Aurelia Metals Ltd

ASX:AMI

Earnings Call Analysis

Earnings Call Transcript 2024-Q4

[Operator]

Thank you for standing by, and welcome to the Aurelia Metals Limited June quarter activities report. There will be a presentation followed by a question-and-answer session.[Operator Instructions]

I would now like to hand the conference over to Mr. Bryan Quinn, Managing Director and Chief Executive Officer. Please go ahead.

[Bryan Quinn, executive]

Thanks, Darcy, and thanks for those who have joined us today for our release of our FY '24 Q4 results. I would like to firstly introduce everyone on the call from earlier. We have Martin Cummings, our Chief Financial Officer; Andrew Graham, Chief Technical and Business Development Officer; and Angus Wyllie, our new Cobar Regional General Manager, who's just being recently promoted from our GM role after several good years of performance at Dargues.

We'll use the saved pack presentation that was released for the purpose of talking through the quarterly results. And at the end, we'll ask the team members to add any specific questions you may have from the presentation.

We'll focus today on our quarterly results and we'll be providing a more some forward look at the FY '25 -- sorry, at the end of the year results for FY '24. We will be talking through our FY '25 guidance projects, discussion on portfolio optimization at that sort of time at the end of August. Hope you can all join for that call at the end of August.

If I just start with the first slide, really the 4 key measures that I'd like to relay is we have delivered on our FY '24 guidance for production costs. Two, we have continued with our operational improvement plans, both with our Cobar regional team in place and stepping up performance; three, Federation remains on track for first tail in late Q1 FY '25; and four, we have reported in the last quarter, some exceptional results in our exploration and we'll have Andrew talk through some of that.

Just on Slide 4. Our guidance results shows a strong delivery in last quarter for all commodities and costs. This has been a great team effort for the last quarter and the broader operational team have really stepped up to show what's possible.

In our previous announcements, we talked about the final quarter being a big quarter with higher grade stopes coming online. And I'm pleased to basically provide that feedback that we have achieved that with some successful in both recovering the ore and getting good recoveries through the processing plant.

On Slide 5, our safety performance has improved with less injuries this quarter, but unfortunately, still one too many. We have a renewed focus in the quarter on using our tech 5s and JA and quality for leadership to really ensure people are working safely and have the time and the tools and skills to compete and work safely. It's not negotiable that people go. It's actually not negotiable. We need our people to go home safely every day.

The majority of the injuries have been cut slips and trips on the side, but still, there's much we can do to sort of stop that from occurring and work with our teams to really ensure we do go home every day safely.

Looking forward into FY '25, our focus on the field leadership and the training around that will be very much a step-up. And we'll also be focusing on protocols to ensure we can really get our so understood and updated in line with where our business is going.

A real positive for Aurelia has been the sign-up for our sustainability strategy for the business. Going forward, we'll now have a clear strategy for safety standards, a clear focus on reducing emissions and the use of town water. And in addition to that, we'll have some real plans around adding value to our communities that we're working with, and we want to be good names with these communities going forward.

On Slide 6, operationally. Firstly, operationally, we delivered a strong fourth quarter, delivering both strong production at Dargues and at peak. Peak delivered well in mining in the processing areas. Mined ore was 18% up this quarter at 175,000 tonnes meters remained above 700 meters per quarter that we've discussed on several different quality conversations.

Mining unit costs per tonne reduced again from 1 34 to 1 20 per tonne from the previous quarter. Our process plays also delivered a great result with record recoveries in Zi and lead commodities, which is also very pleasing for us. The combination of all these good results provide an always sustaining cost for the June quarter at $1,277 per ounce, knowing that full year number was $2,035, which is also within the guidance that we've reported for the full year.

The Peak mine continues over the quarter to deliver also copper from Chesney, which continues to provide good grades and good recoveries through the mill. This has been very encouraging for us. Obviously, as we transition over the coming years into the Peak North mine, having these good grades and good recoveries is very much in line with our business plan going forward.

On Slide 7, Dargues is mainly focused on production drilling, stoping and processing of the quarter, and we'll finish in Q1 FY '25. The operational team has delivered very consistent results at a low cost, and they continue to look for those cost opportunities as we progress.

We're on the final stopes now and some of the mining crews have already started to finish on site as their losses come to an end. At this stage, mining will finish the end of July, and processing will finish towards the end of August. At this point, there will be a small crew moving to care and maintenance while we start selling up the assets and demobilizing the site ready for remediation over the coming 12 months.

Our full plan has been developed with all the activities and organizational structure signed off for the ongoing works, and we're still in the process of selling off the plant and equipment to understand -- and basically to understand through the various options and offers have been given what our sale proceeds will be versus our cost of remediation. There's obviously going to be a trade-off there, and we'll continue to look at that over the coming months.

On Slide 8, for Federation. The Federation project has continued to deliver work packages, including surface construction, which has involved the ROM stockpile build as the polls routes have been put in place. And also, these things are important for our preparation for our production or in Q1 FY '25. Those falling roads will be what we take the ore from Federation to Peak on and join the birth on road, which then joins the main highways up towards Peak.

The power project upgrades have also been progressing in parallel to be ready in time for the site growth. And there was an acceleration in the construction of water dams and infrastructure to manage the heavy rainstorms we experienced over this quarter. Noting this will be important for both the wet and dry seasons, having dam capacity to capture water and wet and to use the water in the dry is obviously something very mindful of in terms of laying at the site properly for the future.

On the people side, we've continued to onboard new employees. And in parallel to that being -- our focus has been to really look at the operators very this work to include operational contracts, people playing in systems and doing a lot of work around completing risk assessments and management plans for the operations when we go to full production.

But as reported, we have had some challenges this quarter with water, both aberration and some water issues at dams. Rainfall first leap do have continued to increase water levels in the TSF. Time when mining is going to end, and it's going to put pressure on our remediation works timing.

Nothing the company manage, but it's just ond 1 thing we're working through. But the multiple rainfall at Federation has created more rainfall of the project to manage while we're in this middle of the project build, even all the acres and pumps that were installed in February were not as effective as planned.

Fortunately, we had in our planning and approved through the regulator, between install a large water management dam and associated infrastructure. So these are fast tracked. And now we are really bolstering up the water management capacity going forward.

To present on the cash for the project, we paused underground works. People were sort of redeployed on other works with -- through our contracting partners and we recommenced operations in early July. The impact of these delays have meant that our ore drive development and infill drilling programs have been delayed and hence, impact our ability to finalize our geological miles stoping plans for the remainder of FY '25 ramp-up, but these will be finalized now.

Adele has resumed, and we'll be really seeing some of that information in our full year results with our guidance in August.

We've also experienced some inflation pressures on the project to labor diesel, concrete equipment hire. These cost inflations have drawn down some of the continuity, but also we have continued to review the scope of the project and look for improvements in our capital to keep us with our approved budget.

It's our intention on the full year results to provide some details on the changes to the project scope that we've used and stated in budget. Ultimately, the result of the production performance for the business and the capital works has met we've resulted in our $116 million cash in our balance sheet, which is a great finish to the year. I obviously have Mark talk about some of those results later.

In the meantime, I'll pass over to Andrew to speak through some of the exceptional exploration results, we've continued to unlock in our region. Thanks, Andrew.

[Andrew Graham, executive]

Thanks, Bryan, and for those who've been reading out quarter releases. Certainly, the exploration results have been exceptional. So just to touch on a few of those.

During the quarter, first of all, those following along, we're on Slide 9. We received assays from that Federation drilling that we did discuss in the last quarterly at that stage, the results will be rather than having assays.

As expected, the assets came back and certainly confirmed what for us is a very exciting development at Federation. The release went out on the 14th of June. And if you haven't had a look at, suggest it's worth a look. Basically, drilling to the west intercept to the high-grade mineralization at about 140-meter offset to the north of the strike of the main ore body.

Now why is this exciting? Well, certainly exciting. And on the slide, you can see some of the grades there are talking 50%-plus leaping and with great copper and great gold. So that in itself is exciting. But the real exciting thing there for me is it opens up the potential Federation mineralization to continue to the West on that offset.

So certainly, plenty there for our exploration team to get into. So that we're on Slide 9 of own from our in district team certainly got his work cut out for in the next while. That release, we also put out information on Lancelot, those who have good memories will recall that we put out some is polarization work on Lancelot some time ago.

We followed that up following our progressive approach to exploration to keeping costs low through soil and artisan tin, which certainly came out with some very interesting results. And we got some coincident top of lead zinc anomalism, and that was coincident again with the IP results. So giving us some good targets, and we'll be drilling that in FY '25.

Moving away from the energy district and on to the Cobar district up around our Peak mine on Slide 10. During the quarter, we also released an exploration update on a range of drilling that we've been doing there. And again, if you haven't had a look, 17th July, we put out that release and it's worth following up to look.

Particularly pleasing for me in this release was the copper success that we had, and Peak does transition next year from to being dominantly fed by copper ores and definitely getting some good copper exploration success will support a long life your peak as a copper mine.

To touch on a few of those, Queen Bee, it's a historical mining area 10K south of the peak processing plant. Results did include 17 meters at 4.7% copper, which have an agreed fantastic result. Within that up to 17% copper grade. Early days for Queen Bee, but the hope for us is to go into an ore body that supports a mine, which will then feed the peak processing plant and the 10-Ks away.

We also saw some really good intercepts in Mount Pleasant. Grades up to 11% copper. Mount Pleasant is affecting a mixed ore body along from Burrabungie. And you may recall, we released Burrabungie results in March last year. It's in that north mine at Peak, and it's really starting to build an interesting copper picture in North mine beyond Great Cobar. You all know about Great Cobar. So we're now extending the known ore bodies. And with this drilling continuing to delineate additional auto out.

Now while on existing ore bodies, the release also included some Jubilee North drilling. That also is in the Peak North mine. Just north of our mining areas. And we've been able with that drilling to extend the mineralization about 150 meters to the north. Now interestingly, that is on the way to Great Cobar. So certainly, some great potential for that to come into the plan.

In Slide 10 of Fernanda from our Cobar District team. The reality is these results, be it around Federation energy district up around Cobar, a real credit to our exploration team who have continued to deliver the goods.

Pass over now to Martin to cover on balance sheet.

[Martin Cummings, executive]

Thanks, Andrew. So I'll be turning to Slide 11. And as Bryan mentioned, this quarter, we've continued to strengthen our balance sheet with total cash on hand growing to $116.5 million. So that's up from $116.9 million in the March quarter. And in turn, has taken total liquidity now to over $150 million.

This is a fantastic performance and was the result of strong cash from our assets. And to put this into perspective, Peak and Dargues almost completely funded our investments in Federation and in exploration this year with a total of around $75 million of cash flow generated.

Peak had a very strong finish to the quarter with over $25 million of cash, which took cash flow to $37 million for the year. It was pleasing to see further progress in improving our mining efficiencies, which led to lower unit rates and this will continue to be a focus area for us in FY '25.

As I mentioned last quarter, our goal of $100 a tonne remains and will be driven in part from cost efficiencies, but also from transitioning to higher volumes from the North mine.

Our processing costs were slightly higher this quarter, really driven by higher variable costs on reagents and power as well as some labor to cover the additional processing time. With Federation ore coming to peak in FY '25, our plans are now underway to set up the process plan to run for longer periods.

And the record recoveries achieved were also very pleasing, given us it sets us up well once this higher grade ore comes to the mill. So Dargues, again, the operation performed admirably, and another strong quarter with cash flow of $10.2 million, and that contributed to a full year result again of around $37 million for that site as well.

Our operating costs are trending lower as we planned and as the team starts to ramp down activity on site. As Bryan mentioned, we do expect mining to complete at the end of this month and processing in August. We will be continuing with shipments of concentrate through the remainder of the quarter. And once processing concludes, we also will transition the site into closure mode.

In terms of Dargues around closure costs and around other related items such as tax losses, I'll carry those items over to next month when we talk through FY '25.

Bryan has gone through the achievements at Federation this quarter despite the wet weather. But in terms of spend, we came in slightly below the bottom end of the revised guidance. And again, I'll update you on what FY '25 looks like next month.

For exploration, the great results that Andrew has just taken us through, in total with an investment of just over $11 million and a very pleasing investment in terms of the outcomes.

And finally, I'll just cover off, you'll note with these attractive commodity prices, we did add to our hedge book during late June and early July. So the hedge positions there are final, but what we did do is add around 14,000 ounces of gold, just under 6,000 tonnes of zinc and just under 7,000 tonnes of lead, and they will be settled monthly up to June 2025. The average price, as you can see on the total book are on that page.

As previously mentioned, hedging for me is not a pun on commodity prices. It's really about providing protection to our revenue and our cash flows while we're still constructing Federation. But that said, more than 50% of our revenue remains exposed to spot price movements.

So that's all I'll cover today. Thanks for your time. I'll hand it back to Bryan.

[Bryan Quinn, executive]

Thanks, Martin. Look, obviously, just on the final slide, to keep the message very clear, really around we are focused on delivering our operational performance to the right level to really get our mills filled in the coming years. And really, to do that, I'll just talk through the 6 key points.

We are focused on getting our first April FY '25 late Q1. We're relentlessly going after improvements in unit cost and performance at Peak, which is going to be our focus over the next 12 months, especially as we move into the North Mine and transitioning into a Cobar predominantly in the next couple of years.

We're progressing optimization works for Cobar. This includes vitalization of a trade-off piece of work that we're doing between expanding Peak, processing versus reselling era. Once that is actually done, we lead information in the coming months.

We've also been really focused on attracting good talent into our regional -- Cobar regional team. They've got some really exciting work coming out, especially with obviously improving the current operations. The development project at Federation, the Great Cobar sort of project beyond that, and some other sort of optimization work we're doing also.

So this is a exciting time for people to join Aurelia. Our focus is also to continue to operate Dargues safely and a good cash generation until the end. As I mentioned earlier, that is coming in the next couple of months. And then we're deep in the process of looking at what we're selling in the market and also the closure plan that goes behind that as well.

Last but not least, it's important to keep our eye on the prize for the future. Our exploration is fundamental to us. It's really looking at what's next beyond Great Cobar and how do you prioritize that. So our mills have -- our capacity will be on Great Cobar.

So as Andrew talked to, there are a lot of exciting information coming out around our Federation and Queen Bee and Nymagee. And so obviously, our folks will be on making sure we have that project and that program works well actually advancing our options.

All of these actions will build our portfolio to be a strong company with multiple options in the future and obviously transitioning to copper dominance in the future as well.

So thanks, Darcy. I will pass over to you to facilitate the questions and I'll take it back after the questions. Thank you, Darcy.

[Operator]

[Operator Instructions] Your first question comes from Adam Baker from Macquarie.

[Adam Baker, analyst]

Good quarter. Peak ore mined, 175,000 tonnes, ramping up nicely there. Just wondering how you're thinking about the timing to Federation bringing the ore online there, tracking that up to Peak and then thinking about potential mill capacity limits at Peak.

In addition to that, how do you think about Terra in context of the strong performance at Peak on its own basis in addition to bringing Federation online?

[Bryan Quinn, executive]

Thanks for the question. Look, I think, broadly speaking, the current baseline plan that we have is we will continue to operating Peak and obviously transitioning over the next couple of years from South Mine and more into the North Mine. Obviously, you recognize that the North Mine has got obviously a dominant around copper and lead zinc.

We will be ramping up Federation in line with the plan we put out in good guidance in late August. And that volume will move its way from Federation to Peak in the sort of period. And obviously, the current base case we've talked to the market about is once the right volume is achieved, and we'll be restarting the Hera plant.

We're obviously in parallel running an optimization process through Anagram at the moment to look at what are the options around putting more through Peak. That study hasn't been released yet. And obviously, the engineering is being done on the optionality around that. Once we have a view of if there's a change, we'll release that information to the market.

But at this stage, it will be ramping up volume into the Peak processing facility. And once we have the view of what that looks like in terms of volume, Hera will restart and be processing the remainder of the ore. But let say, we will provide more details of that as we progress that project in the background.

[Adam Baker, analyst]

And can you just remind me the current capacity of the Peak plant as it stands at the moment?

[Bryan Quinn, executive]

We run the Peak plants 80,000 tonnes capacity.

[Adam Baker, analyst]

Got it. And in context of the strong exploration results you've been having in light of the stronger copper price environment. You're looking at spending more on the belt heading into FY '25 or you might defer that question to next month, I guess.

[Bryan Quinn, executive]

More exploration you're saying?

[Adam Baker, analyst]

Yes, that's right, more on exploration, more trial meters into the ground?

[Bryan Quinn, executive]

Look, I think our drilling has been great for we'll release information on the drilling as we provide guidance and sort of the outlook at the end of August is probably the best way to deal with that one.

[Operator]

[Operator Instructions] Your next question comes from Paul Kaner from Ord Minnett.

[Paul Kaner, analyst]

A couple, if I may. Firstly, on gold production versus sold. It seems like there's a a bit of a con buildup at both Dargues and Peak. How much should we assume sort of gets unwound next quarter? Obviously, all the content that Dargues should unwind, but how much was sort of sitting there at the end of June?

[Martin Cummings, executive]

Paul, Martin here. Look, the con, just to sort of walk you through what took place towards the end of the quarter. We tried to maximize our sales sensibly. So I guess the first message is I wanted it to be a sustainable sales period so that we didn't just trash July and August.

So we do have, in total, similar dollar value concentrate sitting on the ground that we did in March. Now some of that has been price driven as well in terms of the dollar value. But look, there'll be a little bit of unwind.

The reason being is given it was year-end at Peak, we did our -- some of our advances, which are in the normal course. We did them slightly earlier just to make sure the cash came in. So there was production, very good production for the last around 9 days of June that wasn't sold. So yes, there'll be a little bit from Peak, but not extraordinary.

At Dargues, yes, there is, I think, around 2,500 odd ounces of metal income that will be unwound. So we will have the positive cash flow impact from that coming through in the September quarter.

[Paul Kaner, analyst]

Yes. Great. And then just secondly, on Federation, that infill drilling, obviously, a little bit behind because of the wet weather. How much do you think that's sort of going to impact the ramp-up in terms of tonnes out of the ground and ultimately, production in FY '25? Or should we hold off until we get guidance in August?

[Bryan Quinn, executive]

Yes. Look, I think the best result there is just to wait until we get the -- give you guidance. Couple of things. There was obviously the underground ore development. We were actually wanting to get in there and actually do the underground development into those stope areas to be able to reconcile the current models and what's happening underground, which is just normal for a brand-new mine.

Secondly, the infill drilling is obviously critical for establishing the area. We're also waiting for the infill drilling results to come back with the assay as well from previous drilling. So there's kind of a combination of things we want to sort of bring together and correlate and then provide confidence about where we're going as a company.

So it's sort of just more making sure we triangulate all the bits of data we have, and we'll be getting over the coming weeks as well. So we'll provide guidance on that in the August meeting.

[Paul Kaner, analyst]

Yes. No, understood, Bryan. I guess what I'm trying to get a sense of is can you fast track some of that infill drilling to catch up versus what you had sort of originally planned?

[Bryan Quinn, executive]

We'll be going as fast with in field drilling as possible, 100%.

[Operator]

[Operator Instructions] Your next question comes from David Coates from Bell Potter Securities.

[David Coates, analyst]

Congratulations on a strong quarter. My question is just -- is a broader one. The quarter, obviously, really good sort of production cost result for Rod. If you could sort of pinpoint what's really kind of being the underlying driver of that? Is it sort of mining sequence and grades? Or are there some more kind of operational issues you've seen strong improvement would have given that result.

[Bryan Quinn, executive]

Yes. Thanks, David. I might answer then hand over to Angus to make a comment, too. Look, I think ultimately, what we said in the previous quarter was we had obviously to change some of the sequencing around in Quarter 3 due to some technical issues and online analyzers that failed. So we had to change the sequence inside the mine, which is never ideal. But obviously, coming into this quarter, the team has delivered that.

And I'd say in addition to that, we've had some really good results from both mining to get the ore out and from processing to get really good recoveries that we sort of announced as well. So I think overall, we sort of described that in the third quarter, what our plan was and what's been pleasing as a team has delivered that in the fourth quarter.

I think in terms of Dargues, obviously, they've been consistently performing and taking out the stopes in the sequence that was planned and have obviously been able to recover the grade and the volumes that they've committed to on an ongoing basis. So they really -- both sites, both teams have delivered in line with the plan, both of the mining and the planning, the mining and the processing.

Anything you want to add to that, Angus, at all?

[Angus Wyllie, executive]

Yes. Thanks, Bryan. Look, really, there's a lot of focus on the maintenance side as well from the underground segment, making sure we're getting the reliability out of equipment as well as working on utilization with the mining team. I've seen a strong focus, and that will continue into this new year and we're really working to ramp up and make sure that availability and utilization is maximized.

[David Coates, analyst]

Excellent. I suppose that question is another asking that question, I guess, how sustainable, I guess, is that? It sounds like some of it's mining sequence, which will ebb and flow but on some operational issues that a fundamentally sustainable and positively production outlook on operations.

[Bryan Quinn, executive]

Yes. Look, I think the key thing here, David, there's nothing done in this last quarter to shortcut, to get the results. I think moving into Quarter 1 of FY '25, it's business as usual. There was no sort of last-minute sprint to the end and then leads for FY '25. The team has been very much around. We got a plan. We need to deliver it. It needs aligned to our life of mine plan and keep pushing on towards that.

So -- and as I just mentioned, a lot of it is back in the fundamentals, right, have a plan, deliver the plan, make sure the available utilization is right and make sure we've got done at the right cost. So there's nothing untoward or unusual at what we're doing.

I think the sequencing was because of the OSA that failed in Quarter 3. That sort of reshuffled things. But as we've mentioned in previous quarters, our focus has been about getting development leaders ahead, providing us a couple of months of sort of time to be able to get in there, do the support work, get the production drilling, get the services done and get stoping ready. So we're not just in time on every stope.

That's been a focus over the last 12 months to move that forward, catching up from the previous year. So that's going to continue on. Nothing is going to change with that, and we need to get our development ahead even further. We'd like to be even further ahead than we currently are now going to FY '25, FY '26.

[David Coates, analyst]

Excellent. I'll look forward to FY '25 guidance in August.

[Operator]

[Operator Instructions] Your next question comes from Paul Kaner from Ord Minnett. [Operator Instructions]

[Paul Kaner, analyst]

Sorry, hold the mute function there. Yes, sorry, just a follow-up for myself. Just on that optimization plan, when can we expect that this quarter? And then just sort of on top of that, I guess, how should we be thinking about Great Cobar, obviously, sort of transitioning to Peak North. But then thereafter, do we just see Great Cobar sort of replacing Peak North?

[Bryan Quinn, executive]

Look, I'll firstly just mention most of that information will come out at the -- in terms of our plans will come out in the full year results as far as the project is concerned. And we'll also be providing information on FID in FY '25. So we'll have an FID sort of process moving forward in FY '25 for Great Cobar.

Obviously, we've been very fortunate to have the Chesney and the Jubilee area to be able to get some really good copper out and good recoveries and grades out of that has actually allowed us to push back that capital and that sort of progress to Great Cobar. But our aim in FY '25 is to push Great Cobar to FID in this financial year.

Andrew, do you want to talk about -- briefly about the optimization project? I don't want people to be distracted by out. We have a current base plan which actually is to fill peak mill. And then obviously, the option is current default as we move into era but the optimization project is really looking at what else could we do to improve our value of our business. Andrew, do you want to just talk to any key points there for the optimization?

[Andrew Graham, executive]

Yes. No problem, Bryan. And I think that points is very valid. We have a plan that works. We have a plan that's permitted that we can deliver on straightaway, which is one Bryan talked about filling up Peak and then restarting Hera.

And we have had some involvement from engineering firm working vendors on Hera to have a look at the restart some of the costings and those sorts of things, and it will be part of when we come out with Cobar optimization.

The good news on that is there are those surprises. And here of the shutdown well and should we start relatively easily. But what we are looking at is can we do better? And so the way you should think about it is we have a base plan and there's a value to that plan, and we will engage with and take forward an approach that improves that value on a fully risked basis.

So there's other elements around permitting and those sorts of things that will well advanced on, but we just need all that to come together to look at risk value improvement, to take it through Peak. But conceptually, it makes some sense and that we've got engineering support working with us on coming out with that primary.

[Paul Kaner, analyst]

Yes. Understood, Andrew. Thanks for Cobar. So I guess our base case should be fill pile Peak mill and then sort of adding Great Cobar thereafter. And yes, I guess, potentially Hera coming on or expanding the Peak mill.

[Andrew Graham, executive]

Paul, just to touch on your question on Great Cobar. So singing about the evolution of Peak. We're certainly targeting some South Mine at the moment, supplemented with North mine and the higher NSR materials, particularly the gold material is coming from South Mine. We will continue to do that. But you'll see proportionally more North Mine coming in. And that's chatter ore body. So all that we have available and developed today at the right time, then we make it approach towards Great Cobar.

We are doing a series of work on Great Cobar at the moment, looking at things like the geotech hole we drilled for the venture, for example, ventilation, for example. Just to be sure that when we do go, it's a low-risk project that we know we can deliver. But if you look at the mark of mine for Peak, it does transition to North Mine, and it does transition to being a large proportion coming from Great Cobar.

So going to talk about some of these exploration successes in North Mine. The bid gets me so excited is it takes our dependence in some ways off Great Cobar and allows us to then be able to feed copper ores from a range orebodies, which is the ability to deliver.

[Operator]

There are no further questions at this time. I'll now hand back to Mr. Quinn for closing remarks.

[Bryan Quinn, executive]

Thanks, Darcy. Look, thanks to -- firstly, I want to take the Aurelia team for this quarter. Obviously, we delivered what we said we're going to deliver. And that's been based on quarter-by-quarter, we've been focused on doing that.

The executive team has really stood up and sort of made sure we are sort of focusing the right things, and we've been well supported by the Board and shareholders to continue building our business as well.

We look forward to sort of providing some more information at the full year results in late August. As I mentioned in my opening, we'll provide updates on our projects, our production and cost guidance and outlook, and we'll sort of have a lot more information going forward so we can -- provide to our investors and shareholders where we're going as a company.

But otherwise, thanks, everyone, for dialing in today. Thanks for the questions, and we look forward to working with you guys in the coming months. Thank you very much.

[Operator]

That does conclude our conference for today. Thank you for participating. You may now disconnect.