Rhino Muddy miners, Buddy. Mate, we're about a bit of a party today, courtesy of the sheriff. We've got a bloody. I don't know. Can you see this on screen? What? The oh look at this, you might see in your. Friend, that's great. Bit of a bloody look at the little cheese platter we've got going on. We're celebrating sort of the last podcast day we have to talk about quarterly. So we've, we've, we've put out a little cheese platter, yeah, to celebrate.
Which should add a bloody V, no? As well. I know, but I mean we did kinda eat most of it in the preparation but I. Didn't left off. I ate way too much. I didn't even go get a barn me off queue. So queue if you listen. You've just had like 6 wheels of cheese but that's OK. Cheers, Sheriff buddy right. We're we're going out of our realm of expertise today, diversified men resident IGO I if that's not not a bloody Travon JD segment if I've ever
seen one. But anyway, we're much the wiser we G So Speaking of Travon JD JD, they've confirmed alive in this photo they are at some South African mine site. Yeah, so touchdown in Africa, look at them all smiling and thumbs up and having a great time. So yeah. So they'll be at in Dublin next week as well. So is CRE insurance. They are also adding data. Trouter and all the rest of the team. Yep, they, well, they actually prompted Trav and JD to check their travel insurance, which
was like. They actually. Did and they had their A. Good suggestion. Buddy they should pro Trav should probably insure himself over there walking around with the bloody money and mine shirt. Don't see her a rutile phone get a hold of him. But as we said, say good day to the the CRE team, the African mining insurance experts in the broking world. So mate, Steve and Trouter, they, they spearhead the Perth
office, right? They they change currencies in insurance and get money in and out like buddy butter and a piece of toast like it's. Easy as that. Absolute just normal start to the day for him. So mate, after Tari gets you a bloody better price on your premium and all better or more protective cover on what you already have, you won't be saying thanks Steve, you'll just be saying tar go say RE insurance. Go dare jokes. Right, let's take it away. JC men rez Ding Ding Ding for you.
Yes. So they released their quarterly today. So it was a bit of a mixed bag. Some things were come up a bit better than expected, some things you know a bit below expectations. But certainly all eyes were on the, you know, the net debt figure and how the Onslow ramp up is progressing. Pretty simple. Yeah. Just so simple, diversified mind is so out of my wheelhouse, but I'm giving it a crack today. No offer a little bit today. Last I checked out, there's like, you know, 11 and a bit
percent. So let's do a bit of a highlight reel of the callers while you enjoy it. Some cheese and crackers there. We'll swap when you do RGO. So first thing they said they're maintaining guidance, maintaining FY25 guidance across all continuing operations. But at present costs are generally running above guidance at this stage. So they'll be needing to make sure they deliver a lower cost second-half to make sure they
meet those guidance ranges. But we'll we'll have a look at this in sort of each business division as sort of as we go. So First Capital tab off the rank, what is happening at Onslie? How's all that going? So they're progressing towards a 35,000,000 tonne per annum nameplate run rate, which they're, you know, expecting to mate in around June time this year. So for the the quarter just gone, December quarter, they produce 4.4 million tonnes. So that's an annualised sort of
run rate of 17.6. They mentioned I think in the previous quarterly they were looking to do around 18 by December. So they sort of pretty much got there a little bit unders. Probably out and I was adding more in January. Like old Tropical Cyclone Shawn. Yeah. So then there was from that, then there was that as well. So they're actually expecting in this month, January to produce a 1.6 million tonnes, which if you annualise that, that's a 19.2 million run rate.
So that run rate is stepping up, you know, each time, but it's just you know, is it going to step up to 35,000,000 tonnes? You know when they're sort of saying sort of that mid June, but it's but it's heading in the right direction so far. OpEx 7070 bucks a tonne for the first half, which again, you know, as it ramps up, that'll be expected to trend down sort of within that guidance range of 58 to $68 a tonne.
They reckon. Onslow's being sort of operating cash flow positive since November last year. And that $800 million Onslow carry loan, which is a receivable from Inrez, is now starting to get repaid as that sort of, you know, free cash is generated. 3 trans strippers operating at nameplate, the fourth one June, next month,
February, the 5th. In April, As you mentioned, Maddie shipments were sort of impacted by Cyclone Sean sort of earlier this month, but also some unplanned downtime on a port reclaimer, which is, you know, since been resolved. The cyclone did, you know, affect the whole Rd. as well. There's a lot of flooding and that whole Rd. had a bit of truck rollover incidents last year as well.
But the whole road now is in full operation and they're sort of just doing final works to finish all of that off this quarter. But the iron ore division more generally sort of they produced 8 million tons at an average realized price of US 84 bucks a ton, which is a slight improvement from the previous quarter. And obviously the the the main update they're outside of the Onslow progress is that Yulgarns now on care and maintenance. And up for sale eh? Seems like but whether they'd be
able to sell it, not known. Yeah, there might. Yeah. There's the assets and then all the sort of, you know, infrastructure and other, you know, sort of, you know, perhaps you know, fleet equipment, things like that, but. Might be some beryllium up there. Really. They talked. About that, yes. Yeah, and I got one of the comments. One of the fundies predicted beryllium was the the the commodity to watch this year. I'll be completely honest, I have no idea what that is, but we.
We need to get onto that. Alrighty, yeah. Let's do it right, Mining services. Mining services which you know the heart of the of the min Res business, they did 68,000,000 tonnes which is pretty much the same, same as as last quarter. They believe sort of production volumes are more second-half weighted, sort of in line with the Onslow ramp up and they positively said they secured 2 new contracts, a rehab and a mining contract and renewed 4
existing crushing contracts. OK, the the older, the forgotten child, that was the breadwinner, the lithium. The lithium child, yes, So there's been a bit of change in this part of the business. So attributable spot production of 136,000 tonnes, it was lower than last quarter which was about 157,000, but that was sort part of a previously flagged focus to transition to you know lower volume but higher quality production with given all the, you know, lithium market
conditions and things like that. So what they're like in terms of what Pilbara produced what 180,000 tonne, I think it was. So yeah, now we're down from 2:20. So that's, so I'll suppose to just just show them how big their business is compared to Pilbara. So obviously a bit smaller. Yeah, on output, yeah. No, that's right. And similarly to some of their peers, they saw their sort of average realise SE6 price
improve. Min's actually sort of got a slightly better, you know, realise SE6 price compared to some of their peers as well, but they got 827US827A tonne and. I suppose, but I suppose last quarter I suppose like you're Mount Marion, but if you want to converted back like you, you might be getting a good realised SC6 price, but you're getting pretty bloody low when it's, you know that Mount Marion grade. Grade, yeah, that's right. But I think more so the IT was
more interesting. I think more from it like the sentiment and sort of price, price movement type of angle and, and Mark Wilson on the call reckons I've got a belief and the business has a belief that the lithium market is not going to stay at US $900 a tonne for the next 5 years.
So, and it was just interesting hearing that comment along with some comments Dale from Pilbara had the other day, you know, sort of saying he reckons prices are sort of bottomed out, You know, the edging up of prices since last October, you know, could be the start of a longer term upward trend. So, you know, is this very, you know, prolonged lithium winter? Is it starting to defrost a little bit? You know, the sort of sentiments changing a little bit.
You know, these look, mind you, the prices haven't gone, you know, to 1500 bucks, but it's like the you're seeing these sort of little micro wins every quarter. I just thought that was interesting. Yeah. Well, and you think like if it just goes up 80 or $90.00 that is? That's the same. As bloody gold going from 4000 to 4400. Yeah. Like it's, yeah, pretty big, big effect on these, you know, large term operations. Absolutely. We're what are we? What about operate like each
each mile site itself? Yeah. So Wodgina shipped 61,000 tonnes at 5.7% grade. So they're sort of accessing more fresh ore and they've sort of cited some recovery improvements there as well, so. That's a that's a lot higher percentage, isn't it? Like compared to what like New Line Town and that are pumping out at 5.25 point three if they're doing 5.7. So it's obvious it could be a metallurgical thing. Yeah. So they, they sort of cited a bit of both really. And then Mount Marion shipped
55,000 tonnes at 4.4%. So that grade we were sort of talking about earlier, but. That's lifted a bit. But yeah. That was in the high threes. Yeah. So that that has lifted. They've had some plant improvements as well. They said they completed the underground development there. So now they're just, you know, continuing with a study and approval works to basically support a a future underground race start, you know, when that time's appropriate.
It's it's always sad. So in a bloody an underground stop because you know, it's it's a home that a Sandvik bolt. Could have gone. Had but it doesn't have any more and has to be relocated. It's like it's it's like a it's like it's like a dog going to the # like it's but you know, I suppose as as the developed jumbos and the developed people went to another contract like the Sandvik bolts usually follow
them. So it's OK. Like look on a very small scale considering the Sandrick Graham support division, JC Supplies, Olympic Dam, Freeport. I would assume based on supplying them to they'd probably supply OU Tolgo as well like. These are some big mines. They're. The biggest underground mines in the world. So I tried proven, tested and run by Derek Hurd, the CMV ground support division. So just go CMV ground support.
What makes you think that if they can't supply those biggest mines, they couldn't supply your small mine? Give them a buzz. Give them a buzz. To make that happen, what about cost? Costs. Yes, cost the moolah. The moolah so fob cost for for both Mount Marion and and Wodgina are in the low one thousands or they expect to be in the low one thousands of at this stage. So and they're they're still saying they're expecting to reach those guidances. So we'll flash up the the table
here. You can see sort of where they're at for the first half of this financial year and where they're sort of guiding towards for the whole financial year. But remember back end of last year, they had a lot of those cost reduction measures sort of, you know, flowing through the business and things like that. So I imagine that will probably starts to have a little bit more impact on the, yeah, you know, cost per tonne basis in the coming months and quarters.
And also, of course, you had Bald Hill, they shipped 27,000 tonnes of 5%, but they're now in that's now in care and maintenance, but sounds like they're sort of still continuing to invest in the lithium operations to a point to, you know, basically, you know, harvest when the market rebounds, that's sort of a thing that was this sort of rhetoric. Right, the balance sheet, the debt. JC, where's the debt sitting at? Oh, everyone loves. Talking about the debt. First day really delving into
the min res. It is I've I've come up a very big learning curve. So there's there's sort of a lot. Of cheese in the progress. With a lot of eating a lot of cheese in the progress actually finally there I am wearing my my free cash flow hat as well. I'm not sure if you can see that I thought I'd better put that on for a quarterlies day as well. But anyway, I digress. So back-to-back to the balance sheet.
So there's total liquidity of 1 1/2 billion sort of expected as at 31st of December. So that includes around $700 million of cash and $800 million of undrawn, you know, revolving credit facility net debt figures and expected to come in at basically $5.1 billion at 31st December. For context, back in 30 June last year it was 4.4. The current market cap is around 7 billion as it today for reference. So some of the key drivers as were that were you know that that that affected that net debt
balance. You know the Hancock gas assets deal was done back into last year. So they got $780 million of that in the door. They sold the 49% of the Hall Rd. that was $1.1 billion then sort of coming out the door was $1.4 billion of CapEx, which was largely driven by Onslow. There was a networking capital
unwind of about $500 million. So trade payables decreasing and then 200 million due due to Red Hill post first door on on ships for Onslow And then because of a the weaker exchange rate, the Aussie U.S. dollar exchange rate, there was a $300 million valuation and revaluation of of their bonds as well. So when you push all that up basically amongst other things that sort of got that that $5.1 billion number, it was a bit more than I think the street expected.
I believe consensus is more in the mid 4 bills. Yep. But on the call they said they were comfortable with the net debt position and and by June, you know, the business would be, you know, transformed with a free option on, on, on lithium. And they reiterated there was, you know, no financial covenants on the bonds and they continued to trade above par and that they weren't really expecting any material payable arm wines to come and believe that they're now at at peak leverage. So yeah.
Big numbers much did you read much into how much has been spent on Onslow versus how much remaining for big ticket items? I assume another two train ship is on the way. Like that's pretty big, pretty big capital, but you I think the road being close to finish, there'd be a lot of capital that have been spent. I think it was very first half weighted to be honest. There was there was some figures in the quarterly but not a whole bunch of detail.
But yeah, very much sort of first half weighted. But yeah, you know, there's still obviously you know, there's more transshippers and things like that to come as well. But you know, there's also been 1200 odd people leave the businesses since the start of FY25 across, you know, head office and you know, you know, there's two operations that have gone into care and maintenance, you know, construction activities have wound down. There's, there have been those roster changes as well.
So that's happened. But they did sort of like there would be more detail on CapEx to come with the financials or half your financials, which is in in February, but they signalled scope for further spending now that they have the cash from the sale of the the N e.g. s s. But I think really sort of rate reading through all this information, the key to this is, is, is just keeping Onslow on track and hoping, you know, maybe get some a little bit of a bump in, you know, commodity
prices and things like that. But that is that is just so critical here. But you know, there's they've in previous calls I've mentioned, you know, they've got other leavers that they can push if they need to. But at at this stage, yeah, there was nothing further. What else sort of other bits and bobs. There was nothing really on the the governance issues or the leadership succession plan in the quarterly. There was a bit of sort of or. Again, watch that just never
really be talked about. Yeah. And gets to 12 months down the line, they're like, oh, wasn't he supposed to be leaving? No, yeah, no, we didn't say that because it's like, you know, as we. You'll hear from the chat with Romano tomorrow. As with Minrez, he's biggest holding I think. I think so, yeah. Yeah, he doesn't want him to go
anywhere. So there are, there's obviously still there's some, there's obviously different sites where there's a shit load of support for him not going anywhere. So. Yeah, no. So that was, yeah, pretty quiet on that front today. And the shorts have sort of they really sort of did spike up the back end of last year, but sort of pulled back. But they've sort of been steadily increasing a little bit since since November, according to a short man.
But yeah, that was sort of a a bit of a quick highlight reel from today's quarterly, but. You think of what's in the iron ore and you look at just, you know, meow Bush maths, you just look at the lithium they produce compared to Pilbara.
And like, if they're getting valued for not much on the lithium, if there is that bit of rebound in lithium, they've got a lot of a lot of leverage to bloody a lot of lot of talk to benefit from the rise in the lithium price, especially because they can, you know, turn Bald Hill back on and they can really, you know, pull the levers to make a bit of cash when they need to so. Yeah, I mean, obviously with care of maintenance, I mean it's even though it may be a suitable
environment to turn things back on, you know, there's, there's a process and and cost to do that. But you know, if the fact that they've got those assets is you know a plus and it's just a matter of when it's sort of a sustained period where it's, it is a better, you know, environment, you know, you've got them there, take a look and and go from there sort of thing. But yeah, I think the the interesting sort of period of
time. Well, the the crux point really will be probably more middle of this year, back end of this year. That was sort of the feel I got having a look at this today. Saying if the the Onslow fruit starts yeah, coming off the tree. 'Cause that'll, that'll, that'll, that'll impact it a fair bit. So yeah, I think that that's the real key period to watch. So, yeah, but that was my little my little highlight reel there. Ohh go you JC right I let's get
on to IGO the. Other gonna get a crack in there as well well you. Do Ohh, you're right. Do you think just bloody, just chew it right into the microphone too? That bloody, that onion, the French onion dip. She was a bit rich, but it's good. But I have too much of it. Yeah, right. RGO she was a like tough quarter. It appeared they were they didn't deny it at all. They you know, still they've still got the Kwinana impairment to come which they flagged
before the quarterly. So that'll come out come in the half year accounts, I would assume. So cash went backwards in RGO for by 12 million. So Nova underperformed sounds like the the grade like because it's sort of the production, you know, the the rock factory that they could just, you know, get a bit of easy cash out of because
it's getting that into life. But sounds like the grades on the, you know, the fringes of the ore body that they're talking about that they're sort of at now and they sort of aren't reconciling to what they plan to get out of it at the end of the life. So not sure of the set up there, but like, you know, when you get to the end of nearing the end of a mine's life, you're taking out all the shit pretty much.
Because yeah, all the remnant areas, it could be the, the levels in between mined areas, which could be challenging, but it could be the, it's usually the shittest grade that's left because why would you, why would you leave the good stuff till the end unless you cannot take it for some other reason. So and you know, whether a lot of stuff usually gets left by early management, they're like, I won't be fucking here then
this won't be my problem. So it's yeah, it's always challenging the last bit of the of a mine life. But like they still said, they generated 14 mil free cash from Nova operationally. But sounds like it could have been a lot better because you're seeing how much the nickel output drop of course, from that side.
Sounds like there's a bit of work going on the background to sort of properly model and guide what's left there, what they expect out of it in terms of grade and tonnage and hopefully hear about that in the coming quarters. So still, and you say on the waterfall chart is still spending 16 mil on exploration and evaluation. So they're like drilling, drilling in and around Cosmos.
So said on the Ivan said on the call, there's like a few things that you know need to be squashed or closed off or nails hit on the head effectively before they walk away from it. So they probably bloody deserve a bit of an exploration Hail Mary RGO, considering since they've bought Nova and became RGO, they didn't haven't really had a massive, massive exploration success. So they probably spent a bit of coin. On it.
So yeah, so that now the thing about the thing I'll go into here just as as a 101 that I've given myself and then I'll give the other people, it's the it's like there's cash and IGO, but then there's the JV for the whole green bushes and kunana arrangements. I'll just I'll go step, step through it. For those who don't know, if you already know, just Fast forward. So you've got the Winfield Winfield JV that is what owns green bushes.
So that's 51% TLEA, like Tianchi, Lithium, Energy Australia I think it is, and 49% Albemarle. OK, yeah. So but then TLEA, that 51% that holds green bushes is made-up of 51% Tianchi and 49% IGI. So effectively IGI have like 25 point O1 this no sorry 24.99% of green bushes. So TLEI owns 100% of the Kwinana facility. So TLEI owns bloody they got a bit of half of green bushes 100% of the Kwinana downstream hydroxide. So for for IGO to get a dividend
from TLEI. So when they talk about the bloody that's that's the cash they get. You'll see on the waterfall chart there's nothing on there that is anything to do with green bushes cause all RGI get from green bushes and TLEA which includes the hydroxide is either a dividend or they would in worst case scenario have to put money into it so it doesn't show up on their waterfall chart. So so for RGO to get a dividend from TLEA to show up on that
waterfall chart. So you know green bushes to make a shit load of money if they because if it loses money, they'd have to tip money into the JV. But you would hope based on or go through the operating costs later. You don't think green bushes will lose money unless there is a catastrophic event or a
lithium price even worse price. So that money made in that Winfield JV between TLA and Albemarle is then used to operate fund the growth at Greenbushes service the debt within the Winfield JV. Now that Winfield JV debt that got upsized to 1.55 billion US in June last year and that a lot of that was used to fund CapEx at Greenbushes for Train 3 and the TSF 4. Not sure if it's fully drawn, I
think it's close. But I, I heard, I heard like the the Winfield JV effectively took on more debt so it could release a dividend because Albemarle needed cash. So. OK. I think that's yeah, that's sort of yeah, right. Yeah. So sort of debt paid a dividend. I'm, I'm not sure if that that's it sounds cool.
Anyway. So then the money after the Winfield JV that then goes into TLAI like that has to service the Kwinana downstream as well, facility CapEx and operating and everything then like TLAI itself and what's left from that will then be released as a dividend to TNT and IGO. So last last reported in August. So IGO share of the TLEA net debt was Aussie $415,000,000. So that's effectively the debt within the Winfield JVIGOS quarter of that.
So it's implying that that was 1.6 Aussie, but it's U.S. dollar denominated. So I would imagine since that period it would be there's a lot of and they, they talk about it today as well. The, the FX when they're talking about, because when they talk about EBITDA and everything, they're using the, the values within the Winfield JV and TLEI, but like as the book value and, and all that. But it's not getting used on their cash flow at the moment because. But in, in terms of the, the
financials, the accounting side. So there, there is going to be once those accounts come out, that will be like obviously the FX increase and then the update on what the, what the debt is. So I so, yeah, as I said, what's leftover if there's everything's going well and the debt serviced and Kwinana CapEx has been satisfied and it's not losing too much.
That's how IGI get a dividend. So because FY23 those dividends were 1.2 billion to IGI when lithium was humming then they received a further 761 million in dividends in FY24. But unfortunately for FY25 they have and likely have and will receive 0 for the whole of FY25. So they haven't received any yet. And they've said in the announcement that they are not expecting a dividend out of TLAI. So look considering they paid 1.9 billion for their stake in TLAI in which is green.
Bushes and. Kremina, those dividends have paid for that acquisition. I'm not though, I'm not sure if they had to tip in any more money into that JV or if that. Was the only outlay. That was the only outlay. I'm not sure. So they've they've definitely made high while the sunshine it's just pretty bloody, pretty bloody overcast at the moment. You'd say yeah, so it's the the the risk it like you think of it, it's like you're a non, you're a non operator. You're like a bloody cold Rd.
sort of thing like you're just hoping that and and it is aligned in terms of the two customers of green bushes are Tianchi and Albemarle. So they are and they're, but they're the shareholders as well. So they will want to, you would hope keep the cost down, operate it the best they can to make bloody money out of it. And then they it guarantees their supply, but they obviously want to make money out of the out of the operation as well. So what sort of circulates all back to themselves?
Yeah, in, in, in a way. And like talking about Kwinana, like the 'cause I get a lot of questions about the, you know, the marketing rights and, and everything. Like that's thinking that, you know, Tiantia got all the power and audio. I haven't got any, but look, there is. It was pretty repetitively said today like this, this is the arrangement, this is how the money flows as how I explained it before he he explained it
much quicker than I did. But it, it flows from Winfield to TLAI, then to IGO and if at all, and it's all a function at the moment of obviously lithium prices are not that good and they're expanding green bushes at the same time. So, so 4 green bushes we'll go, I'll go into the figures after this. But the, I guess the one bit was like the sales, the lithium sales were down compared to what
they actually produced. And you know, everyone starts the scuttlebutt starts going around that Oh no, stockpiles are building up because TNT lot last year didn't take product and that's going to see inventories and they've got the control. So because you see that lower shipped to production number, that narrative gets gone. So let's see what Big Ivan had to say when asked about inventories directly. Let's have a listen. The next question comes from Levi Fry with UBS.
Can I just sort of quoterize that question on the inventory build up though? So how big, what are the stocks on site, how big was a ship that was missed? And do you expect you know all inventory to be cleared by by the end of the FY or end of the Tianjies FYI in the calendar year? I don't have the shipping schedule, but I think Levi in terms of, you know, getting the tons out, that's a priority, right?
The team, they know that and they, they actually caught up through the quarter, but didn't, didn't kind of clear it all. And I can't give you an exact schedule and and say what the inventory would be by the end of the this coming quarter or TNT's year end effectively. But all I can say is that Rob and the team will be working hard to move the tons as quickly as they're producing them. There's no intent for any inventory build up or or holding there or buffering around that.
Yeah, but you get the the angle of the questioning. I guess they've got form in not taking it so. Sure. Look, there was 1/4 this time last year and that was on you know a fairly unique set of circumstances coming out of a period of very high prices without falling. They had high inventories and their plants were still ramped up. But let me give you some confidence, there is no pushback on on tons and nominations from either customer.
They're both pulling the production through as quickly as it's as it's made. Well, that was pretty, pretty adamant that there is no, no pushback at all that Tianchi don't want the product and it was just just a shipment timing. So that probably has to give a bit of confidence for the the
market. I would say because that, you know, that narrative does get around so well and because another thing was I learned today the the Kunana hydroxide facility gets first preference over Tianchi taking it elsewhere. OK, yeah, not that it's probably taken shit loads at the moment 'cause it's not really getting the getting the output, but that's sort of how the hierarchy of that of that goes. So as I said, the Train 3 commissioning expected, so it's in progress.
Commissioning is expected Q2 FY20 6. So look at their unit operating cost for green bushes like $324 a tonne Aussie. So Pilgrim Minerals, as we said was 621, so nearly double just shows the shows the quality of green bushes like grades dropped a bit going from 2.53 down to 2.1, but still miles out of Pilbara mining 1 1/2%. And like you look at even the tons mined, Greenbush's mined a little bit less ore for the quarter, but produced over double the amount of spot you make.
It's not, not that mining is always there's probably stockpiles and variations there. But of course, just as a just as a guide and I think you know when because Greenbush's is gets a bit better recoveries than Pilbara. So it just just shows the quality of that asset. It is an absolute bloody standard. Amazing Kwinana, as we said, cessation of activities on Train 2 due to the, you know, I guess the project economics, capital allocation, just general feel of it.
It probably didn't make sense and the OK, but they've, they've sort of they're still reviewing the whole whole thing as well, like train one as well like work, like whether that makes sense for both TLA and RGO going forward. So he was asked about the future of Kwinana and just the whole thing in Baron by Kate Mccutchen. I'll play that for. You Kwinana Train one has been challenging. When do you think you'll be in a position to update the market on some of those metrics like
costs? How much longer do you give Train 1 to get somewhere where it resembles something that's closer to nameplate? Is there a scenario where it doesn't make sense to continue that? And I guess how long until we have some clarity there? Is it a couple of quarters? Is it a year? Is it too soon to know? I mean Konana as you call it out, it's obviously very material for our business and the cash that that's demanding to sustain and and develop that
asset. We are obviously working through that very proactively, not just because of the impairment. It's it's budget time and it's also something that's, you know, been a strong focus through 2024 and we really need to be to be clear about what the what the plan and the future for it is. It's something that we need to get to a place where we've got
alignment with, with TLC. They bring obviously huge expertise in, in the lithium refining market in those operations across China and and beyond. And so we rely on that and I think draw on their expertise, but equally want to have our own view on the economics and the the plans and and make sure that that that's been considered as part of the planning and the thinking there. To get to your specific question on timing, I can't give you a date yet. But look, it's it's hot
discussion at the moment. It's got a lot of focus, not as I said, not just because of the impairment. So at the very least I do expect and I know how material it is for our business to be providing guidance on Konana going forward. So it's something I didn't do in the last calendar year because it was too uncertain for me. It was too new for us to be able to do that consistently or with
the confidence. I know that we'd we'd sort of put some numbers out in 2023 and just miss them and it didn't really help with with anyone's understanding or confidence around the asset we. So we will put some more numbers out. We'll work through that for the next quarterly and ongoing and taking the the 20, as I said calendar year 25 budget into account give you that that extra set of clarity to to work with. It's pretty, I don't mind Ivan.
I reckon he's he's got his bloody feet under the desk pretty settled in now and but he doesn't bullshit. He doesn't bullshit like he bloody tells it how it is and he's not like, it's not like bulk euphemisms or putting fluff on it like he's not trying to Polish a turtle or something. He's being pretty bloody honest about what Kwinana is and that they're looking at. Like will it, you know, hot discussion and will it make sense going forward?
Because if of what? Yeah, there's going to be a big impairment on the, you know, the carrying value of the asset and obviously the the what RGO is valued at as a business. But for them to get a dividend out of TLEI, if they're not wasting it on Kwinana, you've got more chance of getting that, you know, that juicy dividend out of green bushes.
Yeah. So it'd be, and this could be how, you know, he sort of works alongside Tianchi to, you know, try and get the best outcome for IGO, not just the best outcome for TLEI. Could be a pretty, you know, pivotal part of his tenure as the MD of IGO. Yeah, no, it's huge. And I guess the interesting thing to me and I guess it's something to to learn and, and look into is, is it the fact that, yeah, we're trying to yes, those sort of ceased works on that.
But you know, those sort of comments around, you know, even reviewing train one as well is, is that a a comment on, you know, sort of downstream processing in Australia compared to, you know, other parts of the world? Is it a comment on, you know, obviously the lithium environment as well or is it perhaps? Both well, and it could be like could be is lithium hydroxide the way forward? I'm not this is this is like a bloody Mat Fernley question this one.
But like, is lithium hydroxide going to be in demand enough to warrant a an Australian downstream facility? Or is lithium carbonate going to be more in demand 'cause it appears that's what Rio Tinto are betting on, that lithium carbonate's probably gonna be a more, that's what they're going to be producing a shit load of out of brine. So. Yeah. So even like the preferred chemistry is another thing to
think about as well. It's not sort of, I guess sort of being quite evident to me sort of chatting about this. It's not just as simple as all lithium's a bit poo poo. Like there's it. There's a lot more sort of factors to consider out that consider for that. So no, it'd be interesting to say what their assessment is of it going forward, whether there'll be any impacts or changes to, you know, how that operation or that that processing facility looks like today.
And yeah, yeah, want to watch? Yeah, very much so. That's bloody. That's about it. So, so they've it'd be interesting to see what they, if they simplify and diversify because they've still, you know, they're still there's still cash like taking take away the whole Winfield JV and everything. Like I think sounds like that'll, you know, hopefully sort itself out, get a dividend. It's not like I know it is their debt, but they've still got, you know, 200 and 200 odd mil. They've got 700 and.
That's RGO themselves. Yeah, Yeah. They've got 720 mil of undrawn debt within Igos so that they've got to potentially deploy that what they, you know, net net debt, 200 odd mil if you can include the their share of the Winfield JV. But they, you know, they got a quarter of a cracking asset in green bushes. Their forest down is on care and maintenance now. So that's they're probably going to realise some value out of getting that deal done with medallion.
Probably not heaps for the gold rots and the plant and everything. So they might. Not enough to move the dial. Yeah. So like, you know, Cosmos is obviously a lot of that, that he's sort of, he's inherited that one, a lot of a lot of infrastructure being put in there.
You know, your God, there could be a miraculous frigging nickel revival, but Cosmos is always gonna Cosmos needed frigging $16.00 a pound to be a, a feasible mine deep, a lot of work, tough ground conditions and everything. So they'd have to be a massive bloody quantum shift in nickel for that to become valuable. Nova's gonna be at the end of
the life. So yeah, it'd be interesting to see what they what they do in the coming years if they just really simplify and hopefully reap the benefits of a lithium turn around and green Bush's reducing the bloody cookies for them. Yeah, oh, who knows, JC? Like these friggin chemicals and base metals like it's we're mate, we're we have. Stretched. We have stretched our comfort zones today. So no, we're not good. Yeah. How good's that directed special gun, 70% open rate yesterday's
mate cheese line out the door. You wouldn't even know. It's just well, you did most of it on the first day. I know I went. Alright, you did you. Did alright, I got up early this morning. I'm bloody in a better return, not drinking as much I'm bloody as much not not drinking 0. Just a slight that's ramped down and the dad jokes of Ramp. Yeah, yeah, yeah. Really getting old. I love your work, JC. Got anything else today? There's bloody few. Oh, was there resolute? Resolute sand fire.
Oh yeah, Sand fire. What they what sand fire they were. I think they're pretty low cost. Good, good operating cost performance. I think the copper was down a little bit. Oh God, I should read the bloody directors special. Where was this this bloody? Money mine dot. Commoneymine.com everyone look at look at the value. I'm just about to get out of it. Giving it to yourself. Because I friggin wrote it. Where are we?
25 1/2 thousand tonne of copper, 23,000 tonne of zinc reduced net debt by 57 million, so net debt sitting at 288. Million we've been chipping away at. That so Matzo and Mateo C1 operating costs performed well at the US $1.51 per pound and US $1.22 per pound. So that's not too bad, but I'd say the zinc would help likely to drop that operating costs like copper wood for gold. So would've got resolute produced 340,000 oz for calendar year 24 at US 1476. So they obviously got the dramas
with the Mali government. It's. A bit of cash out the door there last quarter. Capricorn produced, they were already pre reported 28.7000 oz. All in sustaining costs of 1490. They beat Remilius by $1.00. That's great one with cash and gold of 363,000,000 after raising 200 during the quarter. So 30 million has been spent on Mount Gibson so far and out of the budget at 260. BlackRock increase in the stake and Got BlackRock seemed to be going gold. Yeah, I saw a few substantial
yeah notices. So yeah, that. Was one levy Bloody's lock and gold. Oh that's bloody. That was the bloody main ones so. Moneymine.com if you want to find out the rest of them. Love your work and bloody there's a shit load of websites in the links of the in the show notes for all these followers and ladies. Mineral mining services The open pit gurus, grounded the camp gurus. Sandy ground support, Ground support gurus. CRE Insurance. Top of the show. Oh, bloody take.
It take it. Taking you out to lunch gurus K drew RC and diamond gurus, Daesh sat geophysical gurus, saltbush contracting. Just shit job gurus and haulage gurus but they'll do freaking anything. Get wet solutions. The bladder gurus and Landman gurus. Guru Money Miners objectives, financial situation or needs of any particular person.
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