Q4 2026 Evolution Mining Ltd Earnings Call

August 19, 2026

Speaker #2: Thank you for standing by, and welcome to the Evolution Mining Limited full-year 2026 financial results call. All participants are in listen-only mode.

Operator 2: Thank you for standing by, and welcome to the Evolution Mining Limited full year 2026 financial results call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number 1 on your telephone keypad. I would now like to hand the conference over to Lawrie Conway, Managing Director and Chief Executive Officer. Please go ahead.

Operator: Thank you for standing by, and welcome to the Evolution Mining Limited full year 2026 Financial Results Call. All participants are in a listen-only mode. There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Lawrie Conway, Managing Director and Chief Executive Officer. Please go ahead.

Speaker #2: There will be a presentation followed by a question-and-answer session. If you wish to ask a question, you'll need to press the star key followed by the number 1 on your telephone keypad.

Speaker #2: I would now like to hand the conference over to Mr. Henry Conway, Managing Director and Chief Executive Officer. Please go ahead.

Speaker #3: Thank you, Darcy, and good morning, everyone. I'm joined on the call today by Frances Summerhayes, our CFO, and Peter Roccia-Connor, our GM of Investor Relations.

Lawrie Conway: Thank you, Darcy, and good morning, everyone. I am joined on the call today by Fran Summerhayes, our CFO, and Peter O'Connor, our GM Investor Relations. Today, we released our FY26 full-year financial results on the ASX, including a presentation which will be the reference point for the call. Fran is excited to go through the financial results. In her first year at Evolution, so many new financial records have been set, and she is delivering a bumper record dividend. We also announced changes to our board. Tommy McKeith, who has been a director since 2014, will be retiring at our annual general meeting, and John Vann will be joining the board on 1 December. Tommy has been an invaluable contributor to the board, Evolution, and me personally. His knowledge and enthusiasm for the industry and almost every ore body is amazing.

Speaker #3: Today, we released our FY26 full-year financial results on the ASX, including a presentation, which will be the reference point for the call. Fran is excited to go through the financial results.

Speaker #3: In her first year at Evolution, so many new financial records have been set, and she is delivering a bumper, record dividend. We also announced changes to our board.

Speaker #3: Tommy McKee, who's been a director since 2014, will be retiring at our Annual General Meeting, and John Van will be joining the board on 1 December.

Speaker #3: Tommy has been an invaluable contributor to the Board, Evolution, and to me personally. His knowledge and enthusiasm for the industry and almost every ore body is amazing.

Speaker #3: As Jake commented in the release, it is fitting to acknowledge and recognize the lasting impact he has had on our business, culture, and success.

Lawrie Conway: As Jake commented in the release, it is fitting to acknowledge and recognize the lasting impact he has had on our business, culture, and success. Tommy will leave an enduring legacy, and we are extremely fortunate to benefit from his counsel, vision, wisdom, and friendship throughout his tenure. John is a geoscientist with more than three decades of experience across global mining businesses. I am sure he will be a valuable addition to our board and look forward to working with John when he joins us in December. Turning to the results and starting on slide 3. Our record results reflect the quality of our portfolio and above all, the dedication and efforts of the entire Evolution team. We are generating high returns and delivering on our commitment to shareholders.

Lawrie Conway: As Jake commented in the release, it is fitting to acknowledge and recognize the lasting impact he has had on our business, culture, and success. Tommy will leave an enduring legacy, and we are extremely fortunate to benefit from his counsel, vision, wisdom, and friendship throughout his tenure. John is a geoscientist with more than three decades of experience across global mining businesses. I am sure he will be a valuable addition to our board and look forward to working with John when he joins us in December. Turning to the results and starting on slide three. Our record results reflect the quality of our portfolio and above all, the dedication and efforts of the entire Evolution team. We are generating high returns and delivering on our commitment to shareholders.

Speaker #3: Tommy will leave an enduring legacy, and we are extremely fortunate to benefit from his counsel, vision, wisdom, and friendship throughout his tenure. John is a geoscientist with more than three decades of experience across global mining businesses.

Speaker #3: I'm sure he will be a valuable addition to our board, and I look forward to working with John when he joins us in December. Turning to the results and starting on slide 3.

Speaker #3: Our record results reflect the quality of our portfolio and, above all, the dedication and efforts of the entire Evolution team. We are generating high returns and delivering on our commitment to shareholders.

Speaker #3: The record financial performance is on the back of safe, consistent, and reliable operational delivery, complemented by our disciplined approach to cost and capital management.

Lawrie Conway: The record financial performance is on the back of safe, consistent, and reliable operational delivery, complemented by our disciplined approach to cost and capital management. As mentioned on the quarterly call last month, we delivered 2026 safely with our total recordable injury frequency of 5.9 remaining low. Today, we also released our inaugural climate report under the new reporting standard, highlighting the positive work being undertaken throughout our business to leave a lasting, sustainable legacy. Our high margin business is generating significant cash flow with a record cash flow of nearly AUD 1.4 billion. The updated dividend policy with a payout rate of targeting 60% of annual group cash flow is sector leading. This means a record final dividend of AUD 0.21 per share. For context, the total 2026 dividend of AUD 833 million is more than our market cap was in early 2015 when we made our first major acquisition.

Speaker #3: As mentioned on the quarterly call last month, we delivered FY26 safely, with our total recordable injury frequency of 5.9 remaining low. Today, we also released our inaugural climate report under the new reporting standard.

Speaker #3: Highlighting the positive work being undertaken throughout our business to leave a lasting, sustainable legacy. Our high-margin business is generating significant cash flow, with a record cash flow of nearly $1.4 billion.

Speaker #3: The updated dividend policy, with a payout rate targeting 60% of annual group cash flow, is sector-leading. This means a record final dividend of $21 per share.

Lawrie Conway: This means a record final dividend of AUD 0.21 per share. For context, the total 2026 dividend of AUD 833 million is more than our market cap was in early 2015 when we made our first major acquisition.

Speaker #3: For context, the total FY26 dividend of $833 million is more than our market cap was in early 2015, when we made our first major acquisition.

Speaker #3: The multiple projects at Northparkes, Ernest Henry, and Cowal will generate high returns and further improve the quality of the portfolio when completed. We are set to continue our safe, reliable performance in FY27, with guidance expected to sustain our high-margin, high cash generation position.

Lawrie Conway: The multiple projects at Northparkes, Ernest Henry, and Cowal will generate high returns and further improve the quality of the portfolio when completed. We are set to continue our safe, reliable performance in 2027 with guidance expected to sustain our high margin, high cash generation position. I will cover the guidance details later. Moving to slide 4, this slide demonstrates our disciplined allocation of capital to drive sustained high returns. Our balance sheet supports our strategy through the cycle, be that for value accretive acquisitions, high returning organic growth investment, or dividends. We adapt our allocation depending on market situations and the different stages of our mine plans. It is always done with a view to maximize our shareholder returns. While we have been mainly focused on advancing our organic growth pipeline in the past couple of years, we have not ignored accretive deals or our shareholders.

Lawrie Conway: The multiple projects at Northparkes, Ernest Henry, and Cowal will generate high returns and further improve the quality of the portfolio when completed. We are set to continue our safe, reliable performance in 2027 with guidance expected to sustain our high margin, high cash generation position. I will cover the guidance details later. Moving to slide four, this slide demonstrates our disciplined allocation of capital to drive sustained high returns. Our balance sheet supports our strategy through the cycle, be that for value accretive acquisitions, high returning organic growth investment, or dividends. We adapt our allocation depending on market situations and the different stages of our mine plans. It is always done with a view to maximize our shareholder returns. While we have been mainly focused on advancing our organic growth pipeline in the past couple of years, we have not ignored accretive deals or our shareholders.

Speaker #3: I will cover the guidance details later on. Moving to slide 4, this slide demonstrates our disciplined allocation of capital to drive sustained, high returns.

Speaker #3: Our balance sheet supports our strategy through the cycle, whether that's for value-accretive acquisitions, high-returning organic growth investment, or dividends. We adapt our allocation depending on market conditions and the different stages of our mine plans.

Speaker #3: It is always done with a view to maximize our shareholder returns. While we've been mainly focused on advancing our organic growth pipeline in the past couple of years, we have not ignored accretive deals or our shareholders.

Speaker #3: Over the past year, the allocation of funds between organic growth opportunities and dividends is almost a 50/50 split, at around $830 to $850 million for each of them.

Lawrie Conway: Over the past year, the allocation of funds between organic growth opportunities and dividends is almost a 50/50 split at around AUD 830 to AUD 850 million for each of them. We have also done accretive deals. At approximately AUD 250 million, this is smaller in scale than normal, yet they are just as important to the portfolio. It clearly shows that we have the capacity and flexibility to allocate into all three areas to sustain the high returns for shareholders, which Fran will demonstrate. With that, I will hand over to Fran.

Lawrie Conway: Over the past year, the allocation of funds between organic growth opportunities and dividends is almost a 50/50 split at around AUD 830 to 850 million for each of them. We have also done accretive deals. At approximately AUD 250 million, this is smaller in scale than normal, yet they are just as important to the portfolio. It clearly shows that we have the capacity and flexibility to allocate into all three areas to sustain the high returns for shareholders, which Fran will demonstrate. With that, I will hand over to Fran.

Speaker #3: We have also done accretive deals. At approximately $250 million, this is smaller in scale than normal, yet they are just as important to the portfolio.

Speaker #3: It clearly shows that we have the capacity and flexibility to allocate into all three areas to sustain the high returns for shareholders, which Fran will demonstrate.

Speaker #3: With that, I'll hand over to Fran.

Speaker #4: Thank you, Laurie. And good morning, everyone. It is my pleasure and privilege, in my first year with Evolution, to present our most successful financial results on record.

Fran Summerhayes: Thank you, Lawrie, and good morning, everyone. It is my pleasure and privilege in my first year with Evolution to present our most successful financial results. These financial results reflect the quality of our portfolio, the consistency and resilience of our performance, and the benefits of a high margin operations. Importantly, we have banked the benefits of the higher metal prices, and we have shared this success with our shareholders. We are very proud of what our Evolution team has achieved. We delivered a record underlying EBITDA of AUD 3.2 billion, up 44% from last financial year with an annual record underlying EBITDA margin of 57%. Our costs are sector leading with our all-in sustaining costs of AUD 1,717 an ounce, resulting in an underlying net profit after tax of AUD 1.6 billion, up 63%.

Franes Summerhayes: Thank you, Lawrie, and good morning, everyone. It is my pleasure and privilege in my first year with Evolution to present our most successful financial results. These financial results reflect the quality of our portfolio, the consistency and resilience of our performance, and the benefits of a high margin operations. Importantly, we have banked the benefits of the higher metal prices, and we have shared this success with our shareholders. We are very proud of what our Evolution team has achieved. We delivered a record underlying EBITDA of AUD 3.2 billion, up 44% from last financial year with an annual record underlying EBITDA margin of 57%. Our costs are sector leading with our all-in sustaining costs of AUD 1,717 an ounce, resulting in an underlying net profit after tax of AUD 1.6 billion, up 63%.

Speaker #4: These financial results reflect the quality of our portfolio, the consistency and resilience of our performance, and the benefits of a high-margin operation. Importantly, we have banked the benefits of the higher metal prices, and we have shared this success with our shareholders.

Speaker #4: We are very proud of what our Evolution team has achieved. We delivered a record underlying EBITDA of $3.2 billion, up 44% from last financial year.

Speaker #4: With an annual record underlying EBITDA margin of 57%. Our costs are sector leading, with our all-in sustaining costs of $1,717 an ounce, resulting in an underlying net profit after tax of $1.6 billion, up 63%.

Speaker #4: This translates into a record group cash flow of $1.4 billion, up 76% from the prior year, with earnings per share reaching a record $0.73 per share, up 57% on the prior year.

Fran Summerhayes: This translates into a record group cash flow of AUD 1.4 billion, up 76% from prior years, with earnings per share reaching a record AUD 0.73 per share, up 57% on prior years. These financial results demonstrate that we continue to deliver on our commitments to our shareholders, returning a record fully franked final dividend of AUD 0.21 per share, up 62%, making a total dividend for FY26 of AUD 0.41 per share, more than double from prior years, and is 60% of our FY26 group cash flow. We have de-geared the balance sheet and achieved a net cash position, demonstrating that we can simultaneously invest in the business to enhance the portfolio while increasing our shareholder returns. Highlighted on slide 6, this year, we have achieved a record net mine cash flow of AUD 2.1 billion, more than double from prior years.

Franes Summerhayes: This translates into a record group cash flow of AUD 1.4 billion, up 76% from prior years, with earnings per share reaching a record AUD 0.73 per share, up 57% on prior years. These financial results demonstrate that we continue to deliver on our commitments to our shareholders, returning a record fully franked final dividend of AUD 0.21 per share, up 62%, making a total dividend for FY26 of AUD 0.41 per share, more than double from prior years, and is 60% of our FY26 group cash flow. We have de-geared the balance sheet and achieved a net cash position, demonstrating that we can simultaneously invest in the business to enhance the portfolio while increasing our shareholder returns. Highlighted on slide six, this year, we have achieved a record net mine cash flow of AUD 2.1 billion, more than double from prior years.

Speaker #4: These financial results demonstrate that we continue to deliver on our commitments to our shareholders, returning a record fully franked final dividend of 21 cents per share, up 62%.

Speaker #4: Making a total dividend of 41 cents per share—more than double from the prior year—and this is 60% of our FY26 group cash flow. Whilst we have geared the balance sheet and achieved a net cash position, this demonstrates that we can simultaneously invest in the business to enhance the portfolio while increasing our shareholder returns.

Speaker #4: Highlighted on slide 6, this year we have achieved a record net mine cash flow of $2.1 billion—more than double from the prior year. We invested $1.1 billion of capital into our operations, with high-returning growth projects that are all on schedule and on budget.

Fran Summerhayes: We invested AUD 1.1 billion of capital into our operations with high returning growth projects that are all on schedule and budget. Across the portfolio, we have had annual record net mine cash flow at Cowal, Northparkes, Red Lake, and Mungari. We continue to deliver consistently high EBITDA margins across the portfolio, as demonstrated on the right side of this slide, with group EBITDA margin increasing 12% to 57%. Two standout year-on-year performance were Red Lake and Mungari. Red Lake delivered an underlying EBITDA margin of 62%, reflecting consistent and reliable operational execution and cost control in a tariff environment. This converts into almost four times net mine cash flows than prior years. The operation has demonstrated its ability to sustainably generate returns and has earned the right to compete for capital within our portfolio.

Franes Summerhayes: We invested AUD 1.1 billion of capital into our operations with high returning growth projects that are all on schedule and budget. Across the portfolio, we have had annual record net mine cash flow at Cowal, Northparkes, Red Lake, and Mungari. We continue to deliver consistently high EBITDA margins across the portfolio, as demonstrated on the right side of this slide, with group EBITDA margin increasing 12% to 57%. Two standout year-on-year performance were Red Lake and Mungari. Red Lake delivered an underlying EBITDA margin of 62%, reflecting consistent and reliable operational execution and cost control in a tariff environment. This converts into almost four times net mine cash flows than prior years. The operation has demonstrated its ability to sustainably generate returns and has earned the right to compete for capital within our portfolio.

Speaker #4: Across the portfolio, we have had record annual net mine cash flow at Cowal, Northparkes, Red Lake, and Mungari. We continue to deliver consistently high EBITDA margins across the portfolio, as demonstrated on the right side of this slide.

Speaker #4: With group EBITDA margin increasing 12% to 57%. Two standout year-on-year performances were Redlake and Mongari. Redlake delivered an underlying EBITDA margin of 62%, reflecting consistent and reliable operational execution and cost control in a tariff environment.

Speaker #4: This converts into almost four times the net mine cash flows of the prior year. The operation has demonstrated its ability to sustainably generate returns and has earned the right to compete for capital within our portfolio.

Speaker #4: Mungari was another year-on-year standout, achieving an EBITDA margin of 65% following the successful commissioning and ramp-up of the expanded 4.2 million tonne per annum processing plant.

Fran Summerhayes: Mungari was another year-on-year standout, achieving an EBITDA margin of 65% following the successful commissioning and ramp up of the expanded 4.2 million ton per annum processing plant. The project was delivered 15% below budget and nine months ahead of schedule. Importantly, this directly converted into a net mine cash flow of AUD 366 million, more than three times from prior years. These operations highlight the value created through disciplined capital allocation, focused project execution, and consistent operational delivery across the portfolio. We enter financial year 2027 with a fully unhedged gold and copper portfolio. Moving to slide 7. These all-time financial records for Evolution Mining translate directly into record shareholder returns as we continue to deliver on our commitment in rewarding our shareholders. At year-end, the group held almost AUD 1.4 billion of cash, with an undrawn revolving credit facility of AUD 525 million, providing us sufficient liquidity.

Franes Summerhayes: Mungari was another year-on-year standout, achieving an EBITDA margin of 65% following the successful commissioning and ramp up of the expanded 4.2 million ton per annum processing plant. The project was delivered 15% below budget and nine months ahead of schedule. Importantly, this directly converted into a net mine cash flow of AUD 366 million, more than three times from prior years. These operations highlight the value created through disciplined capital allocation, focused project execution, and consistent operational delivery across the portfolio. We enter financial year 2027 with a fully unhedged gold and copper portfolio. Moving to slide 7. These all-time financial records for Evolution Mining translate directly into record shareholder returns as we continue to deliver on our commitment in rewarding our shareholders. At year-end, the group held almost AUD 1.4 billion of cash, with an undrawn revolving credit facility of AUD 525 million, providing us sufficient liquidity.

Speaker #4: The project was delivered 15% below budget and nine months ahead of schedule. Importantly, this directly converted into a net mine cash flow of $366 million, more than three times that of the prior year.

Speaker #4: These operations highlight the value created through disciplined capital allocation, focused project execution, and consistent operational delivery across the portfolio. We enter financial year 2027 with a fully unhedged gold and copper portfolio.

Speaker #4: Moving to slide 7, these all-time financial records for Evolution translate directly into record shareholder returns, as we continue to deliver on our commitment to rewarding our shareholders.

Speaker #4: At year end, the group held almost $1.4 billion of cash, with an undrawn revolving credit facility of $525 million, providing us with sufficient liquidity. During the year, we have repaid all our bank term debt, and we now only have our low-cost and long-tenure US private placement with an average fixed rate of 4.47%.

Fran Summerhayes: During the year, we have repaid all our bank term debt, and we now only have our low cost and long tenure US private placement with an average fixed rate of 4.47%, with the first tranche not due to be repaid until November 2028. During the year, we have maintained our investment-grade credit rating, reinforcing the quality of our portfolio, balance sheets, and long-term outlook. Following these record financial results, we are pleased to reward our shareholders with our highest ever dividend. After paying a record fully franked interim dividend of AUD 0.20 per share, the board has approved a 27th consecutive dividend and a record fully franked final dividend of AUD 0.21 per share. Given our improved financial position and outlook, we have reviewed our dividend policy and increased the payout ratio to a target of 60% of annual group cash flows, a significant increase from the previous 50%.

Franes Summerhayes: During the year, we have repaid all our bank term debt, and we now only have our low cost and long tenure US private placement with an average fixed rate of 4.47%, with the first tranche not due to be repaid until November 2028. During the year, we have maintained our investment-grade credit rating, reinforcing the quality of our portfolio, balance sheets, and long-term outlook. Following these record financial results, we are pleased to reward our shareholders with our highest ever dividend. After paying a record fully franked interim dividend of AUD 0.20 per share, the board has approved a 27th consecutive dividend and a record fully franked final dividend of AUD 0.21 per share. Given our improved financial position and outlook, we have reviewed our dividend policy and increased the payout ratio to a target of 60% of annual group cash flows, a significant increase from the previous 50%.

Speaker #4: With the first tranche not due to be repaid until November 28. During the year, we have maintained our investment-grade credit ratings, reinforcing the quality of our portfolio, balance sheet, and long-term outlook.

Speaker #4: Following these record financial results, we are pleased to reward our shareholders with our highest ever dividend. After paying a record fully franked interim dividend of 20 cents per share, the Board has approved a 27th consecutive dividend and a record fully franked final dividend of 21 cents per share.

Speaker #4: Given our improved financial position and outlook, we have reviewed our dividend policy and increased the payout ratio to a target of 60% of annual group cash flows, a significant increase from the previous 50%.

Speaker #4: This sector-leading dividend policy is supported by our 17-year reserve life and reflects our confidence in the long-term strength of the business, while reinforcing our commitment to rewarding our shareholders.

Fran Summerhayes: This sector-leading dividend policy is supported by our 17-year reserve life and reflects our confidence in the long-term strength of the business while reinforcing our commitment to rewarding our shareholders. Since financial year 2023, we have delivered on our commitment to deleverage the balance sheet, reducing gearing from 33% net debt to a net cash position in just 3 years, while continuing to invest in the business and deliver shareholder returns. Our capital management plan is designed to maximize long-term shareholder value while maintaining disciplined investment to continually enhance the quality of the portfolio and balance sheet. As slide 8 shows, our record financial performance is underpinned by consistent and disciplined capital allocation. We continue to enhance the quality, resilience, and longevity of our portfolio through investment in high return growth opportunities while improving overall portfolio returns.

Franes Summerhayes: This sector-leading dividend policy is supported by our 17-year reserve life and reflects our confidence in the long-term strength of the business while reinforcing our commitment to rewarding our shareholders. Since financial year 2023, we have delivered on our commitment to deleverage the balance sheet, reducing gearing from 33% net debt to a net cash position in just 3 years, while continuing to invest in the business and deliver shareholder returns. Our capital management plan is designed to maximize long-term shareholder value while maintaining disciplined investment to continually enhance the quality of the portfolio and balance sheet. As slide 8 shows, our record financial performance is underpinned by consistent and disciplined capital allocation. We continue to enhance the quality, resilience, and longevity of our portfolio through investment in high return growth opportunities while improving overall portfolio returns.

Speaker #4: Since financial year '23, we have delivered on our commitment to deleverage the balance sheet, reducing gearing from 33% net debt to a net cash position in just three years.

Speaker #4: While continuing to invest in the business and deliver shareholder returns, our capital management plan is designed to maximize long-term shareholder value, while maintaining disciplined investment to continually enhance the quality of the portfolio and balance sheet.

Speaker #4: As slide 8 shows, our record financial performance is underpinned by consistent and disciplined capital allocation. We continue to enhance the quality, resilience, and longevity of our portfolio through investment in high-return growth opportunities, while improving overall portfolio returns.

Speaker #4: The board-approved projects shown on this slide at half-year results demonstrate this approach in action. Now, while this is one financial metric we look at, based on the current gold and copper prices, the expected internal rates of return for these projects are materially higher than the original base case assumptions, providing additional value and upside for our shareholders in current market conditions.

Fran Summerhayes: The board approved projects shown on this slide at H1 results demonstrate this approach in action. While this is one financial metric we look at, based on the current gold and copper prices, the expected internal rates of return for these projects are materially higher than the original base case assumptions, providing additional value and upside for our shareholders in current market conditions. As we enter financial year 2027, Evolution is in a position of considerable financial flexibility. We are operating in a supportive gold and copper price environment and focused on banking the upside. We have a high quality and high margin portfolio of assets, a pipeline of fully self-funded high return growth opportunities, and the financial capacity to execute on our strategy and continue to reward our shareholders. I will now hand you back to Lawrie. Thank you.

Franes Summerhayes: The board approved projects shown on this slide at H1 results demonstrate this approach in action. While this is one financial metric we look at, based on the current gold and copper prices, the expected internal rates of return for these projects are materially higher than the original base case assumptions, providing additional value and upside for our shareholders in current market conditions. As we enter financial year 2027, Evolution is in a position of considerable financial flexibility. We are operating in a supportive gold and copper price environment and focused on banking the upside. We have a high quality and high margin portfolio of assets, a pipeline of fully self-funded high return growth opportunities, and the financial capacity to execute on our strategy and continue to reward our shareholders. I will now hand you back to Lawrie. Thank you.

Speaker #4: As we enter financial year 2027, Evolution is in a position of considerable financial flexibility. We are operating in a supportive gold and copper price environment and are focused on banking the upside.

Speaker #4: We have a high-quality, high-margin portfolio of assets, a pipeline of fully self-funded, high-return growth opportunities, and the financial capacity to execute on our strategy and continue to reward our shareholders.

Speaker #4: I will now hand you back to Laurie. Thank you.

Speaker #1: Thank you, Fran. Slide 9 summarizes our FY27 guidance. The charts on the right-hand side highlight our cash flow potential outcome at the midpoint of guidance at current prices and our sensitivities.

Lawrie Conway: Thank you, Fran. Slide 9 summarizes our FY27 guidance. Charts on the right-hand side highlights our cash flow potential outcome at the midpoint of guidance at current prices and our sensitivities. Overall, our FY27 plan will enable us to generate significant cash flows. At current prices, our operating mine cash flow would be around AUD 3.6 billion, which is AUD 200 million higher than FY26, even allowing for cost escalation in FY27. If the metal prices were around consensus levels, the cash flow would be approximately AUD 3.4 billion. At a range of AUD 3.4 to 3.6 billion, and allowing for our planned capital investment and other costs such as tax, exploration, and overheads, our group cash flow will allow us to sustain meaningful dividends for shareholders.

Speaker #1: Overall, our FY27 plan will enable us to generate significant cash flows. At current prices, our operating mine cash flow would be around $3.6 billion, which is $200 million higher than FY26, even allowing for cost escalation in FY27.

Speaker #1: If the metal prices were around consensus levels, the cash flow would be approximately $3.4 billion. At a range of $3.4 to $3.6 billion, and allowing for our planned capital investment and other costs such as tax, exploration, and overheads, our group cash flow will allow us to sustain meaningful dividends for shareholders. We know the main drivers to our cash flow, as shown on the sensitivities chart, and we manage each of these in line with our cost and capital discipline.

Lawrie Conway: We know the main drivers to our cash flow, as shown on the sensitivities chart, and we manage each of these in line with our cost and capital discipline. In terms of the guidance details, our group production is guided at 660,000 to 730,000 ounces of gold and 63,000 to 70,000 tonnes of copper. Outside of Mt Rawdon finishing production this quarter, there is no material change in production capacity across the other operations. Production is weighted to the H2 of the year as we complete the access to the second decline at the Cowal underground mine and access new mining areas in Red Lake. The normal semi-annual major shutdowns will take place at Cowal and Ernest Henry in the September and March quarters.

Speaker #1: In terms of the guidance details, our group production is guided at 660,000 to 730,000 ounces of gold and 63,000 to 70,000 tons of copper.

Speaker #1: Outside of Mount Rawdon and finishing production this quarter, there is no material change in production capacity across the other operations. Production is weighted to the second half of the year as we complete access to the second decline at the Cowal underground mine and access new mining areas in Red Lake.

Speaker #1: The normal semi-annual major shutdowns will take place at Cowell and Ernest Henry in the September and March quarters. For the September quarter, we expect to produce in the range of 160,000 to 166,000 ounces, and copper in the range of 16,000 to 17,000 tons.

Lawrie Conway: For the September quarter, we are expected to produce in the range of 160,000 to 166,000 ounces, and copper in the range of 16,000 to 17,000 tonnes. Our group all-in sustaining cost is guided at AUD 1,795 to AUD 1,995 per ounce, which will remain one of the lowest in the sector. This is based on a copper price of US $5.72 per pound, compared to the spot price that is approximately 15% higher. As outlined last month, the main drivers to the change in the all-in sustaining cost is the impact of cost escalation, assumed at 4% to 5% or AUD 150 to AUD 160 per ounce, as well as the decision to invest an additional AUD 50 to AUD 60 million in sustaining capital on fleet and infrastructure to ensure long-term operational reliability. Our group capital guidance aligns to our FY27 outlook outlined in our June quarterly report.

Speaker #1: Our group all-in sustaining cost is guided at $17.95 to $19.95 per ounce, which will remain one of the lowest in the sector. This is based on a copper price of US$5.72 per pound, compared to the spot price that is approximately 15% higher.

Speaker #1: As outlined last month, the main drivers for the change in the all-in sustaining cost are the impact of cost escalation, assumed at 4 to 5%, or $150 to $160 per ounce, as well as the decision to invest an additional $50 to $60 million in sustaining capital on fleet and infrastructure to ensure long-term operational reliability.

Speaker #1: Our group capital guidance aligns to our FY27 outlook, outlined in our June quarterly report. The main areas of investment for major projects and mine development are on the approved growth projects, namely E22, Coarse Particle Flotation, and the expansion study at Northparkes, the Overpit continuation project at Cowal, and the development of the Burt orebody at Ernest Henry.

Lawrie Conway: The main areas of investment for major projects and mine development are on the approved growth projects, namely E22, coarse particle flotation, and the expansion study at Northparkes, the open pit continuation project at Cowal, and the development of Bert at Ernest Henry. All these projects remain within the original approved budget. In summary, on slide 10, we have a high-margin business and a 17-year reserve life. We are very much focused on delivering sustained returns. The combined effort throughout our business over the past couple of years to deliver safe and reliable performance is set to continue in FY27. We remain committed to margin over ounces, while at the same time making sure we capture the benefits of the high metal prices. All our growth projects remain on schedule and budget. The balance sheet flexibility enables us to continue executing our strategy with confidence.

Speaker #1: All these projects remain within the original approved budget. In summary, as shown on slide 10, we have a high-margin business and a 17-year reserve life. We are very much focused on delivering sustained returns.

Speaker #1: The combined effort throughout our business over the past couple of years to deliver safe and reliable performance is set to continue in FY27. We remain committed to margin over ounces, while at the same time making sure we capture the benefits of the high metal prices.

Speaker #1: All our growth projects remain on schedule and on budget. The balance sheet flexibility enables us to continue executing our strategy with confidence. Out of all of this, we make sure our shareholders benefit, and our improved dividend policy, targeting a 60% payout rate, demonstrates that.

Lawrie Conway: Out of all of this, we make sure our shareholders benefit, and our improved dividend policy targeting a 60% payout rate demonstrates that. For FY26, the dividend is equal to 20% of our achieved gold price, which is an outstanding return for our shareholders. Darcy, please open the line for questions.

Speaker #1: For FY26, the dividend is equal to 20% of our achieved gold price, which is an outstanding return for our shareholders. Darcy, please open the line for questions.

Speaker #2: Thank you. If you wish to ask a question, please press star one on your telephone. They need to be announced. If you wish to cancel the request, please press star two.

Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and waiting to be announced. If you wish to cancel the request, please press star two. If you're on a speakerphone, please pick up the handset to ask your. Your first question comes from Kate McCutcheon with Bank of America. Please-

Operator: Thank you. If you wish to ask a question, please press star one on your telephone and waiting to be announced. If you wish to cancel the request, please press star two. If you're on a speakerphone, please pick up the handset to ask your. Your first question comes from Kate McCutcheon with Bank of America. Please-

Speaker #2: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Kate McCutchen with Bank of America. Please go ahead.

Speaker #3: Hi, good morning, Laurie. Congrats on the results. Can we just revisit the CapEx again for '27, which you gave us last month? We previously had the $0.9 to $1.1 billion to FY30, so say circa $5.6 billion from '27 to '30.

Kate McCutcheon: Hi. Good morning, Lawrie. Congrats on the results. Can we just revisit the CapEx again for 2027, which you gave us last month? We previously had the AUD 0.9 to AUD 1.1 billion to FY30, so say circa AUD 5.6 billion 2027 to 2030. Can you remind me what's in and out in terms of upcoming projects, like Northparkes Mill expansion, for example? I'm trying to work out, do we still think about that same envelope extent to FY30? If it's just this year that's lumpier, how has that envelope changed?

Speaker #3: Can you remind me what's in and out in terms of upcoming projects, like the Northparkes Mill expansion, for example? And then, I guess I'm trying to work out: do we still think about that same envelope of spend to FY30, and is it just this year that's lumpier? How has that envelope changed?

Speaker #1: Yeah, thanks, Kate. Look, so the CapEx outlook of the $900 to $1.1 billion for FY30, the projects that are in there—the OPC at Cowal, the E22 and Burdekin mine developments, the Coarse Particle Flotation, and obviously our sustaining capital.

Lawrie Conway: Yeah. Thanks, Kate. The CapEx outlook of the AUD 900 million to AUD 1.1 billion FY30. The projects that are in there are the OPC at Cowal, the E22, and Bert, mine developments, the coarse particle flotation, and obviously our sustaining capital. So they are all of those projects. The outcome of the study at Northparkes will determine what we invest in terms of if we expand the capacity there. The only changes to that previous outlook is the additional sustaining capital that we've outlined today and last month of AUD 50 to AUD 60 million a year. We did say that we expect that to be at least for the next 3 years, that we'll be investing at that higher rate. This year, the AUD 70 to AUD 90 million on studies and works that we're going to undertake for future growth options.

Speaker #1: So, they are all of those projects. The outcome of the study at North Parks will determine what we invest, in terms of if we expand the capacity there.

Speaker #1: So the only changes to that previous outlook are the additional sustaining capital that we've outlined today and last month of $50 to $60 million a year. And we did say that we expect that to be at least for the next three years, that we'll be investing at that higher rate.

Speaker #1: And this year, the $70 to $90 million on studies and works that we're going to undertake for future growth options. So if you look at it, there's nothing in terms of capital inflation that we're building into there.

Lawrie Conway: If you look at it, there's nothing in terms of capital inflation that we're building into there. There are no new major projects that we're bringing into that outlook, and the existing ones that are in execution are all on schedule and on original budget. Does that clarify it for you?

Speaker #1: There are no new major projects that we're bringing into that outlook, and the existing ones that are in execution are all on schedule and on their original budget.

Speaker #1: Does that clarify it for you?

Speaker #3: So the envelope is still essentially the same by the sustaining CapEx? Yeah. Okay, thank you. And then we had the Carnaby deal that you announced for another 10,000 tons of copper a year.

Kate McCutcheon: The envelope is still essentially the same bar, the sustaining CapEx?

Lawrie Conway: Correct.

Kate McCutcheon: Yeah. Okay. Thank you. We had the Carnaby deal that you announced for another 10,000 tons of copper a year. I know you haven't got the keys to the asset yet, but when do you think you could have first ore to the Ernest Henry mill? Secondly, there was the third-party tolling agreement with Glencore that you announced there separately. What is the thinking there, or how should we think about that part?

Speaker #3: And I know you haven't got the keys to the asset yet, but when do you think you could have the first ore to the Ernest Henry mill?

Speaker #3: And then secondly, there was the third party's holding agreement with Glencore that you announced there kind of separately. What is the thinking there, or how should we think about that part?

Speaker #1: So for the Carnaby deal, we expect that to close in November, subject to the Carnaby shareholder vote. We have then said it will be about 12 to 18 months to really close out that feasibility study.

Lawrie Conway: For the Carnaby deal, we expect that to close in November, subject to the Carnaby shareholder vote. We then have said it will be about 12 to 18 months to really close out that feasibility study. Beyond that, you'd be looking at about another 12 to 18 months. So you are potentially looking up to about three years from October, November. In terms of the third-party deal, that is linked to a project that Glencore has an offtake agreement on, the Mount Margaret one. If that project starts, that ore would come through into the plant, given that we've got that capacity. When we look at the Carnaby deal and that offtake agreement, we certainly have the capacity to do those, as well as anything that may come out of the Corella exploration program that we're currently running.

Speaker #1: And then beyond that, you'd be looking at about another 12 to 18 months. So you are potentially looking at up to about three years from October or November.

Speaker #1: In terms of the third-party deal, that is linked to a project that Glencore has an off-take agreement on—the Mount Margaret one.

Speaker #1: And so if that project starts, that all would come through into the plant, given that we've got that capacity. And when we look at the Carnaby deal and that off-take agreement, we certainly have the capacity to do those as well as anything that may come out of the Carella exploration program that we're currently running.

Speaker #3: Okay. And the Mount Margaret pit being the one that Exstrata previously mined? The satellite? Okay, got it. And then just quickly, the non-cash component that you've assumed in the Cowell all-in sustaining cost, please.

Kate McCutcheon: Okay, and the Mount Margaret pit being the one that Xstrata previously mined, the satellite.

Kate McCutcheon: Okay, and the Mount Margaret pit being the one that Xstrata previously mined, the satellite.Okay. Got it. Just quickly, the non-cash component that you've assumed in the Cowal all-in sustaining cost, please.

Lawrie Conway: Yes.

Kate McCutcheon: Okay. Got it. Just quickly, the non-cash component that you've assumed in the Cowal all-in sustaining cost, please.

Speaker #1: Give me 30 seconds. Cowell, in the non-cash component, is about $50 to $70 an ounce this year. Add to cost.

Lawrie Conway: Give me 30 seconds. Cowal in the non-cash component is about AUD 50 to AUD 70 an ounce this year add to cost.

Speaker #3: Thank you.

Kate McCutcheon: Thank you.

Speaker #2: Thank you. Your next question comes from Levi Fry with UBS. Go ahead.

Operator 2: Thank you. Your next question comes from Levi Spry with UBS. Go ahead.

Operator: Thank you. Your next question comes from Levi Spry with UBS. Go ahead.

Speaker #4: Good morning, Laurie and Fran. Maybe a question for Fran, I guess, just following on from the capital questions there. So if I think about what's potentially coming next at Northparkes, and maybe some of that Carnaby stuff, and maybe some more at Cowal, can you walk us through the process to arrive at the 60%?

Levi Spry: Good morning, Lawrie and Fran. Maybe a question for Fran, I guess, just following on from the capital questions there. If I think about what's potentially coming next at Northparkes and maybe some of that Carnaby stuff and maybe some more at Cowal. Can you walk us through the process to arrive at the 60%? What drives the upper band? And maybe you can talk to potentially what other forms of returns may or may not have come into consideration.

Speaker #4: What drives the upper band? And maybe you can talk about what other forms of returns may or may not have come into consideration.

Speaker #1: Yeah, Levi, I'll get Fran to talk about the capital allocation and dividends. All I'm working on the basis is that since Fran's arrived, we're paying a lot more out to shareholders.

Lawrie Conway: Yeah. Levi, I will get Fran to talk about the capital allocation and dividends. All I am working on the basis is that since Fran has arrived, we are paying a lot more out to shareholders, so she has got to build on that this year. In the capital, as I just said to Kate, all of the projects that are in execution and studies are in our outlook. The next major ones really will be the outcome of the study at Northparkes this year. Then at Cowal, it will be the outcomes of the exploration and drilling that we have got going on at E41 and the underground and potential for a second underground. They would be the next main pieces of capital. In terms of Carnaby and the Great Duchess project, we believe there is a lot more work to firm up that feasibility study.

Speaker #1: So she's got to build on that this year. In the capital, as I just said to Kate, all of the projects that are in execution and studies are in our outlook.

Speaker #1: The next major ones really will be the outcome of the study at North Parks this year. And then at Cowell, it will be the outcomes of the exploration and drilling that we've got going on at E41 and the underground, and the potential for a second underground.

Speaker #1: They would be the next main pieces of capital. In terms of Carnaby and the Great Duchess project, we believe there's a lot more work to firm up that feasibility study.

Speaker #1: And so, once we take ownership in November, we're going to turn our attention to completing that study. That's when we'll have the best indication to give you an outlook on what that capital would be.

Lawrie Conway: Once we take ownership in November, we are going to turn our attention to completing that study. That is when we will have the best indication to give you an outlook on what that capital would be. Fran, you just want to talk on the 60%?

Speaker #1: Fran, I just want to talk about the 60%.

Speaker #2: Yeah, sure. Thanks, Levi. So, our capital management plan is consistent and focused, obviously, on maximizing long-term value. And what I mean by that is, based on our life-of-mine plans and the quality of our assets, we look at the most economic way to bring our reserves and resources to market.

Fran Summerhayes: Yeah, sure. Thanks, Levi. Our capital management plan is consistent and focused, obviously, on maximizing long-term. What I mean by that is based on our life of mine plans, the quality of our assets, we look at the most economic way to bring our reserves and resources to market. So we are focused on balance and be disciplined, investing in our high returning growth options and opportunities within the portfolio, but also balancing rewarding our shareholders via capital returns. Given our financial position, the confidence in the outlook and portfolio, the highest return outcomes for our shareholders is increasing our target dividend payout to 60% of annual group cash flow. So we will be balanced in regards to investing in our business to maximize value and also maintain finance flexibility to confidently execute on our strategy.

Franes Summerhayes: Yeah, sure. Thanks, Levi. Our capital management plan is consistent and focused, obviously, on maximizing long-term. What I mean by that is based on our life of mine plans, the quality of our assets, we look at the most economic way to bring our reserves and resources to market. So we are focused on balance and be disciplined, investing in our high returning growth options and opportunities within the portfolio, but also balancing rewarding our shareholders via capital returns. Given our financial position, the confidence in the outlook and portfolio, the highest return outcomes for our shareholders is increasing our target dividend payout to 60% of annual group cash flow. So we will be balanced in regards to investing in our business to maximize value and also maintain finance flexibility to confidently execute on our strategy.

Speaker #2: So we're focused on balance and being disciplined, investing in our high-returning growth options and opportunities within the portfolio, but also balancing rewarding our shareholders via capital return.

Speaker #2: So, given our financial position, the confidence in the outlook and portfolio, the highest return outcome for our shareholders is increasing the dividend payout to 60% of annual group cash flow.

Speaker #2: So, we'll be balanced in regards to investing in our business to maximize value, and also maintain financial flexibility to confidently execute on our strategy.

Speaker #2: But as we've said before, we don't see value and we don't intend to accumulate excess cash on the balance sheet. So, if the gold or copper prices remain supportive and continue to increase, resulting in, say, cash generation higher than our business requirements, that's a good problem to have.

Fran Summerhayes: As we have said before, we do not see value, and we do not intend to accumulate excess cash on the balance sheet. If the gold or copper prices remain supportive and continue to increase, resulting in, say, cash generation before higher than our business requirements, obviously a good problem to have, we will continue to evaluate the full range of capital management options to reward our shareholders like we have done today.

Franes Summerhayes: As we have said before, we do not see value, and we do not intend to accumulate excess cash on the balance sheet. If the gold or copper prices remain supportive and continue to increase, resulting in, say, cash generation before higher than our business requirements, obviously a good problem to have, we will continue to evaluate the full range of capital management options to reward our shareholders like we have done today.

Speaker #2: We will continue to evaluate the full range of capital management options to reward our shareholders, as we have done today.

Speaker #4: Yep, that's great. Thanks. Thanks, Fran.

Levi Spry: Yep, that's great. Thanks. Thanks, Fran.

Speaker #2: Thanks, Levi. Thank you. Your next question comes from Matthew Friedman with MST Financial. Please go ahead.

Fran Summerhayes: Thanks, Levi.

Franes Summerhayes: Thanks, Levi.

Operator 2: Thank you. Your next question comes from Matthew Frydman with MST Financial. Please go ahead.

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

Speaker #1: Sure. Thanks. Morning, Laurie and Fran. A couple more, following up on similar themes. Maybe firstly on Carnaby, can you comment at all on the structure of the consideration?

Matthew Frydman: Sure. Thanks. Morning, Lawrie and Fran. A couple more following up from similar themes, maybe firstly on Carnaby. Can you comment at all on the structure of the consideration? Obviously, all scrip offer. You have AUD 1.35 billion in cash and pretty low-cost debt as Fran outlined. I know it is a very, very small amount of dilution, but wouldn't it be better for your existing shareholders to put some of that cash and balance sheet to work rather than issuing more equity? I guess, yeah, just wondering how you think about the structure there. Also how that relates to any other sort of bolt-on opportunities in general across your portfolio, whether you see any other opportunities for that sort of M&A. Thanks.

Speaker #1: Obviously, all scrip offer. You've got $1.35 billion in cash and pretty low-cost debt, as Fran outlined. I know it's a very, very small amount of dilution, but wouldn't it be better for your existing shareholders to put some of that cash on the balance sheet to work rather than issuing more equity?

Speaker #1: I guess, yeah, just wondering how you think about the structure there, and also how that relates to any other sort of bolt-on opportunities in general across your portfolio—where you see any other opportunities for that sort of M&A.

Speaker #1: Thanks. Yeah, Matt, look, I think when we look at it, we've got to also consider what was the Carnaby board and team's preference in terms of the transaction as well.

Lawrie Conway: Yeah, Matt. Look, I think when we look at it, we've got to also consider what was the Carnaby's board and team's preference in terms of the transaction as well in that, by us offering them scrip, they can continue to participate in the upside on the project, through taking shares in Evolution. I think the other thing, and we do try to limit issuing the stock, and this is 1%. I think when you look at it, that is the best use of our scrip at the moment in this transaction. Then as we look at other things going forward, if you look at all of our other acquisitions, we've always used a mix of cash, debt, and equity, and we will always do that depending on the size and the scale of it.

Speaker #1: And that by us offering them scrip, they can continue to participate in the upside on the project through taking shares in Evolution. I think the other thing, and we do try to limit issuing the stock, and this is 1%.

Speaker #1: I think, when you look at it, that is the best use of our script at the moment in this transaction. And then, as we look at other things going forward, if you look at all of our other acquisitions, we've always used a mix of cash, debt, and equity.

Speaker #1: And we will always do that depending on the size and the scale of it.

Speaker #3: Yeah, thanks, Laurie. And maybe any other opportunities across your portfolio for similar sort of bolt-on acquisitions? Obviously, Ernest Henry has the benefit of latent mill capacity, but yeah, how do you see that across your portfolio?

Matthew Frydman: Yeah. Thanks, Lawrie. Maybe any other opportunities across your portfolio for similar sort of bolt-on acquisitions? Obviously, Ernest Henry has the benefit of latent mill capacity, but yeah, how do you see that across your portfolio? Thanks.

Speaker #3: Thanks.

Speaker #1: I think if we look across the portfolio, Cowal, we're able to keep that plant field. Similarly, at Red Lake, Ernest Henry, we've got the land at Carella as well as now looking at Carnaby.

Lawrie Conway: I think if we look across the portfolio, Cowal, we're able to keep that plant filled. Similarly at Red Lake. Ernest Henry, we've got the land at Corella, as well as now looking at Carnaby. Northparkes, I think we've got enough ore bodies there to fill that plant, be it at current state or expanded state. Mungari is probably one that's got capacity, but there's not a lot of options right now for us to bring something in that would improve the quality at Mungari.

Speaker #1: North Parks, I think we've got enough orebodies there to fill that plant, be it at the current state or expanded state. And Mungari is probably one that's got capacity, but there's not a lot of options right now for us to bring something in that would improve the quality at Mungari.

Speaker #3: Got it, thanks, Laurie. That's helpful. And then, maybe just following up on the sort of capital management plan questions. Obviously, the company has a pretty enviable track record on dividends, and you’ve increased that further today with an update to the policy.

Matthew Frydman: Got it. Thanks, Lawrie. That's helpful. Then maybe just following up on the capital management plan questions. Obviously, the company has a pretty enviable track record on dividends, and you've increased that further today with an update to the policy. So I do feel a bit like I'm complaining that maybe the beer's a bit too cold, but with the cash on the balance sheet, I guess, what made the board reluctant to consider, I suppose, a broader range there or perhaps a special dividend or something to really sort of accelerate those shareholder returns in the current environment, current metal prices, current outlook? Thanks.

Speaker #3: So I do feel a bit like I'm complaining that maybe the bid is a bit too cold, but with the cash on the balance sheet, I guess what made the Board reluctant to consider, I suppose, a broader range there or perhaps a special dividend or something to really sort of accelerate those shareholder returns in the current environment—current metal prices, current outlook?

Speaker #3: Thanks.

Speaker #1: Yeah, Matt, I said over the last six months, no matter what capital management plan that Fran and the board end up with, we're not going to please every shareholder.

Lawrie Conway: Yeah. Matt, I said over the last 6 months, no matter what capital management plan that Fran and the board end up with, we are not going to please every shareholder. If we try to please everyone, we are probably going to please no one. I think when you look at AUD 1.4 billion of group cash flow, we are paying out over AUD 830 million of that back to our shareholders. I think that is an incredible rate of return. We could have easily gone higher than that, but I think that is a good step from a 50% to 60%. We have always said, as Fran said just earlier, we are not going to build a lot of cash. We cannot control. If the metal prices stay where they are, as I outlined with our guidance, we will make significant cash flows this year.

Speaker #1: If we try to please everyone, we're probably going to please no one. I think when you look at $1.4 billion of group cash flow, we're paying out over $830 million of that back to our shareholders.

Speaker #1: I think that's an incredible rate of return. We could have easily gone higher than that, but I think that's a good step—from 50% to 60%.

Speaker #1: We've always said, and as Fran said just earlier, we're not going to build a lot of cash. We can't control if the metal prices stay where they are. As I outlined with our guidance, we will make significant cash flows this year.

Speaker #1: And if the prices are higher, therefore the dividend cents per share will be higher for our shareholders. Then, in the next 12 months, if they do stay there, Fran's got another good problem of setting a new record for dividends and working out how much more to give back.

Lawrie Conway: If the prices are higher, therefore the dividend cents per share will be higher for our shareholders. In the next 12 months, if they do stay there, Fran has got another good problem of set a new record for dividends and work out how much more to give back. Is that given back through specials? Is it given back through buybacks or a higher payout rate? I am sorry we did not please you.

Speaker #1: And is that given back through specials? Is it given back through buybacks, or a higher payout rate? And I'm sorry, we didn't please you.

Speaker #3: No, no, that's a very pleasing outcome. Thanks, Laurie.

Matthew Frydman: No. That is a very pleasing outcome. Thanks, Lawrie.

Speaker #2: Thank you. Your next question comes from Daniel Morgan with Barron Joey. Please go ahead.

Operator 2: Thank you. Your next question comes from Daniel Morgan with Barrenjoey. Please go ahead.

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

Daniel Morgan: Hi, Lawrie and team. First question, just Ernest Henry. Obviously, cycling down in production a tad and spend stepping up. Is this just for FY27 or is this sort of the multi-year impact of developing down to get the life extension infrastructure in? Just sort of trying to understand the production and spend outlook a bit more at Ernest Henry. Thanks.

Speaker #3: Hi, Laurie. And Tim, first question: just on Ernest Henry. Obviously, cycling down in production at TAD and spend stepping up. Is this just for FY27, or is this sort of the multi-year impact of developing down to get the life extension infrastructure in?

Speaker #3: Just trying to better understand the production and spending outlook at Ernest Henry. Thank you.

Speaker #1: Yeah, Dan, it's actually a combination. So, as we know from the weather event, when we were out of production through the March quarter, where the water ended up was down at the development level.

Lawrie Conway: Yeah, Dan, it's actually a combination. As we know from the weather event when we were out of production through the March quarter and where the water ended up was down at the development level. So we've got to catch that up. We've got to put additional ventilation, refrigeration, and then we do have the trucking back up to the existing materials handling system. So, some of that, as we said, as we get to the H2 of the year and we get the ventilation and everything in place and we can therefore lift the productivity, you'll see some of that come back through. The other thing to note is that, in FY26 and 27, as we're going through some areas in the cave where there's waste in with the mineralized ore, we've got to take that with us. So that is obviously displacing ore.

Speaker #1: So we've got to catch that up. We've got to put in additional ventilation and refrigeration, and then we do have the trucking back up to the existing materials handling system.

Speaker #1: So, some of that, as we said, as we get to the second half of the year and we get the ventilation and everything in place, and we can therefore lift the productivity, you'll see some of that come back through.

Speaker #1: And the other thing to note is that in FY26 and FY27, as we're going through some areas in the cave where there is no ore, there's waste in with the mineralized zone, or we've got to take that with us.

Speaker #1: So, that is obviously displacing ore. Once we get through that zone, you then start to see it come back. So, it is a combination of both of those.

Lawrie Conway: Once we get through that zone, you then start to see it come back. So it is a combination of both of those. You'd likely see what we've got this year. We get ventilation back next year. We go a little bit deeper. So production 27 and 28 would be pretty similar, and then you start to get into it where you get Bert. You get back into more ore out of the cave and hopefully, not long after you get Carnaby coming through. Or I should be calling it Great Duchess.

Speaker #1: You'd likely see what we've got this year; we get ventilation back next year, we go a little bit deeper. So, production '27 and '28 would be pretty similar, and then you start to get into it where you get BERT, you get back into more ore out of the cave.

Speaker #1: And hopefully, not long after, you get Carnaby coming through—or I should be calling it Great Duchess.

Daniel Morgan: Thank you. I know it is a small deal, but you've just done a deal with Arizona Gold & Silver Inc. If you could maybe outline what you're trying to achieve through this investment, both, the investment itself and how you've structured it. Thank you.

Speaker #3: Thank you. And I know it is a small deal, but you've just done a deal with Arizona Gold and Silver. I'm just trying to see if you could maybe outline what you're trying to achieve through this investment—both the investment itself and how you've structured it.

Speaker #3: Thank you.

Speaker #1: Yeah, so look, that's a new opportunity that Glenn and the team identified. The area that we've picked up with Arizona Gold and Silver is highly prospective, but historically, it's only been considered for shallow drilling to do leaching operations.

Lawrie Conway: Yeah. So look, that is a new opportunity that Glen and the team identified. The area where we have picked up with Arizona Gold & Silver Inc. is highly prospective, but historically it has only been considered for shallow drilling to do leaching operations. This deposit, as we have seen some deeper drilling, is certainly showing some really good grades and grades over an extended area. That is the reason why we have sort of got interested and invested in this. It is allowing then Arizona Gold & Silver Inc. and their drilling program. We have farmed into it via just under 10% of the company, with some warrants to acquire more of the company. Then certainly as the program progresses, if it proves up, we have then got the option if we want to make a decision to take out that project or take out a further percentage of it.

Speaker #1: But this deposit, as we've seen with some deeper drilling, is certainly showing some really good grades, and our grades are over an extended area. So that's the reason why we've sort of got interested and invested in this.

Speaker #1: And it has allowed, then, Arizona Gold and their drilling program. So we've farmed into it via just under 10% of the company, with some warrants to acquire more of the company.

Lawrie Conway: We have farmed into it via just under 10% of the company, with some warrants to acquire more of the company. Then certainly as the program progresses, if it proves up, we have then got the option if we want to make a decision to take out that project or take out a further percentage of it.

Speaker #1: And then certainly, as the program progresses, if it proves up, we've then got the option, if we want, to make a decision to take out that project or take out a further percentage of it.

Speaker #3: Okay, thank you very much, Laurie and Tim.

Daniel Morgan: Okay. Thank you very much, Lawrie and team.

Speaker #2: Thank you. Your next question comes from James Redfern with RBC. Please go ahead.

Operator 2: Thank you. Your next question comes from James Redfern with RBC. Please go ahead.

Operator: Thank you. Your next question comes from James Redfern with RBC. Please go ahead.

James Redfern: Hi, Lawrie, Fran, and Peter. Hope you are well. Most of my questions have been asked already, but maybe a question on the AISC guidance, please, for FY27. You mentioned it is based on a copper price of US $5.72 a pound, with spots around $6.60, which would indicate that maybe the AISC is flat year on year. I am just wondering if you have any sort of sensitivities around AISC in relation to copper prices. Also, what are you seeing in terms of cost inflation in the industry outside of diesel costs? Thank you.

Speaker #3: Hi Laurie, Fran, and Peter, hope you’re well. Most of my questions have already been asked, but maybe, just maybe, a question on the asset guidance, please, for FY27.

Speaker #3: You mentioned it's based on a copper price of $5.72 US per pound, with spot around $6.60. Which would indicate that maybe the asset is flat year on year?

Speaker #3: Just wondering if you have any sensitivities around asset in relation to copper prices, and also what are you seeing in terms of cost inflation in the industry outside of diesel costs?

Speaker #3: Thank you.

Speaker #1: Yeah, sure. James, I'll hand to Fran in terms of the cost sensitivities outside of labor and diesel. But if you do look at slide 14 in our presentation deck that we've released today, it has the AISC sensitivities.

Lawrie Conway: Yeah, sure. James, I will hand to Fran in terms of the cost sensitivities outside of labor and diesel. If you do look at slide 14 in our presentation deck that we have released today is the AISC sensitivities. The copper price of around AUD 1,000 a ton, therefore about AUD 0.30 a pound is worth AUD 90 to AUD 95 per ounce. Every thousand tons of copper is worth about AUD 25 to AUD 30 an ounce. In short, if you saw the current copper price sustained for the whole year, you are potentially looking at about AUD 190 to AUD 210 an ounce benefit, which would sort of bring you back in towards what we achieved in FY26.

Speaker #1: And so the copper price of around $1,000 a tonne Aussie, therefore about 30 cents a pound, is worth $90 to $95 per ounce.

Speaker #1: And every 1,000 tons of copper is worth about 25 to 30 dollars an ounce. So in short, if yeah, if you saw the current price copper price sustained for the whole year, you're potentially looking at about 190 to 210 dollar an ounce benefit, which would sort of bring you back into towards what we achieved in FY26.

Lawrie Conway: I do think when you look at the disruption in the copper market at the moment, we are a little bit more optimistic on the copper price and what it could do for our cash flows and AISC. Fran, do you want to touch on the cost drivers?

Speaker #1: And hence why, and I do think, when you look at the disruption in the copper market at the moment, we're a little bit more optimistic on the copper price and what it could do for our cash flows and AISC.

Speaker #1: Fran, do you want to touch on the cost drivers?

Speaker #4: Yeah, sure. Thanks, James. So in terms of cost drivers, obviously our biggest cost driver being labor at 50%. We are seeing that increase around the four and a half percent.

Fran Summerhayes: Yeah, sure. Thanks, James. In terms of cost drivers, obviously our biggest cost driver being labor at 50%. We are seeing that increase around 4.5%. Particularly pressure in Western Australia in terms of retention and absenteeism. We are doing what we can there around employee engagement. Our next biggest cost driver would be maintenance parts, and we are seeing that there is between about 3% and 10%. We are focusing on our maintenance strategies and what we can do in regards to the cost pressures in maintenance. Our next cost base would be electricity at about 9%, but we are pretty much locked in there for long-term contracts. Big one, focusing on lower costs and lower emissions to supply electricity there.

Franes Summerhayes: Yeah, sure. Thanks, James. In terms of cost drivers, obviously our biggest cost driver being labor at 50%. We are seeing that increase around 4.5%. Particularly pressure in Western Australia in terms of retention and absenteeism. We are doing what we can there around employee engagement. Our next biggest cost driver would be maintenance parts, and we are seeing that there is between about 3% and 10%. We are focusing on our maintenance strategies and what we can do in regards to the cost pressures in maintenance. Our next cost base would be electricity at about 9%, but we are pretty much locked in there for long-term contracts. Big one, focusing on lower costs and lower emissions to supply electricity there.

Speaker #4: So, and particularly, pressure in Western Australia in terms of retention and absenteeism. So we're doing what we can there around employee engagement. Our next biggest cost driver would be maintenance parts.

Speaker #4: And we're seeing that there's a range between about 3% and 10%, but we're focusing on our maintenance strategies and what we can do in regards to the cost pressures in maintenance.

Speaker #4: Our next cost base would be electricity at about 9%, but we're pretty much locked in there with long-term contracts. And the big one: focusing on lower costs and lower emissions to supply electricity there.

Speaker #4: And as you mentioned, diesel—I'll just remind you that diesel is low for us in terms of only 2% to 3% of our cost base.

Fran Summerhayes: As you mentioned, diesel, but I will just remind you that diesel is low for us in terms of only 2% to 3% of our cost base, and that is mainly at Mungari and Cowal. Other than that, it fits within the envelope that Lawrie quoted to the 4% to 5%, and reflected in our guidance.

Franes Summerhayes: As you mentioned, diesel, but I will just remind you that diesel is low for us in terms of only 2% to 3% of our cost base, and that is mainly at Mungari and Cowal. Other than that, it fits within the envelope that Lawrie quoted to the 4% to 5%, and reflected in our guidance.

Speaker #4: And that's mainly among Gary and Cal. Yeah, but other than that, it fits within the envelope that Laurie quoted, the four to five percent.

Speaker #4: And reflected in our guidance.

Speaker #3: Okay. Fran and Laurie, thank you. That's great. Thank you.

James Redfern: Okay. Fran and Lawrie, thank you. That's great. Thank you.

Speaker #4: Thanks, James.

Fran Summerhayes: Thanks, James.

Franes Summerhayes: Thanks, James.

Speaker #2: Thank you. Your next question comes from David Radcliffe with Global Mining Research. Please go ahead.

Operator 2: Thank you. Your next question comes from David Radcliffe with Global Mining Research. Please go ahead.

Operator: Thank you. Your next question comes from David Radcliffe with Global Mining Research. Please go ahead.

Speaker #5: Hi, good morning Laurie and team. I thought I'd ask a similar question to everyone else about, really, I guess, the link between capital and the production outlook.

David Radcliffe: Hi. Good morning, Lawrie and team. I thought I'd ask a similar question to everyone else about really, I guess, the link between capital and the production outlook. Maybe using Red Lake as an example where we've got lower production going forward and we've got more capital. What is the way forward here for, say, Red Lake? If we take this as one that we don't give as much attention, and it does feel like a little bit that we're still sort of stuck in the past. Is there any sort of optionality being opened up here from the extra development spend this year? I know you've talked about the tailings upside, but that maybe just seems still incremental given that it's still a very large, very high-grade resource. Maybe if there isn't sort of a way forward, this one, is it still core to the portfolio?

Speaker #5: And maybe using Red Lake as an example, where we've got lower production going forward and we've got more capital. So, what is the way forward here for, say, Red Lake—if we take this as one that doesn't get as much attention, and it does feel like, a little bit, we're still sort of stuck in the past?

Speaker #5: Is there any sort of optionality being opened up here from the extra development spend this year? I know you've talked about the tailings upside, but maybe it just seems still incremental, given that it's still very large for a high-grade resource.

Speaker #5: And maybe, if there isn't a way forward with this one, is it still core to the portfolio?

Speaker #1: Yeah, look, Dave, I think there's a couple of things when you look at Red Lake. So firstly, when we talked about the sustaining capital and infrastructure, this is one asset that we have allocated more sustaining capital to, in terms of fleet and fixed plant.

Lawrie Conway: Yeah. Look, Dave, I think there's a couple of things when you look at Red Lake. Firstly, when we talked about the sustaining capital and infrastructure, this is one asset that we have allocated more sustaining capital to in terms of fleet and fixed plant. We needed to do that. We also have increased the sustaining mine development at the operation to make sure that we can keep the production levels at that 30,000 to 40,000 ounces per quarter over the longer term. So it is seeing that lift. But I think if you first look at their all-in sustaining year-on-year, the inflation is that biggest driver that would add about AUD 140 to AUD 150 an ounce, and then that additional bit of sustaining capital is what's getting you to the guidance range for this year.

Speaker #1: We needed to do that. And also, we have increased the sustaining mine development at the operation to make sure that we can keep the production levels at that 30,000 to 40,000 ounces per quarter over the longer term.

Speaker #1: So it is seeing that lift. But I think if you first look at their all-in sustaining year on year, the inflation is the biggest driver—that would add about $140 to $150 an ounce—and then that additional bit of sustaining capital is what's getting you to the guidance range for this year.

Speaker #1: What we are doing is making sure we can make it more efficient, and that the cost level is able to reduce over time. Does it sit within the portfolio?

Lawrie Conway: What we are doing is making sure we can make it more efficient and the cost level is able to reduce over time. Does it fit into the portfolio? From our perspective, with the assets we've got and the projects we've got in the other operations over the next few years, having Red Lake and Mungari that are sitting there producing in the order of 320,000 to 350,000 ounces and generating cash back to the business, I think that's a perfect fit for the other three that are going through some high return organic growth investment in the next three to four years.

Speaker #1: I mean, from our perspective, with the assets we've got and the projects we've got in the other operations over the next few years, sitting there producing in the order of 320,000 to 350,000 ounces and generating cash back to the business, I think that's a perfect fit for the other three that are going through some high-return organic growth investment in the next three to four years.

Speaker #5: Okay, thank you. That's clear. I'll pass it on.

David Radcliffe: Okay. Thank you. That's clear. I'll pass it on.

Speaker #2: Thank you. Your next question comes from Mitch Ryan with Jefferies. Please go ahead.

Operator 2: Thank you. Your next question comes from Mitch Ryan with Jefferies. Please go ahead.

Operator: Thank you. Your next question comes from Mitch Ryan with Jefferies. Please go ahead.

Mitch Ryan: Hi, Lawrie and Fran. Hope you are well. Just as Mt Rawdon processing comes to an end, I think the prior closure estimate was roughly AUD 100 million. With pumped hydro proposal being prioritized, what is the latest closure and rehab estimate? Is there any residual value for third-party interest in the mill or existing infrastructure there?

Speaker #5: Hi Laurie and Fran, hope you’re well. Just as Mount Rawden processing comes to an end, I think the prior closure estimate was roughly $100 million.

Speaker #5: We did prioritize the pumped hydro proposal. What is the latest closure and rehab estimate? And is there any residual value or third-party interest in the mill or existing infrastructure there?

Speaker #1: Yeah, Fran will talk you through the closure. I mean, from our perspective, at the metal prices, if they were to sustain or go higher, there’s certainly a potential for a cutback, but we think that would be better suited for someone else, possibly.

Lawrie Conway: Yeah. Fran will talk you through the closure. From our perspective, at the metal prices, if they were to sustain or go higher, there is certainly a potential for a cutback, but we think that would be better suited for someone else possibly. There is nothing much in the way of what we are considering for the operation. We will move into care and maintenance through this year, as the priority right now. Fran?

Speaker #1: So, there's nothing much in the way of what we're considering for the operation. We'll move into care and maintenance through this year, as that's the priority right now. Fran?

Speaker #4: Yeah. So, Mitch, in terms of the balance sheet, we always took a conservative approach with Mount Rawdon, as if the pump hydro would not go ahead.

Fran Summerhayes: Yeah. So Mitch, in terms of the balance sheet, we always took a conservative approach with Mt Rawdon, as if the pumped hydro would not go ahead. So the provision is sitting around AUD 75 million discounted on the balance sheet, and that is a spend profile out to about 2044, with the majority of the capital plan spend is in the first 10 years, and you see that start to kick up in about 2030.

Franes Summerhayes: Yeah. So Mitch, in terms of the balance sheet, we always took a conservative approach with Mt Rawdon, as if the pumped hydro would not go ahead. So the provision is sitting around AUD 75 million discounted on the balance sheet, and that is a spend profile out to about 2044, with the majority of the capital plan spend is in the first 10 years, and you see that start to kick up in about 2030.

Speaker #4: So the provision is sitting at around $75 million, discounted on the balance sheet. That's a spend profile out to about 2044, with the majority of the capital plan spend in the first 10 years.

Speaker #4: And you see that start to kick up in about 2030.

Mitch Ryan: A rounding error. Okay, thank you.

Speaker #5: So, a rounding error. Okay, thank you. And then that's definitely a—

Mitch Ryan: A rounding error. Okay, thank you.

Lawrie Conway: That's definitely a Jake rounding error, Mitch.

Speaker #1: Jake rounding error, Mitch.

Speaker #5: And just after the weather event, I don't know if Henry—can you pull it up? Do you have any expected insurance recoveries there, and what sort of process is it on receiving those, if you do?

Mitch Ryan: Just after the weather event at Ernest Henry, can you follow up that? Do you have any expected insurance recoveries there? What sort of the process is on receiving those if you do?

Speaker #1: Yeah, look, so we do have insurance at the operation, and as with 2023, we did receive insurance proceeds on that. In terms of this incident—

Lawrie Conway: Well, so we do have insurance at the operation, and as with the 2023, we did receive insurance proceeds on that. In terms of this incident, same thing does exist in terms of the insurance coverage. For some of the mobile fleet that was damaged or destroyed during the event, that's covered and we're already getting replacement equipment in. In terms of the cost of recovery and remediation, we're working through that now, and that will go to the insurers. Through FY27 is when we'd see the outcomes of that claim.

Speaker #1: The same thing does exist in terms of the insurance coverage. For some of the mobile fleet that was damaged or destroyed during the event, that's covered, and we're already getting replacement equipment in.

Speaker #1: In terms of the cost of recovery and remediation, we're working through that now, and that will then go to the insurers. So, through FY27 is when we'd see the outcomes of that claim.

Speaker #5: Okay, thank you very much for taking my questions today.

Mitch Ryan: Okay. Thank you very much for taking my questions today.

Speaker #2: Thank you. Your next question comes from Hugo Nicolacci with Goldman Sachs. Please go ahead.

Operator 2: Thank you. Your next question comes from Hugo Nicolaci with Goldman Sachs. Please go ahead.

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

Speaker #6: Oh, morning, Laurie. Fran Rockey. No, you’ve got the site visits coming up, so I’ll hold off recycling my question on the upside at Cal.

Hugo Nicolaci: Morning, Lawrie, Fran, Rocky. I know you have the site visits coming up, so I will hold off recycling my question on the upside at Cowal. Maybe looking at Red Lake and building on David's question, it does look like we are reset a little bit further to that 30,000 to 35,000 ounces a quarter from closer to 40. Are you able to just talk through a bit more detail, just some of those moving pieces and based on the potential study outcomes, can we see that creep back up or is the study more focused on maintaining that lower rate from here?

Speaker #6: But maybe looking at Red Lake and building on David's question, it just does look like we're sort of reset a little bit further to that sort of 30,000 to 35,000 ounces a quarter, from closer to 40,000.

Speaker #6: Are you able to talk through a bit more detail around some of those moving pieces, and how they might be impacted based on the potential study outcomes?

Speaker #6: Can we see that creep back up, or is the study more focused on maintaining that lower rate from here?

Speaker #1: Here we go. So, yeah, I mean, when you look at it this year and next year, it's more towards the 30 to 35 because of where we are.

Lawrie Conway: Hugo, when you look at it this year, next year, it is more towards the 30,000 to 35,000 because of where we are. As we said, in the H2 of this year, we accessed some new mine areas at Red Lake. When you look beyond the next couple of years, the work around the tails reprocessing and also some areas that we are putting some exploration dollars into about bringing that into, is aimed at getting it to the 35,000 to 40,000 ounce per quarter and above that, and that is really what the current life of mine plan is showing. I think when you look at Red Lake, three mining areas, it just does not have a lot of excess capacity or mine areas, as some of the other operations have.

Speaker #1: And as we said, in the second half of this year, we access some new mine areas at Red Lake. Then, when you look beyond the next couple of years, the work around the tailings reprocessing and also some areas that we're putting some exploration dollars into, about bringing that in, is aimed at getting it to the 35,000 to 40,000 ounce per quarter range and above that.

Speaker #1: And that's really what the current life-of-mine plan is showing. And I think when you look at Red Lake—three mining areas—it just doesn't have a lot of, I guess, excess capacity or mine areas as some of the other operations have.

Speaker #1: And so we've got to work a little bit harder to get that back up to the 35 to 40.

Lawrie Conway: We have to work a little bit harder to get that back up at the 35,000 to 40,000.

Speaker #6: All right, that's helpful. And maybe one for Fran, just on the balance sheet. Is a 10 to 15 percent long-term gearing ratio still what you're running with here, or do you now, potentially with the capex coming up, look to maintain a more conservative balance sheet near term?

Hugo Nicolaci: Great. That's helpful. Maybe one for Fran, just on the balance sheet. Is a 10% to 15% long-term gearing ratio still what you're running with there, or do you now, potentially with the CapEx coming up, look to maintain a more conservative balance sheet near term?

Speaker #4: Well, over the long term and with the cycles, yes, we're still carrying the 10% to 15% net debt. But I'll also note we are prepared to go outside of that for high-value options.

Fran Summerhayes: Well, over the long term and with the cycles, yes, we're still carrying the 10% to 15% net debt. I'll also note we are prepared to go outside of that for high-value options. Like we did, say, in 2023, we're at 33% net debt, and then obviously within the three years, we're able to get into a net cash position with the higher metal prices. But, yes, Hugo, 10% to 15%.

Franes Summerhayes: Well, over the long term and with the cycles, yes, we're still carrying the 10% to 15% net debt. I'll also note we are prepared to go outside of that for high-value options. Like we did, say, in 2023, we're at 33% net debt, and then obviously within the three years, we're able to get into a net cash position with the higher metal prices. But, yes, Hugo, 10% to 15%.

Speaker #4: So like we did say in '23, we're at 33 percent net debt. And then, obviously, within the three years, we were able to get into a net cash position with the higher metal prices.

Speaker #4: But yes, you go 10 to 15.

Speaker #6: All right, thanks. And then just one more. Obviously, lots of positives and things to look forward to, as you've reiterated today. Just maybe the other side of the ledger—is there anything that concerns you in the near-term outlook?

Hugo Nicolaci: Great. Thanks. Just one more. Obviously, lots of positives and things to look forward to as you've reiterated today. Just maybe the other side of the ledger, is there anything that concerns you in the near-term outlook? Is it underground performance or maybe things like labor availability? If so, do you see any regions presenting particular issues at the moment?

Speaker #6: Is it underground performance or maybe things like labor availability? And if so, do you see any regions presenting particular issues at the moment?

Speaker #1: No, I think if we look at it, Hugo, we're always alert to what can happen on the downside. But where we sort of sit across the business, we want to continue the consistency that we've had over the last couple of years.

Lawrie Conway: No, I think if we look at it, Hugo, we're always alert to what can happen on the downside. But where we sort of sit across the business, we want to continue the consistency that we had over the last couple of years and do that through 2027, because if the metal prices stay where they are today, we want to make sure that we get that cash and reward our shareholders. There's plenty of things that are keeping Matt, Nancy, Fran, and the site GMs awake, but it's all part of being in the mining industry.

Speaker #1: And do that through ’27 because if the metal prices stay where they are today, we want to make sure that we get that cash and can reward our shareholders.

Speaker #1: There are plenty of things that keep Matt, Nancy, Fran, and the site GMs awake, but it's all part of being in the mining industry.

Speaker #6: All right. Thanks, guys. Last one.

Hugo Nicolaci: Great. Thanks, guys. Bye for now.

Speaker #2: Thank you. Your next question comes from Adam Baker with Macquarie. Please go ahead.

Operator 2: Thank you. Your next question comes from Adam Baker with Macquarie. Please go ahead.

Operator: Thank you. Your next question comes from Adam Baker with Macquarie. Please go ahead.

Adam Baker: Morning, Lawrie and Fran. It is just one on the production guidance. You mentioned it is weighted to the H2 of the year. Just wondering if you can give us an approximate breakdown. Are we looking at a 48, 52 split, or what sort of quantum we are looking at there? Noting your opening remarks where you are indicating 160,000 to 166,000 ounces to gold. So looks like September quarter is going to be your seasonally weakest of the year.

Speaker #5: Morning, Laurie and Fran. Just one on the production guidance. You mentioned it's weighted to the second half of the year. Just wondering if you can give us an approximate breakdown.

Speaker #5: Are we looking at a 48/52 split, or what sort of quantum are we looking at there? And noting your opening remarks where you're indicating 160,000 to 166,000 ounces of gold.

Speaker #5: So, it looks like the September quarter is going to be your seasonally weakest of the year.

Speaker #1: That's correct, Adam. If we get the 160 to 166, then the other three quarters are going to be better than that. It goes to the two shutdown quarters, which are the September and March quarters.

Lawrie Conway: That is correct, Adam. If we get the 160,000 to 166,000, then the other three quarters have got to be better than that. It goes to the two shutdowns quarters, which are the September and March quarters. As we said, the H2 is as we get more access in the underground at Cowal. A split, I am not going to get caught into that because there will be ups and downs. Our outlook is over the year, we will deliver the 660,000 to 730,000 in the copper.

Speaker #1: And as we said, the second half is as we get access, more access, in the underground at Cowal. A split—I'm not sort of going to get caught into that because there will be ups and downs.

Speaker #1: Our outlook is, over the year, we'll deliver the 660 to 730 and the copper.

Speaker #5: That's good. And just second, on the balance sheet, Fran, in very, very good shape here. Got the undrawn $525 million revolver. No US private placement repayments until FY29.

Adam Baker: That is clear. Seconding the balance sheet, Fran, in very, very good shape here. Got the undrawn AUD 525 million revolver. No US private placement repayments until FY29. What further optimizations could we be doing from here, Fran, over the next 12 months?

Speaker #5: What further optimizations could we be doing from here, Fran, over the next 12 months?

Speaker #4: Yeah, I think over the next 12 months, it's really just delivering on our commitments that we're making in our FY27 guidance ranges there. Obviously, the $70 to $90 million callout from Laurie in regard to study and growth, to see if we can allocate our capital to high-returning investments.

Fran Summerhayes: Yeah, I think over the next 12 months, it is really just delivering on our commitments that we are making in our FY27 guidance ranges there. Obviously, the AUD 70 to AUD 90 million call-out from Lawrie in regards to study and growth to see if we can allocate our capital to higher returning investments. Other than that, as I said, if we bank the upside of higher gold and copper prices, we do not want to carry and do not see value holding large amounts on the balance sheet. So we will look to reallocate that out to shareholders. Thanks, Adam.

Franes Summerhayes: Yeah, I think over the next 12 months, it is really just delivering on our commitments that we are making in our FY27 guidance ranges there. Obviously, the AUD 70 to AUD 90 million call-out from Lawrie in regards to study and growth to see if we can allocate our capital to higher returning investments. Other than that, as I said, if we bank the upside of higher gold and copper prices, we do not want to carry and do not see value holding large amounts on the balance sheet. So we will look to reallocate that out to shareholders. Thanks, Adam.

Speaker #4: And then, other than that, as I said, if we bank the upside of higher gold and copper prices, we don't want to carry—and don't see value in holding—large amounts on the balance sheet.

Speaker #4: So, we'll look to reallocate that out to shareholders. Thanks, Adam.

Speaker #5: Thanks, guys.

Adam Baker: Thanks.

Operator 2: Thank you. Your next question comes from David Coates with Bell Potter. Please go ahead.

Operator: Thank you. Your next question comes from David Coates with Bell Potter. Please go ahead.

Speaker #2: Thank you. Your next question comes from David Coates with Bell Potter. Please go ahead.

Speaker #5: Morning, Laurie, Fran, and Rocky. Thanks for the congratulations on the result, and thanks for your time this morning. This has been covered a little bit, but just on slide four, which really lays out the kind of capital allocation as it's panned out for FY26.

David Coates: Morning, Lawrie, Fran, and Rocky. Thanks for, congratulations on the result, and thanks for your time this morning. This has been covered a little bit, but just that slide 4, which sort of lays out the kind of capital allocation as it is panned out for FY26. It sounds like we should sort of see that as a bit of a template going forward with sort of shareholder returns as like a top priority, and then the balance kind of flexing between organic growth and accretive deals. Does that kind of fit with how you guys think about the capital allocation outlook?

Speaker #5: Kind of sounds like we should sort of see that as a bit of a template going forward with sort of shareholder returns as like a top priority and then the balance kind of flexing between organic growth and accretive deals.

Speaker #5: Does that kind of fit with how you guys think about the capital allocation outlook?

Lawrie Conway: No, Dave, I think as I said earlier on the call, what we have got to be able to demonstrate, and I think we have demonstrated, is that we can work in all those three areas to get returns for our shareholders, and it does depend on what is happening at the time. I look at Northparkes as the example. In 2023, we could not control the timing of when CMOC decided they wanted to exit. If something comes up in the next 12 months and it is something that Kirron and the team says to the board and I that this is something we should bring in the portfolio, we will go into that area. If there is not, then we will continue to invest in the organic growth. But I go back to the earlier thing, we are investing at that AUD 1.1 billion right now. Yes, we are allocating a couple of hundred million dollars more.

Speaker #1: No, Dave, I think, as I said earlier on the call, what we've got to be able to demonstrate—and I think we have demonstrated—is that we can work in all those three areas to get returns for our shareholders, and it does depend on what's happening at the time.

Speaker #1: And I look at North Parks as the example in 2023. We couldn't control the timing of when CMOC decided they wanted to exit. If something comes up in the next 12 months, and it's something that Kieran and the team say to the board and me that this is something we should bring into the portfolio, we'll go into that area.

Speaker #1: If there isn't, then we'll continue to invest in the organic growth. But I go back to the earlier thing—we're investing at that $1.1 billion rate now.

Speaker #1: Yes, we're allocating a couple of hundred million dollars more. If metal prices stay where they are from last year, shareholders are still going to be getting somewhere around $800 to $850 million back.

Lawrie Conway: Yes, we are allocating a couple of hundred million dollars more. If metal prices stay where they were for last year, shareholders are still going to be getting somewhere around the AUD 800 million to AUD 850 million back. That is what we are trying to say is that we work in all three areas. It depends on what is happening at the time, but we do not just focus on one of them. And our balance sheet, we are very comfortable and confident that it will meet the requirements of all three.

Lawrie Conway: If metal prices stay where they were for last year, shareholders are still going to be getting somewhere around the AUD 800 million to AUD 850 million back. That is what we are trying to say is that we work in all three areas. It depends on what is happening at the time, but we do not just focus on one of them. And our balance sheet, we are very comfortable and confident that it will meet the requirements of all three.

Speaker #1: That's what we're trying to say: we work in all three areas. It depends on what's happening at the time, but we don't just focus on one of them.

Speaker #1: And with our balance sheet, we're very comfortable and confident that it will meet the requirements of all three.

Speaker #5: Excellent. No, it's in a very flexible position at the moment—no doubt about that. And then, secondly, sort of a more micro kind of question: red light.

David Coates: No, it sits in a very flexible position at the moment, no doubt about that. Then secondly, my sort of more micro kind of question. Red Lake, really strong improvement year-on-year. Obviously, gold prices help that, but what are the operational changes? What is sort of enabled that improvement?

Speaker #5: Really strong improvement year on year. Obviously, gold prices help that, but what are the operational changes? What's enabled that improvement?

Speaker #1: I look, there's a number. We did have a KPI. I'm not getting many questions on Red Lake, but I think this year's guidance is going to draw some attention.

Lawrie Conway: Well, there is a number. We did have a KPI. I am not getting many questions on Red Lake, but I think this year's guidance is going to draw some attention. But essentially, the key things that change there, Dave, is with a number of the areas that we are mining, we had to change the mix to get a good balance between some selective mining and bulk mining. By having done that, by having changed out some of the fleet there and the workforce buy-in to that mine plan has enabled us to really get that improved reliability. In terms of then the cost structure, it was around standardizing rosters. It was around being able to move people and equipment between the three mines. It was certainly around when the productivity lifted, get the cost base down. Everyone started to participate in the quarterly performance bonus.

Speaker #1: But essentially, the key things that change there, Dave, is with a number of the areas that we're mining, we had to change the mix to get a good balance between some selective mining and bulk mining.

Speaker #1: And by having done that, by having changed out some of the fleet there, and with the workforce buy-in to that mine plan, it has enabled us to really get that improved reliability.

Speaker #1: In terms of the cost structure, it was around standardizing rosters. It was about being able to move people and equipment between the three mines.

Speaker #1: It was certainly around lifting when the productivity lifted, getting the cost base down. Everyone started to participate in the quarterly performance bonus. Once they got that, they never wanted to go back to having no bonuses.

Lawrie Conway: Once they got that, they never wanted to go back to no bonuses. So that helped in terms of cost discipline and productivity. It has been a whole mix of things there at Red Lake. The only thing I would say is that compared to all the other assets, it is one that you just cannot stop. I explained it to Rocky, it is like riding up a hill. The minute you stop pedaling, you will be back down the bottom. Probably not a good analogy for Rocky, who got hit by a car on a bike last week, but it is the anal-

Speaker #1: So, that helped in terms of cost discipline and productivity. It's been a whole mix of things there at Red Lake. The only thing I'd say is that, compared to all the other assets, it's one that you just can't stop.

Speaker #1: I explained it to Rocky: it's like riding up a hill—the minute you stop pedaling, you'll be back down at the bottom. Probably not a good analogy for Rocky.

Speaker #1: You got hit by a car on a bike last week, but it's the...

Speaker #5: Awesome. Thanks. Excellent. Thanks, Laurie. Cheers.

David Coates: Awesome. Thanks very much. Cheers.

Speaker #1: Thanks.

Lawrie Conway: Thanks.

Speaker #2: Thank you. Your next question comes from Zango with JPM. Please go ahead.

Operator 2: Thank you. Your next question comes from Zane Gray with JPMorgan. Please go ahead.

Operator: Thank you. Your next question comes from Zane Gray with JPMorgan. Please go ahead.

Speaker #6: Oh, thanks, Sam. Just following up on the Olin sustaining cost. I understand that diesel prices are only 3% of the cost, but nevertheless, I’m keen to understand what diesel price you’ve assumed for FY27.

Zane Gray: Oh, thanks, team. Just following up on the all-in sustaining cost. Understand that diesel price are only 3% of the cost, but nevertheless, keen to understand what diesel price you have assumed for FY27. Just on the 3% to 10% inflation on maintenance parts called out by Fran earlier, are you seeing similar cost pressures across your growth CapEx spend?

Zane Guo: Oh, thanks, team. Just following up on the all-in sustaining cost. Understand that diesel price are only 3% of the cost, but nevertheless, keen to understand what diesel price you have assumed for FY27. Just on the 3% to 10% inflation on maintenance parts called out by Fran earlier, are you seeing similar cost pressures across your growth CapEx spend?

Speaker #6: And just on the 3% to 10% inflation on maintenance parts, called out by Fran earlier, are you seeing similar cost pressures across your growth capex spend?

Speaker #7: So, on the growth capex, no.

Lawrie Conway: So on the growth CapEx, no. All of our projects are on the budget. We knew when we approved the projects there would be some cost escalation, and we have allowed for that, and we are not outside that range. In terms of diesel, look, it is somewhere in between what it spiked to when the situation first started and then where it sort of got back down to when tensions eased for a period. But as I said, and you have mentioned it is not a material cost for us. When we look at it, the main users are at Mungari and Cowal in the open pit.

Speaker #1: I mean, all of our projects are on budget. We knew when we approved the projects there'd be some cost escalation, and we've allowed for that, and we're not outside that range.

Speaker #1: In terms of diesel, look, it's somewhere in between what it was, what it spiked to when the situation first started, and then where it sort of got back down to when tensions eased for a period.

Speaker #1: But as I said—and you mentioned it—it's not a material cost for us. When we look at it, the main users are at Mungari and Cowal in the open pit.

Speaker #6: Yeah, understood. And just to follow up on Red Lake, what's the latest thinking around reprocessing the tails, and I guess what are the hurdles you need to see to sanction the project, and potential timelines?

Zane Gray: Yeah, understood. Just to follow up on Red Lake, what is the latest thinking around reprocessing the tails? I guess, what are the hurdles you need to see to sanction the project and potential timelines?

Zane Guo: Yeah, understood. Just to follow up on Red Lake, what is the latest thinking around reprocessing the tails? I guess, what are the hurdles you need to see to sanction the project and potential timelines?

Speaker #1: Yeah, so look, over the next 12 to 18 months, we'll finish that work. We've got drilling going on, and we've got the study happening.

Lawrie Conway: Yeah. So look, over the next 12 to 18 months, we will finish that work. We have got drilling going on. We have got the study happening, and then what we have got to look at is which, we have got three plants there, which is going to be the best way to put that through. Then you have got the permitting. So you are talking at least 2.5, 3 years before you see anything coming through on that one.

Speaker #1: And then what we've got to look at is, we've got three plants there—so which is going to be the best way to put that through?

Speaker #1: And then you've got the permitting. So, you are talking at least two and a half to three years before you see anything coming through on that one.

Speaker #6: Understood. That's helpful. Thanks.

Zane Gray: Understood. That is helpful. Thanks.

Zane Guo: Understood. That is helpful. Thanks.

Speaker #2: Thank you. We have a follow-up question from Kate McCutchen with Bank of America. Please go ahead.

Operator 2: Thank you. We have a follow-up question from Kate McCutcheon with Bank of America. Please go ahead.

Operator: Thank you. We have a follow-up question from Kate McCutcheon with Bank of America. Please go ahead.

Speaker #8: Thank you. I just wanted to say, if Rocky was okay after that. But no, I do have a question on Cal. So you've noted that backend uplift in production with the second decline there.

Kate McCutcheon: Thank you. I just wanted to see if Rocky was okay after that. I do have a question on Cowal. You have noted that back end uplift in production with the second decline there. You did 2.4 million tonnes last year, annualized the last quarter at 2.77. What does your mine plan at Cowal have you annualizing into H? Or how do we think about a step up in those underground tonnes with the second decline? Or does something offset with face positions as a decline that you have got?

Speaker #8: You did 2.4 million tons last year. Annualized, the last quarter was at 2.77 million. What does your mine plan at Cowal look like? Are you annualizing into H, or how should we think about a step up in those underground tons with a second decline, or does something offset with face positions at the decline that you've got?

Speaker #1: Yeah, so Kate, good callout on Rocky. In terms of the Cal underground, what you'll see in the second half is that we then have that capacity to go above the 2.4 million-ton annualized rate.

Lawrie Conway: Yeah. Kate, good call out on Rocky. In terms of the Cowal underground, what you will see in the H2 is that we then have that capacity to go above the 2.4 million tonne annualized rate. I think when you look at FY26, we did have some easier areas to access, and therefore we were able to get some productivity. We were going through a change in mining contractor there. So we did have two contractors working on the site in the June quarter as that transition happened. So that gave us a lift up there as well. As we get into the H2 of the year, you get that capacity to go above 2.4, targeting somewhere between 2.4 and 2.6. Then looking through the course of this year, what could we go beyond FY27?

Speaker #1: I think when you look at FY26, we did have some easier areas to access and, therefore, we were able to get some productivity. And we were going through a change in mining contractor there.

Speaker #1: So, we did have two contractors working on the site in the June quarter as that transition happened, so that gave us a lift up there as well.

Speaker #1: So, as we get into the second half of the year, you get that capacity to go above 2.4, targeting somewhere between 2.4 and 2.6.

Speaker #1: And then looking through the course of this year, what could we do beyond FY27? And I think when we get to September, with the investor update and the site visit and looking at Glenn's plans on the exploration, that's when you'll get, I think, a better insight as to what we're thinking about in terms of the underground there.

Lawrie Conway: Now, I think when we get to September with the investor update and the site visit and looking at Glen's plans on the exploration, that is when you will get a better insight as to what we are thinking about in terms of the underground there.

Speaker #8: Okay. Thank you.

Kate McCutcheon: Okay. Thank you.

Speaker #2: Thank you. There are no further questions at this time. I'll now hand back to Mr. Conway for any closing remarks.

Operator 2: Thank you. There are no further questions at this time. I will now hand back to Mr. Conway for any closing remarks.

Operator: Thank you. There are no further questions at this time. I will now hand back to Mr. Conway for any closing remarks.

Speaker #1: Thank you, Darcy. Thank you, everyone, for your time today. I really do appreciate your interest in asking Fran what she's doing with all the cash, and why she's spending so much capital on the high-returning projects that we've got in train.

Lawrie Conway: Thank you, Darcy. Thank you, everyone, for your time today. I really do appreciate your interest in asking Fran what she is doing with all the cash and why she is spending so much capital on high-returning projects that we have in train. Do look forward to catching up with you who are attending our investor briefing and site visits to and Northparkes next month. Thank you again for your time.

Speaker #1: Do look forward to catching up with those of you who are attending our investor briefing and site visits to and North Parkes next month. Thank you again for your time.

Operator 2: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.

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

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Q4 2026 Evolution Mining Ltd Earnings Call

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