Full Year 2026 Lycopodium Ltd Earnings Call

August 19, 2026

Speaker #1: Good morning, everyone, and welcome to the Lycopodium full-year FY26 results call. I'm Sam Wells from NWR Communications, and joining me from the company today is Managing Director and CEO, Peter Deleo.

Moderator: Good morning, everyone, and welcome to the Lycopodium full year FY26 results call. I am Sam Wells from NWR Communications, and joining me from the company today is Managing Director and CEO, Peter De Leo, as well as CFO, Justine Campbell. Following the summary of the results released to the market this morning, investors and research analysts will have an opportunity to ask questions throughout the call duration today. There will be a choice of two options. First, analysts and investors can raise your hand via Teams should you wish to ask a verbal question of the management team, or you can also submit a written question via the Q&A function at the bottom of your screen. If you are joining from your mobile phone device today, please email me any questions.

Sam Wells: Good morning, everyone, and welcome to the Lycopodium full year FY26 results call. I am Sam Wells from NWR Communications, and joining me from the company today is Managing Director and CEO, Peter De Leo, as well as CFO, Justine Campbell. Following the summary of the results released to the market this morning, investors and research analysts will have an opportunity to ask questions throughout the call duration today. There will be a choice of two options. First, analysts and investors can raise your hand via Teams should you wish to ask a verbal question of the management team, or you can also submit a written question via the Q&A function at the bottom of your screen. If you are joining from your mobile phone device today, please email me any questions.

Speaker #1: As well as CFO Justine Campbell. Following the summary of the results released to the market this morning, investors and research analysts will have an opportunity to ask questions throughout the duration of the call today.

Speaker #1: There will be a choice of two options. First, analysts and investors can raise your hand via Teams should you wish to ask a verbal question of the management team.

Speaker #1: Or you can also submit a written question via the Q&A function at the bottom of your screen. If you are joining from your mobile device today, please email me any questions.

Speaker #1: We'll endeavor to get to the majority of questions asked, in some cases combining questions on the same or similar topics. For the analysts asking verbal questions, we'd kindly ask that you limit yourself to two questions on today's live call.

Moderator: We will endeavor to get to the majority of questions asked, in some cases, combining questions on the same or similar topic. For the analysts asking verbal questions, we would kindly ask that you limit yourself to two questions on today's live call. Thank you, and over to you, Peter and Justine.

Sam Wells: We will endeavor to get to the majority of questions asked, in some cases, combining questions on the same or similar topic. For the analysts asking verbal questions, we would kindly ask that you limit yourself to two questions on today's live call. Thank you, and over to you, Peter and Justine.

Speaker #1: Thank you, and over to you, Peter and Justine.

Speaker #2: Thanks very much, Sam, and welcome to Lycopodium's investor presentation for the full year financial year 2026. We've just completed a highly successful year where we've delivered on our commitments to clients and shareholders alike.

Peter De Leo: Thanks very much, Sam, and welcome to Lycopodium's investor presentation for the full year, financial year 2026. We have just completed a highly successful year where we have delivered on our commitments to clients and shareholders alike. I thank staff and management for their outstanding efforts and really look forward to running you through some of the detail of what constituted a landmark year for Lycopodium. In the next 30 minutes or so, we will be providing you an update on the company, running through FY26 financial highlights, providing you some insight into our operational highlights for the year and providing some commentary on the outlook for our business as well as providing financial guidance for FY27. In the past year, Lycopodium has enhanced its reputation as being one of the world's leading engineering and project delivery groups, working globally across the mineral resources, industrial processes, and rail infrastructure and asset management sectors.

Speaker #2: I thank the staff and management for their outstanding efforts, and I really look forward to running you through some of the details of what constituted a landmark year for Lycopodium.

Speaker #2: In the next 30 minutes or so, we will be providing you an update on the company, running through FY26 financial highlights, providing some insight into our operational highlights for the year, and providing some commentary on the outlook for our business, as well as providing financial guidance for FY27.

Speaker #2: In the past year, Lycopodium has enhanced its reputation. It has been one of the world's leading engineering and project delivery groups, working globally across the mineral resources, industrial processes, rail infrastructure, and asset management sectors.

Speaker #2: At the end of June, we had over 1,400 people, and at this time, as we speak today, we have 1,500 people in the business.

Peter De Leo: At the end of June, we had over 1,400 people, and at this time as we speak today, we have 1,500 people in the business as we grow to meet the opportunities that we are seeing. We retain our 18 offices globally, and I will talk a little bit more about those later. We have a broad and diverse client base, including the emerging majors, and globally diversified companies, and really is a fantastic suite of clients for whom we work. In terms of our capabilities and core services, we continue to work across all phases of projects from very early stage evaluation, scoping, and concept creation through to the detailed engineering and project delivery, as well as being highly considered for our ability to provide optimization and expansion services for existing facilities.

Speaker #2: As we grow to meet the opportunities that we're seeing, we retain our 18 offices globally, and I'll talk a little bit more about those later.

Speaker #2: We have a broad and diverse client base, including the emerging majors and globally diversified companies. And really, it's a fantastic suite of clients for whom we work.

Speaker #2: In terms of our capabilities and core services, we continue to work across all phases of the projects—from very early-stage evaluation, scoping, and concept creation through to detailed engineering and project delivery.

Speaker #2: As well as being highly regarded for our ability to provide optimization and expansion services for existing facilities. Each part of our business focuses on delivering and creating value, and it remains part of our ethos to focus on delivering high-quality services to help our clients succeed in unlocking the maximum potential in their projects.

Peter De Leo: Each part of our business focuses on delivering and creating value, and it remains part of our ethos to focus on delivering high-quality services to help our clients succeed in unlocking the maximum potential in their projects. We continue to grow our global scale. In the past year, we have managed and controlled over 9 million man-hours for the delivery of over 50 resource projects and 90 studies. Importantly, these metrics demonstrate both the growth but also the potential for the business as our level of committed contracts is up 59% from six months ago. Revenue opportunity pipeline is up 8% from six months ago. Managed CapEx up 32% from six months ago. Number of studies we are currently managing up twofold from six months ago. For those of you that have heard us present previously, you know that is a very important metric for our business.

Speaker #2: We continue to grow our global scale. In the past year, we've managed and controlled over 9 million man-hours for the delivery of more than 50 resource projects and 90 studies.

Speaker #2: Importantly, these metrics demonstrate both the growth and the potential for the business as our level of committed contracts is up 59% from six months ago, our revenue opportunity pipeline is up 8% from six months ago, managed CapEx is up 32% from six months ago, and the number of studies we are currently managing is up twofold from six months ago.

Speaker #2: And again, for those of you that have heard us present previously, you know that's a very important metric for our business. I'll now hand over to Justine to present the FY26 financial highlights.

Peter De Leo: I will now hand over to Justine to present FY26 financial highlights.

Speaker #3: Thanks, Peter. Lycopodium has had another successful financial year, delivering results within the guidance range for FY26. Revenue was $377.5 million, up 11% on the prior year, representing record revenue for the company.

Justine Campbell: Thanks, Peter. Lycopodium has had another successful financial year, delivering results within the guidance range for FY26. Revenue was AUD 377.5 million, up 11% on the prior year, representing record revenue for the company. EBITDA of AUD 59.5 million or 15.7% with a profit before tax of AUD 52.5 million. NPAT of AUD 40.2 million at 10.6% of revenue reflects the company's long-term goal of a +10% NPAT margin target. NPAT is also at the top end of guidance given earlier this year. Equity increased 13% to AUD 170.7 million, with return on equity achieved of 25%. The net tangible assets are AUD 3.92 per share. The company again had strong operating cash flows ending the financial year with a very healthy cash balance of AUD 106.2 million, with minimal debt maintained on the balance sheet. Earnings per share for FY26 were AUD 1.01 per share.

Speaker #3: EBITDA of $59.5 million, or 15.7%, with a profit before tax of $52.5 million. NPAT of $40.2 million, at 10.6% of revenue, reflects the company's long-term goal of a plus 10% NPAT margin target.

Speaker #3: NPAT is also at the top end of the guidance given earlier this year. Equity increased 13% to $170.7 million, with a return on equity achieved of 25%.

Speaker #3: The net tangible assets are $3.92 per share. The company again had strong operating cash flows, ending the financial year with a very healthy cash balance of $106.2 million, with minimal debt maintained on the balance sheet.

Speaker #3: Earnings per share for FY26 were $1.01 per share. In alignment with the company's dividend policy, the Board has declared a final dividend of 37 cents per share, which, together with the first half dividend, takes the full-year dividends to 59 cents per share.

Justine Campbell: In line with the company's dividend policy, the board has declared a final dividend of AUD 0.37 per share, which, together with the H1 dividend, takes the full-year dividends to AUD 0.59 per share. The business has continued in FY26 to have a diversified portfolio of projects across geographies, commodities, and clients. Based on project location, 58% of the company's revenue was generated from projects in Africa, 24% from the APAC region, and 11% in the Americas. Lycopodium is considered a market leader in the delivery of gold processing plants, which is reflected in the number of gold studies and projects the company is completing. In addition, the business is working on copper, lithium, uranium, and other rare earth studies and projects.

Speaker #3: The business has continued in FY26 to have a diversified portfolio of projects across geographies, commodities, and clients. Based on project location, 58% of the company's revenue was generated from projects in Africa, 24% from the APAC region, and 11% from the Americas.

Speaker #3: Lycopodium is considered a market leader in the delivery of gold processing plants, which is reflected in the number of gold studies and projects the company is completing.

Speaker #3: In addition, the business is working on copper, lithium, uranium and other rare earth studies and projects.

Speaker #2: Thank you, Justine. I'll now just touch on some operational highlights from the past 12 months. So, across the last year, we've refined our operating model.

Peter De Leo: Thank you, Justine. I will now just touch on some operational highlights for the past 12 months. Across the last year, we have refined our operating model to focus on our regional approach to the delivery of our services, supporting our One Lycopodium ethos, where whether a client is being serviced from Cape Town, Perth, Brisbane, or Toronto, they receive the same high-quality outcome which Lycopodium is known. This approach enables us to engage more effectively with clients, access new market opportunities, support structured growth across our identified key markets, and to leverage local expertise. We have great examples of that across all those regions. We are organized around our three hubs, being APAC, Africa, and the Americas, and our efforts across the year have seen the first signs of our endeavor to achieve a balance of quality business across these three regions.

Speaker #2: To focus on our regional approach to the delivery of our services, supporting our One Lycopodium ethos. Whether a client is being serviced from Cape Town, Perth, Brisbane, or Toronto, they receive the same high-quality outcome which Lycopodium is known for.

Speaker #2: This approach enables us to engage more effectively with clients, access new market opportunities, support structured growth across our identified key markets, and leverage local expertise.

Speaker #2: And we've got great examples of that across all of those regions. We're organized around our three hubs: APAC, Africa, and the Americas. Our efforts across the year have seen the first signs of our endeavor to achieve a balance of quality and business across these three regions.

Speaker #2: Based on our current and highly prospective workload, we believe we'll see a significant advance in this endeavor across the next 12 months, building on what was achieved in FY26.

Peter De Leo: Based on our current and highly prospective workload, we believe we will see a significant advance in this endeavor across the next 12 months, building on what was achieved in FY26. In terms of project highlights, we only yesterday advised the market of the award of our first material full EPCM in South America with the award of the Minera San Cristóbal project in Bolivia. Our other recent awards, including the Doropo project for Resolute, Pilgangoora plant expansion for PLS Group, and early works for Havieron, Greatland Gold, and Katanning Gold Project, of course, Ausgold, OceanaGold, demonstrate our commitment and success in achieving a balanced and suitably blended style of contracting model across our project portfolio. We are also delighted to be ramping up on the Blackwater Phase 2 expansion project, continuing work we have been undertaking at that operation, helping Artemis Gold improve and debottleneck their Phase 1 project.

Speaker #2: In terms of project highlights, we only yesterday advised the market of the award of our first material, full EPCM in South America with the award of the Minera San Cristóbal Project in Bolivia.

Speaker #2: But our other recent awards—including the Doropo Project for Resolute, Filgangura Plant Expansion for PLS Group, and early works for Haveron (Greatland Resources) and Containing Gold Project; of course, OS Gold, and Rosiana—demonstrate our commitment and success in achieving a balanced and suitably blended style of contracting model across our project portfolio.

Speaker #2: We're also delighted to be ramping up on the Blackwater Phase 2 expansion project, continuing the work we've been undertaking at that operation, helping Artemis improve and debottleneck their Phase 1 project.

Speaker #2: Other work which continues to ramp up includes the Tulakapi Project, for which we're doing an engineering supply and labor hire contract, and the Winnu Copper Integrated Management Team, again, which continues to grow within our facilities here in Perth.

Peter De Leo: Other work which continues to ramp up includes the Tulkubash project, for which we are doing an engineering, supply, and labor hire contract. The Winu copper integrated management team, again, which continues to grow within our facilities here in Perth, in fact. All this on top of the continued successful work Lycopodium is doing on major projects, including Koné project in Côte d'Ivoire, Twin Hills in Namibia, Baomahun in Sierra Leone, Yanqul in Oman, Nyanzaga in Tanzania. More on the project pipeline later. Further to our previously advised focus on building our business in the Americas, we continue to take a disciplined and staged approach to expansion in this key geography, providing a key growth pillar to the organization. Our presence in the Americas started some 15 years ago with the establishment of our first American office in Toronto.

Speaker #2: All this is on top of the continued successful work Lycopodium is doing on major projects, including the Kona Project in Côte d'Ivoire, Twin Hills in Namibia, Baumahun in Sierra Leone, Nyangkul in Oman, and the Nsaga in Tanzania. But more on the project pipeline later.

Speaker #2: Further to our previously advised focus on building our business in the Americas, we continue to take a disciplined and staged approach to expansion in this key geography, providing a key growth pillar to the organization.

Speaker #2: Our presence in the Americas started some 15 years ago with the establishment of our first American office in Toronto, but in the past few years in particular, we have seen steady but significant growth with the acquisition of Saxon, as well as the opening of our client-facing, studies-focused office in Vancouver and our value engineering and regional office in Lima.

Peter De Leo: In the past few years, in particular, we have seen steady but significant growth with the acquisition of Saxum, as well as the opening of our client-facing studies-focused office in Vancouver and our value engineering and regional office in Lima. Our focus in the past year and heading into FY27 is to convert a suitable and sustainable pipeline of quality work. We will see the offices in Toronto, Lima, and Vancouver all increase in size in the next 12 months, with additional floor space being taken in Toronto, a new office being sought in Vancouver, and a new office being sought in Lima to accommodate that expansion. I will run you through, this is a slide that we have presented over the last couple of years, just to demonstrate the project pipeline and where we are at in the various phases of project.

Speaker #2: Our focus in the past year, and heading into FY27, is to convert a suitable and sustainable pipeline of quality work. We will see the offices in Toronto, Lima, and Vancouver all increase in size in the next 12 months, with additional floor space being taken in Toronto, a new office being sought in Vancouver, and a new office being sought in Lima to accommodate that expansion.

Speaker #2: I'll run you through. This is a slide that we've presented over the last couple of years, just to demonstrate the project pipeline and where we're at in the various phases of the project.

Speaker #2: I'll note that, as I mentioned earlier, we have a very, very healthy level of studies—plus 90 studies—through the business at the moment.

Peter De Leo: I will note that, as I mentioned earlier, we have a very healthy level of studies, plus 90 studies through the business at the moment. I also note the commodity blend in the new work, as well as the excellent work being done in that work under the green block. I have mentioned some of these projects already. Not only that work that we have done, but that work that we have completed. So in the last 12 months, we completed work at Greenbushes on Talison's CGP3 project, the work for Orezone on the Bomboré project, Newmont's Hafer North project, and Managem with Otjikoto project. Again, of importance is if I look at the work we have done in the last 12 months for Talison, Aurizon, Newmont, and Managem, those four projects that I have spoken about we have completed.

Speaker #2: But I'll also note the commodity blend in the new work, as well as the excellent work being done in the work under the green block. I've mentioned some of these projects already.

Speaker #2: But not only that work that we've done, but that work that we've completed. So in the last 12 months, we completed work at Greenbushes on Talison's CGP3 Project, the work for Bombora, for Ozone, on the Bombora project.

Speaker #2: New ones are Hafo North Project and management of Goto Project. Again, the importance is, if I look at the work we've done in the last 12 months for Talison, Ozone, Newmont, and the management of those four projects that I've spoken about, we've completed.

Speaker #2: We've got continued and ongoing work with all those clients, and management, in each case, has seen fit to award us or have us lined up to be awarded additional EPCM and study phase projects in the next 12 months.

Peter De Leo: We have continued and ongoing work with all those clients and Managem's case, they have seen fit to award us, or have us lined up to be awarded, additional EPCM and study phase projects in the next 12 months. Again, it is excellent testament to the quality of the work that was completed during that period of time. Lycopodium remains focused on attracting and developing high-quality individuals into our organization. We now have a very well-established approach to inducting, training, and developing people at all levels, and we seek, in the main, to grow our own Lycopods with a very strong graduate development program and induction of more junior-level people. We also like to graft them onto our organization in the case of later career stage individuals. This supports our approach to ongoing development of the individuals, but also ongoing growth of the business.

Speaker #2: So again, it's an excellent testament to the quality of the work that was completed during that period of time. Lycopodium remains focused on attracting and developing high-quality individuals into our organization.

Speaker #2: We now have a very well-established approach to inducting, training, and developing people at all levels, and we seek, in the main, to grow our own Lycopods with a very strong graduate development program and induction of more junior-level people.

Speaker #2: But we also like to graft them onto our organization in the case of later-career-stage individuals. This supports our approach to the ongoing development of the individuals, but also the ongoing growth of the business.

Speaker #2: We're also committed to providing our staff high-quality systems and tools of trade to enable them to deliver their work effectively and efficiently. We have, in the last 12 months, continued to roll out our new ERP, to improve the functionality of that ERP, to focus on the standardization of our platforms across the business, to work on the engineering and project delivery tools for the business, and all done very, very successfully, as well as mapping out our digital pathway.

Peter De Leo: We are also committed to providing our staff high-quality systems and tools of trade that enable them to deliver their work effectively and efficiently. We have, in the last 12 months, continued to roll out our new ERP, to improve the functionality of that ERP, to focus on the standardization of our platforms across the business, to work on the engineering and project delivery tools for the business. All done very, very successfully, as well as mapping out our digital pathway. All of this is to support our One Lycopodium approach. We continue to support the communities within which we work and live via the Lycopodium Foundation. Our efforts in this regard are focused on the key pillars of social development, education, innovative thinking, and environmental sustainability, and I am very proud of the work the team has done.

Speaker #2: All of this is to support our One Lycopodium approach. We continue to support the communities within which we work and live via the Lycopodium Foundation.

Speaker #2: Our efforts in this regard are focused on the key pillars of social development, education, innovative thinking, and environmental sustainability. I'm very proud of the work the team has done. Most recently, a highlight has been raising over $110,000 at our annual Genes for Genes event for the Children's Medical Research Institute.

Peter De Leo: Most recently, a highlight has been a raising of over AUD 110,000 at our annual Jeans for Genes event for the Children's Medical Research Institute. That brings in total from Lycopodium over the past 20-plus years, in excess of AUD 600,000 raised for that very important cause. Outlook and guidance. The overall demand drivers for our services remains very strong. At this time, demand outweighs capacity in the market for quality engineering and project delivery services. Lycopodium's excellent track record and reputation, and the ability to work globally across a broad range of commodities, provide us with a growing list of opportunities which bodes well for our pipeline of work. We have, at this time, a record level of committed work and an excellent view on the potential pipeline across not only FY27 but into FY28.

Speaker #2: That brings the total from Lycopodium over the past 20-plus years to in excess of $600,000 raised for that very important cause. Outlook and guidance.

Speaker #2: The overall demand drivers for our services remain very strong. At this time, demand outweighs capacity in the market for quality engineering and project delivery services.

Speaker #2: Lycopodium's excellent track record and reputation, along with our ability to work globally across a broad range of commodities, provides us with a growing list of opportunities, which bodes well for our pipeline of work.

Speaker #2: We have, at this time, a record level of committed work and an excellent view on the potential pipeline across not only FY27, but into FY28.

Speaker #2: We're established, and our strategies over the past few years have really laid the foundations for us to maximally support what is a very, very busy and enduring market.

Peter De Leo: We are established and our strategies of the past few years have really laid the foundations for us to be able to maximally support what is a very busy and enduring market. The growing volume of work underpins future earnings. Considering the FY27 outlook, we have seen fit to bring forward our guidance this year. Ordinarily, we provide our first guidance at the AGM. Given that FY27 looks a little different to FY26, we have seen fit to talk about it at this point in time and give guidance of revenue between AUD 540 to 580 million, with a net profit after tax range of AUD 54 to 58 million, again, typically in line with our plus or minus 10% NPAT target for the business. We will, of course, continue to update shareholders as the financial year progresses. In summary, Lycopodium remains a secure, stable, and sustainable business.

Speaker #2: The growing volume of work underpins future earnings, and, considering the FY27 outlook, we've seen fit to bring forward our guidance this year. Ordinarily, we provide our first guidance at the AGM, but given that FY27 looks a little different to FY26, we've decided it's appropriate to talk about it at this point in time.

Speaker #2: And give guidance of revenue between $540 million to $580 million Australian dollars, with net profit after tax in the range of $54 million to $58 million, again typically in line with our plus or minus 10% impact target for the business.

Speaker #2: We will, of course, continue to update shareholders as the financial year progresses. So, in summary, Lycopodium remains a secure, stable, and sustainable business. With deep engineering expertise, a disciplined approach to risk management, an exceptionally strong history of execution, and a capital-light approach to our business, we maintain a list of blue-chip clients. We have good commodity diversification, and we are geographically diversified as a business.

Peter De Leo: Deep engineering expertise, a disciplined approach to risk management, an exceptionally strong history of execution, a capital light approach to our business. We maintain a list of blue-chip clients. We have good commodity diversification, and we are geographically diversified as a business. It is something which we have been focusing on, as I have said earlier in the presentation, but is really starting to see the delivery of real value to the organization. Before I invite questions, I would just like to, again, on behalf of the board of Lycopodium, thank our staff and management for their excellent efforts and hard work this year. I also invite you to peruse the full presentation, which includes, amongst other things, an overview of Lycopodium's strategic approach to risk management and innovation, as well as a host of other relevant information.

Speaker #2: And it's something which we've been focusing on, as I said earlier in the presentation, but it's really starting to deliver real value to the organization.

Speaker #2: Before I invite questions, I'd just like to again thank, on behalf of the Board of Lycopodium, our staff and management for their excellent efforts and hard work this year.

Speaker #2: And I'll also invite you to peruse the full presentation, which includes, amongst other things, an overview of Lycopodium's strategic approach, approach to risk management and innovation, as well as a host of other relevant information.

Speaker #2: But now, I'll hand over to Sam, who can manage any questions that you may have.

Peter De Leo: Now I will hand over to Sam, who can manage any questions that you may have.

Speaker #3: Great. Thank you very much, Peter and Justine. As a reminder, you can ask questions via Teams by submitting them in writing through the Q&A function. Our covering research analysts are invited to raise their hands should they wish to ask a verbal question.

Moderator: Great. Thank you very much, Peter and Justine. As a reminder, you can ask questions via the teams via written submitted via the Q&A function or covering research analysts are invited to raise their hands should they wish to ask a verbal question. We will kick off with a few pre-submitted questions first. How is Lycopodium structurally mitigating increased sovereign and execution risks as its contract mix tilts heavily towards foreign jurisdictions? Additionally, is the company achieving higher project margins to compensate for these risks? Or does the complexity of international work erode any potential pricing premium?

Sam Wells: Great. Thank you very much, Peter and Justine. As a reminder, you can ask questions via the teams via written submitted via the Q&A function or covering research analysts are invited to raise their hands should they wish to ask a verbal question. We will kick off with a few pre-submitted questions first. How is Lycopodium structurally mitigating increased sovereign and execution risks as its contract mix tilts heavily towards foreign jurisdictions? Additionally, is the company achieving higher project margins to compensate for these risks? Or does the complexity of international work erode any potential pricing premium?

Speaker #3: We'll kick off with a few pre-submitted questions first. How is Lycopodium structurally mitigating increased sovereign and execution risks as its contract mix tilts heavily towards foreign jurisdictions?

Speaker #3: And additionally, is the company achieving higher project margins to compensate for these risks, or does the complexity of international work erode any potential pricing premium?

Speaker #2: Thank you, Sam. That's a good question. I guess Lycopodium's approach to managing the risk for some of the jurisdictions in which we work is handled in a number of ways.

Peter De Leo: Thank you, Sam. That is a good question. Lycopodium's approach to managing the risk of some of the jurisdictions in which we work is handled in a number of ways. The first one is that typically our contracts on international projects are split contracts, where a large part of the portion of the work, of course, happens in our hubs or our spoke offices. For those contracts, I am talking there about the engineering, the procurement services, and other things. Study services go through that same, happen in the hubs, and those contracts are contracted with our APAC entity or our Americas entity or the South African-based entity. So that sees a lot of our revenues, a lot of our earnings, and the jurisdiction of those earnings being outside of those international locations.

Speaker #2: The first one is that, typically, our contracts on the international projects are split contracts, where a large part of the portion of the work, of course, happens in our hubs or our spoke offices.

Speaker #2: And for those contracts, I'm talking there about the NGO, in the procurement services and other things. Study services go through that same process. Happened in the hubs.

Speaker #2: And those contracts are contracted with our APAC entity, our American entity, or the South African-based entity. So that sees a lot of our revenues, a lot of our earnings, and the jurisdiction of those earnings being outside of those international locations.

Speaker #2: The work we've been doing in-country, obviously, is all contracted through, typically, our in-country entities, which, again, are fully compliant with the requirements of the country.

Peter De Leo: The work that we do in country, obviously, is all contracted through typically our in-country entities, which again, are fully compliant with the requirements of the country. We have over 30 years track record of working in a lot of those jurisdictions or jurisdictions with lots of similar attributes. Lycopodium has established risk management approach to everything we do, whether it be contracts, legal, health and safety, logistics, whatever the case may be. Our skills and our ability, however, and our call it our strength in those niche markets, enables us to deliver good returns and good margins. Now, we always seek to deliver value to our clients, so I am not going to suggest that we were looking to gouge our clients in difficult jurisdictions because we just, we cannot. We do not do that. We play the long game.

Speaker #2: And we have, over 30 years, a track record of working in a lot of those jurisdictions, or jurisdictions with lots of similar attributes. And so, Lycopodium has an established risk management approach to everything we do, whether it be contracts, legal, health and safety, logistics—whatever the case may be.

Speaker #2: Our skills and our ability, however—and our, call it, our strength in those niche markets—enables us to deliver good returns and good margins.

Speaker #2: Now, we always seek to deliver value to our clients, so I'm not going to suggest that we were looking to gouge our clients in difficult jurisdictions, because we just—we can't.

Speaker #2: We don't do that. We play the long game. But what we do, of course, is make sure we can price fully, and because of our skill and expertise in dealing with all the nuances of working in many of these jurisdictions, we're able to deliver very good returns.

Peter De Leo: What we do, of course, is make sure we can price fully. Because of our skill and expertise in dealing with all the nuances of working in many of these jurisdictions, we are able to deliver very good returns. In years gone by and forecast years ahead, it has been supportive of delivering very, very strong NPAT return or very strong return on our revenues. So that is our intention moving forward. I hope I have answered the question, but I guess in summary, it is Lycopodium's well-read in terms of our approach to risk management, understanding the subject matter, and seeks good return for what we do in those jurisdictions.

Speaker #2: And in years gone by, and forecasting years ahead, it's been supportive of delivering very, very strong impact return, or very strong return on our revenues.

Speaker #2: And that is our intention moving forward. So I hope I've answered the question but, I guess in summary, it's Lycopodium's—well, we're rigorous in terms of our approach to risk management, our understanding of the subject matter, and we seek good returns for what we do in those jurisdictions.

Speaker #3: Great, thank you. And the next on the study pipeline, it's more than doubled since December. What's your historical conversion rate from study to project award, and how should we think about typical lead times?

Moderator: Great. Thank you. The next on the study pipeline. It is more than doubled since December. What is your historical conversion rate from study to project award, and how should we think about typical lead times? Also, how has the composition of these studies shifted? I.e., Americas-based majors versus emerging companies, or those with multi-asset.

Sam Wells: Great. Thank you. The next on the study pipeline. It is more than doubled since December. What is your historical conversion rate from study to project award, and how should we think about typical lead times? Also, how has the composition of these studies shifted? I.e., Americas-based majors versus emerging companies, or those with multi-asset.

Speaker #3: Also, how has the composition of these studies shifted? I mean, America's base majors versus emerging companies or those with multi-asset?

Speaker #2: Yeah. Well, maybe I'll start with the second part first. And that is that, look, I'm really pleased with the composition of the studies. And there are no chairs.

Peter De Leo: Yeah. Or maybe the second part first, and that is that, look, I am really pleased with the composition of the studies and as much as they demonstrate good geographic diversification, good commodity diversification, good clientele in terms of dealing with some of the globally diversified majors right the way through mid-tiers and juniors. I think it bodes well for the project pipeline moving forward. The other important thing is we are dealing with in that 90 plus 90 mix of studies, we have got some good advanced stage, definitive feasibility, bankable feasibility studies, some good pre-feas work, some good scoping study work, concept-level works. Again, it bodes well for that continuity of work through the various phases of a project's call it life cycle. In terms of conversion, it depends.

Speaker #2: They demonstrate good geographic diversification and good commodity diversification. They have good clientele, in terms of dealing with some of the globally diversified majors, right the way through to mid-tiers and juniors.

Speaker #2: And I think it bodes well for the project pipeline moving forward. The other important thing is we're dealing with, in that 90-plus-90 mix of studies, we've got some good advanced-stage, definitive feasibility, bankable feasibility studies, some good pre-feas work, some good scoping study work, concept-level works.

Speaker #2: Again, it bodes well for that continuity of work through the various phases of a project's life cycle. In terms of conversion, it depends. Well, I guess in terms of converting a project—a study—into a project, you're converting a definitive fees, or what they call a bankable fees, or advanced phase feasibility study into projects.

Peter De Leo: Well, I guess, in terms of converting a study into a project, you are converting a definitive fees or what they call the bankable fees or advanced phase feasibility study into projects. The early stuff obviously converts into a pre-feas and so on and so forth. But typically, if we are involved with a project, and we continue to do good work for our clients, we get carried forward through the various study phases. So that percentage of, call it tenure or retention, is very high. Then into execution, invariably, our clients need to bid the execution work. Obviously, it is the difference between 1.5%, 2% of CapEx to 15% of CapEx. So it is an important, often thing for them to be able to baseline, before simply awarding us an EPCM.

Speaker #2: The early stuff, obviously, converts into a pre-feas, and so on and so forth. But typically, if we're involved with a project and we continue to do good work for our clients, we get carried forward through the various study phases.

Speaker #2: So that percentage of, sort of, call it tenure or retention, is very high. And then, into execution, invariably our clients need to bid work—bid the execution work.

Speaker #2: Obviously, it's different between 1.5%, 2% of CapEx, 15% of CapEx, so it's an important thing for them to be able to baseline before simply awarding us an EPCM.

Speaker #2: I think, in pretty much every instance, an organization would like to carry forward the engineer who's done the study into execution. But it doesn't necessarily always work that way.

Peter De Leo: I think in pretty much every instance, an organization would like to carry forward the engineer who has done the study into execution, but that does not necessarily always work that way. But I would say that in plus 70% of cases, we are able to convert our advanced stage studies into projects which we execute.

Speaker #2: But I would say that, in over 70% of cases, we are able to convert our advanced-stage studies into projects which we execute.

Speaker #3: Okay, great. And just one more question before we open up the line to the analysts. On the Americas, it's great to see tendering underway across a handful of countries.

Moderator: Okay, great. Just one more question before we open up the line to the analysts. On the Americas, it is great to see tendering underway across a handful of countries. Can you just give us a sense of the tender pipeline quantum and realistic timeframe to material project award in that region? How does a project like the Blackwater expansion help credentialize that North American team in the region?

Sam Wells: Okay, great. Just one more question before we open up the line to the analysts. On the Americas, it is great to see tendering underway across a handful of countries. Can you just give us a sense of the tender pipeline quantum and realistic timeframe to material project award in that region? How does a project like the Blackwater expansion help credentialize that North American team in the region?

Speaker #3: Can you just give us a sense of the tender pipeline quantum and realistic timeframe to material project award in that region? And how does a project like the Blackwater expansion help credentialize that North American team in the region?

Speaker #2: Yeah. One of the projects is, again, quite good because we're working on some study work. We're working— we're bidding some EPCM work.

Peter De Leo: The timeline of the projects is again, quite good because again, we're working on some study work, we're bidding some EPCM work. We're really targeting the size of projects such as Minera San Cristóbal, which really suits us, I think, better, to enable us to build our Lima office, our Tucumán, our Buenos Aires offices, and Saxum's capabilities. Even the stuff that we're doing, we're tendering in Canada, Blackwater is by far the biggest of those. Typically, the work that we're tendering, certainly at an EPCM level, is sort of, I want to say, a project with a CapEx value somewhere between AUD 500 million and AUD 800 million. That again is very much in Lycopodium's sweet spot. To your question with regards to Blackwater Phase 2 and our involvement with Artemis Gold, as I said, we're delighted to be involved with Artemis Gold.

Speaker #2: We're really targeting the size of projects, such as San Cristobal, which really suits us, I think, better. To enable us to build our Lima office, our Tucumán, our Buenos Aires offices, and Saxon's capabilities.

Speaker #2: And even the stuff that we're doing and we're tendering in Canada, Blackwater is by far the biggest of those. Typically, the work that we're tendering, certainly on an EPCM level, is sort of, I'm going to say, a project with CapEx value somewhere between $500 and $800 million.

Speaker #2: But which, again, is very much in Lycopodium's sweet spot. But to your question with regard to Blackwater Phase Two and our involvement with Artemis, we're delighted to be involved with Artemis.

Speaker #2: The Artemis team is made up of a group of individuals with whom Lycopodium has worked before, so we've got a unique opportunity to become involved with that project.

Peter De Leo: The Artemis Gold team are made up of a group of individuals with whom Lycopodium has worked before. So we've got a unique opportunity to become involved with that project, which is a very, very significant project, certainly the largest thing we've undertaken in Canada from a boots to the grounds perspective. But it does credentialize you. We've worked with them and are working with them on their Phase 1 expansion, their Phase 1 rectification, now Phase 2 expansion project, which is a very significant project in its own right. Now starting to kick off and work with them on their Phase 3 study, which is very much a forward-looking, at this point in time, concept study, but could see us involved if we do the right thing, working with that organization well into the 2030s.

Speaker #2: It's a very, very significant project—certainly the largest thing we've undertaken in Canada from a boots-on-the-ground perspective. But it does credentialize you. I mean, we've worked with them, and are working with them, on their phase one expansion.

Speaker #2: Their phase one ratification. Now phase two, expansion project, which is a very significant project in kick-off, and working with them on their phase three study, which is very much a forward-looking, at this point in time, concept study.

Speaker #2: But could see us involved, if we do the right thing, working with that organization well into the 2030s. But successful delivery of Phase One or Phase One A, and successful delivery of Phase Two, will underscore our credentials in delivering full EPCM service in Canada.

Peter De Leo: But successful delivery of Phase 1, Phase 1A, and successful delivery of Phase 2 will underscore our credentials in delivering EPCM, full EPCM service in Canada. It helps us credentialize ourselves in terms of cold weather engineering. So for us, it's a really key and important project, and we've assigned significant resources, not only from within Canada but globally, to support that team and to deliver that project. It won't be without its challenges. All these projects have got challenges, but going well, so we're pleased.

Speaker #2: It helps us credentialize ourselves in terms of cold weather engineering. So for us, it's a really key and important project. And we're assigning significant resources, not only from within Canada but globally, to support that team in the delivery of that project.

Speaker #2: And it won't be without its challenges. All these projects have got challenges. But going well, so we're very pleased.

Speaker #3: Great, thank you. Next question comes from Ollie Porter at Euros. Ollie, please unmute your line and go ahead.

Moderator: Great. Thank you. Next question comes from Ollie Porter at Euroz Hartleys. Ollie, please unmute your line and go ahead.

Sam Wells: Great. Thank you. Next question comes from Ollie Porter at Euroz Hartleys. Ollie, please unmute your line and go ahead.

Speaker #4: Have you got me? Yep. Hi, Peyton, Justine. Thanks for taking the time. Just from me—so you guys are obviously guiding to big growth in 2027, which is fantastic.

Oliver Porter: Have you got me?

Oli Porter: Have you got me?

Peter De Leo: Yep.

Moderator: Yep.

Sam Wells: Yep.

Oliver Porter: Yep. Hey, Peter and Justine. Thanks for taking the time. Just from me, you are obviously guiding to big growth in 2027, which is fantastic. Beyond expanding the workforce, is there anything else you need to invest in internally to deliver at that elevated level? Or are the investments you have made over the last few years sufficient to prepare you for that?

Oli Porter: Yep. Hey, Peter and Justine. Thanks for taking the time. Just from me, you are obviously guiding to big growth in 2027, which is fantastic. Beyond expanding the workforce, is there anything else you need to invest in internally to deliver at that elevated level? Or are the investments you have made over the last few years sufficient to prepare you for that?

Speaker #4: Beyond expanding the workforce, is there anything else you need to invest in internally to deliver at that elevated level, or are the investments you've made over the last few years sufficient to prepare you for that?

Speaker #2: Look, structurally, from a corporate structure perspective and a structural perspective, no, there's nothing to invest in. Office space—I'll mention, we need office space in Lima.

Peter De Leo: Well, structurally, from a corporate structure perspective and a structural perspective, no, there is nothing to invest in. Office space, I mentioned, we need more office space in Lima, and we have identified the location. We are seeking to grow Lima to more capacity to about 110, 120 people. Toronto, we are planning to take up another piece of space there, which will enable us to grow that contingent to the levels we need. Vancouver, at the moment, it is quite a small office and it is only intended to be that, but we see opportunities to continue to grow Vancouver because the level of interest in our organization in terms of delivering studies and engaging with the clients and then as a pipeline into Latin America and other places, North America, has been really promising. So we will grow that office or move into a slightly larger office there as well.

Speaker #2: And we've identified the location. We're seeking to grow Lima to capacity, to about 110 or 120 people. In Toronto, we're planning to take up another piece of space there, which will enable us to grow that contingent to the levels we need.

Speaker #2: And Vancouver—the most small, quite a small office—and it was only intended to be that. But we see opportunities to continue to grow Vancouver because of the level of interest in our organization in terms of delivering studies and engaging with clients, and then as a pipeline into Latin America and other places in North America.

Speaker #2: It's been really promising, so we'll grow that office or move it to a slightly larger office there as well. So really, it's just that office space.

Peter De Leo: So really, it is just that office space. A lot of our IT, our licenses and things obviously vary with headcounts, but again, that is all accommodated within our budgets and plans and the like.

Speaker #2: A lot of our IT licenses and things obviously vary with headcounts, but again, that's all accommodated within our budgets and plans and the like.

Speaker #4: Excellent. And then just on the guidance again—so, providing guidance this early, clearly, is it indicative of an elevated level of confidence compared to prior periods?

Oliver Porter: Excellent. Then just on the guidance again. Guiding this early clearly, is it indicative of an elevated level of confidence comparative to prior periods? Does that confidence at this stage extend to 2028 relative to how you felt a year ago?

Oli Porter: Excellent. Then just on the guidance again. Guiding this early clearly, is it indicative of an elevated level of confidence comparative to prior periods? Does that confidence at this stage extend to 2028 relative to how you felt a year ago?

Speaker #4: Does that confidence at this stage extend to '28, relative to how you felt a year ago?

Speaker #2: Look, FY28's a long way out. But in terms of the market, I mean, and it's subject to the market, but in terms of the market, we're seeing kind of sustained opportunities.

Peter De Leo: Look, FY28 is a long way out.

Peter De Leo: But in terms of the market, and it is subject to the market, but in terms of the market, we are seeing kind of sustained opportunities. Really, it is about that. I think on one of the slides, we said that push into the Americas has increased our addressable market by 40%. That is what can drive continued growth into FY28 and beyond, but obviously, it is a long way out and God knows what will happen between now and then.

Speaker #2: And really, it's about that. And I think on one of the slides, we said that that push into the Americas has increased our addressable market by 40%.

Speaker #2: That's what can drive continued growth into FY28 and beyond. But, obviously, it's a long way out. And—

Speaker #4: Yeah. Lots of work to deliver on between now and then. All right. Thank you, Pete, Justine. Appreciate it. I'll pass it on.

Oliver Porter: Yeah. Lots of work to deliver on between now and then. All right. Thank you, Peter De Leo, Justine Campbell, appreciate it. I will pass it on.

Oli Porter: Yeah. Lots of work to deliver on between now and then. All right. Thank you, Peter De Leo, Justine Campbell, appreciate it. I will pass it on.

Speaker #3: Great. Thank you, Ollie. The next question comes from Sam Pittman at Taylor Colson. Sam, please go ahead and unmute your line.

Moderator: Great. Thank you, Ollie. Next question comes from Sam Pittman at Taylor Collison. Sam, please go ahead and unmute your line.

Sam Wells: Great. Thank you, Ollie. Next question comes from Sam Pittman at Taylor Collison. Sam, please go ahead and unmute your line.

Speaker #4: Can you hear me?

Speaker #5: Yep.

Speaker #2: Yep.

Speaker #3: Yes, we can.

Speaker #4: Perfect. Just in terms of the resource studies, obviously that's a pretty significant jump—half on half. What— I mean, clearly it's driven in part by a buoyant market, but what drove the increased studies number?

Sam Pittman: Can you hear me?

Peter De Leo: Yep.

Justine Campbell: Yep.

Moderator: Yes.

Peter De Leo: Yes.

Sam Pittman: Okay. Perfect. Just in terms of the resource studies, obviously, that's a pretty significant jump, half on half. Clearly, it's driven in part by a buoyant market, but what drove the increased studies number?

Speaker #2: A buoyant market being first, but also our approach—so this sort of focus on a regional approach. I'll give you an example of some of the early variants, some early fruit from that change in approach, or that tweak in approach.

Peter De Leo: Well, the buoyant market being first, but also our approach. This sort of focus on a regional approach. I will give you an example of some of the kind of bearing some early fruit for that change in approach or that tweak in approach. Our Melbourne office for a long time has been solely focused on industrial processes, engineering, project delivery, the same fundamental competencies and capabilities. But that office now reports in under our APAC hub. We have eliminated some silos, opened up some geographies, and that office is starting to see and engage in a broader scope. Our Brisbane office is winning Study work in its own right.

Speaker #2: Our Melbourne office, for a long time, has been solely focused on industrial processes—engineering and project delivery—the same sort of fundamental competencies and capabilities. But that office now reports in under our APAC hub.

Speaker #2: And so we've eliminated some silos, opening up some geographies, and that office is starting to see and engage in a broader scope. Our Brisbane office is winning study work in its own right. Cape Town is winning a fair amount of— I mean, Cape Town has won in the last— and has really interesting and important study work going on in uranium, in diamonds, in platinum, palladium, chromium, and other things, as well as gold.

Peter De Leo: Cape Town has really a fair amount of. I mean, Cape Town has won in the last and has some really interesting and important study work going on in uranium, in diamonds, in platinum, palladium, chromium, and other things, as well as gold. It's really taking that One Lycopodium approach across the hubs, trying to break down silos. I think that, for me, has been probably one of the main things we've been able to achieve in the last 12 months. It hasn't all happened in the last 12 months. It's been a work in progress for many years, but we're starting to see some good traction. The Americas. The list of studies that have been picked up between Toronto, Vancouver, and even with Saxum is impressive. It's an impressive list of studies across commodities, geographies, and clientele.

Speaker #2: So, it's really taking that one Lycopodium approach across the hubs—trying to break down silos. I think that, for me, has been probably one of the main things we've been able to achieve in the last 12 months, and it hasn't all happened in the last 12 months.

Speaker #2: It's been a work in progress for many years, but we're starting to see some good traction. So, in the Americas, the list of studies that have been picked up between Toronto, Vancouver, and even with Saxon is impressive.

Speaker #2: It's an impressive list of studies—across commodities, geographies, and clientele.

Speaker #4: Yeah, that's all. Excellent result as well.

Sam Pittman: Yeah, that's all. Excellent result as well.

Speaker #3: Great. Thanks, Sam. Okay, just one final question here—just on FY27 guidance, and maybe Ollie got to this a little earlier—but the FY27 revenue midpoint of $560 million implies 50% growth year on year.

Moderator: Great. Thanks, Sam. Okay, just one final question here. Just on the FY27 guidance, and maybe Ollie got to this a little earlier, but the FY27 revenue midpoint of AUD 560 implies 50% growth year on year. What proportion is already locked in within the AUD 661 million committed contracts, and how much depends on projects still ramping or yet to formally commit?

Sam Wells: Great. Thanks, Sam. Okay, just one final question here. Just on the FY27 guidance, and maybe Ollie got to this a little earlier, but the FY27 revenue midpoint of AUD 560 implies 50% growth year on year. What proportion is already locked in within the AUD 661 million committed contracts, and how much depends on projects still ramping or yet to formally commit?

Speaker #3: What proportion is already locked in within the $661 million committed contracts, and how much depends on projects still ramping or yet to formally commit?

Speaker #2: Look, just under 70% is already committed, which is fantastic for this time of the year—the time of the financial year. So, being at 70% early in...

Peter De Leo: Just under 70% is already committed, which is fantastic for this time of the year, this time of the financial year, so being so early in. The balance, obviously, just over 30% still needs to commit. But some of that is, I feel, quite near-term as well, so we're in the final phases of discussion and negotiation for a number of things. Of course, there's, again, we're involved. I think one project that probably stands out a little bit is, given the news of the last couple of days, obviously, Katanga. We're involved with early works on that. It's a modest piece of work at this point in time. It'll be interesting to see how that plays out across the next 12 months.

Speaker #2: So yeah, the balance, obviously, is just over 30% still needs to commit. But some of that is, I feel, quite near term as well.

Speaker #2: So we're in the final phase of discussion and negotiation of a number of things. And of course, there's again, we're involved in one, I think, project that is probably stands out a little bit is given the news of the last couple of days, obviously containing.

Speaker #2: We're involved with early works, and it's a modest piece of work at this point in time. It'll be interesting to see how that plays out over the next 12 months.

Speaker #2: But, yeah, a lot of the work that we would be doing in the next financial year has already been booked or will be booked in the next month or so.

Peter De Leo: But yeah, a lot of the work that we would be doing in the next financial year has already been booked, or will be booked in the next month or so.

Speaker #3: Okay, great. Thank you. I think that's all the time—or that's all the questions—we have today. If there are any follow-ups, please feel free to email myself or Justine, and we'll endeavor to come back to you.

Moderator: Okay, great. Thank you. I think that's all the time, or that's all the questions we have today. If there are any follow-ups, please feel free to email myself or Justine, and we'll endeavor to come back to you. Maybe with that, Peter, I'll just pass it back to you for some closing comments.

Sam Wells: Okay, great. Thank you. I think that's all the time, or that's all the questions we have today. If there are any follow-ups, please feel free to email myself or Justine, and we'll endeavor to come back to you. Maybe with that, Peter, I'll just pass it back to you for some closing comments.

Speaker #3: And maybe with that, Peter, I'll just pass it back to you for some closing comments.

Speaker #2: Thanks very much. Well, again, listen, thanks, Ant, and thanks to those who posed questions this morning and asked the questions. And as Sam said, any questions that you have, please feel free to come through to us.

Peter De Leo: Thank you very much. Well, again, listen, thanks, Sam, and thanks for those that posed the questions this morning, asked questions. As Sam said, any questions you have, please feel free to come through to us, through Sam or Justine or myself, and we can seek to answer them for you. Thank you for listening in. Again, it's been a fantastic year. FY26 was a great year for Lycopodium, and we're looking to another great year ahead in FY27. So, thanks for all the support and for all the interest, and have a great day.

Speaker #2: Direct your questions to Sam, Justine, or myself, and we will be happy to answer them for you. Thank you for listening in. Again, it's been a fantastic year.

Speaker #2: FY26 was a great year for Lycopodium, and we're looking forward to another great year ahead in FY27. So, thanks for all the support and for all the interest.

Speaker #2: And have a great day.

Justine Campbell: Thank you.

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