Operator: Thank you for standing by, and welcome to the Sandfire Resources December 2025 Quarterly Report. [Operator Instructions] I would now like to hand the conference over to Mr. Brendan Harris, Chief Executive Officer and Managing Director.
Brendan Harris: Good morning, everyone, and welcome to our quarterly call. Our executive team is here with me today for the Q&A as always. But before we start, I'd like to acknowledge the traditional custodians of the land on which we stand, the Whadjuk People of the Noongar Nation as well as the First Nations peoples of the lands on which Sandfire conducts its business. We pay our respects to their elders and leaders, past, present and emerging. I'd also like to acknowledge that today's National Day of Mourning in Australia for the victims of the Bondi Beach terrorist attack. Our thoughts and prayers are also with our Spanish team and the local community following the tragic train accident that occurred when 2 trains collided between Madrid and Huelva on Sunday. As we always do, let's start with safety. We finished the period with a group TRIF of 1.3, down from the 1.4 reported at the end of September. While a pleasing outcome, we must continue to learn from every injury and high potential incident to further raise awareness of the risks in our workplace and strengthen our control environment. More broadly, in the first half of the year, group copper equivalent production of 72,100 tonnes, representing 46% of the midpoint of our unchanged annual guidance range of 157,000 tonnes with volumes now expected to be incrementally more weighted to the second half. All other key annual guidance metrics such as underlying operating costs and capital expenditure remain unchanged. Notwithstanding I might add the significant benefit we're now seeing flow through to our C1 costs from the sharp increase in byproduct prices. Of course, this outlook reflects a strong forecast improvement in performance at Motheo in the second half, which I know Jason is looking forward to discussing with you. Having been forced to bring forward and complete planned maintenance ahead of schedule following the premature failure of an OEM specification grade in the SAG mill, we expect an uplift in Motheo throughput rate in the second half. While the improvement plan that our team and key contractor have in place is expected to deliver an increase in the availability of mobile fleet servicing our open-pit mines. This will, of course, support the transition into higher-grade ore at both T3 and A4, which has been further derisked by the early completion of the dewatering program that followed the extreme weather event of FY '25 and our decision to fast track the relocation of mobile equipment to A4 in the first half to ramp up deferred waste stripping. We believe this decision has also derisked our plans for FY '27, recognizing the importance of A4 and its higher-grade ore. I should also note that all ore mined at A4 during the second quarter was stockpiled adjacent to the pit with the delivery of its high-grade ore to the processing facilities ROM stockpile only now ramping up. Collectively, it's these key drivers that underpin our confidence in the 61,000 tonnes of copper equivalent production forecast for Motheo in FY '26. When thinking about cash flow and costs, you may have also noticed that only 3 concentrate shipments sailed from Walvis Bay in the second quarter with the planned fourth shipment having since departed in early January. Turning to MATSA. Its first half was far less eventful as the complex delivered copper equivalent production of 46,400 tonnes, representing 48% of the midpoint of its annual guidance range. This robust start to the year was underpinned by an increase in higher-grade polymetallic ore feed in the second quarter, which coincided with an improvement in flotation recoveries. An incremental uplift in metal production is expected at MATSA in the second half with a further increase in high-value polymetallic ore being mined within the Western extension of Aguas Teñidas. More broadly, we pride ourselves on getting the basics right and ensuring our operational teams are not distracted. In this context, I'm pleased to say that our underlying operating costs at both MATSA and Motheo remain, yet again, well aligned with annual guidance at $87 and $43 per tonne of ore processed, respectively. And as we've said before, we expect the UOC at Motheo to increase slightly in the second half as the proportion of higher-grade A4 ore feed rises given additional haulage and handling requirements. From a strategic perspective, we invested $5 million in regional and another $5 million in near mine and extension exploration programs in the Iberian Pyrite and Kalahari Copper Belts, and we expect our investment in regional exploration in the Motheo hub to accelerate following the recommencement of drilling activity in December 2025. During the quarter, we also signed a binding term sheet with Havilah Resources that provides a pathway to earn an 80% interest in the Kalkaroo copper-gold project and establish a strategic alliance to explore the highly prospective Curnamona Province in South Australia. These agreements create a wonderful opportunity to replicate our successful entry into the Kalahari Copper Belts. And since announcing the transaction, I'm also pleased to say we've made strong progress working with the Havilah team to advance the definitive transaction agreements ahead of their shareholder vote scheduled for the 6th of February. That brings me to the fully permitted Black Butte project. The recently announced results of the prefeasibility study for the Johnny Lee deposit and updated Mineral Resources estimate for Lowry confirmed the economic case for the development of a high-grade underground mine underpinned by a leading approach to sustainable mining practices. Importantly, this study, which derived post-tax NPV of circa $100 million at a copper price significantly lower than spot, only considered the Johnny Lee deposit with the satellite Lowry deposit, which would be accessed, I might add, from the same decline, providing a low-risk and low capital cost opportunity to materially extend mine life. As flagged, we've since commenced a review of the project's fit within the group's global portfolio, which will primarily consider the materiality of the opportunity within the context of Sandfire's own significant growth since the group made its original investment in the project in FY '15. So bringing this together, we have the talented people with proven exploration, operating and development credentials. We have high-quality operations. We're producing a preferred suite of commodities, and we're in a strong financial position. We generated unaudited group sales revenue of $344 million for underlying EBITDA of $167 million in the December quarter at a margin of just under 50%. And having achieved our targeted balance sheet position with net cash of $13 million at 31 December, we're perfectly positioned to fund the various commitments associated with our planned move into South Australia, including the AUD 31.5 million cash payment payable upon satisfaction of all conditions precedent and initial AUD 15 million cash payment that will kick start the proposed exploration strategic alliance with Havilah. It is an exciting time for our company. Let's go to questions. Thank you.
Operator: [Operator Instructions] The first question comes from Levi Spry with UBS.
Levi Spry: Straight on to the Black Butte news. So can you expand a little on the considerations here? So maybe some goalposts around hurdles, timing of these processes that are underway?
Brendan Harris: Look, thanks, Levi, and happy new year to you and everyone on the call. I think the critical message that we want to get across here is that as we'd expected, the prefeasibility study, again, which doesn't contemplate Lowry, but of course, when we think about the project, it's pivotal to the NPV certainly showed a strong economic case. An economic case that if you start to build in prices that some of the market commentators are referring to shows the leverage of this project, given its scale and given its grade. And I also note, it's a fully permitted project. But you'll notice the reference that I made to the review. And I've talked about the fact that we would undertake such a review for many months as we approach the completion of the PFS. That review is primarily considering the entry and the logic venturing North America, building a project in North America, given the scale of the opportunity in reference to Sandfire's own at scale, recognizing the growth of the company in recent times and hence, the reference to materiality. We are absolutely convinced that this is a project that will get built. With regards to the timing, I don't want to go into the elements too much. I'm very respectful of the fact as I need to be that we are an 87% shareholder in a publicly listed company. And so having now formally confirmed that we are undertaking that assessment, I'm not going to go too much further other than to imagine we look at all alternatives with respect to the future. And what I would like to add, however, is I would expect that by the time we report our financial results for the full year, so circa August, that we will certainly be in a position to provide much more clarity in respect of that process. Thanks, Levi.
Levi Spry: Yes, good. And so just one more on that, though. So just so I understand the impact -- potential impact of Lowry, like what sort of quantum could it have on the 30-odd tonnes of production?
Brendan Harris: So it's not so much a capacity issue. I think we've mentioned a few times in the past. This is a fully permitted project. And I think it's fair to say that that's been a healthy but onerous process. I don't think anyone is contemplating changing the configuration with respect to the project that would necessitate different approvals. It's really around life extension, Levi, remembering that the initial life that's defined in the PFS is around 8 years. As I mentioned, Lowry is particularly interesting because it effectively is a continuation of the ore body, which really means its development across into another area of the ore body. And that comes at very, very low capital cost, particularly when you think that the plant and equipment will already be in place. So it wouldn't surprise you that the potential impact on net present value relative to the $100 million that was flagged in Sandfire America's release based on $4.70 a pound copper can increase significantly once that's taken into account. So I hope that helps.
Levi Spry: Yes. Got it. And last one. So net cash you've got there, what happens now? So there doesn't seem to be any material CapEx on the horizon. Kalkaroo is a little bit out. Maybe this is not there. So can you give us a bit of some goalposts around how you're thinking about that in the context of your franking credit balance?
Brendan Harris: Yes, sure. Levi, I think, first and foremost, no change to how we think. But I'll pass to Megan, and then I might just wrap up with a few thoughts.
Megan Jansen: Thanks, Brendan, and Levi. So yes, very pleasing with the net cash position we've reported unaudited of $13 million at the end of December. So we've managed to reduce net debt by $301 million over the past 12 months. And I think achieving the rapid degearing that we have, albeit in a generally slightly lower price environment than what we've seen in recent months. I think that's a real credit to our operations team and that continued disciplined approach. And so as you noted, yes, we've got that net cash number. Important to note that doesn't yet include upcoming payments in connection with the proposed transaction with Havilah. So AUD 31.5 million payment upon completion of the transaction and a further AUD 15 million payment in relation to the initial phase of the exploration strategic alliance. And I think no change in terms of what we said before in terms of our approach and returning excess cash to shareholders. But we've been very deliberate in framing that as only when we have cash on the books, i.e., not prospectively.
Brendan Harris: Yes. I think the one thing just to wrap that up, we've also said that we're not going to get to $1 of net cash and then distribute funds to move ourselves back into the negative side of the ledger. And as Megan said, I think, therefore, we just commend people to really take into account those commitments because effectively, they're just around the corner. Should conditions precedent be met on the 6th of February for the proposed Kalkaroo transaction, those payments come through. So we think about our net cash balance at 31 December very much in that context. Of course, as we look to the full year, if the prices are maintained as they are, and on that respect, your guess is as good as mine. We clearly find ourselves in a very, very strong net cash position and then that'd be obviously, I think, quite a different level of focus and discussion.
Operator: Your next question comes from Kaan Peker with RBC.
Kaan Peker: First question on Motheo. As you mentioned that weighting of 46-54. Just trying to understand the confidence around that and how that doesn't shift further to the right, particularly around Motheo and then the fleet availability, haulage intensity at A4. I know you mentioned the fast-tracking of mobile equipment. Maybe if you can provide a bit more on that. And then also the A4 mechanics, just the grade uplift into the second half and how quickly that feeds into the plant?
Brendan Harris: Yes. Thanks, Kaan, and I appreciate the question. I think perhaps before I hand to Jason, we recognize that mining has variability. And I've often talked about standard deviations, error bands and so on. We started the year circa 6 months ago, suggesting we'd have a ratio of 48:52. We're sitting here at 46:54. So we've seen an incremental shift in that. I think the difference here compared to prior years in the past is we probably had more to make up at MATSA, where, in some cases, in an underground mine, you typically have less degrees of freedom. This year, for the first time, Motheo has arguably had a softer start than we would have anticipated, but we understand why. And therefore, as I mentioned, we have a high degree of confidence in the outlook. Of course, assuming there's no other unintended outcomes last year, we, for instance, had a once in a 200-plus year rain event. So we're certainly assuming that doesn't repeat. But I think before I pass to Jason to talk about the confidence in the outlook, it's probably quite nuanced. But one of the things that's really important to understand that with the dewatering having been completed at A4 ahead of what we'd assume when we spoke to you last -- in the last quarterly update, we actually proactively moved fleet back towards A4 more quickly to derisk the outlook for A4 not only in the second half but into next year. It was subsequent to that, that we started seeing lower fleet availability at T3. And so in effect, that exacerbated the outcome because we've moved that fleet. Of course, we don't make decisions for the short term. We think about maximizing value and trying to derisk that outlook as much as we can. And so we make that decision every day of the week. And it has put us in a very good position but not only giving us confidence in the back end for A4 and increasing confidence, but I think more importantly, from my perspective, also setting us up very well for FY '27. So maybe, Jason, you can -- because I think the grades in the SAG mill are also worth mentioning because that's not -- we're not the only party to have been impacted by this, if you like, floor in the foundry and the casting process. And so I think it's worth touching on that and the fact that's behind us and some of the other elements as we look forward.
Jason Grace: Well, thanks, Kaan. And look, building on Brendan's commentary there as well. If we look at the last quarter, there's 2 key factors that really affected Motheo metal production. So Brendan touched on it there, we'll start with the grades. And if you look at the quarter, overall ore processed tonnes is about 7% below our 5% -- our 5.6 million tonne per annum annualized processing rate. So that's solely due to the premature wearing and -- of grades. Now we know that, that is related to our casting issue, right, related to OEM grades, which is supplied by the OEM. Now that OEM uses multiple foundries, right, to actually cast these grades. And during our routine inspections as we went through the quarter, we noticed that it was premature wear or accelerated wear in specific positions on each of the grades. So we could actually see lines running across the grades where we saw accelerated wear or additional wear through there as well. Once we started talking further with the OEM, they, as Brendan alluded to, had identified that the other customers had similar issues, and that related to a specific foundry. So they've informed us that they've stopped using that particular foundry. And the new grades that we now currently have in at the moment were actually cast by the original foundry that the OEM has been using in the long term, and they've had no issues with. So a short answer to that one is that issue is behind us. We've been working well with the OEMs. There were additional issues around -- so those grades were originally planned to be replaced in Q3. We've had to do that in Q2. But the time it took to actually replace those was probably about 3 days beyond what we had planned from the original shutdown for the purpose as well.
Brendan Harris: Mainly because you're forced to react. And as I understand it, Jason, just to be really clear, with the new grades in, you're now seeing good performance, very good performance. And I think the other critical issue there is that -- therefore, we're not only confident. We know it's not related to changing characteristics of the ore, grind, hardness, those features. It's a specific fault in the casting process associated with one specific foundry.
Jason Grace: Correct. And if you like, we took the opportunity during these shutdowns to do full mill relines. So where we are confident at the moment is that we are set up now to have a very strong ore processing performance there for the second half. So we've taken our major shut for the year, and that's behind us, and we've got a really good run throughout the remainder of FY '26. So if we look at the second key factor there, and that relates to lower grade presented to the plant and the root cause of that is lower fleet availability and particularly face positions that we achieved during the quarter related to overall mining performance. So if you look at it and where we are probably more sensitive to that in the last quarter than other times is that we're making a transition between Stage 2 and T3 and Stage 3 and T3, where the Stage 3 is currently taking over as being our major ore source coming out of T3, and at the same time, we're coming down on the ore body or the main part of the ore body at A4, right. Now if we look at fleet availability. So during the last -- probably the last 6 months, we've been undertaking or the contractor has been undertaking planned shutdowns, so midlife rebuilds on some of our key pieces of equipment and most notably on our trucks and drills. So if we look at it during the quarter, we had, during that time, 3 trucks out for most of the quarter, planned -- on planned downtime for engine replacements. So given the age of that equipment, they're hitting the -- about the middle of their life at the moment. So we do need to do that work. That work was known. But you put that in conjunction with our transition between Stage 2 and Stage 3, right? We are sensitive to impacts on face position. And if I direct everyone to Appendix A, you will note on there that we mined from T3 around about 700,000 tonnes of high-grade ore for the quarter, right, that relates to that transition. And hence, we're overall a lower grade or slightly lower grade than we expected for the quarter. Now looking forward. And now as I said, we've been working with the contractor on managing this period, which was known. We've had a very good response from the contractor. We've got very good attention. We have additional resources on site from both OEM and also elsewhere within the contractors group. And we're comfortable that the contract is making very good inroads. And particularly with our truck fleet, we're seeing significant improvements in that overall availability even as we speak now in January. So looking forward, there's no doubt that we'll come through this, and this is something that we've dealt with before with contractors. We're coming through this. And the other thing is that we have all of that ore and higher-grade ore sitting in Stage 3 and at A4 sitting in front of us for the rest of the year.
Brendan Harris: I think, Jason, maybe just last point. I think we probably labored the point a little too much perhaps between the 2 of us, but I just observed that this isn't the first time that we've had temporary issues with availability. I think I'm sure every mine you've worked in from time to time, you've got to shift focus and bring attention to bear. During commissioning, we had exactly this issue. The top levels of management of both companies got very much focused on it. And we very quickly managed to arrest it. And as Jason said, we have teeth in the contract such that if in the event that we don't get the natural uplift coming from, if you like, we'll call it an intervention, we actually can call on additional equipment at the contractor's cost. So it's -- we feel very confident that we have numerous ways to get to where we need to be, Kaan.
Kaan Peker: Very detailed. I appreciate it. Just on -- just one follow-up on that, the additional fleet that could be deployed at the contractor's cost. What's the trigger for that? And why can't that be used currently?
Brendan Harris: I'll pass to Jason because I'm sure he'd want to make a comment, but we have a very good relationship, and it is a partnership. So you don't do those things lightly. But it's important that we understand that those things can be done and would be done if it needed to. Jason?
Jason Grace: The trigger in that short answer to that, Kaan, is 3 months of underperformance below target in terms of total material moved. There are some other triggers in their result, but that's the one that's relevant for this. Yes.
Operator: Your next question comes from Paul Young with Goldman Sachs.
Paul Young: A really good summary on -- views on Black Butte and Motheo, so it answered most of my questions, but just -- not to labor on it, but just on the discharge grade at the SAG mill. Just Jason, were they originally from an OEM producing in China? Or are they from the traditional sort of German Scandinavian production facilities. Just trying to understand the quality and where that can happen again.
Jason Grace: Yes. It was from an OEM -- so we source them through the OEMs. So that foundry was outside of China. So we do make sure, particularly both of our sites that we don't cut corners in terms of quality on a lot of our key components. So short answer, the information that we received from the OEM was, however, was a new foundry that they had been using. So they had not been using that foundry longer term, and they've given us the feedback as well that they've since stopped using that foundry.
Paul Young: And then maybe switching to provisional pricing and hedging. I know you hedge your -- maybe a question to Megan. I know you hedge your QP tonnes that are outstanding. And hence, we don't see -- haven't seen the PP -- positive PP impact we're seeing for, say, per se, some of the larger copper producers globally. And I know you provided your historic QP hedging. Just curious around that -- I presume that program is continuing and you're hedging forward sales for this quarter and next quarter?
Brendan Harris: Yes. I think -- and I'll pass to Megan. But I think in simple terms, Paul, the way you should think about it is our team will sell a parcel of concentrate. And so that contained copper is priced, as you know, at a specific quotational price, whether that be N+1 to N+5 depending on the specific customer, timing and other circumstances. And what we do is then we make sure that we use the forward curve to effectively lock that in. So there is no risk of major working capital variations. And it works -- it actually works very well for us, and it was particularly important when the company was in a position where it was carrying significantly more debt. And maybe I'll just pass to Megan to explain how it really plays out in practice because the only differential, therefore, relates to the shape of the curve. And of course, in recent times, been pretty flat. Maybe to you, Megan.
Megan Jansen: Yes. Thanks, Paul. So Brendan described it perfectly well. So we need to continue with our QP hedging program. That's not before sales. It's only generally post the concentrate being loaded. And that's really just to protect on working capital volatility, such that we -- the price we invoice that provisionally is not at risk through to settlement of the shipment. So we will continue with that. As Brendan touched on, what that price looks like will be very much dependent upon the shape of the curve and the coincident settlement mark, N+1 or N+2, depending on how the contracts fall. In terms of the previous MATSA hedging program, which was in relation to forward sales, that was required under the previous MATSA debt facility. On Page 9, we do touch on that hedging program during the quarter. So our last parcel of copper sales was completed during the month, and that will settle in January. And so what that means is that both MATSA and Motheo, we're not -- we're effectively unhedged in terms of our forward sales. It's just a QP that we continue to execute really to protect on that working capital front, Paul.
Paul Young: Yes. That's great. And just lastly, to sneak a third one in for Jason, just on the exploration. Thanks for continuing to, first of all, provide that information on the spend and details on exploration. Jason, just on a question on MATSA and the exploration drive, which you're commencing in 3Q. Can you just run through the program there on how long that's going to take to construct and then when the drilling would start post that?
Jason Grace: Yes. We should finish that fairly close to the start of Q4 and then spend most of the Q4 drilling out of that area. So we have noted in there, we've been doing a lot of drilling particularly around Olivo. So that's a high priority for us in the short term. And we have seen some slow extensions and they're proving that up because that gives us a lot of additional ore, particularly -- it derisked the plan a lot having Olivo available as soon as possible and opened up so we can use that production in the short term.
Brendan Harris: Just gives you more places, which we've talked a lot about.
Paul Young: Yes, it's a very short exploration, right. That's good. Okay. I'll pass it on.
Jason Grace: It's less than 70 meters.
Operator: Your next question comes from Mitch Ryan with Jefferies.
Mitch Ryan: Staying on the exploration spend, actually, just you've increased investment at Motheo, specifically to almost double the amount of drill meters there. Can you just talk to what drill results you've seen to date and exploration results you've seen specifically around A1 that are sort of giving you confidence to spend that and accelerate that spend?
Brendan Harris: Yes. Look, very much in short, you can imagine, we've got to be very careful selectively talking about drill results under the dual code. So what I can tell you more broadly is that we obviously completed the prior A1 drilling program, and there's been a lot of work underway studying that to obviously put us in a position to declare a reserve towards the end of this year, this financial year. What we had identified through that process is the prevalence of some high-grade material in the hinge at depth. And so what we felt was we needed to go in and test that and test not only for repetition, but continuity along strike. And we're seeing encouraging results is probably the best way to describe it, which is why we're putting more meters into the ground. The A1 story hasn't really changed. I think I've said before that the main objective there is to try and identify a reserve that's somewhere in the order of, call it, from a scale perspective, half a year to 1 year of throughput capacity. It provides the pathway to open up the north and hopefully provide a pathway then to access, in the future, additional satellite deposits that we're obviously actively exploring for.
Mitch Ryan: And my second question, you called out the enactment of updated regulations in Botswana in October. You've just given back some of the low priority drill targets. But then you said approvals are yet to be finalized. Can you just help me understand what those changes are and what approvals are outstanding at this point in time?
Brendan Harris: Yes. No change to what we've said before. We just have -- I mean, you can imagine, we've got a very large tenure holding that we've been bringing back into line with the revised, if you like, legislation. We've done that proactively. We've done that through prioritizing, obviously, on the basis of what we see as prospectivity. And a large part of that is down in the Aqua area, which we've talked to you about before, which is not, call it, the traditional Kalahari Copper Belt. And I think the way to think about it is when we say approvals, it's really ongoing renewals, which we have high degree of confidence in.
Jason Grace: The reference to those approvals are effectively their relinquishments, and those need to be processed and approved by the Mines Department in Botswana. So that's effectively it.
Brendan Harris: So process really on both sides of relinquishment and renewals. But I'd say the relationship that we enjoy with government is continuing to prove to be very strong.
Operator: Your next question comes from Adam Baker with Macquarie.
Adam Baker: Just first call we've had since your announcement of the binding term sheet with Havilah and I understand that Havilah shareholders are yet to approve the deal. But just broadly speaking, wondering if you could touch on the attributes which attracted you to the Kalkaroo project.
Brendan Harris: Yes. Look, I'm probably not going to say too much until we move through the process of their general meeting and the vote. Obviously, that's a key part of the CPs. And maybe it's just a -- it's worth noting for you that there's a really limited number of CPs. Clearly, the first one is a simple majority vote in favor of the transaction at the general meeting. It's us getting the necessary confidence that various titles will be transferable and approved, mainly at the government level at the appropriate time, which really relates to the second stage payment should we move forward with that, which obviously we're hoping we would. And then the last one is really just signing the definitive transaction agreements, which, as I said, are very well advanced now, as you might expect. If we think more broadly, there's a range of reasons that Kalkaroo was clearly at the top of our list at least of opportunities that we wanted to pursue. We like the team. This is a group of people that have been exploring in the Curnamona Province for decades. They know the ground. And they have, obviously, within that, done a lot of work around the Kalkaroo project itself, the opportunity that presents itself, and we had through dialogue with our people, I said earlier in my speech, the talented people engaged heavily. We've had people look at the core, built our own block models, formed a view on the geology and formed a view of the opportunity. But I think before we even go there, there are very few hundred million tonne reserves available today that have 0.83% copper equivalent grade with a strip ratio that's significantly lower than Motheo, 0.5% contained copper, close to 0.5 gram gold. And that reserve, I might add, was based on prices substantially below where we are today. I think numbers around $9,600 a tonne copper and $2,900 an ounce gold. So clearly, the strike length over 3.5 kilometers, our understanding of the geology, we believe that when you look at the resource of closer to 250 million tonnes, there's obviously a lot of opportunity there. We do think, however, that the way that we've, if you like, worked with Havilah to create that staged payment structure that allows us with success to get, if you like, an 80% interest in the Kalkaroo project is the right way to do these things for our shareholders. It recognizes that the project is well advanced, but there are risks, risks that we can work through in the prefeasibility study phase. And of course, very much sort of ties in with the way I described the strategy, which would look to bring in low dollar cost options for the portfolio. So clearly, we're looking forward to the shareholders approving the transaction by way of a simple majority. I would expect that being the case, we'll talk much more about it at the half year. Irrespective, there's a lot of work to do. There's particularly a lot of work to do over the next 2 years. You can imagine, given that stage gate process, we will run the PFS in many aspects towards a FID type level such that the big things that potentially can derail you, we have a very high degree of confidence in so that we can then move through an accelerated process towards ultimate development, again, with confidence. But clearly, we wouldn't be doing this if we didn't think it had the potential to deliver a very, very significant net present value to our shareholders, but also at a very, very attractive internal rate of return.
Adam Baker: Makes sense. We look forward to further updates once Havilah shareholders approve it.
Operator: [Operator Instructions] Your next question comes from Hamish Wiltshire with Jefferies.
Hamish Wiltshire: Apologies. That must have been my finger on the table. Sorry about that.
Brendan Harris: That's good. Thank you.
Operator: There are no further questions at this time. I'll now hand back to Mr. Harris for closing remarks.
Brendan Harris: Fantastic. Look, I know it's a really busy day. We keep doing it, too. A number of companies reporting, large and small. We wish you well. Good luck with that. Your interest is always deeply appreciated. As I mentioned, we think we're in a very strong position as an organization. The company has transformed dramatically over the last number of years. We're very focused operationally. Our people are focused, as I mentioned, on the basics. And critically for us, that means delivering on our second half commitments. We look forward to talking with you all about that more when we present our half year results and obviously, when we see many of you as we get out on the road. So good luck this year. Stay safe, and we'll see you soon.
Operator: Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.
