29Metals Limited (29M) Earnings Call Transcript & Summary

Thank you for standing by and welcome to the 29Metals Limited Full Year 2023 Financial Results Conference Call. [Operator Instructions] Now I'd like to hand the conference over to Mr. Michael Slifirski. Please go ahead, sir.

Thanks very much, Nick. Good morning, ladies and gentlemen. We will be speaking to the presentation titled 2023 Full Year Results in Mineral Resources and Ore Reserves estimates, which was released to the ASX this morning along with our Appendix 4E and Annual Financial Report, Full-Year Results Summary Release and 2023 Mineral Resources and Ore Reserves Estimates. This call and parallel webcast is being recorded and will be available for replay via the 29Metals website and also the Open Briefing website. 29Metals' Managing Director and CEO, Peter Albert, will present an overview before handing over to our CFO, Peter Herbert, to lead you through the details of the financial results. Peter will then hand over to Lucas Williams, Group Manager, Geology, to talk to the 2023 MROR highlights. We'll then open the call for your questions with the full exec team available to address them. I'll now hand over to Peter Albert to commence the presentation. Thank you, Peter.

Thanks, Mike. Good morning, everybody, and thank you for joining us today. And as Mike said, Peter Herbert, Lucas and myself, we will be doing the presentation. We do have a full executive team here to respond. And as Mike said, this morning, we released our 2023 full year financial results as well as our mineral resource and ore reserves estimate. These financial results follow on from our 2023 Q4 release and 2024 guidance we announced to the market a couple of weeks ago and for context, they are in line with what was presented at the half year in August '23. So hopefully, there should not be too many surprises. Everybody should be able to see our presentation, which summarizes our results, and we will refer to slide numbers as we go through the presentation. Slides 2 and 3 contain important information relevant to today's releases, and if we move to Slide 4, this is a snapshot of who we are and what we have and as a reminder of 29Metals' investment proposition. To recap, we have an enviable metal endowment with 2.25 million tonnes of copper, 2.3 million tonnes of zinc, and over 1 million ounces of gold plus silver, lead and cobalt. Importantly, our mines remain -- our ore bodies remain open and at each of our 2 Australian mines, we have approximately 60 million tonnes of resources at each mine with plus 10-year mine life based on ore reserves alone. Turning to Slide 5. This slide captures the progress since the extreme weather event at Capricorn and the progress we have made at Golden Grove in respect of setting up the mine for future success. The slide also outlines the key drivers for performance for the year ahead. In the year that was at Capricorn after the extreme weather event, we successfully recommenced mining and processing at the Mammoth and Greenstone Mines in August, and the recovery plan continues as we progress Phase 2, which will be the restart of mining at Esperanza South. At Golden Grove, we completed major debottlenecking projects that will enable future progressively higher metal production. Three examples of major enabling projects completed last year are: firstly, the commissioning of the ventilation system to support Xantho Extended; secondly, the completion of a tailings capacity increase on an existing facility; and thirdly, the submission of an application for a new long-term tailings facility. We also had a site-wide focus on efficiency opportunities, resulting in sustainable cost improvements of approximately $20 million for the year, largely offsetting the impact of inflation that continues to be reported across the sector. Productivity and further improvements in cost performance are a focus in 2024, with all senior managers across the group engaged in this program. In the context of the challenges we are facing, we intentionally limited spend in exploration for the year. Activity was focused on resource conversion and extension in our existing ore bodies. And for an exploration cost of only $4 million, we achieved significant resource to reserve conversion, increasing reserves by over 15% to 35.7 million tonnes, including a 2.9 million tonne reserve at Cervantes. A testament to the exploration team and the quality of our rocks. And Lucas Williams, our Group Manager, Geology will talk to this shortly. Looking ahead to 2024, the focus is on regulatory approvals of both mines. I've talked to Golden Grove tailings already. At Capricorn 2 specific near-term activities. Firstly, the approval for the interim tailing capacity critical to maintaining uninterrupted operations and to progress the recovery plan. Very close engagement continues with regulatory stakeholders and the office of coordinated general, and we expect to have a clear line of sight on the approval pathway during the current quarter. And whilst the time line to an approval outcome is not yet fully developed, the regulator and the office of the coordinated general have reconfirmed their commitment to work with 29Metals to achieve a result which provides the continuity of operations. There's still a few steps to work through to finalize the timetable, but we are certainly encouraged by the communications we've had with both of those entities. Secondly, the submission of an application for our proposed new long-term tailings facility. Preparation of this application is well advanced and will enable Capricorn Copper to move away from the recent cycle of regulatory approvals for short-term solutions. And as mentioned previously, an absolute focus across all areas of the business on efficiency and cost improvements. We've also continued discussions regarding potential offtake finance to provide additional liquidity, if required, as flagged during the capital raise in Q3 last year. And also, the Capricorn Copper insurance claim continues to progress. Turning to Slide 6. And before I hand over to Peter Herbert on the financial results, a quick reflection on a tale of 2 halves, with the second half of 2023 showing considerably better outcomes for the first half. And whilst Golden Grove can be a bit cyclical and Capricorn is not yet back into full production, we do expect a more balanced profile for production in 2024. And also worth recording that even with Capricorn Copper offline for much of 2023, our sales mix remains significantly copper-focused. So not only do we have a 100% Australian production, we are focused on commodities that support the global decarbonization goals. And as our Chair, Owen Hegarty said in his communication to shareholders last week, at every level of the business, we are entirely focused on achieving successful outcomes at both of our operations and on building the business for the future. 2024 is a recovery year to set us up for the long-term success. I'll now hand over to Peter Herbert to take us through the financial results in more detail. Thanks, Peter.

Thank you very much, Peter, and good morning to everyone. Thanks for your time. I'll start by covering the key financial results on Page 7 on the presentation, and then we'll step through some of the [indiscernible]. As reported in our December quarterly report 2023 was an extremely challenge year. The extreme weather events, operational interruptions at Golden Grove and lower commodity prices impacted our performance. This is reflected in our results for 2023. Group revenues were down 38% on lower production and commodity prices and EBITDA was negative $21 million in 2023 from a positive $152 million in the prior period. For context, for the 6 months ended 30 June 2023, 29Metals announced a net loss after tax of $307 million. The full year net loss after tax announced today increased to $440 million. This includes the impairments announced at the half year linked to the damage and suspension of operations caused by the extreme weather event at Capricorn Copper. In addition, and having regard to the recovery profile of Capricorn Copper, 29Metals determined not to recognize deferred tax assets of $58 million at 31 December 2023. This is reflected as the tax expense and contributed to the net loss announced today. Remembering, of course, that these tax losses remain available to the group for use in future periods. Now turning to Page 8 on costs. Site operating costs of $384 million were lower than the prior period by 19% reflecting 2 key drivers: lower activity levels at Capricorn Copper and constrained mill throughput in the early part of the year of Golden Grove, and cost improvement activities, mainly at Gold Grove, which partly offset industry-wide inflation repressures, and we're successful in holding site operating costs at Golden Grove within 2% of the 2022 results. Consistent with reduced revenues for the period, royalties and selling costs were 38% lower, reflecting [ lower sales volume ]. We lowered our production and reduced byproduct credits, group all-in sustaining unit costs increased 35% on the prior period. Turning now to the EBITDA bridge on Page 9, which outlines the key movements in EBITDA from 2022 to 2023, an EBITDA loss of $21 million for the year compared to the prior period result of $152 million profit. Three points to call out here. One, the change in EBITDA is dominated by the reduction in revenues for the period, partly offset by lower operating and realization costs. Two, net costs directly attributable to the extreme weather event of $20 million, which is after insurance proceeds received of $24 million and the on sale of gas under our long-term gas supply arrangements of $5 million at Capricorn Copper. Noting these costs exclude recovery capital expenditure. And finally, with stockpile movements and realized FX gains for the period largely offsetting one another. Turning to the group net result for 2023 on Page 10, a loss of $440 million for the period. Again, the results dominated by the impact of the extreme weather events with lower revenues, partly offset by reduced costs and lower D&A. The latter attributable to reduced activity levels at Capricorn Copper. Impairments, as announced with our half year results and the determination not to recognize deferred tax assets, as mentioned earlier. On Page 11, we set up capital expenditures, which reduced to $85 million for the period from $114 million in 2022. The period of suspension and reduced asset carrying values post impairments announced at 30 June, also resulted in lower D&A for the period. Exploration expenditure for the period of $4 million was also lower as the group managed spend and focused the program on resource conversion and extension with excellent results that Lucas will speak to shortly. Page 12 sets out the impacts of cash flows on net drawn debt in 2023. Lower sales and commodity prices as well as the direct and indirect impacts of the extreme weather event impacted operating cash flows. At 31 December 2023, the group had $55 million of net drawn debt after completion of the $150 million rights issue during the period. Turning to Page 13, outstanding drawn debt at 31 December 2023 was USD 146 million or AUD 217 million. Debt amortization in 2024 reduced to USD 25 million before stepping down again in 2025. This profile assumes no refinance of drawn debt. 29Metals continues to pursue additional liquidity through continuing discussions for offtake link finance and progressing Capricorn Copper insurance claim with $24 million received during 2023. Thank you for your time. I'll now hand over to Lucas to talk through the Group's 31 December 2023 mineral Resource and Ore Reserves estimates also released today. Thank you.

Thank you for the introduction, Peter. I'll be talking to the information presented on Slide 14. To begin, I'd like to set the context of 2023 exploration activity and the 2023 mineral resources and ore reserves we are reporting today. We took a targeted approach to exploration activity in 2023 with 2 key focuses. At Golden Grove, we focused on resource conversion drilling, particularly targeting the Cervantes ore body. At Capricorn Copper, we focused on further resource extension drilling at Esperanza South or ESS, and resource conversion drilling at Mammoth and ESS. Unfortunately, the activity was curtailed due to extreme weather event in March of 2023. Now turning to the 2023 mineral resources and ore reserves outcomes. Whilst there was a reduction in drilling activity at Capricorn Copper and the focus on increasing confidence in mineral resources at Golden Grove, we are pleased to report group mineral resource estimates now total 128.3 million tonnes, effectively maintaining the resources after depletion from production activities. Our focus on resource conversion and increased geological confidence in our resources has led to a group ore reserves estimates now totaling 35.7 million tonnes, an increase of approximately 4.7 million tonnes. We've contained copper metal increasing at Capricorn Copper and contained copper and zinc metal increasing at Golden Grove. A key contributor to this result is the work completed at Cervantes. With all the effort by the teams, Cervantes contributes 2.9 million tonnes at 1.5% copper, 4.8% of zinc to the Golden Grove ore reserves estimates. Moving into 2024, at Golden Grove, the focus will continue to be resource conversion and increasing geological confidence in the large resource base. With programs planned for Xantho Extended in Oizon, both high-grade ore bodies at depth. At Capricorn Copper, we have a drilling campaign underway targeting the area east of the port fold at Mammoth following the excellent results reported during 2023. We are on the second of 3 holes aiming to identify the orientation and potential extension of the area identified by the 2 high-grade copper intervals reported last year. The first hole of the program was not drilled to completion as it encountered poor ground conditions and could not advance through the target horizon. However, the second hole is progressing well, and we're excited by this program and the opportunity it presents to Capricorn Copper. Thank you for your time today. I'd now like to pass back to Peter.

Thanks, Lucas, and thanks to Peter Herbert. So, Nick, I think we can go from here to questions. And as we said earlier, we have the full executive team available here to answer and respond to any questions.

[Operator Instructions] First question will be from Rahul Anand of Morgan Stanley.

Look, I want to cover a couple of things. Firstly, obviously, around cash position, but then also the reserve and resource update. So if we start perhaps with the resource and reserve update, obviously, a good update there, an increase. Obviously, given most of the commodity prices remain unchanged. I just wanted you to help me understand just the drilling programs coming up at both assets and what can we expect in terms of changes to these moving forward? That's the first part of the question. And then the second part is just to note that there's a very small discrepancy between Capricorn Copper price assumptions and Golden Grove price assumptions for copper and currency, just wanted to understand why have those slightly different numbers. Is there anything specific to these assets that guides that. That's the first one. I'll come back with a second.

In terms of the 2024 program, I'll let Lucas talk to that in a moment. But just in context, of course, as we've indicated, very much in preserving cash mode, so we won't have a very extensive program. We're very successful last year in spending only a few dollars and getting the results that we have and we would hope to do something not too dissimilar this year in terms of managing for depletion and sustaining the resource and reserve base. But I'm probably getting out of my depth here, Lucas, I might ask you to respond to that. And if you can pick up the second part of that question, by all means, do so. Otherwise, we might, Ed can respond to the second part. Ed Cooney is here, Rahul, he will respond to the second part of the question. So over to you -- first of all, Lucas.

Yes. So it's a good question. The key at Golden Grove is their conversion drilling into Xantho Extended and Oizon. So the plan at this stage is we've got these long-term dual platforms that have been developed, which is fantastic. It's going to give us the opportunity to conduct both conversion and extension drilling from these locations. So this year we'll be just focused on the conversion side of things to begin with. So it will be a rig across multiple months in those locations and doing that work for us. Over at Capricorn Copper, the focus really is at the beginning of the year on this near mine exploration opportunity. So we're going to commit to these drill meters. And then there will be a period of, I guess, understanding and building up -- understanding on that geological information, and then that will guide a decision-making point -- at that point in time down the future. Whilst that's underway, there will be some additional conversion drilling that happens as well at Mammoth. So we've got rigs going at both sites at the beginning of the year. That will be the collecting or the geological data for us.

Thanks, Lucas. That's good. So the second part, Ed here. I'll take that one. So both assets use the same long-term prices, the $3.60 copper price and FX and the like for the -- at Capricorn Copper, again, different component person and the 24 pricing FX assumptions were based on budget, internal numbers and then reverting to long term. So if you average that out over the reserves, you see come out with a slightly different metal price and FX rate.

Look, my next question is obviously around cash. That's the key focus currently for the business. I guess there's 2 ways to look at it. One is the old government regulatory approvals. If they come through on time, you perhaps can make it through without requiring additional cash or otherwise, if your insurance claim comes through, that's another way that can help protect that balance sheet from another capital raise. So can you perhaps provide a bit more clarity and update on that? Firstly, perhaps on insurance claim just because in your introductory comments, you didn't talk about that. But then also your government approvals, you did mention that a bit in the introductory comments. Is there any further color you want to provide there?

Well, I'll take that -- the second part first again, and then I'll ask Cliff Tuck to respond a little on the insurance. So there's -- of course, it's not -- I can't provide too much more than I've said already. We're very encouraged by the correspondent communications we're having with both the regulated DESI, the Department of Environment, Science and Innovation, as well as the OCG, the Office of the Coordinated General, a strong commitment from those parties to ensure and assist the company to get through the current tailings capacity challenges. There's a time line that needs to be worked through. But we're encouraged by activities taking place in parallel to see us through the near term. So can't say too much more than that because there's obviously the work that's still ongoing, Rahul, but certainly positive sort of responses and communication between all 3 of the parties that OCG, DESI and ourselves. So on that note, I'll hand over to Cliff on -- to give a response on insurance.

So insurance, I'd like to take a step back to start off with, I think the first important point there in mind, Rahul, is that this is a significant insurance claim from a quantum perspective. You can see from the financial results we've reported today and the direct and indirect impacts that we're reporting for the extreme weather event and that -- it's not hard from that sort of clearly see that it's a high quantum claim that we're working through. As a consequence, life insurance plan does take time. And really with us, it is really -- it's the process of going through the adjustment, making sure the insurer has the information they want and they can see the progress that we're making in our recovery plan. In a sense the business insurance we have are not that different to the insurances that each of us has for our house and our car. There are certain repairs and other things that have to happen. You have to spend that money before you get it back from insurance. That having been said, the other contextual point on to flag. So we notified insurance promptly when the event happened of the claim. The formal claim was in -- around about early June last year. And within 3 months of that -- within 2 months of that, sorry, we had a progress payment and I'm not sure you know quite a significant progress payment of $24 million in that short time frame relative to claim. So where we are, the insurers said that the claims really got 2 parts to it, the surface component, so the property damage on surface and the associated [ BI ]. And then the underground component of the client damage underground and associated BI with the inundation of ESS, for example. As we previously reported, the insurers have accepted inhibitory on the surface component. And we are working through the detail and loss adjustment process there -- so validating the costs as they are incurred. On the underground, we and the insurers have a different view on how the policy responds to that and we'll work through that. But we're sort of working through the 2 parts to claims separately now to make sure that we progress them both in as timely a fashion as we can. I guess in closing, what I say, Rahul, is we appreciate there's a lot of interest in the progress of the insurance claim for a large claim at the time that we've taken so far is not that unusual. We're working through it methodically. We've got regular [ going ] with the insurers and we're optimistic of moving to other programs sooner on than later.

I mean you've obviously flagged that $27 million damage or loss to assets in the 170 impairment to Capricorn. I doubt the deferred tax asset is claimable per insurance policy of $60 million. So I guess, the scope of this is probably between the 24 you've received and up to 200, but it really comes down to what that impairment number also includes in terms of your forecast medium term. So I agree that it's a bit fluid at the moment, but if there's any updates here, please, that's very topical at this point in time. So I'll stop there. I'll pass it on.

Absolutely, Rahul. Just one minor point. Remember with impairments that we're dealing with book value, not replacement cost, just something to bear in mind.

So perhaps it's going to be bigger than in that case. The replacement cost versus book value?

Certainly different to book value.

The next question will be from Ben Lyons, Jarden Securities Limited.

I'd just like to tease out some of your comments around the focus on efficiency and cost initiatives this calendar year, please. Can you try and quantify any of those initiatives that are underway just noting that once again we've received a set of financial accounts with $35 million of corporate costs in there, which compares to a market capitalization of less than $200 million as we speak. So I'd love to love if you could stitch some numbers around what sort of costs you're actually trying to draw out of this business, please?

Just in terms of the program, if you like, and I'll get Peter Herbert perhaps to talk to a little to the detail that we can. But in terms of the program, we're running that out across the whole company, including corporate, including both sites. So of course, it's -- we've made some good headway last year and we've reported $20 million, which is not insignificant given some of the challenges we had. And it's not just about cost. It's also about efficiency. If you are the biggest bang for your buck, of course, Ben, is to make more metal. So it's about efficiency and costs. And we -- it's not just in relation to us. We're obviously very focused on our contractors and how they impact our business, and we've got very good engagement certainly from our major mining contractor, the same entity at both sites. And in terms of our structure, as I think I indicated in my notes, the management of these processes is very much in the hands of the senior managers at both sites across the senior management group at both sites and corporately the executive team here focused on the corporate activity. So just a bit of a pass to Peter Herbert, if you got any more you can add to that, Peter.

Yes, maybe just a couple of additional points of color to give you some guidance there. We haven't put out a number around what we're targeting, Ben. But as Peter mentioned, we -- through the efforts that we put in last year to do things like in-source or we run tenders and the like we estimate that we delivered about $20 million of savings relative to what we would have otherwise spent. The focus of that work was primarily only at Golden Grove and were sort of the obvious things that we could grab out in that year. So this year, there's a much more concerted effort to look right across the business. So we would -- whilst not giving you a sort of a specific number, what I would say is that gives you some feel for what we can see as the starting point for all the changes here and looking -- running our [ specific ] levels. The other point I would make is you've sort of referenced the corporate costs there, and I agree that looks optically large when you consider a company of market capitalization. A couple of points to remember there. One of the biggest chunks of that insurance is insurance costs, and that's primarily driven by ensuring the operations. This year, in the guidance, we've sought to kind of allocate those costs down to go and grow at least in the first instance to try and give a better sense of what is the true corporate cost once you take out the operating costs that are effectively reported at [ Cervantes ]. And in addition, there's a whole bunch of noncash costs in there as well around equity-linked compensation and the like. So a few moving pieces in there that make that number in terms of true head office costs, much more of than that headline result.

Second question, I guess, follows on a little bit from Rahul's line of questioning just around the overall group access to liquidity. So maybe if we just removed the insurance, the potential insurance proceeds from the conversation for a sec and focus on the discussions that you're having clearly with your offtakers or potential offtakers and how that might pertain to a refinancing of debt at the group level? Are we talking simply about the potential offtakers -- for concentrate repayments as one solution? Or are we talking about a much more holistic group level solution to the debt piece where, for example, you can term it out and you don't have this accelerated amortization profile, which is clearly quite confronting for the next calendar year.

Look, I think we're obviously staying in close communication with our senior lenders and working through that process with them. I mean those discussions the lives is typical to be -- too explicit betas, I am sure you can appreciate. But look, there are serious ways you can look at it. We wouldn't -- we would see any potential solution here as being a more traditional debt product rather than a sort of a specific sort of commodity-linked prepaid, but with a linkage to offtake facilities behind that. But the detail was sort of working through at the moment. So I can't say huge amount more at this time. Clearly, it's a focus for the company, and we hope to come back to the market as soon as possible.

And the final one, I'm not really sure who to address it, too. But just wondering if we could possibly get an update on the CEO succession plans, please, and how the search is going?

Not really in a position myself to respond to that, as you say, who to address it to. What I can say is that -- that process is ongoing. I believe it's reasonably well advanced. And I believe that the process is at a stage of interviews and the like and presumably looking to perhaps an individual person in place in the not-too-distant future, but I can't -- I don't have any more detail than that, Ben.

[Operator Instructions] Next question will be from Adam Baker from Macquarie.

Just one on Capricorn, if I could. Just there's been a couple of cyclones passed through [ Oizon ] region early this year. Just wondering how the operations are paired with the increase in rainfall? Has that the recovery plan offtrack or off schedule at this point in time?

Good question. Adam, thanks. I might ask Ed to respond to that.

Yes. I can do that. So late last year, it was relatively draw. Obviously, this year, we've had a few parts in the region. We have experienced some heavy falls, nothing like what we experienced last year, probably some other areas Southeast of Mount Isa were much more heavily hit this year. And that -- we have had some short interruptions to site access pretty usual for this time of year and some heavy lightning activity. But I would say that the enhanced service, water [ diversion ] and infrastructure that we put in place ahead of the wet season has certainly ensured that -- but no, we haven't had any water ingress to any of the underground operations. So we have commenced wet season -- traded water wet season releases as the opportunities present and continuing to focus on that.

And maybe for the dewatering despite south, how is that going? Have you reached the bottom of the decline yet? Have you started rehabilitation -- how much more volume of water is left to extract in that mine until you could potentially restart operations?

Yes. So we've completed the Northern [ caveat ]. I think as we reported previously, we've almost completed the deadline to the top of the Southern caveat. Our intention is to set up a [ raypole head ] and we'll drill holes deep into the Southern caveat and establish some submersible pumps looking to sort of commence and complete that project early March, and that will enable us to then increase the watering rates and rehab advance. So I still don't know have the number on top of my head, but certainly in excess of 50% of the water remaining underground in the Southern caveat that we need to do more.

Look, just in terms of the rehab, Adam, as I think we reported quarterly going well with [indiscernible] standing up as we had expected and replacing all the bolts and jumbo operation down, they're going well, I think, Ed?

Yes, the rehab is going well, and the ground support as expected.

And it sounds like you continue to have engagement with the regulators for the tailings and expansion. Just noting that you've got tailings and capacity till the end of April. Is that -- I think you mentioned before the approximate build times about 6 weeks. So getting pretty tight there from getting approval from the tailings and expansion and extension. So just wondering what the contingency plan is if you don't get that regulatory permit to expand the current selling capacity?

I wasn't too sure what the 6 weeks reference was. But the capacity that we have at the moment is well understood by the regulator. It's probably the best answer I can give you. And our time line is well understood by the regulator and the OCG and they are working within those time frames that we would anticipate to ensure that we sustain the operations. So that's our anticipation there, Adam.

Just in referencing what the actual build time for the lift of the ETF would take, but I appreciate you may not have given that guidance.

Sorry, just to clarify. The intention of the current application is raising the design storage allowance, so that the water level required a bit held in the pit ahead of 1 November and an ability to deposit tailings into the pit, which we have done previously as distinct from a second lift on the TSF, that application is still subject to ongoing response to request for information. So in the near term, it's the application and approval being sought is the deposition in the pit. Just to clarify.

There are no further questions at this time. I'll turn the call back over to Mr. Albert for closing remarks.

Thanks, Nick, and thank you, everybody, for attending today, and thanks for a good range of questions from Rahul, Ben and Adam. And I appreciate your attendance. And as always, if you -- anything to follow-up on, please reach out to any of us and especially to Mike. We think and we're pretty confident that we're setting ourselves up for future success here. We came through a series, a number of activities last year. Last year, as everybody is aware, pretty challenging, but notwithstanding that. So we did actually achieve some significant milestones, whether you're talking resource reserves or ventilation systems at Golden Grove, restarting Mammoth, Greenstone. So team is doing extraordinarily well under what were fairly trying conditions and not least of which, of course, inflationary pressures, labor pressures, especially in WA last year. So doing -- we think we're -- we've got ourselves into a position where we can advance this year, deal with those regulatory issues that were discussed and set ourselves up for long-term success here. Certainly, the reserve and resource base demand that is what we achieve. There's not too many other mines or companies in this space in the Australian context with sort of 10-year mine lives focused on critical minerals such as copper and zinc. So good -- we think -- we believe we've got a great future ahead of us here at 29Metals. So once again, thank you, everybody, and reach out if you need more information.

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