Vault Minerals

Thanks Mark, really great speech and you've timed that to the absolute perfection, so no time for questions, join me in thanking Mark for presenting today. Great, thanks Hayden and great to be back at Colorado to talk about Volt Minerals. OK. So Volt Minerals, we're a diversified we we have a diversified portfolio of operations of relevant scale today, all anchored by a long life operation in Leonora, an operation which in its current configuration is within its infancy. As a business, we have and are driven by free cash flow generation, not production targets, and this has put the business in an excellent financial position with $686 million of cash and no debt. This balance sheet allows the execution of the King of the Hills processing facility expansion, waste stripping at Mount Munga, and the set up of Spanish galleon at deflector through FY 26, allowing us to reach the next phase of free cash flow harvest in FY 27 with no need for a period of deleveraging. We have titled the presentation Inflection Point, and that's exactly where we believe we are. The favorable operating dynamics into FY 27 coincide with the extinguishment of the hedge book and will be essentially unhedged as we enter into FY 27. This will see expanding margins and free cash flow growth. We will hit FY 27 with strong half on half free cash flow growth and earnings momentum. As the hedge deliveries materially step down in the second half with 61% of the hedge book for FY 26 to be delivered through the first half. Exploration has become an increasingly active part of our business, which is our growth and that's our organic growth, particularly with high impact programs that are lean or undergrounds and sugar zone, which have and continue to deliver strong results. Today we released some exciting new results from the King of the Hills Underground, which demonstrate the extension of mineralization along the main host unit beyond the resource limits, setting setting up for ongoing reserve conversion opportunities. And success of the sugar zone, which through focus drilling has delivered a new shallow high grade or source, which has been incorporated into the mine plan and delivered 20% year on year, year on year or reserve growth. OK, so a snapshot of the portfolio. The portfolio is very much concentrated within Western Australia and has relevant scale today, with 90% of our reserves and resources situated within Western Australia. In FY 25, we sold 385,000 ounces at an all-in sustaining cost of Australian 24,224,222 per ounce. Outside of Western Australia, we have the sugar zone in northern Ontario, which provides a rare, fully infrastructure supported organic organic growth project in one of the world's most sought after mining jurisdictions. Today, we released our updated ore reserves, which delivered a 17% increase in oil reserves to 4 million ounces or a or a 33% increase when FY25 mine depletion is taken into consideration. We continue to have a large mineral resource base of 12.2 million ounces, all situated within developed operations, providing us a great runway for ongoing core reserve conversion. So whilst the market has been slow to reward us for the hard work of the past 12 months, we now have 3 fundamental catalysts and value drivers we are we are advancing. Starting at the left of the screen, we are well into the process of investing $172 million to increase throughput capacity at the King of the Hills plant by 50% to 7.5 to 8 million tons per annum. We expect to complete the project in a in a little over 15 months' time, which under our current configuration will set the region for a 20% increase on FY25 production. The ongoing part of the opportunity for us at Leonora is extending that peak production period, and our primary focus is underground drilling at both the King of the Hills and Darlo operations, which have experienced a real hiatus in in in genuine dedicated exploration in recent years. We expect the sugar zone to come into increased focus with the regulatory approval for the new Life and Min tailings facility, the sole remaining trigger for a restart of operations. As I talk out a bit, talk a bit more later on, the delineation of an oil reserve at Sugar South has turned Focus exploration success into genuine value, with a third, shallower, and high grade mining front to now be included in the mine plan upon restart. Looking forward, all 3 of the sugar zone loads remain open and have the potential for ongoing mineral resource growth and all and all reserve conversion. OK So outside of the fundamental catalysts, we have a rapidly, we are rapidly approaching the hedge the inflection point on the legacy hedge book. 92% of the remaining hedgebook will be delivered through FY26 and we will exit FY26 materially unhedged. This will deliver strong year on year free cash flow growth. And and really set us up for asymmetric exposure to gold prices in FY 27 as we have established operations of relevant scale. Spot deliveries will increase through will increase through FY26 with 61% of FY26 deliveries scheduled for the first half. For some context, at current prices, we expect to see around a 23% increase in our. Realized price for the first half and a 32% increase for the second half, relative to our FY 25 realized price of Australian $3,684 per ounce, with the hedge book fully extinguished in the first quarter of FY 27. The hedgebrook has a short tenner, which is getting shorter. And represents 3% of our oil reserves or 1% of our mineral resources. OK, so for those that are familiar with the team, it's no secret we prioritize a strong balance sheet. Today we have the cash and an internal liquidity of 686 million and no debt, which ensures we can execute on our project pipeline. Our capital management framework reflects our disciplined approach to operations, and our discipline is no different when it comes to capital allocation and capital management. We expect this to become an increasingly increasing part of the business and a focus as we enter a strong period of free cash flow growth. The framework is designed to internally fund our business to deliver sustainable and efficient returns which reflect the free cash flow generation capacity of the business. And this is not just words. As we have put this into action, with the implementation of a buyback facility with our FY25 results a little under a month ago, which allows us to repurchase 10% of our shares over the next 12 months. The buyback demonstrates our confidence in the business and its value. Relative to the prevailing share price, and it's good to be able to share with you today that this morning in Australian trade, we actually were able to repurchase our first set of shares under the buyback facility. Importantly, The approach strikes a balance between the reinvestment in our business as we will continue to pursue organic growth and exploration initiatives. And match those and match those initiatives with a creative capital management to give our shareholders more exposure to our free cash flow growth profile as the hedge book is all but extinguished in a month's time. As we approach this period, which will deliver a step change and transformational change in free cash flow generation, in parallel with the positive operating dynamics into FY 27 and 28, the combination of our long life business and exploration pipeline. Means while we're always alert to opportunistic M&A, we have no existential requirement to pursue M&A. OK, turning to the assets. To orientate everyone, our King of the Hills operations are located 34 kilometers north of Leonora, with Darlo some 100 kilometers from King of the Hills. With the region having a prolific history and enjoying somewhat of a renaissance, it is easy to forget that our operations in their current configuration remain in their infancy, with first production from the transformational low-cost processing facility in June 2022. Come back OK, so the operations consist of a range of our wholly owned or sources which you can see on the left. These include our active mines, namely the King of the Hills Open Pit and undergrounds, Darlo, which has 36 consecutive years of operating history, however, never having been the primary focus for its global major owner, nor ever feeding a low cost processing facility. In addition, we have 127,000 ounces in stockpiles which have been predominantly generated from recent open pit mining at King of the Hills. We have multiple multiple regional satellite prospects with these prospects stretching along a 12 kilometer trend and are defined by shallow historical drilling. We match these or sources on the right-hand side with the with the current capacity and the expansion profile of the processing facility, which we believe is a core, Region core, a core strategic piece of regional infrastructure. So looking to the open pit, we released an updated open pit reserve in May. Containing 110 million tons at 0.62 0.2 of a gram for 2.2 million ounces, the gold industry does not produce widgets and not all oil reserves are created equal. The King of the Hills open pit reflects the open pit limit at an Australian 3750 gold price. Providing a bulk based load open feed immediately adjacent to a low cost processing facility, the ore reserve has a low strip ratio of 3.4 to 1 over the life of the pit, and importantly stages 2 to 4, which contains 75% of the metal, have an even lower strip ratio of 2.7 to 1. The mining cost utilized in the cut-off rate calculation is based on our current rates, and we have made no allowance for the potential benefits of a larger, more productive mining fleet we will consider with the with the expiry of the existing mining contract in December 2026. Just looking at this visually, here you can see how the pit staging looks visually and the flexibility it provides over the 13 year or reserve schedule. With the stage nature of pit development, providing scheduling flexibility with investment in the highest stage, the highest strip stage 5 pushback, not scheduled to begin until FY20 FY 32, sorry. OK, one of the advantages we enjoy in Leonora is a large modern low-cost processing facility which is set to get larger and lower cost. The stage one upgrade introduces a larger, more efficient primary crushing circuit, which will enable direct tipping from both mine trucks and road trains and deliver improved availability with a fit for purpose design, including apron feeder to make the plant suitable for underground ore sources. The stage 2 upgrade will increase throughput capacity 50% above current levels to 7.5 to 8 million tons per annum and is centered around the installation of a 9 megawatt wool mill in series with a 15 megawatt sag mill, which will increase grinding capacity and ultimately increase the flexibility to treat a broader range of sources. More specifically on costs, the upgrades will result in the process in the facility being increasingly competitive in the region, with already low operating costs set to reduce to around $15 a ton. So before diving into some of the drill results released today, we really want to zoom back and look at the bigger picture beyond the medium, beyond the medium and look to the long-term to understand that the prospective geological horizon we have at King of the Hills. So essentially the, sorry, I'm not gonna miss the sound. Essentially what we're trying to do this year is we're gonna step out 400 to 800 m, so the far holes being the 800 m holes in blue. To test the northern plunge of the granodiri, which is a major control on mineralization and is poorly defined and tested to the north. The investment in these holes is all about setting up for success and stacking the odds in our favor, as it will provide an enhanced and well defined lithological model to set up subsequent underground drilling down the nose of the granite direct contact. OK. Now to the results we released today. These holes were designed to test the northern strike and down dip extensions of the main east-west striking veins along that granite diorite contract in the west zone, immediately beyond the mineral resource limits, which you can see here with the black lines on both of the charts, that represents the indicated mineral resource boundary with the mineralization outside in reporting to inferred. On the left hand side you can see the down dip extensions and to the right, the long strike extensions to the north. For some context, if we look to the holes in the north, the furthest hole to the north, returned 1.9 m at 54.8, and the deepest hole on the, sorry, left-hand side returned 0.3 of a meter at 65.7. So certainly fairly encouraging results as we take it forward. OK. Looking regionally, regional exploration has been reinvigorated and we will progressively turn our attention to the suite of regional satellite opportunities on the books. The prospects stretch along a 12 kilometer trend defined by shallow historical drilling with very limited recent work. We are on the ground now and have commenced drilling and we will complete programs across all four deposits over the course of FY 26. It's turning to Darlo, the ore reserve we released today delivered strong oil reserve growth with a 146% increase post FYY25 mine depletion, or a 41% increase in absolute terms to 203,000 ounces. The increase is largely driven by the chapel zone, which increased in size following successful in infill drilling and the Lord's area which benefited from a high gold price. To orientate you can see them. No, not that one. Essentially the bottom areas of the mine there with the chapel on my right, so pipeline on my right, chapel and the Lord zones, the deepest zone there. You can see how close these areas are in relation to the existing underground development, with the only major capital to access being an upgrade to the ventilation circuit. Looking forward, there is potential to increase the size of this area, given the drill success we have had at pipeline this year, which is not currently in reserves. The drilling this year targeted infill and extensions of the pipeline zone, and drilling will be ongoing as we increase our understanding of the zone and its potential to further increase the scale of this area of the mine. In addition to to targeting the main host structures in this area, drilling for FY 25 intersected 2.1 m at 69.2 g a ton in an unmodeled hanging wool structure of the chapel zone, which now provides a new exploration opportunity as we access this area of the mine. We introduced the second underground rig at Dalo in April. And we, we will continue it there for FY 26. This represents a significant step up in recent drilling within an operation that has a prolific history of production and discovery. Changing tak a touch, so our Mount Mer operation, which is located 50 kilometers southeast of Kalgoorlie, is in the strongest position it has ever been in, with a 6 year all reserve back life of mine. The operation has a long history of reserve conversion, demonstrating the value of incumbent mining, processing and services infrastructure which lowers the hurdle to commercialize exploration success. In the prevailing gold price environment. This is incredibly valuable. We with our large wholly owned mineral inventory of 3.9 million ounces we hold here. I want to call out the chart on the bottom right, which demonstrates the operational dynamics of the Santa Open Pit Mining Center, which will benefit from reduced investment in waste stripping with a declining strip ratio and increasing grades over the next 3 years. OK, so looking to Canada. We are well advanced in the regulatory process for the new Southern tailings facility, which will provide a lower cost life of mind tailing solution relative to the existing northern facility and dry stack mix. We anticipate approval of this facility in the 4th quarter of FY 26, and this is the sole remaining trigger for a restart of operations. We have recently completed a 93,000 m drill program which underpins the 1.2 million ounce mineral resource, and today we have increased the ore reserve by 20% to 389,000 ounces following addition of Sugar South. In addition to the step change in drill data, with the upgraded site infrastructure, underground infrastructure, and the new mining fleet, we are not hoping for, rather we have invested for success. Once we have approval in hand, a number of key workstreams will get underway. We will commence mining on a development only basis in July of 2026. Crushing and screening from the dam material will commence in January 2027, with dam construction completed in October and processing expected to commence in November 2027. Once we commence processing, we expect to have around 13,000 ounces on the deck generated from ore development, which will be ready for immediate processing. To sugar South, so you can see the addition of the sugar Southone which sits on the left-hand side of the screen. And really this is a point of time estimate. At this approach as we approach the restart, the exploration success we have had has delivered a third mining front with the emergence of this site. The zone will de-risk production, increasing the flexibility of the flexibility of the mine plan with the zone being shallower and having a 23% higher grade relative to the main and middle zone loads. The current sugar zone mining or production permit. Is for 15 for 1400 tons per day and provide sufficient headroom to cover the introduction of sugar South into the mine plant. Looking forward, all three of the sugar loads, sugar zone loads, sorry, remain open. With the potential for ongoing resource growth and conversion, particularly in the south loads, which remain relatively shallow, with mineralization intersected some 500 m beneath the indicated resource boundary. Exploration remains a key value driver for the project and it is also an efficient one. With surface diamond costs some 60% cheaper than we see in Western Australia, the emergence of the sugar the southern corridor is particularly exciting for the project, with the zone now extending 500 m south of the sugar main loads and drilling concentrated to a depth of 300 m below surface. The sugar main zones, the sugar main and middle zone loads have been traced to 1000 m below surface. Two of the highest grade intersections we have seen on the property are at the southern margins of Sugar South, including 1.2 m at 282 g and 2.4 m at 119 g a ton. Incredibly exciting. So wrapping it up, Volt is and we'll continue to be a well managed outcomes-based business with the experience, the gold, and the capital to focus on creating value for our shareholders. Brilliant, thanks, Liam, we're out of time, so thanks very much for presenting today.