Q3 2025 OceanaGold Corp Earnings Call
Speaker #3: Good morning , ladies and gentlemen , and welcome to the Oceana Gold Corporation . Q3 2025 Earnings Call . At this time , all lines are in .
Speaker #3: 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 .
Speaker #3: For the operator . This call is being recorded on Thursday , November 6th , 2025 and I would now like to turn the conference over to Haley Myers .
Speaker #3: Thank you . Please go ahead .
Speaker #4: Great .
Speaker #5: Good morning and welcome to Oceana Gold's third quarter 2025 operating and financial results webcast and conference call . I'm Haley Myers , vice president of investor relations .
Speaker #5: We are joined today by Jared Bond , president and Chief Executive officer . Marius van Niekerk , chief Financial officer and Bhuvnesh Malhotra , chief operating officer .
Speaker #5: The presentation that will be referencing during the conference call is available through the webcast and 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 .
Speaker #5: Please refer to the Cautionary notes included in the presentation . News release and mDNA , as well as the risk factors set out in our annual information form .
Speaker #5: All dollar amounts discussed in this conference call are in US dollars . I will now turn the call over to Jared for opening remarks .
Speaker #6: Thank you , Haley , and good morning , everyone . The third quarter was a solid one in line with our expectations , where we safely and responsibly executed to plan .
Speaker #6: We are now in high grade ore at both Hale and Macraes , which is why we expect the fourth quarter to be the strongest of the year .
Speaker #6: This also underpins our confidence in meeting full year guidance , lowering our unit costs and generating significant free cash flow in this fourth quarter .
Speaker #6: As a fully unhedged gold producer . We continue to benefit from today's favorable gold price environment . Most of the gain in average realized gold price was converted to the bottom line , and we delivered yet another strong quarter of free cash flow generation to the tune of $94 million .
Speaker #6: We have a superb balance sheet with zero debt and cash of $335 million , up 12% from the last quarter . This increase in cash is after investing in our business and after the $46 million of capital returned in both dividends and buybacks during the quarter , reflecting our disciplined capital allocation framework .
Speaker #6: Our balance sheet strength provides us the flexibility to continue investing in our organic growth pipeline , which remains a focus for us . I'm pleased to say that the early works construction activities at the Wahehe North project are progressing well , and we remain on track for fast track permit approval of this project by year end .
Speaker #6: We have very much focused on maximizing shareholder returns and this third quarter was one in which we generated strong free cash flow ahead of market expectations , increased our cash balance and returned a record amount of cash in the quarter to shareholders via dividends and buybacks .
Speaker #6: As of today , we have completed $100 million of share repurchases this calendar year at an average price of $19.64 per share . I'm pleased to say that the Oceana Gold Board has approved a substantial 75% increase in our share buyback program for this 2025 year , raising the total amount of planned buybacks up to $175 million .
Speaker #6: Widening the lens . I want to highlight just how focused we are on generating and sustaining and attractive return on capital . Our rolling 12 month return on capital employed is 17% over the last 12 months .
Speaker #6: Over the same period , we've delivered $422 million of free cash flow , which represents a free cash flow yield of approximately 15% on our average market capitalization .
Speaker #6: Over that same period . Both of these metrics demonstrate demonstrate how we are executing well , how we are successfully converting the strong gold price into bottom line results that we're generating significant free cash flows , and that we are deploying capital effectively .
Speaker #6: Looking ahead , we're confident that the fourth quarter will be our strongest of the year from a production standpoint , and we remain on track to meet our 2025 full year guidance .
Speaker #6: Our Consolidated gold production at the end of the third quarter represents 70% of the midpoint of our guidance range , in line with plan .
Speaker #6: While our year to date all in sustaining cost is at the top of the guided range . The projected strong fourth quarter production is expected to drive our all in sustaining costs back within our full year guidance range , which is exactly how we always expected this year would play out .
Speaker #6: Total capital investment is expected to be in line with guidance , sustaining capital and growth capital expenditures are anticipated to be higher in the fourth quarter , including further spending on early works associated with the Waihi North project .
Speaker #6: In summary , we are pleased with the strong operational and financial performance year to date and looking forward , we remain confident that we're well positioned to achieve full year guidance , progress , our growth options and continue to increase returns to shareholders .
Speaker #6: I'll now turn the call over to Marius , who will discuss our financial results in detail . Thank you Jared , and good .
Speaker #7: Morning everyone . This quarter , our focused operational performance translated into a record quarterly revenue of $449 million , supported by a record average realized gold price of just under $3,500 per ounce , which is still well below where spot gold prices are trading today .
Speaker #7: I'm pleased to highlight a few other key metrics this quarter . Adjusted EBITDA reached $211 million and was up 18% compared to Q3 last year , resulting in a healthy margin of 47% .
Speaker #7: Adjusted net profit was $93 million and adjusted EPs was $0.40 , representing increases of 40% and 48% , respectively . Operating cash flow per share was $0.93 , up 41% versus last year .
Speaker #7: We generated a strong free cash flow of $94 million in the quarter , bringing the year to date total to $283 million . The balance sheet is clean .
Speaker #7: We have zero debt and our cash balance increased to $335 million . These results highlight our focus on maintaining cost and capital control and reinforcing our financial strength to continue delivering shareholder value with our balance sheet in the strongest position ever , we have the flexibility to continue funding our exciting organic growth opportunities .
Speaker #7: While also returning capital to our shareholders through our dividend and our upsized share buyback program . In addition to maintaining our quarterly dividend this quarter , we bought back $39 million of shares at an average price equivalent to around $24 Canadian per share .
Speaker #7: Having fulfilled our previously announced $100 million buyback program for 2025, the board has now approved a 75% increase for the remainder of the year, raising the targeted share buyback to $175 million for 2025, together with $24 million in share repurchases made last year.
Speaker #7: And our doubled dividend in 2025 by year end , we expect to have delivered over $225 million in capital to shareholders , and that's over the previous 18 months .
Speaker #7: This demonstrates our clear commitment to delivering capital returns to our shareholders while maintaining a strong balance sheet and funding our growth projects . I'll now pass it over to Bhuvnesh to discuss our operating performance at each of our sites .
Speaker #8: Thank you , Marius and hello everyone . Gold production at Hale was 30,000oz in the third quarter , which was our planned lowest production quarter of the year .
Speaker #8: As we advanced phase stripping , added better phase three , which unlocked fresh or towards the end of the period . We are confident that the fourth quarter will be a strong quarter , comparable to the first quarter , driven by the high grade ore from Ledbetter , three positioning us to achieve our full year guidance .
Speaker #8: The third quarter all-in sustaining cost was above our guidance range, as expected, reflecting the lower production volumes, capital investment on waste stripping, and increased sustaining capital.
Speaker #8: We maintain our all in sustaining cost outlook for the year as we expect unit costs to decrease significantly in the fourth quarter , in line with the expected improved production profile during the quarter .
Speaker #8: We also released some exciting exploration results at Hale , highlighting the high grade mineralization at several deposits across the property , notably at Ledbetter phase four horseshoe underground and the early stage Pisces and Clydesdale targets .
Speaker #8: The exploration success enjoyed year to date continues to highlight attractive upside for low risk organic opportunities . Work on Ledbetter Phase four trade off study continues to progress well , we are on track to release an updated NI 43 101 technical report by the end of quarter one , 2026 , with the results of this work .
Speaker #8: Now onto the TPO. During the quarter, the DPU delivered gold production of approximately 22,000 oz and copper production of 3,100 tonnes.
Speaker #8: In line with our full year plan in the quarter , we successfully completed the dewatering of the decline and expect to be at normal underground mining rates by the end of 2025 , keeping us well on track to meet our full year guidance .
Speaker #8: We continue to pursue our underground optimization plans to support our growth in the third quarter , we increased our investment in sustaining capital with planned spending on underground pumping infrastructure and ongoing lifts to the tailings storage facility .
Speaker #8: We expect this investment to continue into the fourth quarter , with the investments in mine water resilience in the second half of 2025 , we expect all in sustaining costs to be around the top of the guided range for the full year .
Speaker #8: We remain excited about our exploration prospects with ongoing drilling at multiple targets this quarter . We continue to explore our near-mine target Napatan and Dfox in the fourth quarter .
Speaker #8: Drilling will resume at true Blue , an area of known mineralisation approximately 800m away from the mine . Additionally , resource conversion drilling from the underground is expected to resume shortly following the successful dewatering of the decline .
Speaker #8: We are making good progress and remain on track to reach our targeted underground mining rate of 2.5 million tonnes per annum by the end of 2026 .
Speaker #8: We expect to release an updated technical report in the first half of 2026 , outlining this plan to the market . We remain excited about Dpos future growth opportunities .
Speaker #8: Moving on to McRae's this quarter , McRae's delivered improved gold production of 33,000oz as waste stripping at Endssmells eight began unlocking fresh for towards the end of the period .
Speaker #8: Looking ahead with access to fresh core at Ines Mills eight . We are confident in the significant fourth quarter uplift in production , positioning us well to achieve our full year guidance for production and costs .
Speaker #8: We remain excited about our potential opportunities to unlock value at McRae's . We are continuing to evaluate many options available to extend the mine life .
Speaker #8: Given today's high gold price environment . Leveraging the value of our industry leading low mining unit costs , we expect to share more with the market in an updated technical report at the end of quarter one , 2026 .
Speaker #8: War . He delivered another strong production quarter of just under 19,000oz of gold , maintaining the progress achieved with the underground Improvement Plan initiated in 2024 .
Speaker #8: This marks the fourth consecutive quarter of stronger performance at Wahi , which is testament to all the hard work done by the team .
Speaker #8: There . This great turnaround at Y in recent quarters has positioned the site to deliver gold production around the high end of its guidance range for 2025 .
Speaker #8: Now on to our exciting Y North project . I'm pleased to say that our fast track application progressed through the commenting phase in the third quarter and is currently in the panel Consideration phase , which includes us responding to requests for information .
Speaker #8: Our expectation remains that we will be permitted by year end and will be able to start the underground decline towards ferric araponga in 2026 .
Speaker #8: Early works activity continued to progress , with the construction of the service trench . Civil works and Velos bulk earthworks . All commencing this quarter .
Speaker #8: We are on track to spend a guided $45 million this year helping the project to be ready to start in earnest when we receive that approval .
Speaker #8: Turning to exploration at ferric araponga , exploration focused on confirming the extent of mineralization of the southern end of the deposit , which remains open as part of our fast track application .
Speaker #8: We are also seeking approval to increase the number of drill sites and double the number of allowable drill rigs , which will accelerate efforts to define this exciting deposit .
Speaker #8: Back at Wahi Exploration , drilling is focused on resource definition and conversion and expansion of the Mata underground . With improved underground performance and solid progress on permitting of the Wahi North project , we remain very excited about his future .
Speaker #8: I will now turn the call back to Gerrick .
Speaker #6: Thank you Bhuvanesh . In summary , this was another good quarter for Oceanagold and in line with our full year plan , we expect the fourth quarter to be our strongest of the year , setting us up well to meet our full year guidance and generate substantial free cash flow at today's gold prices .
Speaker #6: As a fully unhedged gold producer , a balance sheet is in excellent shape . We returned a record amount of capital to shareholders through dividends and buybacks .
Speaker #6: Our 2025 buyback program has been substantially increased by 75% , and the fast track permitting approval of the Waihi North project is expected by year end .
Speaker #6: We're also targeting a listing on the New York Stock Exchange in April 2026 , which we believe will provide enhanced trading liquidity and access to a wider range of potential investors , both of which should drive value for shareholders .
Speaker #6: All of this is possible through the dedicated efforts of the many tremendous people who work at Oceanagold and a big call out of thanks to them for all their hard work .
Speaker #6: I'll now turn the call over to the operator , who will open up the lines for any questions .
Speaker #3: Thank you , ladies and gentlemen . We will now begin the question and answer session . Should you have a question , please press star followed by the one on your telephone keypad .
Speaker #3: You will hear a prompt that Johan has been raised and should you wish to cancel your request , please press star followed by the two .
Speaker #3: If you are using a speakerphone , please leave the handset before pressing any keys . One moment please , for your first question .
Speaker #3: Thank you and your first question comes from the line of Ovais Habib from Scotiabank . Please go ahead .
Speaker #9: Hi , Girardon OceanaGold Corp , congrats to you and your team on a great quarter . And really great to see Hale and McCrea in the higher grade .
Speaker #9: Or also really great to see the significant increase in the share buyback program . So that was really good to see . And really depicts how confident you guys are on your free cash flow profile .
Speaker #9: A couple of questions from me , Gerard , number one , starting off with , you know , you've got a lot of studies coming up in 2026 .
Speaker #9: There's the Hale tech report Mccrae's tech report . You've got the underground PFS as well in terms of the free cash flow and free cash flow profile that we see going into 2026 .
Speaker #9: That seems to be very strong . So the question is , do you see any major CapEx projects going into 2026 based on these expected studies ?
Speaker #6: Hi . So thanks . Firstly , thanks for the for the questions . Look , I mean , the cash flow requirements of those studies or the mine plans that that will be reflected in those studies will be available in 2026 when we release them .
Speaker #6: But there's nothing unlike , say , the Waihi North project . There's nothing . More than we're doing than updating the mine plans for latest reserves .
Speaker #6: Latest reserve assumption . And , you know , latest , latest estimates of activity and the mine plan itself . There is nothing of a vastly different nature in capital that we're expecting to be associated with any of those three assets .
Speaker #6: Hale Mccrae's or Didipio .
Speaker #9: Fantastic . Thanks for that color . And and just kind of moving on to the DPO then Q3 looks fairly similar kind of Q2 , you know , things have improved .
Speaker #9: You know , obviously there were some underground water issues at the beginning of the year . Is that all now behind us ? Any any color on that would be great .
Speaker #6: Well , I , I think Putin has covered it in the call and I'll hand it over to Bhuvnesh at the end . But as he said , you know , we have completed the de-watering of the decline and and by the end of this year , we expect to be at normal underground mining rates in full Bhuvnesh anything else to add on that ?
Speaker #8: No , I think you covered it well . Thanks . Gerard .
Speaker #9: Okay , thanks for that . And then and then just moving on to why you know , why he's expected to finish the year around the top end of his production guidance .
Speaker #9: And this is definitely a big improvement over the past couple of years . Are you now confident in this performance continuing to 2026 ?
Speaker #6: Bhuvanesh you want to take that ?
Speaker #8: Yeah , sure . Thanks for yeah , we are very confident about our production profile . Moving forward from Wahi . I think we now have a great handle of , of of the mining out there as well .
Speaker #8: So yeah , we feel very confident about our ability to capture and maintain that right .
Speaker #9: Okay . Thanks guys . Thanks for taking my questions .
Speaker #6: Thank you guys
Speaker #3: And your next question comes from the line of Harrison Reynolds from RBC Capital Markets . Please go ahead .
Speaker #10: Hey good morning Oceana team . And yeah , congratulations on delivering another strong quarter . It sounds like well set up heading into the end of the year .
Speaker #10: Wondering if you might be able to provide a bit more detail on these upcoming tech reports for Hale and Macraes ? I know you touched on it a little bit in the in the last question , but but sort of trying to understand what they might include .
Speaker #10: You know , I think about the Macraes mine life extension , and I think that's underappreciated . But trying to maybe think about which phases are actually going to get included in this report .
Speaker #10: And over at Hale , you know , some of this exploration has been interesting , but I'm wondering , you know , are we going to get details around those targets at all , or is it just going to be updating production schedules and costs ?
Speaker #6: Everyone , everyone wants a spoiler alert ahead of ahead of the . You're going to rob all the excitement of February if we keep talking .
Speaker #6: Look , I mean , Hale , we've been saying for a while now we're studying how we're going to approach the mining of Leadbetter for it was always in the last technical report shown to be a open pit mine , but as a result of the great drill results we had and the shape of the ore body as defined by that drilling , you know , the what the study will do is , is make a determination and reflect that the decision on how we're going to mine that , that Leadbetter for all body .
Speaker #6: So that's probably the primary change . The we've had some tremendous drill results at Hale as foreshadowed . But I don't think much of that's going to alter the mine plans beyond what I've said in relation to Leadbetter .
Speaker #6: For at Macraes , it's last reserve estimate was done for the whole company was at a reserve price of $1,750 an ounce , and we said that , you know , we are going to we're looking at having a higher reserve price for macraes and , and all sites .
Speaker #6: And when we update that technical report at a higher reserve price , the the amount of mineralization at Macraes is such that you can expect that a degree of mine life extension of some magnitude because it is a an all body that's sensitive to price .
Speaker #6: And so at these higher gold prices and we're always going to make sure that our reserve price isn't chasing two spot gold . We're going to make sure we have a very healthy margin on mining activities at all sites .
Speaker #6: But MacRae is sensitive to the gold price , and we expect that that that increase will allow us to mine more or for longer at Macraes .
Speaker #6: And they are the primary reflections .
Speaker #10: That's that's great detail . And maybe just one more from me . You know , I think it's exciting to see that there's going to be more drills on on the Wahi north project post permitting .
Speaker #10: But can you talk a little bit about what's going to be targeted from those drill rigs ? Is that going to be more infill drilling , or are you going to start to , you know , do step outs and define the size of this ore body ?
Speaker #6: Yeah . Great question , Harrison . I mean , let's to put it in context . We're doubling the amount . Well , we're doubling the amount of drill pads that we can drill from .
Speaker #6: That will give us tremendous flexibility and choice as to how we approach the drilling , as opposed to being limited to the drill pads that we have had for many number of years .
Speaker #6: And as I said , doubling the amount of drill rigs , the we'll always have a choice . And they're not mutually exclusive .
Speaker #6: We can do do a bit of both . It's is an exciting orebody . I think there is merit in doing some infill drilling and there's merit in doing step outs .
Speaker #6: And and again , we're only to date focused on one of the veins . So there's also the opportunity to focus on some of the other veins in the region .
Speaker #6: I think a fair ponga , the district has a long period of time to unveil what's what's possible . There . And and again , this this next year is going to be a step change in drilling activity to , to help unveil all that .
Speaker #10: Great . Thanks so much and thanks for taking my questions .
Speaker #6: Thanks , Harrison . Appreciate you being on the call .
Speaker #3: Thank you . And your next question comes from the line of Fahad Tariq from Jefferies . Please go ahead .
Speaker #11: Hi . Thanks for taking my question . Yea , sounds like the underground improvement plan is going really well . You've seen higher , higher throughput , higher grades , lower cost .
Speaker #11: Are there similar opportunities at other mines in the portfolio to bring costs down ? Thanks .
Speaker #6: Sure . Sure . Answer is yes , but I'll let Bhuvnesh color that in for you . Thanks for the question . Bhuvnesh .
Speaker #8: Thanks , Farhad for the question . Yes , there are other opportunities across our portfolio to to really factor the cost . Currently , we are , you know , undertaking all of those opportunities as well and probably Hale being a nice one to to take that into account as well .
Speaker #8: Specifically , when you look at the trade off study between the open pit and the underground so that that's a that's a great example to factor that outcome .
Speaker #8: Similarly , at , you know , we we can we're looking at all opportunities as a part of the mining studies that are out there as well .
Speaker #8: And you know , the way we basically have been mining Anti-tpo specifically in relation to how our stope sequencing work , we are always looking at those opportunities as to how to , you know , get the cost of the of the of sustaining cost down .
Speaker #11: Okay . Thank you .
Speaker #6: Thank you , thank you .
Speaker #3: Thank you . And your next question comes from the line of Cosmos Chiu from CIBC . Please go ahead .
Speaker #12: Thanks , Jared . And team , maybe my first question is on something interesting that you mentioned in your mDNA . As you mentioned , your mDNA , you'll be releasing your 2026 guidance with full year 2025 results , and it will reflect updated economic influences from current market and operating environment .
Speaker #12: So I guess my question is , Jared , is that , you know , an indication that you'll be looking at sort of inflationary factors or are you looking at sort of changes from the higher gold prices and changing opportunities ?
Speaker #12: You kind of answer that question in your answer to Harrison and Mccrae's . In terms of potentially , you know , bringing in more or but is that is that what we're talking about ?
Speaker #12: Inflation ? Are we talking about opportunities from a higher gold price ? What do you mean by that statement .
Speaker #6: Yeah , I mean it's it's everything costs , right ? I mean , we start with the physicals and then we have to have an overlay of , of what it's going to cost and what we're going to be investing in .
Speaker #6: And , you know , the mine plans will direct the activity and the activities can , can shift ever so slightly depending on what mine plan takes us to .
Speaker #6: And the experience of the year . And , you know , market costs , you know , they can reflect anything , including inflation exchange rates .
Speaker #6: I mean , we operate 50% of our business is outside of the US . And so we update our as do the New Zealand dollar and the peso input costs and so forth .
Speaker #6: So it's a it's a comprehensive normal update of what we expect the economics of and physicals of the business are going to be .
Speaker #12: So pretty much everything . But I guess , you know , to ask it more concisely , have you thought about what gold price assumption you might be using for your technical reports coming up that could drive how you run the business , at least into 2026 ?
Speaker #6: You short answer . And I think I alluded to it and we said it previously . We are going to increase the reserve price as a reserve price of 1750 .
Speaker #6: Is is too low . So it will go up . It doesn't change the activity set of any of our assets in 2026 at all .
Speaker #6: And the primary change that that and it doesn't change much of the reserves of of any site with the exception of Macraes , because as I said on the call , it's the one that's most sensitive to price .
Speaker #6: And you can just see the difference between the reserves and the resources that macraes and resources that macraes are , you know , are booked at 1950 .
Speaker #6: So as we migrate from reserve to resource , you're going to see some level of those resources come into reserve . And that will extend life , but it won't alter the activity of 2026 all that much from what we expected .
Speaker #6: Otherwise .
Speaker #12: Great . Maybe switching little bit . You know , Jared , as we all know , Q3 was going to be the weakest quarter for the year for Oceana .
Speaker #12: And despite that , you still generate a very good free cash flow . $94 million positive free cash flow . Can you remind us of any kind of seasonality in your free cash flow quarter , over quarter ?
Speaker #12: For example , I know that you need to pay for your FTA . You know , each and every April , but is there anything else that we should be aware of ?
Speaker #6: Not not really . Cos I mean , I think the largest single lump is and I'll give Marius time to think and he can color in if I've missed something .
Speaker #6: But the largest single item of lumpy spend is , is that additional government share that's paid in April of every year . That's flagged in
Speaker #6: the in the full year results that we released in February . You know , we we through the course of this year , we did have some seasonality gears a in the electricity price that we experience in New Zealand .
Speaker #6: But , you know , it's kind of not not all that significant . But and then there are the seasonality . We can have , you know , weather events affecting shipping of copper concentrate added to .
Speaker #6: But that all washes out in the course of a year anyway . So nothing material , anything come to mind or bhuvnesh .
Speaker #7: Only , the only to highlight the only two that come to mind is obviously your CapEx spent profile cost . Depending on where you are in that quarter and then also , you know , from a shipment perspective , yes , you'll have you could have weather events impacting it , or you could have some stockholding at either site or port at at the back end of the period .
Speaker #7: So that that would influence , for instance , the this quarter had some sales that that come from that came from inventory in the prior quarter .
Speaker #12: Great . Thanks . Marius . And maybe one last question . Great to see , you know , share buybacks . You've reached your $100 million target now increasing it to $175 million .
Speaker #12: But I guess my question is , you know , as Marius mentioned , you repurchase shares at Canadian 24 , Oceania shares have done very well .
Speaker #12: Now 3185 Canadian . So I guess my question is , is there some kind of upper limit in terms of when you might start considering or reevaluating the velocity in which you repurchase shares ?
Speaker #6: Yes , we do have we are mindful of value cos we have our own view on value . Having regard to modelling and various assumptions .
Speaker #6: And and we don't go above that limit .
Speaker #12: Okay . And at this point in time , Gerry , can you share with us , are we going to expect share buybacks of $75 million in Q4 , or is that again , based on what you're observing in terms of value , in terms of share price ?
Speaker #6: I can say that we will that we will be commencing that buyback at today's share price . And what happens thereafter ? Cos is again subject to the parameters we put around it .
Speaker #6: But I think what we have shown is that when we said we were going to buy back shares at the start of the year of 100 million , we executed to that and I think just generally at a macro level , I think that gold equities , not all gold equities , but certainly Oceania gold equities are still have a way to go to reflect , you know , fully or even part of the uplift in spot gold .
Speaker #12: Great . Thanks Jared Marius and team for answering all my questions . That's all I have . Thank you .
Speaker #6: Thank you thank you . Appreciate it .
Speaker #3: Thank you . And your next question comes from the line of Don DeMarco from National Bank . Please go ahead .
Speaker #13: Good morning and thank you . Operator . And thank you for taking my questions . First off , to these technical reports , Jared , the what is the timing of both the hail and the tech reports ?
Speaker #13: Are they going to both be out before 2026 ? Guidance is released ?
Speaker #6: No , no . Come out in the end of the first quarter of 2026 . But the the essence of them will be reflected in the in the 26 guidance .
Speaker #13: Okay . And of course , you know , as has been discussed in some of the questions with the hail tech report , you're looking at your face with the decision of how to approach Leadbetter for this analysis is ongoing .
Speaker #13: We'll look to the report for what your decision is . What are some of the variables that you're including in your analysis that might drive the decision grade CapEx , differences in throughput between the different scenarios in mind ?
Speaker #13: What are some of the factors that you're looking at and weighing both options ?
Speaker #6: Sure . Great question . Bhuvnesh you want to take that one ?
Speaker #8: Yeah , sure . Thanks , Don . So we've been we've been looking at the value based decision as well . So the the decision basically is made about , you know , the NPV that we will generate .
Speaker #8: And then the IRR that will get out of the decision that that we need to make as well . And as you know , probably in the case of the open pit , given the amount of waste that we need to strip to the ore that that is probably is is is is a huge amount of time that we spend in that space as well .
Speaker #8: So we're taking a value based decision that probably generates the the best outcome is , is what the trade off studies will be taking into account .
Speaker #13: Okay . Great . And and you know , great to hear that . You know , Q4 is going to expect it to be the best of the year .
Speaker #13: And really , there's a clear path into 2026 as well . Would you expect that that stretch to continue into 26 ? I mean , in a general sense , of course , we'll look for details of the guidance , but seems like a clear path for carrying on the strength from Q4 into next year .
Speaker #6: Yeah . And whether the quarter volumes exactly the same , but the drivers of that uplift definitely carry through into 26 . I mean , this is all been about accessing grade at our two largest operations , hail and Macraes .
Speaker #6: This year represent 70% of our projected production . And next year , that combination grows even larger . Because of this access to the higher grade ore and endless mills and macraes and Ledbetter , three that we've been investing in this year .
Speaker #6: And that's what I think is particularly exciting . We we have been investing in the access of those large open pits this year .
Speaker #6: It's still generating tremendous free cash flow . And then next year when you're feeding higher grade oil , that's that's what's the primary driver of the uplifting gold production in 2026 .
Speaker #13: Great . Thank you very much . That's all for me .
Speaker #6: Thank you . Don .
Speaker #3: Thank you . And there are no further questions at this time . I will now hand the call back to Gerard Pande for any closing remarks .
Speaker #3: .
Speaker #6: That concludes our webcast and conference call today . Thank you , everyone for joining us . A replay will be available on our website later in the day .
Speaker #6: On behalf of the management team and everyone at Oceana Gold , I wish you a very pleasant rest of the day . Bye .
Speaker #6: .
