Full Year 2026 South32 Ltd Earnings Call - UK/South Africa
Speaker #2: Thank you for standing by, and welcome to the South32 2026 full-year results investor and analyst conference call. All participants are in a listen-only mode.
Operator 2: Thank you for standing by, and welcome to the South32 2026 full year results investor and analyst conference call. All participants are in a listen-only mode. Today's call will begin with opening remarks from South32 CEO, Matt Daley, followed by a question and answer session. If you would like to ask a question, please press star followed by the number one on your telephone keypad. I will now hand over to Matt Daley, CEO. Please go ahead.
Speaker #2: Today's call will begin with opening remarks from South32 CEO Matt Daly, followed by a question-and-answer session. If you would like to ask a question, please press star, followed by the number 1, on your telephone keypad.
Speaker #2: I will now hand over to Matt Daly, CEO. Please go ahead.
Speaker #3: Thanks, Kaylee, and hello everyone. Thanks for joining us today as we discuss our financial results for FY26. On the call today with me is Sandy, our Chief Financial Officer.
Matt Daley: Thanks, Kaylee, and hello, everyone. Thanks for joining us today as we discuss our financial results for FY26. On the call today with me is Sandy, our Chief Financial Officer. It's a really exciting time for our business, with our positive operating performance and repositioning to base metals driving strong financial results. There's a clear pathway to substantial value accretive growth in copper and zinc, with 55% production growth expected from projects under construction or approved, and a pipeline of growth and life extension options beyond this that can drive further value and returns for our shareholders. Before I run through our financial results, I just want to take a moment to speak about safety. The most important measure of our success as a company is the safety of our people. In FY26, we didn't live up to the expectations that we set for ourselves.
Speaker #3: These are really exciting times for our business, with our positive operating performance and our repositioning to base metals driving strong financial results. We have a clear pathway to substantial, value-accretive growth in copper and zinc, with 55% production growth expected from projects under construction or approved, and a pipeline of growth and life extension options beyond this that can drive further value and returns for our shareholders.
Speaker #3: Before I run through our financial results, I just want to take a moment to speak about safety. The most important measure of our success as a company is the safety of our people.
Speaker #3: And FY26, we didn't live up to the expectations that we set for ourselves. The death of our colleague, Simon, in an incident was in the alumina.
Matt Daley: The death of our colleague, Simon, in an incident at Worsley Alumina in March 2026, had a really profound impact on everyone at South32, particularly our people at Worsley. Simon's family, friends, and colleagues remain in our thoughts. We have taken steps to further enhance awareness at Worsley existing procedures and controls for working at heights, and we continue to look for opportunities to design tasks in a way that eliminates or reduce fall from height risks. As South32 CEO, I'm unwavering in my commitment to a workplace free from fatalities. Turning to our financial results, our base metals business drove strong earnings and cash flow, with strong operating performance enabling us to capture the benefit of commodity price tailwinds, while active cost management mitigated the impact of our industry-wide inflationary pressures.
Speaker #3: In March 2026, it had a really profound impact on everyone at South32, particularly our people at Worsley. Simon's family, friends, and colleagues remain in our thoughts.
Speaker #3: We've taken steps to further enhance awareness at Worsley of existing procedures and controls for working at heights. We continue to look for opportunities to design tasks in a way that eliminates or reduces fall-from-height risks.
Speaker #3: As South32 CEO, I'm unwavering in my commitment to a workplace free from fatalities. Returning to our financial results, our base metals business drove strong earnings and cash flow, with strong operating performance enabling us to capture the benefit of commodity price tailwinds.
Speaker #3: While active cost management mitigated the impact of our industry-wide inflationary pressures, group underlying EBITDA increased by 28% to US$2.5 billion, and underlying earnings increased by 55% to US$1 billion.
Matt Daley: Group underlying EBITDA increased by 28% to US$2.5 billion and underlying earnings increased by 55% to $1 billion. Group cash flow from operations increased by $352 million to $610 million, after investing $700 million to grow future base metals production from Hermosa. Our balance sheet remains strong with net cash of $283 million after returning $327 million to shareholders during the period. Reflecting our strong financial performance and disciplined approach to capital allocation, the board has today resolved to pay a fully franked ordinary dividend of 5.4 cents per share, or $242 million in respect of the June 2026 half year. We have also extended our capital management program to September 2027, with $209 million remaining to be returned to shareholders.
Speaker #3: Group cash flow from operations increased by $352 million to $610 million, after investing $700 million to grow future base metals production from Mimosa. Our balance sheet remains strong, with net cash of $283 million, after returning $327 million to shareholders during the period.
Speaker #3: Reflecting our strong financial performance and disciplined approach to capital allocation, the board today resolved to pay a fully-franked ordinary dividend of 5.4 cents per share, with $242 million in respect of the June 2026 half-year.
Speaker #3: We've also extended our capital management program to September 2027, with $209 million remaining to be returned to shareholders. On the 1st of July, we announced the sale of our aluminium value chain assets to our COA for an enterprise value of up to $5.6 billion, plus the assumption of related rehabilitation provisions of over $1 billion.
Matt Daley: On 1 July, we announced the sale of our Aluminum Value Chain assets to Alcoa for an enterprise value up to $5.6 billion, plus the assumption of related rehabilitation provisions of over $1 billion. The transaction will unlock significant value for shareholders and reposition South32 as the leading base metals company on the ASX. We have high-margin assets in tier 1 jurisdictions, a transformational growth pipeline, and a strong balance sheet to deliver this growth and shareholder returns. We are working with Alcoa and other stakeholders to satisfy the conditions for the transaction, with expected completion in the second half of FY27. Looking forward to FY27, we are progressing a pipeline of projects under construction, approved, and in study phases that are expected to substantially grow our base metals production.
Speaker #3: The transaction will unlock significant value for shareholders and reposition South32 as the leading base metals company on the ASX. We've got high-margin assets in tier one jurisdictions.
Speaker #3: The transformational growth pipeline and a strong balance sheet will deliver this growth and shareholder returns. We're working with our COA and other stakeholders to satisfy the conditions for the transaction, with expected completion in the second half of FY27.
Speaker #3: Looking ahead to FY27, we're progressing a pipeline of projects—under construction, approved, and in study phases—that are expected to substantially grow our base metals production.
Speaker #3: At Sierra Gorda, this week we announced a 61% increase in the ore reserve to 1.1 billion tons. That's an extension of the initial reserve life by approximately five years, to 19 years—which just highlights the scale, the quality, and the long life of the ore body at Sierra Gorda, which is still open at depth.
Matt Daley: At Sierra Gorda, this week we announced a 61% increase in the ore reserve to 1.1 billion tonnes, an extension of the initial reserve life by approximately five years to 19 years, which just highlights the scale, the quality, and the long life ore body at Sierra Gorda, which is still open at depth. Sierra Gorda is expected to deliver production growth of 5% in FY27 and a further 2% in FY28, supported by higher planned copper grades. Beyond this, the recent approved fourth grinding line project is expected to increase production by approximately 30% from FY31. At Cannington, we have upgraded expected ore processed with the inclusion of our low-grade stockpile material to utilize available plant capacity. Life extension work from both underground and open pit sources is continuing, with the open pit development option offering the potential for further ore feed and life extension of the complex.
Speaker #3: Sierra Gorda is expected to deliver production growth of 5% in FY27 and a further 2% in FY28, supported by higher planned copper grades. Beyond this, the recently approved forced grinding line project is expected to increase production by approximately 30% from FY31.
Speaker #3: At Cunnington, we've upgraded expected oil processed with the inclusion of a load of our low-grade stockpile material, to utilize available plant capacity. Life extension work from both the underground and open-pit sources is continuing, with the open-pit development option offering the potential for further oil feed and life extension at the complex.
Speaker #3: At Hermosa, we are focused on delivering our large-scale, long-life Taylor zinc-lead-silver project. The work at the ventilation shaft is advancing really well and in line with our recent project update.
Matt Daley: At Hermosa, we are focused on delivering our large-scale, long-life Taylor zinc-lead-silver project. Sinking of the ventilation shaft is advancing really well and in line with our recent project update, and key processing infrastructure such as the primary and secondary mills, the flotation cells, have now all been installed. Once completed, Taylor is expected to deliver attractive financial returns for decades to come and support further growth phases at Hermosa. This includes Peak, where exploration and study work is continuing to support the potential for future copper production with an integrated development with Taylor. We are also progressing an exciting portfolio of exploration options in base metals. Ambler Metals boasts district-scale exploration potential in Alaska's unexplored and highly prospective Ambler mining district, where our summer fieldwork season is currently underway, following progress on permitting and stakeholder support for the Ambler access road.
Speaker #3: And key processing infrastructure, such as the primary and secondary mills and the flotation cells, have now all been installed. Once completed, Taylor is expected to deliver attractive financial returns for decades to come and support further growth phases at Hermosa.
Speaker #3: This includes PEAK, where exploration and study work is continuing to support the potential for future copper production with an integrated development with Taylor. We're also progressing an exciting portfolio of exploration options in base metals.
Speaker #3: Ambla Base Metals boasts district-scale exploration potential in Alaska's unexplored and highly prospective Ambla mining district, where our summer fieldwork season is currently underway. This follows progress on permitting and stakeholder support for the Ambla access road.
Speaker #3: This really paves the way to unlock value from Ambla's high-grade copper and zinc options. So, in closing, our operations are performing really well. We're generating strong cash flow to underpin our base metals growth and shareholder returns.
Matt Daley: This really paves the way to unlock value from Ambler's high-grade copper and zinc options. In closing, our operations are performing really well. We are generating strong cash flow to underpin our base metals growth and shareholder returns. The sale of the Aluminum Value Chain business will reposition South32 as a simpler, higher-margin business with a strong balance sheet and peer-leading growth, making South32 a leading base metals exposure for investors. I am going to pause there. I am happy to take any questions.
Speaker #3: The sale of the aluminium value chain business will reposition South32 as a simpler, higher-margin business with a strong balance sheet and peer-leading growth.
Speaker #3: Making South32 a leading base metals exposure for investors. I'm going to pause there, and I'm happy to take any questions.
Speaker #1: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two.
Operator 2: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. Your first question comes from Ian Rossall with Barclays.
Speaker #1: If you're on a speakerphone, please pick up the handset to ask your question. Your first question comes from Ian Russell with Barclays.
Speaker #4: Morning, Matt and team. First question, just on Hermosa obviously with the sort of capex and timeline reset you've announced earlier this year. Just curious to hear how that project is progressing, specifically on the, I guess, cycle times from the contractor shaft sinking and I guess just how you're tracking to the sort of budgets and how much of the contingency or if there has been any sort of consumption of that, just keen to get an update on that, please.
Ian Rossall: Morning, Matt and team. First question, just on Hermosa, obviously, with the CapEx and timeline reset you have announced earlier this year, just curious to hear how that project is progressing specifically on the, I guess, cycle times from the contractor shaft sinking, and I guess just how you are tracking to the budgets and how much of the contingency, or if there has been any consumption of that. Just keen to get an update on that, please.
Speaker #3: Yeah, thanks, Ian. Thanks for the question. Good to hear from you. So, Hermosa's progressing really well. The shafts are on track with our updated schedule.
Matt Daley: Yeah. Thanks, Ian. Thanks for the question, and good to hear from you. Hermosa's progressing really well. The shafts are on track with our updated schedule. We are getting very close to the bottom of the ventilation shaft, and in the next couple of months it will be at shaft bottom. The main shaft's actually tracking the vent shaft now really well as well. Decline extension into Taylor ore body is progressing to plan, and of course, that allows us that early access to ore that's really important. As I mentioned in my opening comments, the surface infrastructure's all coming out of the ground well. Mills are in place, float cells are now in place, and substations, which is really important in the context of the build-out of infrastructure in the US.
Speaker #3: We are getting very close to the bottom of the ventilation shaft, and in the next couple of months it’ll be at shaft bottom. The main shaft is actually tracking the vent shaft really well as well.
Speaker #3: Decline extension into Taylor All Body is progressing to plan, and of course, that allows us that early access to ore, which is really important. And as I mentioned in my opening comments, the surface infrastructure is all coming out of the ground well.
Speaker #3: Mills are in place. Float cells are now in place. And substations, which is really important in the context of the build-out of infrastructure in the US.
Speaker #3: Five out of the six substations are now installed, including the major substation that allows us to bring primary grid power into the project. In terms of contingency, it's still all intact as we stand here today.
Matt Daley: Five out of the six substations are now installed, including the major substation that allows us to bring primary grid power into the project. In terms of contingency, it is still all intact as we stand here today. It has only been three or four months since the project update, but very happy to say that it is all intact and very much looking forward to taking yourself, Ian, and other of our investors and shareholders on a site tour in September, where we can show you all the great progress that we have been making.
Speaker #3: It's only been three or four months since the project update, but I'm very happy to say that it's all intact, and I'm very much looking forward to taking you and our other investors and shareholders on a site tour in September, where we can show you all the great progress that we've been making.
Speaker #4: Great. Thank you. And then just to follow up on Cunnington, obviously you've talked on the overnight call about the low-grade stockpiles at Cunnington and could you maybe just give us a sense of what's the differential in the grade of the stockpiles versus what you might to get a sense and just how we should think about the proportions as you I guess you mentioned sort of trying to push above the 2.1 over the medium term and how that proportion from the stockpiles will change.
Ian Rossall: Great. Thank you. Just a follow-up on Cannington. Obviously, you have talked on the overnight call about the low-grade stockpiles at Cannington. Could you maybe just give us a sense of what is the differential in the grade of the stockpiles versus what you mine, to get a sense, and just how we should think about the proportions as you, I guess, you mentioned sort of trying to push above the 2.1 over the medium term and how that proportion from the stockpiles will change.
Speaker #3: Yeah, thanks. Thanks, Ian. So we put around 200,000 tons of low-grade stockpiles through the plant last year. We really saw that as a test.
Matt Daley: Yeah. Thanks, Ian. We did around 200,000 tonnes of low-grade stockpile through the plant last year. We really saw that as a test and some of the key things we were checking for is how recoveries were through the plant and how it interacted with our paste fill system. So we built confidence through that test work. It gave us confidence to, again, put that into this year's guidance. It is performing really well. We potentially have some upside. As we have talked around the past, we have a plant there that has done historically up to 3 million tonne. We have got a guide of around 2.1. So there is some potential to push more through, and we will continue to update the market as we progress.
Speaker #3: Some of the key things we were checking for included how recoveries were performing through the plant and how it interacted with our paste fill system.
Speaker #3: So we built confidence through that test work. It gave us confidence to, again, put that into this year's guidance. It's performing really well. We potentially have some upside, as we've talked about in the past.
Speaker #3: We have a plant there that's historically done up to 3 million tons. We've got a guide of around 2.1, so there is some potential to push more through.
Speaker #3: And we'll continue to update the market as we progress. In terms of the grades, the ratio is probably about 2 or 2.5 to 1.
Matt Daley: In terms of the grades, the ratio is probably about two and a half to one, so the grade is quite variable given that it is a historical stockpile. So, preferentially, we are always going to put the underground material through the plant. But where we have opportunities, it has already been mined, it has already been paid for, sitting very close to the existing crusher. So it is just the cost to transport it and then push it through the mill. So that is how we are thinking about it for this year.
Speaker #3: So, the grade is quite variable given it is a historical stockpile. So, preferentially, we're always going to put the underground material through the plant.
Speaker #3: But where we have opportunities, this is—it's already been mined, it's already been paid for, sitting very close to the existing crusher. So it's just the cost of transport, and then push it through the mill.
Speaker #3: So that's how we're thinking about it for this year.
Speaker #4: Brilliant. All right, thanks. That's all from me.
Ian Rossall: Brilliant. All right. Thanks. That is all from me.
Speaker #3: Thanks, Ian.
Matt Daley: Thanks, Ian.
Speaker #1: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. There are no further questions at this time.
Operator 2: Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. There are no further questions at this time. I will now hand back to Matt Daley for closing. Pardon me, we do have a question from Tim Clark with SBG Securities.
Speaker #1: I'll now hand back to Matt Daly for closing—pardon me, we do have a question from Tim Clark with SBG Securities.
Speaker #4: Hi there, thanks. Good morning. Just one or two quick questions from me. Firstly, on the new capital allocation framework, I was interested to understand your thoughts on franking credits and the thinking on growth.
Tim Clark: Hi there. Thanks. Good morning. Just one or two quick questions from me. Just first of all, on the new capital allocation framework. I suppose I was interested to understand how franking credits and the transformation of the portfolio comes into the thinking on growth and dividends. Perhaps just maybe if we can get a little bit of color on that, Sandy, it would be really helpful. Then just a second one, have you given us the amount of cash that is sitting in the lockbox as we run towards the end of this deal? Sorry, I might have missed it in the details and I did not see it in the main announcement. Have you given us that lockbox number? Thank you.
Speaker #4: And dividends. So perhaps, just maybe, if we can get a little bit of color on that, Sandy, it would be really helpful. And then just a second one—have you given us the amount of cash that's sitting in the lockbox as we run towards the end of this deal?
Speaker #4: Sorry, I might have missed it in the details, and I didn't see it in the main announcement. Have you given us that lockbox number?
Speaker #4: Thank you.
Speaker #2: Yeah, my answer to the second part of that first, which is we have provided an update on the lockbox to 30 June, and that was around $100 million.
Sandy Sibenaler: Yeah, I might answer the second part of that first, which is we have provided an update on the lockbox to 30 June, and that was around $100 million that is sitting in the lockbox, representing that deal value through to 30 June. The first part of the question, I think they are just relating to the capital management framework. The current capital management framework will remain on foot until deal completion. You will see a 40% payout of our underlying earnings, which includes those earnings from the Aluminum Value Chain right through until completion. That is perhaps just the first point to make. Then post-completion, we will look at that transition on the capital management framework.
Speaker #2: That's sitting in the lockbox representing that deal value through to 30 June. And the first part of the question—I think they're just relating to the capital management framework.
Speaker #2: So the current capital management framework will remain in place until deal completion. So you will see a 40% payout of our underlying earnings, which includes those earnings from the aluminium value chain, right through until completion.
Speaker #2: So that's perhaps just the first point to make. And then, post-completion, we'll look at that transition on the capital management framework. Of course, you can hear from the conversations in the presentation, we are shifting the capital management framework to be more in line with the business.
Sandy Sibenaler: Of course, you can hear from the conversations in the presentation, we are shifting the capital management framework to be more in line with the business we will be on the other side of the transaction, with a bigger focus on growth going forward. Certainly still maintaining safe and reliable operations capital, a strong balance sheet. But you will see our committed growth project sitting next as the stack. That is Taylor fourth grinding line for now, and then more opportunities as they mature. Then really seeing that competition for excess capital sitting above that, including dividends, acquisitions, and other shareholder returns. Really seeing the shift in the capital management framework in line with the shift in our underlying business. As to the dividends and franking credit balance, we certainly recognize the value of dividends and of course franking credits to the Australian investors in particular.
Speaker #2: We'll be on the other side of the transaction, with a bigger focus on growth going forward. Certainly still maintaining safe and reliable operations, capital, and a strong balance sheet. But you will see our committed growth projects sitting next in the stack.
Speaker #2: So that's Taylor, fourth grinding line for now, and then more opportunities as they mature. And then really seeing that competition for excess capital sitting above that, including dividends, acquisitions, and other shareholder returns.
Speaker #2: So, we're really seeing the shift in the capital management framework in line with the shift in our underlying business. As to the dividends and franking credit balance, we certainly recognize the value of dividends—and of course franking credits—to Australian investors in particular.
Speaker #2: We do have a $1.6 billion balance there on franking credits. Some of that will be distributed as part of the upfront distribution of Alcoa stock, which we'll be doing by way of an in-specie distribution of half of that, fully franked.
Sandy Sibenaler: We do have a $1.6 billion balance there on franking credits. Some of that will be distributed as part of the upfront distribution of Alcoa stock, which we will be doing by way of an in specie distribution of half of that, fully franked. That will be one way in which we will be distributing that and obviously shareholders taking value from that. Of course, future dividends, we would look to frank as appropriate, going forward as well.
Speaker #2: And so, that will be one way in which we'll be distributing that, and obviously, shareholders taking value from that. Of course, future dividends we'd look to frank as appropriate, going forward as well.
Speaker #4: Okay, super. Thanks, Sandy. Just while I've got the mic, if there aren't other questions, may I just ask on Gemco, on Credit Alan, just for a little bit of color, if you could give it to us on water.
Tim Clark: Okay, super. Thanks, Sandy. Just while I have got the mic, as there are not other questions, may I just ask on GEMCO, on Groote Eylandt, just a little bit of color if you could give it to us on water, just in terms of dewatering and what you need to do to achieve that, what the sort of parameters are to advance some of that dewatering. Then maybe if we could just sort of ask on life there, presumably the reserves are sort of finalized now going into the year-end, and just how much life there is that is fairly easy to get out of some of the leases. What you would be modeling if you were us on life of mine with existing capital installed?
Speaker #4: Just in terms of dewatering and what you need to do to achieve that, what are the parameters to advance some of that dewatering?
Speaker #4: And then maybe if we could just sort of ask on life there—presumably, the reserves are sort of finalized now going into the year-end.
Speaker #4: And just how much life there is that's fairly easy to get out of some of the leases. What we should—what you would be modeling if you were us on life of mine, with existing capital installed?
Speaker #3: Yeah, thanks, Tim. Good question. So, the operations up there have actually started pretty well this financial year, but we are in the dry season, and it's important to recognize that.
Matt Daley: Yeah. Thanks, Tim. Good question. The operations up there have actually started pretty well this financial year, but we are in the dry season, and it is important to recognize that. And we have guided a range because of the uncertainty that sits around water and weather coming into the next wet season. So we have had a couple of years of cyclones and very high rainfall. That has certainly limited access to mining areas. So in response to this, right now, we are working with both the Northern Territory Government and traditional owners to get a number of different permits in place that allow us to discharge larger volumes of water through a number of different mechanisms, and we will continue to update on a quarterly basis how this is progressing.
Speaker #3: And we've guided a range because of the uncertainty that sits around water and weather coming into the next wet season. So, we've had a couple of years of cyclones and very high rainfall.
Speaker #3: That's certainly limited access to mining areas. So, in response to this, right now we're working with both the NT government and traditional owners to get a number of different permits in place to allow us to discharge larger volumes of water through a number of different mechanisms. We will continue to update on a quarterly basis how this is progressing.
Speaker #3: The kind of capital works we're looking at doing is mainly around additional pipe installations that allow us to move volume from different parts of the operation. The lease NT Government has been giving us great support, but the reality is that some of these processes do take time, and hence we've got that range in our guidance.
Matt Daley: The kind of capital works we are looking at doing is mainly around additional pipe installations that allows us to move volume from different parts of the operating lease. The Northern Territory Government has been giving us great support, but the reality is that some of these processes do take time, and hence we have got that range in our guidance. In terms of the life of mine, at the moment, we have a life of mine of about 6 years out to 2033 at the current mining rates. There is potential, and the team is looking at that potential right now, actually, in terms of the northern leases and options to the east and south. The north requires us to do some early exploration work. It is very shallow ore body, so it is not like exploration work in a big copper mine.
Speaker #3: In terms of the life of mine at the moment, we have a life of mine of about six years, out to 2033 at the current mining rates.
Speaker #3: There is potential, and the team's looking at that potential right now, actually, in terms of the northern leases and options to the east and south.
Speaker #3: The north requires us to do some early exploration work. It's a very shallow ore body, so it's not like exploration work in a big copper mine.
Speaker #3: That said, at the moment, our life-of-mine is just modelled out to 2033.
Matt Daley: That said, at the moment, our life of mine is just modeled out to 2033.
Speaker #4: Thanks, Matt. That's really helpful. Thank you so much.
Tim Clark: Thanks, Matt. That is really helpful. Thanks so much.
Speaker #3: Thanks, Tim.
Matt Daley: Thanks, Tim.
Speaker #1: Your next question is from Ian Rassau with Barclays.
Operator 2: Your next question is from Ian Rossall with Barclays.
Speaker #4: Hi, thanks. Just wanted to follow up on a question from Tim. Sandy, you mentioned the lockbox contains about $100 million. I was just curious, Alcoa was saying on their Q2 conference call they’re estimating it to be over $200 million.
Ian Rossall: Hi. Thanks. Just wanted to follow up on the question from Tim. Sandy, you mentioned the lockbox contains about $100 million. I was just curious, Alcoa was saying on their Q2 conference call, they were estimating it to be over 200. Just curious, what could be the cause for that delta?
Speaker #4: So, just curious, what could be the cause for that delta?
Speaker #2: Yeah, I mean, obviously Dorian would have access to their modeling, but I would suggest it could just be to do with the tax overlay on the profits from Hillside.
Sandy Sibenaler: Yeah. We obviously don't have access to their modeling, but I would suggest it could just be to do with the tax overlay on the profits from Hillside, would be something that would be akin to that value difference there, Ian.
Speaker #2: That would be something similar to the value difference in that area.
Speaker #4: Okay. All right. Thank you very much.
Ian Rossall: Okay. All right. Thank you very much.
Speaker #1: There are no further questions at this time. I'll now hand back to Matt Daley for closing remarks.
Operator 2: There are no further questions at this time. I will now hand back to Matt Daley for closing remarks.
Speaker #3: Thank you, Kaylee. I just want to thank everyone for joining the call today and for all the questions. We're really pleased with our results for FY26. FY27 is off to a good start, and we're taking that momentum from last year.
Matt Daley: Thank you, Kaylee. I just want to thank everyone for joining the call today and for all the questions. We are really pleased with our results for FY26. FY27 is off to a good start, and we are taking that momentum from last year into this year, as we really focus on delivery from our existing operations, and then our really exciting growth portfolio across Hermosa, Sierra Gorda, and life extension at Cannington. Thanks again for everyone for joining. We will leave it there.
Speaker #3: Into this year is really focused on delivery from our existing operations and then our really exciting growth portfolio across Ambrosia, Sierra Gorda, and life extension at Cannington.
Speaker #3: So, thanks again to everyone for joining. We'll leave it there.
Operator 2: That does conclude our conference for today. Thank you for participating. You may now disconnect.
