Thanks, Myles. Good morning, and welcome to the Evolution Mining December twenty nineteen Quarterly Conference Call. This morning on the call, have Jake Klein, Executive Chairman Laurie Conway, CFO and Finance Director Bob Fulker, COO and Glen Masterman, VP Discovery and Business Development. As the New Year gets underway, it continues to be a great time to be a gold miner. In 2019, U.
S. Dollar gold price had its best year since 2010, posting a 19% rally, which resulted in global generalist investors beginning to weigh back in the gold stocks. This renewed interest was reflected in the strong performance of The U. S. Listed Van Eck Gold Miners Index, which was up around 40% for the year.
In addition, the highly anticipated wave of M and A in the gold sector finally materialized with seven deals announced in just the final two months of last year and in the process significantly changing the profile of many of the companies involved. As is the case with Evolution's acquisition of the high grade long life Red Lake Gold Complex in Ontario, Canada. We're looking forward to catching up with investors over the next month with marketing in Sydney and Melbourne post today's results. Investor meetings in Sydney post our financials on February 12, a London road show in mid February and conferences in Sydney, Zurich and Florida in the February. Thank you, and I'll hand you over to Jake.
Thanks, Brian, and good morning, everyone, and thank you for taking the time to join us on the call today. We do know it's a busy day, and we really appreciate it. It is appropriate to start with an acknowledgment of the devastation the bushfires have caused right across Australia and the recognition of the fantastic work the firefighters are doing, many of whom are volunteers, and I'm proud also includes a number of Evolution employees. To support these efforts, earlier this month, we announced that we have provided $3,000,000 in funding to Rural Aid Australia, the New South Wales Rural Fire Service and Queensland Rural Fire Service to support the bushfire, drought relief and recovery efforts. Our thoughts are with all those impacted by these terrible events.
Turning to evolution in our gold business. Fundamentally and at its core, it is about discovering and producing ounces safely and efficiently and converting gold in the ground into dollars in the bank. On this front, we have done well this quarter. The benefits of having a portfolio of assets is reflected in the fact that despite the headwinds we faced at Mt. Carlton, we generated net mine cash flow of $144,000,000 and group free cash flow of $84,000,000 which remains sector leading.
We ended the quarter with $170,000,000 in the bank and are debt free. In late November, we announced the acquisition of the Red Lake mine, and we are on track to close the transaction around the March. It is a classic turnaround opportunity, a mine that has been undercapitalized over the last several years and is currently operating in a hand to mouth fashion. Whilst we think the effort and change required will be significant, and as we said when we announced the transaction, the turnaround could take up to three years, we are very confident that this will be a cornerstone asset for Evolution's future. New mines have been terrific to deal with and have been very engaged and supportive of making the transition of ownership as seamless as possible.
Importantly, on the ground at Red Lake, there is a large number of very talented people who are motivated and committed to restoring Red Lake to an efficient, well capitalized, low cost mine. Over the last few weeks, we have had a number of people on the ground and their enthusiasm about the potential of the operation is palpable. Red Lake has a significant gold inventory of over 6,000,000 ounces of high grade gold in resources and the exploration upside is significant. Cowal continues to go from strength to strength. The exploration results are exceeding our most wildly optimistic expectations we had when we acquired this amazing asset in 2015.
The Board has approved the commencement of a pre feasibility study for an underground mine that we expect will result in a maiden reserve being declared in this calendar year. Mungari has had an impressive turnaround and is both operating consistently and it also has encouraging exploration momentum that Glen will detail. The net mine cash flow that Mungari delivered for the first six months year to date is more than it delivered for the twelve months in each of FY 'eighteen and FY 'nineteen. Whilst over the previous four years, Mt Carlton has delivered a very impressive $390,000,000 of net mine cash flow, as outlined in our release to the ASX on the January 10, it is confronting headwinds due to revisions in our interpretation of the ore body based on more recent drill results and the operation at a per quarter and is now expected to produce between 70,075 ounces this year. The recovery to the Mt Rawdon Wall Slip is on plan and Cracker continues to be a reliable producer.
Ernest Henry continues to be a powerhouse of cash generation with net mine cash flow of almost $63,000,000 We are very pleased that the drilling program to test the extensions below the RL1200 has begun. We at Evolution are excited about the future. We welcome Fiona Murphid as our new General Manager Sustainability. The exploration and turnaround opportunity of Red Lake is enormous. The commencement of the underground mine design study at Cowal Herald is a new chapter at our cornerstone asset.
The drilling to extend the mine life at Ernest Henry is underway and our diversified portfolio continues to generate sector leading cash flow. With that, I'll hand over to Bob.
Thanks, Jake, and good morning, everyone. It's pleasing to start my quarterly comments with a positive from a safety perspective. The behavior safety programs, which are continuing at all sites, are yielding good results with the drift decreasing from 9.3 to 8.4 over the quarter. From a production and cost perspective, the December, the group produced 171,000 ounces at an all in sustaining cost of $10.69 dollars an ounce. This resulted in a group mine operating cash flow of $233,000,000 and net mine cash flow of 144,000,000 If we turn to Page six for the Cowal and Mungari results.
Cowal delivered 65,000 ounces at an all in sustaining cost of $898 an ounce and a mine operating cash flow of $95,900,000 while net mine cash flow remained solid at CAD51.9 million. Highlights at Cowal for the quarter were no recordable injuries, reducing their drift to CAD4.5 million, Laragha decline completed in the bulk sample extracted for test work and 22,000 meters of drilling in the GRE46 and the Dalwhinnie zones, which continues to indicate significant potential to grow the 1,400,000 underground resource. With the current Stage three water restrictions in the region, the Cowal team been working over the last twelve months on a strategy to eliminate the reliance on surface water. We have made significant progress in this strategy with the following works: commence the installation of a second pipeline across Lake Cowal to increase our pumping capacity by 30%. This will allow us to pump 100 of our mine water requirements from the current and future silane resources, the Bland Creek Paleo Channel and the freshwater from the Jemalongweer.
This project is well underway with the pipe installation expected to be completed this month and full usage during the March. The commissioning of the additional three bores in the Eastern Silane bore field is expected in the March. And testing of the second Silane bore field will commence in the March. These would be expected to be commissioned in the September subject to testing of the water resources, quality and quantity. Our third saline bore field has also been identified for assessment to further derisk the water supply.
Of note, less than 20% of Cowal's total water daily water requirements is currently reliant on surface water, which is at risk of being impacted by further water restrictions. With the program outlined above, we are confident there is sufficient water supply to meet the Cowal's ongoing water requirements with no material impact on operating cost or recoveries. Mungari delivered just shy of 33,000 ounces at an all in sustaining cost of $13.44 dollars an ounce and a mine operating cash flow of $30,400,000 Mungari's net mine cash flow increased by $8,600,000 against the September with similar levels of production continued sorry, similar levels of production and continued its quarter on quarter financial improvements. Frogsveig Underground delivered 116,000 tonnes of ore and the Boomer access development continues on schedule, advancing 100 meters towards the mineralized zone. Plant throughput was again above plan with an annualized rate nearing 2,000,000 tonnes per annum.
We have commenced work to identify what the Mungari processing plant's natural limits are through the use of data, and further studies have commenced to assess optimizing mining and sustaining processing rates above the 2,000,000 tonnes and assessing our rate up to 2,500,000 tonnes. Cutters Ridge Road construction also commenced late in the quarter, which will unlock further opportunities in the North. If we turn to Page seven for the Mt Tartan and Mt Rawdon results. Mt Tartan delivered just shy of 10,000 ounces at an all in sustaining cost of $2,182 an ounce due to the issues that we've outlined, mainly the main hydrothermal breccia zone, which makes up the bulk of the mineralization in the V2 pit, has tapered to a series of narrow, higher grade feeder structures at shallower depths than anticipated. The underground mineral resource model has also been affected with similar geological interpretations applied to it.
Mt Tartan was scheduled to produce significantly higher ounces in the June from both V2 and the underground, which is why guidance for the Mt Tartan has been adjusted to between 70,075 ounces at an all in sustaining cost of $11.50 dollars to $12.25 dollars per ounce. On a positive, underground development has progressed well through the quarter and the East Lode was encountered when expected in early January twenty twenty. Underground development continues and stoping is planned to begin in the June. Crush Creek drilling is expected also to commence during the June. Mt Rawdon produced just over 20,000 ounces at an all in sustaining cost of $18.15 dollars an ounce, with a mine operating cash flow of AUD13.9 million and a net mine cash flow of AUD9.1 million.
Pleasingly, the increased attention on safety is paying off with a reduction of TRIF from AUD12.2 in the September to AUD8.9 last quarter. The Westwall stabilization project outlined in the September report to remediate the area of the pit impacted by the Westwall slip is on track and material movements are in line with plan. Costs are expected to reduce as access to higher grade ore in the pit floor is regained during the June. If you turn to Page eight for Cracow and Oona Tinrin. Cracow continues its consistent performance producing just over 20,000 ounces at an all in sustaining cost of $12.84 dollars an ounce and a mine operating cash flow of $23,000,000 Improvements in the processing plant have led to a quarterly saving in excess of $120,000 and ongoing increase in recovery.
Ernest Henry again made a significant contribution to the group producing 23,000 ounces at a negative all in sustaining cost of $526 an ounce, generating a net mine cash flow of $62,700,000 Drilling commenced below the 1,200 RL with 10 holes completed for 4,400 meters. Good progress is being made at Red Lake from an operational perspective. The interim mine plan to allow us to revitalize the operation and to start the transition to sustainable production includes accelerating capital development to 1,000 or at least 1,000 meters per month, while ceasing development in non core zones. Finalizing plans and ordering new mine equipment to increase capacity and production efficiencies. Equipment would be expected to be commissioned in the FY 'twenty '1 year.
The potential to decommission two shafts to reduce operating and maintenance costs and completing major maintenance on the Campbell mill to improve reliability and utilization. We'll update again when the transition closes. In summary, our focus remains on improving our safety performance whilst delivering to guidance, counts and costs. Looking forward, the building blocks are in place at Cowal, Ernest Henry, Mungari, Krakow for a successful year. And Mt Rawdon is back on track with a material movement in line with a plan to deliver the West ramp cutback and ounces for FY 'twenty.
Red Lake is a great acquisition with enormous potential. The workforce are motivated and skilled, and I'm looking forward to working with the site team in future quarters to deliver another production pillar for Evolution. With that, I'd like to hand it over to Graham.
Thank you, Bob, and good morning, everyone. Significant progress at Cowal was achieved across surface extension and underground infill drilling programs last quarter. Our extensional drilling continued to expand the mineralized footprint in the south of the GRE46 Delweeny Complex. Results reported from Hole 544B this morning, which includes seven meters grading at 124.7 grams per tonne, were drilled in and around the 348 Zone as shown in Figure one on Page 13 of this morning's report. The identification of this new zone of mineralization on the Dalwhinnie position has revealed wide intervals of impressive grades, which we believe will deliver a significant expansion of the mineral resource when the results are incorporated in re estimation of the underground block model.
Extraction of the underground bulk sample occurred from the nine eighty five level drive with ore processed through the Cowal plant as a low percentage blend during the December. Detailed monitoring of metallurgical performance was completed on the underground ore blend with no noticeable impact on recoveries when matched against a slight increase in mill head grade. Mapping of underground exposures in the 1057 And 985 Level Drives has confirmed the strong south to southeast plunging nature of the GRE46 minuteeralization, which has been previously identified and incorporated in our geological model of the underground mineralization. These observations validate our decision to complete level drives east of the exploration decline to establish the most advantageous drilling positions for the infill program at JRE46 Delwini. Drilling orientations can now be optimized from southeast to northwest in order to capture data that will more accurately model grade distribution for current and future mineral resource estimates.
At Mungari, an access drive was initiated from the Frog's Leg decline and has advanced 100 meters towards the Booma laminated high grade vein. We expect to be able to be drilling Booma from footwall drill cuttings in the June. Results of the close spaced grade control program will allow us to develop a detailed block model estimate for a small section of the Boomer vein. The purpose of this is to determine how best to model the high grade nuggety nature of the gold mineralization. We will also evaluate reconciliation of production from the same area against the gold predicted in the grade controlled model.
Results provided this morning continue to confirm our interpretation that the mineralization will be a small sized resource opportunity. However, the discovery of mineralization in this area has changed our original understanding of the structural architecture in the Mungari camp. We now interpret the Booma structure to be a continuation of the Streslecki Shear Zone hosting a Raleigh complex on the East Kundana joint venture further north. The change in our understanding of the geology means that the Streslecki structure is in a different position as it tracks out onto our Mungari tenements. As a result, there is a one kilometer long gap of untested strike length along this structure that is prospective for high grade laminated veins.
We expect to be drilling to close this data gap over the next couple of quarters. Last week, I returned from Red Lake following a week on-site and came away very pleased with what I saw and experienced. Firstly, there is a talented team of enthusiastic and high quality technical explorers who are very keen to get on with things. Along with taking the opportunity to enhance my knowledge of the geology and potential of the Red Lake complex, we spent time developing a plan to restart drilling activities when the transaction closes. Immediate priorities are the completion of infill drilling to increase confidence in resource extension targets across Lalor, Red Lake and at Cochina.
This drilling program will support the proposed operating strategy in these areas of the mine. Discovery drilling will focus on identifying more continuous ore bodies with potential for large resource additions. We expect to kick off our drilling campaign with up to five rigs until the June and following that ramping up to eight rigs in FY 'twenty one. Overall, the December delivered more pleasing results from our discovery programs across the group. We expect the Cowal Underground resource to be upgraded and expanded from the December 2018 one point four million ounce inferred resource.
Details of our model updates will be provided in February when we release our annual mineral resource and ore reserve statement. The discovery of the small high grade boomer vein at Mungari has resulted in a reinterpretation of the position of the Streslecki Shear Zone with untested gaps along strike to the north. And finally, we are looking forward to completing our position of the Red Lake Gold Complex, so that we can drive an aggressive drilling strategy in the search for new high grade resources in one of the most prolific Achaean greenstone gold belts on the planet. With that, I'll hand over to Lawrie.
Thank you, Glen, and good morning, everyone. Today, I'll briefly cover off on the financial performance for the December with more detailed analysis of our half year financial performance provided when we release our results next month. A summary of the financials is on Pages ten and eleven of the report. While the operational performance for the quarter was not as good as we wanted to deliver, the quality of the assets and benefits of a diversified portfolio approach was again demonstrated with sustained high levels of cash generation. Some assets delivered lower operating cash, while other assets were continuing their investment in major projects or others experienced some operational difficulties.
A standout was Cowal, where in excess of $50,000,000 of net mine cash flow was delivered from essentially processing stockpile material and after investing over $40,000,000 in major projects. Ernest Henry delivered another exceptional quarter at over $60,000,000 Mungari delivered a third consecutive quarter of increasing cash flow at around 25,000,000 These assets offset the lower performance at Mt Carlton and Mt Rawdon. Overall, we delivered just under $145,000,000 in net mine cash flow, which was the equivalent of $830 per ounce sold and this allowed for us to invest over $70,000,000 of major capital investment for future production. Major capital investment was up $24,000,000 in the quarter. Net cash generated before any M and A or debt servicing was £83,600,000 while net cash increased by just under £80,000,000 for the quarter.
This is the equivalent of approximately $480 per ounce banked in the quarter. This level of cash flow was generated at an achieved gold price of $2,090 per ounce, which is $225 per ounce below the spot price. On the back of the sustained cash generation of the business, we repaid the term loan outstanding balance of $275,000,000 moving us to a debt free position. Turning to our cost position and outlook for the year. For the first half, our AISC was $10.41 dollars per ounce.
This performance is slightly behind plan, but we are on track to meet our guidance of $940 to $990 per ounce. The main drivers to achieving the cost guidance are the production mix, sustaining capital and operating cost profile. Our production in the second half of the year is expected to be similar to the first half, but with a different mix and different grades. Cowal will be around 20,000 ounces lower in the second half as they continue to process stockpiles while waste stripping at Stage H is ongoing. These lower grades will be partially offset by higher tonnes and recovery.
Mungari will have slightly higher production due to higher expected grades, a stockpile buildup from mined tonnes being higher than processed tonnes and lower costs. Mining costs will also be impacted as the development of Cutters Ridge Mine commences and those mining costs are capitalized as major project investment. Grade at Mungari is expected to be around 5% higher. Mt Carlton and Mt Rawdon are expected to have higher production and lower costs, especially in the June as Mt Carlton accesses the underground ore and Mt Rawdon displaces stockpile material with higher grade ore from the pit. Krakow and Ernest Henry are expected to deliver a second half outcome similar to their first half.
Sustaining capital will be $10,000,000 lower in the second half of the year, which should reduce our AISC by $25 to $30 per ounce for the second half. Major capital in the March and June quarters will be similar to the December quarter. All commitments remain in place for the completion of the Red Lake transaction, which will comprise an CAD 100,000,000 five year term line facility and a new CAD 125,000,000 three year performance bond facility. Existing facilities of a $360,000,000 three year revolver and $175,000,000 three year performance bond facility will also be renewed. Lastly, a couple of items which will be incorporated into our half year financial results include, our exploration costs of 17,000,000 to $22,000,000 will be expensed with the majority of this expense relating to Tennant Creek.
And in repaying our debt facility during the quarter, approximately $5,000,000 to $7,000,000 of non cash facility costs will be expensed. I look forward to updating you next month on the half year financial results. With that, I now ask Miles to open the lines for questions.
Thank And your first question today comes from Levi Spry from JPMorgan. Please ask your question, Levi.
Good morning, everyone. Just a couple of questions on timelines on some of the studies and reserve and resource updates that you're working on, particularly at Mungari and Mt. Carlton. So can you just give us an idea of when those pieces of work are due to be finished?
So for Mt Carlton, the updates, Levi, will be in February when we release our mineral resource and reserve statement and likewise for Mungari.
Okay. So and Mungari, will that so what about the studies on feeding the the plant, increasing the plant capacity that Bob outlined there and the drilling that you're only really just starting at Burma and Dalwhinnie, as I understand it?
Dalwhinnie is at Cal, but Burma is at Macquarie. But yes, that will be in the next twelve months in the next MRR update. We're doing the study to look as to whether we can increase. We've already got this plant operating at a sustained rate of 2,000,000 tonnes per annum. And we're looking to see whether it makes sense to move it to 2,500,000 tonnes per annum.
And also the drilling, which Glenn is doing, is certainly giving us enthusiasm and encouragement about the potential of that district.
Your next question comes from the line of David Radcliffe from Global Mining Research. Please ask your question, David.
Thanks. Good morning, Jake and team. So a couple of follow-up ones just on Mungari. The comment about transitioning to Cutters Ridge, is there any read through there to the decision on the White Foil underground?
David, it's Bob speaking. We're doing the drilling in the bottom of the pit for the white foil, and we're just still working through those studies. The transfer or the movement over to Cutters Ridge is actually a planned move just as the white foil pit comes to the bottom of natural limit. Don, do you want to add anything to that?
No, think as you pointed out, we're doing some more infill drilling to close just a few gaps in the underground resource block model for white foil. And along with a fair bit of drilling over at the Booma target to continue delineating the Booma vein as another alternate underground target.
Okay. And then I mean just following up then on Booma. Do you think you're already at the stage there to keep putting underground infrastructure in place while drilling continues? Or do you sort of wait for results? And I'm assuming here you're still sort of thinking about this as an underground.
I'm just trying to think about how quickly it could potentially come into the mill.
David, we're sufficiently encouraged by the results in the drilling to date that we've decided to push a level drive out towards Booma for a couple of reasons. The first is actually to get into a sort of closer position from the footwall from which we can drill a pretty detailed grade control program. And then as we're drilling that, the ramp will continue to advance the vein itself to open it up. The plan really is, I mean, as you can imagine with these high grade laminated veins, they are very nuggety in nature and modeling these can be quite challenging at times. So our intention is to drill a close space pattern of grade control and then compare that with what we extract from when we open up the section of the boomer vein to understand how it's going to reconcile.
So that's the intention at this point in time. And we feel that we've got, as I said, sufficient encouragement to get out there and do this body of work at the moment.
Okay. Then the last bit would be then just with the new interpretation there and the fact that you're seeing a kilometer zone in terms of the strike potential of Puma for the Strelichy.
Is this literally an area where there's
been no historical drilling? Or is there some historical drilling that maybe gives you some insight and some immediate targets to follow-up on?
There's some shallow drilling in this area, but the previous interpretation of the position of the Strazoleki was that it sort of tracked more closely to sort of down along the side of the White Foil Pit, not quite in the White Foil Pit, but pretty close to it. With the I guess, the development on the Boomer Vein itself, what we've understood is that, that Streslaki shear zone has changed direction. So there's some shallow drilling in that area across it. We feel that, that drilling is ineffective, and we need to test a deeper on where we're interpreting the structure to be in order to really understand whether or not we can sort of open up some additional strike length. And I think that's probably, for us, the most exciting piece to this sort of boomer development over the last twelve months or so.
Your
next question comes from Michael Slifirski from Credit I've
got two quickies. First of all, with respect to Red Lake, I want to understand what you see as the greatest challenges, given you've given yourself a fairly long runway to get things in order. So what are the greatest challenges? Is it sort of industrial relations and getting rid of people? Is it sort of environmental stuff?
Or is it simply the sort of lack of investment development and other capital that has to be overcome?
Thanks, Michael. Just before I answer the question, I just want to check that you're okay because it's the first time on a call conference call that you haven't been first off the ranks. So everything okay with you?
We're struggling today with four quarterlies, so thanks for scheduling it that way to keep us busy.
It's a pleasure.
It's just some performance. On Red Lake, I think the biggest challenge has been the underinvestments and the fact that it's a big mine and it really hasn't had the exploration spent on it for some time. It hasn't had the development spent on it for some time. So it's being reset effectively where exploration and we're starting to develop this interim plan that will focus on drilling bigger areas that allow us better source of production without being as spread out as they are and starting to get a sustainable business. The resource is there.
It really requires recapitalization. And there's a very strong recognition on-site that changes need to be made and that the current basis of operating over the last few years is not sustainable. So there's an engaged workforce. The geology is exciting and the opportunity is there. I don't know, Glen or Todd, do you want to
add anything? Before I hand it over to Glen, Michael, from our perspective, everything Jake said with a couple of further on a couple of them, development, we need to get developed stocks ahead of us. But before we can actually get those developed stocks ahead of us, Glen needs to actually properly delineate them and get that grade control drilling to fully develop the mining plan. And to me, it's about getting that consistency of geology with mine planning and metallurgy and getting it all working cohorts together to bring a consolidated plan together. Focusing the mining into areas where we know we can get nice improvements from an effective and efficiency perspective of material movement, focusing the guys on clean mining of the ore body.
They're all going to come with a little bit of time to get there. But really getting that drilled stock, that developed stock and then stoping stock ready to be mined is why it can take a little bit of time because it's been underinvested and we need to get back to be able to deliver consistency.
Michael, really the drilling program is really focused to support the mining priorities at Red Lake, and we've identified the Lower Red Lake and Koshener as areas where we really want to get ahead of the grade control drilling. So that's an area that's been underinvested at Red Lake for a period. The other piece to that is even just some basic resource definition drilling along strike at nine mining areas where the ore bodies have not been closed off. So these are focus areas just in the initial instance that we want to start to kind of commence developing our knowledge base in those areas of the mine. In parallel, what we'd like to achieve is really to identify larger and more continuous and I guess mining friendly geometries on those shear zones.
And so there are a number of targets in the Lower Red Lake and extensions along strike and even up and down Deep at Cochina, where we'll be stepping out and initiating some extensional drilling in parallel with all of our grade control and ResDev.
Terrific. That's very, very helpful. Second question, I guess, is to Bob. On Cowal, the move to saline water, I think in the past, you've said that reagent consumption is low, maintenance is low because of the high quality water that the plant is always operated on. So I know in your commentary earlier, you said that you don't anticipate any significant change in OpEx.
But having previously articulated great condition of the plant and low consumable cost because of good quality water, how do you see the medium term for the plant with a lesser quality water?
To put it into context, we're talking TDSs in the range of 8,000 to 10,000. So it's not what you'd call the same you'd be mining with West Australian or Central Australia from a total dissolved salts perspective. I don't expect us to have significant increases in reagents or costs. Somewhere up above 20,000 to $30,000 you start to see deteriorations. But at that sort of 8,000 to $10,000 which is what the saline level is that we're talking about, we don't really expect to see much difference than where we are now.
And your next question today comes from Daniel Morgan from UBS. Ask your question, Daniel.
Hi, Jake and team. Just a quick follow-up on the water at Cowal. You've just completed a pushback and you're going to be moving towards using stockpiles this year. Just wondering what proportion of the throughput of the stockpiles is going be oxide ore in nature?
Dan.
Off the top of the head, I haven't got the number.
Can we get back to you on that one? Mean, all our forecasts are obviously based on the stockpiles and what we know of them. But we can get back to you on that.
Yes. I guess, maybe taking it more high level, it just comes down to the water consumption. I think there's a water study that Cal has out of a couple of years or so vintage where the oxide ore has greater consumption when it goes through the plants. Just wondering if you can talk on that on how you expect water consumption over the next twelve months to look versus what you've experienced.
So from a high level perspective, we have been seeing increased oxides in the last three to six months from the stockpiles. The model that we have now and the simulation for the water model actually takes into consideration the additional water that's required from an oxide fee perspective. It also takes into consideration that when you put oxides through the mill, you get lower returns from the TSF because of the finance of the oxide when it goes through the processing plant. So all the modeling actually is taking those things into consideration and the return water is probably where you get a bigger hit than the actual consumption water. But when you add those two together, they're being considered.
But I don't have a percentage, sorry.
Vince.
There are no further questions at this time. I'll hand the conference back to the Evolution Mining team for any closing remarks.
Thanks. Thanks, everyone. Recognize it is busy and there's probably lots of calls and reports you need to write. So thanks for your time. Appreciate it.
Look forward to having another call on February 12 when we release our half year accounts. Thanks for attending.