Half Year 2026 Igo Ltd Earnings Call

Operator: Thank you for standing by, and welcome to the IGO Half Year Financial Report. All participants are in a listen-only mode. There'll be a presentation followed by a question and answer session. If you would like to ask a question, you'll need to press the star key followed by the number one on your telephone keypad. I'll now hand the conference over to Mr. Ivan Vella, Managing Director and CEO. Please go ahead.

Thank you for standing by and welcome to the RTI Hockey a financial report.

All participants are in a listen only mode there'll be a presentation followed by a question and answer session.

If you'd like to ask a question you need to press the stocky followed by the number one thing, though telephone keypad.

Now I turn the conference over to Mr. Ovens Villa managing director and CEO. Please go ahead.

Ivan Vella: Thanks, Darcy. Good morning. Good afternoon, everyone. Great to have you join us here for our half year results. Welcome for that. With me on the line is Cath Bozanic, our CFO, as per usual, and I was joking with her earlier saying, "Well, this is, this is your conference to, talk to," but look, we'll probably keep the focus on financials pretty, pretty short and sweet, as it's, reasonably straightforward, and then cover any other questions or, or things on your mind. Before we dive in too far, I did wanna just note that Cath, as you know, she wraps up, end of next week after over five years with IGO, and in that time, made a huge contribution, both as a director and as our CFO.

Oh, Thanks, Darcy good morning, good afternoon, everyone.

Great.

One is to keep her how husky results.

Welcome to that we see on the line is cast present at Chelsea, It's always the usual and I was talking with or at least saying well. This is this is your conference to I told two but look we'll probably keep the fabulous on financials pretty pretty short and sweet and it's reasonably straightforward and then cover any other questions or things on your mind.

Before we dive in so far I did want to just noise at Cas as you notice he wraps up into next week after five years with Igl in that Tom made a huge contribution.

As a director and as a CFO.

Ivan Vella: She leaves big boots and is in the process of handover, preparing her team, getting everything ready. Johan starts with us on 1 April 2024, and obviously he's gonna have a lot to, to pick up and get into as, as he, as he gets settled. But just to call out to Cath and to thank her for, for her significant contribution, in that time. In terms of slides, look, we've got a couple on the, on the financials and a half, but then dive into, as you've seen, a, a few other areas around Greenbushes and the changes there. We'll, we'll cover what we can in that sense. But as usual, I wanted to just start on safety and also just talk a little bit to sustainability as well.

The booths and is in the process of hand, either.

Preparing a team getting everything ready Johan stops with us on the first of April and obviously, he's going to have a lot to us to pick up and getting to us.

As you get settled but just to call out to Cas and to thank him for his significant contribution in that time.

In terms of starts that we've got a couple on the on the financials in the half, but then dive into is you've seen a few other areas around Brian bushes and.

Are the changes there what kind of what we can in that sense, but as usual I wanted to just start on safety and also just talk a little bit to sustainability as well, especially on safety performance and you know it was a quarterly just past nothing, particularly new other than continued trajectory of improvement credits into latest ship at neither.

Ivan Vella: Firstly, on safety performance, you know, with the quarterly just passed, nothing particularly new other than continued trajectory of improvement. Credit to the leadership at Nova and across the business. They've done a great job, and the whole team out there continue to improve, and I think, you know, we're really starting to see that downshift in both leading, well, upshift in leading results, the work that they're doing every day and a downshift in the impacts, the injuries and incidents across the business, which is fabulous. Never ends. There's still lots of work to do as we embed that culture and make it more mature, but I'm really pleased to see that continuation, and it's something we'll keep talking about and keep elevating.

And across the business they've done a great job and the whole team out there continue to improve and I think we're really starting to see that downshifting, vice leading oh, well up shifting Lady results.

What they're doing every day and it gets shipped in and the impacts of the injuries and incidence across the other business, which is fabulous.

Never ends there's still lots of work to do as we embed that culture and make it more mature, but I'm really pleased to say that continuation of something we'll keep talking bad keep elevating.

Ivan Vella: A couple of other thoughts or points just on sustainability more broadly across the business. We have just launched our latest Reconciliation Action Plan last year and got that moving. That was after the sort of inaugural one that we'd done, actually started before my time. And great to see, and there's a really strong partnership there, and that goes certainly through our operational footprint with Nova and the sites and care and maintenance, but also across our exploration presence as well. So good to have that in place, and we've got a really strong board there, that advisory board that guides us and helps support our work.... And the other point I wanted to just call out on this first slide was our closure readiness at Nova. That work is continuing in earnest, making good progress.

A couple of other thoughts all points just on sustainability more broadly across the business we have just.

<unk> launched our lightest reconciliation action plan.

Last year and got that meeting that was after the sort of an older one that we do.

Actually started before my time.

And great to see and there's really strong partnership there and that guys Sidney through operational footprint with Nova and the Sochi in care and maintenance, but also across their exploration presence as well. So good to have that in place and we've got a really strong board that advisory board that guides us and helps.

Support at work.

And the other point I wanted to just call out on this first slide was down close your readiness and all that work is continuing.

Making good progress there's a lot to do working is very weak.

Ivan Vella: There's a lot to do, working through to get our feasibility ready, I aiming for the midyear so that that's in hand, and we know where we stand as we bring the mine to a close in the back end of the year. So that's just a couple of quick highlights on safety and sustainability. With that, I'm gonna turn it over to Cath to talk through the headlines from our first half 2026 financials, and I'll add a couple of comments, and then we'll get into an operational update as well. Thanks, Cath.

That feasibility ready I mean for the media so that that's in hand, and we know where we stand as we bring to them.

Onto a clause in them in the back end of the year.

So that's just a couple of quick highlights on onsite in sustainability with that I'm going to turn it over to cast to talk through the headlines from al first half 'twenty six financials and I'll add a couple of comments and then we'll get into a price some update as well. Thanks Kirsty.

Kathleen Bozanic: Thanks, Ivan. Our financial results showed our focus on costs and safe production at Nova and helped to deliver improved underlying result. Revenue was AUD 194 million, compared to AUD 284 million in the corresponding period. The decline is a result of lower nickel and copper prices and volumes from Nova, and no revenue through Forrestania, which was put in care and maintenance last year. This accounts for about AUD 64 million of the difference. Underlying EBITDA was AUD 49 million, driven by improved Nova EBITDA, up 15% to AUD 67 million and lower spend in exploration, down from AUD 30 million to AUD 15 million, and this is demonstrating our focus on costs and safe production, as I noted earlier. IGO share of underlying net loss from TLEA improved to AUD 1 million, compared to AUD 20 million in FY 2025.

And thanks, Ivan how financial results Shane S cycled, some costs and safe production at night and helped to lift our improved underlying result, Britney was 194 million compared to $284 million in the corresponding period. The decline was the result is lower nickel and copper prices and volumes.

Some noise and no revenue shirts are assigning a which was put in care and maintenance last year is the cats for about $64 million of difference.

Underlying EBITDA was 49 million driven by crave snipe at EBITDA of 15% to 67 million and lower spending exploration down from 30 million to 50 million and this is demonstrating and focused on costs and site production as I noted earlier.

Oh, Gee I share of underlying net loss from Kaylee I am praying to unveil compared to 'twenty meal in FY 'twenty five.

Kathleen Bozanic: This includes Greenbushes EBITDA of AUD 464 million on a 100% basis, and Kwinana loss of AUD 71 million, also on a 100% basis. It's important to note, and we say it in all our calls now, that the Kwinana result includes AUD 33 million of capitalized items, in accordance with the accounting standards, following the full impairment of Kwinana by IGO. The underlying net loss after tax was AUD 39 million, and the statutory net loss after tax was AUD 34 million, and it includes the proceeds from the sale of the Stockman royalty. In the prior corresponding period, statutory losses were AUD 782 million, reflecting impairments at Kwinana, derecognition of deferred tax assets at Kwinana, and also impairment of exploration assets.

Can play.

Greenbush is EBITDA of 464 million and 100% by system Qunar and a loss of $71 million also on 100% basis.

It's important Tonight, and we say it.

Black holes now that <unk> resolved and clay steady 3 million of capitalized items.

In accordance with the accounting standard so following the falling panel.

And Qunar antibiotic G I.

The underlying net loss after tax was $39 million in the statutory net loss after tax was $34 million and that includes the price AIDS from the style of the stop men suffering right. Okay.

In the prior corresponding period statutory losses was $782 million, reflecting impairments at banana de recognition of deferred tax assets at Granada, and OXXO and payment of exploration assets.

Kathleen Bozanic: We've maintained our prudent capital management approach, and as such, have not declared a dividend for this half. If I move to the cash flow, net cash flow from operating activities was AUD 28 million, which is a great result, up from AUD 7 million outflow in the first half of 2025. Underlying free cash flow was AUD 29 million, with a strong contribution from Nova, while some care and maintenance spend is ongoing at Forrestania at Cosmos. The Forrestania spend will cease following the expected completion of its sale to Medallion Metals. Exploration and corporate spend continues to trend down, notwithstanding some lumpy corporate payments in the first half of the year. We ended the period with AUD 299 million in cash and have AUD 300 million of undrawn debt facility, so our balance sheet remains extremely strong.

We've maintained our prudent capital management approach and as such has not declared a dividend this half.

If I move to the cash fly.

Net cash flow from operating activities was 28 million, which is a great result up from 7 million apps lie in the first half of 'twenty five.

Underlying free cash flow was 29 million with a strong contribution from Knight well some care and maintenance spend is ongoing as far as tiny ear cosmos.

But as far as timing of spend will say, it's following the expected completion of its scioto medallion meadows.

Exploration and corporate spend continues to trend down notwithstanding some lumpy corporate payments in the first half of the year.

We ended the period with $299 million in cash and had 300 million of Undrawn debt facility say and balance sheet remains extremely strong.

Kathleen Bozanic: We will continue to maintain our cost discipline focus and our focus on safe production at Nova as we come to the closure of that mine. That covers for the financial results. I'll hand back to you now, Ivan.

We will continue to maintain our cost discipline scientists in FY cars on site production at night or as we come to the closure of that mine.

Hum.

So the financial results I'll hand back to you know often.

Ivan Vella: Brilliant. Thanks, Cath. Look, maybe just a couple of points to reinforce. I guess talking to the cash chart there, number four, you know, you can see that we've continued to focus on cost discipline and managing that across the business. We are gonna see obviously another step down again as Forrestania unwinds, and we're expecting that transaction to close with Medallion at the end of this month. Cosmos, as we announced a little while back, having stopped dewatering, that was a big part of the cost, the energy costs, the pumps, and so on. You know, a sad situation, but just the right call, looking at the long-run economics of that resource, and that will step down as well. Exploration, as you've seen, has stepped down, and it's very targeted.

Great and thanks, Cas Luca let me just say a couple of points to reinforce I guess talking to the cash chart number four you can see that we continue to focus on cost discipline and managing that across the business. We are going to see obviously, another step down again as far as Tania.

On lawns and expecting that transaction to clause with medallion at the end of this month.

And Cosmos, as we announced a little while back having stopped the water and that was a big part of the cost the energy cost pumps and so on.

Yeah sad situation, but just the raw coal looking at the long run economics of that resource and that we'll sit down as well ex price and as you've seen has stepped down and it's very targeted I still believe very strongly in a in a rather than exploration and deep capability and the team and I saw it because that does not mean to say that.

Ivan Vella: I still believe very strongly in in our role in exploration, our deep capability in the team, and our focus. That does not mean to say that we won't apply a lot of rigor and scrutiny on our expenditure there and make sure it's very targeted. John and the team, and I'll look forward at some point soon to get John on one of the quarterly, so you can hear from him more directly on our exploration activities, is doing a great job looking at generative and allocating our expenditure very carefully. And the drilling, and I guess the more substantial elements of expenditure and cash you see in that half, have really related to lithium targets that we've pursued in pretty prospective ground.

We want to apply a lot of rigor and scrutiny on our expenditure there and make sure. It's very targeted John on the team and I look forward at some point soon to get drawn on one of the quarterly so you can hear from him on directly on our exploration activities.

Doing a great job looking at generative and allocating them Alex into very carefully in the drilling and I guess, the most substantial elements of extending certain cash you see in that house I really related to lithium targets that we pursued in pretty prospective ground nothing that has got us.

Ivan Vella: Nothing that, you know, has got us jumping up and down yet, but that's, that's the work that we've got to keep doing to translate into value. And of course, our corporate costs, we continue to taper, and with Nova's close at the end of this year, naturally, that will adjust accordingly and taper with the business. So, that work continues. I think you've seen that cost discipline over time, and that there's no expectation that should change. If I move on to slide five in the operations summary, and let me start bottom up because I really wanna call out the performance at Nova.

Jumping up and down yet, but that's the way we've got to keep doing to translate into value.

And of course that corporate costs, we continue to taper and with no I was clause at the end of this year naturally that will that we'll adjust accordingly and entitled with the business side.

That work continues I think you've seen that cost discipline, either time and that does not expectation.

The expectation that should change.

If I move on to slide five and the operations summary, and let me start bottom up because I really want to call out the the performance either I think you know if you look back at the half and in the appendix of the slide pack if you've got that handy you can see slide 13, 14, 15, and I just gave you a half by half comparison full greenbush is for going on or not.

Ivan Vella: I think, you know, if you look back at the half, and in the appendix of this slide pack, if you've got that handy, you can see slide 13, 14, and 15, and they just give you a half-by-half comparison for Greenbushes, for Kwinana, and Nova. And if you look at Nova, I mean, it's really pleasing seeing a mine at this point in its life. So it gets really difficult in that last 12 months, and everything is pointing in the right direction. We're seeing better production, lower costs, much, much better safety, really stable operations. Yes, they have issues that you know, from time to time, but the team are collectively working through those very well, and demonstrating really, really professional operations under very difficult circumstances. And that's translated into cash generation and the performance overall.

And if you look at neither I mean, it's really placing saying a mine at.

At this point in a slot so it gets really difficult in that last 12 months and everything is pointing in the right direction, we're seeing better production lower cost much much better safety really stable operations, yes that have issues.

From time to time they.

Collectively working through those very well I think demonstrating really really professional operations under very difficult circumstances, and that's translated into cash generation on the performance side role inside a set of numbers to really be proud of in in this last part of the mine life and as you know full expectation the time will come.

Ivan Vella: And so a set of numbers to really be proud of in this last part of the mine life, and, as you know, full expectation, the team will continue that good work right through to the end of this year. It's also fabulous, you know, despite obviously the nickel market starting to recover a little, but through a very difficult period in the cycle, it's generated cash for the business and helped us to fund other activities across our portfolio. On Kwinana, I'm not gonna dive into too much detail, you know, certainly half and half comparison is better, and you expect that to come through given some ramp up and you know, amortization of fixed costs and so on. But it's still, you know, ultimately underperforming.

That good work right towards the end of this year.

It's also a fabulous bottom.

So nicole market starting to recover a little bit through a very difficult period in the cycle each generated cash for the business and helped us to to fund other activities across our portfolio.

On Kona.

I'm going to say much de Tao.

Suddenly half on half comparison is S O U.

Do you expect that to come through given some ramp up in amortization of fixed costs and so on but it's still also.

Ultimately underperforming it's its missed its claims and expectation and promises on all fronts and ultimately not changing our outlook with camden's use we saw just last week.

Ivan Vella: It's missed its plans and expectations and promises on all fronts, and ultimately, you know, no change in our outlook. And with Kemerton's news, we saw just last week, you know, a very difficult situation. Albemarle's been incredibly strong and committed to trying to make that work. You can see how difficult lithium processing and refining is in Australia in that context. Kwinana is only more challenged because of the nature of the asset and the challenges the team have to work through there.

Very difficult situation, all miles being incredibly strong and committed to trying to make that work you can see how difficult lithium processing and refining is in Australia and in that context.

Kona is more challenged because of the nature of the asset and the challenges the team has to work through that.

Ivan Vella: Look on, and Greenbushes, I'll talk forward-looking in a minute, but, you know, backward-looking, it's not a stellar half, and I, you know, look back on the time and the work we've done at Nova to really focus in on the team, on safety, and on production stability, and they've made a really substantial difference. And I think, as I said, something to be very proud of. Greenbushes, we're not at that point yet, and that's not for lack of effort or energy or drive. Rob Telford and the team are working extremely hard to lift the performance, productivity, the safety performance, the cost performance across our business. It's a bigger job, there is more to do, there's more complexity.

Luke and Green bushes are also forward looking in a minute, but backward looking it's not a stellar half and I.

Look back on the time and the work we've done it now I got to really focusing on the same on safety and on production stability and I've made a really substantial difference and I think as I said, so I'm going to be very proud of grain voices went out at that point, yet and that's not for lack of effort or energy or drive Rob Telford and the same are working extremely hard to.

Lift the performance productivity the safety performance the the cost performance across that business. It's a bigger job. There is more to do there is more complexity there probably.

Ivan Vella: They're probably, you know, aren't feeling the green suits and the momentum that we all hope for at this point yet, but that will come. And, you know, just as we've seen that shift in gears in Nova, and I've seen in other assets in my career, I know that's coming with Greenbushes. We've just got to keep at it, keep doing the right work, and we'll see that significant lift in performance. But going through the specifics, you know, still a very good EBITDA margin from a world-class asset. Sales volume's really just about timing, nothing more than that. And, you know, a big focus for us is, of course, on the optimization work, on the life of mine, and then, the productivity program that's underway across the business.

Ivan Vella: The next slide, I guess, just, you know, points to CGP3, and I thought I'd spend a minute there just talking to what we're seeing in the early days. That's an image of the asset as it's being built and delivered. It's in ramp up now, and I think I've flagged in the quarter that, you know, it with a couple of early commissioning issues they had to work through, we certainly lost a little bit of time. I wanted to put some numbers to it to just try and give you some context, and the specifics of the numbers are meaningless. It's more about the direction that we see in the way it performs.

Next slide I guess just points to say you'd be three and I thought I'd spend a minute just talking to.

What we're seeing in the early days that's in each of the asset as it's being built and delivered.

It's in ramp up now and I I think I flagged in the quarter that you know with a couple of.

Early commissioning issues they had to work through we certainly lost a little bit of time I wanted to put some numbers to it to just try and give you some context and the specifics of the numbers are meaningless, it's more about the direction that we see in the way performs we expected in January for it to deliver about 7000 tons seven kiloton.

Ivan Vella: We expected in January for it to deliver about 7,000 tons, 7 kilotons, and it delivered a fraction of that because of those delays. Time offline, time remediating and fixing things. In February, the plan was that we would hit 11 kilotons, and this is the natural early ramp-up, allowing for commissioning, for checks, for issues, et cetera. Halfway through the month, they've already passed that number. And so what we're seeing, and, you know, I was reluctant to share too much in the first update in the quarter because we just didn't have enough runway to see what was going on and see if the asset was gonna, gonna perform, but we are starting to really get a better feel.

And it delivered a fraction of that because of those delays.

Tom offline, Tom remediate fixing things in.

In February the plan was that we would hit 11 Kilotons and this is the natural early ramp up allowing for commissioning for checks for issues et cetera.

Through the month I've already passed that number and so what we're saying and you know I was reluctant to share too much in the first update and Nicole because we just didn't have enough runway to see what was going on and see if it was going to kind of perform but we are starting to really get a better feel very early and you got to be super careful calling these things, but I'm just.

Ivan Vella: Very early, and you've got to be super careful calling these things, but I'm just trying to give you a flavor that certainly the indicators are positive. We've seen a 24-hour period of 1,000 tons of production, 60% average recoveries, which at this stage, you know, ramp up, anyone who knows lithium would be going, "Wow, that's very impressive!" And con grade above 5.5 up to 6. So we're hitting the grade there and hitting the recoveries already. So the team's getting all the right indicators and signals.

To give you a fly visit suddenly the indicators are positive we've seen a 24 hour period at 1000 tonnes of production, 60% average recoveries, which at this stage you're in a ramp up anybody knows with him would be going Wow, that's very impressive and con.

Con grade above <unk> 45 up to six so we're hitting the ground there and hitting the recoveries already saw the teams getting all the right indicators and signals that's upside the jobs done, but I think you know when we're sitting here.

Ivan Vella: That's not to say the job's done, but I think, you know, when we're sitting here, in the you know just after the half in in February, that's, that's certainly encouraging and gives the team some good, clear data to work with and focus on the rest of the ramp-up as we, as we continue this year. We'll provide more updates as they come, certainly through the quarterlies, and if there's, you know, more called for in between, we'll, we'll certainly do that, but the early indications are quite positive. The optimization update on slide seven will give you a, you know, a little bit of color there on that work that's ongoing. You've all seen, I'm sure now, the resource and ore reserve estimate that we provided recently.

In the just.

Just talk to the half and in February.

That's that's certainly encouraging and gives us some some good clear data to work with and focused on are the rest of the ramp up as we as we continue this year.

We will provide more updates as they come certainly through the core lease and if there's more.

More cold fall in between we'll certainly do that but the early indications are quite positive.

They.

Optimization update on slide seven gives you a little bit of.

Color there on that work that's ongoing.

You've all seen I'm sure now the raise it resorcinol reserve estimate that we provided are raising money, we timed that to link up with a malls as Guy said 100 report as I do that on a thoughtful as we do with the reserve resource Reserve Resource report.

Ivan Vella: We timed that to link up with Albemarle's SK-1300 report. As you know, they do that on that cycle, as we do with the reserve resource report. Due to the timing, they picked up some of the changes in the pit shell and so on, and that's why we basically adjusted the timing of our report just to match that, to make sure the market was updated consistently across the different investor groups... The work's not complete, so, you know, I think you could treat that as a mark in time. It shows you progress, shows you direction, shows you the magnitude or the nature of the changes that we're making through the optimization.

Due to the the timing they picked up some of the changes in the pitch Helen and so on and that's why we basically adjusted the timing of our report is to match that to make sure the market was upside to consistently across the different investor groups.

The work is not complete so you know I think you could treat that as a marketing time. It shows your progress chassis direction shows you the magnitude or the nature of the changes that we're making through the optimization. There is still a lot to do and as you can appreciate our covenant persons cannot only.

Ivan Vella: There is still a lot to do, and as you can appreciate, our competent persons can only report or sign off on things that have sufficient confidence, which generally means a study and all of the backing and the data to support it. And so there is clearly a whole bunch of other work that's going on that we can't report on yet. I can't speak to it yet. When it's ready, we'll certainly report and share that. We're proud to be able to share the changes. I'm very excited to see, you know, what's coming through. But what we have seen, obviously, is a snapshot part way of the things that we could talk to, where we've done enough geotech assessments and other work on the ore body.

Reportable or sign off on things that have sufficient confidence, which generally means a study and and all of the backing in the data to support it and so there is clearly a whole bunch of other work that's going on that we can't report on yet.

Stay tuned yet when it's ready we will certainly report and say that we're proud to be able to share the times I'm very excited to see what's coming through but what we have seen obviously is a snapshot part why are the things that we could talk to where we've done enough to take assessments and other work on the ore body.

Ivan Vella: Some big highlights there, of course, that new underground resource, which I think everyone talked to, thought about, reflected on, now we've put some shape to it, and we'll continue to refine that, develop that, and draw it out. We expect that to be at the back end of the mine schedule, based on what we're seeing. More on that to come as we go, but certainly, nice to see that the team at Talison has done enough work to be able to define that resource. Obviously, that's also meant that we could really tighten up the open pit mine, and with steeper wall angles. Actually, you know, the critical thing here is surface more metal. So just shy of 10% more metal that we surface with a much lower strip ratio.

Some big highlights there of course that you underground resource, which I think everyone talked to thought about reflected on a name we've put some shape to it and we'll continue to refine that develop at and.

And draw it out we expect that to be at the backend of the mine schedule based on what we're saying more and more on that to come as we go but certainly nice to say that the team at <unk> has done enough work to be able to define a resource.

Obviously, that's also meant that we could really tighten up the <unk> open pit mine and with steeper wall angles actually now the critical thing here is if a small metal side, just shy of 10% more metal that we surface with a much lower strip price tier those are the kind of structural changes that you want to see when you go into these optimizations because you really add.

Ivan Vella: Those are the kind of structural changes that you want to see when you go and do these optimizations, 'cause you're really adding material slabs of value. There's still a lot of work to do around it in terms of our operating productivity, performance, cost, all of the support elements of water and tailings and so on, all still work in progress. But, you know, something as important as waste management, waste storage for all the ore waste, or mine waste that comes off the ore body. That changes dramatically when you reduce the strip ratio to the level we have. All of that requires a lot of rethinking and replanning. Of course, it changes our costs, our CapEx, et cetera, and that's work that we've still got to get through.

Materials slabs of value, there's still a lot of work to do around it in terms of our operating productivity performance cost all of the support elements of water and tilings and saw and also work in progress, but you know something is as important as wealth management.

Storage for all the Oh waste.

Oh, Oh, my wife's that comes we'll see the ore body.

That changes dramatically when you reduce the strip ratio to the level, we have and all of that requires a lot of rethinking and re planning.

Of course, it changes that costs are capex et cetera, and that's work that we've still got to get through.

Ivan Vella: So the point, just to reinforce what we've said in that resource reserve, is a snapshot of in time. It's far from complete. It's not something that you should delve into and assume that's the end of the work that we're doing. It's certainly not. The team's got a lot more in front of them, and as that work reaches that level of certainty and clarity and studies are done, then we can come back and share more with you. I'll move on from there, and I wasn't gonna talk in any more depth to Kwinana. We can touch base on that in Q&A if need be. But just looking forward, I would put a slide in on growth just to sort of refocus.

One of them and as that work is.

Is that level of certainty and clarity in studies of them then we can come back and share more with you.

Yeah.

I'll move on from there and I wasn't going to talk in any more depth to Coronado, we can touch base on that in Q&A, if need be but I'm just looking forward I would put a slotting on growth just to sort of re fi because nothing new here doesn't change from where we've been since we refresh the strategy, but coming back to that.

Ivan Vella: Nothing new here, doesn't change from where we've been since we refreshed the strategy, but coming back to that, a focus on that full life cycle, discover, develop, and deliver across the battery materials that the world is depending on, and a big focus on lithium and copper, and I think I've explained why we think those two are so complementary. Nickel, far from off the list, it's just much harder to see the return expectations that we have, but you know, if we found another Nova, that would be delightful. In terms of delivery approach, those themes again continue. Nothing new here. I think we continue to have conviction that our technical capabilities, our approach, and our operations capability embedded in the playbook and our willingness and ability to partner well with others is key to success here.

Our focus on that full lifecycle discover develop and deliver across the battery materials that.

The world is depending on it and a big focus on lithium and copper and I think I've explained why we think those two are so complementary nickel far from off the list is just much harder to see the return expectations that we have thought.

We found another over that would be delightful.

Turning to delivery approach those things again continue nothing new here I think we continue to have conviction that al.

Technical capabilities.

Our approach and our pricing capability embedded in our playbook, and our willingness and ability to partner well with others is key to success here.

Ivan Vella: They're all elements that will come together in anything we do in any growth. And, you know, at the core of it is being very disciplined with capital. We're conscious of the high returns that we receive from Greenbushes, and the last thing we want to do is dilute the business by getting into or investing in a project, an asset that doesn't offer appropriate returns. That's hard, but that's a challenge we keep pushing for ourselves, and we continue to look through that lens. Naturally, that takes us to Greenbushes being, you know, a very important place to deploy capital and focus our reinvestment. And through the optimization work that's going on, we'll naturally surface what that looks like, what that growth is. CGP4 is naturally on the list.

They are all elements that will come together and anything we do in our growth.

And at the core of it is.

It's totally a greenbush is being.

Very important place to deploy capital in FICA cell area reimbursement and through the optimization work, that's going on will naturally surface.

What that looks like what that growth is C. D people is naturally on the list it'll have its place in time, we'll figure out exactly where and how that looks and that's the kind of very good capital that we can allocate in vehicles.

Ivan Vella: It'll have its place in time. We'll figure out exactly where and how that looks, and that's the kind of, you know, very good capital that we can allocate in due course. Lastly, just an outlook on, you know, where we're focused on priorities this year and into next. Greenbushes, we've talked about, and unlocking that is getting huge attention. The team's very focused on partnering with the other JV members and with Talison to do what we can and contribute as we can to support them and unlock all that value. Kwinana, look, really no changes, nothing new there. We continue the discussions with TNC to find that pathway where we're, you know, we're in a place that our shareholders find acceptable.

Lastly, just an outlook on where we're focused and priorities this year and into next screen bushes. We've told.

And unlocking that is getting huge attention the teams very focused on partnering with the other.

JV.

Members and with Talisman to do what we can and contributed as we can to support them and unlock all that value.

On a really nice change is nothing new there we continue the discussions with TNC to find that pathway.

We were in a in a place that our shareholders are found acceptable Nova continue what we're doing safe stable operations to the end of mine life, which is the end of this year exploration and as I said I'll get John on the coal for a diet.

Ivan Vella: Nova, continue what we're doing, safe, stable operations to the end of mine life, which is the end of this year. Exploration, and as I said, I'll get John on the call for a broad date in the next quarter or two to talk to the work he's doing. He's working through the prospective targets that we've got, and there's more this year in the lithium space. Generation of new targets around predominantly copper, and it's mostly offshore, as you'd expect, in good jurisdictions. They're making some very good progress, and again, we can update as needed.

In the next quarter or two to talk to what he's doing and he's working through the prospective targets that we've got and there is more this year in the lithium space generation of new targets around predominantly copper and it's mostly offshore as you would expect in good jurisdictions. They are making some very good progress and again, we can update us.

As needed.

Ivan Vella: You know, real shift in approach here on fail fast, very targeted and really leveraging the capability to, to drive to new return results rather than that very, broad greenfield exploration that IGO had been pursuing for a long time. And I've talked to strategy and growth, which, you know, will continue to be highly disciplined, as we've shown over the last two years, in the way that we approach those things. So that's, that's all I really wanted to cover at this point. I think that sort of sets out the key points for the business. Let's open up the Q&A, and then we'll go from there.

In a real shift in approach here on file fast.

Very targeted and really leveraging the capability to drive to near term results rather than that very broad Greenfield exploration that you had been pursuing for a long time.

And I've talked to strategy and growth.

We will continue to be highly disciplined as we've shown over the last two years in the way that we approach those things.

So that's some.

That's all I really wanted to cover at this point I think that's sort of.

Sets out the key points for the business, let's open up for Q&A and then we'll go from there.

Operator: Thank you. If you would like to ask a question, please press the star key followed by the number one on your telephone keypad. If you would like to cancel, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. A reminder today to please limit your questions to two per person. If you have more questions, feel free to rejoin the queue. Your first question today comes from Levi Spry from UBS. Please go ahead.

Thank you if you would like to ask a question. Please press the star followed by the number one on your telephone keypad. If you would like to cancel please press star two.

If you're on a speakerphone please pick up the handset to ask your question.

A reminder, today to please limit your questions to two per person. Thank you.

You have more questions feel free to rejoin the queue.

Your first question today comes from Levi Spry from UBS. Please go ahead.

Levi Spry: Good day, Ivan. Thanks, thanks for your time. Maybe if we can just spend a little more time on the reserves and resources update. I guess, can you maybe just step us through, you know, what the sequence of the next projects that will be addressed in the bigger, bigger plan that comes out later this year, and how we think about that, you know, in relation to the prospect for dividends from TLEA? Obviously, the context here is prices are recovering. We're talking about growth projects with all of your peers. You've got one that's turning on, but what's the next one?

Yes.

Thanks, John plant, maybe if youre going to spend a little more time on reserve and resource update I guess can.

Can you maybe just step us through.

What the sequence of the next projects that will be addressed in the b.

Yeah.

We get planning that comes out later this year and how we think about that.

License and the prospects for dividends from CLA.

Obviously the context here is.

Crosses recovering we're talking about growth projects with all of your peers.

You've got one that's turning on but what's the next one.

Ivan Vella: Okay. Thanks, Levi. Yeah, great way to place the focus. You know, let's talk and, and I'll separate it to two parts of the question, the dividend from the, the focus and the, the optimization work we're doing. The good news in Talison or Greenbushes is, that you've got an asset base there that has never run at full potential, in fact, far from it. And so, the very best capital or the very best projects you can ever hope for in mining is where you've got large plants or other assets that are running, you know, below full potential, below their capacity, and you've got a market that will take it. And we know the market's in a good place, and that's great news.

Okay. Thanks, Levi Yeah, great light a place of focus.

You know lets talk.

Separately two parts of the question the dividend from the cycle.

The optimization work we are doing.

The good news in.

Towson or green boxes is that you've got an asset base that has never run at full potential in fact far from it and so the very best capital on the very best projects. You can have a high four and mining is where you've got large plants or other assets that are running.

<unk> full potential blood blood a capacity add.

And you've got a market that will take it and we know the market is in a good place and that's that's great news.

Ivan Vella: You know, our customers have had strong pull for any tons we can produce, and in fact, would love to have seen more already this year, so there's no issue there. And so it's, you know, you look back into the business and say: What can we do with CGP 1 and 2? What can we do with that tailings retreatment facility and tech grade plant? How do you leverage those and drive them harder? And so that, you know, very basics, runtime, so getting the asset to perform better, getting it healthier, getting more consistent performance from it.

Customers have had strong pool for any times, we can produce and in fact would love to have seen more already this year.

Now we see there.

So it's you know you look back into the business and say what can we do with CGP want them too what can we do with that tailings re treatment facility and take rate plan, how do you leverage daus and drive them harder and saw that very basics run time, so getting the asset to perform better getting healthier.

Getting.

More consistent performance from it.

Ivan Vella: Secondly, is throughput, and making sure that the tons per operating hour without losing recoveries is moving, and that's tuning, refining the ore feed, doing better on fragmentation, doing better on the blend, managing that across three plants, which do take slightly different feed grades. And then, equally, running the plant well. I mean, there's a link there with the uptime and the general asset reliability. You'll get better throughput if it's running more consistently. And the last lever, of course, then is recoveries. And that, you know, it's a function of head grade for sure, but it's also a function of all of the good technical work the team's doing on improving recoveries through a whole range of strategies. They've got some very deep capability. They perform very well.

Secondly, as throughput and making sure that the tons per operating hour without losing recoveries is moving and that's tuning refining the oil fade.

Doing better on fragmentation doing better on on the blend managing that across three plants, which do take slightly different feed grades.

And then.

Equally running the plant well I mean, there's a link that with the uptime and the general asset reliability, you'll get better throughput if it's running more consistently in the last labor of coal thinness recoveries and that.

That's a function of head grade for sure, but it's also a function of.

All of the good technical work the team's doing on improving recoveries through a whole range of strategies.

They've got some very deep capability I performed very well a lot of it they protect very closely for good reasons, because I think the the IP and experienced built up there really is a standout and.

Ivan Vella: A lot of it, they protect very closely for, for good reasons, because I think the, the IP and experience built up there really is a standout and, you know, there's, there's a lot of work happening there to, to continue to lift recovery. So bringing those three levers, focusing on those existing plants and uplifting their, their output is key, and that doesn't cost a lot of capital. Don't get me wrong, there's pieces of capital along the way, but it's very different to something like CGP4, which is a fundamental change of project. Now, that doesn't mean to say that the tons that you receive there are just incremental, tiny, tiny pieces.

There's a lot of work happening there to continue to live coverage, so bringing those three layers focusing on those existing plants and uplifting there theyre at port is key and that doesn't cost a lot of capital that can be wrong. This pieces of capital along the way, but it's very different to something else said, you before which is a fundamental China North project now.

Now that doesn't mean aside that the tons that you received there are just incremental tiny tiny pieces can be quite substantial and I think anyone who has been around the industry for a while now that assets older assets that are not being pushed and run to the best can actually offer quite a lot. So that's the first call.

Ivan Vella: It can be quite substantive, and I think anyone who's been around the industry for a while will know that assets, older assets that have not been pushed and run to their best can actually offer quite a lot. So that's the first goal. Supplementing that will be then other projects we can do that basically just give those assets an uplift, supporting it, and I, and I think the tailings retreatment's an example where as we work through the available tailings, which we think will extend out beyond what we'd said, and I think we've pointed to, to some of that in the report. When- That will ultimately finish, when it does, then how do we repurpose that facility to maintain that capacity and continue processing, fresh ore in front of it?

Supplementing that will be then other projects, we can do that basically just keep those assets an uplift supporting it and I think the timing is for treatments of an example, where as we work through the available tilings, which we think will extend out beyond what we'd said and I think we've pointed to some of that in the report.

When but that will ultimately finish when it does then how do we repurpose the facility to maintain that capacity and continue processing.

Fresh ore in front of it.

Ivan Vella: And then, of course, you come, if you, if you've dealt with all of those elements, you come to CGP 4, which would be the next logical plant, to build. And, you know, we, we haven't finished the work to say, well, what is the natural run of mine? What's the pace at which that mine can run and feed and deliver? I don't think that's anything new. I've sort of shared those elements before and, I think as we get further into it, we get closer to the detail and what's required.

And then of course, she come if you've if you've dealt with all of those elements.

You come to CGP for which would be the next logical plant to build.

And we haven't finished the work to say well what is the natural run of mine, what's the pace at which that Ron can run and fade and deliver.

We certainly think there's scope for CGP full but maintain these to finish that study work and really understand how that's going to fit what the value equation is and then work out the timing.

I don't think that's anything you are sort of shared those elements before and I think as we get further into it we get closer to the detail on what's required. That's the work that I'm really looking forward to be able to report back more specifics when the teams finished.

Ivan Vella: That's the work that I'm really looking forward to be able to report back more specifics when the team's finished, to give you a sense of what does that do for, for tons and for cost, and so on, across the asset. There's also a piece of work there going on, just general productivity. So running that mine in a better way, improving truck productivity, improving drill and blast fragmentation, generally making that mine perform better, gives us confidence, obviously, to run the asset, the plants harder, but it also lowers our costs net-net, both in terms of strip and in our normal mining process.

To give you a sense of what does that do for full tons and forecast and so on across the asset.

There's also a piece of what's going on just general productivity, so running that mine in a better way.

Improving truck productivity, improving drill and blast fragmentation gen.

Generally making that mine performed better.

It gives us confidence obviously to run the assets the plants harder, but it also lowers our costs net net both in terms of strip and in.

Normal mining process.

Ivan Vella: Beyond that, there's of course a focus on productivity across the business, which is just, you know, managing our cost tightly, really, improving our underlying systems and processes to make that business stronger. So that's the work that's underway. Now, coming to your point on dividend, I don't see. You know, look, I don't have a crystal ball to start looking at what the market's gonna do, but I don't think, you know, it's not gonna be cyclical. It will be. It will be up and down, and that's fine.

Beyond that is of course.

Our focus on productivity across the business, which is just managing our cost tightly.

Really improving our underlying systems and processes too.

To make that business stronger.

So that's the work that's underway now coming to your point on dividend.

I don't see you know I.

Don't have a crystal ball to start.

Looking at what the market is going to do but I don't think.

It's not going to be cyclical it will be it will be up and down on and Thats. Fine. This is a mine that has demonstrated that through the cycle. It's still generally generates cash and I see no reason to think that we have to withhold lodging.

Ivan Vella: This is a mine that has demonstrated that through the cycle, it still generates cash, and I see no reason to think that we have to withhold large amounts of cash in Winfield, meaning no dividends out of Winfield, due to the growth plans that we have there. I just don't think that that makes sense. So that's certainly not something that I'd be looking at. You know, this is a business and probably one of the few, if not only, lithium operations in the world, that actually produces cash through the cycle and pushes that cash out to its shareholders through the cycle. That's what makes it such an attractive asset, such a powerful asset in this context.

Large amounts of cash in in Winfield.

No dividends out of Winfield due to the the growth plans that we have there I just don't think that that makes sense.

And so that's certainly not something that I'd be looking at this as a business and probably one of the few if not only lithium operations in the world that actually produces cash through the cycle and.

Pushes that cash out to its shareholders through the cycle and.

That's what makes it such an attractive asset such a powerful asset in this context I think through the current period that we're in now it's very favorable pricing, we're seeing that flow through and obviously the cash balance will build quickly and we'll then look at that thoughtfully and take a view on the scale and timing of dividends. We've also.

Ivan Vella: I think through the current period that we're in now, some very favorable pricing, we're seeing that flow through, and obviously, the cash balance will build quickly, and we'll then look at that thoughtfully and take a view on the scale and timing of dividends. We've also talked on the quarterly, I think, about the how we might think about paying down debt, and that we would take into account. But you know, there's certainly no intent sitting here that we would retain that cash inside Winfield. That just doesn't fit with the way that we look at the business. Hopefully, that's covered it, Levi. I know I've talked a bit around a few aspects there. Does that sort of hit your question?

I told you on a quarterly I think about that.

How we might think about paying down debt and that we would take into account but.

There's certainly no intent sitting here that we.

We would retain that cash and so I wouldn't feel that just doesn't it doesn't fit with the way that we look at the business.

Hopefully that's covenant they've also have told to bid around a few aspects there or is that sort of hit your question.

Levi Spry: Sort of. I guess, what about inventories? Like, specific, you mentioned specifics, can you talk about inventories? So what are they at site? What's the plans to flush the sheds out, empty through this calendar year? What are they now?

So it's sort of.

Yes.

What about inventories like specifically I know you mentioned specific screening talk about inventory so what all that start.

The plan is to foster shifts at.

Empty.

The.

What all of that now.

Ivan Vella: What, what are you talking about spodumene inventory?

What are you talking about spodumene inventory.

Levi Spry: Yeah. So talking about how the tier one asset behaves through the cycle, hasn't necessarily, you know, been running at, you know, like a tier one asset might necessarily behave, and, you know, holding back material. So where is it now?

Yeah, so talking about it and I'll have a tier one asset behavior through the cycle hasn't necessarily.

<unk> been running it.

Yeah, like a tier one asset not necessarily.

The hives.

Holding back materials, whereas it now.

Ivan Vella: Look, I could look it up. I don't know off the top of my head what the inventory is, but, I mean, there's no holdback. I think, your, your comments there, that it has not run as a tier one asset or, you know, it hasn't run as well as it should. Agreed, we're working hard on that. I expect, you know, quarter-over-quarter, we're gonna demonstrate that. But, you know, when we're, when we're having inventory build up and down or shipments that... or, you know, sales and shipments that vary quarter to quarter, that's purely about shipment timing and the port facility. There's no, intention to hold back or change there. No one's playing with the inventory. It's purely about a complex supply chain in the southwest of WA that we need to manage.

Oh look I could look it up on and off top my head what the inventory is but I mean, it's not hold back I think your comment said that it has not run as a tier one asset or you know it hasn't run as well as it should have great and we're working hard on that and I expect quarter on quarter, we're going to demonstrate that but when.

When we when we're having inventory build up and down all the shipments that sales and shipments that vary quarter to quarter, that's purely about shipment timing in the port facility.

No.

Intention of hold back or change there and I was playing with the inventory it's purely about a complex supply chain in the southwest the Wi that we need to manage.

Ivan Vella: And, you know, when ships move and when they don't move. Look, you know, they'll continue to refine that. Naturally, we try and move every time we can. There's no intent to hold inventory in Spod, and sometimes that runs in our favor, and recently we had a shipment that moved a quarter, you know, moved across a quarter line, and that will pick up a much more favorable price, and that's nice, but that wasn't intentional. That's really just a function of how the port's running and the trucks and so on.

And when should smooth and when they die move.

Look you know that will continue to refine that naturally we try and move every time, we can there's no intent to hold inventory.

And spot and sometimes that runs in that fiber and Grayson language shipments that moved at quarter end or moved across a court of law and that will pick up a multiple favorable price and that's nice but.

That wasn't intense in all of that is really just a function of how the ports running and the trucks and so on.

Operator: Thank you. Your next question comes from Austin Yun from Macquarie. Please go ahead.

Thank you. Your next question comes from Austin Young from Macquarie. Please go ahead.

Austin Yun: Morning, Ivan. First one is on the discussion on Kwinana, like as you mentioned during the opening remark, Kemerton has put on kind of maintenance and your peer Pilbara Minerals also made a comment just saying that Australia doesn't have an ecosystem to support the downstream. Seems like, you know, these issues are well known, I know you've been flagging it for quite a long time. Just keen to get more color on this. If you can, could provide any commentary on the potential options that are being contemplated or discussed with your joint partner on this, the future of Kwinana. Thank you.

Funny I've.

First of all eyes on the.

Discussion on Coronado like as you mentioned.

Pocono remark comments.

I put all kind of maintenance and.

You pay it because I mean, it was also made a comment saying that Australia doesn't have the ecosystem to support the downstream.

I'm, just saying, it's like you know.

It's usually with a one off.

And I know you'll be collecting that for quite a long time, just keen to get more color on these.

If you could provide any commentary on the potential options that are being contemplated out Scott with your JV partner I don't think so.

The future of Coronado. Thank you.

Ivan Vella: Yeah. Look, Austin, look, I can't really speak to that. I mean, it's ongoing discussions, something that's still private between us. I mean, we've not been fixed on anything. As I think I've said to our investors, on several occasions, you know, our focus is on net cash. The last thing we want is more cash to be poured into an asset we don't believe has an economic future. We've impaired it fully, we've been clear about our position, and we've said, you know, to achieve that, there are various pathways. We're not fixed on one. What we are fixed on is, as quickly as possible, reducing any cash that goes towards that asset on a net basis. And, you know, you can imagine there's different ways of achieving that. TNC has maintained a different view.

Yeah, Austin look I can't really speak to that I mean, it's ongoing discussions something thats still so private to join us.

No paying fixed on anything I was I think I've said to our investors.

On several occasions, our focus is on net cash the last thing we want is more cash to be put into an asset. We don't believe as a as an economic future. When you embed it fully we've been clear about our position and we've said to achieve that there are various pathways.

We're not fixed on one what we ask Stan is as quickly as possible, reducing any cash that goes towards that asset on a net basis and.

You can imagine there's different ways of achieving that TNT has maintained a different view.

Ivan Vella: You know, we, I think we can, you know, all take that in and ask lots of questions, and I recommend that or and suggest that you, you know, you continue to pursue that with them. Ask them for the basis for their decision-making. I think the Albemarle decision, just in my mind, points to the challenges that we see in the sector, in this region in Australia, and I don't think that was all that surprising, to be honest, given where we see costs and what it takes. And, you know, ultimately, it's a very, very competitive industry because China does this so well. They perform extremely well, they produce at a very low cost, and it's effectively a tolling business, and you'll make a margin on that tolling business.

I think we can all take.

Take that in and ask lots of questions and I recommend that.

<unk> you.

Continue to pursue that with them ask ask them for four out of the basis for their decision, making I think the Albemarle decision just.

And my main points to the challenges that we see in the in the sector in this region and Australia and.

I don't think that was all that surprising to be honest, given where we see costs similar to types of.

And you know ultimately, it's a very very competitive industry, because China does as well die they perform extremely.

Greenlee, well that produce very low cost and it's effectively a tolling business and youll make a margin on that tolling business, you're not going to see some excess rents unless there was some massive shortage of capacity, which I guess no one no one sees coming Si.

Ivan Vella: You're not gonna see some excess rents unless there was some massive shortage of capacity, which I guess no one, no one sees coming. So, you know, I struggle to see how you would ever justify the materially higher costs in Australia for the same work against China and, you know, make that work in a global marketplace. That's not dissimilar with other commodities, and, you know, I think we've seen the same with something like aluminum. It's really, really difficult to compete unless you've got some other structural advantage, like your power costs or something else that supports you. So, yeah, that's, I guess, just, you know, covering the points again, Austin, but, I, unfortunately, I can't get into the specifics of the options or the pathways we're discussing with TNC in any more depth.

Struggled to see how you would ever justifies a materially higher costs in Australia for the same work against China and make that work in a global marketplace.

That's not dissimilar with other commodities and you know I think we've seen the sign with something on <unk>, it's really really difficult to compete unless you've got some other structural advantage Lockheed power costs or something else that supports your si.

Yeah, that's I guess, just covering the points again Austin, but.

Unfortunately kind of getting into the specifics of the options of the pathways were discussing with TNT and any more depth.

Austin Yun: No, no worries. Thank you. And the second question is just on the reserve and resource update. In that document, there's a production or constant production profile of the life of mine, and I think in calendar year view. And if I look at that number, it indicates that the current financial year production is could be tracking below the previous guidance. Just want to get some update on that, given the recent performance at the CGP3. What's your latest view on the mining and the production performance from Greenbushes? Thank you.

No no. Thank you and the second question is just on the reserve and resource update.

In that document.

Production or production profile.

Sure.

And I.

I think it's in calendar <unk> calendar year.

If I look at that number that indicates that the.

The the kind of finish year production it could be tried tracking below the.

Previous guidance just wanted to get some update on that given the recent term.

C G P. Three.

What's your latest view on the.

Mining production performance with Bush's thank you.

Ivan Vella: Yeah, thanks, Austin. Look, yeah, the year is certainly running at the low end of guidance. You know, no question, I call that out in the quarterly. It's good to see CGP three starting to find its feet very early, so it's hard to rule that out too far. But, I mean, certainly, if we were seeing other issues, more and more issues come up, that would really give me, you know, cause for concern. At this point, you know, we're not changing our guidance. Yeah, the team's still got plenty of work to do in front of them. But, you know, and it's, we talked about the grade factor through Q1 and, you know, partly in Q2, that naturally flows through, and that's what we're seeing.

Yeah. Thanks, Austin looked at you know the Euro is certainly running at the low end of guidance.

My question I called that out in the quarterly.

It's good to see you say GBP three starting to find its very early so it's hard to draw that out too far but I mean, certainly if we were saying other issues more and more issues come up that would really give me.

Of course, a concern at this point, we're not changing our guidance.

At the same still got.

Plenty of work to do in front of them, but with and as.

We told you about the great factor through Q1 and partly in Q2.

That naturally flows through and that's what we're saying those grades do move around based on where you are in the ore body and we can reconcile back to.

Ivan Vella: Those grades, you know, do move around based on where you are in the ore body, and we can reconcile back to, you know, to the impact from that in our production so far this year. I think the piece that I'm looking forward to seeing is the productivity work that is going on, and we are seeing, you know, good, good effort and good progress there. I want to see that translate into hard production. And, you know, I know Rob's working very hard with his team to do that because that's the thing that will, will move the dial very quickly and, as that starts to flow through. But there's, you know, they're doing the work. We, it's partly a bit about being patient at this stage.

So the impact from that in our production so far this year.

I think the piece that I'm looking forward to seeing is the productivity work that is going on and we are seeing.

Good good effort and good progress there I don't want to see that translate into hard production and.

Rob is working very hard with these tend to do that because that's the thing that will move the dial very quickly and as that starts to flow through but.

They're doing the work, it's probably a bit about pain patient at this stage.

Ivan Vella: You know, CGP 3, we took a view on what we thought that ramp up would look like, obviously, when we set guidance before the financial year. And, you know, I've been open that we are starting that ramp up later, and it did have some early disruption that, of course, we didn't anticipate fully in our guidance. So that, you know, puts us at the bottom end. But, we'll continue to work closely with the team and, and, you know, watch them deliver. We still are maintaining a focus that we'll land around the end of, around the bottom end of guidance.

Hum.

So you'd be three we took a view on what we thought that ramp up would look like obviously, when we set guidance before the financial year.

And.

I'll open that we are starting that ramp up of lighter and it did have some early disruption that of course didn't anticipate fully and out in our guidance so that.

It puts us at the bottom end.

But we.

We will continue to work closely with the team in and watch them.

We still are maintaining our 5% will land around the end of around the bottom end of guidance.

Operator: Thank you. Your next question comes from Khan Pica, from RBC Capital Markets. Please go ahead. Thank you, Khan. Your line is now live.

Thank you. Your next question comes from Comed Peco from obviously capital markets. Please go ahead.

Thank you John Your line is now live.

Kaan Peker: Sorry, I was on mute. Yeah, good morning, Ivan and Cath. On the recent Greenbushes resource and reserve update, it sounds like some of those initiatives of the optimization study work are being incorporated in reserves. On the life of mine strip ratio decreasing about 30-odd%, how confident are you that these are sustainable through the deeper zones of the central lode? And sounds like ore sorting is being considered. What work's being done? And I think the resource and reserve suggests starting in 2027. Is that feasible?

I'm, sorry, I had it on mute.

Yeah, Good morning, Ivan and Kathy on the recent Green bushes resource and reserve update.

It sounds like some of those initiatives are all the optimization study, where it can be incorporated and reserves are.

On the life of mine strip ratio doing crazy about 30 odd percent. How confident are you that these are sustainable through the deeper zones of the central loan and it sounds like all sorting is being.

Considered what work's being done and I think there was also a reserve suggests starting in 2027 is that feasible.

Ivan Vella: Yeah. Thanks, Khan. Look, you know, this is obviously, yeah, as I said, a first pass, and there's a lot of work going on across the mine in, in a lot more detail, looking at all characterization, our specs, further drilling, you know, much better reconciliation processes. There's a lot of changes that Rob's driving through the mine. So, you know, all of those elements will be focused on being able to deliver and maintain a lower cost, performance in the mine, better productivity, but also give us confidence that we can, we can hit the, the mine plan as, as it's shaped up. So I don't, you know, I don't think there's any reason for you to, to think, oh, well, that's a, you know, an ambitious target. It's, it's not.

Yeah.

Thanks Carlos.

This is obviously.

Yeah, as I say, the first Pos and Theres a lot of work going on across the mine in a lot more detail looking at old characterization aspects.

Further drilling.

Better reconciliation processes, there's a lot of changes that Rob scrubbing through demand so.

All of those elements will be focused on being able to deliver and maintain lower cost performance and demand better productivity, but also gave us confidence that we can we can hit the the mine plan as it shaped up.

So I don't you know I don't think there's any reason for you to to think all of that.

An ambitious target it's not I think it's based on Gucci Tech assessment are good.

Ivan Vella: I think it's based on good geotech assessment, a good review of the mine plan, that, you know, fundamentally, Talison had been running off a very old and long-dated approach. It hadn't been challenged. It didn't need to be challenged because the mine was so profitable and performed from a cash point of view so well. But it was just leaving, you know, value behind, and I think this is the first big example we've sort of pointed to as saying, "Hey, rethinking this, bringing in some fresh eyes can really change the game." So that's coming. I think the broader, you know, performances of the asset, you know, as they ramp up, we'll also start to see, you know, a better sense of how those plants can perform.

Review of the mine plan that you know fundamentally tell us and had been running off a very old and long dated approach that hadn't been challenged that didn't need to be challenge because the mine was profitable and performed from a cash point of view said well, but it was just leaving value behind it and I think this is the <unk>.

For example, we've sort of pointed to assign high rethinking this bringing some fresh eyes can really change the game. So that's coming.

I think the.

[laughter].

Yes.

The broader.

Performance of the asset.

As I ramp up will also start to see.

You know of a better sense of how those plants can perform.

Ivan Vella: And, you know, coming to the ore sorting, we know that works technically, so it's a much simpler process than, say, sorting a, you know, copper ore feed. Lithium feed is largely black and white, so it's more straightforward. There's still a lot of questions around maintainability and performance at scale. You know, one of our competitors has been focused on this for a while now and seeing some results....

<unk>.

Coming to the ore sorting, we know that that that works technically.

It's a much simpler process since ice holding.

Copper or fade.

Lithium.

<unk> is largely black and want so it's more straightforward, there's still a lot of questions around maintainability and performance at scale.

One of the competitors as being focused on this for a while now and seeing some results were in study mode. So we will you know, we're working through that and looking at how and.

Ivan Vella: We're in study mode, so we'll, you know, we're working through that and looking at how and, you know, what approach we would take to try and implement it, where it fits in your body, so how it manages some of the more complex sections of the mine, which we know are coming, and the value uplift that we can get there, obviously through that sorting process and how that improves the performance of the plant. So there's a few pieces that come together there. The mine plan, as that's recut, the plant performance, getting better feed and, you know, more consistent feed, and obviously, ore sorting is one of the tools that helps us do that. It needs to fit with very good mine mine planning, drill and blast to get your fragmentation more consistent.

You know what price you would type to try and implement it where it fits in the ore body. So how it manages some of the.

More complex sections of the mine, which we know are coming.

And the value uplift that we can get there obviously through that sorting process and how that improves the performance of the plants. So there's a few pieces that come together there. The mine plan is that rig count the plant performance getting better fade and more consistent fade and obviously ore sorting as one of the tools that helps us do that.

It needs to fit with very good mine mine planning drill and blast to get your fragmentation.

More consistent so there's a number of other pieces it plugged together, but I guess to bring that aims to have a clause.

Ivan Vella: So there's a number of other pieces that plug together. But I guess to bring that answer to a close, you know, I think, ore sorting does have a place. We'll see what the studies tell us and the economics, and how much of an uplift in performance we think we can get from it. And that's work that will come through this study process at the moment.

I think.

Ore sorting does have a place we'll see what the studies tell us and the economics.

And how much of an uplift in performance. We think we can get from them and that's work that will come through this study process at the moment.

Kaan Peker: Cool. Thank you. And then the second one's more around the TLEA net debt. It looks like net debt's increased by about AUD 120 million, half on half, despite gross debt falling. Can you maybe please help us understand the, the cash outflows, you know, working cap, CapEx, pricing lag, so that the key buckets where we should be thinking about?

Oh, Thank you and then the second one is more around the two.

It looks.

It looks like that's increased by about 120 million half on half the spot crush that falling can you maybe plays a help us understand that.

The cash outflows.

Working cap topics pricing lag so that the key buckets what.

We should be thinking about.

Ivan Vella: Sure. I might throw to you, Cath. Do you want to just walk through some of the key movements in Winfield, please?

Sure I'm not try to your cash do you want to just walk through some of the key.

Movements in and Winfield place.

Kathleen Bozanic: Yeah, obviously we're finishing CGP 3, so that takes some cash as we go through that. But I think the core reason there is the timing of cash flows. So this half, we haven't seen the uptick in the pricing because we've got a 1-month lag. And then there also is a longer payment period with our shareholders who buy the stock. So it's about a 90-day period before they actually pay the bills, or pay for the spodumene. So that's contributing to that. What I would say is we'll see a good second half based on current pricing, and you should see an improvement in that over the next sort of six months.

Yeah, I'll, just say, we are finishing say J P. Right say that take some cash as we go through that that I think Nicole race and that is the timing of cash flows.

Say this because we haven't seen the uptick.

In the pricing because we've got a one month lag and then narrow site is at longer payment period, we down at ash shareholders, who buy this stock sorry.

It's about a 90 day period before they actually pay the bills. So pay for the for the spot you might say that that's contributing to that and what I would say is we will say a good second half based on current pricing and you should see an improvement in that either.

The next sort of six months.

Operator: Thank you. Your next question comes from Daniel Morgan, from Barrenjoey. Please go ahead.

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

Daniel Morgan: Hi, Ivan, and Tim. Just could you help me think about the cash flow implications from- obviously, Nova is gonna come to the end of its life. Can you just talk to what cash bills will be expected at the end of that? And then also, I guess a related question is, obviously, you got three corporate entities, the Greenbushes or Winfield corporate entity, TLEA, and then the Nova one. Just how do you think about running your balance sheet, the IGO balance sheet, and in light of, you know, cash that isn't necessarily assured to come through you through the corporate structures, you know, how do you manage that going forward?

Hi, Tim.

Could you help me think about.

The cash flow implications from obviously <unk> is going to.

It comes at the end of its life.

Sort of what cash bills.

We will be expected at the end of that and then also I guess the related question is obviously you got three.

Corporate entities.

Bush's oilfield corporate unto telia.

Hum.

Just how do you think about running.

Your back.

Balance sheet.

The <unk> balance sheet.

And in lot of cash that isn't necessarily a short to come through here through the corporate structures, how do you manage that.

Daniel Morgan: Do you expect to have a net cash position as a, you know, a management tool to insulate that risk of dividends? Thank you.

Going forward do you expect to have a net cash position as a.

Management tool to ensure that risk of dividends. Thank you.

Ivan Vella: Thanks, Daniel. Yeah, look, all work in progress. I mean, we have, obviously, a reasonable view on that and what the business will look like post Nova. The first point to note, which I think states the obvious, is that it, you know, its shape will change and has already changed, will continue to change to adjust to that world without the cash flows from Nova. When you take that operating asset out, the relevant functional support and other activity that goes on, we will adjust accordingly. We're still gonna maintain a focus on exploration, as we've talked about, and that'll still be disciplined and targeted. But, you know, I think that's a key part of our growth strategy and the value that we, we believe we can bring.

Thanks, Dan.

Oh working progress I mean, we have obviously original view on that and what the business will.

Look like post Nova first point to note, which I think sites. The obvious is that at each site will change and has already changed will continue to change to adjust to that world without the cashless from Nova and when you type that operating asset out relevant functional support and other activity that goes on we will adjust accordingly.

<unk>.

We're still going to maintain our focus on exploration as we've talked about and that will still be disciplined and targeted but you know.

I think that's a key part of their growth strategy and the value that we believe we can bring.

Ivan Vella: We'll maintain that, you know, core capability in our business. We'll likely be, expect to be complete, obviously, with Forrestania and working on closure for Nova. So there will be some work to do as we progress that activity. And Cosmos, we're looking at some options there, certainly some very prospective ground and some value there that we're, we're looking at how we best monetize that for our shareholders. Coming back to the JV, then, of course, you know, through the cycle, we see some, some variability in the cash that that JV pushes out. And, you know, we're probably, we're coming into this next phase now where there's a bit of an uptick.

We will maintain that.

<unk> capability in our business.

Well.

Likely they expect to be complete obviously, the first dania and working on closure for Nova So there will be some work to do as we progress that activity and Cosmos. We're looking at some options there suddenly some very prospective ground and some value there that we were looking at how we best monetize that for.

Shareholders.

Coming back to the JV then of course for the cycle, we see some some variability in the cash that that JV pushes out.

You know it probably coming into this next phase now where there's a bit of an uptick.

Ivan Vella: The last part of your question, you know, do we think that running some net cash in the business is useful as a tool to deal with some of the volatility? For sure. We'll look at how best to do that and, you know, how to make sure that we're allocating very carefully. But, yeah, the business will behave and look differently, obviously, when we don't have that internal cash generation from one of our operations.

The last part of your question you know do we think that you're running some some net cash in the business as useful as a tool to deal with some of the volatility for sure.

We'll look at how best to do that and how to make sure that way.

Allocating very carefully but.

The business will behave a little differently, obviously, when we don't have that internal cash generation from one of our pricing.

Daniel Morgan: Just to follow up on that, Ivan, so I imagine that Greenbushes does pay a reasonable dividend, as one might expect in the next half year. That would then go to the TLEA joint venture. Can you just remind us of the influence you can have to kind of sweep that cash out of TLEA? Or might it be for JV purposes, might it be they're partially elevated to fund some Kwinana cash outgoings? Thank you.

Just to follow up on the ovens, so I imagine that green bushes does pay a reasonable dividend as one might expect in the next half year.

That would then go to the T T L. A a joint venture.

Remind us of the influence you can have to kind of sweep the cash out of <unk> or <unk>.

Might it be for JV purposes must be the partially elevate it to.

So to fund some coronado.

Outgoings. Thank you.

Ivan Vella: Yeah, look, there, there is a, an order of events, let's say, or priority that we, we have inside TLEA, which is again, not new. The first priority for any cash that we have from Winfield or otherwise is to, to, fund the existing operation, of the business, and that means Kwinana. It can only be Train 1, because that's all there is. We've, we've obviously decided as a, as a, a JV that we're not gonna pursue Train 2, and so the net cash demand of Kwinana is the first call on, cash that's available through Winfield as the, you know, the generating asset. And having some liquidity there again, and making sure that we're, we're covered is important.

Yeah look the there is an order of events, let's say or a priority that we have inside <unk>, which is again not new the first priority for any cash that we have from winfield or otherwise is to to fund the existing operation.

All of the business and that means khorana.

It cannot only be trying one peoples that solar is we've we've obviously decided as a as a JV that we're not going to pursue trying to and so the net cash demand of Qunar is the first call on cash that's available through Winfield as the you know the generating asset.

And having some liquidity there again and making sure. We're Calvert is important we've got some stability in that forward look and naturally.

Ivan Vella: We've got some stability and that forward look and, you know, naturally, I've said already on the call that the last thing I want to be doing is putting cash in, so we're desperately keen to find a plan with TNC where we're not continuing to put net cash in. But until that time, then, you know, that needs to be covered. After that, then the cash goes out to the shareholders. There isn't any other basis to, or be, or, you know, means to hold cash inside that JV or any other call on it, unless as shareholders, we decide as such, whether that's through a growth project, or other investment, or other decisions. But, I mean, that's provided for in the structure of the JV. It literally runs in that priority order.

Said already on the call at closing I wanted to be doing is putting cash inside we're desperately came to define our plan with TNT, where we're not continuing to put net caffeine, but until that time, then that needs to be covered.

After that then the cash goes out to the shareholders. There isn't any other spices to or be means to hold cash inside that JV or any other coal on it unless there's shareholders, we decided thoughts whether that's through a growth project or other investment or other decisions, but I mean, that's provided for in the in the structure of the JV.

Literally runs in that priority order.

Operator: Thank you. Your next question comes from Matthew Friedmann from MST Financial. Please go ahead.

Thank you. Your next question comes from Matthew Freedman from MST Financial. Please go ahead.

Matthew Frydman: Sure. Thanks. Morning, Ivan and Cath. Can I ask a couple more on the Greenbushes reserve and resource statement? Firstly, on the underground resource, obviously a pretty, pretty sizable underground resource there. And I'm sure the optimization study will consider exactly how that gets developed. So I don't mean to try and preempt any of that. But I guess just wondering to what extent approvals and permitting are part of the consideration around an underground? I suppose I'm referring to, you know, weighing off the ability to get an underground mine approved, compared to maybe expansion of the open pits or the waste dumps and so forth.

Sure. Thanks, Good morning, Ivan and cash.

Can I ask a couple more on the Green bushes reserve and resource statement.

Firstly on the underground resource, obviously, a pretty sizable underground resource there.

And I'm sure. The optimization study, we will consider exactly how that gets developed.

Try and preempt any of that but I guess, just wondering to what extent approvals and permitting are part of our consideration around an underground I suppose I'm referring to.

Weighing all the ability to get an underground mine approved.

Compared to maybe <unk>.

Spansion to compete so the wife's dumps and so forth.

Matthew Frydman: Is that sort of element relevant or it's not particularly high up the list of considerations compared to, I suppose, the impact on incremental production or, you know, the impact on the pit shell and those sorts of things? Thanks.

Is that sort of <unk>.

Element.

Relevant or it's not particularly high up the list of considerations compared to I suppose the impact on incremental production or the impact on the pit shell and I sorts of things.

Ivan Vella: Yeah, Matt, not... Good question, but not, not particularly relevant for us. We think that underground will be pretty long dated. I don't think the permitting and approvals and design engineering of it's gonna be an issue, you know, critical path. We've got plenty of time before that would come into play. There was some notion that these might run in parallel. I think that's probably unlikely. I mean, it's early. I don't want you to bank that yet, but certainly the initial views is that these would run in sequence, underground following the open pit. So yeah, that's not a big concern. And I think, look, with the change of the pit design that we've done so far, again, not finished, but, you know, good progress, change in strip, change in waste generation.

Yes, that's not good question, but not not particularly relevant for us.

That underground will be pretty long dated.

I don't think the permitting and approvals and design engineering of it is going to be an issue.

Critical path, we've got plenty of time before that would come into play they want some notion that these might run in parallel I think thats, probably unlikely I mean, it's early I don't want you to think that yet, but certainly the initial.

Views is that these would run in sequence underground following the open pit.

Sorry, yes, that's not a big concern and I think look with the change is a pit design that we've done so far again not finished but good progress changes stripped changing waste generation.

Ivan Vella: Again, that's taking a lot of pressure off our permitting and approvals. So we're working through that, and the team have been really rigorous, a lot of close engagement and focus on the community. I think they're doing a great job to talk about the impacts and talk about the future, what this business looks like over time with the community. I think being particularly transparent, which I really, you know, like to see. It's great that they're building a stronger connection and level of trust there, and being able to describe that future in a more meaningful way for the community. All of that permitting and approvals will continue, but, you know, it's not something that I see huge pressure on our business, as we look forward.

Again, that's taking a lot of price of oral Hal permitting and approvals. So we're working through that and the same thing really rigorous a lot of close engagement and focus on the community I think they're doing a great job to talk about the impacts and talk about the future of what this business looks like over time with the community I think being particularly transparent which I really.

I'd like to say, it's great that they are building a stronger connection and level of trust there.

And being able to describe that future in a more meaningful way for the community.

All of that planning approvals will continue but.

It's not something that I see huge pressure on our business as we look forward.

Matthew Frydman: Got it. Thanks, Ivan. That's helpful. And then secondly, on the cut-off grade, I guess particularly the resource cut-off grade, getting dropped to 0.3%. You refer to an improved metallurgical understanding that's driven that. So, you know, I think it added 42 million tons at 0.37% lithia. Understanding that, you know, that material is not currently included in the reserves, obviously, which is still cut at 0.5% cut-off grade. Yeah, just whether you could shed a light on why the change in thinking there, you know, what what's driven that improved metallurgical understanding? And I suppose, you know, ultimately, do you expect it would be feasible to recover and process that material over time? Thanks.

Got it. Thanks, that's helpful. And then secondly on the cutoff grade I guess, particularly the resource cutoff grade getting dropped to a 0.3%.

You referred to.

Proved metallurgical understanding that that's driven that so I think I think it added 42 million tonnes at three 7%.

Lithia.

Understanding that that material is not currently included in the reserves, obviously, what you still cut at 0.5% cut off grade yes.

Yeah, just whether you could shed a light on why the change in thinking there.

What's driven that improved metallurgical understanding and as far as you know ultimately do you expect it would be favorable to recover and process that material.

Ivan Vella: Definitely, yeah. I mean, look, I was surprised, I guess, when that came through. Matt, it's a very good question 'cause I queried it as well, and the team's done the testing, done the hard work on it, and believe that there's value there that they think they can extract, hence why we see what we see. Now, as you said, there is another step to go in terms of working that right through to the endpoint. But we, you know, it's not a case of just putting it in because it's a theoretical goal seek. They've genuinely done some work to understand what it would take to get at that metal. And, you know, this is also a good challenge in general for mining.

Definitely.

Definitely yeah, I mean look I was <unk>.

Prized I guess [laughter] when that came through and that's a very good question, because I queried as well and our teams done the testing done the hard work on it and believe that there's value there that I think I can extract hence.

Why do we see what we say now as you said there is another step to go in terms of working that right through to the end point, but.

Not a case of just putting it in because it's a theoretical Gulf sake.

<unk> generally done some work to.

I understand what it would take to get it that metal and this is also a good challenge in general for mining.

Ivan Vella: When we open up an ore body, the impacts that we have, we should be trying to squeeze everything we can out of it. And we should be pushing ourselves to make that economic, to find the ways to process and extract it, and not be, you know, effectively wasteful when you leave, leave potentially valuable material behind.

When we open up a whole body when we open up the impacts that we have we should be trying to squeeze everything we can out of it and we should be pushing ourselves to make it economic to finalize the process and extracted and not be effectively wasteful when you leave leave potentially valuable material behind.

Operator: Thank you. Your next question comes from Hugo Nicolaci from Goldman Sachs. Please go ahead.

Thank you. Your next question comes from Hugo Nickel out to you from Goldman Sachs. Please go ahead.

Hugo Nicolaci: Hi, Ivan and Cath. Thanks for the update, and good to see the Greenbushes optimization's progressing well. I gather once that work's done, you've probably got a bit of flexibility to move quickly there, given that your CGP 4 and ore sorting already have environmental approvals. But just given a number of my questions have been asked, maybe one for Cath on the JV financials, picking up a bit from Khan. It looks like there's some pretty lumpy cash flow movements in the JV beyond just the dividends coming out of Winfield. So, Cath, can you maybe just talk us through any of the significant movements? Maybe, is it inventory? Is there some drawn debt in the JV now? And then, any updates on the outstanding ATO determination on tax for the JV, please?

Yeah, Hi, Ivan and Kathy ICF diet and get to say the Cree ambushes optimization is progressing well and gather once that work's done you've probably got a bit of flexibility to move quickly there given that you're C. J P for in an ore sorting is already have.

Mental approvals, but.

Just given the number of my questions have been asked maybe lots of cash on the JV financials picking up a bit.

Can it looks like there's some pretty lumpy cash flow movements in the JV beyond just the dividends coming out of windshields like half can you maybe just talk us through any of the significant movements maybe is it inventory.

Is there some drawn debt in the JV now and then any updates on the outstanding ATM determination on tax of the JV place.

Yeah.

Kathleen Bozanic: Yeah, there's no updates on the ATO determination. I think that you'll see in the contingency note, which is note 11 in the financials, that we've given an update on that. There's been submissions from TLEA, remembering that this is a TLEA issue, which we have indemnified a certain portion of. But that's got a little ways to run because it needs to, the ATO is now considering the responses that TLEA has provided, and we're anticipating that progressing over the next two quarters. In respect of the lumpy cash flow, I don't think it's really that lumpy. It's more about the timing of money coming through from the revenue side of things.

Yeah, there's no updates on the ITI determination and I think that you're saying the contingent say night, which is 911 in the financials that we have given a guide on that and they've been submissions from Teo say remembering that this is a K L say issue, which way having damnify to set and portion of that that's got a little while.

To run because at nights at the ITC is now considering the responses that <unk>.

I will say is provided.

And we're anticipating that progressing over the next two quarters.

In respect to the lumpy cash fly I don't think it's really that lumpy. It it's more about the timing is money coming through from the revenue side of things and there was a little bit of July around one of the shipments during the quarter as well so that could have had an impact day during the period.

Kathleen Bozanic: There was a little bit of delay around one of the shipments during the quarter as well, so that could have had an impact there. During the period, and I'm just gonna refer back to my notes, there was a bit of a pay down of debt at Greenbushes, during the period, so that might be accounting for some of what you're seeing as well. I'm hoping that answers your question.

Just kind of a fair back Jay mine no.

It wasn't bad at the pay down of debt.

Grain bushes.

During the period, so that might be accounting for some of what you are saying as well I'm, hoping that answers your question.

Ben Lyons: No, that's helpful, Cath, thanks. I'll-

No that's helpful. Thanks, so much.

Ivan Vella: Yeah, I think, I think Hugo, just to jump in, it was, you know, about AUD 150 million down on drawn debt and about AUD 200 million down on cash, you know, so there's a little bit of differential there between the two, but, there was a step down in debt in the period, to 31 December.

And then can you guys just dumping it was about 150 million down on drawn debt and about.

200 million down on cash so there's a little bit of differential there between the two but there was a step down in debt in the period.

231 December.

Ben Lyons: Just confirming, there's still no debt in that TLEA vehicle?

Just confirming there's still no debt in that tail a vehicle.

Ivan Vella: No. No, no, no, no. This is all Winfield debt.

No no no no. This is all winfield debt just to be absolutely clear yeah excellent. Thank you guys.

Ben Lyons: Yep.

Ivan Vella: Yeah, just to be absolutely clear. Yeah.

Ben Lyons: Excellent. Thanks a lot for some.

Sure.

Operator: Thank you. Your next question comes from Lyndon Fagan, from JP Morgan. Please go ahead.

Thank you. Your next question comes from Lyndon Fagan from JP Morgan.

Please go ahead.

Lyndon Fagan: Oh, hi, Ivan. Yeah, just wanted to talk about the Greenbushes reserve and resource update. So in there, it talks about the optimized pit shell, considering a fourth plant similar to CGP3, that lifts production up to 10 million tons per annum of throughput from 2032. I'm wondering if we can explore that a bit more. So is that CGP4? Is it CGP4 plus tailings or a treatment plant sort of reconfig? Is it a combination of both? And just, I guess, looking at your color on the deliverability of that. I know this is all part of the kind of optimization, but-

Oh, Hi, I've been yeah, just wanted to talk about the grain Bush's reserve and resource update so in there it talks about.

The optimized pit shell, considering our fourth plant similar to stage it paid three.

It lifts production up to 10 million tons per annum of throughput from.

From 2032, I'm wondering if we can explore that a bit more sorry is that say they pay for is it said you pay full plus type things, where a treatment plant set of Ray can fig, you did a combination of both.

And just I guess looking at it.

Your color on the deliverability of that.

No. This is all part of the kind of optimization, but yeah, considering it's written in there it would be good too.

Ivan Vella: Yeah.

Lyndon Fagan: Considering it's written in there, it'd be good to try-

Ivan Vella: No.

Lyndon Fagan: Explore it a bit.

We're at a bit.

Ivan Vella: Sure, sure, Lyndon. And you know, there's plenty of work that's been done, nothing that's finished and definitive yet, but and you're getting to the numbers that matter, right? That's, that's a critical number. Is it 10, or can you do more, or is it a bit less? And that's, you know, what can that mine consistently feed at an appropriate cost, that, you know, we, we really think is, is set and optimized appropriately, and then you're obviously running the plants. You don't want to throw a lot of capital at something if you can't use it wisely. There's no point in having, particularly with the, you know, the capital intensity of building things in WA. So that actually does include an uplift in, in the other plants and some tailings for treatment as well.

Sure sure and then you know there's plenty of work Thats been done nothing that's finished and definitive yet but.

Getting to the numbers that matter right. That's that's a critical number is it 10 or can you do more or was it a bit less than that and what can that mine consistently fade at an appropriate cost.

We really think is set and optimize the properly and then you're obviously you're running the plants you don't want to throw a lot of capital at something if he cant use it wisely, there's no point in having particularly with the capital intensity of building things in Wi.

So that actually does include uplifting in the other plants in some filings for treatment as well so.

Ivan Vella: So net, net, we've got to then sort of scale and size what we think that additional capacity would be if we're building another plant and make sure that it's pushed. You know, I, I'm a big fan of not putting excess capacity in plants on site because inevitably, you know, you are effectively just running a lazy asset then. We need to be pushing the assets hard, and they haven't been yet. CGP1 and CGP2 have not outperformed and gone past their nameplate yet. So we've got to chase that out and again, make sure CGP3 not just ramps up well, but also then outperforms. So all of that will be in focus.

Net net we've got it and then sort of scale and size of what we think that additional capacity would be if we're building another plant and make sure that it's pushed off.

I'm, a big fan of not putting excess capacity in plants on site because.

Inevitably.

You are effectively just running a legacy asset then we need to be pushing yes, its hard and I haven't been yet. So you people want them to have not outperformed and and Golden pass and I'm quite yet. So we've got a tie sat out and again MISO CDB three not just ramped up well, but also then outperformed.

All of that will be in focus as I've said earlier on the coal, we're going OTA, which is what the existing assets hottest first reconfigure.

Ivan Vella: As I've said earlier on the call, we will go in order, which is work the existing assets hardest first, reconfigure, and add CapEx around supplemental CapEx, things like ore sorting and other things, work on the tailings retreatment, and then the last point of allocation is a new plant, CGP 4, in whatever shape that takes.

And add capex around supplemental capex things like ore sorting and other things.

Work on the tailings for treatment and then the last point of allocation is a new client said you before and what are the size of that type.

Yeah.

Lyndon Fagan: Would you say that 2032 date is something that we should work with for now?

And would you say that 2032 died if something that we should work with for now.

Ivan Vella: Yeah. I mean, I haven't got one better. So, you know, I think this is a business where it's as quick as possible, right? There's gonna be... Once you know the mine can deliver, it, it's gonna be value accretive. We see that with everything we do at Greenbushes. What we've got to do is make it more stable and perform to its full potential. You know, I think then you've just got to be realistic about what it takes to design, engineer, and deliver a plant. And I, you know, certainly my goal is to make sure the CapEx intensity is improved from where we've been in the past. CGP3, for me, is a very expensive asset.

Oh, Yeah, I mean, I can go one better [laughter].

I think this is a business where it's as quick as possible is going to be once you know the mine can deliver it it's going to be value accretive we see that with everything we do at green bushes. What we've got to do is make it more stable and performed towards optimal full potential.

And I think then you just got to be realistic about what it takes to design engineer and deliver our plan.

Certainly my goal is to make sure the capex intensity as is.

It's improved from where we've been in the past you'd be three familiar is a very expensive asset yes, it's still incredibly value accretive then delivers incredible returns, but one eye watering price ticket given the cost associated with doing some of these things at this point in the cycle.

Ivan Vella: Yes, it's still incredibly value accretive and delivers incredible returns, but what an eye-watering price ticket, given the costs associated with doing some of these things at this point in the cycle.

<unk>.

Operator: Thank you. Your next question comes from Ben Lyons, from Jarden Securities Limited. Please go ahead.

Thank you. Your next question comes from Ben lines from John on the Securities Ltd.

Please go ahead.

Ben Lyons: Thank you. Good morning, Ivan. I'll keep it quick and just one question, given the time. It's bringing it right back from 2032 to the immediate future, so the rest of calendar 2026, let's just call it. I know you haven't changed guidance at Greenbushes, but I'm just trying to gain more comfort on those second-half sales, particularly in light of Albemarle's decision over Kemerton. Obviously, taking into consideration their comments around no expected impact on their chemical sales and the potential to toll that material through Chinese refineries. But maybe you can just give us more comfort with how those annual nominations work at the Talison level, how compliance versus the nominations is enforced.

Thank you and good morning, I'll keep it quick and just one question given the times.

And bringing it brought back from 2032 to the immediate future. So the rest of calendar 'twenty six lets just call it.

I know you haven't changed guidance at Green bushes, but I'm just trying to gain more comfort on the second half silos, particularly in light of Albemarle is decision of the commission.

Obviously, taking into consideration the comments around no expected impact on their clinical trials and the potential to toll that material through.

Chinese refineries.

Maybe you can just give us more comfort with how those annual nominations work at the telephone level have compliance versus the nominations is enforced.

Ben Lyons: And if tolling doesn't make sense, and it doesn't look like it does on the economics at present, just remind us whether there's any restrictions on third party sales of that con into the merchant market. Thank you.

And if calling doesn't make sense and it doesn't look like it does on the economics at present.

Or modest whether theres any restrictions on third party sales if that corn into the merchant market. Thank you.

Ivan Vella: Okay. Thanks, Ben. Great question. I'll try and keep it brief. The customers that we have, who are also shareholders, Tianqi Lithium and Albemarle are very hungry for tons, and that demand is strong. It's a quarterly nominations process, so we're always one quarter ahead in what's coming. So we, you know, we have basically a view to the end of the financial year. I think we have a view beyond that, you know, and subject, obviously, haven't got a crystal ball, the world can't change, but, you know, there's no sense that any ton we can't produce, we can't sell. The sales that you've seen, as I've mentioned earlier on the call, has purely been about shipping and logistics. It's just a physical set of issues at times when we miss shipment windows and so on.

Okay. Thanks, Ben Great question.

Trunking, but price.

The customers that we have we were also shareholders.

TNT lithium and.

Very hungry for protons and the demand is strong it's a calling on the license process. So.

We're always one quarter ahead, and what's coming so we have basically of you to the end of the financial year I think we havent be beyond that and you know in subject, obviously I've got a crystal ball will kind of change, but theres no sense that anytime we cant produce we count so the sales that you're saying as I've mentioned earlier on the call is purely been about shipping in.

Logistics is just a physical.

Saturday shoes at times, when we missed shipping windows and so on.

Ivan Vella: And that, you know, the team continue to work on, but completely disconnected from customer demand, which is very strong. You know, without getting into the specifics of Camden, and I don't have all of their details in front of me, of course, I don't speak to it, but it's pretty immaterial in the scale of the overall production that Greenbushes has. So, you know, I don't think that's super relevant. Looking forward, it probably just changes the logistics patterns a little bit and, you know, means we need to make sure that we're handling not just the extra tons from CGP3, but also some extra tons that don't just get trucked to their site, rather, they get trucked to the port and shipped out. So the biggest challenge in all of this is just making sure that Bunbury Port is really performing.

And that the team continued to work on but completely disconnected from customer demand, which is very strong and.

Without getting into the specifics of Cameron and I don't have all of the details in front of me of course, sometimes they do it but it's pretty immaterial in the scale of.

The overall production that green bushes has.

So I don't think Thats super relevant.

Looking forward I'd, probably just changes.

Logistics patents, a little bit and it means we need to make sure that we're we're handling not just the extra tons from Ceb's right, but also some extra tons are done just get trucks to their thought rather like truck to the port and shipped outside the biggest challenge in all of this is just making sure. The bomb report is really compelling.

Operator: Thank you. There are no further questions at this time. I'll now hand the conference back to Mr. Vella for any closing remarks.

Thank you there are no further questions at this time I'll now hand, the conference back to Mr. Vella for any closing remarks.

Ivan Vella: Thanks, Darcy. Look, we're right on time, so I'll keep it short. Thanks again for joining for our half year results. As I said, I think that looking back on the half, got a great set of results from our operation at Nova, safety, production, performance, and so on. That's exactly, you know, where we've been focused to demonstrate our operating capabilities. The same focus continues at Greenbushes, and we're not there yet. There is plenty of good work happening, and just as you've seen that step-by-step improvement in safety and operating performance at Nova, I expect we're going to be able to share the same suite of results quarter by quarter as Talison works through the improvements at Greenbushes.

Thanks, Darcy look we're right on time, so I'll keep it short thanks again for joining for our half year results.

As I said I think that looking back on the half.

Great.

Set of results from our from our pricing that Nova safety production performance and so on and that's exactly where we've been focused.

To demonstrate our operating capabilities.

The same focus continues at green bushes, and we're not there yet there is plenty of good work happening and just as you've seen that step by step improvement in safety and operating performance. Neither looks like we're going to be able to share. The same suite of results quarter by quarter is tell us and works for the improvements that cream voices.

Ivan Vella: With that, I'll leave it there and look forward to catching up in the, you know, with this results period now behind us and talking further about our results. Thanks, everyone.

With that I'll leave it there and look forward to catching up.

With this results period now behind Us and talking further about our results. Thanks, everyone.

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

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

Yeah.

[music].

Yeah.

[music].

Yeah.

Yes.

[music].

Yeah.

[music].

Yeah.

[music].

Yeah.

Yeah.

[music].

Yeah.

[music].

Yeah.

Yeah.

Yeah.

Yeah.

Yeah.