Good day, welcome to the Greatland Resources June quarter 2026 investor call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there'll be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. For operator assistance throughout the call, please press star zero. Finally, I would like to advise all participants that this call is being recorded. Thank you. I'd now like to welcome Shaun Day, Managing Director, to begin the conference. Shaun, over to you.
Thanks, Kevin. Welcome, everyone, thanks for taking the time to dial in on a busy reporting day. I'm pleased to present Greatland's June 2026 quarterly results. Joining me here in the room is Otto Richter, Chief Operating Officer, Monique Connolly, Chief Financial Officer, Rowan Krasnoff, our Chief Development Officer, plus Andrew Bowler, our Head of Investor Relations. Just turning to slide five. Firstly, I'd like to start by pointing out that Greatland's strong operating performance for the full year, FY 2026, having achieved 329,000 oz, we meaningfully beat guidance and did better than AUD 200 below the range for All-In Sustaining Cost guidance. In parallel, we delivered our key growth and drilling programs in line with guidance.
The production and All-In Sustaining Cost outperformance over the year was primarily driven by the confluence of improved productivities across the open pit and the underground mines, greatly improved gold and copper recoveries, along with better-than-budgeted realized copper prices across the year. Now to the June quarter on slide six. We delivered another strong quarter, producing more than 79,000 oz of gold and 3,600 tons of copper. All-In Sustaining Cost came in at just over AUD 2,300 per ounce, which was again below the lower end of our full-year guidance. In the quarter, we sold a little less ounces than produced, with 75,000 oz of gold and 3,500 tons of copper sold. This delivered operating cash flow of AUD 302 million and a cash build of a further AUD 81 million for the quarter.
We closed the year with around AUD 1.3 billion cash in the bank, Greatland remains debt-free, which puts the company in a very robust position. I'll leave Monique to talk in depth, we finalized the execution of the AUD 500 million corporate debt facility during the quarter as well. This provides for around AUD 1.8 billion of liquidity, which importantly, substantially de-risks and provides confidence we can deliver our considerable growth pathway. We announced an exceptional Telfer reserve upgrade at the end of June, which include group reserves now increased to 5 million ounces. This includes a 1.1 million uplift to bring Telfer's reserves to 1.8 million ounces.
The Telfer reserve uplift defined a multiyear Main Dome Underground reserve and secured a multiyear baseload open pit feed, with further growth to come from undertaking studies at West Dome Underground and a potential sublevel cave to open up the vertical stockwork corridor. Our record surge in Telfer drilling continues, and we are increasingly confident of continued growth in reserves and resources. With that, I'll now hand across to Otto to speak to the operations.
Thank you, Shaun. Turning to slide eight, we will now look at the key drivers up for this quarter's strong performance. Looking at the West Dome Open Pit first, the open pit total material mined again saw an increase quarter-on-quarter to 7 million tons. This is our sixth consecutive quarter-on-quarter increase in total material mined since Greatland took ownership and represents a 59% uplift in productivity since the March quarter last year. The continued growth is a result of improved productivity, while also a focus on bench turnover has opened up larger, more productive working fronts. We are now just starting to see the benefit from our investment in the open pit fleet with the new Cat 6060 digger and our refreshed truck fleet improvement equipment availability.
The open pit mill feed grade notched down slightly from 0.49 g to 0.44 g. We saw a higher proportion of our partially costed material or lower grade material being fed directly to the processing plant rather than being stockpiled, which is in line with our mine plan. This result is slightly lower average grades processed, it avoids rehandling costs and has the added advantage of preserving more of our higher grade ROM stockpiles. Stage 7 growth stripping continues with 2.7 million tons waste mined for the quarter at a strip ratio of approximately 2.3 million tons, down again from the 2.7 million tons last quarter. This downward trend is pleasing and is expected to continue as more ore is exposed and ore contribution increases.
The overall strip ratio, design strip ratio, is approximately 1.1, as we've previously announced. The open pit grades reconciled as expected in the quarter, which is a very positive sign that our enhanced grade control system continues to deliver improved reconciliation outcomes. Turning to the Main Dome Underground. Our underground ore mined again exceeded 300,000 tons, in line with our previous quarter's performance. The underground development saw a sixth quarter of record development with 1,945 m, including almost 400 m of growth capital development. The second development drive to West Dome Underground progressed by 240 m and was 92% completed at quarter end. We turn to slide nine, where we can see the processing outcomes for the quarter.
We milled 5.2 million tons at 0.53 g per ton gold head grade, with milled tons up and grade down quarter-on-quarter. The result was a slight decrease in ounces produced compared to the prior quarter. By highlighting, our recoveries were tremendous again. In the September quarter, we achieved the highest quarterly gold recovery at Telfer since 2010, with 88.6% recovery. Pleasingly, we have maintained this strong recovery rate for the fourth straight quarter, with 86.8% recoveries for gold in the June quarter. Our copper recoveries were also strong at 81.5%. Moving on to the stockpiles. This quarter, we processed about a 0.5 million tons of ROM stockpiles, with an estimated 1.4 million tons at 0.68 g per ton remaining at quarter end.
Our total stockpile drawdown of 1.3 million tons for the quarter was broadly consistent to the prior quarter and included the trialing of portions of the historic low-grade stockpiles. The results of these low-grade stockpile trials were broadly as expected and have been incorporated into the FY 2027 processing schedule. We also note that our higher grade stockpiles will be utilized for mill feed blending throughout the remainder of FY 2027. On projects, the TSF8 Stage 4 construction is ongoing and scheduled to complete in the third quarter of FY 2027 and will provide capacity out to the second half of FY 2028. I'll now hand over to Monique to speak to the costs.
Thanks, Otto. As Shaun outlined earlier, we achieved an all-in sustaining cost of AUD 2,312 per ounce for the quarter and AUD 2,179 for the year, delivering a healthy beat to the AUD 2,400-AUD 2,800 ounce guidance range. This is a great outcome driven by strong ounce production, good cost control, and stronger than budgeted copper by-product credits from current copper prices. Our all-in sustaining margin for the quarter was AUD 4,156 ounces, resulting in an all-in sustaining margin of 64%. Looking at the key operating cost items, mining costs of AUD 91 million increased as planned due to higher total material moved.
Processing costs of AUD 71 million were lower than the prior quarter as there was no maintenance shutdown scheduled in the June quarter and due to processing of less Stage 2 material, which requires more reagents and consumables. Sustaining CapEx of AUD 32 million was higher than the previous quarter as planned, due to a gas turbine overhaul in the power plant and increased underground development. Site service cost of AUD 26 million was in line with plan and the previous quarters. Turning to cash flow and finances. We generated revenue of AUD 545 million from sales of 75,000 oz of gold and 3,500 tons of copper. Noting that sales of AUD 20 million were completed in late June, with cash not received until after the quarter ended. Gold sales were achieved at an average realized price of AUD 6,468 per ounce.
This resulted in Telfer's operating cash flow of AUD 302 million and an AUD 81 million cash build, which was after a tax payment of AUD 87 million for the March tax installments. We closed the quarter with AUD 1.3 billion of cash and no debt, having executed the AUD 500 million corporate debt facilities during the quarter. Greatland Resources remains fully exposed to any upside in the gold price with downside protection via gold put options out to June 2027 at an average strike price of AUD 4,650 per ounce. From a tax perspective, I've talked to the AUD 87 million paid in the June quarter for the March tax installments. The June quarter installments of AUD 64 million were paid this month and will now commence monthly installments for FY 2027 with a final catch-up tax payment forecasted for the December quarter of this year.
The value of which is being estimated and will be included in our FY 2026 annual financial report, which will be released next month. Turning to growth capital. As you know, FY 2026 is a significant year of investment at Telfer with a view of multi-year life extension. Our growth capital program at Telfer has progressed well over the year, having been in line with our growth capital and resource and exploration guided spend. At Telfer, we invested AUD 59 million during the June quarter across TSF 8 Stage 4 lift construction, which is scheduled for completion in the second half of FY 2027. West Dome Open Pit Stage 7 growth stripping, underground development across A-Reef, ESC, and West Dome Underground, and the open pit mining fleet renewal program. I'll now hand over to Shaun to speak to our recent reserve upgrade.
Thanks, Monique . I'll take us across to slide 14. Towards the end of the June quarter, we delivered an updated reserve estimate for Telfer, noting that our reserve estimate at Havieron was unchanged. Telfer reserves grew by 1.1 million ounces to achieve 1.8 million ounces. This is an outstanding outcome given we acquired zero reserves at acquisition in December 2024. The Telfer reserve update is based on only the first half of the FY 2026, 240,000 m drilling program, providing the potential for Greatland to continue to deliver inventory growth from the full results of our FY 2026 program and together with our new FY 2027 drill program.
The Telfer reserve upgrade saw group reserves grow to 5 million ounces, representing a doubling of combined Telfer- Havieron reserves in just under 18 months since acquisition. On slide 15, you can see a visualization of where the reserve upgrades sit at Telfer. The reserves outline a multi-year Main Dome Underground reserve and secures a multi-year baseload open pit feed.
Our intention is to continue to grow reserve by infill drilling, noting some 6.1 million ounces of resources sit outside that present reserve. With 3.5 million ounces within that West Dome Open Pit and plus another 2.6 million ounces sitting in the underground across Main Dome, West Dome Underground, and that vertical stockwork corridor. In terms of the underground, we are undertaking studies to deliver growth and convert indicated material into reserves, is also underway at West Dome Underground and for that vertical stockwork corridor. Also of note, and you can see this in the top, right, is the potential to convert 42% more gold from inferred resources that is just treated as waste within that West Dome Open Pit reserve shell, which has the potential to materially reduce strip ratios. If we turn across to slide 16, we can see the new Pinnacles discovery.
This is an exciting development during the quarter that materially enhances the potential of our West Dome Underground project. The Pinnacles program originated from our exploration team, who wanted to test their geological model for the extent of that West Dome Underground structure. The hole, not just the intercepted structure, but for the West Dome Underground, that has returned an intersection of close to 60 m true width at 6.5 g gold and plus 0.1% copper. Importantly, the intersection lies 1.2 km along trend of that West Dome Underground resource and shows good potential for the continuation of mineralization structures between that Pinnacle hole and across to the existing West Dome Underground. The Pinnacles target remains open to the south with follow-up also applied to the north of the West Dome Underground.
Further drilling has been planned to confirm the tenor and extent of the mineralization between the West Dome Underground and the Pinnacles intersection, as well as up to the south. Overall, it is a great indicator of West Dome Underground's potential to genuinely transform the Telfer underground. Now to our guidance, which is captured on slide 18. It is worth pointing out that FY 2027 will be a year in which we begin the execution of our organic growth strategy, underpinned by the full-scale development of Havieron and the early works being undertaken on the West Dome Underground. We will commence investing in both these exciting projects in FY 2027. Of course, we will not receive the benefits of our investment until subsequent years. With the first ore from West Dome Underground presently expected in FY 2028 and the first ore from Havieron through the mill in FY 2029.
Production and operating cash flows from Telfer, along with our really healthy balance sheet, will be important enablers for Greatland delivering growth projects at both Telfer and Havieron concurrently. To this end, we expect to produce 260,000 oz - 310,000 oz at Telfer, for the FY 2027 year at an all-in sustaining cost of between AUD 2,933-AUD 3,330 per ounce. Production is anticipated to be modestly weighted to the second half due to open pit scheduling, whilst also noting that we have a major process, planned shutdown at Telfer during this first quarter.
Production from the open pit and underground mining areas are expected to improve on the levels seen in FY 2026, with the key driver of the reduced production coming from use of lower grade stockpiles, which are replacing the high grade stockpiles that were present in the FY 2026 process feed. The change in year-on-year all-in sustaining costs in FY 2027 are largely a function of the denominator, from the lower gold production, increased open pit total material movements, albeit at more efficient unit rates, and lower copper production along with broader inflationary pressures which you see across the sector. Growth capital at Havieron is guided at AUD 365 million-AUD 435 million, with substantive investment to commence following receipt of the secondary approvals, which we expect to receive in the coming weeks. We continue to anticipate first gold from Havieron in FY 2029 following project commencement.
In terms of Telfer growth capital guidance, it's AUD 315 million-AUD 335 million, which will be split across substantially completing the open fleet pit renewal. As Otto mentioned, we'll bring in another new 6060 [inaudible] digger. Underground development, the majority of which is this early works for West Dome Underground. Paste plant infrastructure. This is specifically for the West Dome Underground, although I know it will be beneficial for Havieron in the future, and power plant upgrades. We're also, of course, doing those studies on the West Dome Underground and the vertical stockwork. We continue to increase tails capacity into FY 2029, and ultimately with a view of being able to join up the TSF7 and TSF8 into a single more efficient structure.
Exploration and resource development spend guidance of AUD 70 million-AUD 80 million builds on just the record drill surge delivered across FY 2026, with more priority being put on infill and resource conversion drilling during 2027. Intended to grow reserve while a healthy amount of drilling remains budgeted for resource growth and extension drilling. Moving to slide 19. As mentioned earlier, FY 2027 represents a saddle year in Greatland's journey, with key investment not yielding the ounce production benefit until subsequent years. Slide 19 outlines Telfer's key investment projects across the year and when the future material benefit of that growth will be delivered. Our spend on open pit fleet is in addition to the investment we made across this past FY 2026 year, which is already achieving benefits in terms of the productivity you're observing with six consecutive quarters of increased productivity.
A majority of underground growth development investment is on West Dome Underground early works, including the commencement of the third drive, which will provide haulage directly into Telfer's existing underground crusher and surface hoist, bringing that West Dome Underground ore potentially through that very efficient existing infrastructure. These early works are intended to accelerate project delivery following the completion of a West Dome Underground study in FY 2027. Subject to the outcome of that study, first development ore from West Dome Underground would be targeted next year. The paste infrastructure will be used both for the West Dome Underground and the belt feeder, where it ties into that Telfer processing plant, will benefit the ultimate paste requirements for Havieron. The TSF lifts we're planning will extend tails dam capacity out to FY 2029. Now, just to conclude on slide 21 before we move to the Q&A format.
The June quarter rounds out an excellent year for Greatland. One in which the team exceeded guidance and added AUD 714 million in cash to the bank to close with AUD 1.3 billion of cash and no debt. The cash balance and ongoing production from Telfer is a robust platform to lever our considerable organic growth pipeline of projects. Greatland's delivered substantial reserve growth, successfully changing the perception of Telfer to one that now supports an extended mine life. In FY 2027 at Telfer, it will be this saddle year for the company in terms of production. Our investments unlock our flagship Havieron project and advance that West Dome Underground, which is expected to deliver significant benefits and growth in subsequent years.
Finally, our record drill spend across FY 2026 delivered outstanding resource and reserve growth, and we look forward to continuing that program into this year as we work to deliver multi-decade integrated Telfer- Havieron gold mining complex. With that, I'll invite Kevin to open up the call for Q&A.
If you wish to ask a question, please press star followed by one on your telephone and wait for your name to be announced. That is star one if you wish to ask a question. Your first question comes from the line of Hugo Nicolaci from Goldman Sachs. Your line is open.
Morning, guys. Thanks for the update this morning. Firstly, just picking up your comments on processing costs and the material step down this quarter, but to the lower consumables from the lower Stage 2 material, but can you just sort of step us through a bit more of the detail there? How much of that's also the lower heap leaching tons and, sort of what you expect or what you factored into the 2027 guidance in terms of processing costs going forward?
Hugo, yeah, thanks for the question. In terms of the processing costs for kind of the year ahead. We've tried to get that balance right. Because we're putting through some more oxide material, there is a little bit more consumable through that mill, some more reagent use. Also kind of reflects the general inflationary environment. That said, in terms of the dump leach, it's kind of an automatic stabilizer for our business. At really high gold prices, we can actually take a bit more ore and put it through the mill. That achieves higher recoveries. At a lower gold price, we can put more of that material onto the dump leach. Still get recoveries, albeit over a longer time. It's all just part of that constant refinement and opportunity we have to optimize the throughput that we have through that processing.
Got it. Thanks. Then just on Havieron, you've got a development spend next year, sort of that AUD 365 million-AUD 435 million, which I think looks broadly in line with the study late last year. Obviously, we've continued to see significant cost inflation, particularly at underground, since that study would've been put together. How are you seeing the overall budget for the project on pre-production spend? Is that bit over AUD 1 billion still the right number from here?
What I can say is year to go has done so far so good. We've been pretty open that it's a June 2025 cost estimate. Clearly, we work in an environment where we're going to be delivering this over three years. There will be some inflationary impact of that, of course. We've been using this time well in terms of progressing a number of the contracting. So far there hasn't been any surprises, so we're pretty pleased in how it's going. We'll continue to monitor that really closely. There's just a huge amount of time and energy and effort being done to try to achieve Havieron well. There's no relax about it. We know it's a significant undertaking, but the team's motivated and engaged.
Great. Then maybe just one for Monique. Looks like some working capital favorable impacts in the quarter there. Just confirming you'd continue to expect your payables to build and that sort of thing as your growth CapEx continues to ramp up from here, and then maybe we see that start to unwind on completion of some of these projects.
Correct. That's exactly right. I think, as we start to ramp up CapEx, you'll see that working capital adjustment move. The other one to look out for is our revenue and what's happening with receivables over the quarter ends as well.
Got it. Last one, if I can, just any comments on your corporate costs? Looks like roughly AUD 35 million in the second half of 2026. Is that the right run rate to sort of AUD 70 million a year going forward?
That does sound a little high. We did have the stamp duty costs coming through, off the back of that acquisition with Telfer and Havieron. I think from a true corporate cost perspective, it's probably more around the AUD 45 million-AUD 50 million mark. Then you've obviously got your exploration costs and some finance costs coming through as well off the back of the debt facility being put in place.
Great. Thanks. I'll pass it on.
Your next question comes from the line of David Radclyffe from Global Mining Research. Your line is open.
Hi, good morning, Shaun and team. My first question is on guidance. You said it's obviously slightly second half weighted. Was wondering if you maybe describe some of the potential levers here, such that the underground contributions are relatively flat. Is there any potential here maybe to pull forward some of the West Dome Underground development? Any other factors we should think about that could potentially flex it, I guess, up or down?
Yeah. Thanks, David. As we said, look, we're a little bit back weighted. That's multifactorial, but the two main factors are just the mining sequence, particularly on that open pit. Then the major shutdown, which is actually presently underway, and I'm pleased to say, more than halfway complete and progressing, in fact, a fraction ahead of schedule. That's really pleasing, because it's good to get these things squared away. In terms of, you talked about kind of the underground, I think you're exactly right. When we think about opportunities in FY 2027, we really think about what we can do around that underground to bring things forward. I don't think that's going to be dramatic, but naturally, we'll be seeking to see what we can do to accelerate that.
I think that West Dome Underground is where there's some slight opportunity to try to break in there and get some development ore and bring that up through the mill this year. I don't want to overstate that. I think it's a reasonably modest volume, but that's the opportunity ahead of us if we can continue to improve the underground productivity rates, which you've seen us do again for six quarters in the year since acquisition. That's the challenge we're setting the team. Can you accelerate that? Of course, that ore from that West Dome Underground is 4+ g high copper. It'd be a really nice sweetener. Again, if that came in, it probably wouldn't be till the June quarter, if at all. I don't want to overemphasize that, David, naturally, those are the kind of things that we'd love to achieve if we can outperform.
Okay. No, thank you. That's clear. Maybe just to push on that a little bit then. When we think about the vertical stockwork corridor and restarting the sublevel cave, obviously the studies sort of weren't complete, that didn't make it to the recent resource reserve upgrade. Is there any color you can provide on how those studies are progressing and when you'd think about releasing that? Hopefully, we don't have to wait for the next annual update. Then, given the surface hoisting capacity, there's still a pretty good gold price, I think most people would think. Why not start the sublevel cave sooner rather than later?
I'll take that one, David. For the [SLC], we currently, because that has to tie into the bottom of the current sublevel cave. We're currently progressing the geotechnical work on that. The resource component of it is mostly done. It's just finalizing the geotechnical work of tying into the existing sublevel cave and making sure that we get that continuous flow of material. Following that, we will then do the mine planning and financial study, we're looking at finishing that study in the FY 2027 year. It sits very close to existing infrastructure, as you would see on the underground slide. The benefit there is, as soon as we get into it, we don't have to install, for example, major capital like our primary ventilation and hoisting capacity because that is already in place.
As you rightly pointed out, we would definitely make use of that existing infrastructure. I do have to point out that the vertical stockwork corridor is narrower than what the original sublevel cave was. We're expecting it to come in at a lower production rate than what the previous sublevel cave did. Combined with the West Dome Underground, it will give us that full capacity or full utilization potential to tie into our existing infrastructure.
If I can just augment on that, David. I just want to point out, look, Otto had significant caving experience out of Newcrest. Obviously, the site itself also ran a very meaningful sublevel cave. Nick, who's joining us on the 5th of October, also comes with a caving background. As far as what I might describe as a mid-cap goes, I think we have some exceptional and unique caving capabilities, which gives us a lot of confidence around this. There's a 6 million tons capacity in there. We're currently using it for about 1 million tons - 1.5 million tons per year.
That is a great opportunity for us to better leverage that infrastructure, the West Dome Underground, the vertical stockwork sublevel cave. Equally, and I think Otto kind of referred to this, we're very measured about how we view the geotech. This is going to be a 1 million tons, maybe 1.5 million tons, possibly 2 million ton, but probably 1.5 million ton, sublevel cave. It's certainly not going to be a return to a 5 million ton kind of sublevel cave.
Okay, thanks. No, that's clear. If I can sneak one more in. There's still obviously a lot of news flow around about strategic metals. I haven't managed to go through the entire quarterly yet. I was wondering, is there any update on O'Callaghans and where you're at and what you're currently thinking?
Yeah, thank you. I'll take this. This is Rowan Krasnoff. Possibly just by way of reminder for those who aren't familiar with O'Callaghans, this is our tungsten deposit that we announced our first Greatland resource estimate for in March. That resource demonstrated the project's scale and quality. It's one of the world's largest high-grade tungsten deposits, and it's 10 km just to the south of Telfer. As you say, look, tungsten is a critical mineral, and the market for it continues to be really strong. Obviously, our business is gold, copper focused, and we have a very substantial development that we're about to commence at Havieron. I don't think you'll see us develop it ourselves, but we are focused on how we can create or realize value from it for our shareholders.
A number of options remain on the table, that ranges from divestments to joint ventures or a spin-out. We have received interest in the asset, we want to ensure anything we do with it optimizes and maximizes value for our shareholders. Fortunately, the strength of our balance sheet allows us to be a bit patient and selective in that regard. I can't be definitive at this stage, but we're working hard on it at the moment and expect things to come together this year.
All right, great. Thank you. I'll pass it on.
Your next question comes to line of Adam Baker from Macquarie. Your line is open.
Morning, Shaun, team. Just a quick question on guidance. It looks like you're pretty comfortable with the stockpile that you've been putting through in the 4Q. I was just wondering, on your breakdown for your mill feed in the 4Q, the FY 2027 guidance. It does appear that 25% of the blend in the 4Q was from stockpiles, with 10% from the higher grade ROM stocks and 15% from the lower grade. Should we expect similar moving forward over the next 12 months? Noting, I guess, if you continue at that run rate, I guess you got around three-quarters worth of high-grade feed remaining.
Yep. Otto here. I'll take that on. We're looking at continuing roughly around that 30% mill feed rate from stockpiles. Albeit, we'll be changing over to the lower grade stockpiles rather than the high-grade stockpiles fed during FY 2026. The underground has a similar feed to what we've had in the Q4, and our open pit will slightly tick up throughput as we progress through the year. Hence, one of the reasons that Shaun pointed out that we are slightly back half-weighted in terms of tonnages.
As the open pit comes through, we end up replacing or displacing any low-grade material from the stockpile. We've got another just over 1 million or just under 2 million tons of the high-grade stockpile still left. The intention of that is to blend that over the year to make sure that we have a stable or a balanced ore feed through the process plant. We'll use that remaining high-grade feed through FY 2027 as well.
I guess from what you saw in the 4 Q, you didn't see any metallurgical challenges putting through the low-grade stuff?
We've run three trials on that low-grade material. Obviously, compared to the large volume, it's still only a sample set. We ran three trials in the Q4 period, and our recoveries were broadly in line with what we were expecting from those, which gave us the confidence being included in the FY 2027 mine plan or processing plan.
Okay. Thank you. Just maybe one for you, Shaun, if I may. Just acknowledge the higher capital expenditure over the next couple of years, but cash levels, AUD 1.3 billion, you've got undrawn AUD 500 million debt facility. Any considerations for capital returns?
Adam has said kind question. We think the best way we can deliver value for shareholders is deliver Havieron, deliver West Dome Underground. I'd like, to David's question, love to deliver the sublevel cave as well. I think if we deliver those three and the cash at bank de-risk and should give market confidence of our ability to do it. I think that's our initial focus. For good order, I'm a dividend kind of guy. If you look at my history at Straits, Sakari, Northern Star, we were big dividend and consistent dividend payers. That is where we'd want to get to. Our goal here is deliver shareholder returns, and we think right now that's delivering the growth.
Okay. Thank you, Shaun.
As a reminder, if you wish to ask a question, please press star followed by one on your telephone and wait for your name to be announced. Your next question comes from the line of Daniel Morgan from Barrenjoey. Your line is open.
Hi, Shaun and team. Excuse me. Very pleasing to see ongoing material movement growth on the open pit. Wondering what you've got embedded in guidance or thinking about for FY 2027. You've done about 26 million tons this year, growing sequentially. What does the next year look like?
Otto here. I'll take that one. If you look at our Q4, we produced about seven million tons TMM out of the open pit. We're expecting the average for FY 2027 to be broadly in line with that with a modest uptick as we progress through the year. In terms of grade, expecting similar to what we had for the FY Q4, around that mid point fours.
Okay, thank you. Maybe just expanding on that. This is a transition year in many respects for the company, but that open pit, you've got a big focus on moving material. How big does the transition for like if you look forward to FY 2028, have we opened up a lot of ore on the open pit so that we can generate more ore, or are we still stripping back?
There's two components to that. As you've seen with our reserve update, we've had a substantial reserve update, but that was only based, as Shaun said, on the first half of our drill program. There's obviously an ongoing draw component that we will include in the plan, and that may affect what our designs look like. At this stage, we're getting a really high +85% conversion of that inferred material over to indicated material. As we've mentioned, our reserve, there's over 40% of our reserve ounces that are currently sitting in that inferred that hasn't been included in the reserve statement. That component we will definitely work towards. As we open up Stage 7, that definitely exposes us to more ore, so we're expecting an uptick in ore.
The next, I guess, big win or big target that we are looking at is with this updated drilling, is to look at the timing of when does that next big cutback of ours start. Certainly an uptick in the ore component, based on raw results, definitely also looking at when do we start that cutback, and that would potentially start in FY 2028.
Okay, thank you. I don't know, Otto, if it's your place to address or if it's Shaun, can you just maybe talk about the demarcation of the roles between COO, Nick Strong coming in and, Otto, you're moving to Chief Technical Officer. What are the different mandates and what's under your coverage and what are you trying to achieve? Thank you.
Daniel, why don't I jump in, just to make it easier for Otto can augment. Otto's just done the outstanding operational outcomes you've seen over the last six months. It's a great credit to Otto, and we're really confident about this quarter. We're really excited about Nick joining the team. Otto's focus is going to be on that long-term life and mine planning. This is bringing on board the West Dome Underground, bringing on board the sublevel cave, the big open pit extensions at West Dome Underground. Perhaps, at least understanding, if not bringing forward, reaccessing the Main Dome Underground, which also potentially is a notch higher grade. We are spoiled for optionality around this site.
The drill program is meant to really bring that optionality forward so we can create flexibility and resilience in our operations. That's the work that Otto will do, he'll effectively be passing that across to Nick, to execute that budget year. I think it's a really important, and I think all the companies I've worked with have had this kind of structure as they've matured. It's a really important integration for us that COO-CTO interface. Otto was a big part of our selection process for Nick. I think they're set up for success there. It's just a very big job for one person to do, we think having the expertise of Otto and the expertise of Nick, I think sets us up for success.
Certainly no shortage of things to look at. Maybe just last question on that. The West Dome Underground, obviously you've had a lot of great exploration results and it's fleshing out as you drill more. When might you expect to give the market a bit more color on what a potential mine plan might look like? Tons, grades, that sort of thing, wrapped up in a study. Is that something that's on the agenda that we can hear about that?
The study is currently progressing well. We're currently expecting to release that study in FY 2027. The main focus in the short term is to make sure that we connect that second drive and give us the ventilation through to the ore body. That will then allow us to step out as well and look at what the full potential of that West Dome area is. The area that's currently being done in the resource is currently going through that planning process, and we're hoping to complete that study by the end of H1 in FY 2027.
Just to briefly add, what's already doing out there underwrites the investment we're putting in, the infrastructure. In terms of your preference there, Daniel, no one's dying of boredom at Greatland just yet.
I'm sure that's not the case. All right. Thank you, Shaun, Otto, and the team for the prospectus.
There are no further questions at this time. I would like to hand back.
Okay. Well, with that, just really want to thank everyone for dialing in. Appreciate it's a busy season. Just delighted with what the team has delivered across FY 2026 and it sets us up for a really pivotal FY 2027, setting up the growth to create multi-year, if not multi-decade, shareholder value. Thanks again.
That does conclude our conference for today. Thank you for participating. You may now all disconnect.