Alkane Resources Ltd (ALK) Earnings Call Transcript & Summary

Thank you for standing by. This is the conference operator. Welcome to Alkane Resources First Quarter Fiscal Year 2027 Results Conference Call and Webcast. [Operator Instructions] The conference is being recorded. Now let me hand the call over to Natalie Chapman, Alkane's Corporate Communications Manager. Please go ahead.

Hello, everyone. Thank you for joining our call today. Some housekeeping items to note. Please review today's press release for further details on our results and accompanying presentation for today's call is available for download from the company's website at alkane.com. For those on the webcast, please move through the presentation slides yourself as directed by our presenters. Moving on to Slide 2. I'll remind everyone that this conference call contains forward-looking information that is based on the company's current expectations, estimates and beliefs. Continuing on to Slide 3. Today's presentation will use terms that are non-IFRS performance measures. Please review Alkane's disclosure materials for the risks associated with the forward-looking information and the use of non-IFRS performance measures. I will also point out that all dollar amounts mentioned on today's call are in Australian dollars unless otherwise stated. Another thing to keep in mind during our presentation is that Alkane's fiscal year ends 30th of June, so that the period ending 30th of September 2026 is our first quarter for fiscal 2027. Please move on to Slide 4. Today's speakers from Alkane Resources are Nic Earner, Managing Director and Chief Executive Officer; and James Carter, Chief Financial Officer. I will now hand the call over to Nic Earner. Please go ahead, Nic.

Hi, everyone, and thanks for joining us today. This, I think we can all agree, is going to be quite an interesting day to be putting out a quarterly report. And so I fully appreciate you all being here to listen, and I expect you'll have one eye on Bloomberg as well. So let's get into the presentation. Let me start on Slide 5 by providing some of the highlights of the quarter we just completed. We've delivered a strong steady-state first quarter, and we hit our operational targets on the schedule we are after. This generated nearly 41,000 gold equivalent ounces in the quarter, which is 40,000 ounces of gold and just under 400 tonnes of Antimony, puts us on a pretty clear trajectory to meet our full year fiscal '27 production guidance of 163,000 to 177,000 gold equivalent ounces. Across the 3 operations, our throughput rates met our expectations. Our recoveries held steady in line with plan and our lower than previous grades were successfully balanced by higher processing volumes, and this was as we intended. So driven by our solid operational execution and our disciplined cost control, our 3 mines generated AUD102 million in cash flow for the quarter, which consolidates our strong financial foundation. So with this cash-generating capability, we have a strong balance sheet, and we've ended the quarter with AUD459 million of cash, bullion and investments. And as I've talked about previously on the last conference call, we're putting that cash to work, 2027 is a year of positioning Alkane for fiscal growth -- for future growth as we're looking to invest AUD160 million to AUD190 million of growth capital over this fiscal year, and we spent AUD37 million of it in the first quarter. And lastly, as we've talked about before, we're rewarding our shareholders who have supported our growth with the shareholder returns program. At the start of October 26, we paid our inaugural dividend of AUD0.02 a share, and we announced a share buyback program of up to AUD50 million. So let's move on to Slide 6. On a consolidated basis in Q1, we processed nearly 741,000 tonnes of ore at an average gold grade of 1.83 grams per tonne and an average Antimony grade of 1.1%. Recoveries of 89.6% gold and 89.1% Antimony remained consistent quarter-over-quarter. I've talked you through the 3 mines production of just under 41,000 gold equivalent ounces. And generally, as I said, these results met our expectation for the quarter. And as I've said, it was consistent, it was reliable. It was steady. So we're on track, reiterate to meet this guidance for both production and cost. And as well as the investment that we have to maintain our production and expand it and maintain cost control, we're also focused heavily on exploration to expand the resources and extend mine life across all of our mines. We're also continuing to derisk Boda-Kaiser, our large copper gold project. And to that end, on all of these plans, we're going to be investing AUD215 million to AUD255 million collectively on everything. So let me get into the detail by operation, and then of course, we'll answer the questions at the end. So Tomingley on Slide 7. In quarter 1, we processed 344,000 tonnes of ore, 6% more than in the same quarter last year. The difference being the extra crushing that I've spoken about previously that goes in before the circuit. The average grade of the processed ore was 2.16 grams per tonne, a touch lower than quarter 4 last year, and it's simply part of our mine sequencing. Recoveries were over 90% as we get into our straps, particularly with the fine grinding circuit. So despite the slightly lower grade, the better processing rates, the higher recovery, all balanced us out to 21,500 ounces of gold, just a little bit more than quarter last year. And our all-in sustaining costs were AUD2,340 per ounce or a touch lower than the same quarter last year. But please note, this is just simply timing of our sustaining CapEx. We do still expect to be within our cost guidance for the site for full year. So the site's operating cash flow was AUD52 million for the quarter. Growth capital expenditure during the quarter was AUD25 million, primarily for the Newell Highway realignment project, which we expect to complete over the next 6 months. As I've stated before, this alignment allows us to access that 200,000 ounces in the San Antonio open cut deposits, thereby obviously expanding our production sources and maintain the cost here on the site. So while it does take up -- this is the highway project, takes up most of our site's capital growth project over the year. Other initiatives that people should be aware of were purchasing mobile equipment and equipment rebuilds, and we also have a scheduled replacement and upgrade of our carbon regeneration kiln. Overall, a good quarter. Let's move on to Slide 8, talking about Bjorkdal. In Bjorkdal, we processed more than 355,000 tonnes of ore, higher than Q4 last year. Average grade of 1 gram a tonne and an average recovery of 85.5, both in line with our previous quarter. This meant we did 10,500 ounces of gold, which is a touch higher than the quarter last year. When we compare the 2 as in quarter 1, '27 now to quarter 4 2026, -- the higher throughput rates, basically, we just scheduled a little better than we did last year over the summer vacation period, and we have continued to do a little bit of crusher optimization. So the capital focus on the quarter, this growth capital was on 2 initiatives that we expect to expand production and lower unit cost with time. I've talked about this being our objective at Bjorkdal. The first was pre-stripping of the [Nelands] open pit with ore extraction actually now commenced in October, not the previous quarter, but now commenced in October. And the second was removing the till on the new portal to the Storheden deposit, which we expect to take our first cut in just a few weeks' time, and we already have lateral development across the Storheden from underground occurring, and we want that online within 2 years. And these initiatives, along with a substantial expansion of the tailings dam facilities as well as mobile equipment purchases like we're doing at Tomingley Costerfield, make up most of the AUD40 million to AUD50 million growth CapEx budget for fiscal 2027. The quarter 1 all-in sustaining cost of AUD3,012 an ounce was significantly lower than the corresponding period in the preceding quarter. And this is just simply the fact that we just have more ounces of a pretty fixed cost base. Operational cash flow, therefore, ended up at AUD20 million. So we had a very good quarter delivering to plan at Bjorkdal -- quite pleased with that. Moving on to Slide 9 at Costerfield, the gold and antimony mines. We processed over 41,000 tonnes of ore, which is more -- quite a lot more, 14%, sorry, higher than the previous quarter. Various initiatives have resulted in this, slightly improved mill utilization rates and blend control. However, also there, we are pre-crushing. Again, we have a pre-crusher to spread the load out of the crushing circuit, and that gives us a better size feed, which gives us higher throughput rates. In quarter 1, 2027, the gold and antimony grades were 6.5 grams a tonne of gold and 1.1%, respectively. Now yes, this is lower than we intended, particularly due to overbreak in the hanging wall in the Youle and Shepherd area, but it's also just a scheduling issue as well with the higher-grade nugget ore body that we have at Costerfield. So overall, our gold and antimony recovery rates were 93% and 89%, respectively, both slightly lower than previous quarter, mostly due to the head grade. And as a result, we produced nearly 8,000 ounces of gold and just under 400 tonnes of antimony. All-in sustaining costs were AUD3,194 an ounce, higher than the preceding quarter. And this is primarily just due to the lower ounce production. But as well as that, just to be completely clear, when we talk in equivalents, the decline in the antimony prices also had an impact on the ounce equivalent production contribution from antimony. And I'm sure we'll take questions on that. But roughly U.S. dollar antimony price is about $13,000 per tonne at the moment on the Shanghai Metal Market. Capital plans of AUD30 million to AUD40 million at Costerfield throughout financial '27 are focused on the development of Brunswick South as well as equipment replacement and both of those things are occurring. And our cash flow after all of the things I've said was AUD29 million in quarter 1. Going on to Slide 10, the mineral resource and the ore reserve. People have heard me speak, we're trying to drive organic growth by increasing our mineral resources, and we have quite an aggressive exploration program across the operations. So during the quarter, we released our annual mineral resource and reserve statement that showed the initial results of that plan. Our mineral resources increased nearly 8% net of depletion, measured and indicating are now starting to approach 9 million ounces of gold, so of 8.7 million ounces of gold, 1 million tonnes of copper and 42,000 tonnes of antimony. Inferred resources are nearly 4 million ounces of gold, 450,000 tonnes of copper and another 13,000 tonnes of antimony. The largest growth has been at Bjorkdal with the new Storheden deposit, the largest impact there. And a reminder, the inferred resources, of course, include Boda-Kaiser. On Slide 11, you can see the exploration focus at Tomingley for the quarter was expanding near-mine mineral resources with the area between Roswell and Wyoming 1 is Bullet 1 as well as extending the newly discovered mineralization west of MacLeans resource. This is our Bullet 3 on the picture. Drilling was also undertaken to further investigate a mineralized monzodiorite package immediately to the north of Roswell, is Bullet 2 on the picture. Beyond the near-mine work, of course, we have a larger goal of finding the next million ounce deposit near Tomingley, focusing on El Paso and Peak Hill as well, Bullets 4 and 5. I'm going to take a moment just very briefly and obviously take questions on people want to discuss Peak Hill and the objective and results of the deep hole that we drilled at the Peak Hill historic gold mine. As we announced on October 15, the drilling was testing for a potential copper-gold porphyry system, which we hypothesized to exist below the high sulfidation system we previously mined. While the drilling didn't fully resolve this porphyry target, it did successfully intersect the continuation of the mineralized high-sulfidation epithermal system, approximately a kilometer below the proprietary open pit historically mined by Alkane in the late '90s, demonstrating significant vertical continuity of this alteration mineralization. So key results, you can see there on the screen, 6.4 meters of 0.42 grams per tonne gold from 1,000 meters to 153 meters at 0.11 grams per tonne of gold from 14 27 meters. Look, the takeaway from this is this confirms this system remains open at depth, and it may transition towards a deeper porphyry resource, but -- the results also highlight substantial exploration upside beneath the existing resource, so above these holes and below the existing resource. And we have a further 6,600 meters of follow-up drilling planned in this quarter, the current quarter we're in to test for high-grade extensions and better define the scale of the mineralized system. Obviously, all with the objective of saying, can we put Peak Hill into the potential feed future schedule for Tomingley. Let's go to Slide 12, exploration at Bjorkdal. So the focus here at Bjorkdal is to expand the resources whilst fully utilizing the plant and thereby extend the mine life further and reduce cost by delivering higher-margin ore. So during the quarter, 29 diamond holes totaling nearly 16,000 meters were completed in the North Zone and Eastern zone near the mine, near our existing underground mine. Drilling confirms strong grade continuity, extensions of mineralized vein systems and several high-grade gold intersections were returned. So the infill and extension drilling on the North Zone, that's bullet 1, included over an ounce a tonne of gold at 0.85 meters and the Eastern Zone bullet 2 included 81.3 grams a tonne over 4.4 meters. Now remember, here we're exploring narrow veins that we mine in bulk, and we have the expertise to mine this efficiently. So these results just simply show, as we've often communicated, the Bjorkdal mineral system remains open both along strike and at depth and supports ongoing resource growth and further mine life extension opportunities. So our current and planned exploration drilling, we continue to target along strike and down-dip extensions of this known mineralization. And then, of course, we want to further expand the resources and find the highest grade feed. But exploration of the Storheden deposit, Bullet 3, which is an exciting new prospect, 700 meters north of the Bjorkdal mine, which we are already developing to, as you heard me talk about cutting a portal and developing laterally, shows -- still has very significant growth potential. 16 extensional diamond drill holes completed in early '26 extended this high-grade gold mineralization and confirmed the mineralized system now is defined over 2.7 kilometers strike length and a depth of 460-plus meters with mineralization open in all directions. We're going to aggressively explore this target. Let's move to Slide 13 at Costerfield. Similar to Bjorkdal, our goal is particularly here to extend mine life and also reduce costs with higher grade. So during the quarter, close to the current mining operations in the central corridor, drilling was primarily directed towards extending the mineral resource at Kendall, Brunswick South and Cuffley deposits, bullets 2, 3 and 4, and work also included follow-up testing of the newly discovered mineralized trend located to the west of Brunswick South. We are now calling this Bentley because we're even confusing ourselves with the directions that we're talking about. And this continues to demonstrate potential for additional high-grade mineralization. At True Blue, Bullet 1, we put 33 additional drill holes consisting of 19,000 meters there. And -- the high-grade intercepts confirm the continuity and economic potential of the system. And as I've talked about last quarter, we've got greater structural complexity. So we're doing step-out drilling in and around True Blue. So at the Brunswick South deposit, which we're developing towards at the moment, we did an extensive 91-hole infill and extension drilling program, and there's confirmed continuity between 2 principal mineralized domains, an upper antimony-gold shoot and a lower gold dominant zone extending over approximately 400 meters in strike. And a reminder, this is just 200 meters from existing development, and we're commencing development before it. We've allocated capital to it, and we want it to be a primary production source of Costerfield. So exploration at Cuffley in the sub KC system, which is Bullet 4, we resulted in the discovery of another high-grade mineralized domain between the previously mined high-grade panels at Cuffley and continued expansion of the emerging Sub-KC deposit at depth. And so this newly defined Cuffley mineralization is readily accessible from existing underground infrastructure, and we've incorporated this into our life of mine. And ongoing drilling at Sub-KC continues to demonstrate strong potential for further resource growth and new mineralized repetitions along strike. And so we continue to do structural analysis to work out exactly where should we be drilling here because it's quite tantalizing. North and East of Costerfield, we're drilling recommenced on the Northern Dykes, which is Bullet 5. And there, we're targeting mineralized igneous intrusions similar to Sunday Creek, which you might be familiar with. So it's owned by Southern Cross Gold and depth extension testing at the Browns deposit in Bullet 6. So Slide 14, I'm just going to touch briefly on the Northern Molong Porphyry Project that encompasses our Boda Gold-Copper project and the Nagambie. So at Boda and the Northern Molong Porphyry Project in general, we did soil sampling, which will aid in defining a planned 4-kilometer RC drill program. And there, we're testing just scale potential in and around. And then other lower cost activities, which are very, very intensive, but not costing us that much include the continuation, sorry, of environmental baseline studies. We're doing stakeholder consultations. We're negotiating with property landholders. We're selecting sites for infrastructure. We've got the purchase underway of additional tenements in and around our prospects, and we're negotiating our infrastructure. So we're on path for a project approval application at the end of next year -- at the end of calendar 2027, so midway through financial year 2028 and a subsequent investment decision on approval. And let me take a second to talk about Nagambie project, where we have an earn-in joint venture. This project is 40,000 from Costerfield, and it might play, hopefully, an important part of that future of Costerfield. So during the quarter, nearly 6,000 meters were drilled beneath the historic western pit of Nagambie, confirming continuity in the high-grade of the epizonal gold-antimony system. We put out the results just earlier this week. And some highlights included a hole, including 3.3 grams per tonne of gold and another with 2.5% antimony. Results continue to highlight strong similarities with the Costerfield Gold Antimony system, and they demonstrate significant resource growth potential with mineralization remaining open at depth and along strike. So we still have 2 drill rigs going there, and that's focused on further defining the extended system and assessing further exploration upside across the project. And with that, I'm going to hand over to Jim to provide a review of our financial performance.

Thanks, Nic, and hello, everyone. So here on Slide 15, group revenue for the quarter was just under AUD206 million. That was on sales of just under 38,000 ounces of gold and 172 tonnes of antimony at average gold prices of AUD5,128 an ounce, which is about 9% lower than the June quarter. I think we're all familiar with the gold price movements. Average antimony price in the September quarter was just under AUD 24,000 per tonne or just under $17,000 a tonne. And that was 22% lower than the previous quarter. And Nic touched on that earlier in the presentation around gold equivalent ounces and perhaps people might have a question about those markets. We also delivered 7,800 ounces of gold hedges during the quarter, and that's at that average price of just under AUD 2,900 per ounce. So that only leaves us 21,000 ounces of gold to be delivered and forward to the rest of this financial year at around AUD2,850 per ounce or roughly in the order of about only 15% of our production over the next 3 quarters. So all-in sustaining costs for the September quarter on a group basis were AUD 2,805 an ounce, just under $2,000 per gold equivalent ounce produced, and that was 7% lower than the June quarter. And operations at that mine operating level generated pretty good margins at AUD2,323 per gold equivalent ounce over the all-in sustaining costs. Sustaining capital during the quarter was AUD13 million. Most of that is expenditure across the 3 operations on underground decline and other associated capital development. Just turning to growth capital. That was AUD37 million for the quarter. And we talked about this before, but the major expenditure there really is at Tomingley on the Newell Highway realignment project, some mobile equipment purchases and rebuilds at Tomingley and Bjorkdal and also the lifting and extension of the tailings storage facility at Bjorkdal. Exploration expenditure, about AUD9 million. Nic went through those slides earlier on the presentation. So we're still at the point where we expect to meet sustaining capital, growth capital and exploration targets for the financial year. And we had previously guided in FY '27 that this really is a year of reinvestment to grow our business -- and so naturally, we should expect the timing of sustaining and growth capital and exploration spend to vary across the quarter. So we do expect subsequent quarters, we're going to reflect that, and you should see slightly higher all-in sustaining costs. And that's why we haven't changed our full year cost guidance despite a really good quarter in September. So I'll turn to Slide 16 now and just we'll talk about cash flows, and we've got the cash flow waterfall there. So September operating cash flows from our 3 operations were AUD102 million. Some items of significance that we haven't already discussed was we did pay our Alkane maiden dividend. That was AUD24 million. A bit of a timing issue there. We'll have about AUD4 million, which was paid in the very beginning of October, and that was to holders on the TSX. So you'll see that cash outflow in the AUD4 million cash outflow in December quarter. AUD13 million for normal corporate income tax installments and AUD21 million in the column there for corporate and other expenses. So that does include AUD9 million for corporate and some of that's business development as well, AUD2 million for Boda, Lupin, AUD11 million of Lupin. So planned expenditure during the quarter there over the summer period at Lupin, which is going really well and AUD4 million of interest revenue. And so we have -- and then a net inflow, which is a receipt of AUD8 million of cash return from bonds, which we previously used to have cash back. And just to guide for the next quarter, which everyone in this industry in Australia will have is that we should expect in our December quarter to make our final true-up tax payment for financial year 2026 of around AUD55 million to AUD60 million as we just go through and finalize those tax returns. During the quarter, we launched a share buyback program. That was up to AUD50 million over the next 12 months, which I guess at a share price of around AUD1.70 represents about 2% of the shares on issue. To date, we haven't initiated any purchases as part of that program, but we do expect to opportunistically throughout the financial year for the next -- really the next 12 months. So at 30 September, financial position remains really, really strong. We've got AUD 450 million of cash, bullion, and unlisted investments. And if you include the undrawn line of credit facility, total available liquidity is just under AUD570 million. So yes, that's a strong overall finance position really underpins the foundation to continue to reinvest, which is what we're doing and fund growth opportunities across the 3 operations, including the development of Boda-Kaiser, allows us then to, after all that, provide for shareholder return program with dividends and opportunistic share buybacks. And -- but it's still got a lot of flexibility on the balance sheet should we see any opportunistic strategic or value-accretive opportunities as they arise. So with that, I will turn the call back to you, Nic.

Thanks, Jim. So leveraging that financial strength Jim has outlined, we believe we have a very good foundation to deliver on our 2-part strategy: number one, continued steady-state production whilst maintaining or ideally lowering cost to drive overall margins. This increased our cash-generating capabilities to fund growth initiatives and shareholder returns. And to this end, I think people can see we're meeting our production cost targets. We're delivering our capital programs on time and on budget, we're aggressively drilling across the entire portfolio. So we are meeting that objective, and we believe that we'll be able to release long-term value for that. So why don't we just get in amongst the Q&A? And so hand back to you. Thanks, Maggie, please.

[Operator Instructions] Our first question comes from the line of Al Harvey from UBS.

Maybe just starting off with the exploration side of things. I wanted to get a bit better understanding of that tenure increase at the Northern Molong Porphyry Project. I'm just trying to get a better sense of the strategy here and maybe how you're thinking about growth more broadly. I know you kind of touched on exploration to extend mine lives at the existing ops, but thinking more about longer-term growth.

Yes, absolutely, Mate. So we -- we're in the process of picking up this document exchange and all sort of stuff, tenure from Alice Queen to the east and then curving around to the north of the tenement package. There's a 2-part strategy here. this is not so much looking for supplementary resources, but making sure that the potential infrastructure footprint that we expand that, we can do sterilization drilling and all the sort of other stuff without impacting another tenement holders. So yes, that's to be frank, driving this a lot more than looking for exploration potential up to the north, even though, of course, we will do that.

Yes. Thanks, Nic. So just to be clear, is that an incremental -- like incrementally, you guys are thinking a bit more about -- positively about Boda-Kaiser development longer term? Is that a fair read?

Yes, that's very fair. We are -- at the moment, we have biologists on the ground doing all the flora and fauna studies across this summer. We have modeling occurring of different water supply and tailings dam options. We're back revisiting the pit designs in more detail, all with a view to having these applications in next year. So absolutely, that is the read, yes.

Yes. Awesome. That's great. And I suppose just thinking about the buyback, I mean, based on my valuation and consensus valuations, it would be very accretive to buy back stock at current levels. So I suppose how are you thinking about balancing that with those growth plans you kind of just mentioned?

Yes. So we believe -- I mean -- and this is all assuming the gold price doesn't just completely collapse back another $1,500 an ounce from where it is, right? But we believe that we're more than funded to meet the full AUD50 million buyback as well as meet all the growth programs that we have and maintain an incredibly robust cash position. So it will be the gold price and the free cash flow, particularly in the next financial year that drives how much we look to increase those distributions by the 2 methods. But yes, we believe we're absolutely set.

And maybe just finally before I queue up again. Just to clarify that the Peak Hill high-sulfidation epithermal mineralization hit, I just wanted to clarify, did you say that could go straight into the Tomingley mill if you proved it up.

Yes, yes. So yes, thank you. That's a good clarifying question. So underneath Peak Hill, the ore that is there is refractory. So we will need -- should we mine it, we will need to do some sort of oxidative treatment, be it pressure OX, BIOX, Albion, one of those type of approaches. So a potential scenario, of course, is establishing an underground crushing and transporting up to Tomingley, which obviously we need all approvals, external approval is a fair way away from that to then to then we'd have to do an oxidative step there, yes.

But just to be clear though, is the plan still to kind of target the porphyry potential under Peak Hill? Or do you feel like it's moving more towards that high-sulfidation?

Sorry, both. Immediate obvious production plan to assess is what I just described. Long-term exploration potential, we continue to look for what on earth has fed this system. But one is an immediate thing that we're studying, working through, running the economics on, seeing what the approval pathway needs to be for that. The other is just purely effectively greenfield exploration.

Awesome. I might just sneak one more in to say queuing up again. Just on the Nagambie earn-in, I think the first hurdle is AUD12.5 million. How much of that through are you so far?

I couldn't -- I'm sorry, I didn't prepare that number to have. But it's not remarkably a couple of million dollars. Yes. We've got 2 rigs running. So probably -- so that's 12.5 million over 3 years, though, don't forget. So yes, sorry, Mate, but we've only got 2 rigs running in a modest team there, so be a couple of million.

Next, we have David Coates from Bell Potter Securities.

Congratulations on a good quarter. Just a couple from me. A little bit technical the low grade or the lower grade saying the dilution issues that you had, are the low grades sort of associated with softer ground? Or is that just a bit of a coincidence and something you're working your way through? Or should that be something we should be cognizant of in all parts of the ore body?

Yes. So it's not -- sorry, David, it's certainly not something that I would -- I'm trying to steer or guide people toward being a continuing ongoing thing. Just at different points within the Youle Shepherd the ore body turns over sort of even 60 degrees in some very small sections, even 45. We can't effectively cable bolt that hanging wall in any kind of cost-efficient manner. And so we do get overbreak. And because our host rock is not mineralized in the slightest fashion, all overbreak is pure dilution. That said, it only happens every now and again in a couple of different spots of the ore body. So we had anticipated dilution, but we got probably a few thousand tonnes more dilution than we'd even anticipated.

So it's more about the ore body geometry than sort of mineral...

Exactly, yes.

And you were just chatting about the development pathway to Boda-Kaiser. Can you just run us through, I guess, like sort of what the pathway looks like to an FID?