1 00:00:00,080 --> 00:00:03,320 Rhino Muddy miners, Buddy. Mate, we're about a bit of a 2 00:00:03,320 --> 00:00:05,400 party today, courtesy of the sheriff. 3 00:00:05,440 --> 00:00:07,360 We've got a bloody. I don't know. 4 00:00:07,360 --> 00:00:08,840 Can you see this on screen? What? 5 00:00:09,440 --> 00:00:10,760 The oh look at this, you might see in your. 6 00:00:10,760 --> 00:00:13,040 Friend, that's great. Bit of a bloody look at the 7 00:00:13,040 --> 00:00:15,040 little cheese platter we've got going on. 8 00:00:15,120 --> 00:00:19,600 We're celebrating sort of the last podcast day we have to talk 9 00:00:19,600 --> 00:00:21,680 about quarterly. So we've, we've, we've put out a 10 00:00:21,680 --> 00:00:24,320 little cheese platter, yeah, to celebrate. 11 00:00:24,520 --> 00:00:27,040 Which should add a bloody V, no? As well. 12 00:00:27,400 --> 00:00:30,720 I know, but I mean we did kinda eat most of it in the 13 00:00:30,720 --> 00:00:33,920 preparation but I. Didn't left off. 14 00:00:33,920 --> 00:00:36,040 I ate way too much. I didn't even go get a barn me 15 00:00:36,080 --> 00:00:37,720 off queue. So queue if you listen. 16 00:00:37,720 --> 00:00:40,680 You've just had like 6 wheels of cheese but that's OK. 17 00:00:41,000 --> 00:00:45,840 Cheers, Sheriff buddy right. We're we're going out of our 18 00:00:45,920 --> 00:00:51,000 realm of expertise today, diversified men resident IGO I 19 00:00:51,200 --> 00:00:54,120 if that's not not a bloody Travon JD segment if I've ever 20 00:00:54,120 --> 00:00:56,960 seen one. But anyway, we're much the wiser 21 00:00:57,400 --> 00:01:02,720 we G So Speaking of Travon JD JD, they've confirmed alive in 22 00:01:02,720 --> 00:01:07,400 this photo they are at some South African mine site. 23 00:01:07,440 --> 00:01:11,320 Yeah, so touchdown in Africa, look at them all smiling and 24 00:01:11,320 --> 00:01:13,640 thumbs up and having a great time. 25 00:01:13,640 --> 00:01:17,200 So yeah. So they'll be at in Dublin next 26 00:01:17,200 --> 00:01:20,480 week as well. So is CRE insurance. 27 00:01:21,440 --> 00:01:24,480 They are also adding data. Trouter and all the rest of the 28 00:01:24,480 --> 00:01:26,400 team. Yep, they, well, they actually 29 00:01:26,400 --> 00:01:29,440 prompted Trav and JD to check their travel insurance, which 30 00:01:29,440 --> 00:01:30,680 was like. They actually. 31 00:01:30,920 --> 00:01:32,720 Did and they had their A. Good suggestion. 32 00:01:32,760 --> 00:01:35,240 Buddy they should pro Trav should probably insure himself 33 00:01:35,240 --> 00:01:37,800 over there walking around with the bloody money and mine shirt. 34 00:01:37,800 --> 00:01:40,440 Don't see her a rutile phone get a hold of him. 35 00:01:41,440 --> 00:01:46,600 But as we said, say good day to the the CRE team, the African 36 00:01:46,600 --> 00:01:49,440 mining insurance experts in the broking world. 37 00:01:49,440 --> 00:01:53,000 So mate, Steve and Trouter, they, they spearhead the Perth 38 00:01:53,000 --> 00:01:56,360 office, right? They they change currencies in 39 00:01:56,360 --> 00:01:59,000 insurance and get money in and out like buddy butter and a 40 00:01:59,000 --> 00:02:01,040 piece of toast like it's. Easy as that. 41 00:02:01,040 --> 00:02:03,520 Absolute just normal start to the day for him. 42 00:02:03,520 --> 00:02:08,000 So mate, after Tari gets you a bloody better price on your 43 00:02:08,000 --> 00:02:12,760 premium and all better or more protective cover on what you 44 00:02:12,760 --> 00:02:15,960 already have, you won't be saying thanks Steve, you'll just 45 00:02:15,960 --> 00:02:21,440 be saying tar go say RE insurance. 46 00:02:22,120 --> 00:02:27,360 Go dare jokes. Right, let's take it away. 47 00:02:27,360 --> 00:02:30,080 JC men rez Ding Ding Ding for you. 48 00:02:30,080 --> 00:02:32,920 Yes. So they released their quarterly 49 00:02:32,920 --> 00:02:35,000 today. So it was a bit of a mixed bag. 50 00:02:35,000 --> 00:02:38,360 Some things were come up a bit better than expected, some 51 00:02:38,360 --> 00:02:40,760 things you know a bit below expectations. 52 00:02:40,760 --> 00:02:44,080 But certainly all eyes were on the, you know, the net debt 53 00:02:44,080 --> 00:02:48,800 figure and how the Onslow ramp up is progressing. 54 00:02:48,920 --> 00:02:50,040 Pretty simple. Yeah. 55 00:02:50,280 --> 00:02:53,920 Just so simple, diversified mind is so out of my wheelhouse, but 56 00:02:53,920 --> 00:02:57,200 I'm giving it a crack today. No offer a little bit today. 57 00:02:57,200 --> 00:02:59,560 Last I checked out, there's like, you know, 11 and a bit 58 00:02:59,560 --> 00:03:03,320 percent. So let's do a bit of a highlight 59 00:03:03,320 --> 00:03:05,800 reel of the callers while you enjoy it. 60 00:03:06,120 --> 00:03:10,600 Some cheese and crackers there. We'll swap when you do RGO. 61 00:03:12,120 --> 00:03:15,520 So first thing they said they're maintaining guidance, 62 00:03:15,520 --> 00:03:20,000 maintaining FY25 guidance across all continuing operations. 63 00:03:20,280 --> 00:03:26,000 But at present costs are generally running above guidance 64 00:03:26,000 --> 00:03:28,600 at this stage. So they'll be needing to make 65 00:03:28,600 --> 00:03:31,360 sure they deliver a lower cost second-half to make sure they 66 00:03:31,360 --> 00:03:33,880 meet those guidance ranges. But we'll we'll have a look at 67 00:03:33,880 --> 00:03:37,560 this in sort of each business division as sort of as we go. 68 00:03:37,560 --> 00:03:42,320 So First Capital tab off the rank, what is happening at 69 00:03:42,400 --> 00:03:43,760 Onslie? How's all that going? 70 00:03:44,520 --> 00:03:47,720 So they're progressing towards a 35,000,000 tonne per annum 71 00:03:48,440 --> 00:03:51,960 nameplate run rate, which they're, you know, expecting to 72 00:03:51,960 --> 00:03:54,360 mate in around June time this year. 73 00:03:55,440 --> 00:03:59,040 So for the the quarter just gone, December quarter, they 74 00:03:59,320 --> 00:04:04,520 produce 4.4 million tonnes. So that's an annualised sort of 75 00:04:04,520 --> 00:04:08,200 run rate of 17.6. They mentioned I think in the 76 00:04:08,200 --> 00:04:12,360 previous quarterly they were looking to do around 18 by 77 00:04:12,360 --> 00:04:15,360 December. So they sort of pretty much got 78 00:04:15,360 --> 00:04:18,920 there a little bit unders. Probably out and I was adding 79 00:04:18,920 --> 00:04:22,040 more in January. Like old Tropical Cyclone Shawn. 80 00:04:22,160 --> 00:04:23,560 Yeah. So then there was from that, 81 00:04:23,760 --> 00:04:26,960 then there was that as well. So they're actually expecting in 82 00:04:26,960 --> 00:04:33,880 this month, January to produce a 1.6 million tonnes, which if you 83 00:04:33,880 --> 00:04:36,760 annualise that, that's a 19.2 million run rate. 84 00:04:36,760 --> 00:04:40,520 So that run rate is stepping up, you know, each time, but it's 85 00:04:40,520 --> 00:04:43,840 just you know, is it going to step up to 35,000,000 tonnes? 86 00:04:44,240 --> 00:04:46,200 You know when they're sort of saying sort of that mid June, 87 00:04:46,200 --> 00:04:48,600 but it's but it's heading in the right direction so far. 88 00:04:50,280 --> 00:04:53,600 OpEx 7070 bucks a tonne for the first half, which again, you 89 00:04:53,600 --> 00:04:58,280 know, as it ramps up, that'll be expected to trend down sort of 90 00:04:58,280 --> 00:05:02,800 within that guidance range of 58 to $68 a tonne. 91 00:05:03,640 --> 00:05:06,040 They reckon. Onslow's being sort of operating 92 00:05:06,200 --> 00:05:09,360 cash flow positive since November last year. 93 00:05:09,920 --> 00:05:13,720 And that $800 million Onslow carry loan, which is a 94 00:05:13,720 --> 00:05:17,640 receivable from Inrez, is now starting to get repaid as that 95 00:05:17,640 --> 00:05:22,280 sort of, you know, free cash is generated. 3 trans strippers 96 00:05:22,280 --> 00:05:26,200 operating at nameplate, the fourth one June, next month, 97 00:05:26,280 --> 00:05:29,920 February, the 5th. In April, As you mentioned, 98 00:05:29,920 --> 00:05:34,880 Maddie shipments were sort of impacted by Cyclone Sean sort of 99 00:05:34,880 --> 00:05:37,920 earlier this month, but also some unplanned downtime on a 100 00:05:37,920 --> 00:05:41,760 port reclaimer, which is, you know, since been resolved. 101 00:05:42,440 --> 00:05:45,840 The cyclone did, you know, affect the whole Rd. as well. 102 00:05:45,840 --> 00:05:49,080 There's a lot of flooding and that whole Rd. had a bit of 103 00:05:49,840 --> 00:05:51,960 truck rollover incidents last year as well. 104 00:05:51,960 --> 00:05:55,200 But the whole road now is in full operation and they're sort 105 00:05:55,200 --> 00:05:58,880 of just doing final works to finish all of that off this 106 00:05:58,880 --> 00:06:02,120 quarter. But the iron ore division more 107 00:06:02,120 --> 00:06:09,360 generally sort of they produced 8 million tons at an average 108 00:06:09,480 --> 00:06:13,040 realized price of US 84 bucks a ton, which is a slight 109 00:06:13,040 --> 00:06:15,800 improvement from the previous quarter. 110 00:06:15,800 --> 00:06:19,720 And obviously the the the main update they're outside of the 111 00:06:19,840 --> 00:06:23,640 Onslow progress is that Yulgarns now on care and maintenance. 112 00:06:23,640 --> 00:06:26,760 And up for sale eh? Seems like but whether they'd be 113 00:06:26,760 --> 00:06:29,720 able to sell it, not known. Yeah, there might. 114 00:06:29,760 --> 00:06:31,800 Yeah. There's the assets and then all 115 00:06:31,800 --> 00:06:34,600 the sort of, you know, infrastructure and other, you 116 00:06:34,600 --> 00:06:36,880 know, sort of, you know, perhaps you know, fleet equipment, 117 00:06:36,880 --> 00:06:40,240 things like that, but. Might be some beryllium up 118 00:06:40,240 --> 00:06:41,240 there. Really. 119 00:06:41,800 --> 00:06:42,920 They talked. About that, yes. 120 00:06:42,920 --> 00:06:44,200 Yeah, and I got one of the comments. 121 00:06:44,200 --> 00:06:48,240 One of the fundies predicted beryllium was the the the 122 00:06:48,440 --> 00:06:51,200 commodity to watch this year. I'll be completely honest, I 123 00:06:51,200 --> 00:06:52,760 have no idea what that is, but we. 124 00:06:53,080 --> 00:06:56,320 We need to get onto that. Alrighty, yeah. 125 00:06:56,600 --> 00:06:58,840 Let's do it right, Mining services. 126 00:06:58,840 --> 00:07:03,320 Mining services which you know the heart of the of the min Res 127 00:07:03,320 --> 00:07:06,680 business, they did 68,000,000 tonnes which is pretty much the 128 00:07:06,680 --> 00:07:11,200 same, same as as last quarter. They believe sort of production 129 00:07:11,200 --> 00:07:14,840 volumes are more second-half weighted, sort of in line with 130 00:07:14,840 --> 00:07:19,000 the Onslow ramp up and they positively said they secured 2 131 00:07:19,000 --> 00:07:22,480 new contracts, a rehab and a mining contract and renewed 4 132 00:07:22,520 --> 00:07:27,840 existing crushing contracts. OK, the the older, the forgotten 133 00:07:27,840 --> 00:07:31,200 child, that was the breadwinner, the lithium. 134 00:07:31,240 --> 00:07:36,120 The lithium child, yes, So there's been a bit of change in 135 00:07:36,120 --> 00:07:40,160 this part of the business. So attributable spot production 136 00:07:40,160 --> 00:07:44,280 of 136,000 tonnes, it was lower than last quarter which was 137 00:07:44,280 --> 00:07:48,280 about 157,000, but that was sort part of a previously flagged 138 00:07:48,440 --> 00:07:52,560 focus to transition to you know lower volume but higher quality 139 00:07:52,560 --> 00:07:55,400 production with given all the, you know, lithium market 140 00:07:55,400 --> 00:07:58,640 conditions and things like that. So what they're like in terms of 141 00:07:59,000 --> 00:08:03,200 what Pilbara produced what 180,000 tonne, I think it was. 142 00:08:03,200 --> 00:08:06,080 So yeah, now we're down from 2:20. 143 00:08:06,080 --> 00:08:09,000 So that's, so I'll suppose to just just show them how big 144 00:08:09,280 --> 00:08:10,880 their business is compared to Pilbara. 145 00:08:10,880 --> 00:08:13,960 So obviously a bit smaller. Yeah, on output, yeah. 146 00:08:14,080 --> 00:08:17,720 No, that's right. And similarly to some of their 147 00:08:17,720 --> 00:08:22,400 peers, they saw their sort of average realise SE6 price 148 00:08:22,600 --> 00:08:25,640 improve. Min's actually sort of got a 149 00:08:25,640 --> 00:08:28,880 slightly better, you know, realise SE6 price compared to 150 00:08:28,880 --> 00:08:33,919 some of their peers as well, but they got 827US827A tonne and. 151 00:08:34,200 --> 00:08:37,080 I suppose, but I suppose last quarter I suppose like you're 152 00:08:37,080 --> 00:08:41,840 Mount Marion, but if you want to converted back like you, you 153 00:08:41,840 --> 00:08:44,159 might be getting a good realised SC6 price, but you're getting 154 00:08:44,159 --> 00:08:47,400 pretty bloody low when it's, you know that Mount Marion grade. 155 00:08:47,400 --> 00:08:52,240 Grade, yeah, that's right. But I think more so the IT was 156 00:08:52,240 --> 00:08:54,640 more interesting. I think more from it like the 157 00:08:54,760 --> 00:08:59,160 sentiment and sort of price, price movement type of angle 158 00:08:59,160 --> 00:09:03,520 and, and Mark Wilson on the call reckons I've got a belief and 159 00:09:03,520 --> 00:09:06,000 the business has a belief that the lithium market is not going 160 00:09:06,000 --> 00:09:09,680 to stay at US $900 a tonne for the next 5 years. 161 00:09:09,680 --> 00:09:13,720 So, and it was just interesting hearing that comment along with 162 00:09:14,240 --> 00:09:18,080 some comments Dale from Pilbara had the other day, you know, 163 00:09:18,080 --> 00:09:21,000 sort of saying he reckons prices are sort of bottomed out, You 164 00:09:21,000 --> 00:09:24,880 know, the edging up of prices since last October, you know, 165 00:09:24,880 --> 00:09:28,160 could be the start of a longer term upward trend. 166 00:09:28,160 --> 00:09:32,160 So, you know, is this very, you know, prolonged lithium winter? 167 00:09:32,160 --> 00:09:35,480 Is it starting to defrost a little bit? 168 00:09:35,480 --> 00:09:37,920 You know, the sort of sentiments changing a little bit. 169 00:09:37,920 --> 00:09:40,400 You know, these look, mind you, the prices haven't gone, you 170 00:09:40,400 --> 00:09:43,240 know, to 1500 bucks, but it's like the you're seeing these 171 00:09:43,240 --> 00:09:46,720 sort of little micro wins every quarter. 172 00:09:47,160 --> 00:09:49,320 I just thought that was interesting. 173 00:09:49,560 --> 00:09:50,960 Yeah. Well, and you think like if it 174 00:09:50,960 --> 00:09:53,440 just goes up 80 or $90.00 that is? 175 00:09:54,240 --> 00:09:58,440 That's the same. As bloody gold going from 4000 176 00:09:58,440 --> 00:09:59,920 to 4400. Yeah. 177 00:10:00,000 --> 00:10:05,120 Like it's, yeah, pretty big, big effect on these, you know, large 178 00:10:05,120 --> 00:10:07,200 term operations. Absolutely. 179 00:10:08,200 --> 00:10:10,800 We're what are we? What about operate like each 180 00:10:11,760 --> 00:10:13,760 each mile site itself? Yeah. 181 00:10:13,760 --> 00:10:18,840 So Wodgina shipped 61,000 tonnes at 5.7% grade. 182 00:10:19,000 --> 00:10:22,440 So they're sort of accessing more fresh ore and they've sort 183 00:10:22,440 --> 00:10:25,840 of cited some recovery improvements there as well, so. 184 00:10:26,000 --> 00:10:28,000 That's a that's a lot higher percentage, isn't it? 185 00:10:28,000 --> 00:10:30,320 Like compared to what like New Line Town and that are pumping 186 00:10:30,320 --> 00:10:34,280 out at 5.25 point three if they're doing 5.7. 187 00:10:34,280 --> 00:10:36,320 So it's obvious it could be a metallurgical thing. 188 00:10:36,600 --> 00:10:38,600 Yeah. So they, they sort of cited a 189 00:10:39,120 --> 00:10:42,000 bit of both really. And then Mount Marion shipped 190 00:10:42,280 --> 00:10:45,560 55,000 tonnes at 4.4%. So that grade we were sort of 191 00:10:45,560 --> 00:10:47,200 talking about earlier, but. That's lifted a bit. 192 00:10:47,400 --> 00:10:49,560 But yeah. That was in the high threes. 193 00:10:49,640 --> 00:10:51,520 Yeah. So that that has lifted. 194 00:10:51,520 --> 00:10:53,640 They've had some plant improvements as well. 195 00:10:54,280 --> 00:10:58,040 They said they completed the underground development there. 196 00:10:58,320 --> 00:11:01,520 So now they're just, you know, continuing with a study and 197 00:11:01,520 --> 00:11:05,440 approval works to basically support a a future underground 198 00:11:05,440 --> 00:11:07,560 race start, you know, when that time's appropriate. 199 00:11:08,000 --> 00:11:11,760 It's it's always sad. So in a bloody an underground 200 00:11:11,760 --> 00:11:15,480 stop because you know, it's it's a home that a Sandvik bolt. 201 00:11:15,800 --> 00:11:18,960 Could have gone. Had but it doesn't have any more 202 00:11:19,000 --> 00:11:22,360 and has to be relocated. It's like it's it's like a it's 203 00:11:22,360 --> 00:11:26,840 like it's like a dog going to the # like it's but you know, I 204 00:11:26,880 --> 00:11:29,920 suppose as as the developed jumbos and the developed people 205 00:11:29,920 --> 00:11:34,440 went to another contract like the Sandvik bolts usually follow 206 00:11:34,440 --> 00:11:35,520 them. So it's OK. 207 00:11:35,560 --> 00:11:39,680 Like look on a very small scale considering the Sandrick Graham 208 00:11:39,760 --> 00:11:44,360 support division, JC Supplies, Olympic Dam, Freeport. 209 00:11:44,760 --> 00:11:47,640 I would assume based on supplying them to they'd 210 00:11:47,640 --> 00:11:50,120 probably supply OU Tolgo as well like. 211 00:11:51,240 --> 00:11:52,560 These are some big mines. They're. 212 00:11:52,640 --> 00:11:54,560 The biggest underground mines in the world. 213 00:11:54,560 --> 00:11:58,960 So I tried proven, tested and run by Derek Hurd, the CMV 214 00:11:58,960 --> 00:12:02,280 ground support division. So just go CMV ground support. 215 00:12:02,400 --> 00:12:05,160 What makes you think that if they can't supply those biggest 216 00:12:05,160 --> 00:12:07,280 mines, they couldn't supply your small mine? 217 00:12:07,840 --> 00:12:09,960 Give them a buzz. Give them a buzz. 218 00:12:10,040 --> 00:12:14,360 To make that happen, what about cost? 219 00:12:14,800 --> 00:12:16,440 Costs. Yes, cost the moolah. 220 00:12:16,680 --> 00:12:21,720 The moolah so fob cost for for both Mount Marion and and 221 00:12:21,720 --> 00:12:25,480 Wodgina are in the low one thousands or they expect to be 222 00:12:25,480 --> 00:12:28,480 in the low one thousands of at this stage. 223 00:12:28,480 --> 00:12:33,280 So and they're they're still saying they're expecting to 224 00:12:33,280 --> 00:12:35,600 reach those guidances. So we'll flash up the the table 225 00:12:35,600 --> 00:12:37,120 here. You can see sort of where 226 00:12:37,120 --> 00:12:40,720 they're at for the first half of this financial year and where 227 00:12:40,720 --> 00:12:43,240 they're sort of guiding towards for the whole financial year. 228 00:12:43,880 --> 00:12:47,320 But remember back end of last year, they had a lot of those 229 00:12:47,320 --> 00:12:50,720 cost reduction measures sort of, you know, flowing through the 230 00:12:50,720 --> 00:12:53,120 business and things like that. So I imagine that will probably 231 00:12:53,680 --> 00:12:56,320 starts to have a little bit more impact on the, yeah, you know, 232 00:12:56,520 --> 00:13:01,640 cost per tonne basis in the coming months and quarters. 233 00:13:02,600 --> 00:13:06,800 And also, of course, you had Bald Hill, they shipped 27,000 234 00:13:06,800 --> 00:13:10,720 tonnes of 5%, but they're now in that's now in care and 235 00:13:10,720 --> 00:13:13,520 maintenance, but sounds like they're sort of still continuing 236 00:13:13,520 --> 00:13:19,600 to invest in the lithium operations to a point to, you 237 00:13:19,600 --> 00:13:21,400 know, basically, you know, harvest when the market 238 00:13:21,400 --> 00:13:24,920 rebounds, that's sort of a thing that was this sort of rhetoric. 239 00:13:26,560 --> 00:13:29,320 Right, the balance sheet, the debt. 240 00:13:29,320 --> 00:13:32,880 JC, where's the debt sitting at? Oh, everyone loves. 241 00:13:32,880 --> 00:13:35,520 Talking about the debt. First day really delving into 242 00:13:35,520 --> 00:13:40,360 the min res. It is I've I've come up a very 243 00:13:41,720 --> 00:13:44,360 big learning curve. So there's there's sort of a 244 00:13:44,360 --> 00:13:45,480 lot. Of cheese in the progress. 245 00:13:45,800 --> 00:13:50,160 With a lot of eating a lot of cheese in the progress actually 246 00:13:50,160 --> 00:13:53,000 finally there I am wearing my my free cash flow hat as well. 247 00:13:53,000 --> 00:13:55,080 I'm not sure if you can see that I thought I'd better put that on 248 00:13:55,080 --> 00:13:58,200 for a quarterlies day as well. But anyway, I digress. 249 00:13:58,200 --> 00:14:00,800 So back-to-back to the balance sheet. 250 00:14:01,720 --> 00:14:07,240 So there's total liquidity of 1 1/2 billion sort of expected as 251 00:14:07,240 --> 00:14:10,360 at 31st of December. So that includes around $700 252 00:14:10,360 --> 00:14:15,240 million of cash and $800 million of undrawn, you know, revolving 253 00:14:15,360 --> 00:14:20,040 credit facility net debt figures and expected to come in at 254 00:14:20,240 --> 00:14:24,280 basically $5.1 billion at 31st December. 255 00:14:24,680 --> 00:14:29,880 For context, back in 30 June last year it was 4.4. 256 00:14:30,520 --> 00:14:34,600 The current market cap is around 7 billion as it today for 257 00:14:34,600 --> 00:14:38,240 reference. So some of the key drivers as 258 00:14:38,760 --> 00:14:41,320 were that were you know that that that affected that net debt 259 00:14:41,320 --> 00:14:45,440 balance. You know the Hancock gas assets 260 00:14:45,720 --> 00:14:48,400 deal was done back into last year. 261 00:14:48,400 --> 00:14:52,320 So they got $780 million of that in the door. 262 00:14:52,800 --> 00:14:59,400 They sold the 49% of the Hall Rd. that was $1.1 billion then 263 00:14:59,400 --> 00:15:04,800 sort of coming out the door was $1.4 billion of CapEx, which was 264 00:15:05,360 --> 00:15:08,880 largely driven by Onslow. There was a networking capital 265 00:15:08,880 --> 00:15:14,440 unwind of about $500 million. So trade payables decreasing and 266 00:15:14,440 --> 00:15:20,400 then 200 million due due to Red Hill post first door on on ships 267 00:15:20,400 --> 00:15:26,800 for Onslow And then because of a the weaker exchange rate, the 268 00:15:26,800 --> 00:15:30,040 Aussie U.S. dollar exchange rate, there was a $300 million 269 00:15:30,040 --> 00:15:34,280 valuation and revaluation of of their bonds as well. 270 00:15:34,560 --> 00:15:38,600 So when you push all that up basically amongst other things 271 00:15:38,720 --> 00:15:43,200 that sort of got that that $5.1 billion number, it was a bit 272 00:15:43,200 --> 00:15:45,600 more than I think the street expected. 273 00:15:45,920 --> 00:15:49,720 I believe consensus is more in the mid 4 bills. 274 00:15:49,840 --> 00:15:53,040 Yep. But on the call they said they 275 00:15:53,040 --> 00:15:56,600 were comfortable with the net debt position and and by June, 276 00:15:56,600 --> 00:15:59,880 you know, the business would be, you know, transformed with a 277 00:15:59,880 --> 00:16:04,000 free option on, on, on lithium. And they reiterated there was, 278 00:16:04,040 --> 00:16:07,200 you know, no financial covenants on the bonds and they continued 279 00:16:07,200 --> 00:16:10,880 to trade above par and that they weren't really expecting any 280 00:16:10,920 --> 00:16:15,280 material payable arm wines to come and believe that they're 281 00:16:15,280 --> 00:16:19,120 now at at peak leverage. So yeah. 282 00:16:19,720 --> 00:16:25,080 Big numbers much did you read much into how much has been 283 00:16:25,080 --> 00:16:29,200 spent on Onslow versus how much remaining for big ticket items? 284 00:16:29,200 --> 00:16:31,840 I assume another two train ship is on the way. 285 00:16:31,840 --> 00:16:36,280 Like that's pretty big, pretty big capital, but you I think the 286 00:16:36,280 --> 00:16:39,760 road being close to finish, there'd be a lot of capital that 287 00:16:39,760 --> 00:16:42,200 have been spent. I think it was very first half 288 00:16:42,200 --> 00:16:45,640 weighted to be honest. There was there was some figures 289 00:16:45,640 --> 00:16:48,720 in the quarterly but not a whole bunch of detail. 290 00:16:48,720 --> 00:16:52,760 But yeah, very much sort of first half weighted. 291 00:16:52,760 --> 00:16:54,800 But yeah, you know, there's still obviously you know, 292 00:16:54,800 --> 00:16:56,800 there's more transshippers and things like that to come as 293 00:16:56,800 --> 00:17:00,080 well. But you know, there's also been 294 00:17:00,560 --> 00:17:06,960 1200 odd people leave the businesses since the start of 295 00:17:07,200 --> 00:17:11,520 FY25 across, you know, head office and you know, you know, 296 00:17:11,520 --> 00:17:13,800 there's two operations that have gone into care and maintenance, 297 00:17:13,800 --> 00:17:16,240 you know, construction activities have wound down. 298 00:17:16,920 --> 00:17:19,359 There's, there have been those roster changes as well. 299 00:17:20,160 --> 00:17:22,160 So that's happened. But they did sort of like there 300 00:17:22,160 --> 00:17:26,280 would be more detail on CapEx to come with the financials or half 301 00:17:26,280 --> 00:17:30,480 your financials, which is in in February, but they signalled 302 00:17:30,640 --> 00:17:33,800 scope for further spending now that they have the cash from the 303 00:17:33,800 --> 00:17:41,000 sale of the the N e.g. s s. But I think really sort of rate 304 00:17:41,000 --> 00:17:45,400 reading through all this information, the key to this is, 305 00:17:45,400 --> 00:17:51,240 is, is just keeping Onslow on track and hoping, you know, 306 00:17:51,240 --> 00:17:54,480 maybe get some a little bit of a bump in, you know, commodity 307 00:17:54,480 --> 00:17:57,360 prices and things like that. But that is that is just so 308 00:17:57,360 --> 00:18:01,040 critical here. But you know, there's they've in 309 00:18:01,040 --> 00:18:04,880 previous calls I've mentioned, you know, they've got other 310 00:18:04,880 --> 00:18:07,080 leavers that they can push if they need to. 311 00:18:07,880 --> 00:18:15,400 But at at this stage, yeah, there was nothing further. 312 00:18:15,400 --> 00:18:17,200 What else sort of other bits and bobs. 313 00:18:17,360 --> 00:18:19,800 There was nothing really on the the governance issues or the 314 00:18:19,800 --> 00:18:23,680 leadership succession plan in the quarterly. 315 00:18:23,680 --> 00:18:26,720 There was a bit of sort of or. Again, watch that just never 316 00:18:26,720 --> 00:18:28,720 really be talked about. Yeah. 317 00:18:28,720 --> 00:18:32,320 And gets to 12 months down the line, they're like, oh, wasn't 318 00:18:32,320 --> 00:18:35,680 he supposed to be leaving? No, yeah, no, we didn't say that 319 00:18:35,960 --> 00:18:37,280 because it's like, you know, as we. 320 00:18:37,520 --> 00:18:41,520 You'll hear from the chat with Romano tomorrow. 321 00:18:42,920 --> 00:18:45,280 As with Minrez, he's biggest holding I think. 322 00:18:45,440 --> 00:18:47,960 I think so, yeah. Yeah, he doesn't want him to go 323 00:18:47,960 --> 00:18:50,240 anywhere. So there are, there's obviously 324 00:18:50,240 --> 00:18:54,440 still there's some, there's obviously different sites where 325 00:18:54,440 --> 00:18:57,360 there's a shit load of support for him not going anywhere. 326 00:18:57,360 --> 00:18:58,760 So. Yeah, no. 327 00:18:58,760 --> 00:19:02,760 So that was, yeah, pretty quiet on that front today. 328 00:19:04,120 --> 00:19:08,520 And the shorts have sort of they really sort of did spike up the 329 00:19:08,520 --> 00:19:11,160 back end of last year, but sort of pulled back. 330 00:19:11,160 --> 00:19:13,360 But they've sort of been steadily increasing a little bit 331 00:19:13,360 --> 00:19:17,600 since since November, according to a short man. 332 00:19:18,360 --> 00:19:21,640 But yeah, that was sort of a a bit of a quick highlight reel 333 00:19:21,640 --> 00:19:25,680 from today's quarterly, but. You think of what's in the iron 334 00:19:25,680 --> 00:19:29,760 ore and you look at just, you know, meow Bush maths, you just 335 00:19:29,760 --> 00:19:31,960 look at the lithium they produce compared to Pilbara. 336 00:19:31,960 --> 00:19:34,080 And like, if they're getting valued for not much on the 337 00:19:34,080 --> 00:19:37,760 lithium, if there is that bit of rebound in lithium, they've got 338 00:19:37,760 --> 00:19:42,320 a lot of a lot of leverage to bloody a lot of lot of talk to 339 00:19:42,320 --> 00:19:45,000 benefit from the rise in the lithium price, especially 340 00:19:45,000 --> 00:19:48,440 because they can, you know, turn Bald Hill back on and they can 341 00:19:48,640 --> 00:19:53,560 really, you know, pull the levers to make a bit of cash 342 00:19:53,560 --> 00:19:56,720 when they need to so. Yeah, I mean, obviously with 343 00:19:56,720 --> 00:20:00,640 care of maintenance, I mean it's even though it may be a suitable 344 00:20:00,640 --> 00:20:03,200 environment to turn things back on, you know, there's, there's a 345 00:20:03,200 --> 00:20:06,880 process and and cost to do that. But you know, if the fact that 346 00:20:06,880 --> 00:20:09,920 they've got those assets is you know a plus and it's just a 347 00:20:09,920 --> 00:20:13,800 matter of when it's sort of a sustained period where it's, it 348 00:20:13,800 --> 00:20:17,080 is a better, you know, environment, you know, you've 349 00:20:17,080 --> 00:20:19,920 got them there, take a look and and go from there sort of thing. 350 00:20:19,920 --> 00:20:23,880 But yeah, I think the the interesting sort of period of 351 00:20:23,880 --> 00:20:26,760 time. Well, the the crux point really 352 00:20:26,760 --> 00:20:30,840 will be probably more middle of this year, back end of this 353 00:20:30,840 --> 00:20:32,880 year. That was sort of the feel I got 354 00:20:33,640 --> 00:20:36,600 having a look at this today. Saying if the the Onslow fruit 355 00:20:36,600 --> 00:20:38,960 starts yeah, coming off the tree. 356 00:20:39,000 --> 00:20:43,480 'Cause that'll, that'll, that'll, that'll impact it a 357 00:20:43,480 --> 00:20:45,320 fair bit. So yeah, I think that that's the 358 00:20:45,320 --> 00:20:50,080 real key period to watch. So, yeah, but that was my little 359 00:20:50,120 --> 00:20:54,440 my little highlight reel there. Ohh go you JC right I let's get 360 00:20:54,440 --> 00:20:57,000 on to IGO the. Other gonna get a crack in there 361 00:20:57,000 --> 00:20:58,440 as well well you. Do Ohh, you're right. 362 00:20:58,440 --> 00:21:00,920 Do you think just bloody, just chew it right into the 363 00:21:00,920 --> 00:21:03,520 microphone too? That bloody, that onion, the 364 00:21:03,600 --> 00:21:05,680 French onion dip. She was a bit rich, but it's 365 00:21:05,680 --> 00:21:07,080 good. But I have too much of it. 366 00:21:07,160 --> 00:21:10,400 Yeah, right. RGO she was a like tough 367 00:21:10,400 --> 00:21:12,480 quarter. It appeared they were they 368 00:21:12,480 --> 00:21:16,080 didn't deny it at all. They you know, still they've 369 00:21:16,080 --> 00:21:20,280 still got the Kwinana impairment to come which they flagged 370 00:21:20,360 --> 00:21:23,040 before the quarterly. So that'll come out come in the 371 00:21:23,120 --> 00:21:25,120 half year accounts, I would assume. 372 00:21:25,480 --> 00:21:31,800 So cash went backwards in RGO for by 12 million. 373 00:21:31,800 --> 00:21:36,880 So Nova underperformed sounds like the the grade like because 374 00:21:36,880 --> 00:21:40,880 it's sort of the production, you know, the the rock factory that 375 00:21:41,080 --> 00:21:43,640 they could just, you know, get a bit of easy cash out of because 376 00:21:43,640 --> 00:21:46,480 it's getting that into life. But sounds like the grades on 377 00:21:46,480 --> 00:21:49,400 the, you know, the fringes of the ore body that they're 378 00:21:49,400 --> 00:21:52,600 talking about that they're sort of at now and they sort of 379 00:21:52,640 --> 00:21:55,560 aren't reconciling to what they plan to get out of it at the end 380 00:21:55,560 --> 00:21:57,760 of the life. So not sure of the set up there, 381 00:21:57,760 --> 00:22:01,920 but like, you know, when you get to the end of nearing the end of 382 00:22:01,920 --> 00:22:06,080 a mine's life, you're taking out all the shit pretty much. 383 00:22:06,080 --> 00:22:09,320 Because yeah, all the remnant areas, it could be the, the 384 00:22:09,320 --> 00:22:12,640 levels in between mined areas, which could be challenging, but 385 00:22:12,640 --> 00:22:15,840 it could be the, it's usually the shittest grade that's left 386 00:22:15,840 --> 00:22:18,800 because why would you, why would you leave the good stuff till 387 00:22:18,920 --> 00:22:21,680 the end unless you cannot take it for some other reason. 388 00:22:22,520 --> 00:22:27,200 So and you know, whether a lot of stuff usually gets left by 389 00:22:27,640 --> 00:22:30,120 early management, they're like, I won't be fucking here then 390 00:22:30,440 --> 00:22:33,200 this won't be my problem. So it's yeah, it's always 391 00:22:33,440 --> 00:22:36,040 challenging the last bit of the of a mine life. 392 00:22:36,040 --> 00:22:40,320 But like they still said, they generated 14 mil free cash from 393 00:22:40,320 --> 00:22:45,200 Nova operationally. But sounds like it could have 394 00:22:45,200 --> 00:22:47,040 been a lot better because you're seeing how much the nickel 395 00:22:47,160 --> 00:22:49,200 output drop of course, from that side. 396 00:22:49,440 --> 00:22:51,400 Sounds like there's a bit of work going on the background to 397 00:22:51,400 --> 00:22:56,360 sort of properly model and guide what's left there, what they 398 00:22:56,360 --> 00:23:00,360 expect out of it in terms of grade and tonnage and hopefully 399 00:23:00,360 --> 00:23:01,920 hear about that in the coming quarters. 400 00:23:01,920 --> 00:23:05,000 So still, and you say on the waterfall chart is still 401 00:23:05,000 --> 00:23:08,680 spending 16 mil on exploration and evaluation. 402 00:23:08,680 --> 00:23:12,080 So they're like drilling, drilling in and around Cosmos. 403 00:23:12,080 --> 00:23:17,440 So said on the Ivan said on the call, there's like a few things 404 00:23:17,440 --> 00:23:21,280 that you know need to be squashed or closed off or nails 405 00:23:21,280 --> 00:23:23,800 hit on the head effectively before they walk away from it. 406 00:23:23,800 --> 00:23:26,800 So they probably bloody deserve a bit of an exploration Hail 407 00:23:26,800 --> 00:23:31,040 Mary RGO, considering since they've bought Nova and became 408 00:23:31,240 --> 00:23:34,080 RGO, they didn't haven't really had a massive, massive 409 00:23:34,080 --> 00:23:36,640 exploration success. So they probably spent a bit of 410 00:23:36,640 --> 00:23:37,240 coin. On it. 411 00:23:37,360 --> 00:23:43,160 So yeah, so that now the thing about the thing I'll go into 412 00:23:43,160 --> 00:23:46,760 here just as as a 101 that I've given myself and then I'll give 413 00:23:46,760 --> 00:23:50,880 the other people, it's the it's like there's cash and IGO, but 414 00:23:50,880 --> 00:23:54,960 then there's the JV for the whole green bushes and kunana 415 00:23:54,960 --> 00:23:57,840 arrangements. I'll just I'll go step, step 416 00:23:57,840 --> 00:23:59,480 through it. For those who don't know, if you 417 00:23:59,480 --> 00:24:04,680 already know, just Fast forward. So you've got the Winfield 418 00:24:05,000 --> 00:24:10,240 Winfield JV that is what owns green bushes. 419 00:24:10,240 --> 00:24:15,800 So that's 51% TLEA, like Tianchi, Lithium, Energy 420 00:24:15,800 --> 00:24:21,520 Australia I think it is, and 49% Albemarle. 421 00:24:21,800 --> 00:24:26,360 OK, yeah. So but then TLEA, that 51% that 422 00:24:26,360 --> 00:24:32,680 holds green bushes is made-up of 51% Tianchi and 49% IGI. 423 00:24:32,880 --> 00:24:40,200 So effectively IGI have like 25 point O1 this no sorry 24.99% of 424 00:24:40,200 --> 00:24:46,440 green bushes. So TLEI owns 100% of the Kwinana 425 00:24:46,520 --> 00:24:50,720 facility. So TLEI owns bloody they got a 426 00:24:50,720 --> 00:24:54,000 bit of half of green bushes 100% of the Kwinana downstream 427 00:24:54,000 --> 00:24:59,440 hydroxide. So for for IGO to get a dividend 428 00:24:59,440 --> 00:25:02,480 from TLEI. So when they talk about the 429 00:25:02,960 --> 00:25:04,480 bloody that's that's the cash they get. 430 00:25:04,480 --> 00:25:06,880 You'll see on the waterfall chart there's nothing on there 431 00:25:07,200 --> 00:25:11,200 that is anything to do with green bushes cause all RGI get 432 00:25:11,200 --> 00:25:17,240 from green bushes and TLEA which includes the hydroxide is either 433 00:25:17,240 --> 00:25:20,720 a dividend or they would in worst case scenario have to put 434 00:25:20,720 --> 00:25:24,240 money into it so it doesn't show up on their waterfall chart. 435 00:25:24,240 --> 00:25:30,600 So so for RGO to get a dividend from TLEA to show up on that 436 00:25:30,600 --> 00:25:33,720 waterfall chart. So you know green bushes to make 437 00:25:33,920 --> 00:25:36,600 a shit load of money if they because if it loses money, 438 00:25:36,600 --> 00:25:38,800 they'd have to tip money into the JV. 439 00:25:38,800 --> 00:25:41,880 But you would hope based on or go through the operating costs 440 00:25:41,880 --> 00:25:43,320 later. You don't think green bushes 441 00:25:43,320 --> 00:25:46,320 will lose money unless there is a catastrophic event or a 442 00:25:46,320 --> 00:25:52,160 lithium price even worse price. So that money made in that 443 00:25:52,160 --> 00:25:56,360 Winfield JV between TLA and Albemarle is then used to 444 00:25:57,000 --> 00:26:00,680 operate fund the growth at Greenbushes service the debt 445 00:26:00,720 --> 00:26:04,920 within the Winfield JV. Now that Winfield JV debt that 446 00:26:04,920 --> 00:26:10,640 got upsized to 1.55 billion US in June last year and that a lot 447 00:26:10,640 --> 00:26:14,440 of that was used to fund CapEx at Greenbushes for Train 3 and 448 00:26:14,440 --> 00:26:18,120 the TSF 4. Not sure if it's fully drawn, I 449 00:26:18,280 --> 00:26:21,880 think it's close. But I, I heard, I heard like the 450 00:26:21,880 --> 00:26:25,840 the Winfield JV effectively took on more debt so it could release 451 00:26:25,840 --> 00:26:28,640 a dividend because Albemarle needed cash. 452 00:26:28,640 --> 00:26:30,120 So. OK. 453 00:26:30,480 --> 00:26:32,440 I think that's yeah, that's sort of yeah, right. 454 00:26:32,440 --> 00:26:35,120 Yeah. So sort of debt paid a dividend. 455 00:26:35,480 --> 00:26:38,080 I'm, I'm not sure if that that's it sounds cool. 456 00:26:38,080 --> 00:26:43,040 Anyway. So then the money after the 457 00:26:43,040 --> 00:26:48,480 Winfield JV that then goes into TLAI like that has to service 458 00:26:48,640 --> 00:26:53,120 the Kwinana downstream as well, facility CapEx and operating and 459 00:26:53,120 --> 00:26:58,400 everything then like TLAI itself and what's left from that will 460 00:26:58,400 --> 00:27:02,240 then be released as a dividend to TNT and IGO. 461 00:27:02,240 --> 00:27:09,360 So last last reported in August. So IGO share of the TLEA net 462 00:27:09,360 --> 00:27:14,880 debt was Aussie $415,000,000. So that's effectively the debt 463 00:27:14,880 --> 00:27:18,800 within the Winfield JVIGOS quarter of that. 464 00:27:18,800 --> 00:27:24,240 So it's implying that that was 1.6 Aussie, but it's U.S. dollar 465 00:27:24,240 --> 00:27:26,840 denominated. So I would imagine since that 466 00:27:26,840 --> 00:27:30,320 period it would be there's a lot of and they, they talk about it 467 00:27:30,320 --> 00:27:33,440 today as well. The, the FX when they're talking 468 00:27:33,440 --> 00:27:36,000 about, because when they talk about EBITDA and everything, 469 00:27:36,000 --> 00:27:40,640 they're using the, the values within the Winfield JV and TLEI, 470 00:27:41,200 --> 00:27:44,760 but like as the book value and, and all that. 471 00:27:44,840 --> 00:27:48,240 But it's not getting used on their cash flow at the moment 472 00:27:48,240 --> 00:27:50,760 because. But in, in terms of the, the 473 00:27:50,760 --> 00:27:54,880 financials, the accounting side. So there, there is going to be 474 00:27:54,880 --> 00:27:57,760 once those accounts come out, that will be like obviously the 475 00:27:57,760 --> 00:28:02,760 FX increase and then the update on what the, what the debt is. 476 00:28:02,760 --> 00:28:07,480 So I so, yeah, as I said, what's leftover if there's everything's 477 00:28:07,480 --> 00:28:11,000 going well and the debt serviced and Kwinana CapEx has been 478 00:28:11,000 --> 00:28:13,400 satisfied and it's not losing too much. 479 00:28:13,400 --> 00:28:18,000 That's how IGI get a dividend. So because FY23 those dividends 480 00:28:18,000 --> 00:28:23,600 were 1.2 billion to IGI when lithium was humming then they 481 00:28:23,600 --> 00:28:28,840 received a further 761 million in dividends in FY24. 482 00:28:29,320 --> 00:28:35,480 But unfortunately for FY25 they have and likely have and will 483 00:28:35,480 --> 00:28:39,920 receive 0 for the whole of FY25. So they haven't received any 484 00:28:39,920 --> 00:28:41,560 yet. And they've said in the 485 00:28:41,560 --> 00:28:45,920 announcement that they are not expecting a dividend out of 486 00:28:45,920 --> 00:28:49,240 TLAI. So look considering they paid 487 00:28:49,240 --> 00:28:55,280 1.9 billion for their stake in TLAI in which is green. 488 00:28:55,280 --> 00:28:58,680 Bushes and. Kremina, those dividends have 489 00:28:58,680 --> 00:29:02,840 paid for that acquisition. I'm not though, I'm not sure if 490 00:29:02,840 --> 00:29:06,440 they had to tip in any more money into that JV or if that. 491 00:29:07,840 --> 00:29:10,040 Was the only outlay. That was the only outlay. 492 00:29:10,040 --> 00:29:12,720 I'm not sure. So they've they've definitely 493 00:29:12,720 --> 00:29:15,320 made high while the sunshine it's just pretty bloody, pretty 494 00:29:15,320 --> 00:29:21,360 bloody overcast at the moment. You'd say yeah, so it's the the 495 00:29:21,480 --> 00:29:23,840 the risk it like you think of it, it's like you're a non, 496 00:29:23,920 --> 00:29:26,200 you're a non operator. You're like a bloody cold Rd. 497 00:29:26,200 --> 00:29:30,800 sort of thing like you're just hoping that and and it is 498 00:29:30,800 --> 00:29:35,680 aligned in terms of the two customers of green bushes are 499 00:29:36,160 --> 00:29:39,720 Tianchi and Albemarle. So they are and they're, but 500 00:29:39,720 --> 00:29:40,880 they're the shareholders as well. 501 00:29:40,880 --> 00:29:46,720 So they will want to, you would hope keep the cost down, operate 502 00:29:46,720 --> 00:29:49,200 it the best they can to make bloody money out of it. 503 00:29:49,360 --> 00:29:52,680 And then they it guarantees their supply, but they obviously 504 00:29:52,680 --> 00:29:55,720 want to make money out of the out of the operation as well. 505 00:29:55,800 --> 00:30:00,200 So what sort of circulates all back to themselves? 506 00:30:00,200 --> 00:30:04,200 Yeah, in, in, in a way. And like talking about Kwinana, 507 00:30:04,200 --> 00:30:08,880 like the 'cause I get a lot of questions about the, you know, 508 00:30:08,880 --> 00:30:11,280 the marketing rights and, and everything. 509 00:30:11,280 --> 00:30:14,720 Like that's thinking that, you know, Tiantia got all the power 510 00:30:14,720 --> 00:30:17,360 and audio. I haven't got any, but look, 511 00:30:17,360 --> 00:30:21,040 there is. It was pretty repetitively said 512 00:30:21,040 --> 00:30:23,760 today like this, this is the arrangement, this is how the 513 00:30:23,760 --> 00:30:26,760 money flows as how I explained it before he he explained it 514 00:30:26,760 --> 00:30:29,960 much quicker than I did. But it, it flows from Winfield 515 00:30:29,960 --> 00:30:35,440 to TLAI, then to IGO and if at all, and it's all a function at 516 00:30:35,440 --> 00:30:39,160 the moment of obviously lithium prices are not that good and 517 00:30:39,160 --> 00:30:42,400 they're expanding green bushes at the same time. 518 00:30:42,600 --> 00:30:47,960 So, so 4 green bushes we'll go, I'll go into the figures after 519 00:30:47,960 --> 00:30:50,280 this. But the, I guess the one bit was 520 00:30:50,280 --> 00:30:54,000 like the sales, the lithium sales were down compared to what 521 00:30:54,000 --> 00:30:56,920 they actually produced. And you know, everyone starts 522 00:30:56,920 --> 00:31:00,080 the scuttlebutt starts going around that Oh no, stockpiles 523 00:31:00,080 --> 00:31:03,680 are building up because TNT lot last year didn't take product 524 00:31:03,680 --> 00:31:06,120 and that's going to see inventories and they've got the 525 00:31:06,120 --> 00:31:08,160 control. So because you see that lower 526 00:31:08,160 --> 00:31:11,320 shipped to production number, that narrative gets gone. 527 00:31:11,320 --> 00:31:15,320 So let's see what Big Ivan had to say when asked about 528 00:31:16,160 --> 00:31:18,360 inventories directly. Let's have a listen. 529 00:31:19,600 --> 00:31:21,560 The next question comes from Levi Fry with UBS. 530 00:31:21,880 --> 00:31:24,400 Can I just sort of quoterize that question on the inventory 531 00:31:24,400 --> 00:31:26,800 build up though? So how big, what are the stocks 532 00:31:26,800 --> 00:31:28,840 on site, how big was a ship that was missed? 533 00:31:28,840 --> 00:31:32,200 And do you expect you know all inventory to be cleared by by 534 00:31:32,200 --> 00:31:35,800 the end of the FY or end of the Tianjies FYI in the calendar 535 00:31:35,800 --> 00:31:38,520 year? I don't have the shipping 536 00:31:38,520 --> 00:31:41,640 schedule, but I think Levi in terms of, you know, getting the 537 00:31:41,640 --> 00:31:42,840 tons out, that's a priority, right? 538 00:31:42,840 --> 00:31:45,880 The team, they know that and they, they actually caught up 539 00:31:45,880 --> 00:31:48,520 through the quarter, but didn't, didn't kind of clear it all. 540 00:31:48,520 --> 00:31:52,040 And I can't give you an exact schedule and and say what the 541 00:31:52,040 --> 00:31:56,440 inventory would be by the end of the this coming quarter or TNT's 542 00:31:56,440 --> 00:31:59,040 year end effectively. But all I can say is that Rob 543 00:31:59,040 --> 00:32:02,040 and the team will be working hard to move the tons as quickly 544 00:32:02,040 --> 00:32:04,480 as they're producing them. There's no intent for any 545 00:32:04,600 --> 00:32:08,120 inventory build up or or holding there or buffering around that. 546 00:32:10,080 --> 00:32:12,360 Yeah, but you get the the angle of the questioning. 547 00:32:12,360 --> 00:32:15,520 I guess they've got form in not taking it so. 548 00:32:17,080 --> 00:32:19,400 Sure. Look, there was 1/4 this time 549 00:32:19,400 --> 00:32:22,640 last year and that was on you know a fairly unique set of 550 00:32:22,640 --> 00:32:25,600 circumstances coming out of a period of very high prices 551 00:32:25,640 --> 00:32:27,840 without falling. They had high inventories and 552 00:32:27,840 --> 00:32:28,960 their plants were still ramped up. 553 00:32:29,120 --> 00:32:32,960 But let me give you some confidence, there is no pushback 554 00:32:32,960 --> 00:32:35,760 on on tons and nominations from either customer. 555 00:32:35,760 --> 00:32:38,600 They're both pulling the production through as quickly as 556 00:32:38,600 --> 00:32:41,680 it's as it's made. Well, that was pretty, pretty 557 00:32:41,680 --> 00:32:46,400 adamant that there is no, no pushback at all that Tianchi 558 00:32:46,400 --> 00:32:50,120 don't want the product and it was just just a shipment timing. 559 00:32:50,120 --> 00:32:54,240 So that probably has to give a bit of confidence for the the 560 00:32:54,240 --> 00:32:57,240 market. I would say because that, you 561 00:32:57,240 --> 00:33:01,680 know, that narrative does get around so well and because 562 00:33:01,680 --> 00:33:06,280 another thing was I learned today the the Kunana hydroxide 563 00:33:06,280 --> 00:33:11,360 facility gets first preference over Tianchi taking it 564 00:33:11,840 --> 00:33:14,600 elsewhere. OK, yeah, not that it's probably 565 00:33:14,600 --> 00:33:17,520 taken shit loads at the moment 'cause it's not really getting 566 00:33:17,520 --> 00:33:20,680 the getting the output, but that's sort of how the hierarchy 567 00:33:20,680 --> 00:33:24,640 of that of that goes. So as I said, the Train 3 568 00:33:24,640 --> 00:33:28,720 commissioning expected, so it's in progress. 569 00:33:28,880 --> 00:33:31,320 Commissioning is expected Q2 FY20 6. 570 00:33:31,320 --> 00:33:36,760 So look at their unit operating cost for green bushes like $324 571 00:33:36,760 --> 00:33:39,880 a tonne Aussie. So Pilgrim Minerals, as we said 572 00:33:39,880 --> 00:33:45,160 was 621, so nearly double just shows the shows the quality of 573 00:33:45,160 --> 00:33:49,440 green bushes like grades dropped a bit going from 2.53 down to 574 00:33:49,440 --> 00:33:54,640 2.1, but still miles out of Pilbara mining 1 1/2%. 575 00:33:55,280 --> 00:33:58,760 And like you look at even the tons mined, Greenbush's mined a 576 00:33:59,080 --> 00:34:03,240 little bit less ore for the quarter, but produced over 577 00:34:03,240 --> 00:34:04,680 double the amount of spot you make. 578 00:34:05,440 --> 00:34:08,920 It's not, not that mining is always there's probably 579 00:34:08,920 --> 00:34:12,440 stockpiles and variations there. But of course, just as a just as 580 00:34:12,440 --> 00:34:15,800 a guide and I think you know when because Greenbush's is gets 581 00:34:15,800 --> 00:34:17,320 a bit better recoveries than Pilbara. 582 00:34:17,320 --> 00:34:20,320 So it just just shows the quality of that asset. 583 00:34:20,320 --> 00:34:22,000 It is an absolute bloody standard. 584 00:34:22,000 --> 00:34:27,199 Amazing Kwinana, as we said, cessation of activities on Train 585 00:34:27,199 --> 00:34:32,360 2 due to the, you know, I guess the project economics, capital 586 00:34:32,360 --> 00:34:34,520 allocation, just general feel of it. 587 00:34:34,560 --> 00:34:40,280 It probably didn't make sense and the OK, but they've, they've 588 00:34:40,280 --> 00:34:44,199 sort of they're still reviewing the whole whole thing as well, 589 00:34:44,199 --> 00:34:48,679 like train one as well like work, like whether that makes 590 00:34:49,040 --> 00:34:53,159 sense for both TLA and RGO going forward. 591 00:34:53,159 --> 00:34:56,440 So he was asked about the future of Kwinana and just the whole 592 00:34:56,440 --> 00:34:57,960 thing in Baron by Kate Mccutchen. 593 00:34:57,960 --> 00:35:01,600 I'll play that for. You Kwinana Train one has been 594 00:35:01,600 --> 00:35:03,440 challenging. When do you think you'll be in a 595 00:35:03,440 --> 00:35:05,600 position to update the market on some of those metrics like 596 00:35:05,600 --> 00:35:07,320 costs? How much longer do you give 597 00:35:07,320 --> 00:35:09,840 Train 1 to get somewhere where it resembles something that's 598 00:35:09,840 --> 00:35:11,920 closer to nameplate? Is there a scenario where it 599 00:35:11,920 --> 00:35:13,360 doesn't make sense to continue that? 600 00:35:13,600 --> 00:35:15,400 And I guess how long until we have some clarity there? 601 00:35:15,400 --> 00:35:17,040 Is it a couple of quarters? Is it a year? 602 00:35:17,040 --> 00:35:19,480 Is it too soon to know? I mean Konana as you call it 603 00:35:19,480 --> 00:35:21,560 out, it's obviously very material for our business and 604 00:35:21,560 --> 00:35:24,760 the cash that that's demanding to sustain and and develop that 605 00:35:24,760 --> 00:35:27,520 asset. We are obviously working through 606 00:35:27,520 --> 00:35:30,360 that very proactively, not just because of the impairment. 607 00:35:30,360 --> 00:35:34,120 It's it's budget time and it's also something that's, you know, 608 00:35:34,200 --> 00:35:37,800 been a strong focus through 2024 and we really need to be to be 609 00:35:37,800 --> 00:35:40,440 clear about what the what the plan and the future for it is. 610 00:35:40,680 --> 00:35:42,480 It's something that we need to get to a place where we've got 611 00:35:42,480 --> 00:35:45,680 alignment with, with TLC. They bring obviously huge 612 00:35:45,680 --> 00:35:48,960 expertise in, in the lithium refining market in those 613 00:35:48,960 --> 00:35:51,160 operations across China and and beyond. 614 00:35:51,520 --> 00:35:54,120 And so we rely on that and I think draw on their expertise, 615 00:35:54,120 --> 00:35:57,840 but equally want to have our own view on the economics and the 616 00:35:58,320 --> 00:36:01,600 the plans and and make sure that that that's been considered as 617 00:36:01,600 --> 00:36:03,280 part of the planning and the thinking there. 618 00:36:04,120 --> 00:36:06,560 To get to your specific question on timing, I can't give you a 619 00:36:06,560 --> 00:36:09,000 date yet. But look, it's it's hot 620 00:36:09,000 --> 00:36:11,320 discussion at the moment. It's got a lot of focus, not as 621 00:36:11,320 --> 00:36:12,640 I said, not just because of the impairment. 622 00:36:13,240 --> 00:36:15,600 So at the very least I do expect and I know how material it is 623 00:36:15,600 --> 00:36:19,160 for our business to be providing guidance on Konana going 624 00:36:19,160 --> 00:36:20,680 forward. So it's something I didn't do in 625 00:36:20,680 --> 00:36:23,840 the last calendar year because it was too uncertain for me. 626 00:36:23,840 --> 00:36:26,440 It was too new for us to be able to do that consistently or with 627 00:36:26,440 --> 00:36:28,360 the confidence. I know that we'd we'd sort of 628 00:36:28,360 --> 00:36:32,240 put some numbers out in 2023 and just miss them and it didn't 629 00:36:32,240 --> 00:36:34,760 really help with with anyone's understanding or confidence 630 00:36:34,760 --> 00:36:36,960 around the asset we. So we will put some more numbers 631 00:36:36,960 --> 00:36:37,960 out. We'll work through that for the 632 00:36:37,960 --> 00:36:42,080 next quarterly and ongoing and taking the the 20, as I said 633 00:36:42,080 --> 00:36:45,720 calendar year 25 budget into account give you that that extra 634 00:36:45,720 --> 00:36:50,240 set of clarity to to work with. It's pretty, I don't mind Ivan. 635 00:36:50,680 --> 00:36:53,400 I reckon he's he's got his bloody feet under the desk 636 00:36:53,400 --> 00:36:57,120 pretty settled in now and but he doesn't bullshit. 637 00:36:57,440 --> 00:37:02,280 He doesn't bullshit like he bloody tells it how it is and 638 00:37:02,280 --> 00:37:07,880 he's not like, it's not like bulk euphemisms or putting fluff 639 00:37:07,880 --> 00:37:09,960 on it like he's not trying to Polish a turtle or something. 640 00:37:09,960 --> 00:37:13,880 He's being pretty bloody honest about what Kwinana is and that 641 00:37:13,880 --> 00:37:16,200 they're looking at. Like will it, you know, hot 642 00:37:16,200 --> 00:37:18,120 discussion and will it make sense going forward? 643 00:37:18,120 --> 00:37:20,640 Because if of what? Yeah, there's going to be a big 644 00:37:20,720 --> 00:37:24,400 impairment on the, you know, the carrying value of the asset and 645 00:37:24,400 --> 00:37:28,840 obviously the the what RGO is valued at as a business. 646 00:37:28,840 --> 00:37:33,560 But for them to get a dividend out of TLEI, if they're not 647 00:37:33,560 --> 00:37:38,040 wasting it on Kwinana, you've got more chance of getting that, 648 00:37:38,040 --> 00:37:40,640 you know, that juicy dividend out of green bushes. 649 00:37:40,760 --> 00:37:44,160 Yeah. So it'd be, and this could be 650 00:37:44,360 --> 00:37:49,280 how, you know, he sort of works alongside Tianchi to, you know, 651 00:37:49,440 --> 00:37:52,800 try and get the best outcome for IGO, not just the best outcome 652 00:37:52,800 --> 00:37:55,560 for TLEI. Could be a pretty, you know, 653 00:37:55,800 --> 00:37:59,080 pivotal part of his tenure as the MD of IGO. 654 00:37:59,320 --> 00:38:02,240 Yeah, no, it's huge. And I guess the interesting 655 00:38:02,240 --> 00:38:06,640 thing to me and I guess it's something to to learn and, and 656 00:38:06,640 --> 00:38:10,800 look into is, is it the fact that, yeah, we're trying to yes, 657 00:38:10,800 --> 00:38:12,480 those sort of ceased works on that. 658 00:38:13,080 --> 00:38:15,640 But you know, those sort of comments around, you know, even 659 00:38:15,640 --> 00:38:22,880 reviewing train one as well is, is that a a comment on, you 660 00:38:22,880 --> 00:38:28,880 know, sort of downstream processing in Australia compared 661 00:38:28,880 --> 00:38:31,040 to, you know, other parts of the world? 662 00:38:31,560 --> 00:38:34,920 Is it a comment on, you know, obviously the lithium 663 00:38:35,320 --> 00:38:37,800 environment as well or is it perhaps? 664 00:38:37,800 --> 00:38:43,360 Both well, and it could be like could be is lithium hydroxide 665 00:38:43,440 --> 00:38:45,360 the way forward? I'm not this is this is like a 666 00:38:45,360 --> 00:38:47,040 bloody Mat Fernley question this one. 667 00:38:47,040 --> 00:38:50,320 But like, is lithium hydroxide going to be in demand enough to 668 00:38:50,320 --> 00:38:53,040 warrant a an Australian downstream facility? 669 00:38:53,040 --> 00:38:56,120 Or is lithium carbonate going to be more in demand 'cause it 670 00:38:56,120 --> 00:38:58,920 appears that's what Rio Tinto are betting on, that lithium 671 00:38:58,920 --> 00:39:01,640 carbonate's probably gonna be a more, that's what they're going 672 00:39:01,640 --> 00:39:03,680 to be producing a shit load of out of brine. 673 00:39:03,680 --> 00:39:04,120 So. Yeah. 674 00:39:04,120 --> 00:39:08,080 So even like the preferred chemistry is another thing to 675 00:39:08,080 --> 00:39:11,240 think about as well. It's not sort of, I guess sort 676 00:39:11,240 --> 00:39:14,160 of being quite evident to me sort of chatting about this. 677 00:39:14,160 --> 00:39:16,920 It's not just as simple as all lithium's a bit poo poo. 678 00:39:16,920 --> 00:39:18,720 Like there's it. There's a lot more sort of 679 00:39:18,720 --> 00:39:22,120 factors to consider out that consider for that. 680 00:39:22,120 --> 00:39:29,280 So no, it'd be interesting to say what their assessment is of 681 00:39:29,280 --> 00:39:33,720 it going forward, whether there'll be any impacts or 682 00:39:33,720 --> 00:39:37,200 changes to, you know, how that operation or that that 683 00:39:37,200 --> 00:39:39,400 processing facility looks like today. 684 00:39:39,400 --> 00:39:43,680 And yeah, yeah, want to watch? Yeah, very much so. 685 00:39:44,680 --> 00:39:46,960 That's bloody. That's about it. 686 00:39:46,960 --> 00:39:50,720 So, so they've it'd be interesting to see what they, if 687 00:39:50,720 --> 00:39:54,920 they simplify and diversify because they've still, you know, 688 00:39:54,920 --> 00:40:00,640 they're still there's still cash like taking take away the whole 689 00:40:00,640 --> 00:40:04,560 Winfield JV and everything. Like I think sounds like 690 00:40:04,560 --> 00:40:07,920 that'll, you know, hopefully sort itself out, get a dividend. 691 00:40:07,920 --> 00:40:12,000 It's not like I know it is their debt, but they've still got, you 692 00:40:12,000 --> 00:40:15,360 know, 200 and 200 odd mil. They've got 700 and. 693 00:40:15,360 --> 00:40:16,880 That's RGO themselves. Yeah, Yeah. 694 00:40:16,960 --> 00:40:22,880 They've got 720 mil of undrawn debt within Igos so that they've 695 00:40:22,880 --> 00:40:26,680 got to potentially deploy that what they, you know, net net 696 00:40:26,680 --> 00:40:31,280 debt, 200 odd mil if you can include the their share of the 697 00:40:31,280 --> 00:40:34,720 Winfield JV. But they, you know, they got a 698 00:40:35,720 --> 00:40:38,440 quarter of a cracking asset in green bushes. 699 00:40:39,280 --> 00:40:42,320 Their forest down is on care and maintenance now. 700 00:40:42,320 --> 00:40:45,880 So that's they're probably going to realise some value out of 701 00:40:46,240 --> 00:40:48,400 getting that deal done with medallion. 702 00:40:48,400 --> 00:40:51,800 Probably not heaps for the gold rots and the plant and 703 00:40:51,800 --> 00:40:52,600 everything. So they might. 704 00:40:52,600 --> 00:40:54,200 Not enough to move the dial. Yeah. 705 00:40:54,200 --> 00:40:57,760 So like, you know, Cosmos is obviously a lot of that, that 706 00:40:57,760 --> 00:41:01,480 he's sort of, he's inherited that one, a lot of a lot of 707 00:41:01,480 --> 00:41:03,080 infrastructure being put in there. 708 00:41:03,240 --> 00:41:06,520 You know, your God, there could be a miraculous frigging nickel 709 00:41:07,040 --> 00:41:10,200 revival, but Cosmos is always gonna Cosmos needed frigging 710 00:41:10,200 --> 00:41:14,920 $16.00 a pound to be a, a feasible mine deep, a lot of 711 00:41:14,920 --> 00:41:17,960 work, tough ground conditions and everything. 712 00:41:17,960 --> 00:41:22,000 So they'd have to be a massive bloody quantum shift in nickel 713 00:41:22,000 --> 00:41:25,480 for that to become valuable. Nova's gonna be at the end of 714 00:41:25,480 --> 00:41:27,800 the life. So yeah, it'd be interesting to 715 00:41:27,800 --> 00:41:32,000 see what they what they do in the coming years if they just 716 00:41:32,000 --> 00:41:37,000 really simplify and hopefully reap the benefits of a lithium 717 00:41:37,000 --> 00:41:41,280 turn around and green Bush's reducing the bloody cookies for 718 00:41:41,280 --> 00:41:43,920 them. Yeah, oh, who knows, JC? 719 00:41:43,920 --> 00:41:48,160 Like these friggin chemicals and base metals like it's we're 720 00:41:48,240 --> 00:41:49,840 mate, we're we have. Stretched. 721 00:41:49,960 --> 00:41:52,240 We have stretched our comfort zones today. 722 00:41:52,320 --> 00:41:53,480 So no, we're not good. Yeah. 723 00:41:54,600 --> 00:41:57,920 How good's that directed special gun, 70% open rate yesterday's 724 00:41:57,920 --> 00:42:01,000 mate cheese line out the door. You wouldn't even know. 725 00:42:01,040 --> 00:42:03,520 It's just well, you did most of it on the first day. 726 00:42:03,520 --> 00:42:05,640 I know I went. Alright, you did you. 727 00:42:05,800 --> 00:42:07,640 Did alright, I got up early this morning. 728 00:42:07,640 --> 00:42:11,320 I'm bloody in a better return, not drinking as much I'm bloody 729 00:42:11,360 --> 00:42:17,800 as much not not drinking 0. Just a slight that's ramped down 730 00:42:17,800 --> 00:42:19,880 and the dad jokes of Ramp. Yeah, yeah, yeah. 731 00:42:20,080 --> 00:42:22,360 Really getting old. I love your work, JC. 732 00:42:22,960 --> 00:42:25,320 Got anything else today? There's bloody few. 733 00:42:25,880 --> 00:42:29,040 Oh, was there resolute? Resolute sand fire. 734 00:42:29,320 --> 00:42:32,720 Oh yeah, Sand fire. What they what sand fire they 735 00:42:32,720 --> 00:42:36,400 were. I think they're pretty low cost. 736 00:42:36,400 --> 00:42:40,680 Good, good operating cost performance. 737 00:42:41,240 --> 00:42:43,720 I think the copper was down a little bit. 738 00:42:44,400 --> 00:42:47,080 Oh God, I should read the bloody directors special. 739 00:42:47,840 --> 00:42:50,000 Where was this this bloody? Money mine dot. 740 00:42:50,000 --> 00:42:52,560 Commoneymine.com everyone look at look at the value. 741 00:42:52,560 --> 00:42:55,400 I'm just about to get out of it. Giving it to yourself. 742 00:42:55,440 --> 00:42:57,560 Because I friggin wrote it. Where are we? 743 00:42:58,040 --> 00:43:03,280 25 1/2 thousand tonne of copper, 23,000 tonne of zinc reduced net 744 00:43:03,280 --> 00:43:06,520 debt by 57 million, so net debt sitting at 288. 745 00:43:06,520 --> 00:43:07,640 Million we've been chipping away at. 746 00:43:07,640 --> 00:43:11,000 That so Matzo and Mateo C1 operating costs performed well 747 00:43:11,000 --> 00:43:16,320 at the US $1.51 per pound and US $1.22 per pound. 748 00:43:16,320 --> 00:43:23,040 So that's not too bad, but I'd say the zinc would help likely 749 00:43:23,040 --> 00:43:26,480 to drop that operating costs like copper wood for gold. 750 00:43:26,480 --> 00:43:31,640 So would've got resolute produced 340,000 oz for calendar 751 00:43:31,640 --> 00:43:36,880 year 24 at US 1476. So they obviously got the dramas 752 00:43:36,880 --> 00:43:39,560 with the Mali government. It's. 753 00:43:39,920 --> 00:43:42,160 A bit of cash out the door there last quarter. 754 00:43:42,240 --> 00:43:47,800 Capricorn produced, they were already pre reported 28.7000 oz. 755 00:43:48,000 --> 00:43:52,160 All in sustaining costs of 1490. They beat Remilius by $1.00. 756 00:43:53,600 --> 00:43:57,240 That's great one with cash and gold of 363,000,000 after 757 00:43:57,240 --> 00:44:01,560 raising 200 during the quarter. So 30 million has been spent on 758 00:44:01,560 --> 00:44:05,480 Mount Gibson so far and out of the budget at 260. 759 00:44:06,600 --> 00:44:09,440 BlackRock increase in the stake and Got BlackRock seemed to be 760 00:44:09,440 --> 00:44:12,720 going gold. Yeah, I saw a few substantial 761 00:44:12,840 --> 00:44:14,320 yeah notices. So yeah, that. 762 00:44:14,320 --> 00:44:17,200 Was one levy Bloody's lock and gold. 763 00:44:18,200 --> 00:44:20,000 Oh that's bloody. That was the bloody main ones 764 00:44:20,600 --> 00:44:23,240 so. Moneymine.com if you want to 765 00:44:23,240 --> 00:44:25,640 find out the rest of them. Love your work and bloody 766 00:44:25,640 --> 00:44:29,040 there's a shit load of websites in the links of the in the show 767 00:44:29,040 --> 00:44:31,240 notes for all these followers and ladies. 768 00:44:31,240 --> 00:44:35,280 Mineral mining services The open pit gurus, grounded the camp 769 00:44:35,280 --> 00:44:37,160 gurus. Sandy ground support, Ground 770 00:44:37,160 --> 00:44:39,960 support gurus. CRE Insurance. 771 00:44:40,000 --> 00:44:41,840 Top of the show. Oh, bloody take. 772 00:44:42,120 --> 00:44:45,480 It take it. Taking you out to lunch gurus K 773 00:44:45,480 --> 00:44:51,960 drew RC and diamond gurus, Daesh sat geophysical gurus, saltbush 774 00:44:51,960 --> 00:44:56,880 contracting. Just shit job gurus and haulage 775 00:44:56,880 --> 00:44:59,200 gurus but they'll do freaking anything. 776 00:44:59,560 --> 00:45:03,520 Get wet solutions. The bladder gurus and Landman 777 00:45:03,520 --> 00:45:10,800 gurus. Guru Money Miners objectives, 778 00:45:10,960 --> 00:45:14,160 financial situation or needs of any particular person. 779 00:45:14,440 --> 00:45:17,480 Before making any investment decision, you should consult 780 00:45:17,520 --> 00:45:20,560 with your financial advisor and consider how appropriate the 781 00:45:20,560 --> 00:45:24,240 advice is to your objectives, financial situation and needs.