Full Year 2026 Pilbara Minerals Ltd Earnings Call

August 23, 2026

Operator: Good day, and thank you for standing by. Welcome to the PLS 2026 Results Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1 1 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Dale Henderson, Managing Director and CEO. Sir, please go ahead.

Speaker #1: Good day, and thank you for standing by. Welcome to the PLS FY26 results conference call. At this time, all participants are in a listen-only mode.

Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you will need to press star 1-1 on your telephone.

Speaker #1: You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded.

Speaker #1: I would now like to hand the conference over to your speaker today, Dale Henderson, Managing Director and CEO. Sir, please go ahead.

Speaker #2: Thank you, Michelle. Good morning and good evening. And thank you all for joining us today. I'll begin by acknowledging the traditional owners of the lands on which PLS operates: the Whadjuk people of the Noongar Nation in Perth, and the Nyamal and Kariyarra peoples in the Pilbara.

Dale Henderson: Thank you, Michelle. Good morning and good evening, and thank you all for joining us today. I will begin by acknowledging the traditional owners on the lands of which PLS operates, the Whadjuk people of the Noongar nation in Perth, and the Nyamal and Kariyarra peoples in the Pilbara. We pay our respects to elders, past and present. I am joined today by Alex Wilcox, our Chief Financial Officer, and Sandra McInnes, our Chief People and Sustainability Officer. FY26 was a record year for PLS and a strong demonstration of our through the cycle strategy in action. Today, we will take you through the operational, financial, and sustainability performance for the year, our strategic progress, and the outlook for PLS before we open the line for questions. Turning now to slide 2.

Speaker #2: We pay our respects to Elders past and present. I'm joined today by Alex Wilcox, our Chief Financial Officer, and Sandra McInnes, our Chief People and Sustainability Officer.

Speaker #2: FY26 was a record year for PLS and a strong demonstration of our through-the-cycle strategy and action. Today, we will take you through the operational, financial, and sustainability performance for the year.

Speaker #2: Our strategic progress and the outlook for PLS before we open the line for questions. Returning now to slide 2. At Pilgangoora, we delivered record production and sales, both up 17% on the prior year, and we achieved our FY26 guidance, and we lifted lithium to a new record of 36.5%.

Dale Henderson: At Pilgangoora, we delivered record production and sales, both up 17% on the prior year, and we achieved our FY26 guidance, and we lifted lithium to a new record of 36.5%. As market conditions strengthened, we were also able to respond quickly, approving and preparing for the restart of the Ngungaju Facility and accelerating P2000, including the approval of approximately AUD 135 million of pre-FID investment for P2000. We continued to progress Colina as our principal geographic diversification opportunity whilst maintaining a disciplined approach to chemicals, commencing commissioning of our mid-stream demonstration plant and operating our POSCO Pilbara Lithium Solution JV in batch mode to preserve capital. That strong operating performance, together with improved market conditions, translated into a significant improvement in our financial results. Turning now to slide 3. Revenue increased by 152% to AUD 1.9 billion, driven by stronger realized pricing and record sales volumes.

Speaker #2: As market conditions strengthened, we were also able to respond quickly, approving and preparing for the restart of the Ngungaju facility, and accelerating P2000, including the approval of approximately $175 million of pre-FY26 investment for P2000.

Speaker #2: We continued to progress Kalina as our principal geographic diversification opportunity, while maintaining a disciplined approach to chemicals. We commenced commissioning of our midstream demonstration plant and operated our PPLS JV in batch mode to preserve capital.

Speaker #2: That strong operating performance, together with improved market conditions, translated into a significant improvement in our financial results. Turning now to slide 3, revenue increased by 152% to $1.9 billion, driven by stronger realized pricing and record sales volumes.

Speaker #2: Underlying EBITDA increased to $1.1 billion at a 59% margin, reflecting the operating leverage in the business and delivering net profit after tax of $526 million.

Dale Henderson: Underlying EBITDA increased to AUD 1.1 billion at a 59% margin, reflecting the operating leverage in the business and delivering net profit after tax of AUD 526 million. We finished the year with AUD 2.3 billion in cash, providing the capacity to invest selectively in growth whilst maintaining our balance sheet strength. In accordance with our capital management framework, as a board, we have determined a fully frank final dividend of AUD 0.05 per share. Turning now to slide 4. Alongside our operational and financial performance, we continued to make progress across our sustainability priorities. Safety remains our most important priority. Our group TRIR improved by 11% from the prior year to 2.77, but we remain focused on continuing to make improvements in this area. We also reduced absolute Scope 1 and 2 emissions by 5%, and we recorded zero major environmental, water or waste incidents.

Speaker #2: We finished the year with $2.3 billion in cash, providing the capacity to invest selectively in growth whilst maintaining our balance sheet strength. In accordance with our capital management framework, as a Board, we have determined a fully franked final dividend of 5 cents per share.

Speaker #2: Turning now to Slide 4. Alongside our operational and financial performance, we continue to make progress across our sustainability priorities. Safety remains our most important priority. Our group TRIFR improved by 11% from the prior year to 2.77, but we remain focused on continuing to make improvements in this area.

Speaker #2: We also reduced absolute Scope 1 and 2 emissions by 5%, and we recorded zero major environmental water or waste incidents. Sandra will cover our sustainability performance in more detail later in the presentation.

Dale Henderson: Sandra will cover our sustainability performance in more detail later in the presentation. Turning now to slide 5, which shows our through the cycle strategy and how this played out during FY26. During the weaker market, we positioned the business defensively, protecting the balance sheet, reducing costs, and preserving operating flexibility. As market conditions improved, we were able to respond quickly, approving the restart of the Ngungaju Facility and moving back towards the P1000 operating model and accelerating our growth options. Our strategy was not dependent on predicting the market turn. It was about ensuring the business was positioned to act when the opportunity emerged. As I have said, historically, we have been using the cycle as leverage, not a limitation. As slide 6 shows, that operational flexibility has translated very quickly into cash generation. Turning to slide 6 now.

Speaker #2: Turning now to slide 5, which shows our through-the-cycle strategy and how this played out during FY26. During the weaker market, we positioned the business defensively, protecting the balance sheet, reducing costs, and preserving operating flexibility.

Speaker #2: As market conditions improved, we were able to respond quickly—approving the restart of the Ngungaju facility, moving back towards the P1000 operating model, and accelerating our growth options.

Speaker #2: Our strategy was not dependent on predicting the market turn; it was about ensuring the business was positioned to act when the opportunity emerged. As I've said historically, we've been using the cycle as leverage, not a limitation.

Speaker #2: And as slide 6 shows, that operational flexibility has translated very quickly into cash generation. Turning to slide 6 now. As pricing strengthened through FY26, the operating leverage in our low-cost platform became increasingly evident. Quarterly cash margin from operations increased from $8 million in the September quarter through to $579 million in the June quarter, and with 100% ownership of Pilgangoora, our shareholders received the full benefit of the scale, the cost position, and the operating leverage we had built.

Dale Henderson: As pricing strengthened through FY26, the operating leverage in our low-cost platform became increasingly evident. Quarterly cash margin from operations increased from AUD 8 million in the September quarter through to AUD 579 million in the June quarter. With 100% ownership of Pilgangoora, our shareholders received the full benefit of the scale, the cost position, and the operating leverage we had built. The strong cash generation, together with our balance sheet strength, gives us capacity to invest selectively whilst maintaining financial strength. Now, one more call-out from the slide. I draw your attention to the horizontal line that is USD 2,465 per tonne. This is Benchmark Mineral Intelligence's long-run expectations for pricing for the industry. That return that we see in the June quarter, AUD 579 million, that was at a value less than the USD 2,465. So, that June quarter really does demonstrate the cash-generating potential of the platform.

Speaker #2: The strong cash generation, together with our balance sheet strength, gives us capacity to invest selectively whilst maintaining financial strength. Now, one more call-out from the slide.

Speaker #2: I'll draw your attention to the horizontal line—that is, $2,465 per ton—and this is Benchmark Minerals' long-run expectations for pricing for the industry.

Speaker #2: Now, that return that we see in the June quarter—$579 million—that was at a value less than the $2,465. So that June quarter really does demonstrate the cash-generating potential of the platform, and it's exciting to think about the future.

Dale Henderson: It is exciting to think about the future, depending what price you want to pick. It is an incredible platform. We have got the scale, we have got the low-cost position, and here are the results, as you can see in these results we have announced today. Now with that, I would now like to hand over to Alex to take us through the financials.

Speaker #2: Depending on what price you want to pick, it's an incredible platform. We've got the scale, we've got the low-cost position, and here are the results. As you can see in these results we've announced today.

Speaker #2: Now, with that, I'd like to hand over to Alex to take us through the financials.

Speaker #3: Thank you, Dale. Good morning and good evening, everyone. Turning now to slide 8. FY26 delivered strong financial performance: underlying EBITDA of $1.1 billion, NPAT of $526 million, and a closing cash balance of $2.3 billion.

Alex Wilcox: Thank you, Dale. Good morning and good evening, everyone. Turning now to slide 8. FY26 delivered strong financial performance. Underlying EBITDA of AUD 1.1 billion, NPAT of AUD 526 million, and a closing cash balance of AUD 2.3 billion. These results reflect disciplined execution, capitalizing on market recovery. Revenue of AUD 1.9 billion was up 152%, driven by 121% increase in realized price to USD 1,488 a tonne, combined with 17% volume growth, partially offset by some FX headwinds. Unit operating cost on an FOB basis improved 9% to AUD 569 per tonne, reflecting volume leverage, ongoing operational improvements, and our Cost Smart, Future Ready program in action. Underlying EBITDA of AUD 1.1 billion reflects that revenue growth and operational efficiency. Net profit after tax of AUD 526 million captures our strong earnings, partially offset by high depreciation from an expanded asset base and tax expense as we return to profitability.

Alex Willcocks: Thank you, Dale. Good morning and good evening, everyone. Turning now to slide 8. FY26 delivered strong financial performance. Underlying EBITDA of AUD 1.1 billion, NPAT of AUD 526 million, and a closing cash balance of AUD 2.3 billion. These results reflect disciplined execution, capitalizing on market recovery. Revenue of AUD 1.9 billion was up 152%, driven by 121% increase in realized price to USD 1,488 a tonne, combined with 17% volume growth, partially offset by some FX headwinds. Unit operating cost on an FOB basis improved 9% to AUD 569 per tonne, reflecting volume leverage, ongoing operational improvements, and our Cost Smart, Future Ready program in action. Underlying EBITDA of AUD 1.1 billion reflects that revenue growth and operational efficiency.

Speaker #3: These results reflect disciplined execution, capitalizing on market recovery. Revenue of $1.9 billion was up 152%, driven by a 121% increase in realized price to US$1,488 a ton, combined with 17% volume growth, partially offset by some FX headwinds.

Speaker #3: Unit operating cost on an FOB basis improved 9% to $569 per ton, reflecting volume leverage, ongoing operational improvements, and our CostMark Future-Ready program in action.

Speaker #3: Underlying EBITDA of $1.1 billion reflects that revenue growth and operational efficiency. Net profit after tax of $526 million captures our strong earnings, partially offset by higher depreciation from an expanded asset base and tax expense as we return to profitability.

Alex Willcocks: Net profit after tax of AUD 526 million captures our strong earnings, partially offset by high depreciation from an expanded asset base and tax expense as we return to profitability. Capital expenditure of AUD 328 million was in line with guidance and comprised mine development CapEx of AUD 146 million and infrastructure projects and sustaining CapEx of AUD 182 million. These strong operational and financial results translated directly into substantial cash generation, as shown in our cash flow bridge.

Speaker #3: Capital expenditure of $328 million was in line with guidance and comprised mine development capex of $146 million, and infrastructure projects and sustaining capex of $182 million.

Alex Wilcox: Capital expenditure of AUD 328 million was in line with guidance and comprised mine development CapEx of AUD 146 million and infrastructure projects and sustaining CapEx of AUD 182 million. These strong operational and financial results translated directly into substantial cash generation, as shown in our cash flow bridge. Turning to slide 9, cash margin from operations of AUD 1.36 billion underpins the 135% increase in cash to AUD 2.2 billion, supported by volume growth, cost discipline, and strong pricing. The year-end cash included the $100 million prepayment associated with Canmax's offtake agreement announced earlier in the year. We received a prior period tax refund of AUD 74 million, which will normalize now that we have returned to profitability. Net financing cash flows of AUD 353 million reflect net proceeds from the $600 million inaugural US bond, partly offset by a AUD 442 million RCF repayment, as well as lease costs and interest expenses.

Speaker #3: These strong operational and financial results translated directly into substantial cash generation, as shown in our cash flow bridge. Now, turning to slide 9: cash margin from operations of $1.36 billion underpinned the 135% increase in cash to $2.2 billion, supported by volume growth, cost discipline, and strong pricing.

Alex Willcocks: Turning to slide 9, cash margin from operations of AUD 1.36 billion underpins the 135% increase in cash to AUD 2.2 billion, supported by volume growth, cost discipline, and strong pricing. The year-end cash included the $100 million prepayment associated with Canmax's offtake agreement announced earlier in the year. We received a prior period tax refund of AUD 74 million, which will normalize now that we have returned to profitability. Net financing cash flows of AUD 353 million reflect net proceeds from the $600 million inaugural US bond, partly offset by a AUD 442 million RCF repayment, as well as lease costs and interest expenses.

Speaker #3: The year-end cash included the US$100 million prepayment associated with the CAMMAX off-take agreement announced earlier in the year. We received a prior-period tax refund of $74 million, which will normalize now that we have returned to profitability.

Speaker #3: Net financing cash flows of $353 million reflect net proceeds from the US$600 million inaugural US bond, partly offset by a $442 million RCF repayment, as well as lease costs and interest expenses.

Speaker #3: The combination of these factors resulted in a further strengthening of our cash position to $2.29 billion, and we finished the year with $2.79 billion of liquidity.

Alex Wilcox: The combination of these factors resulted in a further strengthening of our cash position to AUD 2.29 billion, and we finished the year with AUD 2.79 billion of liquidity. Turning to the balance sheet on slide 10, we have maintained a strong balance sheet while deploying capital for growth and retained capacity to fund future investments. Property, plant, and equipment increased 6% to AUD 2.86 billion, with AUD 445 million in mine properties and development additions, partly offset by AUD 275 million in depreciation. Payables increased to AUD 436 million, reflecting in part the contract liability for the remaining unutilized portion of the Canmax prepayment. Borrowings increased to AUD 853 million, following the $600 million bond issuance, net of the RCF repayment, with the remaining AUD 500 million RCF facility undrawn. Lease liabilities increased 24% to AUD 281 million, reflecting approximately AUD 90 million invested in heavy mobile equipment.

Alex Willcocks: The combination of these factors resulted in a further strengthening of our cash position to AUD 2.29 billion, and we finished the year with AUD 2.79 billion of liquidity. Turning to the balance sheet on slide 10, we have maintained a strong balance sheet while deploying capital for growth and retained capacity to fund future investments. Property, plant, and equipment increased 6% to AUD 2.86 billion, with AUD 445 million in mine properties and development additions, partly offset by AUD 275 million in depreciation. Payables increased to AUD 436 million, reflecting in part the contract liability for the remaining unutilized portion of the Canmax prepayment. Borrowings increased to AUD 853 million, following the $600 million bond issuance, net of the RCF repayment, with the remaining AUD 500 million RCF facility undrawn. Lease liabilities increased 24% to AUD 281 million, reflecting approximately AUD 90 million invested in heavy mobile equipment.

Speaker #3: Turning to the balance sheet on slide 10, we have maintained a strong balance sheet while deploying capital for growth and retained capacity to fund future investments.

Speaker #3: Property, plant and equipment increased 6% to $2.86 billion, with $445 million in mine properties and development additions, partly offset by $275 million in depreciation.

Speaker #3: Payables increased to $436 million, reflecting, in part, the contract liability for the remaining unutilized portion of the CAMMAX prepayment. Borrowings increased to $853 million, following the US$600 million bond issuance, net of the RCF repayments, with the remaining $500 million RCF facility undrawn.

Speaker #3: Lease liabilities increased 24% to $281 million, reflecting approximately $90 million invested in heavy mobile equipment. We expect to complete the last phase of the owner-operator transition as we progress through FY27.

Alex Wilcox: We expect to complete the last phase of the owner-operator transition as we progress through FY27. The strength of our balance sheet positions us well as we consider future investments supporting long-term value creation for our shareholders. Turning now to slide 11, on the back of this strong financial position, the board has determined a fully franked final dividend of AUD 0.05 per share, representing a distribution of approximately AUD 160 million to shareholders. This implies a payout ratio of 22% of FY26 adjusted free cash flow, which is within our payout ratio range of 20% to 30%. I will now hand over to Sandra for an overview of sustainability performance.

Alex Willcocks: We expect to complete the last phase of the owner-operator transition as we progress through FY27. The strength of our balance sheet positions us well as we consider future investments supporting long-term value creation for our shareholders. Turning now to slide 11, on the back of this strong financial position, the board has determined a fully franked final dividend of AUD 0.05 per share, representing a distribution of approximately AUD 160 million to shareholders. This implies a payout ratio of 22% of FY26 adjusted free cash flow, which is within our payout ratio range of 20% to 30%. I will now hand over to Sandra for an overview of sustainability performance.

Speaker #3: The strength of our balance sheet positions us well as we consider future investments supporting long-term value creation for our shareholders. Turning now to Slide 11.

Speaker #3: On the back of this strong financial position, the Board has determined a fully franked final dividend of $0.05 per share, representing a distribution of approximately $160 million to shareholders.

Speaker #3: This implies a payout ratio of 22% of FY26 adjusted free cash flow, which is within our payout ratio range of 20% to 30%. I'll now hand over to Sandra for an overview of sustainability performance.

Speaker #4: Thanks, Alex. Good morning and good evening, everyone. Turning now to slide 13. Our three sustainability-focused areas are valuing our people and communities, sustainable operations, and responsible and ethical actions. These guide how we manage our impacts, engage with our people, communities, and partners, and make disciplined decisions that support responsible, long-term value creation.

Sandra McInnes: Thanks, Alex. Good morning and good evening, everyone. Turning now to slide 13, our three sustainability focus areas are valuing our people and communities, sustainable operations, and responsible and ethical actions guide how we manage our impacts, engage with our people, communities, and partners, and make disciplined decisions that support responsible long-term value creation. Turning now to slide 14, safety remains our first priority, and we are pleased to report our total recordable injury frequency rate improved by 11% from last year to 2.77. We also continue to invest in our people and culture. Our latest culture and engagement survey achieved a participation rate of 86% and an overall engagement score of 75%, which are above the Australian benchmark. These results show our workforce feel valued and connected to our vision. Female employment increased to 21.9%, demonstrating our continued progress towards our diversity and inclusion objectives.

Speaker #4: Turning now to slide 14. Safety remains our first priority, and we're pleased to report our total recordable injury frequency rate improved by 11% from last year to 2.77.

Speaker #4: We also continue to invest in our people and culture. Our latest culture and engagement survey achieved a participation rate of 86% and an overall engagement score of 75%, which are above the Australian benchmark.

Speaker #4: These results show our workforce feels valued and connected to our vision. Female employment increased to 21.9%, demonstrating our continued progress towards our diversity and inclusion objectives.

Speaker #4: Turning now to slide 15. Through sustainable operations, we aim to reduce our impacts while identifying better ways to make a positive contribution and create value.

Sandra McInnes: Turning now to slide 15. Through sustainable operations, we aim to reduce our impact while identifying better ways to make a positive contribution and create value. Across our Australian operations, we achieved a 5% reduction on our Scope 1 and 2 emissions. We surveyed more than 45,000 hectares of flora and fauna, supporting responsible management of our environmental footprint. We also recorded no major incidents, with zero major environmental, water-related, or waste-related incidents during the year. Turning now to slide 16. We believe that long-term success is built on genuine partnerships with our communities and stakeholders. During FY26, we directed 93% of our procurement spend to Australian businesses, supporting local economic value. We also invested AUD 38 million with First Nations businesses, strengthening Indigenous economic participation. Our financial contribution extends across our stakeholder base.

Speaker #4: Across our Australian operations, we achieved a 5% reduction in our Scope 1 and 2 emissions. We surveyed more than 45,000 hectares of flora and fauna, supporting responsible management of our environmental footprint.

Speaker #4: We also recorded no major incidents, with zero major environmental, water-related, or waste-related incidents during the year. Turning now to slide 16, we believe that long-term success is built on genuine partnerships with our communities and stakeholders.

Speaker #4: During FY26, we directed 93% of our procurement spend to Australian businesses, supporting local economic value. We also invested $38 million with 20 First Nations businesses.

Speaker #4: Strengthening Indigenous economic participation, our financial contribution extends across our stakeholder bases. We've paid $65 million in royalties to government, and we also increased our investment in communities, contributing $2.9 million across Australia and Brazil.

Sandra McInnes: We paid AUD 65 million in royalties to government, and we also increased our investment in communities, contributing AUD 2.9 million across Australia and Brazil. Turning now to slide 17. This published comprehensive report covering our operations and sustainability performance for FY26, which reflect our ongoing commitment to transparent disclosure. These reports are available in the sustainability section of our PLS website. I will now hand back to Dale to discuss strategy and capital allocation.

Speaker #4: Turning now to slide 17. We have published comprehensive reports covering our operations and sustainability performance for FY26, which reflect our ongoing commitment to transparent disclosures.

Speaker #4: These reports are available in the Sustainability section of our PLS website. I'll now hand back to Dale to discuss strategy and capital allocation.

Speaker #5: Thanks, Sandra. It's great to see the strong progress in the area of sustainability. And although sustainability is a full organizational focus, I want to thank you, Sandra, for your leadership and your team for the great progress we've made.

Dale Henderson: Thanks, Sandra. It is great to see the strong progress in the area of sustainability. Although sustainability is a full organizational focus, I want to thank you, Sandra, for your leadership and your team for the great progress we have made over this past year. Now, I would like to spend a few minutes on the strategy behind our overall results and why we believe it positions PLS well through the cycle. Pilgangoora is the foundation of PLS. It is a tier 1 asset with an over 30-year mine life, of which we own 100%. That ownership gives us control over operating decisions and capital allocation, whilst our shareholders retain the full benefit of the upstream economics. We have significant growth opportunities ahead of us at both Pilgangoora in Australia and Colina in Brazil, as well as selective opportunities downstream.

Speaker #5: Over this past year, I'd like to spend a few minutes on the strategy behind our overall results, and why we believe it positions PLS well through the cycle.

Speaker #5: Pilgangoora is the foundation of PLS. It's a Tier-1 asset with an over 30-year mine life, of which we own 100%. That ownership gives us control over operating decisions and capital allocation.

Speaker #5: Whilst our shareholders retain the full benefit of the upstream economics, we have significant growth opportunities ahead of us at both Pilgangoora in Australia and Kalina in Brazil, as well as selective opportunities downstream.

Speaker #5: Our financial strength means we can progress these opportunities selectively and on our terms. This gives us resilience through weaker markets and the capacity to act when opportunities emerge.

Dale Henderson: Our financial strength means we can progress these opportunities selectively and on our terms. This gives us resilience through weaker markets and the capacity to act when opportunities emerge. Next few slides show how that strategy has translated into operating performance, lower costs, and balance sheet strength. Turning to slide 20. Over the past three years, lithium recovery has steadily improved, moving from 67% through to just under 77%. Behind that improvement has been a consistent focus over a number of years. Test work, process improvements and plant enhancements, including the application of whole-of-ore sorting technology. The result is that ore processed has remained broadly stable, whilst production has increased to a record 880,000 tonnes in the year that we are speaking to today. That is a strong demonstration of the improvement we continue to make in the operating performance of Pilgangoora.

Speaker #5: The next few slides show how that strategy has translated into operating performance, lower costs, and balance sheet strength. Turning to slide 20: over the past three years, lithium recovery has steadily improved, moving from 67% through to just under 77%.

Speaker #5: Online, that improvement has been a consistent focus over a number of years—test work, process improvements, and plant enhancements, including the application of whole-of-ore sorting technology.

Speaker #5: The result is that all processed has remained broadly stable, whilst production has increased to a record 880,000 tons in the year that we're speaking to today.

Speaker #5: That is a strong demonstration of the improvement we continue to make in the operating performance of Pilgangoora. Slide 21 shows how these improvements have translated into higher production and lower unit costs over time.

Dale Henderson: Slide 21 shows how these improvements have translated into higher production and lower unit costs over time. Turning to slide 21 now. Over the same period, we have continued to build the scale and improve the cost position of Pilgangoora. The P680 and P1000 upgrades increased the capability of the operation, whilst the P850 operating model allowed us to phase production and protect the business when market conditions weakened. That has supported an 11% compound annual increase in production over the past five years, whilst maintaining a strong focus on lowering our unit costs. Operational changes, including our move to our owner-operator mining model and our Cost Smart, Future Ready program, have also improved the underlying cost base. Those operating outcomes have generated returns that have allowed us to continue to invest through the cycle, which we will turn to now on slide 22.

Speaker #5: So, turning to slide 21 now. Over the same period, we've continued to build the scale and improve the cost position of Pilgangoora.

Speaker #5: The P6AD and P1000 upgrades increased the capability to operate, whilst the PA50 operating model allowed us to phase production and protect the business when market conditions weakened.

Speaker #5: That has supported an 11% compound annual increase in production over the past five years, while maintaining a strong focus on lowering our unit costs.

Speaker #5: Operational changes, including our move to our owner-operated mining model and our cost-smart, future-ready program, have also improved the underlying cost base. Those operating outcomes have generated returns that have allowed us to continue to invest through the cycle.

Speaker #5: Which we'll turn to now on slide 22. Slide 22. So lithium is a volatile market, and our strategy is designed to use that cycle to our advantage rather than as a limitation.

Dale Henderson: Lithium is a volatile market and our strategy is designed to use that cycle to our advantage rather than as a limitation. Over the past four years, we have allocated AUD 4.8 billion across the business. Reinvesting AUD 2.4 billion, returning AUD 800 million to shareholders through dividends, excluding what we have announced today, and increasing our cash balance by approximately AUD 1.7 billion over the period. That has positioned us to continue to invest through the cycle without compromising the strength of the core business. Turning now to slide 23 to talk about what our next chapter looks like. P2000 is the most significant growth option at Pilgangoora, with the potential to increase production capacity to around 2 million tons per annum. The feasibility study is progressing with outcomes expected in the December quarter of this year.

Speaker #5: Over the past four years, we have allocated $4.8 billion, reinvesting $2.4 billion, returning $800 million to shareholders through dividends—excluding what we've announced today—and increasing our cash balance by approximately $1.7 billion over the period.

Speaker #5: That has positioned us to continue to invest through the cycle without compromising the strength of the core business. Turning now to Slide 23 to talk about what our next chapter looks like.

Speaker #5: P2000 is the most significant growth option for Pilgangoora, with the potential to increase production capacity to around 2 million tonnes per annum. The feasibility study is progressing, with outcomes expected in the December quarter of this year.

Speaker #5: We have approved $175 million of pre-FID investment to shorten the pathway to first store, if the Board elects to proceed. That investment is about readiness, not pre-committing FID.

Dale Henderson: We have approved AUD 175 million of pre-FID investment to shorten the pathway to first ore if the board elects to proceed. That investment is about readiness, not pre-committing FID. Any decision to proceed remains subject to the study outcomes and board approval, as I mentioned. Turning now to Colina, which is our principal geographic diversification opportunity. Moving to slide 24. Colina is a 100% owned project in Brazil and provides us with a significant long-term diversification option outside Australia. The feasibility study is progressing with outcomes expected in the December quarter next year, and we continue to assess enabling infrastructure that could support future development. The approach remains staged, with development timing dependent on the study outcomes, funding, and supportive market conditions. Following year-end, we also acquired neighboring tenements to expand our position in the district. Turning now to our selective chemicals exposure on slide 25.

Speaker #5: Any decision to proceed remains subject to the study outcomes and board approval, as I mentioned. Turning now to Kalina, which is our principal geographic diversification opportunity.

Speaker #5: Moving to slide 24. Kalina is a 100% owned project in Brazil, and provides us with a significant long-term diversification option outside Australia. The feasibility study is progressing, with outcomes expected in the December quarter next year.

Speaker #5: And we continue to assess enabling infrastructure that could support future development. The approach remains staged, with development timing dependent on the study outcomes, funding, and support of market conditions.

Speaker #5: Following year-end, we also acquired neighboring tenements to expand our position in the district. Turning now to our selective chemicals exposure on slide 25. Our approach to chemicals remains selective and staged.

Dale Henderson: Our approach to chemicals remains selective and staged. We are maintaining exposure to downstream value creation through our POSCO Pilbara Lithium Solution joint venture, our mid-stream demonstration plant, and our work together with Ganfeng Lithium, whilst limiting capital commitment until the economics are proven. That gives us the opportunity to build capability and preserve future pathways without compromising capital discipline. Turning now to slide 28 for our FY27 forums. Looking ahead for the year we are in, FY27, the priority is execution. Firstly, it is about safely ramping up the Ngungaju Facility and maximizing production cash generation from the Pilgangoora asset. Beyond that, we will continue to progress P2000, Colina, and our selective chemicals pathways, with capital deployed in a staged and disciplined way. The aim is simple: deliver from the core while continuing to advance highly accretive growth opportunities. Turning now to slide 28 for our FY27 guidance.

Speaker #5: We are maintaining exposure to downstream value creation through our PPLS2 inventure, our midstream demonstration plant, and our work together with Skanfeng. Whilst limited capital commitment until the economics are proven, that gives us the opportunity to build capability and preserve future pathways without compromising capital discipline.

Speaker #5: Turning now to slide 28 for our FY27 growth. So, looking ahead to the year we're in—FY27—the priority is execution. Firstly, it's about safely ramping up the Ngungaju facility and maximizing production cash generation from the Pilgangoora asset.

Speaker #5: Beyond that, we will continue to progress P2000, Kalina, and our selective chemicals pathways, with capital deployed in a staged and disciplined way. The aim is simple.

Speaker #5: Deliver from the core while continuing to advance highly accretive growth opportunities. Turning now to slide 28 for FY27 guidance. The execution focus is reflected in our guidance for the year.

Dale Henderson: That execution focus is reflected in our guidance for the year. Production is expected to increase between 1.03 million and 1.1 million tons as Ngungaju ramps up. FOB unit operating costs are guided in the range of AUD 575 to AUD 625 per ton, modestly above FY26 as the higher-cost Ngungaju tons return to the production mix. Capital expenditure is guided in the range of AUD 620 to AUD 685 million, reflecting increased mine development, sustaining and infrastructure investment, together with the approved AUD 175 million P2000 pre-FID. Any additional growth capital outside this guidance remains subject to further decisions. Turning now to slide 29, which details how we prioritize our capital. Our first priority is the capital required to safely sustain the operation and maintain the long-term performance of Pilgangoora. Beyond that, we are evaluating infrastructure investments that can enhance the capability of the operation and position it for further growth. Growth remains selective.

Speaker #5: Production is expected to increase to between 1.03 million and 1.1 million tons as Ngungaju ramps up. FOB unit operating costs are guided in the range of $575 to $625 per ton, modestly above FY26, as the higher-cost Ngungaju tons return to the production mix.

Speaker #5: Capital expenditure is guided in the range of $620 to $685 million, reflecting increased mine development, sustaining and infrastructure investment, together with the approved $175 million P2000 pre-FID.

Speaker #5: Any additional growth capital outside this guidance remains subject to further decisions. Turning now to slide 29, which details how we prioritized our capital. Our first priority is the capital required to safely sustain the operation and maintain the long-term performance of Pilgangoora.

Dale Henderson: Turning now to slide 29, which details how we prioritize our capital. Our first priority is the capital required to safely sustain the operation and maintain the long-term performance of Pilgangoora. Beyond that, we are evaluating infrastructure investments that can enhance the capability of the operation and position it for further growth. Growth remains selective.

Speaker #5: Beyond that, we are evaluating infrastructure investments that can enhance the capability of the operation and position it for further growth. Growth remains selective. The P2000 pre-FID program is approved, whilst P2000 FID and the Kalina pre-FID remain subject to successful studies, market conditions, and board approval.

Dale Henderson: The P2000 pre-FID program is approved, whilst P2000 FID and the Colina pre-FID remain subject to successful studies, market conditions, and board approval. The appendix in the back of the pack provides a detailed breakdown of what is included in FY27 CapEx guidance and what remains outside of guidance and subject to future approval. This approach to capital deployment is prioritize, protecting the core, improving the platform, and capturing growth opportunities without committing capital ahead of returns. Now turning to slide 31 for the market outlook. The long-term fundamentals underpinning electrification remain compelling. Battery costs have fallen by around 90% since 2010, making electrification increasingly competitive on economics rather than incentives alone. We are seeing that in electric vehicles. In June, more than one in four vehicles sold globally was electric, with penetration reaching 27%. Energy storage is growing rapidly as well.

Speaker #5: The appendix at the back of the pack provides a detailed breakdown of what is included in FY27 CAPEX guidance and what remains outside of guidance and subject to future approval.

Speaker #5: This approach to capital deployment is prioritized—protecting the core, proving the platform, and capturing growth opportunities without committing capital ahead of returns. Now, turning to slide 31 for the market outlook.

Speaker #5: The long-term fundamentals underpinning electrification remain compelling. Battery costs have fallen by around 90% since 2010, making electrification increasingly competitive on economics rather than incentives alone.

Speaker #5: We are seeing that in electric vehicles, in June, more than 1 in 4 vehicles sold globally was electric, with penetration reaching 27%. Energy storage is growing rapidly as well.

Speaker #5: Global battery energy storage investment was around $80 billion in 2025, and the IEA expects it to exceed $100 billion in 2026. Behind both of these figures sits a rapidly changing electricity system.

Dale Henderson: Global battery energy storage investment was around $80 billion in 2025, and the IEA expects it to exceed US $100 billion in 2026. Behind both of these sits a rapidly changing electricity system. Under the IEA stated policy scenario, global electrification generation increases by more than 50% to 2040, with solar and wind alone reaching 46% of generation. As that share of intermittent generation increases, so does the need for energy storage. Those demand drivers are translating directly into lithium consumption. Moving now to slide 32. The growth in lithium demand is well established and has been building for years. What is changing now is the scale and breadth of that demand. Chinese battery production is up 66% year to date, whilst lithium chemical inventories have fallen to 57% over the past 12 months and now represent around two and a half weeks of demand.

Speaker #5: Under the IEA Stated Policies Scenario, global electricity generation increases by more than 50% to 2040, with solar and wind alone reaching 46% of generation.

Speaker #5: As that share of intermittent generation increases, so does the need for energy storage. Those demand drivers are translating directly into lithium consumption. Moving now to slide 32.

Speaker #5: The growth in lithium demand is well established and has been building for years. What is changing now is the scale and breadth of that demand.

Speaker #5: Chinese battery production is up 66% year to date, while lithium chemical inventories have fallen to 57% over the past 12 months, and now represent around two and a half weeks of demand.

Speaker #5: Looking further ahead, Benchmark Minerals' base case for lithium demand growth was around 8% per annum to 2040, reaching 5.1 million tons of LCE—roughly three times the size of the market today.

Dale Henderson: Looking further ahead, Benchmark Minerals' base case for lithium demand growth is around 8% per annum to 2040, reaching 5.1 million tons of LCE, roughly three times the size of the market today. China remains the largest demand center, but growth is broadening materially across other geographies. In June, Europe accounted for around one in four EVs sold globally. In battery storage, year to date, year-on-year growth outside of China is even stronger. Europe up 96%, and Asia, excluding China, is up a whopping 258%, and the rest of the world up 93%. Incredible stats from the prior year. Demand is also broadening by application. Electric vehicles remain the largest end use, but stationary storage is growing rapidly, supported by a strong front of grid deployment and rising demand from data centers. The demand base is getting larger, more diversified, and increasingly global.

Speaker #5: China remains the largest demand center, but growth is broadening materially across other geographies. In June, Europe accounted for around one in four EVs sold globally.

Speaker #5: And in battery storage, year to date, year-on-year growth outside of China is even stronger: Europe is up 96%, and Asia excluding China is up a whopping 258%.

Speaker #5: And the rest of the world is up 93%—incredible stats from the prior year. Demand is also broadening by application. Electric vehicles remain the largest end-use, but stationary storage is growing rapidly.

Speaker #5: Supported by a strong front-of-grid deployment and rising demand from data centers. The demand base is getting larger, more diversified, and increasingly global. The question is whether supply can keep pace, and increasingly, whether that supply can be delivered reliably.

Dale Henderson: The question is whether supply can keep pace, and increasingly whether that supply can be delivered reliably. Turning now to slide 33. Meeting that demand is becoming harder. Development timelines have lengthened materially with new projects increasingly complex, capital intensive, and slower to deliver. Benchmark estimates a potential supply gap of around 1.6 million tons of LCE by 2040. To put that in perspective, that is the equivalent of approximately 12, in fact, more than 12 Pilgangooras, that gap, which is an incredible scale as you think about the 10-year delivery timeframe it has taken us to bring the Pilgangoora assets where we are today. Which takes us to the point that mine development cycles have continued to extend to around 18 years, which you can see on the right-hand graph on the slide. In this environment, reliable, long life supply becomes increasingly scarce and increasingly valuable.

Speaker #5: Turning now to slide 33. Meeting that demand is becoming harder; development timelines have lengthened materially, with new projects increasingly complex, capital-intensive, and slower to deliver.

Speaker #5: Benchmark estimates the potential supply gap of around 1.6 million tons of LCE by 2040. And to put that in perspective, that's the equivalent of approximately 12, in fact, more than 12 Pilgangoora's of that gap, which is an incredible scale.

Speaker #5: As you think about the 10-year delivery timeframe it's taken us to bring the Pilgangoora assets to where we are today, it takes us to the point that mine development cycles have continued to extend to around 18 years, which you can see on the right-hand graph on the slide.

Speaker #5: So, in this environment, reliable, long-lived supply becomes increasingly scarce and increasingly valuable. That is particularly relevant for PLS. Our platform provides customers with scale, consistent product quality, and reliable supply from a long-lived operation.

Dale Henderson: That is particularly relevant for PLS. Our platform provides customers with scale, consistent product quality, and reliable supply from a long life operation. We are seeing that value reflected directly in our commercial arrangements. Earlier this year, we executed an offtake agreement with a USD 1,000 per ton floor price, no price ceiling, no discounts, volume flexibility, and supported by a USD 100 million prepayment. Post year-end, we have executed a further agreement on similar terms, same floor price, no price ceiling, no discounts, volume flexibility at PLS's election, and a USD 80 million bank guarantee for security. That structure provides downstream protection whilst preserving uncapped upside and flexibility over volumes and terms. Those terms are not offered lightly. They demonstrate the emerging premium that supply chain partners are prepared to provide for reliable supply and the value of PLS's ability to deliver.

Speaker #5: We are seeing that value reflected directly in our commercial arrangements. Earlier this year, we executed an off-take agreement with a US$1,000 per ton floor price, no price ceiling, no discounts, volume flexibility, and supported by a US$100 million prepayment.

Speaker #5: Post year-end, we have executed a further agreement on similar terms: same floor price, no price ceiling, no discounts, volume flexibility at PLS’s election, and a US$80 million bank guarantee for security.

Speaker #5: That structure provides downstream protection whilst preserving uncapped upside and flexibility over volumes and terms. Those terms are not offered lightly. They demonstrate the emerging premium that supply chain partners are prepared to provide for reliable supply and the value of PLS's ability to deliver.

Speaker #5: So this is just a quick shout-out to the PLS sales and marketing team, led by Aaron and Mel. A fantastic set of outcomes in the year, which has been a credit to the team, to your leadership.

Dale Henderson: This is just a quick shout-out to the PLS sales and marketing team led by Aaron and Mal. A fantastic set of outcomes in the year which is paying a credit to the team, to your leadership, but most importantly, the strong, trusted partnerships you have continued to build on the years working with PLS. Turning to slide 34 for my closing remarks. FY26 was a record year for PLS and a strong demonstration of our through-the-cycle strategy in action. We improved the performance of Pilgangoora, we responded quickly as market conditions strengthened, and we converted that operating leverage into significant cash generation. That has left PLS with greater scale, a strong balance sheet, and the capacity to embed through the cycle without compromising the strength of the core business. The long-term fundamentals for lithium remain compelling.

Speaker #5: But most importantly, the strong, trusted partnerships you've continued to build on over the years, working with PLS. Now, turning to slide 34 for my closing remarks.

Speaker #5: FY26 was a record year for PLS and a strong demonstration of our through-the-cycle strategy in action. We improved the performance of Pilgangoora, we responded quickly as market conditions strengthened, and we converted that operating leverage into significant cash generation.

Speaker #5: That has left PLS with greater scale, a strong balance sheet, and the capacity to invest through the cycle without compromising the strength of the core business.

Speaker #5: The long-term fundamentals for lithium remain compelling. Demand continues to grow, broaden, and deepen, increasing the value of reliable, long-lived supply. We enter FY27 focused on safely ramping up Ngungaju, further improving the performance of the Pilgangoora asset, and capturing the growth opportunities ahead.

Dale Henderson: Demand continues to grow, broaden, and deepen, increasing the value of reliable long life supply. We enter FY27 focused on safely ramping up Ngungaju, further improving the performance of the Pilgangoora asset, and capturing the growth opportunities ahead. I want to thank our team across PLS for what they have delivered during FY26. An incredible set of results. Thank you, team. I also want to thank our shareholders for your continued support. I appreciate many of you have remained resolute in the opportunity this incredible market presents. More than that, your faith in PLS and the team's ability to deliver. Thank you for your support. With the platform we have built and a clear focus on disciplined execution, PLS is well-positioned to create long-term value for our shareholders.

Speaker #5: I want to thank our team across PLS for what they’ve delivered during FY26. An incredible set of results—thank you, team. I also want to thank our shareholders for your continued support.

Speaker #5: I appreciate that many of you have remained resolute in the opportunities this incredible market presents. And more than that, your faith in PLS and the team's ability to deliver.

Speaker #5: Thank you for your support. With the platform we have built and a clear focus on disciplined execution, PLS is well positioned to create long-term value for our shareholders.

Speaker #5: And with that, Alex, Sandra, and I would be pleased to take your questions. I'll now hand back to Michelle to open the floor for those questions.

Dale Henderson: And with that, Alex and Sandra and I would be pleased to take your questions. I will now hand back to Michelle to open the floor for those questions. Thank you, Michelle.

Speaker #5: Thank you, Michelle.

Speaker #1: Thank you. As a reminder, to ask a question please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Operator: Thank you. As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again. We ask that you please limit yourselves to one question and one follow-up. One moment while we compile our Q&A roster. Our first question is going to come from the line of Austin Yun with Macquarie. Your line is open. Please go ahead.

Speaker #1: We ask that you please limit yourselves to one question and one follow-up. One moment while we compile our Q&A roster. Our first question is going to come from the line of Austin Young with McCrory.

Speaker #1: Your line is open. Please go ahead.

Speaker #3: Morning. I'm Dan on the team. Saw the result, and yeah, strong, beating dividends. So just keen to understand the shareholder return part. This is fully franked, and following this capital allocation framework, should we anticipate a constant return even when the company goes into the high growth phase with P2000?

Austin Yun: Morning, Dale and the team. Saw the result and strong beating dividends. Just keen to understand the shareholder return part. This is fully franked. Following this capital allocation framework, should we anticipate a constant return even when the company goes into the high-growth phase with the P2000? Thank you.

Speaker #3: Thank you.

Speaker #4: Good morning, Austin. Thank you for the question. Yeah, as you said, we're pleased to be able to announce the 5% fully franked dividend this year.

Alex Wilcox: Good morning, Austin. Thank you for the question. As you said, we are pleased to be able to announce the 5 cent fully franked dividend this year. It is at a 22% payout ratio. It sits within that 20% to 30% adjusted free cash flow, which is consistent with the capital management framework. As we look forward, in the normal course of business, we will always continue to assess the capital management framework to ensure that it remains relevant, and if there was to be any changes, we would talk about them at that time. Obviously, the way that the dividend policy works, it does naturally flex through market cycles because it is tied to our free cash flow. That is something that continues to make sense given the nature of the market that we are in.

Alex Willcocks: Good morning, Austin. Thank you for the question. As you said, we are pleased to be able to announce the 5 cent fully franked dividend this year. It is at a 22% payout ratio. It sits within that 20% to 30% adjusted free cash flow, which is consistent with the capital management framework. As we look forward, in the normal course of business, we will always continue to assess the capital management framework to ensure that it remains relevant, and if there was to be any changes, we would talk about them at that time. Obviously, the way that the dividend policy works, it does naturally flex through market cycles because it is tied to our free cash flow. That is something that continues to make sense given the nature of the market that we are in.

Speaker #4: It is at a 22% payout ratio. It sits within that 20% to 30% of adjusted free cash flow, which is consistent with the capital management framework.

Speaker #4: As we look forward, in the normal course of business, we'll always continue to assess the capital management framework to ensure that it remains relevant, and if there were to be any changes, we'd talk about them at that time.

Speaker #4: Obviously, the way that the dividend policy works, it does naturally flex through market cycles because it's tied to our free cash flow. And that's something that's continued to make sense, given the nature of the market that we're in.

Speaker #2: Yeah, and I'll just add to Alex's outline there, Austin. As you know, it's all about price. We've seen a strong improvement year to date.

Dale Henderson: Yeah. I will just add to Alex's outline there, Austin. As you know, it is all about price. We have seen a strong improvement in the year to date. June alone, cash operating margin of more than AUD 500 million generated from the business. Just incredible returns depending on what the headline price is. Depending what price you want to pick, the outlook ultimately depends how we think about capital distribution. As Alex outlined, it is a ratio of free cash flow, so it naturally moderates as a function of the headline price that we are receiving.

Speaker #2: In June alone, cash operating margin of more than $500 million was generated from the business—just incredible returns, depending on what the headline price is. So, depending on what price you want to pick for the outlook ultimately depends on how we think about capital distribution, as Alex sort of outlined.

Speaker #2: It's a ratio of free cash flow, so it naturally moderates as a function of the headline price that we're receiving.

Speaker #3: Thank you. Thank you, Joe. Just—yeah, on the point of flexibility, just a quick follow-up. So, getting to the second half of this calendar year and the market is tightening.

Austin Yun: Thank you, Dale. On the point of flexibility, just a quick follow-up. As we get into the H2 of this current year and the market is tightening, and you highlight at the presentation the operations delivered a strong recovery result. Should we anticipate more flexibility in the grade of the product you offer to the market, given that the Ngungaju is coming up online, to balance and to keep the recovery at a continually high level by slightly reducing the product grade? Is there any scope of that? Thank you.

Speaker #3: And you highlighted in the presentation that the operation delivered a strong recovery result. Should we anticipate more flexibility in the rate of the product you offer to the market, given that Ngungaju is coming online?

Speaker #3: To balance and to keep the recovery at a continually high level, that's likely reducing the product rate. Is there any scope for that? Thank you.

Dale Henderson: Yeah. Thanks, Austin. In terms of delivered product to market, there is no change in our target product grade. What we have done with product grade is it is already optimized to maximize yield, maximize recovery, and through that maximize return. So, no change there. With Ngungaju coming on, of course, it is another processing plant and it gives the team the opportunity to do some more blending effectively across the two operations. But as I say, no change to target product grade.

Speaker #2: Yeah. Thanks, Austin. So in terms of delivered product to market, there is no change in sort of our target product rate. What we've done with product rate is it's already optimized to sort of maximize your maximized recovery and sort of through that maximized return.

Speaker #2: So, no change there. With Nugju coming on, of course, it's another processing plant, and it gives the team the opportunity to do some more blending effectively.

Speaker #2: Across the two operations, but as I say, no change to target product rate.

Speaker #3: That's clear. Thank you, Joe. I'll pass it on.

Austin Yun: That is clear. Thank you, Dale. Over.

Speaker #2: Thanks, Austin.

Dale Henderson: Thanks, Austin.

Speaker #1: Thank you. And one moment for our next question. Our next question is going to come from the line of Hugo Nicolaesi with Goldman Sachs.

Operator: Thank you. One moment for our next question. Our next question is going to come from the line of Hugo Nicolaci with Goldman Sachs. Your line is open. Please go ahead.

Speaker #1: Your line is open. Please go ahead.

Speaker #3: Morning, Dale, Alexandra. Thanks for the update, and congrats on a strong FY26. It's good to see Plant Three, or P2000, progressing and getting its own name now, which is great.

Hugo Nicolaci: Morning, Dale, Alexandra. Thanks for the update and congrats on the strong FY26. Look, good to see the Plant 3 or P2000 progressing and getting its own name now, which is great. Just looking at the footprint you've given us on slide 23, it looks like that's significantly larger than the P850 model you've got in the background. Am I correct in looking at that, firstly, the layout, you're going to have to relocate some of the existing waste dump and maintenance works there. Can you maybe talk to, just given the spacing you've got on the plant set up, just the future optionality you're building into P2000 and what sort of potential future debottlenecking opportunities you might have? Thanks.

Speaker #3: Just looking at the footprint you've given us on slide 23, it looks like that's significantly larger than the P850 model you've got in the background.

Speaker #3: Am I correct in saying that, firstly, looking at the layout, you're going to have to relocate some of the existing waste dump and maintenance works there?

Speaker #3: And then can you maybe talk to, just given the spacing you've got on the plant setup, the future optionality you're building into P2000 and what sort of potential future debottlenecking opportunities you might have?

Speaker #3: Thanks.

Speaker #2: No, thank you, Hugo. Look, as you say, the P2000 expansion is significant. Obviously, it's doubling the capacity. What that means practically is it's essentially a new everything, in terms of new ROM to tip from, new crushed ore stockpile, a new sort of front-end dry plant, and a new front-end wet plant.

Dale Henderson: Thanks, Hugo. As you say, the P2000 expansion, it's significant. Obviously, it's doubling the capacity. What that means practically, it's essentially a new everything in terms of new ROM to dip from, a new crusher stockpile, a new front-end dry plant, a new front-end wet plant. That pictorial that you can see is essentially a 3D visualization of that. So, it's a fairly extensive build. To the question of what's in its way, there are some temporary facilities I call it, which are being relocated. There's a small rework at the ROM, which has already been completed to make way. But in the main, it's fairly clear area, for the build of the plant, which is good.

Speaker #2: And that pictorial that you can see is essentially a 3D visualization of that. So it's a fairly sort of extensive build. To the question of what's in its way, there are some sort of temporary facilities, I'd call it, which have been relocated.

Speaker #2: There's a small rework at the ROM, which has already been completed to sort of make way. But in the main, it's a fairly clear area.

Speaker #2: For the build of the plant, which is good. And importantly, this makes, in some ways, for a more straightforward build in that we get the benefit of a brownfield expansion, in the sense that we've got existing camp and existing power, existing support infrastructure.

Dale Henderson: And importantly, this makes, in some ways, for a more straightforward build in that we get the benefit of a brownfields expansion in the sense that we have existing camp and existing power, existing support infrastructure, but it is greenfields in the sense that it is spatially dislocated from the P1000 plant. Albeit there are some tie-ins, in the main, it is spatially separated. So that makes for a more straightforward build, relatively. So we are in good standing there.

Speaker #2: But it's greenfields in the sense of being spatially dislocated from the P1000 plant, albeit there are sometimes tie-ins in the main. It's spatially separated.

Speaker #2: So that makes for a more straightforward build, relatively. So we're in good standing there.

Speaker #3: Great, thanks, Dale. And then maybe turning to Brazil, just subsequent to the year, I think you spent roughly $50 million buying some tenements off Lithium Ionic next to Colina.

Hugo Nicolaci: Great. Thanks, Dale, and then maybe turning to Brazil, just subsequent to the year, I think you spent roughly AUD 50 million buying some tenements off Lithium Ionic next to Colina. Should we think about that more as just an opportunistic bolt-on for future flexibility, or is that likely to be incorporated into your stage 1 studies at the moment?

Speaker #3: Should we think about that more as just an opportunistic bolt-on for future flexibility, or is that likely to be incorporated into your Stage One studies at the moment?

Speaker #2: Yes. Yeah, thanks. Yeah, the intention is that that will flow into the studies. Look, that particular tenure package butts up to the boundary of our existing tenure.

Dale Henderson: Yes. Thanks, Hugh. The intention is that will flow into the studies. Look, that particular tenure package butts up to the boundary of our existing tenure. Look, obviously, we were keen to have it, but we are having commenced the transaction, and we look forward to factoring that in ultimately to a revised study outcome, December quarter next year.

Speaker #2: Look, obviously, we were keen to have it. We had commenced the transaction, and we look forward to factoring that in ultimately to a revised study outcome in the December quarter next year.

Speaker #3: Great. Thanks for passing on.

Hugo Nicolaci: Great. Thanks, Paulson.

Speaker #2: Thanks, Hugo.

Dale Henderson: Thanks, you got it.

Speaker #1: Thank you. And one moment for our next question. Our next question will come from the line of Glenn Lockhock with Barrenjoey. Your line is open.

Operator: Thank you, and one moment for our next question. Our next question will come from the line of Glyn Lawcock with Barrenjoey. Your line is open. Please go ahead.

Speaker #1: Please go ahead.

Speaker #3: Morning, Dale. Just to follow up firstly on the dividend policy—can I just confirm, you were thinking about revisiting the 20 to 30 percent of free cash line, maybe adopting a slightly different approach?

Glyn Lawcock: Morning, Dale. Just to follow up firstly on the dividend policy, can I just confirm, you were thinking about revisiting the 20% to 30% of free cash flow and maybe adopting a slightly different approach. Is that still something you're thinking about? Or are you, right now, the 20% to 30% of free cash flow, your definition remains your preferred? Thanks.

Speaker #3: Is that still something you're thinking about, or are you right now at the 20% to 30% of free cash flow—your definition—remains your preferred?

Speaker #3: Thanks.

Speaker #2: Yeah. Yeah. Thanks, Glenn. Look, sort of as Alex touched on, we're applying a capital management framework as it stands. And that's what we're sort of announced today.

Dale Henderson: Yeah. Thanks, Glyn. Look, as Alex touched on, we're applying capital management framework as it stands and as what we've announced today. As to the possibility of revisiting that, of course, there's always that possibility. We're not looking to make any changes in the very near term. However, we will consider this later in the year. For the reason that several things will come together. We will have provided clarity to the market on some of these capital projects, in particular P2000. Secondly, we will have had a few more months of operating within the market, and we'll see what headline pricing looks like and what the outlook looks like. Really, the sum of those things will come together and we'll continue to reassess it. At all that, we're not saying we will change it, but it would be sensible to reassess later in the year or early next year.

Speaker #2: As to the possibility of revisiting that, of course, there's always that possibility. We're not looking to make any changes in the very near term.

Speaker #2: However, we will consider this later in the year. So the reason is that several things will come together. We will have provided clarity to the market on some of these capital projects, in particular P2000.

Speaker #2: Secondly, we will have had a few more months of operating within the market. We’ll see what headline pricing looks like, and what the outlook looks like.

Speaker #2: Really, some of those things will come together and we will continue to reassess it. Out of all that, we're not saying we will change it, but it would be sensible to reassess later in the year, or early next year.

Speaker #2: We'll see how we go. Alex, anything to add on that?

Dale Henderson: We'll see how we go. Alex, anything to add on that?

Speaker #4: Yeah. Great—great summary. I think it's something that we will naturally always consider. I think the other piece that I'd add is, as we look forward through our upcoming investment phase, we're well placed in terms of different funding options.

Alex Wilcox: Yeah. Great summary. I think it's something that we will naturally always consider. I think the other piece that I'd add is, as we look forward through our upcoming investment phase, we're well-placed in terms of different funding options. We've been really pleased with how the bond has traded since the issue in April. That creates a really good benchmark for us as we go forward. That combined with broader market outlook. The third piece I'd add is, as we've navigated through the last cycle, the strength of the balance sheet has definitely been a strategic asset for us, and that's something that we'll always consider as well in the broader context of capital management framework. Ensuring that we've got good, strong liquidity on the balance sheet to ensure that we can navigate through any conditions and make sure we're making those right long-term decisions for shareholders.

Alex Willcocks: Yeah. Great summary. I think it's something that we will naturally always consider. I think the other piece that I'd add is, as we look forward through our upcoming investment phase, we're well-placed in terms of different funding options. We've been really pleased with how the bond has traded since the issue in April. That creates a really good benchmark for us as we go forward. That combined with broader market outlook. The third piece I'd add is, as we've navigated through the last cycle, the strength of the balance sheet has definitely been a strategic asset for us, and that's something that we'll always consider as well in the broader context of capital management framework. Ensuring that we've got good, strong liquidity on the balance sheet to ensure that we can navigate through any conditions and make sure we're making those right long-term decisions for shareholders.

Speaker #4: We've been really pleased with how the bond has traded since the issue in April. That creates a really good benchmark for us as we go forward.

Speaker #4: And so, that combined with the broader market outlook, and the third piece I'd add is, as we navigated through the last cycle, the strength of the balance sheet has definitely been a strategic asset for us.

Speaker #4: And that's something that we will always consider as well in the broader context of our capital management framework—ensuring that we've got good, strong liquidity on the balance sheet to ensure we can navigate through any conditions and make sure we're making the right long-term decisions for shareholders.

Speaker #3: Yep, great. Maybe just pushing that a little bit further. I mean, when you think about the change, what is it you think you need to do as it moves to a payout ratio approach as opposed to a percentage of free cash flow? Or is it just simply the amount?

Glyn Lawcock: Yeah. Great. Maybe just pushing that a little bit further. When you think about the change, what is it you think you may need to do? Is it move to a payout ratio approach as opposed to percentage of free cash flow? Or is it just simply the amount? Can you give us any insight into your thinking?

Speaker #3: I mean, can you give us any insight into your thinking?

Alex Wilcox: I think as seen and with the dividends being announced within the framework and within the payout ratio, it works well for the organization that we're in. It naturally flexes based on market conditions. I think that's always important and relevant, particularly as we look to the chapter ahead and some really significant investment opportunities for us. So 20% to 30% feels like a reasonable balance and the right judgment. We'll continue to assess, but there's nothing that says that it's not suiting us well at the moment.

Alex Willcocks: I think as seen and with the dividends being announced within the framework and within the payout ratio, it works well for the organization that we're in. It naturally flexes based on market conditions. I think that's always important and relevant, particularly as we look to the chapter ahead and some really significant investment opportunities for us. So 20% to 30% feels like a reasonable balance and the right judgment. We'll continue to assess, but there's nothing that says that it's not suiting us well at the moment.

Speaker #4: I mean, I think, as seen, and with the dividend being announced within the framework and within the payout ratio, it works well for the organization that we're in.

Speaker #4: It naturally flexes based on market conditions, and I think that's always important and relevant, particularly as we look to the chapter ahead and some really significant investment opportunities for us.

Speaker #4: So 20% to 30% feels like a reasonable balance, and the right judgment will continue to assess. But there's nothing that says that it's not suiting as well.

Speaker #4: At the moment.

Speaker #3: Okay, that's great. And then, Dale, just one final question: just the unimproved capex that you call out—the sealing, the road, the camp, the HME.

Glyn Lawcock: Okay, that is great. Dale, just one final question. Just the unapproved CapEx that you call out, the sealing the road, the camp, the HME. I assume all of those need to go ahead regardless of your P2000 decision. I am surprised we have not made those decisions yet. I thought we might have seen one or two of those announced today. What is the sort of timing when we get some insight into those spend? Will it come with the P2000 in Q4 or before? Thanks.

Speaker #3: I assume all of those need to go ahead regardless of your P2000 decision. And I'm surprised we haven't made those decisions yet. I thought we might have seen one or two of those announced today.

Speaker #3: What's the sort of timing when we get some insight into those spends? Will it come with the P2000 in Q4, or before? Thanks.

Speaker #2: Yeah, thanks, Glenn. Yeah, look, as we've flagged, the sort of three categories of spend—the base operation, the enhanced category, and then the outright growth category.

Dale Henderson: Yeah, thanks, Glyn. Yeah, look, as we have flagged the sort of three categories of spend, the base operation, the enhanced category, and then the outright growth category. Yeah, the enhanced category, the second one really speaks to that point around investments that you would do in all cases because it lowers the operating costs overall and makes for more resilient operation. So we do have, in that category, as you say, some investments we plan to do over time in terms of roads, camp, et cetera. We flagged this to market, I think it was May. So not that long ago. As to timing, well, we are in study mode. Some things are out for tender. That process is in motion. When we are ready to advise the market, we will update you. So just look out for that one, Glyn.

Speaker #2: Yeah. The enhanced category—the second one—really speaks to that point around investments that you would do in all cases because it lowers the operating costs overall and makes for more resilient operation.

Speaker #2: So we do have, in that category as you say, some investments we plan to do over time in terms of roads, camp, etc., and we flagged this to market.

Speaker #2: I think it was May, so not that long ago. As to timing, well, we're in study mode. Some things are up for tender, and that process is in motion.

Speaker #2: And when we're ready to advise the market, we'll update you. So just, yeah, look out for that one, Glenn.

Speaker #3: All right. Thanks, Dale.

Glyn Lawcock: All right. Thanks, Dale.

Speaker #1: Thank you. And one moment for our next question. Our next question comes from the line of Raul with Morgan Stanley. Your line is open.

Operator: Thank you, and one moment for our next question. Our next question comes from the line of Rahul, with Morgan Stanley. Your line is open. Please go ahead.

Speaker #1: Please go ahead.

Speaker #5: Oh, hi. Good morning, Dale and Alex. Thanks for the call. Alex, sorry for the delay with the update on the dividend. I know you've had a couple of questions on that.

[Analyst] (Morgan Stanley): Oh, hi. Good morning, Dale and Alex. Thanks for the call. Alex, sorry to labor the point on the dividend. I know you've had a couple of questions on that. Just if we can perhaps revisit, if we're not changing the policy here, if we just go back perhaps 2, 3 years when you were undergoing significant CapEx, for P600, P1000. The thinking at that time was that you want to maintain a conservative balance sheet and that cash balance sheet. Obviously, the lithium markets were fairly different. If we do look forward now, I think what's changed really in the company is that you've got a really solid base of producing acid now, generating some really healthy cash flow, and perhaps you're much more protected from the lithium cycle in a way, in terms of the cash generation.

Rahul Anand: Oh, hi. Good morning, Dale and Alex. Thanks for the call. Alex, sorry to labor the point on the dividend. I know you've had a couple of questions on that. Just if we can perhaps revisit, if we're not changing the policy here, if we just go back perhaps 2, 3 years when you were undergoing significant CapEx, for P600, P1000. The thinking at that time was that you want to maintain a conservative balance sheet and that cash balance sheet. Obviously, the lithium markets were fairly different. If we do look forward now, I think what's changed really in the company is that you've got a really solid base of producing acid now, generating some really healthy cash flow, and perhaps you're much more protected from the lithium cycle in a way, in terms of the cash generation.

Speaker #5: Just if we can perhaps revisit, if we're not changing the policy here, and if we just go back perhaps two or three years, when you were undergoing significant capex for P600 and P1000, the thinking at that time was that you wanted to maintain a conservative balance sheet and a net cash balance sheet.

Speaker #5: Obviously, the lithium markets were fairly different. If we look forward now, I think what's changed, really, in the company is that you've got a really solid base of producing assets now, generating some really healthy cash flow.

Speaker #5: And perhaps you're much more protected from the lithium cycle, in a way, in terms of the cash generation. So, I guess the question is: if you do undertake one or two projects at the same time—obviously, I'm talking about Galina here—into next year, or end of next year, and at that time you would assume that P2000 is still ongoing.

[Analyst] (Morgan Stanley): So I guess the question is, if you do undertake one or 2 projects at the same time, obviously, I'm talking about Colina here into next year or end of next year. At that time you would assume that P2000 is still ongoing. Is there an element of conservatism that perhaps sneaks into that framework again? Or is it purely the 20% to 30% payout and the leverage ratio that's been defined, is the right way to think about the board's thinking on the dividend from a go-forward perspective? That's the first one. Thanks.

Rahul Anand: So I guess the question is, if you do undertake one or 2 projects at the same time, obviously, I'm talking about Colina here into next year or end of next year. At that time you would assume that P2000 is still ongoing. Is there an element of conservatism that perhaps sneaks into that framework again? Or is it purely the 20% to 30% payout and the leverage ratio that's been defined, is the right way to think about the board's thinking on the dividend from a go-forward perspective? That's the first one. Thanks.

Speaker #5: Is there an element of conservatism that perhaps sneaks into that framework again, or is it purely the 20% to 30% payout and the leverage ratio that's been defined is the right way to think about the board's thinking on the dividend from a go-forward perspective?

Speaker #5: That's the first one. Thanks.

Speaker #4: Yeah, Raul, thanks for the question. And I think you've articulated well all of the different factors that we consider. The first piece is, as we think around the broader balance sheet and capital management, the first pillar is a conservative balance sheet to ensure that the operations, through any point in the cycle, give us the ability to continue to invest in sensible projects rather than needing to make short-term decisions.

Alex Wilcox: Yeah, no, thanks for the question. I think you've articulated well all of the different factors that we consider. The first piece is, as we think around the broader balance sheet and capital management, the first pillar is a conservative balance sheet to ensure that the operations through any point cycle, give us the ability to continue to invest in sensible projects rather than needing to make short-term decisions. So that's the first thing. I think the second part that's changed as the business has naturally matured, and particularly as our funding options have matured, is we have different financing options as well, that help complement what is the right amount of liquidity to keep within the business. So that's the second part that we think about. Then the third piece is just naturally, we will always be operating in a sector that with any commodity will cycle.

Alex Willcocks: Yeah, no, thanks for the question. I think you've articulated well all of the different factors that we consider. The first piece is, as we think around the broader balance sheet and capital management, the first pillar is a conservative balance sheet to ensure that the operations through any point cycle, give us the ability to continue to invest in sensible projects rather than needing to make short-term decisions. So that's the first thing. I think the second part that's changed as the business has naturally matured, and particularly as our funding options have matured, is we have different financing options as well, that help complement what is the right amount of liquidity to keep within the business. So that's the second part that we think about. Then the third piece is just naturally, we will always be operating in a sector that with any commodity will cycle.

Speaker #4: So that's the first piece. I think the second part that's changed as the business has naturally matured, and particularly as our funding options have matured, is we have different financing options as well, which help complement what is the right amount of liquidity to keep within the business.

Speaker #4: So that's the second part that we think about. And then the third piece is just, naturally, we will always be operating in a sector that, with any commodities, will cycle.

Speaker #4: And so, a dividend policy that's linked to different cycles makes sense. But we're also aware that for a number of our shareholders, dividends are a feature.

Alex Wilcox: And so a dividend policy that's linked to different cycles makes sense. But we're also aware that for a number of our shareholders, dividends are a feature. Now, ultimately, we are a growth organization, and we believe that that is the number one priority for us and where we can deliver the best long-term shareholder outcomes, is really investing in those significant projects that we have in front of us. And so that will be a priority. But at the moment, we see that there can continue to be a balance amongst all of those different features that I've talked about. It doesn't need to be one or the other.

Alex Willcocks: And so a dividend policy that's linked to different cycles makes sense. But we're also aware that for a number of our shareholders, dividends are a feature. Now, ultimately, we are a growth organization, and we believe that that is the number one priority for us and where we can deliver the best long-term shareholder outcomes, is really investing in those significant projects that we have in front of us. And so that will be a priority. But at the moment, we see that there can continue to be a balance amongst all of those different features that I've talked about. It doesn't need to be one or the other.

Speaker #4: Now, ultimately, we are a growth organization, and we believe that is the number one priority for us. Where we can deliver the best long-term shareholder outcomes is really investing in those significant projects that we have in front of us.

Speaker #4: And so that will be a priority. But at the moment, we see that there continues to be a balance amongst all of those different features that I've talked about.

Speaker #4: It doesn't need to be one or the other.

Speaker #2: Yeah. Raul.

[Analyst] (Morgan Stanley): Got it. Okay. Yep.

Rahul Anand: Got it. Okay. Yep.

Speaker #5: Got it. Okay. Yep.

Speaker #2: Sorry, I could probably just add, it does feel a bit of déjà vu for us as a company. Back in the last cycle, we moved out of a low of $400 per ton to a high of more than $8,000 per ton.

Dale Henderson: I could probably just add. It does feel a bit of deja vu for us as a company. Back in the last cycle, we moved out of a low of AUD 400 per ton to a high of more than AUD 8,000 per ton. As we look forward, we were embarking on the opportunity of doubling the capacity. Fast-forward to today, it is deja vu in the sense that, yes, it has been a slightly different cycle. Rather than lows of 400, it has been lows of 600. As to where highs goes, well, you can pick the number there. As we look forward, we are essentially doubling the capacity again from this point. That is without thinking about the Colina. As we take that outlook view, it really is a case of modeling and understanding the balance of what is the price expectation for the future relative to the balance sheet we have built.

Speaker #2: And as we look forward, we were embarking on the opportunity of doubling the capacity. Fast forward to today, it's déjà vu in the sense that yes, it's been a slightly different cycle, rather than lows of $400.

Speaker #2: It's been lows of $600 as to where highs go, so you can pick the number there. But as we look forward, we're essentially doubling the capacity again from this point.

Speaker #2: That's without thinking about things like the Galina. So as we take that outlook view, it really is a case of modeling and understanding the balance of what's the price expectation for the future relative to the balance sheet we've built.

Dale Henderson: As we take that outlook view, it really is a case of modeling and understanding the balance of what is the price expectation for the future relative to the balance sheet we have built. This is really the thing we have to continue to triangulate on. As Alex has said, no changes slated at this time, but we will continue to reassess in the future.

Speaker #2: And this is really the thing we have to continue to triangulate on. As Alex has said, yeah, no change is slated at this time.

Dale Henderson: This is really the thing we have to continue to triangulate on. As Alex has said, no changes slated at this time, but we will continue to reassess in the future.

Speaker #2: But we'll continue to reassess in the future.

Speaker #5: Got it. Yep, thank you for that. And Dale, while I have you, perhaps you can help me on the second one. It’s more around the P1000, P2000 project.

[Analyst] (Morgan Stanley): Got it. Yep. Thank you for that. Dale, while I have you, perhaps the second one, you can help me on. It is more around the P1000, P2000 project. If we look at the recoveries, they have obviously been quite strong and you have had a question on that earlier. From my perspective, one thing that also helps recoveries is the head grade that you put into the plant. I do note that the head grade remains above the reserve grade. I guess my question is twofold. One is there an expectation here that it would revert to the reserve grade over the next 2 to 4 years? Or is the expectation that with P2000 coming on, you are probably going to have a better-defined reserve ore body, given your resource grade is higher than reserve at the moment?

Rahul Anand: Got it. Yep. Thank you for that. Dale, while I have you, perhaps the second one, you can help me on. It is more around the P1000, P2000 project. If we look at the recoveries, they have obviously been quite strong and you have had a question on that earlier. From my perspective, one thing that also helps recoveries is the head grade that you put into the plant. I do note that the head grade remains above the reserve grade. I guess my question is twofold. One is there an expectation here that it would revert to the reserve grade over the next 2 to 4 years? Or is the expectation that with P2000 coming on, you are probably going to have a better-defined reserve ore body, given your resource grade is higher than reserve at the moment?

Speaker #5: So if we look at the recoveries, they've obviously been quite strong, and you've had a question on that earlier. From my perspective, one thing that also helps recoveries is the head grade that you put into the plant.

Speaker #5: So, I do note that the head grade remains above the reserve grade. So I guess my question is twofold. One is, is there an expectation here that it would revert to the reserve grade over the next two to four years?

Speaker #5: Or is the expectation that with P2000 coming on, you're probably going to have a better-defined reserve ore body, given your resource grade is higher than your reserve at the moment?

[Analyst] (Morgan Stanley): Which of those 2 directions should we be thinking along the lines of? Thanks.

Rahul Anand: Which of those 2 directions should we be thinking along the lines of? Thanks.

Speaker #5: Which of those two directions should we be thinking along the lines of? Thanks.

Speaker #2: Sure. So probably the place to start is—the good problem that we've had over the years is that the resource has continued to grow materially as we've drilled it.

Dale Henderson: Sure. Probably the place to start is, the good problem that we've had is over the years, the resource has continued to grow materially as we've drilled it. Things like the average head grade have continued to change favorably. Stronger head grades for longer is ultimately what's flowed through some of those resource and reserve upgrades. So that's been one factor which has changed. So it just really relates to what we continue to find in the ground. Separate to that is our tools and techniques to maximize resource capture, extraction, and concentration. The good news here is that we've continued to get better and better as an entity at mastering that, and the results we've announced today really speak to that, which is a multitude of new techniques and levers.

Speaker #2: And things like the average head grade have continued to change favorably. Stronger head grade for longer is ultimately what's flowed through some of those resource and reserve upgrades.

Speaker #2: So, that's been one factor which has changed. So, that just really relates to what we've continued to find in the ground. Separate to that is our tools and techniques to maximize resource capture, extraction, and concentration.

Speaker #2: Now, the good news here is that we've continued to get better and better as an entity at sort of mastering that. And the results we've announced today really speak to that, which is a multitude of new techniques and levers. We've continued to talk about ore sorting, online analyzers, and there are other things we do on the mine, which has enabled us to capture more resource and maximize lithium recovery.

Dale Henderson: We continue to talk about ore sorting, online analyzers. There's other things we do in the mine, which has enabled us to capture more resource and maximize lithium recovery. As we look forward to, ultimately, the expansion, the mission remains the same. We're looking to maximize resource capture, maximize lithium recovery, and head grade will ebb and flow as a function of principally the mine plan. So no change to the mission. There's no sort of target head grade at the moment or anything like that. It's just a function of what's been optimized out of the mine plan. As we roll forward to P2000, when we come to market with that study outcome, we'll be able to provide a bit more visibility as to how we think about maximizing lithium recovery with that new processing plant.

Speaker #2: As we look forward to, ultimately, the expansion, the mission remains the same. We're looking to maximize resource capture, maximize lithium recovery, and head grade will ebb and flow as a function of, principally, the mine plan.

Speaker #2: So that's really—so, no change to the mission. There's no sort of target head grade at the moment or anything like that; it's just a function of what's been optimized out of the mine plan.

Speaker #2: And as we roll forward to P2000, when we come to market with that study outcome, we’ll be able to provide a bit more visibility as to how we think about maximizing lithium recovery with that new processing plant.

Speaker #5: Got it. Thank you. That's one too.

James Redfern: Got it. Thank you. That's my 2.

Rahul Anand: Got it. Thank you. That's my 2.

Speaker #3: One more moment. For our next question—our next question is going to come from the line of David Fung with CICC. Your line is open.

Operator: One moment for our next question. Our next question is going to come from the line of David Feng with CICC. Your line is open. Please go ahead.

Speaker #3: Please go ahead.

Speaker #6: Well, morning, Dale, Alex, and team. My first question is regarding your contract itself. So we know that previously you have the MX agreement, comprised of floor price and prepayment.

David Feng: Good morning, Dale, Alex, and team. My first question is regarding your contracted sales. We know that previously you have the Canmax agreement combined of floor price and prepayments. I am just wondering, is that type of structure still attractive to other customers nowadays? Would you consider having more this kind of contracts to protect your cash flows against potential volatility in the market, especially when you are potentially entering a new round of extension CapEx? I will come back with my second one.

Speaker #6: I'm just wondering, is that type of structure still attractive to other customers nowadays? And would you consider having more of these kinds of contracts to protect your cash flows against potential volatility in the market, especially when you're potentially entering a new round of expansion capex?

Speaker #6: I'll come back with my second one.

Speaker #2: Yeah, great. Thanks for the question. The short answer is yes, there's been strong interest and competition around off-take and the types of terms that we announced today.

Dale Henderson: Yeah, great. No, thanks for the question. The short answer is, yes, there has been strong interest and competition around offtake and the types of terms that we announced today. That is great, and I think that speaks to the appeal of PLS as a reliable supplier. So that is good. As to PLS's objective, the answer to that is yes. We are, of course, wanting to always secure the strongest commercial terms we can and yeah, delighted with what the team has achieved here. It is another step forward on what we announced off the back of the Canmax offtake, and as we move forward, we will look to do what we can to continue to secure terms of this nature, or even better, if we can.

Speaker #2: So that's great, and I think that speaks to the appeal of PLS as a reliable supplier, so that's good. As to PLS's objective, the answer to that is yes.

Speaker #2: We're, of course, always wanting to secure the strongest commercial terms we can. And yeah, delighted with what the team's achieved here. It's another step forward on what we announced off the back of the CANMAX off-take.

Speaker #2: And as we move forward, we'll look to do what we can to continue to secure terms of this nature—or even better, if we can—and, of course, that's the name of the game: to try and protect our business from the downside, while also ensuring we've got exposure to the upside.

Dale Henderson: Of course, that is the name of the game, to try and protect our business from the downside whilst also ensuring we have got exposure to the upside. So we will continue to work hard at that.

Speaker #2: So, we'll continue to work hard at that.

Speaker #6: Thank you, Dale. And just to have a follow-up—I’m just assuming that PPIS remains in its current operating model. Could you remind us how your off-take sales to PASCO are executed at this stage?

David Feng: Thank you, Dale. Just have a follow-up on, just assuming that PPLS remains in its current operating model, could you remind us how your offtake sales to POSCO is executed at this stage? What level of sustaining cost and expenses you would need to roughly bear in FY27?

Speaker #6: And what level of sustaining cost and expenses would you need to roughly bear in FY27?

Speaker #2: Sure. Let me talk to the offtake, and then Alex might want to speak to the cost. So as it relates to the JV in South Korea, the supplier is 100% dependent on the volume from Pilgangoora.

Dale Henderson: Sure. Let me talk to the offtake and then Alex might want to speak to the cost. As it relates to the JV, in South Korea, the supply is 100% dependent on the volume from Pilgangoora. How that works practically is on a year-on-year basis, we sort of book in the required volume in discussion with POSCO, our JV partner, then that gets translated to a shipping schedule. So that is how we sort of manage it on a year-on-year basis. But 100% supply comes from Pilgangoora. As to cost of production for the JV, it has been sort of a period of initially ramp up, then a moderated period, now we are moving back into essentially ramp up. So we have not yet had the opportunity to really demonstrate the JV unit cost, in terms of what is possible with maximized throughput recovery, et cetera.

Speaker #2: How that works practically is, on a year-on-year basis, we sort of book in the required volume in discussion with PASCO, our JV partner, and that gets translated to a shipping schedule.

Speaker #2: So that's how we sort of manage it on a year-on-year basis. But 100% of supply comes from Pilgangoora. As to cost of production, for the JV, it's been sort of a period of initial ramp-up, then a moderated period, and now we're moving back into essentially ramp-up.

Speaker #2: So we've not yet had the opportunity to really demonstrate the JV unit cost in terms of what's possible with maximized throughput, recovery, etc., etc.

Speaker #2: So we don't have much of a study yet, but we're looking forward to, in due course, being able to talk to that. Alex?

Dale Henderson: So, we don't have a much of a steer yet, but we're looking forward to, in due course, being able to talk to that. Alex?

Alex Wilcox: Yeah. Thanks, Dale. Look, exactly as Dale said, I think the first piece, obviously as an 18% shareholder, we don't disclose broader forecast and cost information at a granular level in relation to POSCO Pilbara Lithium Solution. But exactly as Dale said, so we've been pleased with the fact that there are good proof points for both trains in terms of full ramp rates and ability for that plant to be able to operate efficiently. At the moment, though, it is operating in batch mode, and so with any facility of that nature, obviously batch versus a full run rate will have a significant impact on just that cost rationalization.

Alex Willcocks: Yeah. Thanks, Dale. Look, exactly as Dale said, I think the first piece, obviously as an 18% shareholder, we don't disclose broader forecast and cost information at a granular level in relation to POSCO Pilbara Lithium Solution. But exactly as Dale said, so we've been pleased with the fact that there are good proof points for both trains in terms of full ramp rates and ability for that plant to be able to operate efficiently. At the moment, though, it is operating in batch mode, and so with any facility of that nature, obviously batch versus a full run rate will have a significant impact on just that cost rationalization.

Speaker #4: Yes, thanks, John. So exactly as Dale said, I think the first piece, obviously, is an 18% shareholder, and we don't disclose broader forecasts and cost information at a granular level in relation to PPLS.

Speaker #4: But exactly as Dale said, we've been pleased with the fact that there are good proof points for both trains in terms of full ramp rates and the ability for that plant to operate efficiently.

Speaker #4: At the moment, though, it is operating in batch mode. And so, with any facility of that nature, obviously batch versus a full run rate will have a significant impact on just that cost fractionalization.

Speaker #6: Thank you very much. I'll pass it on.

David Feng: Thank you very much. I will pass it on.

Speaker #3: As we move on to our next question, our next question will come from the line of James Redfern with RBC Capital Markets. Your line is open.

Operator: As we move on to our next question. Our next question will come from the line of James Redfern with RBC Capital Markets. Your line is open. Please go ahead.

Speaker #3: Please go ahead.

Speaker #5: Good morning, Dale. And Alex, hope you're well. Thank you for the market comments out to 2040. I was just wondering if you have any sort of strong views on supply growth in, say, the next five years.

James Redfern: Good morning, Dale and Alex. Hope you are well. Thank you for the market comments out to 2040. I was just wondering if you have any sort of strong views on supply growth in, say, the next 5 years, and how you are thinking about the lithium market over that period with regards to the supply-demand imbalance for lithium. My second question is, has PLS ever disclosed its long-term price assumption using its forecasting? Thank you.

Speaker #5: And how are you thinking about the lithium market over that period, with regards to the supply-demand imbalance for lithium? And then my second question is, has PLS ever disclosed its long-term price assumption used in its forecasting?

Speaker #5: Thank you.

Speaker #2: Yeah, thanks for the questions, James. So, as it relates to the supply side, yeah, of course, we've continued to build an in-house view of that.

Dale Henderson: Yeah. Thanks for the questions, James. As it relates to supply side, yeah, of course, we have continued to build an in-house view of that, and we factor in what we think are the more probable supply. For that, what we think is most probable are the various brownfields expansions, restarts. Of course, the Chinese mines are in that. When we load that all in with some quite conservative demand assumptions, the good news is that we only see a more probable demand deficit occurring. The question becomes, well, where to beyond that? You have to turn your mind to the greenfields projects. What we are observing there is there are few and far between who have been approved to date, let alone getting on with the build and commissioning.

Speaker #2: And we factor in what we think are the more probable supplies, and for that, what we think is most probable are the various brownfield expansions, restarts, and of course, the Chinese mines are in that.

Speaker #2: And when we load that all in with some quite conservative demand assumptions, the good news is that we see a more probable demand deficit occurring.

Speaker #2: And then the question becomes, well, where to beyond that? And you have to turn your mind to the greenfield projects, and what we're observing there is that few and far between have been approved to date, let alone getting on with a build and commissioning.

Speaker #2: I think what that sets up is essentially the potential for potentially a more elongated deficit period, time will tell. When you roll back the clock and you look in the rearview mirror, what was in the last price rally, what was appeared to be some of the more easy to start operations and now are all plugged in.

Dale Henderson: I think what that sets up is essentially the potential for potentially a more elongated deficit period. Time will tell. When you roll back the clock and you look in the rearview mirror, in the last price rally, what appeared to be some of the more easier to start operations are now all plugged in. The next wave of supply, I think, is probably going to be more challenging given that in most cases, these mines are more difficult locations or difficult domiciles, but time will tell. For PLS as a low-cost operator, it does not phase us. We continue to study where we sit on the cost curve, and given the strong balance sheet, the low-cost position, the strong off-takes that we continue to secure, we are incredibly well-placed for what we think to navigate probably every part of the cycle.

Speaker #2: So, the next wave of supply—I think it's probably going to be more challenging, given that in most cases, these mines are in more difficult locations or difficult domiciles.

Speaker #2: But time will tell. For PLS, as a low-cost operator, it doesn't faze us. We continue to study where we sit on the cost curve, and given the strong balance sheet, the low-cost position, and the strong off-takes that we continue to secure, we are incredibly well placed for what we think is to navigate probably every part of the cycle.

Speaker #2: And we keep focused on setting ourselves up to be as strong as we can be in that regard. Moving to the question of what our long-term price assumptions are.

Dale Henderson: We keep focused on setting ourselves for as strong as we can be in that regard. Moving to the question of what is our long-term price assumptions. We have not made a practice of disclosing this other than when we have done FID points. We have provided an assessment and some sensitivities around this, and typically at those junctures, we have taken a consensus average at that moment in time. We have done that historically. As it relates to the in-house work, what we do, and as people would expect, is we model a range of scenarios to make sure that we can comfortably navigate, I guess, all parts of the cycle. Of course, within that, we are deeply focused on downside scenarios, of course, to make sure that we can comfortably navigate that part of the cycle if it was to eventuate.

Speaker #2: Now, we haven't made a practice of disclosing this. Other than when we have done FID points, we've provided an assessment and some sensitivities around this.

Speaker #2: And typically, at those junctures, we've taken a consensus average at that moment in time, so we've done that historically. As it relates to what we do—as people would expect—we model a range of scenarios to make sure that we can comfortably navigate all parts of the cycle. And, of course, within that, we're deeply focused on downside scenarios, to make sure that we can comfortably navigate that part of the cycle if it was to eventually occur.

Speaker #5: Okay, Dale. Thank you very much. Appreciate that.

James Redfern: Okay, Dale, thank you very much. Appreciate that.

Speaker #2: Thanks, James.

Dale Henderson: Thanks, James.

Speaker #3: Thank you. And one moment for our next question. Our next question is going to come from the line of Tiago Ogia with Citi. Your line is open.

Operator: Thank you. One moment for our next question. Our next question is going to come from the line of Thiago Ojea with Citi. Your line is open. Please go ahead.

Speaker #3: Please go ahead.

Speaker #7: Hi, thanks. Good morning, everyone. I think my first question is regarding Colina, just as a follow-up from the previous question. I understand that the area does not only add some resources to the project, but also would help you in designing the pit. So if you can comment exactly how this will change the pit design, if it will.

Thiago Ojea: Hi. Thanks. Good morning, everyone. I think my first question is regarding Colina, just on a follow-up from previous question. I understand that the area does not only add some resources to the project, but also would help you in design the pit. If you can comment exactly how this will change the pit design if it will. The second question, perhaps for Alex, I understand that we have a leverage policy. I just would like to understand if there is any M&A opportunity that comes up, I understand you have a lot of growth projects already in the pipeline, but if any kind of M&A opportunity comes up, would you have any kind of flexibility? This would use your EBITDA through the cycle or EBITDA spots to make these decisions. Thank you.

Speaker #7: And the second question, perhaps for Alex— I understand that you have a leverage policy. I just would like to understand if, should any M&A opportunity come up— I understand you have a lot of growth projects already in the pipeline.

Speaker #7: But if any kind of M&A opportunity comes up, would you have any kind of flexibility? And would you use your EBITDA through the cycle or spot EBITDA to make this decision?

Speaker #7: Thank you.

Speaker #2: Thanks, Tiago. So I'll take the first one. Alex can speak to the second. Yeah. So as it relates to the acquisition, it butts up right against the boundary of the existing 10-year package.

Dale Henderson: Thanks, Thiago. I will take the first one, Alex can speak to the second. As it relates to the acquisition, it butts up right against the boundary of the existing tenure package. The benefit of that acquisition is, yes, there is an increase in resource, so some more lithium units. We like that. As to what is the opportunity spatially as to waste dumps, mine plans, and is there a different configuration? We are really at the start of exploring that, and there is potential that this can help us, but we do not need it, and we did not need it in terms of going into this acquisition, but it is accretive. Obviously, that is why we did the transaction. The team will really be working through the process of revised studies on the basis of this acquisition, and we look forward to updating more conclusively December quarter next year.

Speaker #2: So, the benefit of that acquisition is, yes, there's an increase in resource—some more lithium units. We like that. As to what's the opportunity spatially, regarding waste dumps, mine plans, and whether there is a different configuration?

Dale Henderson: As to what is the opportunity spatially as to waste dumps, mine plans, and is there a different configuration? We are really at the start of exploring that, and there is potential that this can help us, but we do not need it, and we did not need it in terms of going into this acquisition, but it is accretive. Obviously, that is why we did the transaction. The team will really be working through the process of revised studies on the basis of this acquisition, and we look forward to updating more conclusively December quarter next year.

Speaker #2: Well, really, we're at the start of exploring that, and there is potential that this can help us. But we don't need it, and we didn't need it in terms of going into this acquisition.

Speaker #2: But it's accretive, obviously—that's why we did the transaction. The team will really be working through the process of revised studies on the basis of this acquisition.

Speaker #2: And we look forward to updating more conclusively at the December quarter next year.

Speaker #6: Hi, Tiago. In relation to the other part of your question and M&A, as you'd expect, we continue to be active and look at a whole range of opportunities, as I think that will always be part of PLS's DNA.

Alex Wilcox: Hi, Thiago. In relation to your other part of the question in M&A, as you would expect, we continue to be active and look at a whole range of opportunities as I think will always be part of PLS's DNA. Should any of those eventuate, I think the great position that we are in at the moment is we have a number of different options, depending on what form that could take, if at all it did present itself. In relation to our leverage target, yes, that is very much a through the cycle target. We would always look at it over a 2 to 3 to 4-year view.

Alex Willcocks: Hi, Thiago. In relation to your other part of the question in M&A, as you would expect, we continue to be active and look at a whole range of opportunities as I think will always be part of PLS's DNA. Should any of those eventuate, I think the great position that we are in at the moment is we have a number of different options, depending on what form that could take, if at all it did present itself. In relation to our leverage target, yes, that is very much a through the cycle target. We would always look at it over a 2 to 3 to 4-year view.

Speaker #6: Should any of those eventually—I think the great position that we're in at the moment is we have a number of different options, depending on what form that could take, if at all it did.

Speaker #6: It did present itself in relation to our leverage target. Yes, that is very much a through-the-cycle target. And so we'd always look at it over a two- to three- to four-year view. I think the other piece that we would be considering is, should the board approve a P2000, then we would look forward as well to what’s expected EBITDA would be on an expanded operation as well when we make those considerations.

Alex Wilcox: I think the other piece that we would be considering is should the board approve a P2000, then we would look forward as well to what expected EBITDA would be on an expanded operation as well when we make those considerations. I think we've got lots of optionality in front of us around should we choose a pathway of further inorganic growth, there's a number of different ways that that could be funded.

Alex Willcocks: I think the other piece that we would be considering is should the board approve a P2000, then we would look forward as well to what expected EBITDA would be on an expanded operation as well when we make those considerations. I think we've got lots of optionality in front of us around should we choose a pathway of further inorganic growth, there's a number of different ways that that could be funded.

Speaker #6: So I think, really, we've got lots of optionality in front of us around whether we should choose a pathway of further inorganic growth. There are a number of different ways that that could be funded.

Speaker #5: Okay, thanks. Just to clarify—so,

Thiago Ojea: Okay, thanks. Just to clarify, when you think on the leverage, if perhaps any M&A opportunities arise, you would think the EBITDA in 2, 3 years from the decision time, right? Is that correct?

Speaker #7: When you think about the leverage, if perhaps any kind of M&A opportunities arise, you would think about the EBITDA in two or three years from the decision time, right?

Speaker #7: That's correct?

Speaker #6: Well, we've always said it's "through the cycle." So, what "through the cycle" means is that we would be comfortable exceeding for a short period of time, as long as it's on a more normalized basis.

Alex Wilcox: Well, we've always said it's through the cycle. What through the cycle means is that we would be comfortable exceeding for a short period of time as long as on a more normalized basis. That is what the target would look to.

Alex Willcocks: Well, we've always said it's through the cycle. What through the cycle means is that we would be comfortable exceeding for a short period of time as long as on a more normalized basis. That is what the target would look to.

Speaker #6: That is what the target would look to. Having said that, I just want to note, and as you see in the balance sheet, whilst that target's there, PLS has historically—and as we've articulated again today—retained a good, strong, solid underlying balance sheet, and strong liquidity continues to be important to us.

Thiago Ojea: Okay.

Alex Wilcox: Having said that, as you know, and as you see in the balance sheet, and whilst that target's there, PLS is historically, and as we've articulated again today, retaining a good, strong, solid underlying balance sheet and strong liquidity continues to be important to us. I'd just consider both of those statements as a collective, and we'll always look to find the right balance.

Alex Willcocks: Having said that, as you know, and as you see in the balance sheet, and whilst that target's there, PLS is historically, and as we've articulated again today, retaining a good, strong, solid underlying balance sheet and strong liquidity continues to be important to us. I'd just consider both of those statements as a collective, and we'll always look to find the right balance.

Speaker #6: So I just consider both of those statements as a collective and will always look to find the right balance.

Speaker #7: That's clear. Thank you, Alex. Thanks, Dave.

Thiago Ojea: That is clear. Thank you, Alex. Thanks, Dale.

Speaker #1: So we're just running out of time. We will just take a few questions from the webcast in the last few minutes. So, first question: What exactly are we looking for with the Gangfeng JV—a hydroxide plant, or midstream in Australia, China, or elsewhere?

[Company Representative] (PLS): We are just running out on time. We will just take a few questions from the webcast in the last few minutes. First question, what exactly are we looking for with the Ganfeng JV, a hydroxide plant or mid-stream in Australia, China or elsewhere?

James Fuller: We are just running out on time. We will just take a few questions from the webcast in the last few minutes. First question, what exactly are we looking for with the Ganfeng JV, a hydroxide plant or mid-stream in Australia, China or elsewhere?

Speaker #2: Yeah, thanks for the question. So, the objective with the study with Gangfeng is to look at additional chemical processing outside of China, somewhere. And we've been working together, studying globally, comparing and contrasting different industrial parks, and as to what chemical type, we've been studying that too.

Dale Henderson: Yeah. Thanks for the question. The objective with the study with Ganfeng is to look at additional chemical processing outside of China somewhere. We have been working together studying globally, comparing and contrasting different industrial parks. As to what chemical type, we have been studying that too. Both Ganfeng and PLS were very open to full battery product manufacturing or potentially mid-stream. That is a potential option. We are studying both together and yeah, very happy to be working together with Ganfeng because we have continued to learn a lot and which I think places both groups very well as this market continues to evolve rapidly.

Speaker #2: And both Gangfeng and PLS were very open to full battery product manufacturing, or potentially midstream. So that's a potential option. So we're studying both together.

Speaker #2: And yeah, very happy to be working together with Gangfeng because we've continued to learn a lot, and I think that places both groups very well as this market continues to evolve rapidly.

Speaker #1: Okay, thank you. Sandra, what was the reason behind the 5% reduction in emissions in 2026?

[Company Representative] (PLS): Okay, thank you. Sandra, what was the reason behind the 5% reduction in emissions in FY26?

James Fuller: Okay, thank you. Sandra, what was the reason behind the 5% reduction in emissions in FY26?

Speaker #4: Thanks, James. The reduction was primarily driven by improved operational and energy efficiency, including higher lithium recovery and our new fleet management system, Mindstar, as well as fuel optimization.

Sandra McInnes: Thanks, James. The reduction was primarily driven by improved operational and energy efficiencies, including higher lithium recovery and our new fleet management system, MineStar, as well as fuel optimization. It also was aided by the Ngungaju Plant being in care and maintenance. Notably, our absolute Scope 1 and 2 emissions fell by 5% even as we had increased production.

Speaker #4: It also was aided by the Ngungaju plant being in care and maintenance. But notably, our absolute Scope 1 and 2 emissions fell by 5%, even as we had increased production.

Speaker #1: Great, thank you. Next question—we're seeing spot pricing back above $2,000. Is BMX still active? If not, why the shift towards floor price term deals such as KMAX instead of capturing spot upside via the platform?

[Company Representative] (PLS): Great. Thank you. Next question, with spot pricing back above AUD 2,000, is BMX still active? If not, why the shift towards floor price term deals such as Canmax instead of capturing spot upside via the platform?

James Fuller: Great. Thank you. Next question, with spot pricing back above AUD 2,000, is BMX still active? If not, why the shift towards floor price term deals such as Canmax instead of capturing spot upside via the platform?

Speaker #2: Yeah. So with BMX, it's not active. But as PLS is doing occasional spot sales, yes. Now, we've not chosen to bring BMX back online because we see the benefit as—we see the benefit as it being unlikely.

Dale Henderson: Well, BMX is not active, but is PLS doing occasional spot sales? Yes. We've not chosen to bring BMX back online because we see the benefit as a thing unlikely. The reason is the market has changed. When we initiated BMX back in 2021, 2022, it was an important evolution of the market to enable price discovery because price discovery was few and far between. That was the principal reason for doing it, and it was very successful in enabling efficiency with price discovery. Fast-forward to today, there's much more price discovery happening. There is multiple entities doing their own forms of private competitive processes, of which PLS is doing the same. But our observation would be price discovery is now working far more effectively in the market. So it's for these reasons we've not seen benefit in bringing that back because price discovery is working.

Speaker #2: Now, the reason is the market has changed. When we initiated BMX back in '21, '22, there was an important evolution of the market to enable price discovery because price discovery was few and far between.

Speaker #2: So that was the principal reason for doing it. And it was very successful—it enabled efficiency with price discovery. Fast forward to today, there's much more price discovery happening.

Speaker #2: There are multiple entities doing their own forms of private competitive processes, of which PLS is doing the same. But our observation would be that price discovery is now working far more effectively in the market.

Speaker #2: So, it's for these reasons we've not seen benefit in bringing that back, because price discovery is working. We're doing spot sales. As to the question of why pursue these off-takes with floor prices, well, the answer there is we get the benefit of both worlds.

Dale Henderson: We're doing spot sales. As to the question of why pursue these offtakes with floor prices? Well, the answer there is we get the benefit of both worlds. We get the downside protection care of a price floor plus a form of security with uncapped upside. As pricing moves in the market, which is fueled by spot sales and price discovery, et cetera, that flows through to the indices and ultimately those indices flow through to our pricing mechanisms, these offtakes. So in that respect, we get the best of both in that regard.

Speaker #2: We get the downside protection here of a price floor, plus a form of security, with uncapped upside. So as pricing moves in the market, which is fueled by spot sales and price discovery, etc., etc., that flows through to the indices, and ultimately those indices flow through to our pricing mechanisms.

Speaker #2: These off-takes. So, in that respect, we get the best of both in that regard.

Speaker #1: Okay. Last question online. Can you please elaborate on the impact of data center growth in Australia or globally on your business in the medium and near term?

[Company Representative] (PLS): Okay. Last question online. Can you please elaborate on the impact of data centers growth in Australia or globally on your business in the medium and near term?

James Fuller: Okay. Last question online. Can you please elaborate on the impact of data centers growth in Australia or globally on your business in the medium and near term?

Speaker #2: Yeah, so the data center growth is pretty extraordinary—of course, supporting AI and other needs. Speaking to others who are close to the sector, what they've explained to me is they call it the 'five nines' of reliability.

Dale Henderson: Yeah. The data center growth is pretty extraordinary, of course, supporting AI and other needs. Speaking to others who are close to the sector, what they have explained to me is they call it the five nines of reliability, where these data centers require 99.99959, 99.9999% reliability. In order to achieve that, they are adding batteries. That is fantastic. It is another demand set for lithium, and of course, that is being drawn. It is essentially a whole new demand vector along with ESS, EVs, e-mobility, and the rest. We welcome it. More lithium. We like the sound of that. All right. We are over time. Thank you all for dialing in today and for your questions. Thank you all, and thank you particularly for our shareholders for supporting PLS. The year which was an incredible year for PLS.

Speaker #2: These data centers require 99.999 (five nines) reliability—99.999% reliability. So, in order to achieve that, they're adding batteries. That's fantastic; it's another demand set for lithium.

Speaker #2: And of course, that's essentially being drawn as a whole new demand vector, along with ESS, EVs, e-mobility, and the rest. So, we welcome it—more lithium.

Speaker #2: We like the sound of that. All right, we're over time. Thank you all for dialing in today and for your questions. And thank you all.

Speaker #2: And thank you particularly to our shareholders for supporting PLS. The year which followed was an incredible year for PLS: record sales, record production, a 9% reduction in unit cost—all timed with an inflection in the market, which has flowed through to strong lift in revenues and impact.

Dale Henderson: Record sales, record production, a 9% reduction in unit cost all time with an inflection in the market, which has flowed through to strong lifts in revenues and NPAT. Here we are atop of a very strong balance sheet, eyes focused on making the most of this incredible market ahead of us. Thank you all for your time today.

Speaker #2: And here we are, on top of a very strong balance sheet, eyes focused on making the most of this incredible market ahead of us.

Speaker #2: Thank you all for your time today.

Operator: Concludes today's conference call. Thank you for participating, and you may now disconnect. Everyone, have a great day.

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