Full Year 2025 IGO Ltd Operating Results Call

Banana key headlines: they had a better quarter but are still a long way short of expectations.

Uh, a number of issues again with equipment. Um,

Which, which affected their production costs, you know, proportionately were lower on a unit basis based on that increase in production, but still obviously make it very, very difficult.

to um,

to generate any, any real value, given the market, what I guess is a stand out there as we have, um, indicated that we expect to take on a further impairment, taking out the full value of train 1, um, that being assessed and we'll finalize that for through our annual results and, um, couple of other bits and pieces. We'll pick up at the end from a corporate point of view. But look, let's let's dive into, um, safety in a bit more depth.

Uh, as I said with something we've been working on, you know, obviously at a personal focus on this since I arrived at months ago, and the team’s had a, you know, focus of improvement here regardless to drive a sustained improvement in our safety performance. And what is so pleasing is now really starting to see that come through quarter on quarter. You can see in the chart that we put in that step down in the quantum of injuries, and you obviously trailing that, the 3 months and 12 months prior. That 12 months will taper off, obviously, you know, based on our work to sustain that performance, but you can see that shift down. I think the other big standout here is the severity of injuries.

Clearly, we want our injuries, we want less injuries, but we also want, um, low severity injuries, if they do happen, so that it's less impact on people less lost days and, um, that's certainly a very positive trend there. You see, in the orange, orange, liners, that declines,

The other point I wanted to call out on this slide was just the update to our ESG framework, which you'll see play out in more depth in our sustainability report. That'll be issued soon.

and I think that captures,

Or frames the way. We think about the major pillars valuing and protecting our people which obviously speaks to safety health and well-being and our people partnering to create Share value, shared value. Um, our socioeconomic contributions, mine closure working with traditional owners and communities. Um, transitioning to a low carbon future. So thinking about climate decarbonization and the impact of our operations. Um, the the fourth is driving our environmental stewardship through, biodiversity Water, tailings waste and non ghg, emissions and operating with Integrity, um, business Integrity, cyber security and the responsible supply chain. I really, I just wanted to call that out. Something that's uh, fundamental in our purpose, um, big part of who we are as iggo. And how we do Mining and how we operate in this industry is important to us. And this framework, I think reflects or captures the key elements there that you'll see play through in the way that

Seasons and think about, um, our presence, in the, in those, in those operations.

Moving on to green bushes, I've covered some of the headlines, but just to touch on a couple of additional points. As I said, the teams, you know, managed.

Through some unusually high rainfall particularly in June which certainly affected them um that was compounded, I get or compounded with um some lower grade um or that was available affecting meal recovery throughput so on all resulting in less production than than we probably anticipated but still a pretty solid quarter. You can say to see in line with Q3. Um but we still came in very close to the top of guidance for the year and I think credits are the team there, um managing issues that will come up from time to time through the, through the mine. But still delivering a, a very good outcome.

There's a significant amount of improvement work going on across the board. I'm sure there'll be some questions on that. Um, key areas, you know, a focus, you know, naturally things like asset management and asset Health. Um, work for the teams stepping through and mind productivity is the other big area. Of course, we've also talked about, um, with thinking about this holistically and the business, um, under Rob telford's leadership. But thinking about that life of mine or life of asset optimization and how these threads come to Bear. He's not

Indicating a step down and I think, you know, based on the ramp up of cgb 3, which is still to come and that really, you know, we're expecting that first. All right at the end of the year with the ramp up into 26 um based on the rate of ramp up, we've obviously stitched our guidance around the financial year, even though green Bush's plans on a calendar year. So we've, we've taken a view on that. We're not being aggressive with with our guidance, but um, the team

Um, natural naturally, there's some uncertainties when you ramp up any plan, um, it it's, you know, certainly got um a lot of capability wrapped around it and given the similar to cgp 1 and 2. We've got parallels that we can draw from. But um, all that aside, we need to let the team get on and do that work. And as you can imagine based on that ramp up, we'll see some of the fixed costs diluted further. And that may then give us uh confidence to to see those costs come down uh further just on the rate of production. Um, but we're also going to see, you know, the team continuing to put downward pressure on costs through all the productivity programs and Improvement programs across the business through the calendar year. 26 uh Capital guidance,

Look, I think again. We're stitching guidance. We're trying to take in what we see in terms of the completion of CGB, 3 and then various other projects, uh, across the business: tailings, um, other non-processed infrastructure, and of course stripping, which is a continuation. So I won't be able to go into, you know, intricate detail there. As you know, it's not something that we share in, um, in any specific detail. But, um, that gives you a range of where we're thinking, uh, things will look. As I said, we're stitching, trying to pick the timing of capex across a financial year, which is difficult. So we do our best at this point to take a perspective on that, um, second half or even without a plan. And, um, you know, we'll obviously update if as appropriate, and as we did through FY2.

On to Nova.

Uh, great outcome, great to see the team. They really lifted and I was so pleased for them to um, to to tip over the bottom end of the guidance, you know, obviously, I'm sure everyone was nervous and watching and we were too and we had confidence. The team had a good plan and they're executing and we could just see them delivering day after day. Um, it is certainly challenging and I think anyone who's been through the work, getting to the end of life or the edges of an all body knows how much variability and extra challenge comes in. And they had, you know, some really tough moments in the first half, they've turned that around and delivered to 2 quarters, um, in a row really.

Good performance, and that, of course, you know, turns out in equal production and obviously the unit costs as well. Copper's also been up, and that's largely driven, but it's nice to see that we're recovering that and feeding that back into the market at these times.

We've, um, just updated our guidance there, which we've already sort of signposted last quarter, $15-$18 million for nickel production, and that's through to the end of, uh, 2026. You know, let’s we can get into it further. But

Um, you know, through that quarter, we expect production to stop. It's a reasonably flat profile through to the end. And, you know, I think rather than trying to pick it too tightly or separate this year, we thought it's better just to maintain that guidance given it's only a few months past the end of the financial year. And the cash cost guidance obviously ties in with that.

I've also mentioned closure planning so that's really ramped up in Earnest. Uh, we've got a very strong team focused on that. Now 1 of our, our key processing managers is a step down and he's now a full-time in that role Zachs. Um, working through the the, um, the efforts to, to have that plan and all of the estimates in place. And, um, that's something that's as important as how we run the mine as well. We really want to be proud of of setting a great example, in taking the business through to closure.

On the linking downstream in Kunana, I mean, I think maybe my first comment would be that that part of the industry is certainly under enormous pressure. I don't think there's anyone, globally, making much in the way of margins there or, um, enjoying the period we're in.

Live level of confidence in the plan actually achieving sustained, operational Improvement and and cost Improvement given the the, um, the context that they're working in. Um, I want to be clear, though, the team there's no shortage of effort going in. I mean, they're all in, they are working night and day. They're so dedicated to it and

It is a very, very challenging situation for them to work through those issues.

Um, I think beyond that we've given you some guidance for next year. Again, it's a stitch. Um, we we think that's um you know good for now given. Um, given what we see.

Actually, we're continuing, um, to discuss and look at, look at the, the future for the refinery. And what's the best uh, best decisions we can take.

Um, on the financials, I might throw to cast to just give you a few key reflections.

We've had solid results. Deliver

Students have been implemented as well as catch-up sales at Nova, which contributed to higher aid, but are at $59 million. There's also a positive contribution in our AA from our listed investment portfolio this quarter.

Um, and underlying free cash flow remains positive, albeit down from last quarter when we had the inclusion of a final tax.

refund During the period.

This reflects the quality of Nova operations, um, even as it comes to the end of its life.

The balance sheet remains strong, with $280 million in cash and $300 million available from debt facilities, which we resized and extended during the quarter.

Um, as part of our year-end procedures, we've earmarked that we're still working on impairments and rehabilitation provision. And we've provided some information in our quarterly to help you with the estimate of the impact of this.

Based on as Ivan has said based on igi's assessment of the refiner um Kona Refinery, we anticipate and impairing the full amount of this asset and the change from last um or the half year is mainly about the forward. Look on commodity prices and to the like,

Um I think that's the financial summary item. Thanks guys. Yeah we can we can dive into it more in the Q&A um as we get into it, look on corporate updates. I won't spend long on on this slide. We can pick up anything in questions. There's a note on our debt facility in Capital Management framework. I think, um, what you, you'll see there where they're going in, the details is just some real Prudence. Congratulations to the team for stepping through that change and, and resetting our debt facility on a, on a forward-looking basis. Um, it's not

It's not something that we we depend on, but it's it's really just Prudence to have that in place and and give us that um that liquidity and flexibility uh the forest change transaction. Got a couple of comments that's a work in progress working really well with Medallion to to to finalize things there. And um, I think the teams, you know,

They said they're working well together. There's lots to think through. Um, it's a complex transaction given the history at that site and just making sure that...

We've, uh, we've gone through all the elements.

Uh, and then on expiration, there's a bit of an update in our quarterly. Again, I won't run through all the details; I think.

Summary points is obviously. We've made the transformation and change in the organization and that's now stabilizing and the teams really finding their feet, which is great to see. Secondly, the ra rationalization of the portfolio is well progressed. Um, we've actually completed rehab in the uh Fraser Range region which is fabulous again all credit to the team that just done that. Such a great job, there the Patterson. We're pretty much wound down as well. And we went out of a number of JVS. As you've seen, we are focused on a forward-looking basis on several areas, uh, which have lithium potential, and we're very excited about those. I think we've got very respective ground, but that's all work to come and the generative.

The team is out looking for the next areas to focus on, and their primary orientation is copper. As we signposted, I guess you've understood that we think that it's more likely to be outside of Australia than inside Australia.

So, just a couple of points on expiration.

With that, I might stop, and we can jump into some Q&A, and then come back and pick up any other points.

Books. I remind participants to please limit themselves to asking 2 questions at a time. To ask further questions, you may rejoin the queue. Your first question comes from Tim Hof from Canaccord. Please go ahead.

Hey James, thanks for the question. Um, just around CGP 3 and the ramp up their, uh, March quarter. I guess you pointed to first concentrate at the end of the year. This quarterly report you've seen first, or, um, is concentrate still expected this year? Or is that likely to be a first quarter next year thing?

Ah, look, yeah. Tim, I haven't got a detailed plan in terms of that early stage. I think what we...

What we're pointing to or sort of relying on is that they'll get all through it by the end of the year. And then, you know, it's going to be a question of how long that first stage, um, pro processing, when we move from wet to dry commissioning. Um, that's from dry to wet, at least, and start to ramp up.

Um, what we can do is, once we've got more detail and work that through with our JV partners, is give you an indication of what we think that ramp-up looks like in the first half of next year.

Okay, so is it fair to say that the guidance doesn't really include too much contribution from CGP Tree? Then.

No, it doesn't. I mean, we think there's some, and as I said, we're stitching guidance. Obviously, the plan is done for the calendar year. We have to take a view on that period, even though that's not complete. And so, you know, we like to make sure our guidance is set with the appropriate risk in mind, and we'll update accordingly.

Yep. And then perhaps um my last question there is just around that the guidance, you know, if if we're having a look at the grade profile does it does it kind of imply. The grade profile is going to be flattish from where we are today, or what it was delivered in the last quarter.

Uh, no, I wouldn't say that. I mean, we actually had a step down in grade you probably have picked up in Q4. Um, it was down a little bit from the first two quarters in Q3.

And it will come back up again. I mean, it is a bit about where we are in the, your body, and as you know, that, um, strip or or push back on that Western Wall of the of the main pit is progressing and as you get down to the floor, you open up higher grade again. Um, overall, you know, I I wouldn't try and read through and, and draw that straight line across at the current grades for the, for the year.

Um, we do expect, um, that.

Through FY26, we will have periods of lower grade, which I think we've allowed for in our plan. But I wouldn't suggest that's the life of mine, you know, or that's where we're headed.

Yep, okay, excellent. Thanks, I'll pass it on.

Thanks Tim.

Thank you. Your next question comes from Daniel Morgan from Baron Joey. Please go ahead.

Uh, hi. Uh, just first question is just on Cabot's and what's embedding guidance for Greenbushes? Uh, you know, how was that set? What is behind that? Uh, I think it's fair to say it was a little bit higher than some of the market were thinking. And, um, what can you say about how we think about the go forward? Um, capital costs or sustaining CapEx or spend on the business? You know, it would strike me that this is a lumpy year, you know? Is it, is it more than just CGP 3? Thank you.

Yes, thanks, Danielle. I sort of shared a few comments in my opening remarks. I can't get into specifics, but in terms of giving you a detailed breakdown, I just want to say that...

The, um, naturally, CGP 3 is, you know, got to be finished in that period. And, um, you know, tailings, um,

Ts4 as an example is there are some some large pieces of non-processed infrastructure that we we we've got to deal with and I guess in terms of the profile um you know we're moving into another stage of expansion of the of the mine and um you've obviously seen some of the media and commentary around approvals for that and as you can imagine um as we expand and grow the mind which is is obviously very exciting and healthy to do that, also comes with um work around our infrastructure and Associated. Um support capital.

And focus. And I think the other piece is capital intensity as well. What we get, and in terms of outcomes, scope for the dollars spent is another area of improvement that I know is targeting.

So I I realize that you, you would all like me to give you much clearer guidance here. It's not something I can do at this point. We'll continue to work that through and maybe as part of the broader optimization we can we can get to a place where the jv's comfortable to talk about. Um a longer forward view on on capex that would allow you to to model that more accurately. But at this point I just can't give you um, the specifics.

Okay, and then uh, thank you. Second question is just relating to debt both in the vehicle that that's, um, the Winfield or greenbushes vehicle and then at the iGo level, um, there's just on the Greenbush is that, you know, obviously the the cash flow is lower than everybody would have liked at this point. Is there any covenants regarding that debt and and and do you need to, um, you know, might there be a capital contribution required from from the JV partners and then somewhat related you've you've changed your debt facility. Uh your revolver and the tenor is lower. Can you just talk about how that process worked with regard to the fact that it can't have shity of dividends coming out of your lithium business? And your nickel business is is winding down. Thank you.

All right, let me, let me cover the first part. And then I'll throw the cats for the second part on, on our iggo space. Because I think what you can see is this, you know, cash, obviously, it's green bushes. Um, their net debt positions, pretty, you know, it's pretty healthy. We want that business geared. The business is generating cash. It will continue to generate cash, um, you know, through the cycle and I think we've got got a pretty good track record there. The, the, um, there's nothing more to see there. I mean, that business is in control and doing a good job, and I think they're well, and truly on top of their debt, um, the flow of evidence through tlea, Tigo is obvious here. Um, a different story and naturally Conan is a drawer on any dividends that come out of, um, green bushes. Um, which again, I think everyone's model and and recognized and obviously, the last step then is for money to come out to to to iggo. Um, do you want to maybe talk cast to the change in the facilities, the update?

Yeah, so from the facility perspective, um we're about 12 months coming uh heading out to options and various things. We're a very different business now than we were in. Um, when we originally had that debt facility and if you recall, we um converted some of the fixed term to revolver. At the time, we stepped back, had a look at everything um, from our business perspective and our strategy, and we determined from a balance.

The having a facility is $300 million was more appropriate for the nature of our business right now. And obviously there's a balancing act between, um, you know, the cost of a facility and having it there versus the size of the facility. We're very comfortable with what liquidity that gives us. And obviously, um,

We also revisited our capital management program and reset our liquidity targets, which is again an indication of the shape of our business today versus when we set those things 2 to 3 years ago.

And so I don't, you know, there's nothing there. We've got concern about, there's no.

sort of watch points for us. Um, of course, you know, the, the flow of evidence out of tlea is of interest to us, um, as it is to all of our shareholders and we're working on that obviously, um, you know, as continue to focus on the performance of green bushes and um, reducing and minimizing and, you know, obviously targeting that that cash burn on corner. So that's all in Focus. But we've, we've taken all that into account. We've run the scenarios. We've got, I think a very good forward view on on what the world looks like under a range of scenarios. And we, we're very comfortable with our balance sheet and our cash or general liquidity, I guess but certainly our cash holding as well.

Thanks for your perspectives, Ivan and C.

Thanks Danielle.

Thank you. Your next question.

Uh, morning, Ivan and team. Just a quick question on the capture management. I can see that the threshold has been lowered from $1 billion to $0.5 billion. Um, just trying to understand, does that um, you know, indicate the company's thinking in terms of balancing growth and returns?

Also, the second part of the question is: is that new threshold applicable for the past six months? Thank you.

Let me just cover the first bit of that, and then I'll throw the cast for a bit more detail. But look, we've I think we're not pivoted to shareholder returns that's where we've been and always have and always will be, um, I think our Capital Management framework sets that out and that's clear priority for me. Um, and I think the board I'm speaking for them. I mean, they're they're right behind that we have uh as you know, paid out significant dividends in the last um 5 years or so, as a business and um we see some, you know, good recovery in the markets that's going to flow straight through as well. That's not what this was about. I'll let Cass speak again to the change in our head.

Um, no, it was really looking at our business as it is today versus what it was 2 to 3 years ago. Um, and so if you think about iggo today, we've got an over its generating good good cash for the next, um, 18 months or so. And but a billion dollar liquidity for what we are today with a right side. Um, and Discovery focused expiration team, um, mining, um, operation. That's coming to the end of its life. And and therefore, we brought the liquidity threshold down to to match what our business is. I don't think it's any more complicated than than that to be perfectly honest. And just um, you know,

Backing up Ivan's comment, there it was 20% to 40% when under $1 billion. It still stayed at 20% to 40% under $500 million. So we haven't actually changed the shareholder return section of that, apart from that threshold.

Okay, thank you.

Your next question comes from Matthew Freedman from MSG Financial. Please go ahead.

Sure. Thanks. Morning, Ivan and Cass. Um,

Couple from me. Can I ask the first question? Uh again on cgp 3 production. Sorry, green, Bush's production Guidance with with respect to cgp 3, ramp up in particular and understanding. There's some apparent conservatism in there. Um, I guess as you've alluded to because you just haven't set the numbers yet within the JV for the, for the first half of next year. Uh, I'm wondering if there if there's any degree in that to, which it's reflective of the jv's current thinking on how aggressively that that that you want to actually ramp up that asset particularly in new asset in the current market. Um, you know clearly we've got a precedent there in terms of how cgp to ramp up with handled. So yeah, the question is, is there a desire there in in, in sort of setting that green bushes going into next year? Is there any desire in there to to manage the market conditions? Thanks.

Yeah, thanks, Matt. Great question. And, uh, the quick answer is no, that's not reflected in that. That is just our view on a risk-weighted.

Prudent view on how that asset would ramp up. Um, I'm not 1 for overpromising and I think the guidance reflects that um and it's a judgment, obviously there's a lot of things that go into that production guidance. When we're stitching a year that we don't have a full plan for, so we we are naturally cautious. I think we showed in FY 2525 that, you know, we got it pretty, right? And I know there were calls for us to upgrade guidance and we said no we can see through. We think we're going to land just at the top end and that's how we did it. So we we we wanted to continue build trust and confidence that when we give give guidance that it can be relied on and if we see real case to change that ideally upwards of course. We'll, we'll let people know as soon as possible but I think that's where we come from in terms of your part of your question. In, you know, pushing more Supply into an oversupplied Market. I mean, I think we're all aware of that but naturally, the, the tons are that you are creative in this business. It is such a, a high quality mine and

All body and delivers such great returns on every ton we produce.

Of the old body asset first.

Um, production first, and make sure that you're managing that in an optimum manner and not trying to feather or play the market.

Sure, thanks. That's uh, that's pretty clear. So thanks for that Ivan. Um, and then second question and and look apologies in advance. If this comes off, maybe is a little pointed, but it's obviously pretty frustrating to keep having to talk about the poor performance at Kwinana. Um, so if I understand it right, you know, there's 5 board members on the tlea board that includes yourself and Brett and and an independent member as well. Um, as of today, the iGo View at the very least is now that Kwinana is worth nothing. So I guess I guess the question is that, you know, as a director of TLA, how can you continue extending shareholder? Loans out to the Quanah subsidiary. When at least internally your view is that that asset is worth noting? How does that meet your duties? As a as a director of Pia? Thanks.

Yeah, good question, Matt. Um, it's not pointed. I think it's a very valid issue that's at hand, um, between the joint venture partners and the board.

I I I don't think it's um, helpful for me to get into it it it much further, um, you know, I think the issues clear and as you can appreciate, there must be different points of view on the future of the asset and of the business. Um you know my focus is

Um, almost entirely on making the best of green bushes. And, you know, we work extremely well without with our partner with the Auntie on that. Um, and and our malov is, of course, is the other partner at Winfield. Um, Talus and team are doing a great job, robs, you know, turned out. And I think stood up a new management team, massive focus and the value to unlock there is enormous, of course, there's a, a, um, impact from the the cash out flow at Cana, which we are conscious of and managing and working through. And those discussions are, are active. The focus is intense. Um, I I realize everyone would love Clarity and detail and guidance. And, you know, there's a lot of, uh, views and support I guess for, for our perspective on this, but it's something we just have to be respectful and work through, you know, in a thoughtful Manner and we're doing that. We also recognized as an operating team at the site that we, we need to care for. They need to operate safely and, um, you know, do do their job.

Under the guidance that we're giving them from the board. So I, um, I'm not trying to.

Um, sort of steering away from your point. It's well made. I agree with it, and those issues are in front of us, and we're working through them.

Yeah, I understand, and thanks for your views there.

Thank you.

Please go ahead.

Uh, hi Ivan and team. Thanks for the call. Um, first one’s just on the capex, uh, on CB3. Can you remind me, post-acquisition or post having the stake in Greenbushes, um, how much has the joint venture spent on CGP 3 cumulatively, uh, to date? Including, um, next year's guidance, please. Thanks.

Yeah, roll out. I mean I don't have that number. It's not something we we disclosed on the um on a sort of run rate basis, we did give an update

I think it was October. Yeah, um, cost nodding so you could reference that, but we don’t sort of give you a track on spending against that.

Okay, well, I was just trying to understand sort of what we should think about CGP 4 on the back of that. And then also, given that at the time of acquisition that spend was supposed to be around $300 million, and then I think that went up to $550 million. The last time I heard of it, I just wanted to see sort of how we're tracking in terms of the budgets that were set at the site.

Yeah, just to help you know, forecasting some of the capex to come in future periods. Okay?

At this point, we don't provide guidance on that sort of growth, capex, and growth strategy, which is sort of well out into the future.

Naturally, CGP 4 remains an option—something that we'll assess and consider. We'll look at the business case for it. There's been a bunch of thinking and work done on it, but it's not at a point where we're, um, folding it into guidance or direction that we can give you.

Um, I mean, I think your observation on the escalation in capex across the board is well made, and I think that's industry-wide.

What I would add to it is I equally bring, while we recognize that and feel very uncomfortable with it, a huge focus personally on.

We've got a long-life asset, and we need to think about productive assets and getting the best value from them. Um, at a business like Greenbushes, but equally, we need to make sure we're really spending money wisely there, and the capex intensity, I think, needs.

Laser focus—it's getting more and more of that with Rob. I feel like he's brought a real step change in the culture and the mindset there in the senior team. But there's still work to do to think that through and then how that translates into the way that we scope and design a new plant and set the right balance on capex intensity against the long-term value for that asset in the business. It needs a bunch of work. So, I mean, all that said, I don't have numbers; I can't really give you a guide because we're not in a position to do that. But, um, what I want to do is leave you with confidence that...

That next stage of investment when that comes up. And when we're contemplating that in the, in the life of mine and in the optimization of green bushes as a whole, we will have a very intense focus on Capital intensity to make sure that we're getting the best out of it. Regardless of the kind of massive returns, you get from any increase in production. I'm sure you can run the numbers in the spreadsheet. That doesn't excuse us from, um, from just spending more than we should on it. Um, and, you know, I think cgb 3 came through at a different time and, and was probably signed off with with a different context, or

Side with different levels of escalation in CAPEX through that period in the industry.

No, that's a point. Well, mate, thanks. Thanks for that. Look, the second question is more around.

You've talked about how you've set your guidance. Um, today, I mean in relation to CDP 3, but then in terms of the broader business and, um, you know, having to stitch up that guidance. Um, I just want to touch a bit upon that, just because.

I mean, your, your significant shareholders in the pro project and and you obviously got a different reporting period, how much input are you getting from from your partners in being able to set this guidance up? And if

That input isn't, uh, I guess, enough for you to have, you know, a high level of certainty with that guidance. Doesn't it warrant switching to maybe a calendar year reporting cycle?

I'll let—that's a good question. I'll let Cassie answer that one.

We actually have looked at that in the past in the complexity, around changing reporting years is is not as easy as it sounds. There's tax implications. There's um, accounting implications and and all the rest of it, but I I do think that it is a really good question and we should continue to challenge that based on where we are as a business. So, um, I at the point in which we looked at the which um, I think it was about 12 to

Eighteen months ago, um, it didn't make sense, but I will endeavor to reopen that and revisit that as we should.

And I guess, the first part of the question really was about how much support you're getting from from your partners, in terms of helping you set that guidance, right? I mean, yeah, you are significant shareholders, you're on the board. Um, so so so why not have a, you know, a bit more of a dedicated process, um, to being able for you guys to be able to guide to the market.

Yeah. Look I I was about to pick that up at the end. I just just seem to have to deal with the more complicated question around our accounting period. I mean, look the team are very forthcoming and helpful. Very engaging. There's nothing held back there. It's just obviously, when you're still planning a mine year to year and you haven't done the life of mine optimization or haven't finished that work, to get that full view to have greater confidence in um, the sequence. Um, confidence in spatial compliance. I can go on and on, you know, as we get more maturity in the way that that business is run. I think this is going to get a lot easier. The other challenge is, obviously, the step change. We're making in the way that we think about Capital, um, I believe, Rob has brought quite a different mindset to that, um, his focus on where we spend it, and how we spend it and the value we get for it is Shifting and, and, and, uh, rolling through the business. Um, we have team members, who sit on the capital committee and spend

Prudent. And then as we build up that, um, that broader connection and that confidence in the performance of the business and the reliability of their...

Their outer plans, um, that'll give us a basis to give better, um, indications here to the market. The last point I'd make is.

You know, we still work here. The year— I realize you haven't had any real update to the overall model for a long time, and that's something that we recognize would be helpful. And that's something we'll talk through with the JV Partners to just help people understand what that runway for the business is. And that comes off the back of the optimization work that Rob's doing. As he gets that full view, it'll give him the ability to give us that big picture and do it with some real confidence.

Uh, that's very fair. Thank you very much. I'll pass it on.

Thank you. Your next question comes from Levi, a analyst at UBS. Please go ahead.

Good day team. Oh, sorry. It's probably as a a name issue. Um, but um, I just wanted to follow up on some of the port congestion issues that we saw from the first half of the year, which is seems to have further resolved over the fourth quarter with a bit of a catch up in sales.

Just checking that there's nothing to sort of be wary of regarding sort of, underlying logistical capacities or issues sort of moving forward. Um, you know, and and particularly noting with higher volumes from cgp 3 later on, um, and and and just what that sort of means for cash flow timing.

Uh, look, quick answers. I know you're always going to have periods that are more or less productive. I think every port facility I've been involved with, either operated or drawn on that capacity, I've seen these issues. It's pretty normal.

I know Rob is working to improve productivity and improve the interface and the logistics which gives us more Comfort, um, that we won't experience delays or, or impacts, um, ultimately that we've got a pretty good inventory, buffer in, in the system at Green bushes. So it doesn't really create a lot of concern, other than working capital, which naturally we we we try and manage closely. But no, there's nothing more fundamental than that. It's just, you know, the normal worker, getting the ship slider and getting them out, and

Managing the the flow. There, there are other users of that Port facility and naturally. There's, you know, there's points where you can just have a point of congestion or Peak Peak demand that can create some of those channels.

Thank you for that. Um, and just, just a quick second 1, if I can, um, relating to the lithium industry Support Program. Um, you know, you you sort of noted that there was continued, um, benefit uh, rebate, during the quarter is their ongoing support in in FY 26 and and just sort of uh the the Quantum of of that that you expect

Yeah, there is. And look, thanks to the West Australian government for their support and encouragement and, um, thinking about the whole industry. So we do benefit from that in TLEA, and that's very welcome. I can't disclose specifics, but it's, um, it's really quite material. I mean, I think they deserve a lot of credit for showing the commitment they have across the industry, supporting lithium and recognizing its future as a part of the West Australian mining industry.

Thanks, Evan and team. I'll pass it on.

Thank you.

Thank you. Your next question comes from Hugo Nicolai from Goldman Sachs. Please go ahead.

So, I can entertain just the first one for me. Green. Bushes on your cost guidance. How much of anything are you allowed for CGP 3? Wrap-up spent in F4: 26.

To see that mine productivity just stepping up each quarter.

Got it. Thanks for the live update. I'm in the second quarter at Quanah. What is the guided capex and tail? Do you envision needing to spend more than what you've guided before 2026, into 2027, to get to that target of 90% utilization?

Yeah. There’s, you know, further modification to the plant anticipated in that CapEx. There is some sustaining CapEx, a small part as well. But, you know, the majority of that guidance reflects intended modifications and improvements to the plant to increase its ability to meet nameplate.

Um, and so naturally, that's guidance, and we'll treat that with, um, a lot of scrutiny and make sure that any money that is committed to spend wisely.

Part of a broader set of challenges that asset.

That may be another way. I mean, you sort of have 50 reaching periods at 50% utilization. What does the FY2 spend get you closer to on your budgeting?

Yeah, it's not something I can give you. Unfortunately, you go.

Um, I think there's probably more fundamental issues than that anyway, but.

Um, yeah, I'm sorry, I'm not able to give you the specifics on that. We've given you guidance on production, which implies a level of ramp-up.

no problem.

Look forward to future updates. Thank you for calling.

Thank you.

Thank you.

Yeah. Hi, Ivan and team. Um, you know, I'm not sure if you've covered these questions before as I've jumped on a little bit later than usual. So, apologies if you have. But I was just wondering about the grade—was it a lower grade in Q4? Um, a one-off? I know the result wasn't far off the reserve grade, but it was lower than most expected. And should we assume softer grades in the first half or the first quarter going forward? Thanks.

Yeah, thanks Sean. No problem. We, we we touched on it, but it's no problem to sort of just broaden that out. I mean, it it was lower, um, you know, as a function of a number of factors, some of which was just unseasonable weather. They had a very, very wet period in June, which, of course, affects some or sometimes affects access to ore and so on. So you got a number of things that impact it. It is also going to swing like, any mine through the year, the grades available. We think overall grade will be a bit lower in 26, um, on average. But not, you know, not materially. And I actually said, look, don't take this into a straight line across, so don't

That's helpful or or or useful guidance, um, in terms of what the team's expecting, um, they they naturally working down to open up some very attractive parts of your body and they just going to try and manage that in a in a more and more optimized way as they go and um, open up this business and drive the productivity of mind.

Okay, thanks and just uh, a quick. Uh, another question, just with green bushes, it remains cash generative, um, even in the, uh, current pricing environment. Just interested is in your view is the Mind plan being sequenced to, you know, potentially preserve high grade or or maximize margins. Um, and volumes when price is recover recover, uh, just, um, interested in how you're thinking about managing that trade-off in this part of the cycle.

No. I mean, the, um, that's a big operation and growing, and we all optimized it holistically. And that means for a stable production plan, it doesn't mean to sort of try and...

Focus on high-grade material or try and play to that. It's just not something we need to do or should do, and ultimately you will, in the performance of time, destroy value doing that. So now we very much want to make sure that we're thinking long term.

What what Rob is doing is actually lifting everyone's eyes and actually extending that Horizon even further which is great. And I I know that's going to translate to downward pressure on on costs in that aspect as he goes.

Off me deliver better returns naturally. You know, um, we all want to see the price increase, but the value that we get out of every time today is still extraordinary and, um,

It's just continuing, or we control which is the cost and driving them down. Is that where we're at? Where we've got it focused?

Okay, thank you.

Thank you.

Unfortunately, that does conclude our time for questions. I'll now hand it back to Mr. Bella for closing remarks.

Great. Thank you. Uh,

This, I'll probably talk too long on a couple of those answers. I mean, just to wrap up, I want to go back to the operational and safety improvements across parts of the business. I've talked to—really encouraging to see that.

Particularly at Nova. So congratulations to the team at Greenbushes. What a stellar asset that continues to deliver outstanding margins right through the cycle. There is lots of work ahead as we optimize that business and drive productivity. I think the scope for upside is enormous, but we really need to backtrack and work closely with Rob and the team. I believe the JB partners are all very aligned in doing that work to get the very best out of Greenbushes and make sure we maximize value there.

We've got a clear pathway to the end of life for Nova set out the guidance and we see cash flow generation through that period reasonably flat production. There will be some ups and downs as you'd expect with great and Stokes and so on. But we've got we've got a tight plan looking forward on that. And then we, you know, we continue to look at the future of the business and growth. And um, I think we've made a few made a few comments around, expiration. It's exciting work. There will continue to be very prudent and thoughtful and disciplined about how we allocate funds outside of, um, the core of our business and um, naturally that includes focusing very hard on the cash burn at Cana. So make sure that um we're addressing that as quickly as possible and give everyone

Cleave you on the world-class assets at Greenbushes.

So with that, we'll wrap it up. Hope everyone has a good day. I'm sure it's busy for you all with all the different companies reporting. Thanks for joining.

That does conclude our conference for today. Thank you for participating. You may now disconnect.