Alkane Resources Ltd (ALK) Earnings Call Transcript & Summary

Thank you for standing by. This is the conference operator. Welcome to Alkane Resources Fourth Quarter and Fiscal Year 2026 Results Conference Call and Webcast. [Operator Instructions] The conference is being recorded. [Operator Instructions] Now let me hand the call over to Natalie Chapman, Alkane Corporate Communications Manager. Please go ahead.

Hello, everyone. Thank you for joining our call today. Some housekeeping items tonight. Please review today's press release for further details on our results and the accompanying presentation for today's call is available for download from the company's website at alkres.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 and may also use terms that are non-IFRS performance measures. Please review Alkane's disclosure materials for the risks associated with this 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. And as a reminder, Alkane closed the merger with Mandalay Resources on August 5, 2025. Our group financial and operating results for the fiscal 2026 shown today only include 11 months from the Costerfield field and Björkdal mines and the former Mandalay operations, while including 12 months of results from Tomingley. Please note also that Alkane Resources is no longer required to publish a quarterly MD&A as per the rules of the TSX. However, we remain committed to engaging our shareholders in a proactive manner. To that end, we will continue to host quarterly conference calls and webinars to help maintain the highest level of disclosure and to provide a public forum where our shareholders can ask questions and engage with management. Please move on to Slide 3. Today's speakers from Alkane Resources are Nic Earner, Managing Director and Chief Executive Officer; and James Carter, Chief Financial Officer. I'll now hand the call over to Nic Earner. Please go ahead, Nic.

Thank you, Natalie, and thanks, everyone, for joining us today. Let's move to Slide 4. So as you can see on this, let me start by saying at Alkane, we've had a tremendous year of operations. The record production results along with our close cost management all happening in a historically gold -- historically high gold environment, allowed Alkane to generate record cash flows, which further increased our strong financial position. All 3 of our mines are operating really well. On a consolidated basis, we produced 42,500 gold equivalent ounces in the fourth quarter and just over 162,000 gold equivalent ounces in fiscal 2026. Remembering this doesn't include July '25 for Costerfield and Björkdal. So including them, gives the 168,300-ounce equivalent that you can see on the slide. So it's hard work and diligence from the entire Alkane team. I'm proud to say that we've met the top end of our production guidance. We've met cost guidance at each site, and we're just above our cost guidance for the group, which is a great result in what we can all agree has been a pretty turbulent environment. So these great results had our mines generated $174 million in operating cash flow for the fourth quarter and over $0.5 billion, so $567 million for the year. We ended the year with $454 million in cash flow in liquid investments on hand, which is an enviable strong financial position. This will allow us to aggressively grow the company through exploration and capital programs at each of our mines. It will allow us to advance the Boda-Kaiser Copper-Gold Porphyry project, also while seeking M&A to opportunistically grow the company. I'm also very pleased to announce that the Board is proposing to return to shareholders in inaugural dividend of $0.02 a share fully franked. This is subject to completion of the audit satisfaction of the Section 254T dividend tests under the Corps Act and therefore, final Board confirmation. Whilst this is our clear intention until these steps are completed, no assurance can be given that a new dividend will end up being declared or as to the final quantum or timing of any dividend that is declared. Let's move on to Slide 5. On a consolidated basis in quarter 4, Alkane processed more than 693,000 tonnes of ore at an average entry grade of 1.4%, recoveries of 89.5% gold and 91.1% antimony remained fairly consistent quarter-on-quarter. As a result, our 3 mines produced 42,500 gold equivalent ounces consisting of nearly 41,000 ounces of gold and 456 tonnes of antimony. For the statutory reporting year again without July '25, the Costerfield and Björkdal we produced over 162,000 ounces of record for Alkane. I'll get into specifics on each one shortly, but needless to say, all of our mines are operating very well as we head into fiscal 2027. So moving now on to Slide 7, sorry, I gave you the wrong slide number before. Moving on to Slide 7, at Tomingley. In quarter 4, we processed nearly 326,000 tonnes of ore average grade, just under 2.3 grams a tonne of gold, recoveries which is under 88%. All of this resulted in Q4 production nearly 21,000 ounces of gold slightly lower than Q3. For the year, Tomingley produced nearly 83,000 ounces of gold, which exceeded our production guidance. Processing continues to perform really well. The mill exceeds our original plans. And this is primarily, as I've mentioned in the last couple of quarters, a result of the continued use of a mobile crusher pre-crushed material brine entering the processing circuit. So pre crushing on material to difference -- it's different sizes, which we try to optimize our throughput. This continues, and people should now consider this to be part of our standard operating practice. Our capital expenditure in the quarter was allocated primarily for the Newell Highway realignment project. and construction is expected to be completed in Q3. So early in fiscal 2027 to early in calendar 2027. This, as people know, allows us to access the high-grade antimony deposits via 2 new open cuts and this great return project will sustain our growth in future cost profile. All-in sustaining costs in Q4 were $2,481 per ounce, essentially in line Q3. Our all-in sustaining costs for 2026 was $2,429 per ounce, which, as I said earlier, met our cost guidance for the site. So Tomingley generated operating cash flows of $76 million for the fourth quarter and a record $232 million for the year. Overall, Tomingley had an absolutely outstanding year, setting new records for annual production, mined ore tonnes for underground and mill throughput. Moving on to Slide 8, Björkdal. In Q4, Björkdal processed more than 331,000 tonnes of ore and an average grade of just under 1.1 grams per tonne, an average recovery of 85.6%. This result in Björkdal producing 9,935 ounces of gold. For the year, Björkdal produced nearly 38,000 ounces of gold, which met the site guidance. Remember, this doesn't include approximately 3,000 ounces produced in July 2025. I think we can all agree it's going to be quite rewarding going forward in fiscal 2027, not to have to keep dropping them out down. When comparing Q4 to Q3, lower grades and lower recoveries in Q4 resulted in a 20% decrease in gold production, but this is primarily as a result of us not feeding the very high-grade off-site trial material that I referred to last quarter. Our mine grade was in line with plan. We have slightly increased development tonnes in some higher-grade areas. Mill-throughput is consistent and we have projects to improve recovery across varying mineralization. Capital lifts -- capital works on lifts for the tailings dam facilities ramped up further during the quarter. This work continues for the next 12 months. Lower production resulted in higher Q4 all-in sustaining cost of $4,184 per ounce, which is a touch higher than in Q3. For 2026, our all-in sustaining cost was just under $4,000 per ounce, which is below our guidance. The operating cash flow from Björkdal was $48 million in Q4 and $156 million for the year. Overall, Björkdal had a very consistent year delivering to plan. Moving on to Slide 9, at Costerfield gold and antimony mine. We processed over 36,000 tonnes of ore. In Q4, gold grades were 9.3 grams per tonne, slightly lower than Q3 and antimony grades 1.4%, which is a bit higher than Q3. Gold and antimony recovery rates were 95.2% and 91.1%, respectively, all higher in the previous quarter. The mine produced 10,170 ounces of gold, in line with Q3 and 456 tonnes of antimony, which was higher than in Q3 as a result of the grade. For the year, Costerfield produced 37,000 ounces of gold and 1,224 tonnes of antimony, which met guidance for gold and exceeding guidance for antimony and please note that quarter-on-quarter grade variation is what we expect from such a high-grade nuggety ore body. But that being said, despite the natural variation, I just mentioned, grades were touch lower than plan due to some challenges associated with ground conditions slowing the drilling rate and access to certain areas. So mining, we continue to work on improvement programs drill and blast. We're transitioning our capital development team to own operator like we have in the rest of the group, focusing on operator training, increased focus on mine planning and we continue to transition to emulsion explosives to improve recovery and reduced dilution. The processing plant continue to focus on blend control to maximize throughput recoveries and produced metal. And we -- following on from the success at Tomingley we've had pretty good trials here at Costerfield as well with pre-crushing or feed to further improved throughput, crusher downtime and blend control and work continues in this area. All-in sustaining costs in Q4 were $2,568 an ounce, in line with Q3. And for 2026 all-in sustaining cost was $2,462 per ounce, which meant guidance. Costerfield generated $50 million in cash flow in Q4 and $179 million for the year. Like Björkdal in 2026 Costerfield delivered to our high expectations. Moving on now to Slide 10, Tomingley exploration. One of our key strategic initiatives is to drive organic growth by increasing our mineral resources by doing a pretty aggressive exploration program across our portfolio. So looking at Slide 9, if we look at our exploration targets for the quarter, we're looking at both near mine and regionally. Northern Extension of Caloma bullet 1 was tested as well as the southern extension to the Roswell deposit, which is bullet 2 on the screen. Drilling also commenced testing the areas between the Roswell and Wyoming One deposits, which is bullet 3, that's actually from our underground decline joining the 2 deposits. Further from the mine, we continue to work out regional targets in our ELs as well as on the ML testing, Wyoming Three and other near-mine targets. Regional drilling programs being progressed include Patrons, Tomingley One and Two, Peak Hill and Glen Isla. Moving on to Slide 11. At Björkdal, drilling during the quarter focused on increasing resources to extend the mine's life and also to bring new ore sources into production. On July 9, we announced the drill results to 29 drill holes in the North Zone, bullet 1 on your slide and East Zone, bullet 2. Efforts here were focused on infill and extension drilling, which resulted in pretty increased confidence in understanding of the vein geometry and grade controlling structures in the [indiscernible], which is very, very important at Björkdal. Highlight incepts at East Zone include nearly 3 ounces of gold over 1.25 meters and 81 grams of gold over 4.4 meters. And in North Zone, an ounce of gold over just under 1 meter and 25 grams per tonne of gold over 0.6 meters. These results show mineral systems still strong, still open at depth. So our future drilling is going to focus on step-out extension testing to assess this continuity of these known vein swarms and continue to refine the structural controls in each of these areas. We're exploring narrow veins, and we've shown we've got the expertise to mine efficiently over many years. Further to the Northeast. Drilling continued in the quarter to extend the depth of the store heading deposit which hosts multiple zones of steep quartz veins compared to those found in the main Björkdal deposit. Development of this area is one of our capital allocations for FY '27 at Björkdal. At the Norrberget target drilling was focused on resource extension. Moving on to Slide 12. At Costerfield, exploration drilling continued to focus on expanding resources. During the quarter, we drilled nearly 27,000 meters across the district. Underground drilling facts on testing targets, resource growth, reserve definition or surface drilling programs progress resource infill resource growth in target testing. On July 6 of this year, we announced results of 33 holes of the True Blue deposit, that's bullet points 1 and 2 on the image. The predominantly target infill of the upper portion of the deposit and this significantly increased confidence in understanding the vein geometry and grade controlling structures. Significant intercepts include just under 2 ounces a tonne of gold and 25% antimony over 0.25 at what we call the Freeman vein and 84 grams per tonne of gold and 15% antimony of 0.5 meter associated veins. These results give us the confidence to perceive with our plans for development at True Blue. Although I noted in the announcement of a time, I would have much more loved for these results would be even better and to know that we had 300,000 ounces this deposit. We'll be doing step-out drilling here while we continue to search those very high grades in increased density. Also on July 14, we announced the extension infill drill results from the Brunswick South vein, that's bullet 4 on your screen, with high-grade results, including 50 grams per tonne of gold and 26% antimony over 2.17 meters. I'm particularly excited, we're particularly excited about these results. As this newly found deposit not only contains pockets of a high gold and antimony but critically a significant quantity of antimony, which helps us keep our concentrate grades up. We believe Brunswick South can be brought online without extensive access requirements as it situated, just 200 meters from existing development. So we've already commenced development towards projects that in this quarter we're in now, so the first quarter of FY '27, and we've allocated capital for it in FY '27, and we're looking to establish as a future primary production source at Costerfield. Moving on to Slide 13, the Northern Molong Porphyry Project. This project, the entirety of the project is shown on the map on this slide, highly prospective gold copper corridor that also encompasses down the bottom right at Boda-Kaiser Gold Copper project. As we announced on June 10, exploration undertaken throughout this district, including testing the corridor between Boda and Kaiser, bullet 2 on your screen with 1 diamond and 1 RC hole here, which we saw further mineralization as expected. Three RC holes testing geochem geophysical anomalies Northeast of Boda-Kaiser, that's bullet point 4. Four RC holes testing different chargeability anomalies with the Comobella Intrusive Complex, which includes Glen Hollow and Haddington, that's bullet points 5 and 6, which in this area, we've had previous gold copper mineralization drilled by previous companies, and we also completed the Mobile Magneto-Telluric survey over the majority of the district to define target areas. Now assay highlights, in Boda-Kaiser we got mineralization at 23 meters at just under 0.2 grams per tonne of gold and 0.14% copper, including 3 meters at higher grades. Near deposit, near Boda-Kaiser we got 9 meters at 0.3 and district wide the best we have was 3 meters at 0.174. These results more add to our understanding of the project and showing the scale potential or possibility for future growth. One of the big things, which is a low-cost activity that we've been doing to advance the development of the Boda-Kaiser Gold Copper project in the quarter is the continuing of environmental baseline studies. We've been talking to a whole lot of different stakeholders when negotiating with some property owners to access or potential purpose. We've been working out where do we stick infrastructure and processing. So we're on the path that I've detailed in my recent presentations to put in a project approval application at the end of 2027 or early 2028 and have an investment decision in 2029. So as you can see, we've got a tremendous amount of exploration work going on, on each of our projects, the goal of expanding resources and driving new discoveries to increase mine life, increased production levels and lower costs. And with that, I'll now hand over to you, Jim. To provide a review of our financial performance. Over to you mate.

Yes. Thanks, Nic. So moving on to the Q4 and FY 2026 financial highlights slide. So group revenue for the quarter was $257 million on sales of 47,400 and a little bit ounces of gold equivalent, and that included 384 tonnes of antimony. Average gold prices during the quarter were just a little bit over AUD 5,400 per ounce, and that was about 14% lower than Q3. And I think people on the call will be familiar with that. Average antimony prices in the June quarter was $24,276 a tonne. That was about 30% lower than Q3. We also delivered 8,500 ounces into our gold hedge book during the quarter, just at an average price of $2,870 per ounce. And that leaves just under 29,000 ounces of gold to be delivered into those forwards at around about the $2,900 an ounce price over the coming 4 quarters through to June 2027. All-in sustaining costs in June quarter for the group were $3,011 per ounce gold equivalent produced. That was about 9% higher than Q3 mostly probably grade driven that Nic touched on earlier. And for the statutory reporting year, which is that awkward 11-month period for Björkdal and Costerfield, they were $2,907 an ounce gold equivalent produced, which is pretty close to the guidance. So operations generated mine operating cash flow is about $174 million in the June quarter, and that was about a margin of $2,431 per gold equivalent ounce over the AISC. So just note that our financial -- audited financial statements will be out in the sort of third week of August. So at this time, we not report -- we haven't got any earnings to report, but later, once that order is done, we get those out the complete set of financial statements. Sustaining capital during the quarter was $21 million. Most of that expenditure is associated with underground capital to grow across the 3 operations, mobile equipment purchases and rebuilds. Growth capital was $20 million for the quarter, and most of that was invested at Tomingley for the Newell Highway realignment or the eventual mining of the San Antonio open pit as we move later into 2027. Tailings dam construction lifting at Björkdal and exploration expenditures for June quarter were just under $11 million, which Nic covered previously in his slides. So if we move to the next slide, just to talk about cash flows, where we've got the cash flow waterfall. So if you see on the waterfall chart there, June quarter operating cash flows from the 3 operations were $174 million. Some of the items that we haven't talked about previously were $18 million of income tax installments. So they're just monthly installments that we make to the Australian tax office mostly associated with Costerfield and Tomingley at the moment. And later on in this calendar year, we'll have a square up where we just finish off paying what tax we go for FY '26. There's $20 million of corporate and other expenses. So in that bucket is really about $8 million for corporate costs, just a couple of million dollars this quarter for Boda and regional exploration. About $10 million for Lupin and there was a $4 million net repayment of our equipment loans. And so that's where we left at $430 million of cash at the end of the year or $104 million post-tax cash build for the June quarter. So a really good quarter there for cash build. So at 30 June 2026, we've got a very strong financial position. We got $450 million of cash pulling and list investments, and if you include our undrawn $110 million revolving credit facility, we've got total available liquidity of about $549 million. So we have a really strong overall financial position that underpins the foundation so we can aggressively fund our growth opportunities, which is what the plan is at all our operations. And Nic spoke about to pay in an overall fully franked dividend of $0.02 per share after the conditions that Nic talked about earlier in the presentation. And that all with the balance sheet still gives us all the flexibility that we do need to act on any strategic and any value-accretive inorganic opportunities as they arise. So with that, I will turn the call back to you, Nic.

Thanks, Jim. Moving on to Slide 16. As I mentioned, and you probably pick up, we're pretty proud of the efforts of the entire Alkane team, which, of course, includes so many great employees that have joined with Mandalay to ensure that we met our 2026 production and cost guidance, we're really happy we've successfully managed our way through the Mandalay merger and also with the other goals we've accomplished in the year. Most noticeably, I think we position ourselves to grow our business through capital initiatives, exploration programs, all while enhancing our financial position. Our primary goal for 2026 was to establish Alkane as a reliable, consistent producer seen by everyone to have a steady mantra of under promising and over delivering and our performance to date proves that we have done that. So Slide 17, let me focus on fiscal 2027 and the outlook that I've detailed on this slide. We have a lot of momentum already coming from fiscal 2026. So delivering the financial strength Jim just outlined, we're well positioned to lever on this dual track strategy. We're going to grow our production, albeit slightly continuing to try and constrain our costs in a very difficult cost environment and to increase, therefore, our cash generating capabilities to fund growth initiatives. But we remain singly focused on execution to meet our production and cost targets and aggressively drilling across our portfolio. It's a simple and proven strategy. So our plan for fiscal '27 are produced our guidance is between 163,000 and 177,000 gold equivalent ounces, slightly higher than this year and an all-in sustaining cost of $2,900 to $3,200 per gold equivalent ounce. Other deliverables list on this slide have ensured that Alkane grows and remains a competitive mid-tier producer. Without a doubt, our strong balance sheet gives us a distinct strategic edge supported by our steady operations during this period, which despite the disappointment of gold coming off nearly 30% is a very robust gold and antimony price environment. We're deploying our capital towards both organic and inorganic growth. We remain ready to move fast on the right opportunities, but our approach, of course, will remain highly disciplined. In closing, we're pleased with our performance to FY '26, and we believe we're well positioned to continue to drive long-term value for our shareholders and stakeholders. I personally would like to thank my entire team at Alkane for making '26 so successful. For the Board for supporting our strategy and to our shareholders for wanting to be part of the journey. I hope you've enjoyed the last 12 months. And with that, I'll hand back to you, Maggie, to start the Q&A session. Thank you.

[Operator Instructions] First question comes from Al Harvey from UBS.

Congrats on the results. Just wanted to kind of look at Costerfield and the Björkdal strategy there. Obviously, you mentioned in the press release getting some nice hits out of True Blue. You also started drilling out at the Nagambie JV, a couple of months ago and your neighbor, Southern Cross are having some success up the road at Red castle. So just trying to understand what you guys are hoping will come out of the exploration push there over the next 12 to 18 months. Are we thinking it's more life extensions? Or do you think there could be a pathway in time to justify an expansion at Costerfield?

Thanks, Al. It's Nic speaking. So number one is to extend the life. So in the last year, we've extended a further 12 months to have a very clear look at 4 years ahead of it. And we obviously have a line of sight on a little bit further beyond that. But this year's focus is we're going back to sort of grassroots testing to start to try and work up the multi-hundred thousand ounce resources like we had at Youle-Shepherd. And we hope to continue to get it True Blue maybe even Brunswick South. And then the purpose of that really is to try and extend the mine life out ahead of ourselves. And then all things going smoothly, particularly with Nagambie, once we have further than 5 years, preferably 7 years then we'll look at capital investment to increase production. Albeit modestly, right? So we do sort of circa 50,000 ounce equivalents, our next step unless we discovered something Southern Cross style would be to sort of try and move closer to that 70,000 ounces by going from the 150,000 tonnes a year to 200,000 tonnes a year.

Awesome. I'll just ask another one, maybe around growth options more broadly. So yes, looking -- I appreciate your comments around inorganic growth and there is that consistency in FY '26 and '27 on your deliverables just around identifying inorganic growth opportunities. So maybe just remind us on how you're approaching inorganic opportunities and then maybe how you weigh those up against options like Boda-Kaiser sitting there. and the equity stakes you have on the balance sheet, where you're got some substantial holdings?

Yes. So first Boda-Kaiser, we're deploying pretty much as much capital as is reasonable for this stage. So things that push us through the approvals process at the same time as really sort of right back to grassroots target generation through the district. So things that we would allocate capital on there include property purchases, water purchases, things that are fundamental building blocks that any owner has to put together. Across -- more broadly, so talking inorganic M&A, we look in Australia, New Zealand, U.S., Canada and Scandinavia. Ideally, we look for things that can supplement our existing assets there. We've talked about Victoria and they're pretty limited in the other jurisdictions where we have operations. So we look for things that give us not just a step forward in growth, but have the potential to grow even further. That's our ideal asset is something with growth attachment. So we're happy to pick up assets like our existing assets, but where we have open side growth, we could build those assets on top, if that makes sense. So the type of things that we're particularly interested in a lot of the conversations we have are around single mine producers who are saying, okay, I'm going to allocate 1 or 2 years of my cash flow to try and grow to the next stage. And were they to come together with us, then we would be able to derisk and accelerate that? That's our ideal acquisition.

Next, we have Kevin Tracey from Oberon Asset Management.

Can we just clarify how you view True Blue today? On the one hand, in the release you noted you have confidence to push forward with development, but it sounds like you were a bit disappointed as well. So how do you see the asset today, especially in the context of the exciting results at Brunswick? Do you see kind of development being pushed to the right? Or yes, I'd just be curious on your big picture views on True Blue today.

I understand. Thanks, Kevin, for the opportunity to clarify. So True Blue, we drilled, we had our initial inferred resource of 100,000 ounces. And I was certainly hoping that with this drilling program, I'd be able to say it's 150,000, it's 20,000, 300,000 ounces. That has not occurred hence my disappointment with that it's still a high-grade resource plus it's somewhere in that 50,000 to 100,000 ounce range, but it means that doing more step out or the team is doing more step-out drilling there to try and grow that to be a significant target. We still have applied for the mining license for it. We still intend to develop to it because we consider that, that's economic or will be economic. But it's not quite the amazing next step that I was chasing. Brunswick South is just something that we discovered next year when we were doing -- I mean last year, sorry, one we were doing extension drilling. That is looking really solid crossing much closer to the sort of target size that we had for True Blue. It's still unbounded at depth, and there may even be like a repeat lens a little further to the west here, and it's early days for that. But please do not read into that, that I'm yet saying that that's a plus 300,000 ounce resource.

Okay. And at Tomingley, can you remind us on the time line of the open cuts contributing to production. I think you said the highway would be done early in Q3. And then while back, this was, I guess, a ways back now, but the hope was that those open cuts would help Tomingley turn into a 100,000-plus ounce producer. And I'm just wondering if you could speak to that or update on that.

Yes, absolutely, absolutely. So first one, we expect to finish the highway early next year, like I said, and we are currently planning for starting open cut production in quarter 1 FY 2028. So in the July to September period of next year, in the July to September 2027. So that remains on track for us. That releases open cuts have circa 200,000 ounces in them. So we have 2 choices there. We can expand the mill and accelerate as and go to 100,000 ounces as we identify, we've got costing some plans and schedules for that. And as you can see, we're doing sort of 80,000 ounces from underground or we can continue at this rate and balance the higher grade feed having gone already to sort of around the 1.3 million tonnes per annum. At the moment, given the shorter mine life at Costerfield, I am intending to keep us at the current level of production. The main reason is that unless our exploration at Tomingley goes and we find another sort of Roswell sized deposit another 500,000 ounces, then all I will be doing is shortening the mine life there as well. And I think from a scheduling and production perspective and capital allocation and then exploration treadmill, that would be too quick for where we are at present, given we haven't made that step forward at Costerfield.

Okay. And final one for me. Can you give us some sense of the growth capital budget for fiscal '27? And if you have any picture on the corporate cash cost outs as well, that would be useful.

Yes. So corporate cash cost out should be very similar to this year. So the items that Jim just mentioned, we continue to do closure work at Lupin. So we have the better part of $20 million that will go out in this coming year. So that will be the thing that you see at corporate that sort of is currently grouped in the cash waterfall. With respect to our capital allocation, we -- I mentioned it within the quarterly report. We're going to go close to doubling that in this coming financial year from where we are at the moment. We will finish off the highway at Tomingley, we will do quite a lot of development towards Brunswick South and opening up that mine area, the whole new mining area at Costerfield. At Björkdal, we will commence development to Storheden. So we're going to -- our target there is to be bringing Storheden online in 2029. So it's 700 meters away, a whole new area. We're intending to develop the whole thing. And the reason we can't bring it online sooner is we have to do -- whilst we have a mining license or we have to do environmental approvals for that. We'll be lifting the Tailings Dam at Storheden and adding another 7-plus years there to Tailings Dam life and then integrating a further expansion of that into the capital approval process. And as well as that, we're replacing fleet, some of which probably should have been replaced at some of that at Costerfield and Björkdal in the last couple of years. So we're really trying to position ourselves to be as efficient as possible going forward.

We have Lawrence [ Retail ] from Retail Investor.

Nic, I just have several questions to ask. I'll start with the first one. The share buyback, is that still in progress? And does it occur on both exchanges?

Lawrence, we do not have a share buyback in progress. We have not announced one and we do not have one in progress.

Okay. Yes, because I know Mandalay was doing it. So I was wondering if that was continued.

No, no, sorry, that had stopped. And to talk very briefly about a buyback. At the moment, we're focused on getting this dividend in place. The Board continues to evaluate a buyback. But I think [indiscernible] you will have picked up, we've got quite some aggressive acquisition aspirations, and we're still hunting value there, realizing in our own shares, we consider to be pretty cheap as well.