Q2 2025 OceanaGold Corp Earnings Call
Good morning, ladies and gentlemen, welcome to achan Gold Corporation, Q2 2025 earnings conference call at this time. All lines are now listen, only mode following the presentation, we will conduct a question and answer session. If at any time during this, call, you require immediate assistance, please press star zero for the operator. This call is being recorded on Thursday, August 7th, 2025, I would now like to turn the conference over to Haley mayor's. Please go ahead.
Thank you. Good morning, everyone. And welcome to oceanana Gold's second quarter, 2025, operating, and financial results, webcast and conference call.
I'm Haley mayor's vice president of investor relations.
We are joined today by Jared Bond president and chief executive officer. Maria, bani Kirk Chief Financial Officer bhuvanesh, Malhotra Chief, Technical and project officer.
And Peter Sharpe Chief Operating Officer. Asia Pacific.
The presentation that will be referencing during the conference call, is available through the webcast and on our website.
I would also like to remind everyone that our presentation will be followed by a Q&A session. As we will be making forward-looking statements during the call. Please refer to the cautionary notes during the presentation news, release and mdna, as well as the risk factor set out in our annual information form.
All dollar amounts discussed in this conference call are in US dollars.
I'll now turn the call over to Jared for opening remarks.
Thank you, Haley and good morning everyone.
I'm really pleased with our strong performances quarter with our continued, solid execution, keeping us, well, positioned to deliver on our 4-year guidance.
Most importantly, the second quarter was another safe quarter for oceanana gold. A key safety programs have helped keep our people safe, which remains of the number 1 priority within our business every single day.
We achieved a solid production and cost performance in line with our 4 year guidance. This drove record, net profit record, earnings per share and strong. Free cash flow, which will all well ahead of Market expectations.
As a fully unhedged gold producer with no gold price, Hedges or prepay agreements. We also continue to benefit from substantial upside in today's favorable, gold price environment. Most of the gain in record, average realized gold price was converted to free cash flow where we delivered yet another strong quarter of 120 million.
This has resulted in a distinctly High free cash flow yield of 18% on a trailing 12-month basis, which I will speak to you later uh in a later slide.
An increase our cash position by 31% from last quarter, finishing the quarter with approximately million dollars in cash.
Open pit waste, dripping investment is advancing as planned at hail LED better 3 and mccrae's inner Mills 8 setting us up for both a strong fourth quarter this year and a strong 2026 as we unlock access to the next All Phases, at our 2 largest sites.
During the quarter, we also made significant progress on our organic growth opportunities at the permitting application. The Whyte North project in New Zealand is advancing through the process, and we continue to expect approval by the end of this year.
And for those of you who may have missed it, the Fraser institute's recently released investment attractiveness index for Global mining recorded, a step change Improvement by New Zealand. And the Philippines has placed for mining companies to invest in operating.
Specifically New Zealand's moved up to 12th Place out of 82 jurisdictions, which puts it above every state in Australia up from 43. Positioned last year, the Philippines has risen to 16th from 772
This is testimony to the Improvement in government policy and support of the mining industry in those 2 countries, which is appreciated by us and our shareholders. Given our growth options in both countries,
Consistent with our disciplined Capital allocation framework. I'm pleased to note that we're able to continue to fund our growth and expiration projects. Maintained, a very strong balance sheet, pay a dividend at our recently, increased level. And on top of this continued to make Sherry purchases during the quarter and we expect to continue to do so throughout the remainder of the year. And Beyond, with our recently, renewed and expanded buyback program.
We continue to advance towards our goal of listing on the New York Stock Exchange in the first half of 2026, having now completed the share consolidation during the quarter.
We're of the view that a New York Stock Exchange listing, will provide enhanced trading liquidity and access to a wide range of potential investors, both of which will benefit existing oceanana golf shareholders.
Widening, the lens. I want to highlight just how well, we are generating a return on Capital.
Over the last 12 months, we've delivered 401 million dollars of free cash flow, which represents a free cash flow yield of approximately 18% on our average market capitalization over the same period.
And they're rolling 12-month return. On Capital employed has continued its upwards trajectory this quarter sitting at 15% over the last 12 months.
Both of these metrics, reflect that, we're converting the strong goal. Price to the bottom line, generating, strong returns and deploying Capital effectively.
Both these ratios compare, very favorably to our peers and show the value in our stock.
Looking forward to, we remain well on track to meet our 2025 full year guys.
On a year-to-date basis. Our Consolidated goal production is around the midpoint of our guidance range.
While our AISC performance is tracking towards the lower end of our guidance range.
The second half of the year. We continue to expect strong performance. Across all Sites with a particularly strong fourth quarter from both hail and McCrae.
Total capital investment is expected to be in line with guidance. Sustaining capital is expected to be higher in the second half of the Year. Mainly relating to open pit stripping and infrastructure investment.
In summary, we are pleased with the strong performance in the first half of 2025, and looking forward. We remain confident and well, positioned to achieve our fully guidance for production cost and capex.
I'll now turn the call after Mars who will discuss our financial results in more detail.
Thank you, Jared and good morning everyone.
During a quarter, our strong operational performance generated a record revenue of 432 million
supported by a record average realized call price of just under 3,300 pounds.
I'm very pleased to report that we had some more notable achievements this quarter, including a record, net profit of 18 million.
And a record EPS of 49 cents with adjusted EPA sets 51 cents.
We also achieved a strong free cash flow of 120 million.
In ebit D of 2007 million.
And an operating cash flow per share of 99 Cents which were all second highest on record.
While increasing our cash balance to 299 million.
These results highlight our Keen focus on maintaining strong margins and continuing to focus on shareholder value.
With our increasingly robust financial position. We have the flexibility to continue to fund. Our exciting organic growth opportunities and return Capital to our shareholders.
We will do this via our recently, increased dividend and our active share buyback program.
Over the past few years, we've solidified our financial position.
Systematically applying our growing free cash flow to reduce debts and build a robust and resilient balance sheet.
In addition, to maintaining our quarterly dividends, we brought back, 21 million of shares in the second quarter and an average price equivalent to $17.52 Canadian per share.
Bringing total BuyBacks to 41 million year to date.
With 100 million dollars in share. BuyBacks approved for 2025, we expect to buy back an additional 59 million of dollars of shares by year end.
To get it with the recently increased dividends, we are demonstrating our clear commitment to delivering capital returns to our shareholders while keeping our balance sheet strong and funding our growth projects.
I'll now pass it over to bhuvanesh to discuss H's performance.
Thank you, Maurice. And hello, everyone.
We achieved strong second quarter gold production at hail of around 48,000 Oz.
Production was stronger than planned due to Greater proportion of higher grade lead, better Phase 2 or being processed, during the quarter.
We are expecting a higher proportion of lower rate, stockpile material to be processed, in Q3 before we return to fresh or from lead better phase 3 in quarter, 4 with fourth quarter production levels, expected to be similar to the first quarter positioning us. Well, to achieve our full year guidance,
Second quarter all in sustaining cost was 1,890 per ounce, which was below the angle guidance range.
we maintain our all-in sustaining outlook for the year, as we expect cost to Trend upward in the third quarter in line with Peak stripping and sustaining capital investment before decreasing in the fourth quarter when we have access to lead better phase 3 0,
A bit of phase, 4 trade-off study work continues to progress. Well, we expect to release an updated knee. 4311 technical report in early 2026 with the result of this work which will Define our path forward for this attractive opportunity.
We also remain excited about the exploration of opportunities at Health drilling continued in the 4 in the quarter, at both at Horseshoe underground and at the new peers Discovery and will continue to explore this and other surface targets throughout the remainder of 2025.
I will now turn the call over to Peter to discuss the Asia Pacific operations.
Thank you, banished, and good morning everyone.
What are the DPI delivered? Increased goal production of approximately 25,000 ounces and copper production of 3,700. Tons with good progress made year to date on underground, dewatering and increasing, all tons of mine from underground. We expect to meet our full year guidance.
We continue to expect Capital returns to increase in the second half of the year. As we invest to support our growth. We planned investment in underground pumping infrastructure, ongoing lifts to the tailing storage facility and growth capital in support of the underground optimization.
These investments in growth position us, well, to maximize our future opportunities.
We're also making good progress and remain on track to reach our targeted underground. Mining rate of 2.5 million ton perum by the end of 2026.
We plan to release an updated technical report in the first half of 2026, outlining this plan.
We remain excited about our exploration opportunities, both near the mine, and regionally with ongoing, drilling at multiple times to continue throughout the remainder of the year.
We have been drilling a true blue. This quarter and are now back drilling at napolin both of which
Exploration opportunities.
This quarter McCrae delivered, improved gold production of 30,000 Oz.
Our stripping efforts were predominantly concentrated on open pit. Waste mining at inis Mills 8, which resulted in a higher proportion of lower grade, stock piles being processed during the quarter.
Go recoveries in the quarter which reflect the impact of our continuous Improvement. Initiatives driven by our processing plan employees at McCrae.
As we move through the year, we expect inner spills 8 to deliver access to higher grade or for the fourth quarter, and drive a strong finish to the year for production and costs, positioning us. Well to meet our guidance.
We remain very excited about our potential opportunities to unlock value at McCrae.
We are continuing to evaluate the many options, we have to extend the my life given to today's high goal price environment.
By leveraging, the value of its industry-leading, low mining unit costs and expect to share more with the market early next year on this potential.
Why he delivered strong production of just over 17,000 oz of gold in the quarter.
maintaining the progress achieved with the underground Improvement, plan initiated in the first half of 2024,
This marks the third consecutive quarter of stronger performance at Hawaii, which is a testament to all the hard work done by the team there. And this is really great to see.
I'll now hand it over to Born to talk about the why he North project.
Thank you, Peter.
A FasTrak application for the wahi node project progressed in the quarter, our expectation remains that we will be permitted by year end and will be able to start the underground decline towards FICA ranga in 2026.
Early work activities continue to progress to plan with the award of the services trench contract work on the expanded, water treatment plant and additional detailed design work. Occurring this coda
We are on track to spend our guided 45 million this year, so that the project is ready to start in Earnest. When we receive that approval,
During the quarter, we also announced an extension of the strike at the high rate for a panga deposit which continues to demonstrate its upside potential.
As part of our Fast Track application. We also seeking approval to increase the number of drill sites and double the number of drill Rigs, and enhancing our flexibility and accelerating efforts to Define this exciting deposit.
Further exploration drilling at why he is focused on resource definition. Expansion of the Mata underground and expansion of the ficare pawns are deposits.
With improved underground performance at Martha underground and solid progress on permitting at Huawei North. We remain. Very excited about why his future
I will now turn the call back to Jared.
Uh, thank you Peter and thank you bhuvanesh.
With our results, we also announced some management changes.
Firstly, I'm pleased to announce the appointment of Kenan Jennings as our new Chief exploration officer who will be succeeding Craig febri at the end of September this year.
Keenan brings over 35 years of Global Experience in Mineral exploration and executive leadership, having held senior exploration roles at BHP, Rio Tinto, and anglo-american and having delivered. Some major discoveries in that time.
Keen succeeds. Craig feebrey following Craig's decision to retire at the end of September.
Craig has been with oceanana golf for almost 10 years and in that time has led a dedicated and successful team establishing a long track record of adding Reserve bounces at an industry-leading, low cost per ounce
We thank Craig for his tremendous contribution to our company, his leadership, and his contribution to our culture, and we wish him all the very best in his well-earned retirement.
We also announced that Peter Sharpe Chief Operating Officer. Asia Pacific is leaving knowin and gold, at the end of September to pursue opportunities outside of the gold industry.
I've worked with Peter for many years including prior to oana gold and have always valued and respected, his care for people drive for poor performance and high integrity. I thank him for his outstanding contribution to Ocean of gold, being an effective and popular leader. He will be missed by many including myself, but I wish him all the very best in the next chapter of his career.
Peter's departure, has allowed us to create a single Chief Operating Officer role. This role will be filled by Bubba mehrotra our current chief Technical and projects officer who is already responsible for hail.
Vines has been with the company, since early 2024, and has over 25 years of experience in operational, and Technical roles across multiple Commodities and Mining methods.
He has shown that he's capable of driving safety performance, operational excellence and sustainable, transformational change.
He's very well positioned to do a great job in this role as our new Chief Operating Officer.
For their outstanding contribution to our company in which them both the very best in the future.
In summary, this was yet another strong quarter for oan and gold.
We safely and responsibly delivered record, net profit record, earnings per share and substantial free cash flow.
We are well on track to meet our full year, guidance, and Elaine the groundwork, this year for continued, strong production growth in 2026.
A balance sheet is in excellent shape with 300 million in cash, and no debt. We have no gold Hedges. No gold prepays. Inuring, we fully benefit from this high gold price environment.
And we remain focused on our disciplined Capital, allocation strategy, being able to internally fund our growth projects and expiration, increase our dividend and continue returning Capital to shareholders through our share buyback program.
All of this is possible through the dedicated efforts of the many, tremendous people who work at oceanana goals and a big call out of thanks to them for all of that.
I'll now turn the call over to the operator and open up the lines to take any questions.
Thank you. And ladies and gentlemen, we will now begin the question and answer
To ask a question. You may press a star, followed by the number 1 on your telephone keypad. If you're using a speaker phone, the speaker of your handset before pressing any keys to withdraw your question. Please press star followed by the number 2 and with that. Our first question comes from the line of Ahab with the Scotia Bank. Please go ahead.
Thanks operator. Hi Gerard and OSHA gold team, uh, congrats to you and your team on a solid quarter and and really great to see hail continuing to our performance. Uh, Jared a couple of questions from me, uh number 1, just sticking with hail um hail had a, a good quarter uh despite all the stripping that you're doing at lead better. Um, is this tripling still on track and and how should we be looking at Q3 and just second part to that is. Uh, do you still have uh, some high-grade stock files on site that you could process in uh, into Q3 as well?
Yeah, thanks. Eva, is it? It was a great quarter and and we're really pleased with it. Um, hail had a, a, a good quarter as you noticed. Um, as Ben has said he this was powered by um, the grade that we were able to process from lead better 2 in the quarter. Uh this to your question, the stripping is on track um and but Q3 we expect to be the uh least strong quarter of the year uh because we will primarily be released
Line on lower grade stock piles, uh, in the stripping as I said, Is On Track and we gain access uh to lead better States 3 in, uh, the fourth quarter. And that's why we also expect the fourth quarter of the year to be our strongest quarter of the year, at hail, uh, so hail again, to to shape it. Uh, we said that it's it's on track to meet its full year guidance. Um, it's well on track to halfway Market year. Uh, the fourth quarter will be the strongest, which means the third quarter will be the softest.
Got it. Thanks for the call on that and just, uh, moving to dipo. Um, looking into Q2 or mine grade uh pretty much. Everything's all improved uh quarter of a quarter. Um are the underground water issues. You were facing at the do in q1 kind of behind us.
Yeah. Thanks have some might take that. Um, so look, uh, the the work that we're doing on the Underground dewatering progressing really. Well, you know, we're looking at it in 2 phases, which is really the immediate work and pumping out the decline and getting back down, um, into those lower lower levels. Um, that plan, um, had a scheduled completing that work where around September, so we're on schedule, if not slightly in front. Um, but then, you know, in addition, in parallel, we're also looking at Future proofing, you know, what additional, um, pumping capacity, we need to have in store, what infrastructure, um, what additional security around the crown pillar. Um, you know what, what about backup
Um, high voltage Supply, um, you know, buried. So that, you know, we have a little bit more protection. All of that work is progressing really well as well. So, yeah, we're in a really good position heading into the next wet season.
Excellent, thanks for that Peter and Peter. Thanks for all your help over the past couple of years, and, uh, really wishing you all the best, uh, in your next, uh, you know, chapter. Um, guys, that's it for me. Uh, thanks for taking my questions and, uh, congrats again, uh, on a great quarter.
Thanks. Have a great day.
And your next question comes from the line of Fahad. Tariq with Jeffrey, please go ahead.
My question, uh, continuing on the theme of hail, just looking at the mining costs underground. Looks like they declined 9% quarter over quarter, which is good. Um, and then in the MD&A, you mentioned that there's a continued focus on underground operational improvement. Can you maybe expand on that?
how you're getting the the lower costs and
and what kind of improvements are being being achieved?
Sure, we take that. Yeah.
Um, so yeah, the, uh, your right the underground, uh, cost is primarily, uh, driven by the productivity benefits that we have been, uh, making significant inroads into. Uh, we also had access to some high-grade stocks that probably have been, uh, the reason for the underground cost done being down. Um, and the reason for the, uh, the, the additional improvements that we've been talking about, is, to progress the decline further. Uh, so that we can have access to multiple, uh, levels in the multiple drives, so that provides us with both more flexibility and access the hybrid stores.
Okay, thank you.
Thanks a lot.
And your next question comes from the line of Don DeMarco with National Bank, please go ahead.
Thank you, operator. And um,
Good morning, uh, good afternoon, Gerard and team. Um,
So just a couple questions on dipo. I saw the increased door tons Underground on improved access in the lower level.
Is this expected to continue and and with this, you know, with the the higher underground rates is their opportunity to, to reach, maybe 2 and a half million tons per year processing earlier than the end of 2026.
I don't know. So
So yes, uh, I mean, the plan is that we, by the end of 2026, we're actually exiting 2026 at a 2, and a half million ton mining rate. Um, so so that is the plan. Um, and yes, what you're seeing in this quarter is uh, in Improvement and and a continuation of getting access to lower levels, so it actually gives us more flexibility opens up, more mining areas. So we do expect that over Q3 and Q4 we will continue to see the mining rate lift. Um, so you know what? It is an indicator of, you know, obviously the plan that is being executed.
Okay, that's good. And uh, you know, the BuyBacks have been fairly robust.
Are you what about the dividend are you comfortable? With the level that the dividend is at right now?
Uh, thanks Don. I mean in short. Yes, we are. We we just a reminder, we did double it. Um, at the, you know, for the year uh, as we announced in February, so that was the last time we made that decision but uh, it remains an ongoing, uh, choice for the board as as we continue to perform so profitably, uh, and and have such a strong balance sheet.
Okay, great. Well, listen, that's all for me. Congratulations on the strong quarter, and good luck with the rest of Q3. Thank you, Tom. Thanks, appreciate it.
And your next question comes from the line of Harrison Reynolds with RBC Capital markets, please go ahead.
Hey uh good morning everyone and congratulations on another great quarter oceanana team and a and a great first half of the year um just to kind of follow up on on Don's question a little bit.
wondering if you can give us your views on what you're seeing in the the m&a market and how you're viewing those opportunities against your view of of your own share price, and the ongoing BuyBacks
Yeah, thanks Harrison. Um, look, I mean our position hasn't changed, um um, at all over the side, the last 18, 24 months, I mean we have a tremendous organic growth profile in front of us. Um and really in a in our industry, a relatively low-risk organic growth profile because it typically relates to stripping open pets or or
That we've gained access to uh, through a farming um, uh, process that that could again subject to expiration, uh, give us, uh, you know, a new mining, a new mining front there. So we continue to invest in Exploration as well at all of our sites. We have, um, some tremendous land packages that will continue to invest in, uh, but, uh, m&a is, is 1 Avenue of growth? We look, uh, we haven't found anything yet. Um, obviously, because we have an action in anything.
Great. Yeah. Thanks for taking my question and and congratulations. Again it's uh it's great to see another great quarter in the in the books for okay. Thanks. Thank you Harrison.
and once again, if you would like to ask a question, please press star 1 on your telephone keypad,
Your next question comes from the line of Simon Shu with CIBC. Please go ahead.
Hi Jared, it's Simon here. It's actually Cosmos. Um,
but maybe my first question is on the lab better phase 3. Uh, good to hear that pre-. Stripping is going well. Um, but maybe if you can talk about any precautions that you're taking as we sort of enter into Peak care season, uh, in that area of the US,
Because, um, I think I was, I'll have a guy Bes, and then you can fill out anything else. I mean, I think the site shown over recent years that it has become far far, more weather, resilient than say, what? Existed 6 years ago. Um, so you know, we've had hurricanes in in recent years and we have not skipped a beat. Um, you know, there was a big hurricane I think last year and I uh you know I think the uh, everything proceeded, you know, continued do I without interruption. Now obviously people's safety is, what comes first and we make sure that people are not in harm. Uh but through all the works that have been done um, you know, grading drainage um a general resilience Works. Um we haven't been in any way impacted uh as we as you might be, uh, alluding to with that question. Um, moving this, anything else that anything else that I haven't covered?
No, you covered it. Well, thanks, Chad.
I'm just wondering if you if any doctor any kind of buffer into your schedule or or is that not needed?
I'll, um, because we, we, I mean, what 1 of the bits of Buffalo we have now is an underground mind you, you kind of a bit more weather resilient than if you're solely with that on open. It's uh, and but secondly, uh, just a reminder that lead better 3 is a big cut back, right? And 1. And we're not be, we're not going to be in this pit hopping uh uh phases that we have been.
In recent years once we get access to lead better 3 we're into it and with good access to uh higher grade or for an extended period of time. And I think the combination of of uh you know good access to a a um a larger cut back plus the underground makes us a bit more grade resilient than than the mine has been in its history.
Yeah.
And Jerry that leads in well into my next question here you know I see that for 11 or phase 4, you're still undergoing. The study in terms of should this be open pit or underground? Um and that sort of study should come out early 2026. Um can you remind us? You know some of the costs and benefits between uh open pit and underground. What are your considerations and uh if you know let better face board does become underground, you know, into the future. Uh hail would this be a majority underground sort of uh operation or or how does it look?
Um, I will given I interrupted him last time in his aunt so I'll let move this lead off with the the answer.
Thank you, Jude. Um, the cosmos at the there are many advantages, uh, that comes with, uh, the underground. But the trade-off study has to, uh, you know, navigate through those, uh, those challenges and those pros and cons as well. I think, the first 1 obviously is the access to the, or if the, uh, open pit, uh, means that the access to the or is going to be probably in 30s, uh, whereas the access
Just to be underground would be early um as as we're doing the design work of of that of that outcome as well. And the second obvious Advantage is the
Tailing stand.
amount of,
Which will probably, uh, shape, uh, one way or the other.
Great. Uh, maybe Switching gears a little bit here in terms of, um, the guidance, uh, you kind of, you know, talked about this, uh, earlier during the conversation. Um, but putting some numbers to it, uh, your capex budget for the year is 485 to 530 million. I believe you spent about 211 million so far. Um, so 2 questions. Number 1, you know, where is the heavier spending going to be? Is it the stripping or is it the W North that we had talked about maybe if you can kind of summarize it uh for me. And um the second question is, you know all sustaining costs as you mentioned, it is tracking to the lower end of uh 4 year guidance. So far in the first half is that in part 2 to, you know, the lower Catholics that's been spent year to date.
Yeah, thanks Co. I mean the, the stripping, the stripping expenditures are both in praise and the hail is uh, substantial. And in the third quarter, um, and you'll see that uh uh lift the stripping capex but also lift the oil in sustaining costs because that's where it goes. Uh, and you'll also notice in the numbers that that the DPO is probably the in terms of a run rate year to date the the largest under spender of of its full year. Capital guidance, would you expect it to spend? And and that a lot of that is going to be uh, in relation to the work that Peter.
Mentioned in in his commentary about, you know, once we get access now that we went as and when we get planned access to the, uh, um, lower depths of the underground mine, you know, rehab Works. Um, um, uh, additional pumping capacity to make that weather proof in the future and and other Associated Works to make the mind more resilient and also achieve its Pathway to to 2.5 million tons per Anam. So that that is uh um, what what's going? The the 2 primary drivers of the uptick in the second half.
Right? And then and then the answer is steam in class. I guess the answer is yes that you know in part it's training to the lower end of for your guidance because of the lower capex so far.
Yeah, yeah, correct. And and that's, that's why. Yeah, we we, we we, we maintain the guidance and you should particularly in the fourth, the fourth quarter should be a good quarter. But the third quarter will be a soft quarter because you're going to have the lowest uh, denominator as well. In in terms of sales, of course.
Yeah. Yeah. And then the 1 last question uh you know Jared great to see the strong balance sheet, great to see the the strong free cash flow and um, you know, great to see a good quarter and that's been now reflected in the share price up, uh, almost 12% at 1.11% now. Um, but with the increase in the share price, uh, does that impact your shared value back in any way? It doesn't sound like it, um, but I just want to make sure, you know, the higher share price, uh, more expensive.
Paper, does that impact your plans in terms of your share BuyBacks?
So, as a, um, ultimately, we do have a, a, an eye to Value when we, when we buy it. But, you know, value, um, you know, can can be looked at through multiple lenses, right. So we, uh, a lot of that value depends on which gold price. Assumption is the people use. Um, but, but again, I point to those free cash flow, uh, yields and the return on Capital, we, you know, we we still relative to peers uh, are undervalued. It's a, a, a good and preferred means of returning Capital to shareholders. Um, you know, we've had great success with it today. Um, and, uh, yeah, we we still intend to do so, but, yes, we are mindful of value, uh, when we do so,
Great thanks. Uh Jared. Oh the best Peter and congratulations bhuvanesh. And those are the questions I have.
thank you, co
And your next question comes from the line of Jeremy Hoy with K genuity. Please go ahead.
And see you. Thanks for taking my questions.
Just a couple quick ones from me. I'm I'm thinking about, uh, potential catalysts Beyond just strong quarterly prints which are which are great to see.
Um, the McCrae study, um, or you said, you would inform the market, uh, provide some more info on, um, the opportunities to unlock more value at mccrae's, uh, early next year, does does that come in the form of a, of a new study?
Yeah, new technical report, correct?
Okay, got it. Um, and what can we expect for? Um, exploration results out of hail going forward because it does seem that there were some pretty compelling opportunities there.
We'll share them with the market. I mean, I think we see where on a pretty consistent drum beat every 2 months or so. Um, and yeah, as soon as we can package some meaningful results together, we'll release those to the market but we're, we're active in drilling at every site. Uh, and getting some, you know, just some really promising, uh, promising early results, which again, subject to essays.
Yeah and great to see the uh strike expanding at wkp. Okay, that was it for me. Thank you.
Thank you, Jeremy.
And I'm showing no further questions over the phone lines. I'll hand it over to Haley, to read some online questions.
Thank you. Um, the first one is on Dipo.
Could you explain why gold sales have lagged? Well, production in the quarter and year to date and will this reverse in the second half?
Well on my hand that tomorrow is because it's a results call and he hasn't had a question given to you yet and he's feeling unloved tomorrow.
Um, yeah, the, um, just on the, on the question if it will reverse, uh, that, that is a yes. Uh, we typically have some inventory at, uh, at the port and it's purely timing related to
Great. Thank you.
Um, there's another one here. Can you comment on media reports that you're currently involved in a sales process in Australia?
Look. I mean yeah I'm aware of that uh that media speculation we we as a standard State we're not going to comment on specific uh um uh speculation but but I can say that the company is not uh involved in any uh sales process at this point in time.
Thank you.
Uh, and last year, could you please give some color as to where the exploration is focused? And what you expect in the second half across the group?
Well look, I mean our guidance mapped it out by um by sight and the largest area of expenditure uh is in relation to Fair ponga, um, underground because it's our, um, you know, for a primary longer dated higher grades. You know, um, world class or body that we're putting, um, money into. That's that's probably a bit over half of the expiration budget, but we do spend it all Sites, uh, both near mine. Uh, and also a little more regionally. And and again we we put more money into McCrae. Then we have in recent years uh we have uh as someone alluded to with an earlier question we've had some great results at hail um and um likewise
That, uh, at even inside of Martha underground, at, at, at why he. So, um, at that the Diplo is, I think as Peter mentioned, uh, both near Mine True with the Fox and Nopon. We're actually drilling, uh, at two of those three sites. And, again, really excited about what we have, um, across the portfolio in the exploration sense, and we will continue to invest in exploration because it's a great source of value generation. And, uh, again, just to call out Craig's track record of success. I think we've added resource out reserves at an average cost of $50 per ounce over the last 12 years.
Great. Thank you. That's it from
And that concludes our webcast and conference call. So a big thanks to everyone for joining and a bigger thanks to those that are in the gold and made these s such a stellar set of results. A replay will be available on our website later today. Thanks everyone.
Thank you for presenting us. And ladies and gentlemen, this concludes today's conference call. Thank you all for joining your me now. Disconnect