Thank you for standing by, and welcome to the Aurelia Metals Fundraising conference call. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question, you will need to press the star key followed by the number one on your telephone keypad. I would now like to hand the conference over to Mr. Andrew Graham, Interim CEO. Please go ahead.
Thanks, Ashley, thanks, everyone, for joining us today, on what is actually a very important day for Aurelia Metals, and I'll get to that in a moment. I'm joined on the call today by Martin Cummings, our CFO, who will talk in detail about the funding package, and equity raise that we're conducting today. Also joined by Peter Botten, our Chair, and Paul Harris, a lead from our Board, and Chair of the Rem and Nom Committee , who can talk to the other announcement we put out today, which is in relation to the new MD and CEO. We'll start off on funding. As I mentioned, in my mind, this is a very important day for Aurelia.
It allows us to be fully funded to get on with the projects that we've talked about a number of times, in Federation and then also, Great Cobar. If I step back, when I took on this role six months ago, one of the things I was keen to explore in relation to funding was offtake funding. The beauty of offtake funding for a business like ours, and particularly out of Peak, where there's tons aren't spoken for, is there's a real synergy that can be had there. With the offtake, you're getting benefit from the offtake itself, and allowing competitive interest rates on the debt, and we certainly see that in the package we released this morning.
Just, I am pleased to be able to talk to this package, which is with Trafigura, one of the world's biggest commodity traders. That strength and their support for our business, I think, speaks volumes for what we're sitting on with the Federation and Great Cobar projects, as well as the Peak Mine itself. I'll go talk to the pack that was released on the ASX this morning. It was the pack Federation financing and equity raising presentation. I know there's a number of releases this morning, but that's the one we'll flick through today. I don't intend that we talk to every side in the pack. There's a lot of detail there, certainly as particularly retail holders think about investing in the business and supporting the raise.
You know, there's information there that you can refer to. We will talk to key slides, and obviously take Q&A at the end. Again, I'll start on slide six, as I mentioned, the package released this morning fully funds our business. When I mean fully funds, the reality will develop Federation immediately, and we'll talk a little bit later on about our remobilization plans. Effectively then, Federation gets exposure to very, very high-grade zinc and lead with precious metals and copper. Within that funding package, and I talk about it being fully funded, the business, we're intending then to develop Great Cobar out of cash flow in due course.
Great Cobar gives a very key exposure to copper and gold, one of the highest-grade undeveloped copper resources in Australia at the moment, which is sitting only kilometers away from an existing plant. When I think about the highlights, a key piece which we talked about a little bit in the past, is that these developments that we're talking about, Federation and then Great Cobar, are just mine developments. They're very capital efficient because we're using and leveraging the existing plant, capacity within the Aurelia Group and within that Cobar region. The development of these two projects then organically transitions Aurelia to being a base metals producer.
If I jump onto slide 11 of the pack, it's a slide that you will have seen before, I think it's important that everybody is on the same page. Ultimately, with the development of Federation, as I mentioned, zinc and lead, particularly, but with, you know, good credits in gold, silver, and copper. Great Cobar, subsequently, very much a copper resource with very good-grade gold, like 0.7 grams gold. We transition from what we had in the left-hand side of slide 11, the FY 2022 profile, very much about a half gold silver producer, and the rest made up of base metals, to being very much a well-balanced base metals producer with a good hedge and a good credit on precious metals.
I think, you know, going forward, where we stand at the moment, a near on AUD 3,000 gold, it's great to have that gold exposure. As we transition to base metals, I'm sure we'll be well supported by a world that requires more copper and more zinc, particularly, which will then flow through to price. Since joining us in early December, Martin Cummings, our CFO, has effectively been. I asked him this morning, "What percentage of your time has been on financing? Is it about 50%?" He said, "About 50% on normal CFO business, plus about 70% on financing."
The reality is he's done an immense job and a tremendous job in working through the options and getting to the package we put before you today. I am, without any further ado, gonna hand over to Martin and get him to talk through the process we followed and some of the key features of the package we're talking about.
Thanks, Andrew. It's right, it does give me great pleasure to be able to take you through the financing arrangements that we've announced today. We've undertaken an extensive process to get to this point, and we did consider multiple funding options. I will note that it has taken a little bit longer than we originally anticipated to get to an announcement today. The option that we will take you through really does provide the business with a cost-effective and flexible funding solution, which will support the restart of development at Federation, and as Andrew said, in due course, the development of Great Cobar. I'll just talk mainly to slide 13, which has a lot of information on it, but gives you an overview of this transaction in its entirety.
We've entered into a financing facility for around AUD 100 million with Trafigura. As Andrew mentioned, Trafigura are a global trader, but for those of you who aren't familiar with them, they're active in metals and minerals, oil and gas, and renewable energy markets. They do have an active presence in Australia as the owner of the Port Pirie Lead Smelter and the Hobart Zinc Smelter, and also through their Puma Energy and Impala Terminals businesses. The Trafigura facilities comprise a U.S. $24 million loan note advance, which is the equivalent of around AUD 36 million today, as well as an AUD 65 million environmental bond facility. The loan note will provide liquidity to fund Federation and Great Cobar, whilst the environmental bond facility will replace Aurelia's existing bonding facility.
Both of these facilities have a term of four years from financial close. As you can see, the interest rates on these facilities are highly competitive, with the loan note rate set at the U.S. dollar benchmark plus 6%, and the bonding facility at a straight 6% rate. Pleasingly, there are no establishment fees payable on these facilities. Prepayments on the loan note and the cash backing of the bonding facility are waived to the second half of the term, which does provide us with the space to get Federation constructed and into production. In addition, there are no financial covenants, no early repayment penalties, and there is no requirement to implement mandatory commodity price hedging. With that said, there is an ability to do it if we choose to.
Alongside these facilities, we've entered into an offtake agreement to deliver a total of 700,000 tons of any combination of copper, lead, and zinc concentrate that's produced from the Peak processing facility. The structure of the offtake agreement does provide us the flexibility to optimize the sequence of the various concentrates that Peak can produce, and that is advantageous rather than needing to preferentially treat one type of ore to meet offtake requirements. The terms of the offtake agreement are linked to common benchmarks. Finally, as part of the overall package with Trafigura, they'll be issued 120 million Aurelia warrants, with a strike price of AUD 0.25. As we all know, that is well above the levels that we're currently trading at. The warrants also have an expiry term of four years from issue.
One of the conditions precedent to drawing down on the Trafigura facilities is the requirement for a minimum equity raise of AUD 40 million, which is aligned with what we've announced today. The raise is fully underwritten and comprises an AUD 10 million institutional placement and an AUD 30 million entitlement offer. If you refer to slide 31 and 32 of the presentation, we've outlined the key terms of the raising and the timetable, which, at completion, runs through to early July, which will then enable us to draw down on the Trafigura facilities. I'll just turn now to slide 14. Whilst I've discussed most of the financing facilities and the equity raise in these tables, I'll just point out a couple of other points to note.
Firstly, when we reach financial close, we'll repay the term loan facility and replace the performance bond facility. That will release the AUD 46 million of cash that's held as restricted cash against the guarantee facility. That is an important part of our funding sources that we've been able to unlock. The primary use of these financing facilities is to fund construction of Federation. As you'll recall, in April, we disclosed capital to first stope ore of AUD 76 million and a total capital budget of AUD 143 million. We're showing capital of AUD 108 million in this table. That's the amount we used for debt sizing, which is when we considered Federation to reach commercial production. That is expected to occur early in calendar year 2025.
To give you a sense of what that milestone is, it's where the operation is covering its own operating costs and is producing at a rate of around 20,000 tons per month. As we know, that's roughly the amount that will fill the spare capacity in the mill at Peak. The remaining cash in the table, along with operating cash flow, will then fund the remaining capital for Federation and in due course, Great Cobar. Just to quickly touch on slide 15, again, I've talked to a lot of the information on this slide already, but the key takeaway I want to leave you is that we've reset the balance sheet now with over AUD 110 million of net cash on a pro forma basis, and additional liquidity available from the loan note.
The flexibility in the loan note means we don't need to draw that down at financial close, and we can leave that undrawn until we need it, and the advantage there is we'll save on interest costs. In summary, this is an exciting milestone for Aurelia, with the business now fully funded and enables us to restart development of Federation. There are many people who've played a key role into this point, and a number of them are on the call this morning, both from the team at Aurelia and also from our advisors. Whilst there are too many of you to name individually, I'd just like to personally send my thanks to you all for the tireless efforts to get us to this point today. Thank you for your time this morning. I'll now hand back to Andrew.
Thanks, Martin, and as I mentioned, I certainly concur with Martin's sentiments. This is an exciting moment for the business, and certainly extend my own thanks to the large group of people who are involved in getting us to this place. I will turn today to slide 22 for those following along, just to talk a little bit about where the business is up to, and the plan from here. Then we'll talk a bit about the quarterly performance on the quarter to date, to help you think about investment in the business. Firstly, on slide 22, just on timelines, there's two key elements that we'll initiate. One of those we'll initiate today, one's already going. I'll talk through that.
We have been talking through Peter Trout, our COO, to Redpath, who is our mining contractor, who will be involved in the development of Federation. Those who were involved last year will know that they began work. We've put photos up previously, but if you do go to site, it effectively, for all intents and purposes, looks like a mine site. There's plenty of area cleared, which will ultimately become stockpile areas and crushes and those sorts of things. There's a change house, there's a workshop, there's a box cut, and there's a decline, which goes down about 90 meters already. We have kept that decline dry throughout.
There was a bit of rain earlier in the year, which did put a bit of water down there, but we have been pumping it out to ensure that when we are ready to go, it's a very quick restart. The conversations with Redpath will then ramp up from today. They've already been thinking about which equipment they have available to remobilize to the site and already started thinking about people. Probably people and manning up what we need to develop the site will be the critical path to being able to get back underground and get back developing. The intent is to work that through June and into July until we're back there at the phase. The other activities that are ongoing is in relation to secondary approvals.
You'll recall earlier this year, we announced Development Consent for the Federation project, which we did secure at the end of March, which does allow us to really move forward and deliver what we expect to be delivering according to that schedule on slide 22. A few additional activities ongoing. We have, and we are in the process of securing a mining lease over the area. Becomes quite a procedural activity once Development Consent is there, we're active on that. The other area we're putting a lot of energy into is the development and management plans, which are required under Development Consent. Some of those just need to be developed, and others submitted to various government departments. Others of those require approval from the government department.
We're obviously running three mines already in New South Wales, two at the moment, we know what needs to be in those management plans, and we are putting them together to be specific to the Federation site. The third area, which is active, is conversations with local councils around Voluntary Planning Agreements, those conversations are well advanced. We don't expect permitting to get in the way of the timeframes that we've outlined here. Really critical path is around remobilization of Redpath and then underground development. I'll switch over to slide 25 just to talk through where we find ourselves. You'll remember this slide if you followed along our March quarterly, which is really what we had achieved to date. Obviously a much, much improved quarter in March, which allowed us to maintain guidance.
At this stage, you know, we continue to maintain full year guidance as provided in December. Turn the charts here, you'll see that, you know, come the end of March, we were well advanced on achieving our target in gold, and well above sort of run rate and well placed in relation to base metals. Also our ore is sustaining. It's come back to a level that made us comfortable in achieving that guidance. We do quarterly forecasting here, and based on the quarterly forecast for Q4, we don't see any reason to change the guidance that we previously provided. A few things have impacted the quarter, which were fully expected and factored into that forecasting.
The first of those, obviously, we talked about previously, in putting in the man riding cage, the conveyance at Peak, which did push us out of South Mine for a short period. We were able to relocate the people to North Mine to maintain some continuity of production. The other thing which we've also talked about is we did a reline of the SAG mill at Peak early in April, which did impact production over April, but that was factored into that Q4 forecast that I previously mentioned. The last thing to flag, again, well, true and truly telegraphed, is we took Hera to care and maintenance through April.
That was delivered on budget and on time, which, you know, the team down there at Hera have done an excellent job of delivering through that project, or through that mine over the remainder of its life when we changed that mine plan in December. Similarly, they've again delivered in taking that site to care and maintenance. I'll just touch on a few things that we've got ongoing. I've mentioned already in relation to Federation, the remobilization. At Peak, you know, we've been working extremely well over the last few months in relation to the Working Smarter program, has delivered benefits, although at Peak we are looking at additional interventions we can take in the site to improve productivity and reduce costs.
Recognizing that Peak becomes core to the business going forward, irrespective, of when, ultimately, it's, the integration with Federation Mine means Peak, particularly through the plant, is very critical. The other piece of work we're doing is just thinking through the optimization across Cobar. Ultimately, we'll have the Peak Mines, we'll have the Federation Mine, we'll have a processing plant, with multiple capabilities at Peak and also additional processing capacity at Hera. We're just thinking about how do we optimize what we have in that region, going forward? That piece of work will be done. It started, but it'll work through the first quarter of the next financial year. Finally, just to touch on Dargues, this pack does suggest a mine life of about a year and a half.
That's based on the latest drilling and also, our view of costs and gold price going forward. Now, I think it's fair for people to base their expectations on Dargues continuing for about a year and a half. Although we are still doing some work around remnant mining areas up in the shallow areas, just thinking about what they may do for us. There's still some work ongoing. You know, Dargues isn't what the company believes it was at the time of the acquisition, and we're not seeing a huge amount of extension there, within the existing mine, albeit it's a very prospective piece of ground, and we do have a very large tenure package around Dargues that we are contemplating at the moment.
I'll pull up there in relation to talking through the funding for the business. Reiterate again, Martin's view that this is an important day for the business and a very good day as far as giving us certainty to move forward. The other change that was announced today is obviously a new MD and CEO, Bryan Quinn. I'm going to hand over at the moment to Peter Botten, our Chair, just to talk about that.
Thanks, Andrew. Thanks, Martin, and thank you everybody who's on this call. We have range of circumstances. I have to disappear relatively soon to go and chair another company, AGM. I would like to say, firstly, and reiterate, what our management team has said, that this is a really significant day for Aurelia. In our view, it resets the company and provides a really strong platform to rebuild the organization and build value in the company in a predictable and accessible way. That's not been the case over the last 12 months or so, and you've seen significant changes to management, which were required.
You've also seen the necessity to formulate a comprehensive, competitive finance package, which I'd say allows us now to move forward with the development of our Tier One assets at Federation and Great Cobar. With that comes a change in leadership at the top, and it follows a very comprehensive review process and recruitment process which came down to two very good candidates who could fill that role as CEO of the company and lead us into our next iteration as a company. The board finally chose Bryan Quinn to fulfill the role of Managing Director and Chief Executive.
Bryan joins from joins Aurelia from OZ Minerals, where he led the growth strategy, exploration, and sales marketing businesses over the last 12 months and was seen as a potential successor for the CEO there. Prior to this, Bryan spent more than 27 years at BHP, where he had a range of responsibilities. He's had a series of senior executive roles, operational business improvement functions, and included President Joint Ventures Americas, Africa, Global Chief Technical Functions, and various asset presidents. He comes with enormous experience in driving improvement in the business, project development, and successful delivery of significant major new developments as part of his portfolio.
He will be joining the company on the 6th of June, which will allow us to very rapidly rebuild and build on this platform of strong balance sheet and availability of funds to drive Federation in its next phase of development. On behalf of the board, I'd sincerely would like to thank Andrew Graham, who was an outstanding candidate to become CEO, for his real commitment and dedication, and leadership over the last 12 months or so. Andrew's done an outstanding job in revitalizing the organization, and with Martin going through the process of significant and complex refinancing, which is not an easy task, as well as significantly improving the predictability of our operations.
Andrew's done, with Martin, an outstanding job in taking us to where we are today. With our risk management seeing a competitive, flexible financing package now in place, we're really well positioned to deliver on our value-adding growth trajectory. This represents really a pivot point for the company, and we look forward to providing our shareholders with the reliable value enhancement, which this platform now give us. As I say, I'd like to also thank all the people that have been involved, and there is a big team of Aurelia people in terms of legal and advisory support to bring us to today. I especially thank Andrew for his efforts in leading the organization over the last 12 months.
We now move on with Bryan's leadership and and input and look forward to delivering value for our shareholders that really has been missing as we've turned around the company over the last 12, 18 months. Andrew, back to you. Unfortunately, I'm gonna have to step away to go and chair this other AGM. If there are any questions, I'm sure Paul Harris can help in answering those. Alternatively, I'm very happy to get to individual shareholders later on in the day when I've finished this other commitment.
Good. Thanks, Peter. Look, as Peter flagged, this will most likely, barring anything going majorly wrong, be my last investor call as interim CEO. I thought I'd take the chance to thank everyone for their support over this time. Support's come in a whole lot of different ways, from inside the business and also outside. It's supported us getting to the position we are today. If I cast my mind back to my first presentation at the AGM in November last year, I think I committed to three priorities at that time. One was safety, and obviously we were going through a very tumultuous period as a business, with a lot of change, and I knew there was a lot of change to come, which is, you know, safety should always be the priority.
I knew that was a time that we really had to focus on ensuring that people weren't distracted by what was going on in the business. I am extremely pleased to be able to say that we're five months recordable injury-free, so all of calendar year 23, recordable injury-free, which means a lot to me, because it means that every day our people are going home, in a fit state to enjoy life outside of work. You know, it's really a good, and I think it's a really good achievement, which is really not to do with me. It's to do with the fact that every single person turns up to work, looks after their safety, but also looks after the safety of their workmates. The second item we committed to, you know, I committed to, was operational delivery.
Clearly, in November last year, things were not going well from the point of view of cashflow and operational stability in that period. This, I think, the March quarter really speaks to it. We very quickly returned the business to cashflow. That included some pretty difficult decisions, like taking Hera to care and maintenance. You know, I knew in making that decision that it would impact the lives of all of the people who worked on that site. Those are the sort of tough decisions we had to make to ensure the ongoing strength of the business going forward. It's certainly pleasing to have seen that turnaround through the last quarter. We hope to be able to show you similar kind of results through this current quarter.
The final thing I committed to was funding Federation, unfortunately, it's taken until the end of May to be able to tell you that's the case. I know we had previously tried to be done by the end of March, as Martin has talked to. In order to get the package that we wanted in place, it was worth taking that extra time. I suppose the, this earlier point around operational delivery and the fact that we took the business back to stability allowed us that ability to leverage that position and end up with a better overall outcome on the funding than would otherwise be the case. I'm proud to say that we did exactly as promised at that AGM.
We returned the business to a stable footing. Through the funding package today, we unlock what should be a really bright future for Aurelia as a base metals mining company. I'm going to pause at that point and open the floor to questions.
Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. If you wish to cancel your request, please press star two. If you're on a speakerphone, please pick up the handset to ask your question. Once again, that is star one to ask a question. We'll now pause a moment to allow for any questions to register. Thank you. Your first question comes from Michael Evans from Macquarie Capital. Please go ahead.
Good morning, Andy and team. Thanks very much for the update. A couple of questions, Andy, and I apologize. I haven't read the whole presentation, so if it's in there, apologies. Just on, Great Cobar, I mean, it's a great resource, and clearly the ambition there is to fund it out of cash flow, can you just remind us what the plan is there in terms of, there was a feasibility study done, I think, in January last year. How relevant is that? I mean, there's been a, obviously some changes in the plans at Federation since early last year. So is that feasibility study that was done in January last year sort of still relevant, you know, plus some cost escalation, or is it a different plan?
It talks about getting that Peak plant to 800,000 tons per annum. Is that still realistic at some point in time over the next few years? That's the first question, long-winded. The second question, just on the offtake, how does it tie into, c an you just remind me what your existing offtake agreements are, and how does that tie into any existing offtake agreements? How does that play into Federation or how, what Federation or might potentially go to Hera versus Peak? Thanks, Andy.
Thanks for your questions, Michael. Always good for a question, which is good. Helps that nervous pause that otherwise occurs. Look, I'll answer the first one. I'll get Martin to talk to the second one about offtake. Great Cobar, ultimately, the design that was part of the pre-feasibility that went out previously is still absolutely relevant. Great Cobar, about a kilometer north of the existing development. The intent is to push to parallel declines across there, put in a vent shaft and move away. You know, conceptually, there's not a whole lot to it. We're not building a plant. We're not seeking to do anything indifferent. It's within the footprint of Peak. That said, the intent and the plan is to do a feasibility study on that at the early part of the next financial year.
Part of the reasons are, as you mentioned, the world's a little bit different. Inflation certainly pushed on costs a bit. The other piece is we want to make sure that we are going about it the right way. For example, some exploration potential on the way to Great Cobar. Are we putting those, that development in the right place to be able to access those, should they turn into something? There's a bit of work we want to do in that space. You know, I think people can assume that the pre-feasibility that went out previously is still a fair reflection of how that will be developed.
One thing that has probably changed, and we talked about it earlier when we talked about Federation, is timing for Great Cobar and how that they integrate. It'll continue to be an active piece as we work through life and mine plans. The reality when you look at Federation, super high NSR material, like it makes sense to mine that material and get it into a plant. You mentioned the 800,000 ton capacity of Peak. We are only targeting about 550,000 tons a year of that at the moment.
Which means when we do get early ore out of Federation and the beauty of having Development Consent, we can move quite quickly to getting our first production, is that all will go up the road to Peak, and we have the capacity then within that plant to treat that ore and turn it into valuable products. It does then create... I sort of talked about there's a lever on Great Cobar as to when we choose to do that. Our current planning has us doing that midway through 2025. It'll probably, and it is a bit fluid in that, if Todd and our exploration team have some success in Peak of further high value ore, like we're currently mining at Peak, it can allow us the chance to potentially push Great Cobar back.
The other bit that may change in that time is the market. Obviously, the, you know, the copper price is a little bit depressed at the moment, but I think as people realize that the world is very, very short of copper, we may see that price rise, and it may want us to get across there to Great Cobar sooner. We do have some optionality in that. As we mentioned at the outset, it's fully funded, you know, modeling based on cash flow from the business and the funding package we're putting in today. I'll throw across now to Martin.
Just, Andy, can I?
Sorry, Mike. Yep.
If you fast forward three years, and you've got 800,000 tons of ore going through Peak, where does that come from? Like, does it come two-thirds from Federation and one-third Great Cobar, or the other way around?
Other way around.
Yeah.
At the moment, you know, we're permitted to take 200,000 tons up the road to Peak.
Yeah.
We have assumed that it ends up a little bit higher than that. We'll have to have conversations with the regulators about that, obviously, and work through process. We had looked at options of backhaul copper, for example, down to Hera. The issue there, a good problem to have, is that the Great Cobar has very substantial gold. You wanna know you're gonna get good recovery out of that material. There's a bit of work we'll do through the next financial year, in the early part of that financial year, just around how we optimize Cobar. I mentioned a little bit earlier.
You know, there is latent capacity within Peak in certain parts, which requires capital to unlock, and it's that classic problem of investing money in a certain piece to move the bottleneck, and try to understand those bottlenecks and what sort of investments are required and what the optimum kind of solution is. That's a bit of work to be done. What we're holding up at the moment is at 200,000-250,000 tons a year up the road from Federation to Peak, supplementing Peak feed. Peak feed at the moment is from the existing mines, particularly South Mine, a bit coming out of North Mine, largely on copper. Great Cobar comes on, it'll take over that lion's share of the Peak feed.
Okay.
The rest will go, of Federation, then goes into a restarted Hera, and the plan was to restart Hera in about two years time.
Okay. Just so I'm clear on timing, if, if you mentioned you did some more feasibility work on Great Cobar, assuming that goes well, you expect to have a jumbo back in that development drive by Christmas or something like that?
No. When I talk about two years to Great Cobar, or around 2025, that is to start development.
Yeah, okay. Okay. 2025.
Yeah.
Got it.
We just don't need it at the moment.
No, no.
We need to fill the plant with the inventory we already have.
Yeah, okay. Right. No, that's clear. Thanks, Andy.
I might just throw to Martin to talk through your second question just about offtake.
Yeah, thanks. Hi, Michael.
Hi, Martin.
To run around the ground. We have existing offtake agreement in place at Dargues, and there's no change to those arrangements. We also have a life of mine offtake agreement in place for material produced through the Hera plant. Again, there's no change to those. What we're talking about here on the offtake is the separated concentrates that get produced out of the Peak process plant. We currently have we've been tendering that offtake on a calendar year basis to date, so that's why you'll note the offtake agreement doesn't start until the first of January next year, is because we have existing offtake agreements in place for the balance of this year.
Just one other thing we have noted in the presentation is, in terms of Federation ore, so the intent obviously is to produce that through Peak and our intention is to deliver that concentrate into Trafigura. I guess we've noted there a different opinion from the offtake partner at Hera around whether they have rights over that material. What I do want to stress as part of the offtake is that, you know, the outcome of that decision is not really dependent on this financing. This financing will be able to survive whichever outcome happens in terms of Federation or going through the Peak plant.
Sorry, you've got an existing offtake partner, and Hera's questioning whether they have rights to that material. Is that correct, Martin?
Correct.
Okay. Okay. Okay, that's great. That's excellent. Thanks, Martin. Thanks, Andy.
Thank you. Once again, if you wish to ask a question, please press star on your telephone. There are no further questions at this time. I'll now hand back to Mr. Graham for closing remarks.
Thanks, Ashley. Just to loop back on what we've covered today. As mentioned by a number of people, it's quite a milestone day for the business, and it allows us to move forward with Federation, fully funded, and take that through to production. At the same time, on projections, it allows us to develop what we have in Great Cobar. Both of those, Federation and Great Cobar, are very high-grade basement projects. Mine development projects utilizing the existing infrastructure within the business, and therefore of substantial value. And we're pretty excited as a business to be able to then do that transition into being a material base metal producer. Very pleased to have Trafigura on board, the financing package and the offtake package.
It's good to be working with, you know, one of the world's big trading companies, and I think it's probably an implicit endorsement in what we're doing and the projects we've got. Certainly, as Peter Botten mentioned, if you have any questions, feel free to reach out, and we'll be in touch, as time plays out with updates around the funding. Thank you.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.