile magno-telluric survey we completed across most of the deposit you see there, and we think this will guide us towards future high-value work programs. We continue to make progress on a 4,500-meter reconnaissance drill program to learn more about the project's potential. Of course, we'll announce results as we receive them. What I want to make clear to you all, the reason why we're focused on this is we're looking to further increase the already substantial gold and copper inventory. This project and what can come from it is incredibly leveraged to the current price. As you can see, there's heaps of exploration work going on at each of our projects. Our goal is to expand resources to increase mine life production levels and drive new discoveries. Undoubtedly, I want you to see that exploration is a key pillar of our strategy that's fundamental to our organic growth objectives. And with that, I'm going to hand over to you now, Jim, to provide a review of our financial performance. Thanks.

Thanks, Nick. So if everybody could, we'll turn to slide 13. And so I'll start with an overview of the key financial highlights for this second quarter ended December. and also the first half, which is the six months into December as well. So we'll focus on these 2026 results because the results for the prior year do not include the former Mandalay operations. So consolidated revenue for the quarter was $256.7 million and an average realized price of $5,075.85 per ounce. or around about US$3,857 per ounce. That was 18% higher than our Q1. Average antimony prices were US$42,500 per tonne or about US$28,327 per tonne. And that was 19% higher this quarter than the previous quarter. These are record revenues achieved in the second quarter. They were a result of strong operations robust gold and antimony prices. And cash flows for our second quarter could have been a bit higher, about $18 million higher. We had a shipment from Costa Field that sort of departed around the Christmas period. So that payment, which normally would be received a little bit quicker sort of because of the Christmas holiday period, that came into received in early January and that will be recognised in our Q3 cash flows. Site operating costs on a consolidated basis were $2,031 per gold equivalent ounce produced. That was about 8% lower than the September quarter. This is a result of improved throughput levels, capturing some synergies from the merger and just trying to maintain the cost discipline. All in sustaining costs were $2,739 per gold equivalent ounce or about $1,826 US dollars an ounce produced, that was about 8%. That was also 8% lower than the previous quarter. So at these cost levels, we are within our 2026 guidance range. EBITDA for the second quarter was a record $147.2 million. Sustaining capital during the quarter, that was $20 million. That included $10 million for capital development at our Yorkdale operation in Sweden. and $4 million of mining and selling equipment at Yorkdale and Tomingley. Growth capital in the quarter was $9 million, and most of that was at the Tomingley operation on the Newell Highway alignment, which Nick touched on a little bit earlier on the Tomingley side. So that gives us access to the eventual mining of the San Antonio open pit in 2027. exploration expenditures for the second quarter were $11 million, and I think that was all captured by in the slides that Nick was talking about just slightly earlier. So return to slide 14 now, and we're having a look at our second quarter cash flow. So in the December quarter, cash flow from our three operations was $133 million, or 82% higher than the first quarter. Corporate and other expenses were $20 million. That included $7 million for corporate and technical support across the group, $6 million for a cashback bond, which we were required to put down as part of our new highway realignment project. That's a bond that will come back to us over the course of the next 18 months or so upon successful completion of that project. and $3 million for boater exploration and at about $2 million for loop and closure costs. So after all of that, after sustaining capital, growth, exploration, taxes and corporate, we ended the quarter with $218 million in cash. So overall there, $58 million increase from the September quarter, which is really pleasing. So at December 30, 2025, liquidity remains exceptionally robust. We've got cash, bullion, listed investments totaling $246 million Australian dollars. So we've got a clean balance sheet. You know, debt is just limited to some equipment financing for our mobile equipment across the group. So, you know, that's just giving us a really enviable financial foundation that, you know, we think that and the peer group can match. Underpins the foundation to grow the business, pursue organic growth targets, which Nick had spoken about a bit earlier. And, you know, it gives us flexibility to act on strategic value, creative opportunities, you know, as they arise. So, you know, with that, I will turn the call back to you, Nick.

Thanks, Jim. All right, everyone, let's go on to slide 15. I want to focus on our outlook, which I think you can see has a pretty clean momentum. Leveraging the financial strength Jim just outlined, we're well positioned to scale up our business. We've got a dual track strategy. We're fueling growth while keeping a sharp focus on cost efficiency, a discipline that's reflected through the maintenance of our 2026 guidance. With our record-setting first half behind us, we're carrying a lot of energy into the remainder of the year. We're firmly on track to achieve the annual production minus the July mandalay of 155,000 to 168,000 gold equivalent ounces. But as I say, let's look at this at three operations for 12 months. 100% basis, full year guidance. It's pretty impressive, 160,000 to 175,000 gold equivalent ounces. Now on the cost front, we're disciplined. We want to drive down the costs at Bjorkdal. We're disciplined. We've got a consolidated oil and sustaining costs firmly on track at Aussie 2,600 to 2,900 per ounce. So this is US between $16.90 US and $18.95 per ounce. The real story is our impressive commitment to organic growth. We're putting 78, somewhere, it'll land somewhere between 78 and 88 million Aussie into growth capital and exploration to unlock the next chapter of this company. Tom and Lee, I don't want you to see this as just infrastructure. It's a gateway. This realignment of the Newell Highway is the key that unlocks the high-grade, large-scale sand antenna deposit in about a year from now. And at Costafield, our objective here for drilling is clear. We're extending the mine life and building the case for potential future processing expansion. And over at Bjorkdal, our focus is on precision. We're building a high-grade inventory that we want to redefine our future mine studies and increase the mining rate. So this guidance is more than just a set of numbers. It's a roadmap that we're trying to build a larger platform, achieving the vast potential of this business. So let's move to slide 16. What you can see on this slide is more than just a plan. We have a commitment to performance, and we're delivering on that. We're squarely positioned to meet our production targets, but we're not stopping there. We're deploying the drill bit, which I've talked about, across the entire portfolio to expand the resource base. This is a bedrock of the strategy. Extend mine life and accelerate production growth at all three operating mines. And let's not forget Boda Kaiser. This world-class copper-gold port-free project remains an important part of our long-term value. We're moving with a purpose on the environmental studies, the permitting, and the consultation to advance these projects. And in doing so, we're giving ourselves maximum flexibility to consider ways to unlock value. Corporately, our balance sheet is a clear strategic advantage above our peers. In this gold price environment, we expect to continue building our cash position. And as we seek inorganic growth opportunities, we're well positioned to move quickly, but with discipline, and we have strong financial flexibility. We're confident, we're focused, we're well positioned to drive long-term value for their shareholders. And with that, I'll hand the call back to the operator to start the Q&A session. Thanks, operator, over to you.

Thank you so much. Dear participants, as a reminder, if you wish to ask a question over the phone, please press star, one, one, on your telephone keypad and wait for a name to be announced. To withdraw a question, please press star, one, and one again. Alternatively, you can submit your questions via the webcast. Please stand by, we'll compile the Q&A roster. This will take a few moments. Once again, if you would like to ask a question over the phone, please press star, one, one.

And now we're going to take our first question on the line.

And it comes to the line of Daniel Baldini from Oberon. Your line is open. Please ask a question.

Hi there. Congratulations on the very nice results. And thanks for taking my call. I have a question and I guess a comment. So my question is, you announced an ADR, sponsored ADR program. And you already have an unsponsored ADR program and the shares trade in Canada and also Australia. And I know you talk all the time about increasing liquidity. And I'm just curious whether, you know, basically having these four venues for where your shares are trading is actually fragmenting liquidity and not really increasing it. That's my first question.

All right. Yeah, thanks, Dan. How about I answer that and you can ask the second party if there was one. Yeah, clearly we took a fair bit of advice out of North America on this one. The clear expectation that we think will occur is that most people will go with the issuer-sponsored ADR because of the increased liquidity that will come there rather than the non-sponsored version just because the liquidity will be less there. what's really interesting is what we wanted to do and it remains to be seen whether this is correct right but what we wanted to do was create a vehicle for particularly retail investors in North America to be able to access the stock with liquidity in a clear price point because there would appear to be particularly as gold has such interest a quite a degree of people that are using that mode and method and who just don't access the TSX and the ASX. So we're watching with interest and we certainly think that it's something that we should try in this market.

Okay. And two more, if you don't mind. You talk a lot. No, no. Recently you mentioned your aspiration to get into the ASX 200. And I recall at the time of the merger with Mandalay, there was a lot of talk about what a wonderful thing it would be to join the ASX 300. But it doesn't seem like joining the ASX 300 has done anything. I mean, I look at this Edison report and that shows how, you know, undervalued you are compared to your peers and so forth. So I just wonder whether it, you know, aspiring to join the ASX 200 is just sort of a waste of energy.

I've got to admit, you've got me a little bit baffled there because, and happy to get your comment on in case I've misinterpreted what you've said. So if you look at Alkane and Mandalay pre this, you know, Alkane's typical turnover was a million bucks a day and Mandalay's at one point was half a million and then it rose up to be similar. And then post the merger, you know, we are typically eight to nine million, Mandalay's is one to one and a half million. And we have seen a lot of index funds enter our register and then from the point that we stabilized at in share price of a nominal sort of $1.10, we've seen a drive up to $1.50 with a lot of buying come across in the 12 months. So certainly the index inclusion appears to have helped the register, the buying, you know, the share price, the support, the visibility of it. And all our understanding is that the ASX 200 will further deepen that pool. Are you looking at information that I'm not looking at? So I've misinterpreted you.

No, I'm just, I'm not looking at sort of liquidity or trading volume and so on. I'm just looking at the valuation of the company compared to, what at least Edison considers your peers. And the stock's been, remains quite undervalued. And I just wonder whether, you know, joining these indices really helps at all. Anyway, I think if we had...

I think if we had not joined the indices, then we would be horrendously undervalued, not just undervalued. So if you look at some of the peers that we have, like if you take, for instance, Catalyst and Oribenda, they have passed into the ASX 200, both with an uplifting buying that's coming from that. And so as to where all these things settle, I think the fundamental basis of our cash flow, our reasonably consistent production performance. Of course that has to shine through, and the index inclusion should be something that simply flows from that. But there's certainly value in exposure to a very large volume of money in the Australian superannuation funds being an ASX 200 versus ASX 300.

Okay, great. And then if you don't mind, one final thing. So you've built up this large cash pile here, and you talk about the uses. I'm curious what the priorities are. You've got this quite exciting Bode-Kaiser project, and I imagine that'll potentially involve a lot of CapEx. Mandalay, as I remember years ago, used to pay a dividend, and some of these large gold companies that you aspire to emulate pay dividends. And then you talk about corporate development and so forth. I'm just curious if you could talk a little bit about your priorities. And just one final thing. This earn-in seems like a very clever deal, but it would seem to me that proving that Mandalay is a great deal would go a long way towards convincing people that the next deal is going to be a good one. That's it for me, thank you.

Yeah, sure thing. A couple of different things to unpack within that. So let me hopefully, and you can come back to me if I miss one of them, my apologies. So if we look at our analysis that suggests that right now we can create more value for our shareholders by delivering on production, reinvesting into the businesses to keep the costs low, expanding the resource base, and then also inorganic growth where other businesses are undervalued. And so that's our main focus.

Presumably more undervalued than you are.

Yeah, of course, mate.

Okay. Yeah. Sorry, I interrupted.

Yes. Yeah, no, no, it's not the interruption. It's the assumption that we go and pursue a business that's a higher value than we are. Anyway, so then when we look at dividends, if you look at our peers on the ASX, of the top 20 gold companies, about five or six pay dividends at present. So clearly, as a board, we look at that you know, each time we meet around dividend and capital allocation. At the moment, our view is that we will continue to look for those, you know, internal things to create shareholder value. And then clearly, if we don't see that and our cash balance is rising, then we would look to return those to shareholders, yeah. So the second part of what you said is we're referring to the Ngambi earn-in. I think that the thing that is really key to understand there is that there's a 30-day right of first refusal that Southern Cross hold on a deal they did with Ngambi a long time ago. I couldn't give you the exact timing. So they may either elect to match that or not. In the event that they don't elect to match that, yeah, we're pretty interested in really seeing if the potential that we think could exist there at the Ngambi deposit does because logically it could absolutely either dovetail into the later years of Kosterfield or in an ideal world allow an expansion of that facility. All those things would need approval. And last but not least, you spoke about convincing people that the Mandalay deal had been a success in order to do it. Of course, I can't say what the parallel history would have been if we hadn't have done the deal. We don't know in this rising gold price environment. But certainly, as a combined entity, both of us have had more value realized in our stock and our price to NAV and all the other multiples than we were equivalently on our own. So it certainly appears successful in all of those metrics and certainly a share price that's been achieved for Alkane or Mandalay in reverse that just did not appear possible on a standalone basis. So certainly that's the feedback I'm getting from the vast majority of people. Thank you, Daniel.

Well, thanks very much.

Thank you. You're welcome. Dear participants, once again, if you would like to ask a question over the phone, please press star 11 on your telephone keypad. And at this moment, we will proceed with the written questions.

Natalie, over to you.

Thank you, Nadia. I'm heading off to the written questions. So, for M&As, where is your focus from a geographic perspective? Do you see any opportunities to build on operations in Australia and Europe, or are you looking in other regions?

Yeah, thank you. Australia, New Zealand, US, Canada, Scandinavia.

Awesome. Thank you. Mandalay was very excited about True Blue. Is that the highest potential target at Costa Field, or do you see another target as a priority?

Good question. It depends on the timeframe that you're talking about. Kendall and Brunswick South are the near-term targets that we're most excited about, but don't see either of those containing you know three hundred thousand four hundred thousand ounces at the moment is that they appear to be more incremental adding of one or two years production so true blue we're more excited about from a longer term perspective because indications are that we may be able to replicate the entire corridor length that we see you know all the way you know Augusta, Brunswick, all the old mines which have pulled over a million ounces out at Kosterville in the past. So timeframe-wise, True Blue, yes, is a more exciting prospect for us.

Thanks. What exploration target or opportunity within your existing portfolio most excites you?

I think... Again, it depends on which hat you want to put on. I'm most excited by the potential of discovering a similar swan zone type thing as seen at Fosterville, discovering a similar thing deep at Costa Field. But that is a very long-dated bet. But it is the most exciting because of how transformational it is and that sheer volume of ounces. that they had, yeah, yeah. Hopefully I've answered that, but please write another question if I've misanswered your question.

Thanks, thank you. We're halfway through quarter three, and gold prices are higher than quarter two. What visibility into quarter three results can you share with us at this stage?

Yeah, so we, you know, we're, you know, our full year guidance is on 12-month basis, is 160,000, 170,000 ounces. And on the half year, we were a bit over 80,000 ounces equivalent and just under the top end of our guidance. So we expect a quarter similar to the quarter that we just had. So yeah, we're very happy with where we're at.

Thanks. When do you think you might be in a position to make a decision on processing expansion at Tommingley?

Yeah, so I think people may have seen some of the subtlety in what I've described. So at the moment, we're achieving what we were hoping to achieve or had planned to achieve, sorry, with the plant expansion. We're achieving that with pre-crushing. We were hoping to add 450-odd thousand tonnes of extra throughput on the addition of about $40 million. $45 million Australian capital expansion. And we thought that we would try a whole heap of other things given all the money that we'd invested into the circuit on fine grind and all that sort of stuff. And pre-crushing was one of the things that we considered. And at the moment, we're north of 1.3 million tonnes per annum and with a line of sight of 1.4 million tonnes per annum. So all things going smoothly, I think that we will continue to eke out really small throughput improvements of the existing Tomingley plant because you know chasing effectively we'd be putting 45 million bucks in for a you know a hundred and hundred hundred fifty thousand tonne per annum which is not quite the case and we don't have the in my view the all resources yet until we get another major major discovery the size of Roswell to warrant upgrading the plant to say two million tons per annum or something hopefully that makes it clear for people sure

I'd just like to remind everyone who's on the call that they can ask a question in the question section of the webcast if you'd like to do that now before we're finishing up. I've got another question in here. Given your strong cash position and the high price of gold, has consideration been given to buying out your hedging position?

Yeah, I mean, as you can imagine, we talk about this at each board meeting. We talk about all the financial instruments that we have or could put in place. One of the other things we do is we talk a lot to our shareholder base about it. And the current view at present is to deliver into the hedges in accordance with the schedules that we publish now, quarterly reports. One of the reasons for this is we're in a very, very volatile situation. gold price environment at the moment, and feedback from a lot of our shareholders is that they wished to be the ones taking the gold risk, that we were a known quantity themselves. So that's our current plan. Obviously we continue to review that, and then, you know, even in some of the things we went with Daniel, cash balance, all these other things, are things that we take into account. But at the moment, if you're putting together a financial model, just assume that we are delivering into the hedge book.

Right, excellent. We have no further questions, so I'll hand the call over to Nick for closing comments.

Great. Thanks, everyone. Appreciate you taking the time to join us today. And look, whilst, you know, as per one of the questions Nat just asked, look, we've had a successful year so far and we really look forward to showing you more of this progress and showcasing to those of you in North America, getting people here in Australia to understand these assets more and reflecting on more of the value that exists in these really strong cash flows into our share price. So look forward to our next call in a few months, and as always, reach out if you have any questions. Have a good day, everyone. I appreciate it. Cheers.

This concludes today's conference call. Thank you for participating. You may now disconnect. Have a nice day.