LINRF (LINRF) Q4 2026 Earnings Report, Transcript and Summary

Welcome to the Liontown FY '26 End of Year Results Call. [Operator Instructions] I'll now hand over to Tony Ottaviano, Managing Director and Chief Executive Officer of Liontown.

Thank you, Michelle, and good morning, and thank you for joining us today. With me today is Ryan Hair, our Chief Operating Officer; Greg Jason, our Chief Financial Officer; and Grant Donald, our Chief Commercial Officer, who's based in Perth at the moment. Each will take you through their part of this financial year. This financial year, Kathleen Valley delivered its maiden profit and a strong operating cash flow while ramping up and assisted by better prices in the second half. We generated $182 million in operating cash with an NPAT of $93 million and an underlying NPAT of $14 million. The market handed us 2 very different halves this year. Prices were weak early, so we kept costs tight and preserved cash. When the market turned, we backed our assessment of it, and we are now reinvesting in Kathleen Valley with the same discipline we used to protect it. Following a China trip by our Board, we gained confidence that the momentum for growth was clear and strong, and we moved quickly to approve the early works capital for our expansion project. Now on the specifics for the year. We concluded open pit mining and the underground ramp-up is going to plan. And there's more on that when Ryan does his session. We're on track for 2.8 million tonnes run rate by the end of this financial year, a figure that we've had in the market for some time. As we enter FY '27, the focus is 3 things: safe, stable operations and a business that is resilient through the cycle, growing responsibly with the final investment decision on Kathleen Valley expansion, which is due next month. We are ready to scale. The processing plant was designed and installed for 4 million tonnes per year from the start. So much of the expansion capacity is already in the ground. This makes the expansion capital efficient and lets us bring production to market incrementally and flexibly matched to the market rather than in one step. We would fund it from our operating cash and have a strong balance sheet, and we have the team to execute it. Ryan will now take you through the safety and sustainability sections. Ryan, over to you.

Thanks, Tony. We go to the next slide. Thanks, Michelle. So our safety performance for the year didn't meet the standards that we would expect. Our total recordable injury frequency rate for the year was 10.99 against 7.39 last year. And our lost time injury frequency rate was 1 against 0.92. The increase has been driven in the main by manual handling injuries across contracted work groups. We've responded with targeted work on field leadership and contractor oversight, and our focus remains on keeping people safe and preventing high consequence events. The leading indicator is moving in the right direction. Safety observations were 4.74 per 1,000 hours, up from 2.61. That's a near doubling in hazard reporting and tells us people are proactively looking for risks in the workplace. These are rolling 12-month measures, so they move slowly. We expect the work underway to have an impact through the course of FY '27. Turning now to sustainability on the next slide. Female participation was 26% and half of our Board is female. Female representation in leadership is just over 17%. We have more to do there. Our focus continues to be on creating an inclusive workplace and developing and retaining our team. Renewable power penetration was 80% across FY '26. That is the hybrid wind, solar and battery system doing what we built it to do and reducing our exposure to diesel and gas. We recorded 0 material environmental incidents for the year. Lastly, we procured around $530 million in goods and services in Australia with around $450 million of that in Western Australia and roughly $24 million in -- with aboriginal businesses. And with that, I'll hand back to Tony.

Thanks, Ryan. If we go to the next slide, please, Michelle. This year, we concluded our open pit mining on schedule during the year and Kathleen Valley is now 100% underground operation. This was the operational transition, which was planned in the DFS in 2021, but we revised it in November '24 and delivered in FY '26 against challenging market conditions. With that in context, FY '26 was our strongest year of development at 9,737 meters, and that is what unlocks the underground mining capacity for the ramp-up. We mined 2.2 million tonnes of ore with 1.29 million tonnes of that coming from the underground, and we processed 2.5 million tonnes of material through the plant at a very high plant availability. We produced 392,000 tonnes of concentrate, and we shipped 382,000, both weighted at an average concentrate grade of 5.1%. This is the foundation for the ramp-up to 2.8 and everything we're doing for the year ahead. Go to the next slide, please. To the financials at a headline level. Greg will take you through more detail as he goes through his section shortly. Revenue was a record $639 million, more than double FY '25 on higher production and the recovery in price. Our average realized price for the year was USD 1,379, and I'll put that in context a little bit later in the presentation and up 75%, notwithstanding from the prior year, and it's a stronger second half from a price perspective. That feeds straight to cash. We delivered $182 million of operating cash flow and an underlying EBITDA of $147 million. NPAT was $93 million, which includes full recognition of prior year tax losses and the underlying NPAT was $14 million, the first underlying NPAT for Kathleen Valley positive. One number to hold on to, we generated $182 million in operating cash before operations reach the full 2.8 million tonne run rate. This is a business that is cash generative through the transition to full underground production. If we go to the next slide, please, Michelle. And again, I want to sort of put the year in context and FY '27 in context. As we sit here today, it's easy to step over the fact that less than a year ago, the market conditions were materially different. This slide illustrates 2 critical numbers. At June 30 last year, the spot price was USD 630 a tonne. 30th of June this year, it's risen to USD 2,210, an increase of 251%. How we got here was a strategic choice, which we executed. In November 2024, when the price was weak, we made deliberate decisions. We slowed down the underground ramp-up, moved to a flat 2.8 million tonnes a year mine plan from the end of FY '27, and we deferred nonessential capital works and pushed out Northwest Flats to FY '31. We took roughly 38,000 meters of development out of our mine schedule. Every one of these moves preserved optionality, which we are now realizing. The market has turned. It's turned the way we said it would. The same discipline that we've now used to preserve cash, we will point towards growth. We're accelerating development, restarting the capital we deferred and recommissioning Northwest Flats. But we will continue to be disciplined on our costs, and Ryan's team are working on that every day. And we want to make sure that we put our team's innovation to the shoulder and put creativity first and make capital a last resort if we can. This is how we protected the business through the downturn, and this is how we're going to invest in the business as we take advantage of the better market. And we're funding this growth from our own operating cash flows. Next slide, please. So given that context, we are now pivoted to disciplined growth, and we're focusing on 3 strategic priorities for this year. These are our vision. We start with that to be a globally significant provider of battery materials and with 4 outcomes which are constant, which is safe, stable operations, resilient through the cycle and being a reliable partner and profitable growth. These are delivered by focusing on 3 priorities: First, the ramp up to 2.8 million tonnes per year by the end of this financial year, and that scale will deliver cost and productivity benefits. Second, deliver Kathleen Valley's full potential. We've started Northwest Flats, the process plant to give us the full capability of its recovery potential and expansion decision to move beyond 2.8 million tonnes. Thirdly, pursue the next wave of growth by selectively advancing exploration around Kathleen Valley and Buldania, holding on to the downstream optionality, but being very disciplined if we pursue any M&A activities. Under all of it are the 3 enablers that don't move. We operate responsibly, we keep the mine plan flexible to the market, and we hold the financial discipline. Now Greg will take you through the detailed financials.

Thanks, Tony. Good morning, everybody. You can see the top left chart on Slide 10 depicts the revenue more than doubling from almost $300 million in '25 to almost $640 million in '26. And this was driven by a 35% increase in tonnes shipped, as you can see in the chart bottom left, and the 75% increase in realized price on the USD SC6 basis, which you can see top right. The conversion wasn't quite as high once we got to Aussie dollars because there was roughly a $0.04 appreciation of the Aussie relative to the U.S. when we compare the 2 years. Unit operating cost is bottom right. You can see it's 23% higher than the second half of '25, going up to $984 and this was fundamentally driven by the transition to underground mining. Underground ore represented 18% of total ore mined in the second half of '25, was 37% in the first half of this year, 100% in the second half and an average of 58% for all of FY '26. Moving to Slide 11. You can see the EBITDA NPAT. So we had $147 million of underlying EBITDA, which you can see on the left-hand side. This reflects the growth in production sales and materially higher price. This is compared to an underlying EBITDA of $20 million in the prior year. The underlying NPAT of $14 million is the gray in the middle of the chart. The first underlying NPAT generated from Kathleen Valley operations and includes the transition from open pit to underground. Depreciation and amortization was about $13 million lower than the prior year. We had a lot of amortization of deferred stripping in FY '25 because the short life of the Kathleen's Corner open pit meant we had to write off that capital in a short period. And then in '26, we didn't declare commercial production for the underground mine until 1st of April, and hence, a lighter amortization load for that capital. $31 million of net finance expenses slightly less than '25 because we earned more interest on cash at bank, and we recognized $10 million income tax benefit from tax losses generated in '26. The reason we've got losses on a tax level as opposed to the accounting is that we get an upfront deduction for a lot of the capital development underground and we also get accelerated tax depreciation on many assets using a diminishing value method for tax that [indiscernible]. Moving across to NPAT of $93 million. That includes a few adjustments for nonrecurring items. The most significant is the recognition of $113 million for a deferred tax asset for carryforward tax losses from prior years. And this was supported by a couple of things. One, the underground mine moving into commercial production and the significance of that is that, of course, the underground mine will generate the taxable income against which we'll utilize those losses. And the second factor was the stronger price outlook. The other big adjustment in the chart is that we had a fair bit of accounting noise around the LGES convertible notes with fair value and FX adjustments between 30 June last year and 4th of Feb this year when the conversion occurred. So we back those out to get to the underlying, but they are, of course, in the headline number. Moving to cash flow on Slide 12. We began the year with $156 million in bank, $182 million of operating cash flow. You can see that every quarter got better than the one before, pretty good pattern to have. We had similar sales tonnes across the 2 halves and the improving operating cash flow from quarter-to-quarter was driven by the improved pricing. Keep in mind that we've got price lags embedded in our offtake agreements and therefore, the higher pricing in Q3 then resulted in higher cash receipts in Q4. Equity raising in August was the lion's share of the financing activities. And then we had $134 million of total CapEx on a cash basis, including $14 million of early works ahead of the FID decision expected this quarter. Closed the year with $561 million, as you can see far right, which gives us a great platform to fully fund the ramp-up and the continued expansion of Kathleen Valley. Moving to debt and gearing on Slide 13. Total debt, including derivatives and the derivative was related to the convertible notes has decreased $353 million to $369 million at year-end. This is a massive turnaround from a net debt position of $567 million at the end of the prior year. Gross gearing reduced from 55% to 20% and net gearing was 0 compared with 49% a year ago. Finally, moving to the debt maturity profile on Slide 14. Our forward interest and principal payments commenced this quarter. We'll be amortizing the forward debt at the rate of AUD 45 million per year and have a balloon payment of AUD 175 million.

Next slide, please, Michelle.

Yes. Thanks, Tony. So you can see the quarterly repayments that's the $45 million in each of '27, '28 carried on into '29, '30 for the balloon at the end. And we've got a $15 million interest-free loan from the WA state government under their Lithium Industry Support Program, and we have commenced paying that off in quarterly amounts that will be done across FY '27 and FY '28. I'll now pass back to Tony to go through the FY '27 lookahead.

Thank you, Greg. This is now actually Ryan. So we'll get to Ryan to do his piece.

Thank you, Greg and Tony. So look, over the next few slides, I wanted to provide some color on how we get from where we are today at roughly 1.5 million tonne per annum run rate to 2.8 million by the end of FY '27. Fundamentally, 2 things drive that: work fronts and equipment. On work fronts, FY '26 was our strongest year of development at just under 10,000 meters. That foundation and further development through FY '27 opens 7 new mine levels and takes us from 4 active work areas today to 14 by the end of the year. Total material moved nearly doubles from 2 million tonnes last year to just under 4 million tonnes in FY '27. On equipment, the fleet nearly doubles from 21 to 41, jumbos and production drills from 4 to 7, loaders 6 to 12 and trucks 7 to 15. The point I want to emphasize though is sequencing. The step-up comes from the second quarter once the lower levels are open and then builds through the year. Why is this so important? Well, with the underground ramping up, obviously, that material becomes the dominant feed, which drives recovery in the plant. On to the next slide, thanks. So this is what one of those levels looks like. This is level 2285 or 235 meters below surface at Mt Mann. And this is our next mining front. Three deliberate design features drive productivity and resilience. Dual access to the level and a dual cross-cut design allow concurrent activities. Truck loading bays that are off the main traffic route allow loading to be undertaken and not compete with haulage. So where we are today, shown in blue, access from the decline is complete, the majority of cross-cut development is complete and ore drives, which are shown in orange, commenced in September. This is what puts us on track for the step-up from the second quarter. The other point to note, of course, is that we continue to extract from the upper levels at the 1.5 million tonne run rate whilst building these lower levels. On to the next slide, thanks. So this slide shows why the ramp-up gets easier from here and not harder. It shows ore contained by level at Mt Mann. In the upper levels of the mine, each level holds between 0.2 million and 0.7 million tonnes. The level on the previous slide, 235 meters below surface, holds 1.2 million tonnes. From 260 meters down, levels carry between 2 million and 5 million tonnes. In simple terms, the levels we've been mining give us about 18,000 tonnes of ore for every vertical meter developed. On current and future levels, that is about 115,000 tonnes, more than 6x the ore for the same vertical development. There's 2 consequences arising from this. Firstly, scale, a single lower level holds on average a year of plant feed, and that gives us flexibility in sequencing. And secondly, quality. These levels carry a higher proportion of stope ore relative to development ore, which lifts the grade and consistency of what we send to the plant. Next slide. Thanks, Michelle. Turning to the expansion early works. By way of a recap, 3 main scope items here. Number one, Stage 1 of the permanent mine services area. Secondly, the 5.5 meg ball mill, which is the critical path item for both throughput and recovery; and thirdly, underground development at Northwest Flats. Capital is up to $77 million of early works ahead of FID. And as Greg mentioned, $14 million was incurred in FY '26. The project team is in place. Ball mill engineering design is well advanced and ball mill fabrication is progressing. Earthworks and construction have started at the mine services area and at Northwest Flats, we have grade control drilling, portal recommissioning and infrastructure works well underway. You can see some of this in the images on the left screen. Lastly, FID remains on track for the end of next month. Next slide, thanks, Michelle. Northwest Flats is worth explaining and Tony has touched on, it is the clearest example of the optionality we preserved and are now activating now that we have the signal from the market. In the November '24 mine optimization, we deferred Northwest Flats to FY '31. We recommenced development at the end of FY '26. Additional portals and infrastructure through the open pit commenced in quarter 2 FY '27 with infrastructure established over the last few months. We expect development ore from Northwest Flats later in FY '27. Notably, the completed open pit has provided a second entry into the ore body. That gives us a mining front independent of Mount Mann, which is what underwrites volume beyond 2.8 million tonnes per year. Next slide, thank you. On the plant, the key point is that the expansion is not a new plant. The circuit was designed for 4 million tonnes per annum under the original feasibility study. Crushing, screening, flotation and tailings are all sized for that. The items in orange are the focus areas of expansion, ball mill for grinding capacity, magnetic separation, water supply and storage and concentrate storage. Of course, at the next level of detail, we will also need to upgrade pumps and pipes. This is why this expansion is expected to be capital efficient and why it can be staged. We are filling in a flow sheet that was built for this volume from the start. And with that, I'll hand back to Tony.

Next slide, please, Michelle. Thank you, Ryan. Let me recap FY '27 guidance, which we gave at the end of Q4 and be clear about what it actually represents, starting with a point we've reiterated throughout this presentation. Our FY '27 guidance includes balancing our plant throughput and stockpiles with mine ramp-up. There's no surprises here. This was the November 2024 plan being executed and the reinvesting we are doing in FY '27 makes it more resilient, moving us from a previous flat 2.8 million tonne world to building the foundations for the new expansion world. With that context, concentrate production of 390,000 to 440,000 tonnes, this production guidance accounts for the additional downtime we require to tie in expansion works during FY '27. On our cost guidance of $1,050 to $1,250 a tonne sold, I want to provide some further explanation here. We disclosed to the market in November 2024 that our 2.8 million tonne run rate was by the end of FY '27. In Q3 FY '26, we also disclosed that our next 2 quarters of underground production will be flat as we build out the development fronts, which one of those Ryan has just spoken through for the next increase of production to the 2.8 million tonne run rate. We are, therefore, not at full run rate and some of that time is investing into the FY '28 ramp-up, but also the expansion. These 2 factors combined are the drivers of the higher cost structures we're seeing in the '27 guidance. Ryan has already illustrated some of those examples as to why this quarterly -- these costs have gone. Firstly, the total productive movement has increased from 2 million to 3.9 million, a 95% increase. To make this increase, we are bringing on more equipment ahead of the 2.8 million tonnes and started the expansion development in Northwest Flats. That is the work that takes us to 2.8 million tonnes a year run rate by the end of FY '27, and the production shows up in FY '28. We see this impact on volume on fixed costs as we get to the other side of it. The investment ahead of production is what we're doing at present. We will provide further guidance on our forward cost structure when we publish our FID announcement, hopefully, later next month, all things being equal with the Board approving it. The total CapEx of $320 million to $370 million, which doesn't include the expansion capital, sits behind next month's investment decision. More on that on the next slide. But before I move on that, Michelle, I do want to go back and look at the Q1 look ahead. So we've already spoken about this quarter being consistent with the previous quarter in terms of our underground production at roughly the 1.5 million tonne run rate. The recovery profile on the basis of that will be consistent with the H2 FY '26 results due to the feed mix. I want to stress that. And deferred shipment for Q1 FY '26 (sic) [ FY '27 ] is expected due to significant surge events and planned maintenance at the port. That doesn't mean there's any issue here with volume. It's just deferred, and we'll make that up in the course of the year. So that's what I wanted to mention in terms of giving the market a bit of a look ahead for this quarter. So if we move to the next slide, which we'll quickly talk about on the sustaining capital and the capital in total. So we've got $90 million to $110 million of sustaining capital. That's basically to deliver a stronger base. That's the business as usual, tailings dam lifts, underground development, and processing plant maintenance. Then you've got the ramp-up development work. This is the capital we required to continue the ramp-up to 2.8 million. Then we've got mine infrastructure and optimization. I mentioned in my earlier slides around the fact that we deferred capital during the low pricing cycle to preserve cash, for example, the mine services area, plant optimization, non-process infrastructure, but we're now reinvesting in the business given our lookahead. And as Greg has already mentioned, we'll fund -- we're funding this from a position of strength with $561 million in cash, which means the program can be funded from operating cash. So next slide, please. I'll now hand over to Grant Donald, and he'll take you through our marketing outlook.

Thanks, Tony. On the left-hand chart here, we've included a Fastmarkets slide demonstrating the gap between supply and demand. I think this very helpfully illustrates the size of the challenge for the industry in terms of expansion to try and meet that demand profile. Typically, we've seen supply response in relation to higher prices with much of the restarts now back in the market in the process of ramping up. And now the market supply relies on new projects coming to market, both in the form of greenfield and brownfield expansions. We've included on the right-hand side a typical time line for new operations of 5 to 8 years and brownfield of 2 to 3 years. And this is the challenge that we have as an industry to try and keep up with that demand profile. This means that Liontown is well positioned given that our brownfield expansion is largely already built in terms of the plant with the ball mill that Ryan had given an update on. And as I said, we'll give an update on the full FID at the end of next month. But that relies on the Northwest Flats that Tony has talked to a little bit as well. We go to the next slide. In terms of our offtake book, you can see on the left-hand side here, the last 9 months of the year have had a significant outperformance of spodumene versus chemicals. You can see this relativity as we talk about of spodumene to chemical linkage, which is hydroxide in this chart, has really stepped out from the historical averages. This has led to an underperformance of anyone who's got chemical linkage in the book. And you can see on the right-hand side that our -- 2 of our contracts 3 have chemicals reference for CY 2026, so calendar year 2026. But as we move into January, that flips the other way where 2/3 of our product will be linked to spodumene and only legacy contract on hydroxide. These offtake agreements were entered into in 2022 to support the development and financing of Kathleen Valley. And at the time, no reliable spodumene index was available for contracting that was accepted by customers. We have worked hard to try and change the chemical exposure, and we were able to resell some of the Ford tonnes to Chengxin in the ramp-up period until the end of this year. And from 2027 and 2028, those are released, and we've resold those to Canmax linked to spodumene index. So I think on a look-forward basis, you should see us start to close the gap a little bit on spodumene, but we do continue to have that 1/3 of the volume -- contracted volume on hydroxide. And with that, I'll hand back to Tony.

Thank you, Grant. Now let me conclude today's presentation by once again summarizing the key takeaways. 5 things. One, we delivered a profitable year and a strong operating cash flow of $182 million while still ramping up. The ramp-up is on plan and the 2.8 million tonnes by the end of FY '27 is on track. And I hope the detailed explanation that Ryan has provided gives further confidence to that. Third point we want to make is the market has turned. We backed our own judgment, and we're reinvesting into our flagship asset of Kathleen Valley with discipline. The balance sheet is strong enough to fund the growth from our own cash. And finally, we're ready to scale on that basis and expansion that can deliver production to the market incrementally and flexibly. FY '27 is a year we invest to make the growth real. FY '28 is where you will see it being delivered. On FY '28 and beyond, the production cost and expansion capital will be part of the final investment decision at next month's Board meeting and FID. Today, it's about FY '27. The credit for this year goes to our people. I thank the Board, the accountability is mine, the shape of the business is right, but the job is not done. We know it. We'll keep our heads down and keep delivering. Thank you, and we're happy to take questions now.

[Operator Instructions] Our first question comes from Lyndon Fagan from JPMorgan.

Tony, firstly, I just wanted to pick up on your slide that talks about the M&A. It does feel fairly early in the journey to be looking for acquisitions, but just wondering if you can expand on jurisdiction, brine versus hard rock, what it is you're actually looking for at this stage?

Thanks, Lyndon. I feel that in the course of our presentation today that we let the audience clear that our priority is Kathleen Valley, first and foremost. So we're putting a lot of time and resources into prioritizing and ensuring that Kathleen Valley is to its full potential. But at the same time, we have to keep one eye on the broader market as we want to grow as a company. So we will look at opportunities as they present themselves. And we've been very public that our core competency is hard rock. So we will continue to look for hard rock opportunities. But also, we can't ignore one of the largest sources of lithium units in the world being brine. So we'll also keep a close eye on those brine opportunities. But we also acknowledge that we do not have capability as yet in that area. So any potential opportunity we look at in that area, we will partner with someone of demonstrable background.

Okay. Great. And another one I had was Slide 16 talks about the amount of ore per level at 2 million to 5 million tonnes. In the quarterly, it was quoted at 3 million to 5 million tonnes. Was that just a typo? Or do we need to read into that change of the amount of ore per level and sort of think about any sort of reduced productivity associated with that?

Yes. So Ryan here. Look, I think the underlying data that drives that graph hasn't changed. If you go back 12, 18 months when we first started talking about productivity through the lower levels of Mt Mann. The data is the same. I think the way we've characterized it, particularly when we've shown that graph, I think it's on Slide 18, which actually shows that level. We probably refined the way we've characterized it, but the underlying data is still the same, still expecting to get the same level of productivity out of those lower levels of the mine. And that's what we're trying to do a bit of a double-click into through the presentation today. So hopefully, that helps.

No change, Lyndon.

The next question comes from Austin Yun from Macquarie.

Just a question on the offtake, please. I understand your production will be flattish in the near term before a step-up in the first half of calendar year 2027. Just keen to understand your offtake commitment across the next 12 months. Are they evenly allocated? Or would there be any flexibility to your production rate?

I'll let Grant explain that one.

Thanks, Tony. Austin, look, I guess, when we start looking forward in the schedule, we typically get our guidance and sit down with customers and agree a forward shipping schedule. While the general principle is that has to be evenly spread, I think there's a recognition from customers that also has to match the tonnes that we have. So as we look forward across the total year, we don't see any issue with meeting our commitments on offtake in FY '27.

Just one quick follow-up, if I may. On the accounting side, I note that you changed the EBITDA calculation by removing some inventory movements. Could you please provide some color for that change? Would that push into the earnings levels? And also any implication to the unit cost calculation going forward?

Yes, Greg here, I'll take that question. It's a change that we made for the half year numbers as well when we restated half year '25. So previously, the EBITDA calculation was adding back the depreciation and amortization charged against the assets. But D&A goes into inventory and then it comes back out into the P&L as we sell tonnes. And therefore, the amount of depreciation and amortization actually in the P&L is driven by sales tonnes, what was booked against the assets. And so I think it's a more reflective representation of EBITDA to include the D&A that's actually in the P&L. And half 1 was restated, full year '25 was restated and then '26 was just done on that new basis. Sorry, there was a second part to your question, which was impact on unit operating costs. That unit operating cost metric is a cash cost metric and therefore, the change in method of EBITDA had 0 impact on unit operating costs.

The next question comes from Glyn Lawcock from Barrenjoey.

Couple ones from me. Just to clarify, did you have any [ open cut ] ore left for feeding in this quarter, Ryan? Or is it just purely processing the underground that you mine?

You talking this quarter, Glyn? So quarter 1 of FY '27.

Yes, Q1 of FY '27.

Yes. So as we mentioned in the quarterly, we do have open pit material left in quarter 1, but we will have fully consumed that by the end of the quarter.

Okay. So there will be some supplement to the underground. Sorry, I was away for the first quarter. And then just maybe you could help me understand the disputed shipment that's in the accounts, what's in dispute? Is that a quality issue? Or what -- could you just help explain what that is and whether it gets resolved?

Yes, I'll take that one. I can't be specific as to the reason behind the dispute, but there is a dispute that we are currently working through. We've made a provision in our accounts around that dispute over one shipment, and we're pretty confident that we'll resolve that pretty shortly.

Okay. Is that a timing or quality issue, Tony?

I can't specifically give you the details because it is commercial-in-confidence because we're in the process of finalizing the negotiations. Well, if you want to -- it's nothing to do with quality, right? I can tell you that.

There are no further questions on the platform. I'll now hand back to Tony.

Thank you, Michelle. And once again, that brings our FY '26 to a close. We're really looking forward to FY '27. So thank you for the questions, and thank you for listening.

That concludes today's call. Thank you for joining us. You may now log out.