Rio2 Limited ($RIO)

[Audio Gap] mine exploration, mostly at depth. Section for the geologically inclined people here. This is -- basically, it's an old diet treatment of volcano, the sort of vertical structure, as you can see in the colors are volcanic bridge pipes and the mineralization is generally associated with the bridge pipes and to a degree and stock work around in the host rock. So it's a big bulk, low-grade oxide gold project. And the thing that you're probably not seeing from here, but the attitude, the highest point in that cross-section or long section rather at Phoenix North is close to 5,000 meters in Fenix Central's 4,900 and then Fenix South is closer to 4,800. So there's a high altitude mine, and that does have some challenges. You can see in the blue -- the light blue line, that's the reserve show at 1,600 from the '23 feasibility study and then the black line under that is the resource shell at $1,800 gold. The exploration program that we're doing is orientated to depth in the section under Fenix North, we don't have much drilling information now. And when we run the gold at $4,000 or $5,000 the pits, not pulling them because we haven't got information down below that. So we're targeting deep drilling in this campaign to try and include it in our resources. Shorter Fenix South, where we're mining today. This is a peak of a hill when we started. So we've had some break-in issues there getting started, getting flat area opened up. We're now not tripping over ourselves finally. We've opened up space. We've got drilling heaping we can get great control in front of us, slightly starting to put some order into the mining and deliver the tons like we played to the leach pad. Some recent fires, the construction of the leach pad to the top left, that's ongoing. To the right is the process plant and the BLS point we were storing water at the moment would have been delivered by trucks currently 1,400 cubic meters per day. For over Gold poor and then in the bottom right-hand the exploration driving the deep drilling that we're doing. Condestable, the second project we brought in a lot of people are saying, why? Copper way underground, and we're typically known as an open cast heap leach run of mine operator that's what projects have been. But it was an opportunistic purchase. It was a project that's close to that in Peru we very to access from labor that generates good cash flow, steady production for the last 10 years, and it's currently producing at 8,400 tonnes per day or roughly 27,000 tonnes of copper equivalent. And if you want to put that in the gold terms, I have to do it in my head, but it's 80,000 ounces, roughly equivalent of gold. So it's -- the Condestable project for us, and that's a running mine doesn't need CapEx funded. It doesn't need much support. It's got a regular management team and -- we see there's a bolt-on cash flow generated to Fenix to help fund the expansion of the Fenix project. Just on data, 60 years of production, the copper equivalent 27,000 again, currently reserves 11 years. So we bought a project with 11 years of reserves in front of it. There is some big expansion potential near term to move from 8,400 tonnes per day to 10 and then 12 through permitting that's basically largely completed, very good mining costs to last $25 per pound. This is for a medium-sized mine. I think that's pretty competitive. And again, a big land package of unexplored hectares that need to be looked at, but we just time and budget. We need to do something. Some photos of Condestable It's a rare mining in Peru. It's on the coast. It looks out at the coast, low altitude, so a very desirable place to work versus 4,800 meters, for example. Condestable beach houses at the beach, as nice place to work for of the filtration plant. So we're currently -- Condestable currently moving from retailing to stack that is largely advanced to be commissioned in the next month. The electric trucks, there's currently an ongoing trial of 6 electric trucks, BYD trucks underground that seems to be going well, reducing cost, reducing emissions, reducing ventilation, et cetera, et cetera, and underground mining. So the corporate sector, currently, at today's price, we're roughly worth USD 1.1 billion as a company, share price of $280 million. The cash balance is $93 million, and we have associated with that $87 million of debt, which is related to the Condestable purchase. Our share price was going very well at the end of last year, it was climbing nicely the rerate from construction operation, the acquisition of the Condestable project, which was received very well by the market, pushed us up to $4 in gold came off. Trump and Valeant lots of turbulence, lots of -- you see some of those debtors transaction. Some of those days was 15 million, 20 million shares being traded. So it had a big impact and we seem to be recovering and climbing. It's also a list of some of our shareholders, the biggest shareholders insider holdings in the company are currently around. So what are we doing? What are we looking for going forward with Rio2 assets, but both of them have organic growth potential, and this is what we're basically aiming for as a company we're ramping up Fenix this year, 2026. We expect to produce 60,000 to 70,000 ounces. And from 2027 onwards, we get to a flat rate of 20,000 tonnes per day to the leach pad, and that allows us to produce 100,000 ounces for 4 or 5 years. We are pushing to release a PFS study on the expansion case at the end of this quarter, currently waiting on 2 costing studies for a deal pipeline from Copiapo to the project, and we need the data for CapEx for OpEx for the time line. And then that will allow us to publish a fetal document, which will let the market see what the potential space Fenix looks like in the future. The drilling that I mentioned, drilling, which will internally to an updated MRE statement at the end of the year and making a decision on the pipeline, the water supplier within stat engineering feasibility studies, permitting, EIA process, and we expect that to take us into like the end of 2028. So ideally, we would be taking a construction decision on the expansion at the end of 2028. Rough numbers, currently estimated to be $400 million on the pipeline and $150 million CapEx on the project itself with internal expansion, so that's for pipe figures, not from the studies, but from the preliminary information we see. So from 2028 at the end of '28, basically a 2-year construction time frame for the pipeline and the project in parallel. And from, let's say, 2031, we would be ramping up again at Fenix towards 80,000 tonnes per day and 300 ounces per 100 ounces per year production profile. In the case of Condestable, is currently taking along at 8,400 tonnes per day. The mineral reserve resource statement due quarter, which will basically reflect that we've maintained 10, 11 years of reserve life in front of ourselves. So we've covered depletion in this period. And finally, the approval of the modification to the AAA for the 8,400 -- about 400 tonnes per day process or project to 10,000 tonnes per day. So that will be granted in roughly June. We then have environmental permit to expand the project to 10%. And then on top of that, additionally, we can ask for a 20% additional production capacity on a short-form permits. So looking forward, we've got the ability now to take this project to 12,000 tonnes per day throughput. How do we do that? Okay, we need obviously the plant to be upgraded. So we're currently looking at that. We have an engineering construction team for Fenix -- finished in Fenix. I come back to Peru and the aging involved in this project. We estimate a CapEx of around 50 -- some 50 million to upgrade the plant to 12,000 tonnes per day. And in parallel, the filter plant that you saw, the dry stack tailings at that deals with the tailings aspect of the expansion we have something like 100 million tonnes of space permitted in the new modification for -- So that's resolved and the Vista also resolved the order issue. So the extra water required to go to 12,000 tonnes a day comes from the dry-stack filter filtration plant. We are also allocating $5 million to near-mine exploration and condensate. And what we're looking for there is at the surface historical were 2 open pits above the underground operations. And we see potential there to prove up a resource at surface. It could be millions of tonnes at a grade of 0.5 roughly been left behind historically and today that very interesting just from an open line perspective to the plant. The mines operating at about 0.75 copper currently, 0.2 to 5 gold and silver, which equates to about 1% copper equivalent. And then with that information on the drilling and they may require more drilling assess options to develop the project in parallel, and that may be part of the 12,000 tonne a expansion plan or maybe a separate aspect of the project, depending on the resource that we discover. So that's basically Condestable -- is a video to finish. It's probably a feel good video. It's human resource shots and people doing stuff. And sort of -- of appreciate that like [Presentation]

So the Fenix video, unfortunately, was very construction-oriented. We need to talk to our communications people and upgrade that to more of a mining-oriented video, but that's what we've been doing for the last 15 months, so it's still stacking the videos a little bit. So that's the presentation what we're doing and where we're trying to go. Thank you.

Any questions from the floor.

Congratulations, Andrew. I'm getting Fenix up and running at outage. That's now mean feat. But my question actually relates to your Condestable project with full security on everybody's mind, I note that you're trialing some electric trucks there. Are you able to share with us what the average run time is that you're getting out of those? Or are they sort of proving to be good? Or what's your thoughts on that?

Economically, yes. I don't have that technical data, sorry, on what the run times are on an economical per tonne basis, it's some significant savings. So Marianne, you don't have any bit of information on that? [indiscernible]

Any other question?

-- that's the line I had one also on contestable. And that is, well, you need to borrow in order to bring on those expansion things?

No. We expect that to be self-funding. The Condestable cash flow generated and these current copper prices and gold prices, we don't expect to have any trouble in Fenix is just going cash flow positive that's producing in Fenix and covering our costs now. And as we ramp up, that will improve. So we don't intend to do any more capital raises or financing...

And the production grade for the first few years at Fenix?

Okay. So Fenix, as like I mentioned, a big bulk low-grade oxide project. We're doing run of mine, and we expect to achieve about a 75% recovery from all the test work that appears to be panning out in reality. The head grade of the average project of the state project or the Phase 1 20,000-tonne project -- it's 0.5%. We're currently feeding to the pad at about 0.6%. So we're migrating to a degree to improve the cash flow in the first year. So we'll try to maintain that for the first 3 years at about [ 0.65 ] if we can. And then take a respect to the average grade of 0.5, 0.48 in year 3, year 4 onwards.

Any other question? Thank you very much.

Yes, welcome.