Greatland Resources Limited ($GGP)

Thank you for standing by. Welcome to Greatland Resources March Quarter 2026 Investor Call. [Operator Instructions] I would now like to turn the conference over to Shaun Day, Managing Director of Greatland. Shaun, please go ahead.

Thanks, Krista, and welcome, everyone. I'm pleased to present Greatland's March 2026 quarterly results. I'm joined on the call by Monique Connolly, our Chief Financial Officer; Rowan Krasnoff, our Chief Development Officer; Otto Richter, our Chief Operating Officer; plus Andrew Bowler, our Head of Investor Relations. If we turn across to really the first content slide, Slide 5, we delivered another strong quarter, producing 82,000 ounces of gold plus 4,000 tonnes of copper. All-in sustaining costs came in at AUD 2,056 per ounce, which was below the lower end of our full year guidance, which is a range of AUD 2,400 to AUD 2,800 per ounce. Year-to-date, we've now produced 250,000 ounces and all-in sustaining cost of AUD 2,136 per ounce. This positions us very strongly against -- for the full year FY '26 outcome. And we said that we expect production to be around or slightly above the upper end of guidance with all-in sustaining cost towards that lower end of guidance. In the quarter, we sold 98,000 ounces of gold and 4,600 tonnes of copper. This delivered revenue of $742 million, operating cash flow above $450 million, and most importantly, you saw that record cash build of $260 million for the quarter. That allowed us to close March with over $1.2 billion at the bank, debt free. And this is particularly beneficial in terms of derisking the execution of our growth strategy. We announced an exceptional Telfer resource upgrade at the end of March, and that included expanding Telfer resource ounces to 8 million ounces. Group resources now stand just shy of 15 million ounces. And this substantial increase in the resource base has the potential to underpin a multi-decade operation at Telfer that operates alongside our world-class Havieron development project. When we announced that resource update, we also announced Greatland's first resource estimate for our 100% owned O'Callaghans Tungsten, and Rowan is going to speak to that later in our call. Our record Telfer drilling program continues. This is this 240,000 meter surge in drilling and with the drill bit delivering ounces at around AUD 5 an ounce, we're increasingly confident of extending that drill cadence, at least partially into FY '27, where we could end up extending that drill program out to say, 360,000 meters of drilling. Turning across to Slide 7. We now look at the key drivers of what we felt was a really strong March quarter performance. In that West Dome open pit, open pit total material mined, again, saw an increase through the quarter. We're now up to 6.8 million tonnes from when we started there, delivering about 4.4 million tonnes. We've had additional ore coming online from our new Stage 7 cutback has been a big part of the focus for us. It's the fifth consecutive quarter-on-quarter increase in material mine since Greatland took ownership and now represents a 54% uplift in productivity as a function of TMM since we took over in March quarter last year. The continued growth is a result of improved productivity with a focus on the drill and blast has been improved bench turnover and opened up larger, more productive work fronts. Plus, we just started to see the benefit of that investment in open pit fleet in the back half of this quarter. The open pit mill feed grade notched down slightly to just under 0.5 grams, as we saw a higher proportion of partially cost of material or a lower grade being fed directly into the processing plant, rather being stockpiled. This is all in line with our second half plan. And while this result does not downgrade, it avoids the rehandling cost of removing that stockpile. And has the added advantage of preserving some of those high-grade ROM stockpiles. In terms of the Stage 7 open pit, gross stripping continued with 2.9 million tonnes waste mined for the quarter at a strip ratio of 2.7x. That's down from 4.3x you observed last quarter as we move more into that ore body. As more ore is exposed and the ore contribution increases the overall Stage 7 design strip ratio is approximately 1.1x. So you'll see that continue to trend down, although we are looking at expansion opportunities around that Stage 7 design. Open pit grade reconciled as expected in the March quarter, which was another positive sign that our enhanced grade control system continues to deliver the improved reconciliation outcomes. Turning to the Main Dome underground. The ore mine was approximately 300,000 tonnes, which is again, a record quarter for us. Underground development is progressing really strongly with 1,776 meters of development, again, a new record in terms of productivity, and that includes about 368 meters in growth capital development. The other important thing for us is we continue to develop a second drive for that West Dome underground. That was progressed by about 255 meters, so we're just under 80% complete on taking out that second drive to the West Dome underground. Turning to Slide 8. In terms of processing operations, we milled 4.8 million tonnes at 0.59 grams gold head grade with milled tonnes up quarter-on-quarter. This result generated a modest decrease from the December quarter, but recoveries were tremendous, again, running above 88% for the third quarter in a row. The 88% is a tremendous outcome and a great credit for the team. Also copper recoveries were the strongest we've seen at 82.6%, which again was a really good processing outcome for us during the quarter. Turning to stockpiles. This quarter, we processed 1 million tonnes of ROM stockpiles. That's the high-grade stockpiles we have with an estimated 1.9 million, almost 2 million tonnes at 0.69 grams gold remaining at the end of the quarter. During the March quarter, the drawdown was about 1 million tonnes of stockpiles. This was a reduction from last -- in that December quarter where we drew down about 1.7 million tonnes of the high-grade stockpiles and that reflects that increased feed, particularly from the open pit. And pleasingly, stockpile grades reconciled in line with our expectations for the quarter. At the end of the quarter, we still have at surface, those low-grade stockpiles of 20.6 million tonnes at about 0.33 grams plus copper. And they are expected -- some of that is expected to be incorporated into that FY '27 mine plan as we continue to draw down that high-grade stockpile. We continue to work on the tower storage facilities with the stage -- TSF Stage 3 lift was completed, on schedule, on budget, which again, a great testament to the team at site. And that takes our installed tailings capacity out until March 2027 quarter. When we took over the asset, I think we had about 4 weeks, 5 weeks, of float on that tailings capacity. So pushing that out to 12 months is a really good outcome, and we're going to commence the TSF 8 Stage 4 construction in April, so that's already underway to continue to push that kind of bow wave of TSF capacity out in front. In regards to supply chain impacts, just 1 very topical with the conflict in the Middle East. To date, we haven't seen any operational impacts from fuel or other consumables. That said, specifically on fuel supply sourced directly from a global oil major on a long-term contract, which continue to fulfill its obligations. We've seen no change in deliveries. The focus is continuity of supply for us across all goods and services. And I imagine this is common across the Australian economy and the resource sectors. We are actively managing our supply chain logistics and have appropriate response action plans in place if required. Of note, Telfer maintains that really significant surface stockpile, just over 22 million tonnes at 0.36 grams gold at the end of the March quarter, equal to more than 12 months of mill feed. We think that's an exceptional buffer to have if there was ever a disruption. The Telfer mill is powered by WA gas delivered to site by a dedicated Telfer Gas Pipeline. Telfer's underground operation utilizes an electric shaft hoist reducing the diesel intensity of Greatland's highest grade ore sources. From a cost perspective, up until March '26, fuel constituted approximately 3.8% of our total cost structure. While there is a current elevation in the fuel price, and we've seen that almost doubled, it has been a limited direct impact on our cost base, given it's just 3.8% of direct costs. That said, escalation in fuel prices is generally inflationary across the economy, and that's going to impact the resources sector as well. So we're mindful of those indirect cost impact as well. With that, I'll hand across to Monique.

Thanks, Shaun. As outlined earlier, we achieved an all-in sustaining cost of $2,056 for the quarter and $2,136 on a year-to-date basis. This is a great outcome driven by strong ounce production, good cost control and stronger than budgeted copper byproduct credits from the current copper prices. Our all-in sustaining margin for the quarter was $4,717 per ounce. Looking at the key operating cost items, mining cost of $82 million increased as planned due to higher overall ore mined, higher total material moved and lower capitalized production stripping from Stage 7, while maintaining consistent unit rates per tonne across the quarter. Processing cost of $82 million were lower than the prior quarter due to lower surface maintenance costs incurred during the planned March mill shutdown, the processing of less Stage 2 material, which requires more reagents and consumables. Sustaining CapEx of $29 million was higher than the previous quarter due to higher spend on the underground development and site services costs of $19 million were lower than the previous quarter, with costs always weighted towards the first half of FY '26. Full year all-in sustaining is currently expected to trend towards the lower end of the guidance range of $2,400 to $2,800. Given year-to-date all-in sustaining cost of $2,136, the June quarter all-in sustaining cost is expected to be higher than previous quarters, which is driven by production being slightly lower off the back of ongoing lower grade stockpile trials, higher sustaining CapEx, which was planned to be heavily weighted to the last quarter, and you've seen that ramp up consistently quarter-on-quarter this financial year, and anticipated cost increases given the inflationary pressures as a result of the energy crisis that Shaun just spoke to. Turning to cash flow and finances. We generated revenue of $742 million from sales of 98,000 ounces of gold at an average realized price of $6,773 and 4,600 tonnes of copper at a realized price of $15,800 per tonne. Remembering that we began loading a shipment in late December, which only completed loading in early January containing 17,000 ounces of gold. The sale is recognized in January for accounting purposes, that cash was received in December for $119 million. This resulted in Telfer's operating cash flow of $450 million and $260 million cash build after the FY '25 annual tax payment of $73 million. We closed the quarter with $1.2 billion of cash and no debt, and we remain fully exposed to any upside in the gold price with downside protection by gold put options out to June 2027 at an average strike price of $4,560 per ounce. In regards to noncash movements, we had inventory movements of $48.3 million, and depreciation, amortization for the quarter of $43.6 million, and we've guided full year D&A of approximately $140 million weighted towards the second half of FY '26. From a tax perspective and also to just remind everyone that we've now moved into a taxpayer position. As such, a quarterly tax installment of $87 million was paid in April based on approximately 12% of installment income, which consists of sales and interest income for the March 2026 quarter. The tax installment for June 2026 quarter is expected to be paid in July, following which it is expected to grow and will be reassessed from the ATO for monthly installments for FY '27. The remaining FY '28 tax return catch-up payment will then be paid in December 2026. Overall, the March quarter highlights the strong cash generating capacity of the business, further derisking and providing flexibility and funding Havieron's development and Telfer's life extension opportunities. Turning to growth capital. As you know, FY '26 is a significant year of investment at Telfer with a view of multiyear life extension. Our growth capital program is progressing well and in line with plan at $42 million spent during the March quarter across TSF Stage 3 Lift construction, which Shaun has already spoken to, which is now complete and providing our tailings capacity into 2027. Preplanning work for TSF Stage 4 Lift commenced in April, West Dome Stage 7 open pit growth stripping continued and the underground development across ARES, ASC and West Dome underground as well as the open pit mining fleet renewal program. Telfer's growth spend is tracking to our full year guidance of $230 million to $260 million. In terms of resource development and exploration, we spent $16.7 million during the quarter, and at Havieron, we spent $27.5 million for feasibility study costs and early work. I'll now hand back to Shaun.

Thanks, Monique. And just while we're still on that slide. Just some very recent news actually from Friday, so subsequent to quarter end, Greatland did receive the Commonwealth EPBC environmental approval for Havieron. That's a really pleasing outcome. And I think the team did a great job at managing and controlling that outcome. So we're really pleased, although it's measured at this time, because just to remind people, we still are required also to have the -- that state EPA approval. So we continue to focus on that, although that continues to track on course. So getting the federal EPBC I think, gives us more confidence about our time program there at Havieron is an important milestone for us. With that, I'll turn to Slide 13, which effectively just talks to that resource growth. Towards the end of the quarter, we delivered an updated resource estimate for Telfer with the acquisition cost of resource out at a compelling AUD 5 an ounce. The Telfer resource delivered significant growth with Telfer adding an additional 4.8 million ounces of gold and bringing Telfer's total resource to 8 million ounces plus copper. The resource program has been transformational. Since acquisition, it's now better than 13x multiple from that 600,000 ounces of Telfer resource that we acquired at acquisition just 15 months ago. This, along with Havieron sees our group gold resource just shy of 15 million ounces. Importantly, measuring indicated resources at Telfer grew to 3.8 million ounces with this material to be considered as part of our reserve update, which will be delivered in the June quarter. In addition, Greatland released a resource estimate on the O'Callaghans tungsten deposit, which I mentioned, Rowan Krasnoff will speak to you later. Turning to Slide 14. This provides a visual of the resource at Telfer. As you see, there remains significant potential for further growth, resource and upgrade resource categorization in that West Dome open pit, Main Dome, and very much interim or initial resource at West Dome underground added or identified 600,000 ounces of high-grade material within that West Dome underground, and that remains a really key target for Greatland and that second drive going out there, we think, expedite the opportunities there. The inclusion of the vertical stockwork corridor, the VSC at the West Dome underground into the resource was also a key highlight, that sits at the bottom of the previously active sublevel cave and gives us an opportunity to consider extensions there. With Telfer's enlarged resource, along with that already at Havieron, it just shows the potential to underpin a multi-decade mining hub and Greatland focus now shifts to advancing higher-grade underground opportunities to augment the opportunities we have there. That involves our flagship Havieron project, that West Dome underground, that VSC, the vertical stock work, which potentially extends to SLC. But plus, in addition to that, for good order, we still know that there's open pit opportunities to reenter or at least redrill that Main Dome open pit, plus we have the 100% owned Southeast Hub on existing mining leases, which provide a smaller, high-grade open pit opportunities. With that, I'll now pass across to Rowan, who will talk about the O'Callaghans.

Thanks, Shaun. We were really pleased to announce our first Greatland Resource estimate for our 100% owned O'Callaghans tungsten deposit alongside the Telfer resource update in late March. That resource demonstrates the scale and quality of the O'Callaghans deposit, which as you can see on this slide, is one of the world's largest high-grade tungsten deposits and located just 10 kilometers from Telfer. The deposit also benefits from significant copper, zinc and lead byproduct credits. Just to provide some background on tungsten and the market for it. Tungsten has been classified as a critical mineral by all Western countries. Its extreme melting point, hardness and density, make it ideal and difficult to substitute for a number of applications, including in mining, construction, automotive, aerospace, defense, industrial and chemical uses. Aerospace and defense applications currently account for approximately 1/4 of global tungsten demand. China currently produces about 80% of global tungsten supply. It imposed export controls on tungsten in early 2025. Historically, a net exporter of tungsten, China became a significant net importer of tungsten in 2025. These and other factors have contributed to about a 700% increase in tungsten prices since early 2025 to USD 3,000 per metric tonne unit of APT. And for context, our mineral resource estimate uses pricing of USD 450 per metric ton unit of APT. A lot of historical work has been completed on the project by previous owner Newcrest, including over 71,000 meters of drilling that has resulted in a very well-defined ore body. Newcrest also did a detailed 2014 pre-feasibility study, which assessed a 2 million tonne per annum mine with a stand-alone processing plant that would produce approximately 20% of current Western tungsten supply annually over a 25-year mine life. There are also potential synergy opportunities from O'Callaghans, sharing some of the Telfer nonprocessing infrastructure. We are fortunate to have a 100% owned world-class project in a critical and in-demand metal. So we're really focused at the moment on how we can create or realize value from it for shareholders. Given the strength of our balance sheet, we can optimize the medium- to long-term value. We recognize that the current market is structurally supportive to see O'Callaghans developed as Western markets are desperately seeking to secure supply of tungsten and O'Callaghans is a project with both scale and quality. So we want to do everything we can to ensure that O'Callaghans is one of the global tungsten projects that is progressed and prioritized in the current window. I'll now hand back to Shaun for closing remarks.

Thanks, Rowan. And just before we open it up for questions, just to conclude on Slide 17. We feel really -- another really strong quarter from Greatland giving us a year-to-date production of 250,000 ounces and all-in sustaining cost of AUD 2,136 an ounce. This, combined with the full upside exposure to the gold price, we remain unhedged, gave us quarterly operational cash flow of $453 million and importantly, a record cash build of $260 million and a closing cash balance of just over $1.2 billion with no debt. Based on year-to-date performance, we are currently expecting full year production to be around or slightly above the upper end of guidance and all-in sustaining cost to trend towards that lower end. Delivery of the Telfer and O'Callaghans resource was a key highlight for the quarter and has the potential to underpin this multi-decade mining hub, whilst O'Callaghans presents an opportunity to deliver further value for shareholders, in this record tungsten pricing environment that Rowan described. We also continue to invest in Telfer, in particular, our record 240,000 meter drilling program that has continued to deliver very encouraging results. And we look forward to delivering a Telfer mineral reserve update in this current June quarter. With that, I'll invite Krista to open the line for questions.

[Operator Instructions] Your first questions come from Adam Baker with Macquarie.

Just looking at recovery, I mean, strong again at 88%, just wondering, when you integrate the lower-grade stockpiles into the mill feed, what could we expect this recovery rate to drop to?

Yes. Thanks, Adam. Look, importantly, you saw an increasing part of the blend in that March quarter of that lower-grade, partially costed material, that through combination of a lot more direct tipping. And as particularly as we develop that Stage 7 area, there's just more PCM to be able to put through. And you actually saw a pretty -- well, a great recovery outcome. You didn't really see any impact on that. We are doing a number of trials during this current June quarter, where we're putting dedicated batch processing of PCM material. By the way, we did a couple of them in the March quarter as well. Again, you're seeing that in the results. So we still feel maintaining north of 85%, we're confident about, but we're delighted when putting together 3 quarters of 88%. But we might have better visibility on that once we finish these trials. But so far, we haven't seen it have a big impact on recoveries. Although I'd observe overall, there should typically be some correlation between lower grade and a slight reduction in recoveries. That potentially continues to be on our expectation, notwithstanding the positive data we've received to date.

Okay. That's clear. And I'd be remiss not to ask about guidance. I mean, clearly, you're on the right end of guidance here. but particularly maybe one on costs. I mean, year-to-date at $2,136 an ounce. Clearly, you're tracking below the lower end at $2,400. Just wondering if the decision not to revise cost guidance lower. Is that just predicated on some of the cost escalation that you've seen such as the diesel price escalation, like you called out? Or is that predicated on a potential lower production output in the fourth quarter? Just any color on that would be helpful.

Yes. Adam, it's probably more around the former, just the -- what you're saying around kind of oil prices. We think we have a very good handle on the direct cost input of that, but also I think the indirect costs is where we feel we still want to see. And just a reminder, we think there's a little bit more sustaining CapEx in this December -- sorry, in this June quarter. That said, it's just being a little bit measured, just given the global kind of impact of the Middle East. But we're really trending well on that. But I think, like everyone, we're closely monitoring the cost structure.

Your next question comes from the line of Daniel Morgan with Barrenjoey.

My question is just, I mean, fresh ore delivery during the quarter was a key highlight for me. Just wondering if you could give us color on just how sustainable this is? Talk to open pit material movements expected in the months ahead or tonnage from the open pit and also the underground?

Yes. Thanks, Daniel. I might speak to that in reverse order. Look, I think we're really proud of what we've achieved in that underground. Daniel, you probably recall some of those early discussions from due diligence where the mine space in that underground was -- that acquisition was right up to right up to kind of planning. There's 0 reserves there, and it was a really challenging underground environment we took over. With just through hard work and dedication that team has just made progress every quarter. You've seen quarter-on-quarter and increase in the productivity of development meters. And that's been very much an ambition of creating more flexibility in the underground, opening up additional spaces and you're starting to see the benefit of that additional flexibility in that underground and look at the 300,000 tonnes we got out of there, a new record quarter for us, together with really good development out to West Dome underground, which we think is an exciting opportunity. I think that our view on that underground has literally moved to 180 degrees. We thought it was a really challenging environment. And that's not to say it's easy. There's still a lot of time, effort and energy that's needed in that underground. But the underground, I think, has been just a tremendous success story for us. And I think the long-term underground opportunities are particularly exciting for Greatland in terms of West Dome continuing the Main Dome underground, but also kind of thinking about the -- that vertical stock work and the SLC. Because remember, we've got that hoist here that has an installed capacity, underground crusher and hoist in excess of 6 million tonnes. So better leveraging that installed capacity, we think is a really good growth opportunity for us. Moving to the open pit. Look, opening up the Stage 7 has been important for us, but look, increasing open pit productivity, same contract, same fleet, same team, but increasing productivity by 53%, I think, has been exceptional. You just started to see the benefit of the fleet renewal program in this quarter, literally in March. We deployed the new Cat 6060 deal. So that's really good. We were able to take the old Cat 6060 unit 11 off-line, that had lower availability rates. The new 1 is performing really well. So you'll hopefully start to see that kick in for the June quarter. We're also renewing the 793 fleet with a number of rebuilds. We've got a couple of new trucks on site, well, actually a couple of new trucks on site as well. which are being delivered in this June quarter as well. So we feel it is reasonably sustainable in terms of the combination of the fleet renewal and importantly, that resource work that feeds into the reserve, again, opening up bigger benches, understanding the opportunity and it wouldn't surprise me if in FY '27, you see us start new work on a new kind of what I'll call Stage 2 cutback, so that hopefully gives us some more opportunity. Having said that, that can be offset a little bit by grade as we continue to push forward. But I think the physical volumes and the physical productivity I think, continues to trend really well for us.

Okay. And might be in the weeds just a little bit, but the average realized price in the quarter with some $6,773 an ounce, which on my calculations, is $225 an ounce below the quarterly average in AUD. Just wondering what drove that? I'd note that in prior quarters, you were around the quarterly average, I calculate of gold price.

Yes, potentially in the weeds there, or a little bit of noise and I'm just trying to think of what that could be driven by potentially some true-ups from previous concentrate sales coming through. Daniel, but we'll take that offline and see if we've got a more robust answer on that one.

Yes. I think we typically achieve basically average monthly prices. So look, some people might have outperformed a little bit and being better at hitting spikes in the gold price, but we're pretty comfortable with that we roughly achieve kind of average for the for each month, which is how we track it internally.

Yes. And then just looking into the near term, is there any major shuts or drivers of performance that you just want to call out that people should be aware of coming up soon?

Look, our major shut is in July, so that comes out of this quarter. So nothing kind of on the immediate focus, but that will, kind of, be brought into our FY '27 planning. The only thing I might just shout out to the team is we did during the quarter, we did crusher rebuilds on those motors that they were a bit behind logbook servicing under the previous owner. And the team did a great job. You've seen the outcome this quarter. but that was a really important element for us to kind of derisk that crushing capacity and really rapt with the work that the team did to really account in our quarterly results, which is tremendous by that maintenance team. And we've really tried to change the mindset of maintenance at Telfer, we're there for the next 20-plus years. And I think that's really been good for morale as well that people see that investment, that Greatland and the philosophy Greatland's taking to that.

Your next question comes from Kate McCutcheon with Bank of America.

You flagged the pit design changes in the reserve update in June. Can you just talk through what we can expect in the reserve update? I guess, how much of that Stage 2 extension area can we expect to come in? You just mentioned that may form part of the mine plan for '27. Will West Dome underground make it in? Or does that need more time to come into the reserves? Just what we can expect in that June quarter update?

Thanks, Kate. Good question. I actually pass this across to Otto Richter, who can provide an update on that.

Thanks, Kate. As you've seen, that resource model was just released at the beginning of this month. So we're currently working through that. If you look at the increase we've had on that indicated component of the resource, if I look at the West Dome open, that's gone up to over 100 million tonnes of indicated. Now that is across the entire West Dome, but that's been drilled out. There's still some areas that we would like to put some more drilling in as we've seen changes in growth happening with this resource update. So -- and on the underground side, we've got 3 million tonnes indicated on the West Dome underground, but a total of 8 million tonnes already been drilled, if you include inferred. Now that's just from that single drill drive access we currently have. We're looking at extending that because that West Dome is open both along strike and at depth and we don't get full coverage from the current area we're drilling for. So, to answer your question in terms of what we can expect, it's a bit premature to comment on what will be in the reserve, but if you look at the component of indicated material and the material growth that we've seen in that indicated material, we are expecting a material change. I'd like to highlight as well that Telfer underground historically didn't actually have a reserve. So that will be a material change in this next reserve update for the Telfer underground.

And if I'd just add to that. Look, I think the other element I'd just kind of emphasize is this 240,000 meter program we really see holistically, it's not just about this reserve update. I think it's just an ongoing program out to effectively March '27, the next resource update and June '27 of the next reserve update. We could do something interim before that. But I think we really like the progress we're making over that time period, and this will be another interim update, although we like to think positively so.

Okay, cool. And then staying on forward-looking West Dome underground, we had the initial resource. Otto just spoke to some of the upside there. Can you remind me around the timing there? You need another decline to get to the crusher best case or going well? Could we see development tons in a couple of years? And how are you thinking about incremental tons there? Or is some of that a bit early?

Yes. Look, I think, firstly, we're really positive about. This is the highest average grade you're seeing at Telfer since the 2005 restart. So this is a prize. We've put one drive out there, which has become a drilling platform. The second drive is 80% complete. And that will again develop -- give us some more drilling platforms, but also gives us a lot of the services, just the air and water to make that more sustainable. Then I think in FY '27, you'll see a third drive go across there. And that will effectively make a beeline, so to speak, it's about a 1.5 kilometer trend back to the existing underground crusher and hoist. I think that infrastructure would effectively support development there, and gives you an indication of our conviction, given we're investing in 3 drives out there. That first 600,000 ounces, I think, very much is an interim look at that, and we think the volume we've already seen, which continues to expand and talks to the opportunity. Remember, there's been over 25 years of underground mining in that Main Dome underground and West Dome underground, the opportunity there is not completely different. So, in terms of timing and size, I think that's where we really need that reserve work to be more definitive. But I think realistically, FY '27 is a year of development. But I think it comes into the frame for FY '28 or so. But I think the opportunity is for West Dome underground to actually beat Havieron into the mill and it's actually even slightly high grade. So it's really important for us. It's a way to derisk and give us a second avenue to increasing the proportion of high-grade underground feed into the Telfer mill.

Your next question comes from Ben Lyons with Jarden Securities Limited.

Congratulations on receiving the federal environmental approvals for Havieron. Clearly, that's a significant development. And I know you've only had the weekend to have a cursory review of it. But just wondering, I recall there was a couple of sensitive species in the Paterson region. The greater bilby and the night parrot. So just wondering if there were any significant conditions that have been attached to that federal approval in its first pass like land offsets or conditions on operating hours or that proposed whole road route through to Telfer?

Ben, thanks for the question. Glad someone highlighted it. The -- yes, look, we're really pleased. I think that PBC or the federal ones probably seen as more complex to achieve. So we're really pleased with the team. And I think they did a good job at kind of managing and controlling that process. And as an extension of that, certainly at the first half is what we expected it to be. So this is all positive. It includes defining an offset area up there. We think that's really important as the first defined offset area up in the Paterson region. I think that gives us an opportunity for future development to expand and extend and continue to invest in that offset area. So that's kind of one of the hidden benefits of having done this work. The only concept there, which I think has already been reported, is Greatland initiate that we would just do day haulage. We thought that was a really good way to manage around concerns about nocturnal flights. The -- and -- but in terms of that we've actually started the 2-year monitoring process. We'll determine whether there are night parrots up there or not. But we just felt it was a way to sort to effectively agree a path forward without being distracted by that. So we've done monitoring in the past up there, which gives us a level of confidence. But another 2-year program, we think, creates a more -- a greater body of evidence for the EPA by state and federal to consider daytime and nighttime haulage. But this is relatively small tonnage. It's 4 million tonnes. This is a precious metal mine, so day haulage is very achievable. We love the flexibility of night haulage over time, but both are achievable. And yes, we kind of celebrate this win, but we remain very focused now on getting that state EPA before we actually kick into kind of top gear.

Yes. Cool. And then from memory, it was the federal approval that was really the main constraint on any further surface disturbance like the ponds or commencing the drill pads for the blind boring then? But so can those processes now commence given you've got the federal approvals? Or do you have to wait for a state before you can commence those critical path developments?

Ben, look, as you said in the -- in your first question, we -- it's a first pass like to be open with you kind of a challenge to the team. On Monday, which was a public holiday here in Perth, but exactly that question, does that allow us to press ahead with some of those lead time items. So we're reviewing that as part of the detailed review of that documentation. But then whether we can specifically do the evaporation ponds or not. We are doing kind of a number of early works up there right now. And we'll continue to press ahead. And I'm just kind of having a look in here, but I think there is a slide in here, which kind of shows some of the work we've been doing -- in the quarterly, sorry, in the quarterly. I think on Slide 8, you can see the that precast for kind of access into the underground. There's some basic cuts that we can do through that berm level. So we have remobilized. We're ramping up that site and just doing a lot of the work that we think will provide for a quick ramp-up. And that's even things like standing up an emergency response team, making sure they're trained. All those things that can normally just slow you down a little bit on that ramp-up. We're trying to think of all of those things in advance to place as well. So whether we specifically start the evaporation ponds. Yes, I'll have to come back to you on. But overall, you should be aware that we are kind of walking up the early works there and have been for the last couple of months.

Yes. Cool. Got it. Maybe just one last one on O'Callaghans, please. Clearly, it's a globally strategic and significant asset and maybe it represents some significant hidden value in the Greatland portfolio. So Fantastic to have 100% ownership and ultimate flexibility over the development or potential divestment pathway for such a fantastic ore body. Just noting that some of those pure-play tungsten producers globally have got some very elevated market capitalizations, which would imply they've got a very low cost of equity and certainly a fulsome ability to pay for exposure to an asset like O'Callaghans? Just at a high level sort of conceptual approach? How important is it for Greatland to retain any economic exposure to that development? Or would you consider a full divestment as I said, great to have all of the options that you'll expose at present.

Thanks, Ben. Yes. Look, I think truly all options remain on the table, whether that's a partial divestment or a complete divestment, a joint venture, a spin out or a Greatland. Although I think Greatland concurrently developing O'Callaghans alongside Havieron is probably the least likely outcome. As you said, it's a very strong market presently. But that doesn't just lend itself to a sale. There are other options that I think can be attractive. And we're fortunate in the sense that we have a strong balance sheet we can be patient and we can optimize for medium- to long-term value.

We have no further questions at this time. I would like to turn the conference back over to Shaun Day for closing comments.

Thanks very much, Krista. Look, really, firstly, thanks, everyone, for dialing in. We appreciate it. Look, we thought the March quarter was strong, positions ourselves for a successful FY '26 in terms of ounce profile and cost progress at Havieron, $1.2 billion in the bank, that gives us the opportunity to undertake and deliver Havieron, but also these other growth opportunities, such as the West Dome underground, other opportunities in underground such as the vertical stockwork, but also importantly, the open pit continuing to deliver Stage 7, but also looking at that really big Stage 2 opportunity. Plus, we think the success of that resource program or drilling program was really good. I think there's a real opportunity to see us kind of move that 240,000 meter of drilling out to, say, 360,000 meters and just keep that cadence going into FY '27 given the success we've had and how it sets up Telfer, Havieron for a multi-decade opportunity. With that, thanks again for dialing in.

Ladies and gentlemen, this does conclude today's call. Thank you for joining, and you may now disconnect.