IGO Limited (IGO.AX) Q2 FY2026 Earnings Call Transcript & Summary

Thank you for standing by, and welcome to the IGO December 2025 Quarterly Activities Report. [Operator Instructions] I would now like to hand the conference over to Mr. IIvan Vella, Managing Director and CEO. Please go ahead.

Great. Thank you. Good morning. Good afternoon, everyone. Thanks for joining us. I know it's a so busy day, lots and lots of quarterlies for the market. See you in your answer. I appreciate you dialing in, taking the time to go to catch up our results. I won't spend too long as usual, just trying to highlight a pickup the financials as we get further through and then we can dive into some Q&A. Just to sort of touch the headlines first before I run through fee more depth. I think safety, again, continued improvement. I talked about this since I started the role 2 years ago, and I'm really pleased with the -- we're making steady improvement every quarter. teams working really hard at it. They absolutely treat this as their first priority. And the results flowing through, which we really pleased about naturally have done a focus on a good mature gold chart is something that we'll keep working at. But I think it ties back into performance in the line as well and obviously, the results are largely focused around Nova. And you'll see the results over but really, really strong through the last quarter, production cost. teams doing a great solid, reinforced obviously, a few quarters now how difficult it is when you get to the end of an ore body like this or you approaching the end-of-mine life. It is talents dealing with that extremely well. And we start to see where focus on good safety, good productivity, good discipline in our operations also together, we're also driving our rate cost outcomes as well. I do recognize, of course, the benefit of the byproduct credits from copper, which is nice. It's not a piece of the pie. And obviously, [indiscernible] markets fantastic for the last 12 months of this line. But as you can see, start of what we control, and those basics are running well. For Greenbushes, look, obviously, a better quarter than the first quarter of the financial year which all impacted by rain and grades. We've seen that grades improve. That's continuing to flow through, and we'll see that lift through the second half of financial year. But so improved production, sales or pest shipment, which, to be honest, is with a very rapidly right in market, not in well seeing some improved nationals on the back of that. And a lot of work that's happening, I think, CGP3 and going to be at least that's, as we've announced already this first ore and produce first concentrate [indiscernible] huge focus on Renata, I talked on course. Kwinana, another quarter that's sort of in line in prior quarters, I think really did pull out and was impacted by shutdown that took out some of the available days of production. The team finished the last month at about 50%, which is 2 of the bets that we've seen from the refinery for the same period. And I guess much of the line prices are to take the view that this has got a very challenging future. So that's mean finalize our financials, capital being further that generates positive free cash and on balance sheet drop down and we move and I touched on with these points. I mean a really good operational quarter, delivering cash to the business. I talked about a site this fire in Q1, which has been addressed and mitigated. And again, that's sort of the thing that the team naturally doesn't want to happen and to work really hard to deal with safely. They've done that and it's now in the revision we are looking forward with the mine at this point, so close to close, and we don't have the ability to flex our schedule. And so we have to do this thing very defensively. So it's a bit lower, just in line of shipping plans. So one last quarter that will roll through. There's nothing really materially that. And overall, tracking really well against our end of life mine guidance. I said the performance from production was really good, and they continue to live through this quarter. So where we've got some strong conference there and right through the end of this on the year. And of course, costs a function of that performance. All that said, the team are working really hard to manage our costs as this line ramps down, we're certainly not looking to carry and we don't need to as we move towards closure in 2027. On Kwinana, just to touch on quickly because then we can talk a bit more on Greenbushes, as I said, 3 in nameplate the quarter 2.1 kiloton, actually pretty much in line with our guidance as we've set out for the financial year. The costs are up, and that's a function of the production through the quarter and we take it out to the maintenance shops done and some other modifications that we [indiscernible]. The next slide is dropping the Greenbushes. So look, it's a good quarter, lift-on Q1 in production costs are still running high relative and that's obviously production later as the tons ramp up, we'll see that come back in. The realized price listed to [indiscernible], which I think reflects this very close next with the PRA spot price in the market, and I'll talk more to that on the next slide being something that's very favorable, particularly in this 15 market very [indiscernible]. And the big news is obviously getting first to CGP3 in that last year, just for Christmas. The team did find some issues as they start to run at say the start the fire early in January and then got back into it. As I said, we've just seen first concentrate savings come through. So look, the assets working, I think they took the time down to check a few more things, hopefully avoid any more surprises and the work that we unannounced around hopefully smoothly. We will know more by our half year results in a few weeks' time or a -- so I think that will be a place so I can give you a more substantive update at this point. It's a bit earlier, really to say too much until we see a few more results than that comes through. Slides on Greenbushes volumes to start as we've talked about in the last quarter to just be in more information to the extent I can about both the life of mine optimization or the strategic review that we're doing and the focus on productivity. First thing I did want to touch on first, though, it was just on the swap price gave, which I'm sure we're sinclosely in the market. It's certainly moving very, very quickly. I would say by the expectation today that's fine. It is what it is. I'm sure you're going to have some ups and downs you saw overnight but it was down sheet with FX and others. And I think we certainly expect to see some of the fatal supply out there to the ocean I think you've been read this morning note looking at that we see more of that at paper. But really, the takeaway from this slide is the way that that translates for reduces. And as you know, when we take the average of the PRI 1 month price of trails, but it's pretty much very close connection to the spot price that's out there does give us a very good realized price as that flows through. We don't have any of that lag or impact from contracts [indiscernible] discounts or other fictions from a low in the cycle. So I expect we're going to see obviously some very effective lift in our realized price over the current months. The next slide then is bring to life how that translates into margin, which is one of the things, again, I called out before. I think Greenbushes is one of those few mines of 12 that generates extremely higher margins. said 64% EBITDA for the last quarter and I think the low end was just 60 after absolute pole title. But the thing that's really uniquely to also drive interest in cash conversion and translates into returns that flow out of the business. They don't have to be reinvested to maintain production. And this chart briefly what that looks like, if you take 1.5 million tonnes, so current production level roughly at 2,000 tonne and then with the lift in production the sort of amount of cash is generated through that step up just us to visualize that. . The next slide is also to the optimization with slide that I have referred to you before, just to reorient everyone, we've got an overall review of the entire mine, which is okay, life-of-mine I'm going to talk about after the kind of work that's happening there in a minute. That is significant. It's got a lot of expertise, external expertise openings with it. It basically go right back to the ore body, assesses characterization, the design to mine, how we manage waste, tailings, upgrades, et cetera, soft to tail and reset that in the way in doing so, obviously, unlocks a lot of value. In parallel with that, we were also focused on the productivity in the national leading productivity work is happening now in a new way, and that's got us across a number of different streams, All of that together brings us to, I guess, our goal, which is achieving the full potential of Greenbushes. And Rob Toleris CEO there at Talison is doing a great job. He is got a lot to work through, and it's the same he's put together a fine [indiscernible], jams change their to. And that's part of the shift. But I mean we've seen now in the source base of time, make this in this cefconproduction, stability and safety. I don't share the safety results tale, but there is some changes there as well. I think it seems and as got a really good set of programs and changes in place set by status to support the team to shift that culture and focus on safety on production reliability, stability and also the productivity. It will drive our more tonnes and obviously, less costs as well. example I referred to for the overall last review, really look the pit wall side. So [ Sleeping Picard ] is something that naturally has with trade opportunity, both as on the upside. It means a lot to ratio. And in this case, you can see and I'll talk in a minute, it starts to expire more metal or more material value material that otherwise might not have been accessible. On the down side, if you get it wrong issue or a failure wall that can sell a lot small. So it [indiscernible]. The team have brought in experts to help them with that. They are maturing. There's technical management processes and activities. They're doing all the right work to match or look to control those risks, but ultimately unlock a lot of value. And if you look through this chart, you'll see some little dotted lines to run out into the rayon the right-hand side. And so that sort of fit shell 2023 resource shareholder and between 21 resource shell shows what the overall resource would be you can manage if you actually do all that strip to amount of working costs. The other point to though is on top of that grade same area there on the left side of that slide [indiscernible] to our plants. So we require us moving a lot of the infrastructure and assets cost at a part to it. I mean that's the kind of work that other mines in the world have had to go through. But it's not very excitable. So the other way, the fact that obviously, if you take those little lower lines running the grain, if you draw them straight up to the edge of the grey and you steepen that wall significantly you can start to access that high grade core. You can allow your strip rate significantly to more metal last much lower cost and ultimately drive [indiscernible] at the mine. That's the kind of alert mineanted to do is to me just illustrate it. So when you start to see more of the results and at coming through, as we get through the decision poor plans, and we can present that back to the market, you'll understand whether that's come from it helps to give you a sense of the work is happening. Equally, the caretaking to make sure that this stuff properly. As many of you know, this mine is $135 million, even if we're working in this quite mature. And any change in macro done with user attention. The last slide then on [indiscernible] to speak to the productivity throughout the strain that I mentioned earlier. We put it in the sort of major areas sites mining being actually the big 1 early, and I'll put a couple of little chart in there to just illustrate the lifting productivity from mining fleet. And that takes us to what we believe is industry at which -- so when a outperforming that effort, I want to give credit to the team to ride out and mining [indiscernible] put a lot of focus on this that it alone to barriers are working through different channels. So I think we're really starting to see some results come through now, and that will play out in our costs. Obviously, a -- and the second area I want to talk about pain is production and performance, and that's a mix utilization through better asset management reliability but also recovery, some more stability will drive recoveries and then work on to optimize recoveries. As part of that, we're also looking at value in use, which means what is the grade that we're selling to our customers? Is that optimal for them, what level put, how much are we throwing the assets, the processing plants to achieve that? And what's the cost of value trade-offs? So we're asking those time questions as part of this is math sure that we've really optimized this recognizing the customers' interest and their costs, but equally, what's the best we can do with the business has run on producing and is great on impurity. very long time, and we haven't really asked the question. And so we are testing it and we'll see what a sense. No decisions yet, but again, shows the kind of work that's happening impact on productivity from these different streams is quite significant. So that's group on the operations a bit more on grades turn it over to Cat and sort of some of the highlights on the financials, and then we can give into some Q&A. Thanks telcos by everybody. .

Sales [indiscernible] as the indicated lotion shipment filing for over. Now [indiscernible], which included some manning adjustments with increasing price in the month of December. The share of net profit from GLA rounded to 0 positive profit at Greenbushes is being offset by losses of [indiscernible] and this includes our share of capital expenditures we anteater, I also wanted to call out again that we're not uroflagweriing on the next quarter unifying an improved to 30 mil supported by Nova and some Marmaton investments that we have. We [indiscernible] make focus on cost control, but you'll note that where I'd like to note that [indiscernible] and a one-off payment for our insurance in aerospace Free cash volume was positive at $13 million, and our balance sheet continues to drive nomenetcash increasing to [ $299 million ] placed I think that's some of either move back to Tod.

Thanks, Kath. Well, look, we'll turn it over to Q&A. I'm trying to Mike. Hopefully, the sound quality better for you. But yes, we can open up and start some questions.

[Operator Instructions] Your first question comes from Rahul Anand from Morgan Stanley.

Hi. Good morning. Thanks for the call. Just the first 1 for me is related to CGP3, obviously, you started commissioning and ramp up there. What is the rough timeline if you're achieving that nameplate, please, just so that we can test our numbers going forward on that one? And I'll come back with a second.

Yes, it's in simple terms, 5 months by the end of the calendar year.

Got it. Okay. Perfect. And then just on the pricing. We basically had you achieved the price during this quarter for, I guess, the months of September, October and November. And even if I apply about a 5% discount, I'm still getting to a higher price. Now obviously, I acknowledge that the shipment timings might have been a key impact here. But is that the right way to think about pricing September, October, November? And then based on when the ships basically are loaded and leave the port, basically, you're selling the timing is FOB basis. Is that right?

Yes, it is. We can double that it and clarify. Yes, that's your understanding is absolutely correct. .

Yes. Just because looking at our numbers for the price and also for consensus, the pricing was a tad bit weaker. So I just wanted to understand if we're kind of modeling that correctly.

We'll double check. I mean we obviously do reconcile that, but we'll just make sure if there's something that's in there whether or it's tied to the shipment possibly. I'm not sure, but we'll get back to you to make sure we've got the right inputs for your model.

Excellent. And if I can just slip in one more just around sort of Greenbushes going forward, obviously, a strong lithium price environment, and you've got a downstream partner there at the mine as well. You've talked about the age of the mine and then also you're ramping up CGP3. And if I look at your sensitivity chart in terms of the sales volumes, you've obviously got about 2 million tonnes, which is what your current plans are. Have any conversation started as yet in terms of any future expansions at the mine and how they might look like in terms of underground, above ground? What type of hurdles do you guys need to cross in terms of thinking about further expansions? Anything related to growth, I guess, in the Greenbushes space?

Yes, there's a lot going in there, but that's included in that role pipeline optimization, the existing assets, so CGP1, 2, we believe, can offer our a lot more productivity and throughput and production. So optimize, then naturally bringing CGP3 up to its full potential as well. So that's using the existing suite of capital that we've deployed the tailings retreatment facility. We're working through that study presently. So we know what to do there as well. So there is a lot happening in that space to recognize and drive growth from the existing capital base to make sure we've got best from it. CGP4 is in the mix. One of those things that sits in the schedule, and we've got a fine where the optimal place for that is. We don't have that answer yet. It's -- there's a lot of moving parts in the review that we're doing is very significant. But as I get more detail, step-by-step, we'll feed it out I guess I'm just as eager as you are course that finished because it gives us a really clear new baseline to work against. And in problem and the team are working really hard. I think we'll see some of that comes through in the reserve resource update, we do later in February. And you mentioned underground. So we're certainly looking at where that fits. And as we think about the overall resource I've talked about people seeing as 1 lever that obviously drives a lot of value, but equally understanding which part of the resource we want to target through the open pit versus underground and then what the schedule and sequence of that is, again, work that's underway currently.

Got it. That's very comprehensive. Thank you for that. I appreciate it. .

Your next question comes from Levi Spry from UBS.

Thanks team. So do we have an updated expected date for the life of mine optimization?

No. No. Sorry, Levi. I would love that to -- I'm pressing regularly, probably getting a noise with me. But look, they're working make some progress. I think there are some areas where they did -- they find things that they just have to do more work on technically to make sure we're going to make the right sites. I will share a clear plan or at least target once we have one, but I just don't have that to offer up this.

Yes. Okay. So in the absence of that, so can you maybe you need a big second half as CDP through our ramps up. Can you just remind us of its operating parameters, maybe tonnes grade, recovery, so full speed by the end of the year? What does that actually mean?

Yes. I mean you're talking that the whole grade curve and so on. I mean we're giving you the nominal tons, 0.5 million tonnes, you will run at, I guess, design feed grade is the same as CGP2, which is about 1.8%. And it will run to, I guess, test recovery. We are targeting higher than that. So you've seen the results of CGP2 starting to rise, the team do more work on it. Our goal naturally from the ramp-up is that we don't have to go through that process, and we actually hitting our grade curve from the outset and then beating it. But I'm not going to promise that at this point. It's where the team is focused. I don't know -- is that what you're looking for? I mean all those numbers we've said previously, I'm just not sure there's nothing new at this stage that's going to change things until we get further into the ramp-up.

Yes. Okay. So just pushing a bit further on that. So just confirming on Page 7 of the press, the 2 million tonne rate. So do we take that as being the calendar year '20 run rate?

No. That was an indication of margins at that volume, it's a capacity. It's not a mine plan that we've issued as guidance yet.

Yes. Okay. And so the next round of meetings with CLA and the G&G guidance. So when is the 26 budgets expected to be set?

We've been through that now. They're getting signed off as we speak. So that's a 26 calendar for Tal. And we'll then take that and build our guidance for the 27th financial year, obviously a bit closer to the time.

Your next question comes from Hugo Nicoletti from Goldman Sachs.

First 1 on your comments around Greenwich's guidance, production is sort of tracking slightly below CapEx also below. If I try and triangulate those 2 comments. Is that just in terms of stripping at the mine, is that running a little bit behind, and that's why your strip ratio has sort of fallen in the last quarter and why both production and CapEx might be lower for the year?

No, they're not all linked. So stripping will come down. As I've talked about this example on it wall we'll see a material reduction we expect to announce ratios through that, and that will trend down. Your quarterly variations is more about weather impact through year 1, obviously have less of it access and availability. They're now fully open, so they're a little different. But the team are working at where they tip waste at a managed pace the grade seating of those waste cockpiles., There are results a lot of changes that they're working through presently. So I'm -- don't want to trying to characterize the tenor is just one has to change. In terms of the production, look, it's part grade related, which was bit better than we saw in Q1 of course, a little bit worse than we had in our plan, and that's just a normal reconciliation on through seating that. And the other bigger factor is, of course, just the way the CGP3 ramps up. That is really the key unknown. And what we anticipated in our guidance in terms of that start were behind. Is it not curable? No, at this point, but that's what we're going to see in the coming weeks or months, how that goes. That give us a gauge to to how the rest of this year loss and then obviously into the rest of the calendar year. So there's a few different meaning parts and certain wouldn't them all together in terms of the bush outcome for Q2

Got it. In terms of the CapEx timing piece, then I presume those are work that will still need to happen. So maybe that's more of a shuffling some of the CapEx into FY '27 rather than things no longer there?

I mean as I've talked about prior quarters to be Rob's got a very tight handle on CapEx. You've been very prudent and he is pushing back on it, which is good. but we're not in a place that we credit downstream guidance on yet. We'll see how -- again, how that pans out now as they run up CGP3. Obviously, some of those costs are capitalized until we get to mesorduction. So there's a bit more to come, but I don't think you should read into that, but there's a major institute that's in that for [indiscernible].

Got it. And then just sort of second one, I think just having of for Hood's question earlier around the realized pricing piece. Can you just remind us what sort of volumes are going out on the technical grade piece at the moment? And if that's also a bit of a delta there in terms of that realized pricing?

Is very small. It wouldn't be material enough to realize pricing. And we're talking 50,000, 80,000 tonnes size is pretty small rig.

Yes. Got it. Great. And then just last one, I can sort of back on the IG level, and you've highlighted obviously the step change in the potential cash generation for Greenbushes account spot pricing, we're 2 months through your current quarter, basically pricing setting. Does that then enable you to start thinking about dividends back out to IGO shareholders given you have that line of sight to cash flow sort of at or above your threshold for excess returns already? Or is that maybe a little bit too early for February still?

Yes, early. I mean I think we've got a very clean [indiscernible] framework at Windfield, which we used to manage dividends and obviously the debt there. Some movements in the [indiscernible] we'll work through that. We'll pay dividends out of that we feel to the shareholders of [indiscernible], and that will be done again based on that framework -- very well managed in control. And then the key discussion will be the COEs to what we want to maintain there in liquidity and what shareholders might pay out. So certainly no discussion decision on at this point. The first step is to see that as really starting to flow retail.

Your next question comes from [indiscernible] from RBC.

Ivan, just on that framework that you talked about with Windfield, $150 million of debt paid this quarter, but no cash distribution to IGO. What's the priority now further degearing versus distribution? And as CGP3 ramps up, is there a set level or cash buffer that's required before distribute issues resume will circle back with a second.

I mean pick up the last part first. So we've got -- I mean there is a cash buffer will hold. That's not tied to CGI or any specific part of the asset. It's just a part of our overcapital framework, and that's being managed Naturally, we'll look at the dividends versus the debt and the balance on that, and we'll take into account things like the U.S. dollar and forward views on cash generation and so on. So all those decisions go through a restructured process with the Board and the shareholders. And out of that, we'll let you know how that translates. Obviously, the way this market behaves is going to be relevant. Obviously, it's very buoyant right now. And certainly, all the signals are for a very strong year of demand. But equally, we expect to see more like online boost other production as well. So even before we head of ourselves too far, we just want to sort of see how that washes through and take a view then on how best to allocate that cash to drive maximum value for the business.

So just to confirm, it's the gearing currently the focus?

No. Yes, no, it's not a focus. That was -- this is part of post anything in a sense, we will naturally want to pay dividends and bad debt. So they're both important priorities.

Sure. Okay. Maybe secondly, on Kwinana. Conversion costs spiked material this quarter. How much of that reverses with utilization versus how much reflects embedded cost issues?

No, it's been largely impacted by the maintenance because remember, we don't capitalize anything. Everything is expands. And obviously, the production volume is impacted through that period. So you've got a compounding set of elements there. I think the team are working to drive out cost. And as we're looking at and we're working through '26 budget for Kwinana. There is a lot of pressure on that as to depreciate and CapEx as well. So the team naturally are trying to find ways to drive better like in the performance, but do that with less costs as well. And I will not take Q2 as a the market that is trading up or that's the run rate.

Next question comes from Matthew Frydman from MSG Financial.

Can I ask another 1 on the ramp-up of CGP3, which I guess you called out as the biggest factor in the software guidance commentary you've given? Can you give us any more information on the specific issues that have been, I guess, based and dealt with so far that you mentioned earlier on the call, was there anything specific related to equipment or fee or people or anything? And then in your view, are there any sort of key risks or checkpoints now looking forward? Or is it just a sort of steady improvement over the course of the year?

Yes. I'll see what I can and it's a good question. It's good equipment plated. So 1 of the mills needed some realignment. It's not usual problems, Australians you kind of go on, how does that not dealt with earlier, but it happened even through a few of those. We just needed a summary ceiling. Again, not fantastic because it's painful to do it. It's not a bus issue. It's just logistically to get back in and pick some of these things. It just takes a bit of time. The good news while the team used some of that downturn that will work through some of these issues to then just go back higher motors, parts, et cetera, abates and Czech and really confidence I think they changed out a few new pieces so that we can get a clean up next phase of the positioning in Ranpak. But for anyone who's been through these things before, there's plenty of unknowns. So be very careful not to be too excited along the other. It's still pretty early in the process. [indiscernible] you talk about the other things that could be actuating at all good people and capability, a great team there, [indiscernible] is project directors, integrated commissioning, strong template. So we feel comfortable with that. We got great support from the vendors, got access to all the support equipment that we need. So there's no big risk there that we're deeply worried about. But I'm just way too early to call or to get the debt of a real sense. I think by the time into our half, I'll get a better reading on how things are going. At this point, please we've got first at home starting to basically [indiscernible] on the line and actually start to see what recoveries are, how it's behaving and obviously, look at turning in the reagents and all of the long steps you take in that first half or so from [indiscernible].

Okay. That's helpful. Then secondly, you as you called out, put some additional sort of numbers in the presentation there around some of the recent productivity improvements at Greenbushes, improved truck utilization, improvement real movement. And you suggested that, that will flow through into the cost line over time. Obviously, there's a lot of moving parts that go into the final cash cost number. But I guess I'm wondering in isolation, are you able to maybe put some dollars around some of those mining productivity improvements? I mean what's the goal for where you think you can get the cost of material movement with some of this productivity improvement? Is it $10 a ton? Is it $7 a tonne or whatever the number is from a ballpark perspective? What's the team working towards? I suspect you'll tell me that some of that will come out in the life of mine optimization piece. But yes, just wondering if there's any sort of high-level thoughts around that at the moment.

Yes, it will. I mean, I don't want to give you a number yet. I mean that is a conversation, of course, when we go through budgets and we're pressing. They're a bit gun shy to offer up in the first year because it's still a work in progress. But we're starting to see a profile through '26, '27, which really does show some sustaining improvements in unit costs on those underlying activities, and I think that will naturally flow through. We're also, as reminders, buying rate decline. So some of it is rated indirectly through that or set the gold is net-net, we're actually beating that and both through increased throughput of production and also then is just more efficient work through less stripping and so on, but we're actually continuing to strengthen our position as the lowest cost that do reduce in the world via [indiscernible] key in consolidating. So Rob, I think I mentioned before -- so put that broader goal out there to be the lowest cost lithium units in the world, and there's still a gap to the very best brines out there, but it's it's insuring range. I think it's a good target at which alone and say what -- how could you run this mine differently what needs to be true for us to start the cost performance. And that's not going to come in a quarter or 2, of course. And I guess what I'm trying to do is to the extent I can share information that we do just feed it out step by step to give you a greater insight and feature on improvements and then also give you some of those underlying productivity and performance numbers so that you can update your view of the asset.

Your next question comes from Austin from Macquarie.

Just one quick question -- most of the questions have been asked already. So just one on the base metal strategies. I think Previously, you were talking about outside of lithium, you were looking at other early-stage opportunities. Just conscious that given this seems like a windfall of cash coming from the strong leading market, how does that change your thinking of the expiration of the other opportunities? Could we see some capital being allocated to that part in addition to shareholder returns and net repayment?

it's a great question. There's no -- it really doesn't change. I mean, the criteria that we've applied since I started 2 years ago with a lot of disemployment, has been a big part of this real clarity around kind of returns that we're looking for from any growth needs to be in that ballpark around agreement, we don't want to heavily dilute our business. And trying to hit Greenbushes, as you imagine, that's a very high bar. And so we can allocate capital first there, and that's going to be the most accretive and most sensible thing to do, which we focused on. Dealing with things that are a drag on our terms, i.e., no working through you be clear about that. And then you add something to it. I mean is difficult. Hence, why we've been -- continue to be very disciplined. If we saw something that we felt would deliver a graphic returns. So the lithium price, to be honest or having -- and the translation of that is cash, so I won't really change that decision because we have a nice cash available to us, we're not going to be more eager to make a decision that it will be on the same criteria regard. Arguably, the best time to be doing things if you saw it was 5 months ago or 8 months ago. So it can affect to our value, and we've got a very flat bar. And that's proven that it's an absolute privilege to be a stadium of rinses and it just means that our growth has to be very, very focused. That's probably all I can say at this point, Austin, but it's more of the same.

Your next question comes from Daniel Morgan from Baronjoey.

Just a simple one really. Grades at Greenbushes. I think if I'm hearing correctly, they're back above 2%. And so therefore, the implication is like just putting CGP3 to the side, not stripping that out from this question; we should expect a material lift in production for the next couple of quarters from the existing business, not CGp3, correct?

Yes. Well, you'll get a lift, yes. I think it's -- I mean, not a rate clearly equally interruption. We had a pretty big quarter, weather-wise, some rain. Later than expected through Q2, but very Q1 is always going to be a challenge. So there's naturally some of those impacts, rates impact. And then the productivity is the pie because I know Adatovryhard on seeing and expecting to see them to deliver results through all of that hard work as well. .

There are no further questions at this time. I'll now hand back to Mr. Vella for closing remarks.

All right. Thank you look elitist nice as you guys hopefully a break before the next one. I won't say too much. I mean just recap. I think Nova was really pleased, as I said safety production costs just getting the market. This is an operation that we focused on, distant, relatively small and simple, but a signpost of how we want to create our capability to operating mine, and I think all credit to the team, they've done a great job there and set this year very well. So that's great. Unfortunately, it's only a year to go, not another 10 sort of dial I'll manage that through. Greenbushes, a better quarter. The big focus is CGP3 Naturally, we're very pleased to be ramping that up into a lifting and buoyant market. It's fantastic, and there's a huge amount of protocol smooth and ideally, we meet all of our plans. That's always going to be the target. But at this stage, it's early, you just need to back the team and support them as they get through that work. All that said, this is the time when Greenbushes has really shined. This is a period of lifting price a boy market, when you see the very best [indiscernible] in the world. stand on ore production and a whole lot of margin. So we're pleased to be part of that and continue to work with the team to the previous performance. Thanks for everyone's attention and support, and we look forward to talking to you soon at the half year results.

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