Thanks for standing by everyone, and welcome to the Minerals 260 September 2026 quarterly webcast. I'm Nicholas Read from Read Corporate, and it's my great pleasure to introduce Minerals 260's Managing Director, Luke McFadyen, to lead today's call. On the webcast, Mr. McFadyen will provide a brief overview of the September quarter before opening the floor to online questions. If you would like to ask a question, please click the live Q&A tab located on the right-hand side of the webcast screen. Please note that a recording of this webcast will be available at the same link later today, as well as through Minerals 260's website and social channels. I'll now hand over to Luke to run us through the highlights of the quarterly before we go to questions. Luke, please go ahead.
Good afternoon, everyone, and thanks for joining Minerals 260's first-ever webcast for the September 2026 quarter. As Nick said, I'm Luke McFadyen, the CEO and Managing Director here at Minerals 260. Today, I'm going to go through the quarterly highlights at both the company and the Bullabulling Project itself, and then I'll take questions that were submitted just before this call, and then live from the call itself. Well, this was another pivotal quarter for Minerals 260, as it was our first quarter in the ASX 200, and we continued to progress the DFS early construction activities with the village and water and remain on track to deliver DFS, FID in the village early in the new year.
We secured another AUD 420 million in funding through another fantastic deal with Franco-Nevada, and a AUD 250 million equity raise completed our first-ever grade control program, continued our exploration, and expanded our tenement package by nearly another 300 sq km . We finished the quarter with a pro forma cash balance of around AUD 600 million. So we're incredibly well-funded to continue to progress and de-risk the development of Bullabulling ahead of FID, which remains on track for the first quarter of calendar year next year. Starting with funding, we made great progress there and it puts us in a really strong position to continue to execute on pre-FID spend as we articulated in the PFS. Firstly, we secured another AUD 200 million strategic funding package with Franco-Nevada. That was made up of AUD 170 million of further royalty funding, plus a AUD 30 million equity investment.
Franco-Nevada, for those that don't know, is one of the most respected names in precious metals finance, and we see this as a strong endorsement of Bullabulling given the extensive due diligence Franco-Nevada have done on both the PFS and the new resource. On the back of that, we raised AUD 250 million through a two-tranche equity placement. We had strong support from our existing institutional shareholders, including Franco-Nevada, and we were pleased to welcome a number of new domestic and international institutions to the register. Together, these two actions put the company in a very strong position as we move to finalize the remainder of our funding to first production, which we expect to be completed via traditional project finance.
I think it's also worth highlighting here how we have leveraged the unique nature of Bullabulling, being a long life, large scale and high margin project, to execute a funding strategy that few others can achieve, that drives a lower cost of capital and results in not only a higher asset value, but creates and preserves shareholder value for the long term. At Bullabulling specifically, we added just over 350 sq km through further tenement acquisitions, which continues to give us optionality both in exploration, infrastructure, and water. The project footprint now covers 1,500 squares compared to the 130 squares that we acquired in April 2025. As we all know, resources and mineralization don't stop at tenement boundaries, so we're now unconstrained to both the north and south, which provides great optionality for future resource growth. On approvals, we continue to make very good progress.
Our expanded mining lease was granted in the quarter, which combined with other existing mining leases, now covers the entire mining and processing area defined in the PFS. The remaining approvals, as we talked about in our quarterly report, remain under the WA State pathway, are under assessment. All the documents are in place. Engagement has been very positive, and we expect the required approvals to come in time to support FID early in the next year. On early works, as many of you know, we gained initial approvals last quarter to commence construction on site of both the village and water infrastructure. Construction of the village is progressing to plan, and so much so that the board recently approved the manufacture and installation of an additional 200 rooms to take the capacity to 600, which is sized for our longer-term production case.
The village is scheduled to be fully operational in the first quarter of next year in time for the planned commencement of major construction activities. We were incredibly proud to be given the permission to name the village Champions Rest after a prominent family within the Marlinyu Ghoorlie Native Title group. Within Champions Rest, an area called Brian's Garden, named after an elder, Brian Champion, will contain native plant species and recognize the group's strong connection to the area. We couldn't be more pleased with this, and we have an excellent relationship with the Marlinyu Ghoorlie. Water infrastructure continues to be developed as well. We've installed 22 bores across the project. Test pumping is underway and exploration for water continues after encouraging results. Orders for long lead items will be placed in the current quarter, which will continue to de-risk the schedule and capital cost.
On the DFS itself, the technical work feeding into the DFS continues to support the PFS and in some areas improving. We completed our first ever grade control program of 26,000 m, and overall gold grades were consistent with the drilling and the data behind the 6.2 million ounce resource. A second grade control program will also commence shortly. Other results this quarter continue to confirm the mineralization within the resource as well as extensions beyond it, and we continue to look for upgrading of inferred resources to indicated. On geotech, DFS test work is complete, and we expect it to support steeper pit wall angles in the fresh rock for the DFS itself. On metallurgy and processing, testing completed to date continues to support both the comminution and recovery assumptions assumed in the PFS.
To wrap it up, we're very well-funded with around AUD 600 million in pro forma cash, and Franco-Nevada is a long-term strategic partner, which will hold over 5% of our capital post the recent equity raise. Our resource confidence continues to grow with the completion of that first round of grade control drilling validating the resource, and a second grade control program will also commence shortly. Early works of both the village and water continue to progress at plan, and we're on track to place long lead item orders this quarter. Ongoing technical work continues to de-risk the project, and we remain on track to deliver the DFS in the first quarter of next calendar year. Thank you very much, and now we'll go to questions.
Thanks very much, Luke. We'll go now to online question time. Just a reminder to everyone that is tuned in, please use the live Q&A tab on the right-hand side of your screen if you'd like to submit a question. We did receive a number of questions via email ahead of time, so we will deal with those first, and we will try to combine similar questions just in the interest of efficient use of time. Luke, first question here. An investor says you've talked more positively of late with respect to the expansion case target of 200,000 oz per annum. What gives you confidence here, and what has changed since the PFS?
Well, the key thing here, Nicholas, is the resource itself. In the PFS, we used the 4.5 million ounce resource. For the DFS, we're using the 6.2 million ounce resource. Then within that, the indicated proportion will move from 3 million to 4.4 million, which will support an upgrade in the reserve with the DFS early next year. The resource base is materially larger, and that gives us greater optionality and greater opportunity with regards to the expansion itself.
Thanks very much, Luke. Next question here. Some of your peers in the Goldfields have recently reported issues with grid power in their recent quarterly updates. How will you protect the project from similar issues during construction and then into production?
Yeah, look, these aren't new issues. The grid stability in this part of the world has been well-known for a few years now, and we've learned from the others that are using that grid power. Our power system will be off-grid. It's going to be an off-grid hybrid of diesel generation, solar, battery, and wind. We will build that separately to the grid, and that completely de-risks us from anything that happens on the grid itself.
Fantastic. Thanks, Luke. The next question here. Minerals 260 released an exploration update earlier this month. How are you thinking about incorporating the recent drilling into the DFS and the mine plan, and especially the high-grade trends that you've been identifying?
Yeah, this drilling continues to support and encourage our resource and future reserve. What comes into a future resource will come out after the DFS. The DFS resource is the 6.2 million. There will be a new reserve derived from that resource, and everything we're doing today is for subsequent resources and reserves.
Thanks, Luke. Next question here. CapEx inflation is a current theme in the resources sector. What are you seeing in this regard between the PFS and the DFS?
Well, I think it's important to remember a lot of our prices in the PFS itself were informed by market tenders. What we've been able to do is continue to support that tender process and those prices in our DFS. We haven't seen a large change. As I mentioned on my introduction, with the ordering of long lead items, which is a substantial capital cost, that will de-risk the capital estimate even further as we lock in those prices ahead of next year. We've got a AUD 70 million-AUD 80 million investment with the village, which is a fixed price. That capital cost isn't going to change. We're fully cognizant of inflationary pressures across the environment. But we're seeing actually at the moment sort of in line with the PFS, so no material movement.
Thanks, Luke. We've got a few questions here about funding, which I'll sort of combine, in terms of how you're thinking about your funding from here. You've indicated that funding is likely to come from traditional, the balance of funding from traditional project finance. What's the engagement been like with the banks following the Franco royalty and equity raise? Can you give us an idea of where that process is up to?
Yeah, look, it's been positive. I think post the equity raise and the further investment by Franco-Nevada only continues to give external funding providers further confidence that a company like Franco-Nevada that's put AUD 420 million into the business in the last six months, two extensive due diligence processes are key. It only provides internal and external confidence around what we're doing. We expect that process to conclude to support our FID process or FID timing in the early calendar year next year.
Excellent. Thanks, Luke. There's a question here just on the SPP that closed recently. You were targeting AUD 30 million. You want to just talk us through the outcome of that and what your thoughts are on the results?
Yeah, look, we've always been a company that respects and likes our retail shareholder base. It holds 20%-30% of the register itself. We offered the SPP as part of the same deal with the institutions when we did the placement. We think it's only fair to respect shareholders like that. The gold price moves enough that it moves the offer price above the spot price. The outcome was not surprising at all, given the difference between the offer price and the share price. It was an offer that we made to keep it fair and equal for everyone, and it didn't go that way. The important thing for us is the AUD 30 million is, in the grand scheme of things, immaterial to the total funding cost. It doesn't hurt our strategy. It doesn't impact how we think about funding the business.
Of course, you always want it to succeed, but in this case, it didn't, and yeah, we move on pretty quick.
Thanks, Luke. There's a question here on diesel. The question is, all-in sustaining costs or AISC in the PFS look reasonable at AUD 2,500 an ounce. Recent quarterlies from peers have shown high diesel prices, in particular, pushing up costs. How are you thinking about diesel prices with regard to the DFS?
In the PFS, we used a market price and the forward curve. Again, we had live tender responses to the diesel price for the short term, and then the long term, we've used the forward curve. The reason why we used that is because if we really wanted to hedge diesel, we could, and we would use the forward curve for that. We'll do the same method in the DFS as well. Whatever the forward curve will be, then that's what it'll be in the DFS itself. We're not immune to any of those costs that are coming through the industry. I think it's good today we're not producing because it's a significant risk mitigation for the next two years that we're not procuring diesel at scale. But yeah, of course, if the forward curve isn't right in two years' time, then yes, something's different.
At the moment, the forward curve is the best indicator, and like I said, if we really wanted to, we could buy the diesel at that price today.
Fantastic. Thanks, Luke. Question here on approvals. Approvals are a key enabler to FID and construction. The question says, "I understand all have now been submitted under the WA State pathway, but what gives you confidence that these will be granted in a timely manner?"
Yeah, it's a good question, and obviously it's very topical in the industry, given others. As a reminder for everyone on the call, this project was operational in the 1990s for a few years. Then throughout its history, it's always been approved to move forward. We had what's called an MDCP and works approval granted earlier this year to support the construction of the village. We've then had our mining lease expanded and granted in the last quarter. The engagement on the last approvals that we require for the major construction period has been nothing but positive. So we've had several rounds of consultation with the department. The historical mining area, the current mining lease, the engagement with traditional owners, all means we're very confident. The specific day they arrive, of course, you never know.
The guidance that we've been provided for FID is sensible and reasonable. But yeah, we've been encouraged by the engagement with the department and the government to date. So that's what's given us that confidence.
Thanks very much, Luke. We're getting there. Just a few more questions to go here. Firstly, is the company looking to acquire any further tenements in the area?
No, I think we're pretty good. I think 1,500 squares keeps the geologists busy. We've got our people out today looking for targets on those new tenements. I don't feel like that we need any more tenements from a gold mineralization, from a water, or from a project footprint perspective. What we've acquired today has been very important and strategic, and that is why we have obviously done them first, but I do not see anything else coming forward in the future.
There is a question here, Luke. All right. Let's have a look. Just working through those. I think we have covered the tenements. Okay. Question is, with your recent expansion in the tenure is obviously positive for the potential to grow the resources. Are there any additional benefits or flexibility that that gives you in terms of infrastructure, in terms of power or additional water access? I think that relates to the tenements there.
Yeah. We've always had that thought. We' ve always looked at tenement acquisitions for both, firstly, mineralization, then water, and then infrastructure optionality for both the 5 million ton and the 7.5 million ton case. That' s how we've always thought about it. That' s why we have been deliberate at moving both north, south, and east with our tenements. We've obviously got a west-dipping ore body. Tenements to the west are less interesting to us, versus say tenements to the east, north, and south.
Excellent. Thanks very much. Okay, next question here. Are there any modifications required to MDCP 2 and works approval to operate Bullabulling at 7.5 million tons per annum?
No. Our approvals that will come for the initial construction are for the expansion case already. That's both for waste dump footprint, tailings dam, the village, of course, that we've just expanded to 600 rooms. All of those are around the longer-term expansion case. No, there won't be any further approvals after that.
Okay, one more here, Luke. This is a reasonably detailed one about water. 22 water bores and test pumping results so far. We saw some good flow on a recent site visit, giving confidence. What confidence do you have in yield and water quality, both for the base case and the potential expanded case?
Yeah, we just continue to explore, install bores, and then test the bores. What we've seen to date is above our initial expectations, both north and south of the project itself. We just recently expanded the exploration for water to support the expansion case. So yeah, we'll continue to de-risk water all throughout the next year. But so far so good. It's exceeded our expectations.
Fantastic, Luke. I'm just going through the list. I think we've covered pretty well everything there. I think we've covered all those questions, so I might just hand it back to you now. We'll wrap up question time and perhaps just a couple of closing thoughts.
Thanks, Nicholas. Thanks to everyone that joined for our first-ever webcast. We appreciate your time. To leave you with, we' re moving fast with the Bullabulling Project. FID is not that too many months away now. Funding is well and truly under control, with the last piece of the puzzle to come in time for FID. Approvals are going to plan. Construction activities are on track. And look forward to updating you after another busy quarter in a couple of months' time. Thanks very much.