Fiserv earnings missed by $0.61, revenue fell short of estimates
Greatland Resources Limited reported its Q1 2025 earnings, highlighting robust financial performance with a quarterly revenue of $476 million. The company achieved a record gold recovery rate of 88.6% and generated $285 million in operational cash flow. Despite a 4.17% decline in its stock price to $373.75, Greatland maintains a strong financial position with zero debt and $750 million cash at bank. According to InvestingPro data, the company’s financial health score stands at "GREAT" with an impressive 3.62 overall rating, supported by a strong current ratio of 2.6x and minimal debt-to-equity of 0.02.
Key Takeaways
- Achieved $476 million in quarterly revenue.
- Record gold recovery rate of 88.6%.
- Stock price decreased by 4.17% post-earnings.
- Zero debt with $750 million in cash reserves.
- Successful acquisition payback within six months.
Company Performance
Greatland Resources demonstrated solid performance in Q1 2025, driven by strong gold and copper sales. The company sold 82,000 ounces of gold at $5,277 per ounce and 3,000 tons of copper. The operational cash flow reached $285 million, underscoring the company’s efficient cost management and production capabilities. With a robust gross profit margin of 51.8% and return on equity of 48%, the company’s operational efficiency stands out among peers. Greatland’s focus on exploration and innovation, particularly at the Weston site, has positioned it well for future growth. Get access to 8 more exclusive InvestingPro Tips and comprehensive financial metrics to better understand Greatland’s growth potential.
Financial Highlights
- Revenue: $476 million
- Gold Sales: 82,000 ounces at $5,277/ounce
- Copper Sales: 3,000 tons
- Operational Cash Flow: $285 million
- Cash at Bank: $750 million
- All-in Sustaining Cost: $2,155 per ounce
Outlook & Guidance
Greatland Resources forecasts full-year production of 260,000 to 310,000 ounces of gold. The company is targeting the release of the Hebron feasibility study in December and aims to maintain gold recovery rates in the mid-80s for FY2026. The ongoing exploration efforts and the EPA permitting process are expected to bolster its long-term production capabilities.
Executive Commentary
Shaun, an executive at Greatland, emphasized the company’s rapid acquisition payback, stating, "We achieved a payback on the acquisition inside of six months, which is just a splendid outcome." He also highlighted the potential of the Weston underground exploration, calling it "the most exciting discoveries in Telfer recent history."
Risks and Challenges
- Market volatility in gold and copper prices could impact revenue.
- Regulatory hurdles in the EPA permitting process may delay projects.
- Potential cost increases in fleet renewal and exploration activities.
- Environmental and operational risks associated with mining activities.
- Dependence on successful exploration outcomes for future growth.
Greatland Resources remains focused on leveraging its strong cash position and exploration success to drive future growth, despite the recent stock price decline. The company’s strategic initiatives and robust financial health position it well to navigate the challenges ahead. With a P/E ratio of 11.29x and EV/EBITDA of 10.09x, the stock is currently trading near its InvestingPro Fair Value. Dive deeper into Greatland’s comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, for detailed analysis and expert insights on the company’s future prospects.
Full transcript - Greatland Resources Ltd (GGP) Q1 2026:
Shaun, Executive (likely CEO), Greatland Resources Limited: Thank you, Ashley. Welcome, everyone, to the September 25 Greatland Quarterly Results Call. Joining me on the call today is our Chief Operating Officer, Simon Tyrrell, and our Chief Development Officer, Rowan Krasnoff. I’ll go through the deck briefly, then we’ll open it up for questions and answers. As I slide through the deck, just note the disclaimer, but I’ll leave people to review that from our website. Moving to slide four, during the quarter, we produced just under 81,000 ounces of gold, plus 3,400 tons of copper for the quarter. We achieved this production whilst consolidating the significant improvements we’ve made in safety since Greatland’s acquisition of Telfer. In terms of the full-year production guidance of 260,000 to 310,000 ounces, that remains unchanged.
We’re really pleased with such a strong quarter, but I do note there’s a slight weighting of our production outcome towards the first half of the year. Pleasingly, I think one of the highlights of the quarter was the all-in sustaining cost, which came in at $2,155 per ounce Australian. This is a really good outcome, and it’s a reflection of our continued focus on cost control whilst we continue to participate in really strong gold market pricing. A highlight for the quarter was the gold recovery at 88.6%. This is the highest quarterly gold recovery since FY 2010, which is a great credit to Simon and the team at site. During the quarter, we realized the gold price of $5,277 per ounce. Greatland fully participates in the market price of gold. Greatland, as you’re aware, adopted an approach of purchasing put options.
This provides us a measure of insurance whilst allowing us to fully participate in the upside of the gold price. This approach has worked really well, and by purchasing put options, it’s the path of least regret. In terms of cash flow, this quarter delivered good revenue, driving an operational cash flow of just under $284 million. You saw a further cash build up to $175 million for the quarter. Remarkably, in just three quarters, Greatland has generated $750 million cash at bank with no debt. This can be compared to the acquisition price of $541 million. We achieved a payback on the acquisition inside of six months, which is just a splendid outcome. In addition, we’re investing in the asset in FY 2026. We’re undertaking a record amount of drilling at Telfer. That’s off to a strong start.
We’ve got eight res dev rigs plus another two on regional exploration. We did more than 53,000 meters drilled in the quarter in resource development. Together with this, we maintain significant stockpiles at surface containing over 300,000 ounces, plus over 12,000 tons of copper in that same volume. I’ll now pass across to Simon Tyrrell to walk through the operational slides.
Simon Tyrrell, Chief Operating Officer, Greatland Resources Limited: Thanks, Shaun. As Shaun mentioned, it was a good quarter operationally, and we’ll go through some key details. On to slide six. We’ll start with Weston Open Pit. We’ve returned to a two-digger mining plan this quarter. Open pit total material mined has increased quarter on quarter to 5.9 million tons, with all sourced from stages two and eight and stage seven. We have commenced reporting mined tons to dump leach to provide further insight to the operation. This quarter, 274,000 tons of ore mined went to dump leach. Stage two and eight contributed to the bulk of ore mined, and as it’s at the base of the pit, very low strip ratios of 0.1 were achieved. Stage seven growth stripping continues with 3.7 million tons waste mined for the quarter, a strip ratio of 7.2.
It should be noted that this is relative to the overall stage seven design strip ratio of 1.1. During the quarter, we reviewed a short-term metal pricing strategy, and coupled with an updated cost structure and high recoveries, this has identified up to 2 million tons of additional low-grade material within the existing pit designs in FY2026 alone. This will give us some optionality for mill feed further in the year. The open pit fleet renewal program is in full swing with orders for a Caterpillar 6060 excavator, two Komatsu WA1200 front-end loaders, and two Caterpillar 793 dump trucks being placed. The first two of a planned 12 793 truck rebuilds have just returned to site this weekend. Now that we have confirmed delivery schedules for this equipment, we will look to include the productivity improvements into the open pit schedule moving forward.
Resource growth drilling progressed at the tighter 25 by 25 spacing, while infill drilling practices are in the process of transferring from blast hole sampling to reverse circulation sampling. This will provide additional resolution in the grade control modeling as the blast hole sampling provides one sample over 12 meters depth, while the RC sampling will provide an assay every two-meter interval. Moving on to Main Dome, underground ore mined was 20% above plan at 0.28 million tons and mostly from Aereis, Rey, and Eastern Stock Work corridor. Underground development was again solid with 1,325 meters of development, including 368 meters of growth capital in the second development drive to the Weston underground to support exploration activities. Moving on to slide seven. Moving to processing operations, there are a number of highlights in the quarter.
We milled 4.7 million tons in line with plan, and recoveries were exceptional at 88.6% recovery for gold and 81.3% recovery for copper. As Shaun mentioned, gold recovery was the highest quarterly recovery at Telfer since 2010. This was achieved primarily due to operational focus on improving the pyrite flotation and leaching circuit performance. We’re maximizing the sulphur flotation recovery and the CIL utilization directly relates to an increased gold recovery. We are increasingly confident in maintaining high recoveries for FY26 based on the operational experience to date. Together, this delivered nearly 81,000 ounces of gold on a similar grade but lower tonnage to last quarter. On to ROM stockpiles. This quarter, we processed 2.5 million tons of ROM stockpiles with 4.5 million tons remaining at quarter end. These are expected to be largely utilized by the March 2026 quarter.
In terms of grade, this quarter’s stockpiles performed in line with the assumptions that our FY26 guidance is based on, and this gives us confidence that our FY26 guidance adequately calibrates for these stockpiles. Some key projects progressed during the quarter. The largest planned shutdown of the year occurs in July, and we’ve taken the approach to progress works that will have benefits past 2027. For example, we have commenced the gas turbine maintenance program that will refurbish all gas turbines over a three-year period. Another example is we have commenced a structural refurbishment program, which will extend the infrastructure use into the following decades. These are examples of the confidence we have in delivering a multi-year life-of-mine plan mid-next year.
We don’t talk much about the dump leach and don’t intend to moving forward, but it is a modest but efficient contributor to production at approximately 4,000 ounces for the quarter. A pipeline replacement project is underway that will extend the dump leach operations through to end of mine life. TSF stage three lift construction is progressing well to schedule and expected to complete it in the December quarter. This lift will provide tailings capacity until the March 2027 quarter. When we acquired Telfer, there was very little scheduled float on tailings capacity. This was one of our key risks. Getting ahead of this in terms of capacity was an important de-risking of our operations. TSF H stage four construction is scheduled to commence in the fourth quarter of this financial year. Moving on to slide eight and costs.
As Shaun mentioned, we achieved an all-in sustaining cost of $2,155 per ounce below the low end of guidance, and this sets us up strongly to deliver on this year’s target. Cost control continues to be a strong focus, and we’ve essentially kept costs flat over the preceding three quarters. As a result, with an average realized sale price of $5,277 per ounce, we have achieved greater than 100% margin, an excellent outcome as we prepare for our future investments. Some of the key details, site services costs were in line with plan. This quarter will be a high watermark for site services as there were one-off costs during the quarter, such as $4 million allocated to TSF seven remediation. Mining costs of $65 million were below plan. The quarter-on-quarter increase was due to a higher proportion of ore mined relative to waste in stage seven, which is capitalized cost.
Processing costs of $80 million were in line with plan, with the quarter-on-quarter increases largely due to the cost of the planned maintenance program in the processing plant and power station discussed previously. Sustaining capital was $18 million and below plan due to delays and timings of costs for projects and lower on a quarter basis due to the completion of the TSF H stage two lift last quarter and the allocation of stage three lift to growth CapEx this quarter. Moving on to slide nine. This slide recaps the growth initiatives, and as you know, FY2026 is a significant year of investment at Telfer with a view for a multi-year life-of-mine extension.
Our growth capital program at Telfer is progressing well and in line with plan at $70 million spent across the TSF H stage three lift, the Western stage seven open pit growth stripping, the underground development, and the mining fleet renewal program. Spend is tracking to our full-year guidance of $230 to $260 million. At Hebron, we spent $10 million on feasibility study costs and early works. The early works included commencement of installation of a concrete tunnel connecting the portal to surface. This will eliminate risk associated with high rainfall events often seen in northern Western Australia. The blindboard design and fabrication continued with the cutter heads ready to be delivered to site. Our record resource development drilling program of 240,000 meters is well underway, with 53,000 meters across 711 holes drilled ahead of plan, which Shaun will speak to now. Over to you, Shaun.
Shaun, Executive (likely CEO), Greatland Resources Limited: Thanks for that, Simon. Look, Telfer is a big site, so I’ll just do a brief around the grounds of the Telfer mining area, just focusing on that drilling program. By looking at slide 10, we start with the Weston open pit. During the quarter, we completed 25,000 meters of growth drilling and 16,000 meters of resource conversion drilling. We’re taking this to the 25 by 25 meter spacing, which we implemented basically at the point of acquisition to give us that improved confidence in the resource. The stage seven extension is the immediate focus for us. This is intended to provide Telfer’s base load feed through FY27 and FY28. That’s the immediate target. We move into the stage two extension, and this is the key area beyond FY28. It’s worth taking a moment to pause here and just look at that slide.
When you look at just the volume of that opportunity, it really stands out. In terms of volume, it’s a multiple of the stage seven two-year opportunity. At the present gold price, we think it’s just an exceptional opportunity for significant life extension at Telfer, and that continues to be our focus. During the September quarter, we’ve actually exceeded plan in terms of that open pit drilling. That’s put us ahead of schedule on the stage seven drill out, which means we’re able to pivot early to focus on that stage two extension drilling, which I think is a really exciting opportunity for the organization. Turning to slide 11 in the deck, this is the Telfer Weston underground. This is likely my favorite slide in the deck. Weston underground is undoubtedly the most exciting discoveries in Telfer recent history, and it’s a really key growth opportunity for us.
Just to put it in context, the main dome underground began in the 1990s, and it continues operating today some 30 years later, having produced more than 3 million ounces of gold. This is our first drive into the Weston underground. You’ve got the same geological units, so the size of the prize here is extraordinary. We announced that first set of drilling from the Weston underground, that phase one drilling results in February 2025. This delivered the really high grades, the highest average grades you’ve seen at Telfer since 2005. Excellent mining with great strike length. We confirmed that those same key geological units that you see in the west in the main dome underground that carry that higher grade mineralization repeat in the Weston underground. We’ve got two rigs on Weston underground. We’ve completed nine holes. We did that quarterly exploration drilling update last week.
You just saw the first two holes come back with assays from that. The three intercepts, probably the highlight there is the hole 99, which had two separate intercepts in it covering over 75 meters combined, including 5.6 grams plus 0.25% copper. We really like what’s coming together here. It’s a very promising opportunity for us. What we’re seeking to do is just try to bring a small part of this Weston underground into that resource update that we want to do around the end of the March quarter. It continues to be a real focus for us, this Weston underground. In terms of staying in the underground but moving to slide 12, the Telfer main dome underground, we drilled another over 7,000 meters across 67 holes. The focus for us was very much that ESC, the Eastern Stock Works.
ESC central area, we were able to successfully take from the res dev team and pass across to the underground team. Delivering donations like this to the operating teams is part of our really clear focus here of creating greater flexibility and resilience in the underground. That’s why development meters has been a real focus for us since acquisition, and we think this just continues to bear fruit as we create additional mining areas in the underground. Slide 13. Again, still in that Telfer underground, just looking at some of the main dome underground, just looking at some of the higher grade donations that we’re drilling out. If you have a look at the Kilo area, this has just successfully extended mineralization as we continue to kind of drill this forward. Whilst Tarkin, further to the right of screen, we completed the resource conversion drilling program for the quarter.
Again, another area that’s been able to pass across from res dev to the operating team to again provide that greater flexibility and resilience, which has been a focus for us as we inherited a mine where the mine face was right up next to mine planning. Over the last 10 months, we’ve really started to improve that and get ahead on mine planning and development. Slide 14 is main dome underground, still the Rey area. Rey is a really high grade area for us, but particularly copper-rich. We’re going in and we’re taking out the secondary stopes. There’s a paste plant at surface at Telfer. It was effectively a new plant built a while ago but hadn’t been used. That was commissioned. It’s allowed us to take out these secondary stokes in Rey.
In addition to that, we’ve completed a program that’s extended mineralisation along strike, again with a view to kind of delivering that to the ops team during this present quarter. Again, really positive development there at Rey. If I just switch to slide 15, which is Hebron. Hebron, the feasibility study continues to be progressed, and we’re really targeting getting that to market during the current quarter. I think realistically that’s December, but we want to try to get that as early in December as possible, and that will follow the review by SRK. The permitting process continues there at Hebron. We’ve actually got some pretty positive engagement with the relevant EPA departments, so we feel that is tracking well. In parallel to this, as we prepare to kind of re-enter, we effectively have re-entered. We’re doing a lot of work around ventilation.
The box cut, where we’re actually taking that to be a surface portal to manage kind of rainfall events into the future. We’re just kind of walking the chain or moving the change forward as we approach the feasibility study and final permitting. Slide 15, which just gives a bit of an overview on the financing, there’s quite a lot of information on this slide. In essence, we generated $476 million of revenue during the quarter from the sale of just over 82,000 ounces of gold. Just over 3,000 tons of copper as well, which is a great kicker. Gold sales was about $5,277 an ounce. The key takeaway on that is that’s roughly $1,000 lower than the current gold price, which again sets us up for good success in the quarter ahead.
The waterfall chart on the left of screen just shows the build-up then from original cash position, which was already a very healthy $575 million. We generated $285 million of operating cash flow, and then we invested in the site. We spent around $87 million on the opportunities to extend the life of Telfer, but we still ended the quarter with just over $750 million cash at bank, zero debt. We remain exposed to the market gold price, which we think is positive, the same for copper. We do have that put portfolio, which just gives us protection. It’s insurance. We don’t expect to use it, but it’s nice to have the insurance in. Even at those what look like low prices today, $4,200 gold, when we entered them, you know we’re giving ourselves high fives.
It looks so attractive, but we’re very glad that we did that as put options so we continue to participate in the gold price. A few just items to remind people for this quarter. We’ve just paid $46 million to the Office of State Revenue here in Western Australia for stamp duty for the acquisition. You’re going to see that in the December quarter numbers. We do flag and just remind people when we released our financial statements, you would have seen the tax liability of $76 million. We expect that to be paid in the March quarter. Effectively, that profit generation you’ve seen has meant we’ve gone through those carry-forward tax losses a little bit quicker than otherwise. We’ll pay that in the March quarter, and thereafter we’ll move to regular monthly installments of tax.
In addition, particularly for the analysts, we just want to give updates, which you see in the body of our quarterly announcement in terms of the non-cash inventory movement, a credit of $18.2 million. We also give a bit of guidance on depreciation and administration, I’m sorry, D&A depreciation amortization, which was $20 million for the quarter. That should grow to about $120 million to $140 million for the full year because we do continue to invest in the site, and the acquisition depreciation is a little bit slower than some of the new assets that we’re putting in. Importantly, just kind of turning back to that cash flow position, that $750 million at bank, no debt, I think that really sets us up for success in terms of Hebron. It de-risks and provides a lot of flexibility about delivering Hebron, which we think is hugely attractive.
I’ll just turn to slide 17 as well. This just puts in context the cash generation we’ve delivered since Greatland Resources Limited has taken ownership of Telfer. $885 million of operational cash flow. That’s translated into zero debt, that big cash balance. The upfront consideration was just $541 million. Even by June, we delivered over $600 million in cash flow. A payback of inside of six months was somewhat 1.6 times already. It’s been a really, really strong outcome for us and what we’ve been able to achieve at Telfer. It’s a remarkable achievement, and to do a payback that quickly, I think is rare. Again, it sets us up for success and financial flexibility for delivering Hebron. Just to conclude the presentation on slide 18, the September quarter was a really successful operating quarter and a great credit to the operational team at site.
At Telfer, there’s really been two key focuses for us, just continued operational delivery, but also completion of this ambitious program around investing in the drill bit, which we think you’ll see part of that manifest in that Telfer mineral resource in the March 2026 quarter, plus the following quarter, the June quarter when we can come out with the ore reserve update. Those drills are going to continue to run in the second half of the year. We continue just to add inventory potentially. At Hebron, we just continue to focus on delivering that feasibility study in December. In combination, we think the development of Hebron and the opportunity to extend the life of Telfer gives us this exceptionally strong platform. We can capitalize on the current strong gold price and copper price environment. We can leverage these Telfer operations in delivering Hebron.
We also have this wonderful opportunity to extend the life of Telfer because the strongest you’re going to see Greatland is when you’re operating Hebron and Telfer together. This is a pretty rare confluence of immediate cash flow generation and complementary growth. With that, I’ll now ask the moderator, Ashley, to open it up to questions.
Ashley, Moderator: Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you’re on a speakerphone, please pick up the handset to ask your question. Your first question today comes from Daniel Morgan with Baron Joey. Please go ahead.
Hi, Shaun and Tim. Can you remind us at Hebron, just step us through the permitting again? Where are you in the process? What is your expectation of timing? I understand that is outside of your hands to some extent. Assuming permits are received at a certain point, what does that mean for FID on the project? Thank you.
Shaun, Executive (likely CEO), Greatland Resources Limited: Thanks, Daniel, for the question. Look, Hebron permitting is significantly advanced. It was certainly started by Newcrest well before we took ownership. We continue that advancement both with the state EPA and the federal EPA. It is in the final kind of part of that process. It’s gone out for public comment and other elements of that, which we think is encouraging. We do seem to have a good relationship with the EPA both at a state and federal level. The sequence of events will effectively be we’ll release the feasibility study. At some point in time, we’ll get those final EPA permits, and then subsequent to that, we’ll announce the official FID. That will probably mean when we release that feasibility study, we do it somewhat the way Capricorn did where they kind of did the P plus one, P plus two.
Either timetable is permitting plus one, permitting plus two. We might use a slightly different vernacular, but I think that’s a positive way, albeit we do think we’re in the end phases of that EPA permitting process. I’m quietly optimistic, but I guess as optimistic as anyone can be in terms of describing the timeliness of the government department. It does seem, you know, I’ll just leave it as encouraging.
Thank you. Maybe if you could just expand on recoveries. That was a clear highlight this quarter, and there’s been a few quarters since ownership of good recoveries. I understand that there’s several ore bodies with lots of complexity to different ore types and its influence on recoveries. Is there a way you can simplify it for us on how you’re thinking about recoveries going forward across the site versus perhaps your business plans? Thank you.
Thanks, Daniel. Why don’t I pass that one across to Simon, who’s been leading the charge on that?
Simon Tyrrell, Chief Operating Officer, Greatland Resources Limited: Thanks, Shaun. Thanks for the question, Daniel. As you’ve noted, exceptional achievement by the team, best quarterly results since 2010. This was due to that focus on the pyrite circuit and leaching circuit at the back of the plant. This was often overlooked as an area that didn’t contribute significantly to recovery. The background knowledge that the team we’ve brought on had with the original feasibility study has allowed us to unlock these higher recoveries. There was a point where we thought as we progressed through the new stage seven cutback that ore from the oxide and transitional part of the pit may cause us some lower recoveries. However, at the current blend rates, which is around 15% of stage seven material in the overall blend, that’s not causing us any concerns. We expect to achieve those mid-80s or above moving forward for FY2026.
When we go into FY2027, we do move to 40% of stage seven as a blend. We will need to do a bit more work to see whether we can maintain those into FY2027, but certainly FY2026, as noted, we’re comfortable getting that mid-80s or above.
Shaun, Executive (likely CEO), Greatland Resources Limited: Yeah, thanks, Simon. I think, you know, again, a credit to the team that they’ve delivered this. It was also an opportunity we saw through that due diligence. I think the team’s done really well to execute on that opportunity.
Thank you. Last question is just, there’s been a heavy focus on waste stripping at stage seven. I’m just wondering, you know, when do you get into a sort of an ore harvest phase? How does that sequence with your expectations of when the high-grade stockpile will be exhausted? Thank you.
Simon Tyrrell, Chief Operating Officer, Greatland Resources Limited: Thanks, Daniel. As I mentioned, we’ve got about 15% of stage seven in the blend this year. That goes up to 40%. We’ll have somewhere in the order of 8 to 10 million tons of ore from stage seven in FY2027. The high-grade stockpiles wind down or they’re consumed in the March quarter next year. That’ll give you a flavor for how that sequencing happens. As I mentioned, we are looking at uplift plans for the open pit. As we’ve locked in the schedules for the new equipment, we can start to put that into the open pit schedules, and that might bring forward some of that stage seven material, but that’s work in progress at this point in time.
Okay, thank you very much for your perspectives.
Thanks, Tim.
Ashley, Moderator: The next question comes from Hugo Nicolasi with Goldman Sachs. Please go ahead.
Morning. Shaun, Simon, and Tim, thanks for the update this morning. I just want to dig into some of the costs a little bit more in the quarter as well, particularly around just the processing and site services costs. Obviously, some increases over the last couple of quarters. You’ve touched on some of the plant work, but are you able to just give us a sense of where those costs should sit going forward from here?
Simon Tyrrell, Chief Operating Officer, Greatland Resources Limited: Yeah. Thanks, Hugo. In regards to site services, we see that sitting in that lower 20s type mark. I think we’re at $29 million for the quarter, so that’ll drop back down to somewhere around that $23 million mark moving forward. That’s where we expect it to be. On the processing side, on a unit rate perspective, Q1 was always expected to be higher because of the large shutdown. It’s the cooler part of the year, so when you’re talking about labor productivity and so forth, aligning the longer shutdown in those cooler periods. Additionally, it’s not raining either, which also can delay shutdown. We do that bulk of that work in the July shut. That would be a high watermark for processing costs for the year as well. You’ll see the processing costs on a unit rate drift down over the year, over the financial year.
Shaun, Executive (likely CEO), Greatland Resources Limited: Maybe just to add to that, in terms of site services, during this quarter, you’ve seen us do some work on TSF 7 rehabilitation. That’s currently not an active tailings storage facility, but for those who have been at site, it’s a very large tail. It’s still a tailings storage facility. It’s got five lifts still approved on it. We see recommissioning that and bringing that back in. It’s a much more efficient tail stand in terms of cost. It’s upside risk. If we can bring that in, I think you’ll see us be able to walk down sustaining CapEx. That’s part of our opportunity. We want to spend some time, energy, and effort to see if we can achieve that. If we do, I think it will be really beneficial for us.
Tassie, thanks for that. If I can sort of get into the price realizations on the copper piece and how you’re seeing the TCRCs, should we expect copper to continue to sell at that sort of 10% to 20% discount as a con? Where do you see those treatment and refining charges for the rest of the year?
Yeah. Let me answer that in two parts. The TCRCs, I think, are really a good outcome for Greatland. I’ve spent a little bit of time around marketing copper cons in a previous life and have supported some of the people I’ve worked with previously to deliver this, which is doing really well. I think the TCRC outcomes we’re getting are exceptional. One of the reasons for that is just Telfer is a very accepted product in the market. It’s just got a long, long history of being a reliable Australian producer, and it doesn’t have any deleterious elements. It’s an attractive con. I will add to that, once we bring Hebron online, it looks even better. That’s going to be one of the best copper concentrates on the market. We really like where we’re seeing.
You’re seeing a little bit of positioning already by those buyers of the concentrate just wanting to preposition to get an opportunity to acquire Hebron concentrate. In terms of the pricing on it, look, our focus is actually on that gold pricing, which I think is really strong. When we look at the copper pricing, there is some payability in there, which I think is pretty market standard. Overall, we’re participating in the copper price. There’s no TP or price participation or kind of long fusers on pricing index. It’s a really attractive pricing mechanism within those copper concentrate offtake agreements, which just reflects the quality of the product and the reliability of Telfer as a producer of it.
I don’t know if I could just dig in a little bit further. Just to clarify, you’re seeing TCRCs at the moment then still as a net benefit, or have those returned to a modest charge?
They’re a net benefit. When you look at those benchmarks, you can actually outperform those benchmarks pretty substantially. I don’t want to, you know, discuss them specifically in terms of numbers. What I will say is the latest round of contracting we’ve done is materially better TCRCs from a Greatland perspective than the last batch that you’re already seeing in the numbers. If anything, it gets a bit better from here.
Thank you. Perspectives, I’ll pass it on.
Ashley, Moderator: Your next question comes from Andrew Emmott with Macquarie. Please go ahead.
Simon Tyrrell, Chief Operating Officer, Greatland Resources Limited: Shaun, Simon, and Rowan. Excuse my croaky voice. You’ve already answered my question about Weston underground making an appearance in the March 26 resource update. Simon, I think I heard you said in the prepared remarks that you’re looking at a multi-year life-of-mine planning in mid-CY2026. Just wondering, what are the key changes we should look out for there? It sounds like we might get a scenario with a stage two of Weston open pit, but is that too early to expect some numbers from the Weston underground in that life-of-mine plan mid-next year? Thanks, Andrew. Look, the key building blocks of that life-of-mine plan are the 240,000 meter drilling program for this year. That will inform the MRE, and the reserves that come out of that will form the building blocks of that life-of-mine plan. Until we do that, we won’t have the detail to talk about.
Certainly, we’re optimistic about the stage two extension on Weston open pit. Given it’s open pit, given we’re a large processing plant, having that volume of material as the cornerstone of Telfer would be very, very accretive moving forward. Strong on that. With regards to you specifically asked about Weston underground, we will have a resource on that next year, but we need to do some engineering works and some study works to determine the best approach to mining that. At this point in time, you can see it’s open in a number of areas. We have to be sure that when we go and approach this area to mine it, we’ve got a full understanding of the scope of where the ore sits. We’ll communicate our approach to those studies in due course.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.