Yancoal Australia (ASX:YAL) Q3 2026 Earnings Call

0:00 Good day and thank you for standing by. Welcome to Yankou third quarter production report. At this time, all participants are in the listen-only mode. After the speaker's presentation, there'll be a question and answer session. To ask a question during the session, you need to press star one and one on your telephone. You will then hear automatic message advising your hand is raised. You can also submit your questions via the webcast at any time during the presentation. Please be advised that today's call is being recorded I'll now hand the conference over to your first speaker today, Mr. Brandon Fitzpatrick. Thank you. Please go ahead. Thank you, Desmond, and thank you to everyone joining us for Yan Cole's briefing on the third quarter production report. We have several members of Yan Cole's executive leadership team on the call to review the quarter and participate in the question and answer session.

0:54 The commentary provided today is based on the quarterly production report released on the Australian Securities Exchange and the Stock Exchange of Hong Kong yesterday the 20th of October. All financial references in this webcast are in Australian dollars unless otherwise designated. I'll now hand over to our Chief Executive Officer, Sheriff Burra, to provide the quarterly highlights. Thank you Brendan and welcome everyone. The third quarter was an important period for Yang Coal marked by the completion of the Kestrel acquisition, continued operational discipline across our portfolio and stronger realised pricing supporting a significant uplift in our cash position. On the 1st of October, we completed the acquisition of an 80% interest in the Kestrel Coal Mine. Kestrel is a high quality, long life metallurgical coal asset that strengthens our portfolio and increases our exposure to premium steelmaking coal markets.

1:56 It's a meaningful step forward in our growth strategy and we look forward to working with our joint venture partner Mitsui and the Kestrel workforce as integration activities progress. Earnings from Kestrel will commence this quarter. Despite lower production due to planned longwall activities, our cash balance increased by $340 million during the quarter. This reflects stronger realised pricing, disciplined cost management and continued operational momentum across the business. Kevin will expand on the financial position and guidance later in the call. Turning to production, managed operations delivered 16.6 million tonnes of run-of-mine coal and 12.4 million tonnes of saleable coal during the quarter.

2:44 Production was lower than the second quarter due to the planned long-wall relocation at Mullarban and challenging geological conditions at Ashton. Importantly, Mullarban's Longwall returned to regular production in September, providing a foundation for improved output in the December quarter. Across the Open Cup portfolio, Mount Thorley-Walkworth, Middlemount and Hunter Valley operations all delivered strong performances, and year-to-date we're tracking ahead of last year's record performance. Looking ahead, stronger production in the December quarter, continued support from favourable coal market conditions and the commencement of earnings from Kestrel are all constructive for our full year performance. Normally at this stage, I'd hand over to David Bennett, our Executive General Manager Operations, to provide further detail on operational performance and safety.

3:38 However, David's attending to other matters today, so I'll cover these topics. Safety remains a core focus across all sites. Our total recordable injury frequency rate ended the quarter at 7.14 compared with 7 at the end of June. While still below the industry-weighted average, the recent trend reinforces the need for continued targeted intervention activities to strengthen safety performance. Operational performance during the third quarter was broadly in line with our expectations. The planned longwall relocation at Mullarban was the primary driver of lower production relative to the second quarter. Across managed operations, we produced 16.6 million tonnes of run-of-mine coal and 12.4 million tonnes of saleable coal.

4:28 Mullarban completed the longwall relocation with open-cut operations and the coal handling and preparation plant performing strongly throughout the quarter. The longwall recommenced production in September positioned the site for increased output in the December quarter. Mount Thorley-Walkworth delivered higher run-of-mine production supported by strong mining fleet performance and dragline productivity. Sailable coal production remained consistent with the prior quarter. Hunter Valley operations maintained strong momentum with run-of-mine production exceeding our forecast and coal handling and preparation plant performance supporting consistent sailable coal output. Middlemount delivered improved production supported by strong mining performance and favourable yields Yarrabee delivered steady production with continued focus on coal exposure and mining optimisation Ashton's production was significantly lower due to challenging geological conditions in the Longall roof Operational focus remains on safely managing strata conditions and supporting future production continuity With Mullarburn's Longwall now operating and strong open cut performance across the portfolio, production in the December quarter is likely to be stronger than the September quarter.

5:49 Kestrel produced 6.3 million tonnes of ROM coal and 4.8 million tonnes of saleable coal on a 100% basis in the nine months to the end of September. We receive our 80% interest from the 1st of October onwards. The operation continues to perform well, resulting in a long-haul relocation being brought forward, which will affect coal production in the back end of the fourth quarter. I'll now hand over to Mark Salem, our Executive General Manager, Marketing and Logistics, to provide commentary on the coal markets. Thank you, Sheriff. The tributal sales were nine 0.0 million tonnes, lower than the second quarter due to reduced saleable production and the timing of shipments.

6:39 Thermal coal markets strengthened during the quarter as geopolitical tensions, supply disruptions and weather-related constraints tightened seaborne markets. Highly liquidified natural gas prices reinforced coal's competitiveness in the global power generation mix. Demand across Asia and Europe remained resilient with coal-fired generation supporting energy security and cost management. Australian producers benefit from favourable operating conditions and strong export performance. Against this backdrop, pricing for lower energy thermal coal strengthened relative to higher calorific value products reflecting increased buyer preference for Australian supply amid uncertainty surrounding Indonesian exports.

7:37 Thermal coal indices increased during the quarter. The API5 index averaged US$99 per tonne, up 3% from the second quarter. The Newcastle 6000 index averaged US$136 per tonne, broadly unchanged from the second quarter. Metallurgical coal markets also strengthened. Chinese steel producers increased imports ahead of the seasonally stronger consumption period, while domestic supply constraints and export disruptions in Russia and Canada further tightened seaborne availability. Metallurgical coal indices moved higher. The Platts Lobol PCI index averaged $180 per tonne 12% from the second quarter, and the Platts Semi-Soft Index averaged US$149 per tonne, up 4%. Demand across major steel-producing regions remained broadly stable, with resilient production in China, Japan and Taiwan partially offsetting softer conditions in India and South Korea.

8:54 Our realised prices increased during the quarter. thermal coal averaged $160 per tonne, metallurgical coal averaged $229 per tonne, and our overall realised price averaged $170 per tonne. Recent benchmark price increases have not yet been fully reflected in realised pricing, and further uplift may flow through in subsequent quarters. I will now hand over to Kevin Hsu, our Chief Financial Officer, to address the financial position and guidance. Thank you, Mark. As Sharf noted, our cash balance increased by $340 million during the quarter.

9:41 This reflects stronger real estate pricing, disciplined cost management, and continued operational momentum across the business. The cash balance benefits from favourable timing of payments and receipts, unlike last quarter when the timing was unfavorable. There was also a positive impact from unrealized foreign exchange gains on our US dollar cash holdings. We completed cash flow acquisition on the 1st of October. The upfront cash consideration of 1.85 billion US dollars was funded through a combination of available cash and the initial utilization of the 1.2 billion US dollar, five years syndicated acquisition loan facility.

10:33 Payment of the upfront consideration factored in the 40 million US dollar deposits and other provisional adjustments for the NEDADs and the working capital. Our 200 million US dollar committed working capital facility remains undrawn. Our operational guidance for 2026 remains unchanged. Attributable saleable production is likely to be delivered in the upper half of the 26.5 to 40.5 million tonnes range. Higher diesel prices have returned as a cost-high wind, placing operating costs towards the upper end of the guidance range.

11:22 Cash operating costs should fall towards the upper ends of the range of $90 to $98 per ton. Capital expenditure will be skewed to the fourth quarter with less than $400 million spent year to date. Full-year capital expenditure should fall within the guidance range of $600 to $750 million. Stronger real estate pricing, favorable market conditions, and the commencement of the earning from Kestrel are constructive for our financial performance in the final quarter of 2026. I'll now hand it back to Brandon to coordinate the question and answer session.

12:08 Thank you, Kevin, Mark and Sheriff for outlining the drivers of our third quarter performance. We'll now move to the question and answer session, starting with questions from the phone, then moving to questions submitted by the webcast. Desmond, could you please initiate the phone question process? Thank you. As a reminder, to ask questions on the phone, please press star 1 and 1 and wait for an employee to be announced. There are currently no questions from the phone line. Please continue. thank you Desmond I'll come back to you shortly to check again in the meantime we'll start with some of the webcast questions unsurprisingly Kestrel's featuring in a number of the questions submitted so far whilst we didn't have operational control through the third quarter Kestrel will form part of the portfolio going forward so let's look at some of the questions coming through on that topic something high level to start with we'll the Kestrel staff be managed by Yang Hall or by a third party?

13:25 Sheriff, can you please elaborate on the operating structure going forwards? Yeah, thanks, Brendan. We're currently in the process of integrating Kestrel into Yang Hall. The intention is over time that it's operated similar to all of our other operations. We had the great benefit of being able to go up to site the first couple of weeks of ownership and get to meet the team and the people on site there and very impressed with the culture, great management team and certainly the mine was producing well. So the intent is through the integration process to bring it into the Yankul family and to run it as we do our other mines.

14:11 Thank you Sheriff. Kestrel is an operating mine. It's in production. What can we say at this point in time, given the early stage of the implementation integration process with regards to the production profile this fourth quarter and then going into the forward horizon? Yeah, thanks, Brendan. The mine has been producing well. It's certainly continued to produce well through the short period of time we've had it. there will be a long wall move brought forward as a result of their production profile and that long wall move will be at the back end of this quarter. With regards to production profiles going forwards, we're currently working through the budget and five-year plan process including the cash flow asset and we'll be able to provide that information, some of that information in terms of guidance at the end of this year.

15:08 Thanks, Sheriff. That leads into the next topic with regards to an update on the cost and CapEx profile for Kestrel post-acquisition and any plans for expansion of production from the current level. Is there anything we can say at this point in time or will we have to wait for the full year results in February before we have any forward-looking commentary? Yeah, look, we'll wait until February. We're obviously working pretty diligently through, you know, some of the opportunities that Kestrel will take our time. It is a very high-performing underground mine. It's running very well. And the intention through the integration process is to work closely with the team at Kestrel and build off the strong base that they've developed there together.

15:59 Thanks. Thanks. Delving further into the Kestrel acquisition and the various financial metrics, one of the questions coming through is asking for some insight into the various financial metrics regarding the acquisition. What was the return on investment for this acquisition, or how does it compare with Yan Coal's weighted average cost of capital, or the assumed realised price? for the Kestrel products. What can we say in regards to this? Perhaps, Kevin, I'll turn to you to see what's available as an initial comment. Yeah, I'm probably going to just maintain the position as we've announced the Kestrel transition on 14th of April, the presentation we published in ASX and Hong Kong Stock Exchange. We do have a few simulated number there. However, the question asked about ROI, about WACC, the expected return and the price assumption, they were not discussed publicly.

17:11 It's a very Yankel internal assumptions. So for that reason, I'm probably going to just refer back to the presentation we posted previously. Thanks, Kevin. Quite understandable. I believe we've got one question coming through on the phone line. Desmond, I'll turn to you before returning to the webcast questions. Certainly. We have a question from the line of Mark Charles Pedersen from Bell Potter Securities. Your line is open. Please go ahead. Good morning, gentlemen. Hello. Hello, Mark. Good morning. Just obviously, Brendan, regarding the cash flow, which is what the market obviously looks at and we've charted pretty much it's back to 2023 obviously in the third quarter you had a strong met coal position and obviously price coming through there better than thermal obviously that's been reversed in the current spot prices obviously up you know api 115 compared to 99 150s for nuke and obviously we've now got kestrel with the low ash a high coking coal price coming through. How should we look as a sensitivity on a percentage contribution going forward for each API, nuke and the met coal so we can sort of get an understanding of obviously sensitivities of where those prices

18:42 are moving and obviously impact on the company? Okay, Mark, I appreciate the appetite to understand the product mix going forwards. If we look at the product mix currently or pre-Kestrel, we've been fairly steady state, circa 85% thermal products and 15% metallurgical coal products being the low-volt PCI and the semi-soft. in the half sorry in the April presentation pack we put some proforma charts in showing the product mix going forwards Kevin if you just want to highlight some of those numbers that we provided previously it'll be indicative there will always be period by period variations in any specific time frame but it is a good reference to use at this point in time sure as Brandon just mentioned we have put in some high level indicative number for the proforma coking coal portfolio which is going to be increased from a 16% to 22% based on the 2025 number and then in the previous communication we also mentioned for anything other than coking coal the thermal coal we have API5, GCNUC we generally follow the public statements

20:14 as all the coal produced largely in Hunter Valley will be using GC nuke and then all the thermal coal 100% produced by Moorabbin they all thermal they tend to be take API 5 hopefully those numbers will give you a high level indication about how much percentage attributable to the coking cult, API5, and the GCN. Thanks, Kevin. Mark, was that sufficient? Is there anything further you need? Yes. So just on the thermal, on that 85%, is that split more towards the API5 rather than over the NUC? Because obviously, API5 has been relatively strong in the last four to five weeks or so.

21:07 I think, Mark, if you look at the flow of coal from our assets, if you look at Mullarban, that's majority API 5, but that'll give you a flavour of the materiality of the size of where that comes. And predominantly the Newcastle Coalfield sites are new convex. It'll be reasonably close. Okay. One final observation is Mark Salem and his team do a great job optimising the product mix. They use the blending capabilities across the different assets to best meet the market needs and the customer appetite. So there is always some variation to the product profile as we look at the market conditions. Having mentioned that, Mark Salem, perhaps I would hand across to you to see if there's any additional comment you'd like to make on how we're seeing the the current market conditions and how we're adapting our product profile to suit those market conditions?

22:12 Yeah, sure. Thanks, Brendan. It's an ongoing exercise in terms of optimisation of our revenue and our product mix. And we're continually working with the mine sites in a very close way in terms of where significant price movements exist. how we modify the way we prepare the coal and the way we blend the coal, always in an attempt to optimise. And that reflects back on the comment you made, Brendan, in relation to how the blending and how coals can change from different categories in relation to Mark's comments about API5 or GCNUC. It depends also on the arbitrage that does exist and the markets available and how we prepare those cargoes.

23:10 But in essence, I think the comments that were made by both Kevin and Sheriff should give Mark a good guideline of how we where those coals basically sit against approximate indices. The intricacies are always very delicate and very involved, but that's probably a good guideline. Thank you. Sorry, just one final question, one quick one. Just on the Kestrel price, obviously that's a low ash, hard coking coal price, which I think when you announced the acquisition was $146.50. now my understanding that is obviously a discount to the hard coking coal which is sort of $2.80 so it's above that $2.25 level where you start paying contingency payments over the top of what you paid already do you expect to occur in the fourth quarter any contingency price because of that price increase Mark based on what we have publicly announced the contingent payments will be triggered on a full year basis if the hard coking cold index is above 225 US dollar and this is on annual basis so we are not able to simulate only based on Q4

24:40 we will need to look at it the whole year basically for the next 12 months to see the potential impact. Okay, perfect. Thank you. Okay. Desmond, I don't see any other questions on the phone line at the moment. I'll move back to the webcast. On that topic of cash movements, one of the topics coming up is the cash balance. we have people noting that in previous quarters we've put the end of quarter cash balance in the quarterly production report and observed that that was not provided for this third quarter period.

25:27 What comment can we provide on the cash balance at the end of the third quarter and linking that back to the cash balance increase we did report being the $340 million, please, Gavin? Yep. Thanks, Brendan. That's a very good question. Normally, we tend to always put a cash balance for the quarterlies. This time, we intentionally not putting it as this might be confusing due to the settlement of Castro. From acquisition settlement funding schedule perspective, we need to start drawing the acquisition facility on 29th of September.

26:12 and we also have a two-step settlement as there will be a data settlement internally for Castro as well. So those big cash movements might unfortunately confuse people if we're using them. That's the reason why when this quarterly was drafted, we intentionally tried to normalize these one-off items and focus on the operation cash movement, which is the $340 million. that's right thanks Kevin so ideally once the cash transactions and the debt profile is normalized we can return to a reported cash balance at the end of the quarter as has been past practice but as noted just wasn't practicable for this specific period speaking of cash balances loans and the like we have a question here saying Now that we've taken on the $1.2 billion US loan, how is the board balancing loan repayments against capex and dividends going forwards?

27:24 Is the current dividend policy remaining in place, or will debt repayments take priority in the short term? Perhaps, Kevin, again, one for you to provide some views. Yeah. The law, we haven't fully disclosed all the commercial details of the law, but we have done all the simulations in our modeling to make sure the current guideline of Yankov's dividend, which is 50% NPIT or 50% free cash flow, whichever is a higher way. After all this assimilation, we are not compromising better guidance like previous communicated with the investors. So we'll keep the same discipline.

28:22 Thanks, Kevin. And I believe you were talking about some of those pro forma numbers that we provided for the debt position back in the April presentation. The indication was it was from a stretched balance sheet. If anything, we had gone from having a lazy balance sheet to a reasonably utilised balance sheet. Perhaps a fair observation to make that there's no urgency to quickly pay down the debt. It'll be a matter of balancing the preferences. Yeah, this is correct. And then also please bear in mind, Yanko's existing portfolio has no interest-bearing liabilities. So with Kestrel, even with this $1.2 billion acquisition facility, the overall gearing position is very mount.

29:13 Right. Earlier in the call, we did touch on the forward looking projections, and we made the observation that a lot of the guidance and the outwardly or the forward-looking projections will come through in the February result, the full-year result in February. With regards to capital allocation and cash flow and CapEx, is there any indication on the CapEx spend on the multi-year horizon? And if we look at it specifically in the September quarter, Can we clarify what the September quarter spend was and where the funds would be allocated in the final quarter of the year? And does that include or exclude Kestrel for the fourth quarter CapEx profile?

30:14 Thanks, Brendan. We have provided our guidance on CapEx on a full year basis, which is $300 to $750 million. We have spent $400 million up to the end of Q straight. And then we will basically still aiming to spend the other CapEx within the range. We do not do multi-year forward looking guidance. So we would encourage investors wait till February next year to look at the 2027 forward looking CapEx guidance. and then the current guidance doesn't include Kestrel.

31:04 Thanks, Kevin. That's worth clarifying. All the guidance numbers provided are exclusive of Kestrel. The production figure, the cash operating costs and the capex, they were all set pre-Kestrel. We are mindful of that and when it comes to the full year report, we'll provide figures against the original guidance and clarify what is inclusive and exclusive of Kestrel. on the full year 2026 performance. Going back to the topic of kestrel and coal quality, there was a reference earlier to the benchmark price and the circa $500 million of contingent payments.

31:54 Could we please clarify which benchmark we're referencing when we're talking about those contingent pricing payments? Seth Brandon, I just mentioned it's the premium hard coking cold index which we quoted and you can find this reference in the announcement we made on the 14th of April. And Kevin, am I correct to say that there is a price realisation component as well? So it's the index price and then a price realisation factor that becomes relevant for our revenue generation and therefore contingency payment? Yes, that's a very good point. The US$225 hard coking token index price, what I mentioned, is supposed to be the trigger.

32:46 However, when we pay the continued payments, we will need to look into the realisation factor to figure out how much is applicable to the Yen or Kestrel portion. Thanks, Kevin. Turning back to operational specifics and looking still at Kestrel being the newest asset in the portfolio, it's where the a lot of the interest is lying for the investors on the call. The long-wall move that was mentioned in the fourth quarter, Gareth, can we give some indication on the utilization for Kestrel through the fourth quarter, perhaps how many weeks the long-wall move will take, how many weeks of production we anticipate?

33:39 and they are asking for a projection on production from Kestrel but I'm mindful that we don't provide asset by asset production guidance. Yeah, thanks Brendan. Given the recent good production, the long haul move has come into this year. It'll start in and around early December. It'll run through into the early weeks of next year. where the longwalls ramp up and get away again. The only other thing I guess I'd say is there is a step around in the next panel, which is a short move, but there are some good long panels. As most people would appreciate, longwall move frequency is related to panel lengths, and if you have a look through some of the material previously provided, you'll get a good idea of where the frequency lies of those panel lengths.

34:37 Thanks, Sheriff. One of the investors is asking, when we provide our 2027 guidance, will there be separate guidance for Kestrel versus the rest of the business? It's mindful that they're also asking about long-wall moves. You've just touched on that. The reason for the question is there's a five-year plan later this year where we get will we get five-year guidance in February or just annual guidance? So I'll make an initial observation there. Yancol's practice is one year of operational guidance on a forward-looking basis. One of the main reasons we do this is the assets are running at a fairly steady state profile. We don't have significant step changes in the production horizon over, say, the next five years. And fortunately, Kestrel is a similar asset is operating at a fairly steady state basis.

35:37 So notwithstanding the Longwall moves and the like at not only Kestrel but Mullarban and Ashton, the combined production guidance at the group level is likely where we'll be going forwards. However, we will evaluate all the guidance thought processes as we head into the next full year result in February. Still on the topic of Kestrel and the transaction, so no doubt be one for you, Kevin. Could we clarify whether the Kestrel acquisition is expected to result in one-off non-recurring accounting considerations? And if so, will it be recognised in the fourth quarter of 2026?

36:25 And potentially even can we clarify under which line item on the income statement? and do we have any sense for the magnitude of these one-off items if they are to occur? Thanks, Brandon. We just completed cash flow acquisition. The team and our consultant has been working on the acquisition accounting. There's one line actually we also shared previously and happy to share this again is the stamp duty where you need just as a part of the transaction is going to incur and we need to recognize and prove them in our accounts. The valuation is being done when we assume the valuations between maybe around $150 to $200 million be conservative.

37:17 Other than that, we haven't foreseen any other accounting entry going to be caused by or any significant loss caused by this cash acquisition. But as I said, we have to go through a proper process working with our consultant, work out all the acquisition accounting entries. Thanks. Thanks, Kevin. I've just about exhausted the webcast questions. Desmond, I'll come back to you to see if there are any additional questions coming through on the phone lines. As a reminder, if you'd like to ask questions, you can press Start 1&1. There are currently no questions from the phone line. Please continue. okay I have the final webcast question in front of me if any participants would like to ask another question I suggest you start typing otherwise we're moving to closing comments after this final question what can we say about the relatively weak coal sales volume in the 3Q period given it was below the the sales volume produced during the quarter so What we're looking at there is the sales volume was 9.0 million tonnes compared to attributable saleable production of 9.4 million tonnes.

38:47 I'll hand over to Sheriff for comment. I think as a first port of call, obviously the Malarvan underground coals will bypass. So obviously that's a large driver of that. and Mark Sale, I'm happy if you have any further comments you wanted to add. Thanks, Sheriff. Yeah, look, very simply, we had a lot of sales and shipments that were in the queue at both the ports of Newcastle and Gladstone. Unfortunately, at the port of Newcastle, shiploader 10 was down for maintenance and then we had an unexpected disruption to shiploader 709 710 and 79 respectively so that resulted in two shiploaders being out and that caused a bit of a queue to occur for the Newcastle so we had quite a number of sales that actually slipped so the sales have actually been made it's just the timing of the actual shipments Similarly, at the port of Gladstone, which impacts our Yarrabee, there's been a queue evolving over the month of September, which resulted in a couple of shipments also slipping. And so we haven't lost the sales.

40:13 It's just a function of timing of when the sales will occur. And we're monitoring those queues very carefully for our year-end position as well. Thank you. Thanks, Mark. It's a good observation about the timing effect. If I look back to the production report, we had 10.8 million tonnes of attributable production and 11.6 million tonnes of sales. So the production and the sales always normalise over time. It's the periodicity and the reporting in a three-month period that tends to be the difference. OK. Mark Jacobs, hopefully you're still online.

40:58 We've got one final question coming through relating to the Malabon. The reference here is stage three. I assume it's the OpenCut 3 extension. What are the risks to having that extension signed and any views on legal challenges or relevant conditions that people should be aware of? Yes, thanks, Brendan. The Malabon Open Cut 3 extension project, we're expecting to get referred to the Independent Planning Commission within the next week or two. The department advises that it has finalised its assessment. I think that it is realistic to expect similar conditions on Scope 3 conditions to what were imposed on Hunter Valley operations.

41:46 I will note that those are reporting obligations, they are not constraints. As far as the question of legal challenge is concerned, what I can say is that the application has been rigorously assessed by both our legal team the department's legal team in its assessment report and will equally be assessed from a legal perspective from the Independent Planning Commission. So the fact that there will be a public hearing means there is no risk of a merit appeal but there is always a potential of a judicial review appeal if somehow everyone has made a legal error. Okay, that's very useful Mark. For the benefit of everyone listening in, worth clarifying that that open cut three that we're referring to is approximately 30 million tonnes of production. It would extend the production profile at Mullarban, but we're not talking about a significant step change in the production output at any point in time.

42:45 That concludes all the questions on the webcast. I'll hand over to Sheriff for the closing remarks. Thank you, Brendan. At the three-quarter mark, Yankol's well positioned to going into the final quarter of the year. We've completed the cash flow acquisition, strengthened our cash position and maintained operational momentum across our portfolio. We're targeting increased production in the December quarter, looking for improved realised pricing and aiming to keep our operating costs manageable despite higher diesel prices. We look forward to speaking with you again when we release our fourth quarter report in January. Thank you for joining us today. Have a great day. Thank you, Desmond. Could you please conclude the call?

43:32 That concludes today's conference call. Thank you for your participation. You may now disconnect your line.