Earnings call transcript: Greatland Resources Q4 2025 shows strong cash flow

Greatland Resources Ltd reported its fourth-quarter earnings, highlighting a robust financial performance with significant operating cash flow and a healthy cash balance. According to InvestingPro analysis, the company maintains an impressive Financial Health Score of 3.65 (rated as "GREAT"), with analysts unanimously recommending the stock as a "Strong Buy." Despite no direct earnings forecast comparison, the company’s stock saw a notable increase of 2.47%, closing at $415, reflecting positive investor sentiment.

Key Takeaways

• Q4 gold production reached 78,293 ounces.
• Operating cash flow was strong at $310 million.
• The company maintained a debt-free status with a $575 million cash balance.
• Stock price increased by 2.47% following the earnings announcement.

Company Performance

Greatland Resources demonstrated solid performance in Q4 2025, particularly in gold production and cash flow generation. The company produced 78,293 ounces of gold and reported an operating cash flow of $310 million. The integration of Telfer and Havron operations has been completed, contributing to improved productivity and processing recoveries. This performance aligns with industry trends of increasing operational efficiency and cost management.

Financial Highlights

• Revenue: $487 million
• Operating cash flow: $310 million
• Cash balance: $575 million (debt-free)
• All-in sustaining cost: $1,736 per ounce, lower than guidance

Market Reaction

Following the earnings release, Greatland Resources’ stock price rose by 2.47%, closing at $415. This movement suggests a positive market response, likely driven by the company’s strong cash flow and cost management. The stock has delivered an impressive year-to-date return of 218.4%, and according to InvestingPro’s Fair Value analysis, the stock appears to be trading near its fair value. The stock’s performance is notable given its proximity to the 52-week high of $420.

Outlook & Guidance

Greatland Resources has provided guidance for FY 2026, projecting gold production between 260,000 and 310,000 ounces and copper production of 9,000 to 13,000 tonnes. Analyst forecasts available on InvestingPro suggest strong growth potential, with price targets ranging from $5.33 to $8.41, and EPS expected to reach $0.54 in FY2026. Access the complete Pro Research Report for comprehensive analysis of Greatland Resources’ growth prospects and valuation metrics. The company is focusing on extending the life of the Telfer mine and preparing for the Havron development. Capital expenditure is expected to be around $300-350 million, with a feasibility study for Havron anticipated in December.

Executive Commentary

CEO Sean Day emphasized the company’s focus on creating a consistent production profile and the potential for Telfer and Havron to operate in parallel. He stated, "We’ve applied a conservative risk rating to ensure we hit our guidance," highlighting the company’s cautious approach to future projections.

Risks and Challenges

• Grade reconciliation and resource development pose ongoing challenges.
• Market fluctuations in gold and copper prices could impact revenues.
• The integration of new technologies and systems, such as SAP HANA, requires careful management.
• The potential for operational disruptions at Telfer and Havron.
• Economic conditions and regulatory changes could affect mining operations.

Q&A

During the earnings call, analysts inquired about the company’s conservative approach to FY 2026 guidance and drilling strategy. Management clarified their approach to stockpile and open pit grade expectations, emphasizing their focus on maintaining production consistency and operational flexibility.

Full transcript - Greatland Resources Ltd (GGP) Q4 2025:

Sean Day, Chief Executive Officer, Greatland Gold: Thanks, Darcy. Sean Day here from Greatland. I’m joined on the call with by Simon Tyrell, our chief operating officer, Nick Conley, our chief financial officer, and Rowan Krasnov, chief development officer. Look. Let me just say upfront that we recognize our guidance is different and lower than the outlook previously provided.

The the reason for the change is that part of the FY twenty six budget process, we undertook a risk assessment. And we felt it was appropriate and prudent to apply a risk factor to the expected grade of the ROM stockpiles, which we acquired through the acquisition and to some open pit material planned to be mined this year. The risk rating of the ROM stockpile has been an outcome of our budgeting process. After we saw the full June numbers, and that gave us multiple data points, we decided to take the decision to ensure that we were taking a conservative approach to delivering FY twenty six year guidance. The the previous approach at the Telfer site was for indicated resource to be defined around a 50 by 50 meter drilling spacing.

But Greatland, since acquisition, has moved to a high density of 25 by 25 meter drill spacing, which we think is the structural fix for this in the medium to long term. So what does this mean for FY ’26 guidance? Although the ounces are still potentially there, we wanted to provide a more conservative and high confidence range. Hence, we risk rated the ore grade on those pre acquisition ROM stockpile, and all that was still drilled out to that fifty fifty drill spacing. And with that ROM stockpile, the majority of that is gonna be processed in this FY ’26 year.

In terms of FY ’27, the ROM stockpile is anticipated to be a small component of mill feed. And with the increased density of drilling, ultimately, I think we are well placed to overcome the legacy variances in grade. So with that, I’ll I’ll we’ll do a page turn, and we’ll try to get through the presentation in the next ten or so minutes and then move into to the q and a format. So just moving to slide four, which is the performance against the FY ’25 guidance. So this is really the the the FY ’25 year where we’ve achieved guidance across gold production.

We’ve achieved a really good all in sustaining cost outcome, and our growth capital is sitting there within the guidance range. Moving to to slide five, which really just does the highlights for the quarter. You know, for the quarter just past, we did just over 78,000 ounces of gold plus just under 4,000 tonnes of copper at an all in sustaining price of 1,736. Yeah. With the average realized price of just over 5,005 thousand $14 an ounce, we delivered revenue of 487,000,000.

Now that delivered the operating cash flow at Telfer of 310,000,000, slightly shading the March at 398,000,000 with that slightly elevated gold price. That left us with a cash balance. You can see that cash flow coming to the cash balance of 575,000,000. And to remind you, we’re debt free and with no fixed forward hedges, but some, put options where we can elect, but there’s no obligation to deliver. We have some protection on the gold price while still fully participating.

A lot of this quarter is also around growth. Yeah. We’ve got the West Dome Open Pit Stage 7. And in that underground, we go we’re driving out to the putting a second drive out into the West Dome underground and the ESC. That eastern stop work, we think, is gonna be a really strong development area for us, which comes into our FY twenty six minutee plan.

Of course, during the quarter, we completed the ASX listing. And then also at the we retained strong stockpiles, and we think that gives us ongoing flexibility in terms of mining across future years with still having around 7,000,000 tonnes of ROM stockpile, but just over 20,000,000 tonnes of that lower grade material. Turning to slide six. Yeah. We’re really pleased with the safety performance.

We’ve just continued to improve through that integration period. Integrations are hard. We completed the integration, and we’ve done that safely as well. And from a sustainability point of view, we had good relationships with the local Mato people and Jayak, their statutory organization. And and they actually assisted us or at least sent her a letter of support into the government of Western Australia around our second mining lease renewal.

That was the twenty first year anniversary, which now or forty second year anniversary of our mining leases, the second mining lease review, which now takes it out to 2045. And I think we are the first mining company to successfully renew second renew mining leases. So that’s a really good outcome for With that, I’ll pass to Simon Tyrell to talk through the results. Thank you, Sean.

Simon Tyrell, Chief Operating Officer, Greatland Gold: As noted, quarter four production was within guidance at seventy eight thousand two hundred and ninety three ounces and with a laser focus on costs substantially lower than guided all in sustaining cost of $1,736 per ounce achieved. Starting at slide eight, Open pit ore was predominantly mined from Stage two. With the main change, it was a deferral of 900,000 tonnes of ore into FY ’twenty six while additional dewatering infrastructure was installed in pit. Total material mined was in line with forecast, the 3,000,000 tonnes of Stage seven pre stripping undertaken. Underground productivity was sustained whilst drill rigs were increased from two to four during the quarter.

We have developed into the Eastern Stockwork Corridor during the quarter with minor development tonnes mined. Development of the second drive towards West Home Underground progressed with approximately 50% of development meters went into growth areas evenly split between ESC and West Dome Underground. Moving to Slide 9. Our processing productivity improvements continue to highlight Alpha’s capability with FY ’twenty five being the highest gold recovery year since 2010. This is an outstanding achievement given the lower grades currently processed.

Hop note is the higher copper recovery that has been sustained, and it is approximately 10% above historical levels due to good plant performance. Gold recovery returned to life of mine recovery model levels. Moving to Slide 10. Growth expenditure ramped up in the fourth quarter to $76,000,000 This marked Greatlands’ commencement of reinvestment into Telfer. Growth expenditure was across open pit, prestripping, underground development, tailing storage facility expansion, Havron development and resource development.

Open pit drill rigs increased from one to two by the end of the quarter with 16,700 meters drilled. West Dome drilling focused on Stage seven extension and Stage two extension with the majority of this ore to be mined post FY ’twenty seven pending successful results. Moving to Slides eleven, twelve and thirteen. Underground drill rigs increased from two to four by the end of the quarter for 11,200 meters drilled, targeting near mine extensions, including the Eastern Stockwork Corridor the Eastern Stockwork Corridor extension, AREEPS and Ray. New areas such as the ESC repeat were identified whilst targeting the ESC.

Near mine extensions provide opportunity to add easily accessible ounces. 7,000,000 was spent in the fourth quarter on resource development drilling, whilst the FY ’twenty six budget has 37,000,000 allocated. Moving to Slide 14. The Hebron feasibility study has progressed on schedule and includes the previously announced ramp up to 4,000,000 to 4,500,000 tonnes per annum and remains on target for December. Permitting and approvals have progressed well with the EPA and DQ and early works, including design and tender of the reinforced concrete portable tunnel and completion of the ventilation shaft design and procurement of the specialized blind bore cutterheads have progressed.

I’ll now pass on to Monique to present the Corporate and Finance.

Monique, Corporate Finance, Greatland Gold: Thanks, Simon. And just to recap on what Sean has previously touched on, the June delivered strong operating cash flows of GBP $310,000,000 and over GBP 600,000,000 in the seven months of operations. We went from $398,000,000 in the bank at the March to $575,000,000 at the end of the June. And importantly, we remained debt free. The June included strong capital cash spend of $96,000,000 across growth and sustaining in order to progress stage seven, the underground development, our resource development, and have run.

The June also, we added more protection to the commodity price by taking out a 150,000 ounces of gold put options on an upfront basis at a cost of around 10,000,000 that has a strike price of 4,200 for calendar year 2026. This continues to protect Graland from downside risk to the gold price while ensuring we participate in any upside. Overall, both a positive quarter and year of cash build to facilitate the support for key growth investments in FY ’twenty six, targeting that further multiyear Telfer Life extension. The June also saw the successful completion of integration of Telfer and Havron operations It was a huge milestone and effort for the team in standing up all of the systems and operational processes across a range of functions, and it’s also included the stand up of our ERP system, SAP HANA, to allow for streamlining our business processes, improving visibility and cost and productivity. This now concludes the transitional services arrangements with Newmont within six months post acquisition and allows us the independent running of operations going forward.

I’ll now pass back to Sean, to chat through the FY ’26 guidance.

Sean Day, Chief Executive Officer, Greatland Gold: Thanks, Monique. And and with that integration outcome that Monique led together with Simon and a number of the team here, I I think he’s a a tremendous example or a tremendous outcome to complete that integration in in that time, on time, on budget. Great outcome. So just moving to FY ’26, which I I think is a a lot of the focus of today’s call. The gold production, production, 260,000 to 310,000 ounces.

And and, look, as I acknowledged upfront, that is 11¢ different to, yeah, to the previous outlook albeit, you know, this is the guidance that we said we’d we’d update. Now all in sustaining cost is somewhat a mathematical calculation of those around that gold production range. But whilst gold production is off 11%, all in sustaining cost is off four percent, which talks to that cost control and increased productivity that Simon mentioned. In terms of CapEx, look, I I think the CapEx story is is a very positive story. Really, what we’re seeing here is moving away from a two year Telfer Mine plan to actually feeling we’ve got a multiyear plan of a a longer life Telfer asset.

And you see yeah. Moving to slide 18, you’re seeing that in the investment. We’re doing an extra lift that takes us out to FY ’28, which shows you some confidence, and indeed, I think you’ll see ongoing lift. We’re doing the the pre stripping on stage seven, which gives us the the mainstay feed for 2728, but into ’29. We’re buying new fleet and refurbishing some, which again reflects our confidence.

And in the underground, I think that’s a tremendous story. You know, if for those that can cast their mind back to the acquisition, we felt that was a really challenging area. But as we bring on ESC, the Eastern Stockworth, we feel that brings the mine planning flexibility and the resilience we want into that mine plan in the second half of this year. And we feel really excited about the West Dome underground, but increasingly, we’re confident around that Telfer underground. Moving to Havron.

Look. This is pre FID. There’s really no change to Havron in terms of expecting to come out with that feasibility study in the December of this year, kind of November, December kind of period. And what we’re doing this year is some of the preworks. For those that went to the site too, you might remember that the box cut there didn’t have a sump initially.

Although Greatland has installed a small sump, it still gets overcome with moderate to heavy rainfalls. Yeah. We just wanna protect that decline into the future and its production decline. So we’re effectively taking that box cut or the portal to surface by putting in the concrete archways and and covering that or refilling that with fill. That’s to protect the the decline.

We’re also going to restart work on with burn cut on the ventilation system, so VR one, just taking that down to the bottom of the mine so we’re well placed to to get down to the bottom of the ore body. And then for VR two, VR three, which is more ventilation work, we’ve we’ve contracted the blind bore, but we are we’ve now commissioned and are indeed paying for those cut aheads to be delivered ahead of time. They’re a a key lead time item. And then finally, look, the exploration and resource development, 240,000 meters. That is the most ever drilled at Telfer.

This goes to us just seeing a huge number of opportunities here both in the open pit and the underground. Look. Some of Simon’s slides kind of showed the the size of the prize there, but we think it’s really significant. Plus, we talked earlier about that increased density of drilling. So we do both, but where the site’s probably been underinvested in some of those drilling, we catch up and overtake that and really set us up for a multiyear and successful kelfer into into the long life.

And you can see that a little bit on the slide 21, which just shows those pit shell opportunities around the West Dome. And then we I’m not gonna spend too much time on slide twenty two and twenty three, but you can see in that underground on 22, you know, that Eastern stock work area, but also continuation of some of those existing mining areas. And the West Dome underground is really exciting. We’ve just got one rig on there. We’ll have a second rig there shortly, and, we think that underwrites the the future of the underground.

Although we wanna do another dual campaign in that West Dome underground before we can really talk with confidence about what that looks like. But certainly, the drilling today is hugely encouraging. And the ESC, similarly, the intercepts we released, I think, looked, great in this quarter. So with that, I’ll I’ll pause. And, Darcy, I’ll invite you to open up for questions.

Darcy, Call 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 2. If you’re on a speakerphone, please pick up the handset to ask your question. Your first question comes from Daniel Morgan with Barron Joey.

Please go ahead.

Daniel Morgan, Analyst, Barron Joey: Hi. Hi, Sean and team. Just the first question is, can you just make it a little bit clearer on the variance to the prospectus versus this guidance today? You know, how much is the stockpiles and how much is any mining material? Can you just make that split a bit expand on that a little bit?

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. Thanks, Daniel. The look. I I think when you you look at this, it’s it’s really us trying to take what was the the 50 meter space drilling from Newcrest and just trying to to consider the risk factors on this. And that manifests in that ROM, that high grade ROM stockpile, but also in in some of the open pit material that we planned to mine during this FY twenty six year.

Probably, yeah, when I look at that, yeah, it’s probably one third in in the the stockpiles and and two thirds in that open pit material. And this is basically where we’ve gone through and risk adjusted all of that. So all of that is calibrated in in how we’ve described that that guidance. So that’s that’s just explaining how we got to that risk adjustment. And that’s just this is basically the last two months and the next four month sorry, quarters are effectively this transition period where we go from the historical approach of drilling by, yeah, by the Newcrest and in turn by Newmont, but to the Greatland, which has that high density of, drill feed.

Daniel Morgan, Analyst, Barron Joey: And then in terms of the mineralogy that’s driving this, is it I mean, what what can you say about, you know, how sustainable an issue that is? Like, does that contain to certain portions of the ore body and therefore the stockpile? Like, just trying to get a sense of how much this is ongoing.

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. Let let me answer that in in two parts, Daniel. So so firstly, yeah, in terms of the the drilling we’ve done and the classification that we’ve done of of indicators, even going back to that first one we did kind of twelve weeks after acquisition, we have applied that tighter, you know, framework to drilling density. So this is and and that’s what we will continue to do. So effectively, the work we do now effectively lets us overcome these legacy variances in grade.

And I think just as a portfolio asset, I think, you know, Newcrest has only probably just had bigger tolerance for for variance. Whilst if we look at kind of what we’re we’re looking at now and where does it apply, where it applies is more to the higher grade areas. That’s where we feel where you have those cross cutting reefs that to understand the kind of the domain of those or the size of those cross cutting reefs, you need that higher intensity of drilling. And that’s kind of where, you know, it’s a target for our drilling, although we have that 25 by 25 spacing everywhere, but that’s a real focus for our drilling. And in terms of us revisiting, that’s kind of where we’ve looked to to revisit a little bit or at least apply those risk factors.

Daniel Morgan, Analyst, Barron Joey: Thank you. And just with regards to the prospectus on the CapEx, I mean, can you just remind us? I think that the CapEx was under the assumption that Telfer has got a two year mine life. So the CapEx today is is designed to extend the life. And can you talk to, I think you’ve got in the release an objective to maintain a sustainable production rate from Telfer leading up to Haparron development.

Does that imply that the CapEx being spent the aim is to hold production at in twenty seventh to 30 around the same levels as is in guidance today?

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. Look. Yeah. Like, that directionally, that’s what we’re we’re trying to achieve here in terms of we we think we wanna create, you know, consistent production profile out of Telfa, and we think the open pit and the underground with this, you know, meaningful drilling gives us the opportunity to do that. And, yeah, I can talk to the specific reasons in it specific areas in the underground, but in the yeah.

And and in the open pit, but you’re seeing the the CapEx on the stage seven cutback and the bigger stage seven cutback. I think in due course, you could see a stage six cutback. And, yeah, investment in new fleet, pushing the tail stands up higher are all I think you should take as confidence in the life extension opportunities at at Telfer. The best possible outcome for us is not just Telfer, you know, running until HAVRON comes online, which which I think is we’re highly confident around, but is actually Telfer and HAVRON running in parallel.

Darcy, Call Moderator: Your next question comes from Andrew Bowler from Macquarie.

Andrew Bowler, Analyst, Macquarie: I guess just following on from Dan’s question. I mean, obviously, you know, the commentary is that CapEx is higher this year because you’re extend extending mine life, or that’s the sort of plan. But how sticky is CapEx beyond FY ’26 if you do see further, you know, mine life extensions beyond, say, ’29? And or or, you know, another way of asking, is FY twenty six expected to be somewhat of a peak year in capital and then we start to see a bit of a reduction given you largely catch up drilling, catch up developing, etcetera?

Sean Day, Chief Executive Officer, Greatland Gold: I’ll just give Simon an opportunity to jump in.

Simon Tyrell, Chief Operating Officer, Greatland Gold: Thanks, Sean. Look, there’s a number of areas where additional growth capital in FY ’26 is going to give us a running start. I’ll pick a few examples for you, Andrew. Resource development drilling, around that $37,000,000 for FY ’26. You know, we wouldn’t expect a need for that amount of drilling moving forward post FY ’26.

I’m not saying we won’t do it, but to develop a multiyear life of mine plan, there is sufficient drilling this year to deliver that plan. So when we work through our mineral resource estimate in the first quarter and the third quarter of this financial year, our reserve in the fourth quarter, the the following mine plan from that have a sufficient drilling issue to give us that multiyear outlook. So that’s an example of where capital cost or growth capital would reduce following years. Another example is, know, we’re we’re doing two two TSF lists this year. So, essentially, we’re doubling the CapEx on TSFs than what what we would normally require.

Why we’re doing that? There was very little float between filling up a stage in the TSF to when the next stage was ready. We don’t want to be in a position where there’s an incident or or there is an increase in production that puts additional strain on that float, on that scheduled float in the TSF construction. Hence, we brought forward, the TSF stage four construction. And there’s also there’s some cost synergies there and not, demobilizing and remobilizing equipment later on.

There’s a couple of examples why we believe this is gonna be, you know, the peak capital costs here for Telfer moving forward.

Andrew Bowler, Analyst, Macquarie: No worries. And and maybe can you just remind us of the the permitting timeline that you’re hoping for, Javier, on particularly involved? Well, I think it was to get permitting around a surface evaporation pond to recommence development, if I’m not wrong. But can you just give us an update of how that’s tracking compared to the plan that you’ve given us most recently?

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. Hey, Andrew. It’s Sean again. Look. I I think it’s all pretty consistent.

Look. Just to be clear, Greatland is basically just doing a single updated permit. We’re not staging it. I know Newcrest at one stage did go down that they were gonna do ponds and then the full the the full permitting. We’ve under advised both from the EPA and and from our professional consultant.

We’ve just combined it into a single approval And both with the state EPA and the federal EPBC, I I think we, yeah, we remain on track as, you know, as as previously advised. I guess when we update the feasibility study, we’ll give you the a a full update on that. But right now, we we think everything’s kind of on on on track there and and, you know, has has advanced a lot, and we’re we’re building really successfully and a lot of good work that Newcrest dealers owners as well.

Andrew Bowler, Analyst, Macquarie: Understood. Thanks, Jack. That’s all from me. Cheers.

Darcy, Call Moderator: Thank you. Your next question comes from Alex Bedwiney from Canaccord Genuity. Please go ahead.

Alex Bedwiney, Analyst, Canaccord Genuity: Thanks, guys, for taking my question. Just to clarify, Simon, on what you said on the resource definition drilling. So am I to understand that as what you’re gonna spend this year is sufficient to look at a multiyear mine plan, and anything beyond that would therefore be linked to a further extension in the mine life. Is that right?

Simon Tyrell, Chief Operating Officer, Greatland Gold: So the plan the the 240,000 meters of drilling plan for FY ’26, is sufficient to deliver a multiyear mine life for Telfer. Notwithstanding, you know, we may choose to do further drilling in FY twenty seven depending on what size of mine life we’re targeting. So whilst I’m saying this is there is sufficient work to deliver a life of mine plan towards the middle of next year that that would contain a multiyear outlook subject to the success of the drilling.

Sean Day, Chief Executive Officer, Greatland Gold: If if I can maybe just add add to that, Alex, I I think, you know, Simon’s absolutely right that the two forty thousand ounce meters is a lot of drilling. That that will give us multiyear life, and we’re excited about the prospect of that. I I also think that although this might be the peak year for drilling, I I I think I’d I’d share conviction that we will continue to be doing, you know, resource development drilling because we think we’re gonna get good value for continuing to expand that Telfer mine life. And you look at something like stage six, if it hangs together, it’s up to, you know, eight, ten year kind of expansion. You look at the West Dome underground, understanding the size of that that prize, even the size of that ESC also in the underground.

I I think there’s a yep. We can consolidate a lot of information from 340,000 meters from eight rigs, but I I think there’ll be ongoing value driver by continuing to have an ex a focus on exploration. Although recognizing what Simon says, we’ll just be able to kind of take it down a notch And so a little less expenditure, but still a real focus for us.

Alex Bedwiney, Analyst, Canaccord Genuity: Okay. Yep. That that’s that’s what I was getting at. And and on that, so at the time that you updated the reserve, you you guys sounded pretty confident on stage seven extension. When do you think you’ll be in a position to give us a bit more information around what the quantum of the grade will be there and and how long it’s ultimately gonna last?

I think that commentary in the quarterly is that it will go into FY ’twenty nine.

Simon Tyrell, Chief Operating Officer, Greatland Gold: Yes. Thanks, Alex. I’ll take that one, Simon. So we’ll be we’ll have completed the drilling for that in q one. By the time we get the assays back, do the modeling, know, complete that bulk model, we’d probably have that completed in the second quarter.

So based on that time frame, we’d probably be talking to you about this after our February results.

Alex Bedwiney, Analyst, Canaccord Genuity: Okay. Great. And just the last thing for me, just on the recoveries. Is eighty two percent or roughly thereabouts a good figure to expect for the rest of the life of mine? Or do you expect that it should rise a little bit as it was in the March?

Simon Tyrell, Chief Operating Officer, Greatland Gold: Yeah. Thanks, Alex. I’ll I’ll take that one as well. So as Sean mentioned earlier, we’ve taken a conservative approach to our guidance. Whilst we’ve shown that we can achieve, you know, those high eighty percent recoveries through the process plant, what we need to prove to ourselves is that’s sustainable over a whole financial year.

So the what we’ve used is the life of mine, so twenty years of history to develop these recovery models. That’s where the 82% comes from. We we need to do further work this year to make sure that the the high recoveries are sustainable. So and we work towards that. I’d also highlight that, in FY ’26, we’ve got 15% of our plant feed is from stage 7, which is an area of the open pit that we haven’t processed, and we’d like to get that operational data in hand before committing to higher recoveries on a sustainable in a sustainable method.

Thanks, Simon. I’ll hand it off.

Darcy, Call Moderator: Thank you. Your next question comes from Kate McCutcheon from Citi. Please go ahead.

Kate McCutcheon, Analyst, Citi: Hi. Good afternoon, Sean. I don’t mean to continue this FY twenty six guidance thematic, but you mentioned calibration. And historically, West Dome has always been prickly on reconciliation. The decision to risk the stockpile, were you seeing undercall on tonnes and grade, and what was that underquarter that undercall for June for some context in terms of expected grade or delivery?

And same for the open cut. Has the tighter spacing that you’ve drilled shown that that grade or those tonnes are coming in lower and that there’s a reconciliation issue? And just I’m trying to understand if the delta and reconciliation on both the stockpiles and pit has supported putting this conservatism into the numbers.

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. So, look, you know, we’ve we’ve come in to to Telfer, and we we can’t reassay stockpiles, and we can’t get them you know, the drilling data on on those mining ventures that we’re putting two stockpiles are historic, and they are what they are. And that drilling density, you know, under Newcrest was, you know, basically done around fifty fifth meter spacing. We’ve we’ve adopted this tighter approach, which we think is right for the ore body, and we think yeah. I I think Telfer did have some historic undercall sorry, overcall issues.

And and we believe, you know, this is the the the we’re highly confident, in fact, that that’s the remedy to this. But as I said before, we’re a bit in a transition year where although we’ve applied that, obviously, the ROM stockpiles already in situ are under a separate regime. And indeed, some of the current mining areas, yeah, we’re already in the mine plan, and, you know, we just haven’t had enough days since acquisition to get rigs on them and to, you know, get assays, remodel them, etcetera. So that hence, my response to Daniel before where I kinda said, look. Probably two thirds from that is in new mining areas that we’re going to mine.

What we think though is this is the transition year. And as you go into ’27 and beyond, we’ll have that higher density and will be a lot more you know, that will give us the confidence that we’d like to see as Greatland because we wanna have, you know, just a tighter understanding of the range of ounce production. And the risk rating isn’t necessary that those ounces have disappeared. It’s just us putting, we think, yeah, a conservative risk rating to make sure the guidance we’re giving the market, we think, will hit.

Kate McCutcheon, Analyst, Citi: So just to clarify, in the June, there was not reconciliation issues, as in what the mine plan said would be there for both tonnes and grade is what has been there for both the stock farm and the pit. Is that correct?

Simon Tyrell, Chief Operating Officer, Greatland Gold: Look. I I’ll I’ll have a another go at attempting to answer that with a different perspective. So whilst whilst the source of the underperformance in q four is still under investigation, it’s it’s clear that it’s in the grade. So and it’s as Sean mentioned, it’s in the, high grade areas, which is a a function of where the reefs run through. So where we where we where we believe most of the issue is is in the high grade ROM stockpiles.

And as Sean mentioned, we’ve processed the majority of those, or or a significant portion of those in FY ’25. And when we look at FY ’26, there’s around that 4,000,000 tonne of those stockpiles in in FY ’26, which we’ve risk weighted appropriately.

Sean Day, Chief Executive Officer, Greatland Gold: Okay. So the bulk of the we

Kate McCutcheon, Analyst, Citi: Stockpile? Yeah.

Simon Tyrell, Chief Operating Officer, Greatland Gold: Go ahead. Yeah. Correct. Bulk of the issue is in stockpiles, you know, that we have weighted the the lower classified material in FY twenty six open pit. We’ve we’ve put a high risk weighting against that.

When we get the, updated models, through that second quarter, as I said, we’ll have a a higher confidence with that material that is planned for the ’26. So again, we’d be able to update appropriately on that after our after our two in our 2Q results call.

Kate McCutcheon, Analyst, Citi: Okay. I think that is clear. So there has been some reconciliation issues, but the bulk of it is the stockpile.

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. Correct. Correct. K. That and and that’s yeah.

Observing that then kinda calibrating it through the the the budget process is where we said, yeah, we ultimately made a call. Let’s let’s risk weight this so that we are confident that we’re putting out a conservative f y ’26, yeah, conservative, know, guidance.

Kate McCutcheon, Analyst, Citi: Okay. Got it. And so I think in the previous two year outlook, you told us an expected grade of point five five for the x pit ore. I think is there any sort of color you can give around the FY 26 mill feed expectations in terms pushing that plant on tonnes to go through in some sort of head grade given we’ve had a change?

Simon Tyrell, Chief Operating Officer, Greatland Gold: Yes. Look. For the the ex pit grade, there’s minimal change on that. That’s it’s in line substantially in line with the production target we gave. So there’s no no change to the open pit grade.

The stockpile grade has has reduced, one, because we’ve consumed the high grade stockpiles, and two, because we’ve risk adjusted them. So you will see that grade drop from FY ’25 through FY ’26.

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. So I I think, look, you you see kind of a a 5% change in grade, but that’s more just that’s a combination of a change in the mining sequence and driven by that the stockpiles being estimated to have a lower grade moving forward. So there’s not a lot of change in that in that open pit grade, but but you obviously do have some natural variation.

Kate McCutcheon, Analyst, Citi: Okay. Super helpful. Thank you.

Darcy, Call Moderator: Your next question comes from Hugo Nicolache from Goldman Sachs.

Hugo Nicolache, Analyst, Goldman Sachs: Sean and team, thanks for the update this afternoon. First one for me, just looking at the cost guidance into next year. Can you just firstly confirm how much higher that ACE guidance would be if you were expensing that 4,000,000 tonnes of inventory drawdown? I presume you don’t given that you’ve acquired that stockpile.

Sean Day, Chief Executive Officer, Greatland Gold: Yes, Hugo. So effectively, as people are aware, inventory or stockpiles that you acquire as part of an acquisition don’t go through all in sustaining cost, and that’s partly why you saw such a super low all in sustaining cost for for for the past year because we’ve had the the benefit of that, less so in the year ahead. We still got around four odd million tons of stockpiles going through. If you added that into the equation, you’re probably adding a 100 to a $150 to your all in sustaining cost if you were to put a cost on that stockpile. Bearing in mind, we bought it at a still super attractive price even if the grade is a fraction low.

Andrew Bowler, Analyst, Macquarie: Because we bought

Sean Day, Chief Executive Officer, Greatland Gold: it at $10 a tonne.

Hugo Nicolache, Analyst, Goldman Sachs: Yes. Yes. No. It makes sense. Thanks, Sean.

Just good to clarify. And then in terms of the sustaining spend into FY 2026, can you maybe just give us a bit more detail in terms of what’s going into sustaining versus growth? Appreciate you got the tailings work there. I think at the site visit, part of that was gonna be in sustaining, but looking at the numbers, maybe it’s not. Can you maybe just talk through how much you expect to spend as sustaining capital in ’26 and and what those pieces are?

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. In the sustaining, there’s there’s, you know, a $110,120,000,000 dollars, which flows through into those all in sustaining costs. But the but, look, there’s a lot of underground advancement. That’s probably your your biggest single element. And, again, it’s about creating the flexibility and the resilience in that underground, creating multiple mining phases, and that’s been a a huge narrative to us.

And we’re really pleased to be investing in that underground because we think we set it up for for success. In the past year, what we did is we expensed the stage two lift, which was basically run of mine where the next lift we’re actually capitalizing because that basically gets us ahead of time. And then there’s some relatively kind of minor list after that. Look. We’re improving the cyanide flow into the onto the dump leach.

We’re actually doing some new rooms on the in the village. Yeah. It’s yeah. There’s so so the the those probably three items are your three largest items as part of sustaining. And there’s just a little bit of catch CapEx catch up CapEx where we just think the site needs a little bit of a birthday, and we’re we’re pleased to do that particularly given it’s generated, plus $600,000,000 over the last seven months for us.

Hugo Nicolache, Analyst, Goldman Sachs: No. That’s helpful. Thank you, Sean. And then just lastly, in terms of the grade impact on the stockpile, should we assume the copper grade impact is proportional to the gold grade impact? And how much copper production have you factored in into that FY twenty six guidance to give us a steer?

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. Yeah. Yes. You should. The the two are correlated, and I’m gonna say about nine to 13,000 tonnes of of copper in FY twenty six.

So that that would be kind of sitting with that kind of profile we’ve given.

Hugo Nicolache, Analyst, Goldman Sachs: Yep. Excellent. Thanks, Sean. I’ll pass on.

Darcy, Call Moderator: Your next question comes from Ben Lyons from Jarden.

Ben Lyons, Analyst, Jarden: Sean, maybe just closing the loop on some of Kate’s questions about the grade profile. Perhaps you could provide some indication about the expectations for the underground grade given there’s been a fair bit of variability there over the over the journey as well. Thanks.

Sean Day, Chief Executive Officer, Greatland Gold: Yeah. Yeah. Do you mind if I just pass that to to Simon who’s about to jump in.

Simon Tyrell, Chief Operating Officer, Greatland Gold: Thank you very much, Sean. So look. We see a, a minor decrease in grade from underground in FY twenty six, about 6% lower than FY twenty five. Once we, get into, the ESC, we’ve seen better grades in those areas. So we’re we’re expecting some some, you know, sustaining the the grade through those areas.

We also like, you know, the Ray extension, which also has a good, copper byproduct out of it, which which is quite profitable. So underground grades, more or less, holding consistent. As I said, 6% drop off FY ’26. And, course, West Dome Underground, you know, hasn’t hasn’t been in the two year outlook, but that obviously has upside once that comes into the mine plan.

Ben Lyons, Analyst, Jarden: Cool. Thanks, Simon. Maybe sticking with you, you’ve given some breakdown of that Telford growth CapEx number, you know, when you referred to some of the underground works and etcetera. I’ve had a crack at using first principles to to work out maybe what the TSF would be and and the underground development. But can we can we break it further into its component parts?

Like, is it about a 120 on the TSFs, about 80 on stage seven, maybe 20 on the underground, and say 30 to 40 for the fleet. Is that order of magnitude, the breakdown?

Alex Bedwiney, Analyst, Canaccord Genuity: Yeah. Look. We we we can give

Simon Tyrell, Chief Operating Officer, Greatland Gold: you some further clarity on it, but, yes, it’s a 100 and, 20 on TSF. So we have 65 in in stage seven stripping. We had that 37 in Resdev, just over 30,000,000 in underground development. The one you’re probably missing there is the bit mining fleet renewal and refurbishment. That’s in at 36,000,000, And there’s some other oh, Hebron’s pre preproduction Hebron feed is called out at at ish million.

So that’s just other other smaller bits and pieces, but that gives you a flavor for it. Okay.

Ben Lyons, Analyst, Jarden: Awesome. And and Thank you. Yep.

Simon Tyrell, Chief Operating Officer, Greatland Gold: Yep. Sorry, Sean. Go. Go ahead, Ben. No.

No.

Sean Day, Chief Executive Officer, Greatland Gold: You go ahead, Ben. Yeah.

Ben Lyons, Analyst, Jarden: Final one was just on have your own I think there was a comment in the release about some early works on the underground development. Just wondering if you could sort of clarify. Is that a reference to a restart of that that primary decline or or maybe a commencement of the second decline from an underground position? Thanks.

Sean Day, Chief Executive Officer, Greatland Gold: Hi. Ben, it’s Sean again. The look. We won’t restart until we’ve come out with the the feasibility study, although we are remobilizing Burn Cut in there where they’ll do some work on the raise board to to to bring in that VR one system, that ventilation system one down to the bottom of the current decline, which will set us up to get into the top of the ore body. So there is some remobilization, but, really, it it kicks off in earnest.

Well, post feasibility study into good order post FID. The in addition to that, just what I said about we also got working with us on, you know, taking the portal to surface, so you’re getting away from the box cut that wasn’t fit for purpose, and then the you know, getting the the taste for that, the blind boards that will ultimately deliver all the the cutting cutting bits for v r two and v r three.

Ben Lyons, Analyst, Jarden: Yep. Copy that. Thank you very much, Sean.

Sean Day, Chief Executive Officer, Greatland Gold: Okay. Darcy, I think that might be the the end of questions, and we’ve probably run a little bit over time, but we wanted to make sure we addressed everything. So with that, I just wanna, you know, thank everyone for taking the time to to dial in. Hopefully, that was helpful, and we appreciate the the engagement. Thank you.

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