Mandalay Resources Corporation (ALK) Earnings Call Transcript & Summary

Thank you for standing by, and welcome to a joint conference call with Alkane Resources and Mandalay Resources. This call is being recorded on April 28, 2025. Today's call contains forward-looking statements, which reflect the current expectations or beliefs of the company based on information currently available to the company. Forward-looking statements are subject to a number of risks and uncertainties that may cause actual results of the company to differ materially from those discussed in the forward-looking statements. Factors that could cause actual results or events to differ materially from the current expectations are disclosed within Alkane's annual report or Mandalay's annual information form available on the company's website. Please note that all currency references in this presentation are in Australian dollars, except as otherwise indicated. [Operator Instructions] Joining us today is Mr. Nick Earner, Managing Director of Alkane; and Mr. Frazer Bourchier, President and CEO of Mandalay. I would now like to hand the conference over to Mr. Nick Earner. Please go ahead.

Thank you, and thanks, everyone, who's able to join us for today's presentation. We realize that with the ASX review and release schedule, this is pretty short notice, and we appreciate you making the time. I'm very pleased to be joined here in Sydney by Frazer Bourchier, CEO of Mandalay Resources, and he's going to deliver some remarks pretty soon. Look, Frazer and I are both pretty excited to announce this merger of equals of our 2 companies, Alkane Resources and Mandalay Resources. We are both confident this transaction will create significant value for shareholders. Let me begin by outlining the rationale behind this transaction. Merging our 2 companies will create a $1 billion market cap producer that we think is prime for re-rating. In our combined company, we have 3 producing assets, making it larger in operating scale than each of the stand-alone and will be more diversified than both of our current companies, which reduces overall risk. On a combined basis, our 3 operating mines are expected to produce approximately 160,000 gold equivalent ounces in 2025, and broker consensus sees this growing to over 180,000 ounces in 2026. And when we look at that analyst consensus, this has the combined company generating over AUD 300 million annually in operating cash flow at a cost -- all-in sustaining cost of approximately AUD 2,100. This is for 2026. Now let's think at spot, which common consensus typically doesn't have in, this will be even higher. Our combined resources total 3.1 million gold equivalent ounces measured and indicated plus an additional 6 million ounces inferred. Let's think about this. That's 19 million ounces. And based on our current market cap, that's only AUD 50, AUD 50 per total resource ounce. This is well below benchmark. Our reserves currently total a healthy 1.5 million gold equivalent ounces, but both of our companies have been investing in exploration and all 3 mines show potential for expansion. Let's take a look at our mines. First, to Costerfield, operated by Mandalay since 2009. It's a high-grade mine expected to produce 44,000 to 49,000 gold equivalent ounces in 2025. The Mandalay team has a long-established track record of extending the mine life through exploration. And they've recently announced some very promising drill results at a zone called True Blue. I strongly suggest you go and check those out on their website. Costerfield is also the largest single company producer of antimony in the Western world. For those watching the media, you will know very well that antimony is a critical mineral considered to be highly strategic, and its price has increased significantly over the past year. Next is Tomingley from within the Alkane portfolio. We've guided for Tomingley to produce over 70,000 ounces of gold this year. That would make Tomingley the highest producing mine for the combined company. There's a potential to increase this production to 100,000 ounces by 2027 based on a transformational upgrade and expansion program, which we already have approved by the government. Our third mine is Mandalay's Björkdal mine in Northern Sweden. Production guidance for 2025 here is 42,000 to 46,000 ounces of gold. Björkdal is a long-life mine that's been in production since the late '80s with a very long history of mine extension. And here at Björkdal, there are also multiple near mine and regional targets being evaluated for potential expansion. Our other major asset, a nonproducing asset is Boda-Kaiser. This is an advanced stage exploration project with the potential to become a Tier 1 copper-gold project. Here at Boda, measured and indicated resources totaled 8.3 million ounces of gold and 1.5 million tonnes of copper. Alkane has completed the scoping study, and we think the asset has world-class potential. It's a very exciting longer-term project for us. Clearly, the building blocks across this asset base are in place to underpin our desire to achieve mid-tier producer status. Let's look at Mandalay shareholders. They get the benefit from the Tomingley mine production, the size and scale of that, the cost profile of that and the growth potential of Boda-Kaiser. And Alkane shareholders, as well as the significantly strengthened balance sheet from the combined company, get exposure to the strategic antimony production from Costerfield and the diversified risk base that comes from having multiple assets. At this point, I'd like to turn over to Frazer to provide additional details on the transaction of the pro forma company.

Thank you, Nick, very much, and hello, everyone. Good morning to those in Australia, and good evening to those in North America and Europe. The details of this plan of arrangement transaction are provided in today's news release and summarized on this slide. I will briefly touch on a few of the key points. First, on a pro forma basis, the ownership split will be 55% Mandalay shareholders and 45% Alkane shareholders. Second, as to the consideration, under the terms of the arrangement agreement, Mandalay shareholders will receive 7.875 Alkane common shares for each Mandalay common share they own. As well, the implied market capitalization will be over AUD 1 billion or about CAD 900 million based on the closing prices of each company at the end of last week, and that's just based on mathematical addition before any potential re-rate. Currently, we expect the meeting of Mandalay shareholders and separately of the Alkane shareholders to occur on or about June 30 or, let's say, the end of Q2 of this year to approve the transaction. And following that, we would expect the transaction to close shortly afterwards in Q3 2025 calendar year. As to the Board of Directors and leadership, the company will have 6-person Board of Directors, and it will be very highly focused on creating value and accelerating additional growth. 3 of the directors will be nominated by Mandalay, that will be Bradford Mills, the current Chair of Mandalay, Dominic Duffy and myself. Each of us currently sits on Mandalay's Board, and each of us has served as CEO of Mandalay in the past. So we will carry an intimate knowledge of the Mandalay asset base. Alkane will nominate 2 directors: Ian Gandel, a seasoned executive, who is currently the Chair of Alkane and who is well known to Australian investors; and Nick Earner, who has been Managing Director since 2017 and currently serves as a Director of Alkane. The new Non-Executive Independent Chair will be Andy Quinn. Now Andy has 45 years of mining experience, including 15 years as CIBC World Markets Head of Mining Investment Banking in Europe and Africa. He has served on the Boards of Randgold and then Barrick since 2011, and he will retire in May of this year from that Board. He's also served on the Board of the London Bullion Market Association, and that's been since 2016 with the intent to retire later this year. This allows Andy to have full focus on his new role as the Independent Chair of this Board, and we are very fortunate to have him as that Chair with his extensive international experience. We believe this will be a world-class and internationally experienced Board that is well positioned to support the company through its next phase of planned growth. Collectively, the directors will own or control more than 20% of the pro forma shares, so their interests are certainly aligned with shareholders. As to the executive leadership of the Pro Forma management team, this will be led by Nick, who is a seasoned operator with deep ASX experience over 30 years, and he will continue to be supported by the existing Alkane team, which includes James Carter as the Chief Financial Officer since 2018. And 2 key members of the current Mandalay leadership team will remain in their roles. Ryan Austerberry, Chief Operating Officer; and Chris Davis, the Vice President of Exploration, both based in Australia, and they have had full operational responsibility of our 2 Mandalay assets. And they've done a great job in delivering consistent results as well as growing the collective mineral resources through our disciplined exploration programs. I have recently had the opportunity to get to know Nick and his team and have developed a great respect for what they are building. I am confident this merger will be a great fit, both culturally and in terms of a shared vision for future growth. Now as Nick described in his opening remarks, an important driver and rationale for completing this merger is the significantly enhanced position within the capital markets and which we believe will drive a valuation re-rate. I mentioned the higher market capitalization, which is a function of 2 strong companies joining forces, but more impactful is the increase in trading liquidity expected on both exchanges from the following factors: First, our pro forma shareholder base will be diversified, much more diversified, in fact, particularly in comparison to Mandalay's current register. Mandalay has a strong core of large shareholders granted that has limited its free float and liquidity in the past. Post-transaction, that same 60-plus percent ownership will now be spread amongst over a dozen holders, and the free float will be significantly larger. And secondly, the merged company would indicatively satisfy the requirements for inclusion in at least 2 important indices, the GDXJ and the ASX 300. In fact, Alkane is already part of the GDXJ. So institutional investors who track that index would need to purchase more shares to reflect a higher market capitalization. In the ASX region, well, that would drive even additional demand from passive investors in Australia. Looking at this slide, as to our enhanced capital markets position, we feel we're poised to capitalize on a significant re-rate. Looking at these 3 charts, starting from left to right, you'll see the bump in production is significant, as we shared before, 70,000 plus 90,000 is 160,000 for this year. It will be even larger at 180,000 ounces a year the following year. If you look at the next turnover, the bump in mineral resource endowment is significant, up to 13 million measured and indicated and 6 million inferred. But when you look at the final chart, the mathematical addition of the 2 market caps leading to AUD 1 billion market cap does not match what we expect would be a significant re-rate to line up with the 2 previous charts. Hence, that has us very excited and very driven by both GDXJ mounting and the ASX 300 inclusion. So finally, I want to share that when I joined Mandalay as CEO 2 years ago, it was with a mandate to build shareholder value both organically and inorganically. And during that time, our team has had the opportunity to meet with and evaluate a wide range of prospective partners from around the world. And I believe this merger with Alkane represents the best value creation opportunity available to Mandalay shareholders. It not only consolidates the valuation gains that we have achieved over the last 2 years, but it now also allows our shareholders to participate in the next phase of growth and with a compelling re-rate opportunity. So I'm really proud to support this transaction, and I look forward to fully continuing to serve on the Board and provide support for Nick and the executive leadership team. Nick, I now want to turn the call back to you for concluding remarks.

Great. Thanks, Frazer. For all the reasons Frazer and I have outlined, this true merger of equals creates a company that's built for growth with a clear and aligned vision. We will be well positioned for both organic growth opportunities, which we've outlined and future acquisitions. And let's look into the longer term where the Boda-Kaiser copper-gold project has even greater growth potential. Our strong operating fundamentals, together with a newly enhanced capital markets position will support an acquisition strategy that we expect to become an important part of our growth story. For all these reasons, there will be a wide range of strategic possibilities open to us that haven't historically been open to us as individual companies. I'm very excited about leading this significantly strengthened company. At this point, I reckon Frazer and I should open up to some questions. Operator, if you could please provide instructions to everyone participating on how to ask a question, let's get into it. Thanks.

[Operator Instructions] Your first question today comes from Paul Hissey with Moelis.

Congratulations on arriving at this point with the announcement. I just wanted to ask you, Nick, sort of how -- I mean you've sort of alluded to it with the discussion, but how this helps bring Boda a little bit more sort of closer or more tangible in the outlook? I mean, obviously, you're adding more production. But yes, just sort of take us a little bit further down into the weeds there around bringing that large undeveloped resource a little bit more nearer in the windscreen, if you will.

Thanks, Paul. Certainly, the immediate work we're doing on Boda, which is expanding our exploration out looking for other high-grade portions of the porphyry and all the environmental work that we're doing to allow our permit applications, that's unchanged. We do clearly have a significantly strengthened balance sheet as a combined group that allows us to really zero in on whatever exploration we want. And then we've articulated that the Board has indicated a passion for further growth. So we think we'll be in a much better negotiating position or execution position for when we seek out a partner for a joint venture on Boda. So I think what it does is it takes what some people might think is a bridge too far in terms of when that time comes and brings it much closer. We still want to have the view of a joint venture partner and other things. But certainly, we think that any doubts people might have about our capacity to accelerate through that decision point, I think that the strengthened balance sheet certainly removes that.

Great. And just perhaps to save me a couple of hours of Wikipedia. Just a bit of broad background on the antimony market. What's the size of the global market? And what's the -- I guess, the volumetric contribution from Costerfield?

Yes, I'll try to phrase that one, mate, do you want to...

Yes, Paul. Look, the antimony market, I would say, 87% to 90% of all the antimony that is produced in the world is out of Tajikistan, China and Russia. So that makes a pretty small percentage of which we are the largest producer in the Western world. So it's a pretty opaque market, but the price of antimony has gone up 4x, quadrupled, in the last year alone on the fast markets price. It's a great benefit to us, quite lucrative. It adds significant revenue for us at the Costerfield asset. To predict where that's going, all indications are that it's not going down, but I'd be too -- speculating too much to know where it's going to go up. So we're conservative in our budgeting, but it certainly comes along for the ride in our gold antimony con, and it's an additional benefit that we are quite pleased that we have at our Costerfield asset. And the True Blue discovery that's ramping up closer to surface has even more antimony in that. So we're quite excited about that as well. You'll get a chance to see that on our website.

Yes. And Nick, maybe just another question for you with, I guess, representing the Alkane side of the discussion here. I mean how did you find the due diligence on Costerfield, the asset and Victoria as an operating jurisdiction? I mean we -- from time to time, we hear some interesting stories emanating out of Fosterville and how the guys up there find operating in this state in Victoria where I'm sitting right now. How did you find the due diligence there? And what were your sort of key takeaways?

Yes, thanks. So as you've alluded to for everybody listening, we both did extensive due diligence on each other's assets. And I think operating in New South Wales, we're very, very familiar with a tight and rigorous regulatory regime. I think the key thing to note is, number one is Costerfield is operating, and it's been operating for a very long time successfully. And so we found that, of course, things like, I'll call it, expansion, right, which there's a lot of organic growth opportunities there at Costerfield, we noted that, yes, okay, there's a few years of approvals there. And we're not at all afraid of that. The Mandalay team is not afraid of that because that's our own experience at Tomingley in New South Wales as well, of course. So certainly, both of us as operating units have a Board commitment for making sure that we are very compliant and proactive and proactive in the communities. And so we felt it was quite similar, quite similar to New South Wales. Certainly, if we were talking about a complete greenfield's development elsewhere in the state, we would have been more wary of that, but that's not what we're talking about here.

And Paul, if you don't mind, if I could just add, Mandalay has been operating there for 15 years. It's had a 3- to 5-year mine life for the last 15 years. And we generate close to AUD 100 million free cash flow. That is free cash flow, AUD 100 million per year. So it's a little known gem. It is only 30 kilometers away from Fosterville, but it's a great asset for us, a cornerstone for us. So we think it adds significantly to the pro forma.

Great. Okay. And just one last question, perhaps for you, Nick, as well. Just for the -- I guess, the Alkane investors who've been on the ride for a while, I guess, notionally, you're ending up with a slightly smaller piece of the pie here of MergeCo. And look, I get there's relative valuation arguments there. But just, I guess, the reassurance to your investors, your Alkane investors who've been holders for a while, we're potentially about to start to see the payoff from several years of capital investment at Alkane, and we perhaps haven't seen the rally in the share price yet that might have been coming with that. So just the reassurance for the Alkane shareholders that you haven't cut this deal 6 months too early. I mean I get that you don't necessarily get to choose, but I think I get the question I'm asking here.

No, totally. And no, I don't think so at all. Obviously, we thought about these things a lot as a Board. If you look at it, we're taking the future growth plans that we have, and we're accelerating their capacity potential. So we've always said that we want to increase the business, de-risk, this does all of those things. I think any perception that people have or have commented on about balance sheet weakness as we go through the next phase of work at Tomingley, that's completely removed. We're lowering the percentage hedges within the business because the cash flow coming out of Björkdal and Costerfield at present is substantial. So I think for Alkane shareholders, rather than people seeing us work through our debt position and close that out, we're very comfortable that we're going to do that over the next 18 months. People can see that our growth ambitions come back to today. And particularly as well, Mandalay's share price for its assets has also been suppressed like Alkane's. And so that's why we find so much commonality in what we're doing.

Your next question comes from Paul Kaner with Ord Minnett.

Congratulations on tying this up. First one for you, Nick, and just following on from Paul's question on due diligence. I guess during that process, what did you uncover about the Mandalay operations? And I guess where do you see upside from here in those operations specifically?

Yes. So I'll keep mine relatively brief given that there's quite a bit we could say about it. But -- so what we saw was well-run operations, great people on the ground and a lot of commonality in culture about the way we approach risk, operating discipline and things like that, but particularly how we approach exploration. And so we saw a lot of upside in the current work, particularly at True Blue that's occurring at Costerfield. So as Frazer noted, this is an operation that for over 15 years has always had 2 to 4 years mine life ahead of it. And we certainly see that we can add that at Costerfield. And at Björkdal, if we look at -- again, at their announcements, the extensions that they've identified at depth and some small satellite deposits, even potential with open cut operations there, we saw could potentially add extra ounces given they already have a 10-year mine life, things with higher grade in there. So we're pretty excited about that. When you complement that to all the extensions that we have underground at Tomingley, we think we've got a pretty solid base here because we're really focused on the grade and the cash flow that comes out of these rather than the particular ounces.

Yes, that's great. And then secondly, I guess, just on how long discussions have been sort of going on for? And then I'll sort of come back with the third.

Yes, absolutely. I mean Frazer can chip in on this as well. But Frazer and I first met, what was it, mate, 2 years ago? And got to know each other a little bit. We're both very like-minded in what we're looking for. And then about a year ago, we started talking more seriously about what if this and what if that. And then 6 months ago, we really got into it. I think anybody looking will realize this has been a pretty volatile market to land things in, and it shows about the trust, the due diligence, the mutual agreement we've had between Board and management in order to land in such a volatile environment because we -- these ratios we've been zeroed in on for quite a while, and both of our share prices have moved plus or minus 10%, just depending on international [ fun and games ]. Frazer, do you want to add to that?

Yes. I mean it's been quite exceptional when we look between whatever metric you want to look at, market capitalization, enterprise value, net asset value, production, operating cash flow, free cash flow. You look at that football field of co-contribution and it's incredibly pretty well right down the middle, there's a few that tip either side, but right down the middle. So we really do see that this is a great merger of equals with coal contribution that makes a lot of sense and releases that both economies of scale, the diversified production, premier jurisdiction still increased trading liquidity, index listing, strong platform, mid-cap market cap AUD 1 billion plus free cash flow, probably going to be annually about AUD 500 million based on a revenue of close to AUD 1 billion. So the numbers, it's quite exceptional. The stars aligned, and Nick and I are extremely excited that this works is going to work out.

Yes, that's awesome. And then just lastly, I guess, if you could label one thing, Nick, I guess, what's the biggest benefit to your shareholders? And then I'll ask the same to Frazer as well.

Biggest benefit to our shareholders is the improved size, scale and access to capital markets, that strengthened position and strengthened relevance, allowing us to pursue both organic and inorganic opportunities with a lot more head. We're really putting [ rock to fuel under ] our ambitions.

Yes, Paul. And similar to us, I mean, part of our challenge, we had a very supportive but highly concentrated shareholder base. So now that opens up a lot of trading liquidity, increased free float. It's always good to have 3 or 4 assets as opposed to 1 or 2 assets in a portfolio when you're a public company. It's the scale issue. It gets us the index listing now on 2 different formats. So it really -- there really is a win-win all around here. So we're pretty pumped about it.

Yes, thanks. And I think what we might do now is take the opportunity before we run out of time to take a few questions off the web because we have quite a few coming in there as well. Natalie, could you?

Sure. Okay. So first question that we have is, do Mandalay have any hedging? And how exposed is Alkane to its current hedging position to a cash squeeze call?

Sure. Nick, maybe I'll take that first and hand over to you.

Yes.

We essentially have hardly any hedges left. We had minor hedges that we put in last year. I think there's maybe 5,000 or 6,000 ounces left for the year, and then it's over at about 2,100, 2,200 gold. So it's very minor. Nick can speak to the hedge that's remaining for the 24 months, let's say, come close. But really, we've talked about this combined. On the pro forma, that hedge runs for maybe 24 months at less than 18% of the annual production profile and continuing to diminish. So that's a much different picture than maybe what currently sits for Alkane, but I'll hand you to do that...

Spot on. Look, we don't have a cash squeeze at all. The way that the hedging works is you pay into it. And we've been paying into that at 33%, 35-odd percent. And as Frazer noted, that will significantly change. So there is no -- the way forwards work, there is no cash call. There is -- nothing at all about that. So it's nothing we're particularly worried about at all.

Does this allow for internal funding of Boda-Kaiser?

Look, I think I addressed that when I spoke to Paul right at the start. In its current position, like I said, we'll be looking for -- nothing really changes about our ambitions. Remember, we have a new Board forming, right? So we need to line up the Board's strategic direction. And the FID in Boda-Kaiser will be post approval, so typically 5 years away. It certainly improves our capacity to get to that point and negotiating position at that point, but I would not want people to in any way think that this means we're committed to complete and full development on our own. We'd still be looking for a joint venture partner, but the Board will consider that in some years' time.

Does Björkdal fit into your long-term plans as the only non-Australian asset?

I guess I'll field that one first, even though Frozen I'll be on the Board together. Absolutely, yes. I mean Björkdal is a great asset. It's pumping out $25 million to $50 million a year. It's got 10 years ahead of it. It's got organic growth opportunities. We have no plans to change that. In fact, what we want to be doing is continuing to grow the company further and look at other acquisitions around the place. Frazer, do you want to add to that? I mean it's a great [indiscernible]...

No. I mean, Björkdal has been operating since 1988. It's literally contiguous to adjacent to Boliden's namesake 100-year-old asset there. It's got a 10-year mine life. 37 years, another 10 years is 47 years. We continue to replace there. We generate, again, upwards of over AUD 50 million free cash flow. I always talk about free cash flow after all capital a year there. So it's a great asset in a Tier 1 jurisdiction in Scandinavia, Sweden and to be exact. So I think it's a great -- but again, as Nick said, these are decisions that Nick and the pro forma Board will make in due course after close in early Q3 of this calendar year.

Are you committed to maintaining a TSX listing for the long term?

Well, certainly, we hope so because that would mean that we're getting a significant response in trading on the Toronto market. So absolutely. We think there's a lot to appeal about this merged entity that should see buying on both markets. And certainly, there's a real North American appetite for profitable cash flow and gold mines. There's an appetite for antimony on the ASX market. Clearly, we will see -- people haven't been able to get a producing antimony exposure. They're going to get that through this. So yes, absolutely, we see the TSX listing remaining. That said, of course, if we find that there's a vast majority of trading over several years occurs in one jurisdiction or the other, then of course, the Board would review that. But at the moment, yes, we intend to maintain listings. So Nat, do we have any other questions coming on the webcast at the moment?

Yes. We've just had another one come through. Congratulations on the proposed merger. It makes good sense. You've touched on exploration aspects in the course of the call, but historically, Mandalay has not been big on exploration and has been constrained by modest cash flows in recent years. So can you indicate whether there is likely to be significantly increased exploration on the Mandalay assets, particularly at Costerfield?

Yes, Nick, I might answer that. That's a fair comment maybe historically. However, exploration is a key pillar for us. It's one of our 3 legs to the stool that Mandalay had in terms of operations, organic exploration and inorganic M&A. We have actually doubled exploration spend since I came in 2 years ago as the CEO with a 2/3, 1/3 split to Costerfield. And now in light of True Blue, we are extremely excited about that, ramping that up. We have about USD 10 million in the budget that's U.S. dollars for half a year. And -- but ultimately, the short answer is yes. And -- but that's a pro forma Board decision in terms of how that capital will be allocated in terms -- and including exploration. But exploration to us, it's a pretty cheap efficient form of capital replacement. We have replaced resources at both operations at between 1% to 2% of the spot price. I'm talking Björkdal and Costerfield. So it's hard to beat that from an efficiency point of view, even sometimes it takes a little bit longer. So exploration is a core value for us. Nick?

Look, I'll just echo what Frazer said and to reiterate that exploration is in the DNA of both companies, and it's just another shared value that we have. So absolutely. Nat Matt, it doesn't look like we've got other questions coming in. So look...

And Nick, I might just add one last thing before maybe you conclude. One thing -- we -- Nick and I have talked about this, and we're very focused and in the past, I'm very focused ultimately on cash flow generation. And when we look at the numbers going forward here at a combined, let's call it, 180,000 ounces, even considering the 16%, 17% hedge, we look at our all-in cost at $1,420, that's a margin of USD 1,900 at a few hundred dollars less than today's spot price. So when we step back, that is a free cash flow generation that we could predict. That approaches AUD 0.5 billion, AUD 0.5 billion annually. That's a 2x cash flow multiple for a market cap mathematically that's only AUD 1 billion. And usually, you used to EBITDA multiples of 4x to 5x. So again, we're really excited about being in a healthy position pro forma, pristine balance sheet, net cash positive, not just AUD 188 million in cash after, that's based on March 31, but we continue to generate cash. So really, I just wanted to share that again, Nick and I have talked about it a lot that the fundamentals from an economic point of view as well to us are very exciting.

Great, Frazer. Thanks very much. And look, thanks, Natalie. Thanks, [ Ashley ]. I'm going to have to wrap it up now. There was a couple of questions that I just won't be able to get to. And hopefully, Frazer and I can answer those directly with some of the brokers and others that are getting back in touch with us. So look, let me just wrap this up, and Frazer has already done a very good job of that. So I won't touch on too much. We think significant value to both sets of shareholders. We got 180,000 ounces in '26 production from 3 mines, all in great jurisdictions. Frazer has talked about the cash position. He's talked about the gap that exists between reality and valuation. So we're really hoping for a re-rate here driven by all the fundamentals of the business. And lastly, we have a shared vision for continued growth, both organically and inorganically. So to let you all know, Frazer and I can be meeting with shareholders of both companies and other investors over the coming days and weeks. We look forward to continuing discussion with all of you. Take care, and thanks for listening.

Thanks very much, everyone. Cheers.

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