Thank you for standing by, and welcome to the Regis Resources Limited quarterly briefing. 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. Jim Beyer, Managing Director and CEO. Please go ahead.
Thanks, Lexi. Good morning, everybody, and welcome to the December quarter, December 2023 quarterly update. I'm joined this morning by our CFO, Anthony Rechichi, and also with our new Chief Operating Officer, Michael Holmes, who I'm very pleased to say has joined our team. Welcome, Michael. It's been a very satisfying quarter across a number of areas in our business. First up, our key safety frequency rate remains well below the industry average, as reported by DMIRS in WA, with an LTIFR, Lost Time Injury Frequency Rate of 0.66. And we've continued on with a consistent operating performance. Gold production and all-in sustaining costs are right on guidance.
For the December quarter overall, we hit plan and produced just over 109,000 ounces of gold at an All-In Sustaining Cost of AUD 2,133 per ounce Aussie. In fact, all dollars that we talk about today will be Australian dollars. It was another quarter that clearly demonstrates the cash-generating capacity of our operating assets as they continue to transition to a cash harvest phase. This, combined with a very significant step of closing out our hedge book in December, means Regis has now very clearly moved into a much stronger state of cash flow generating at current gold price levels, and is also fully exposed to the upside potential that exists for the price of gold. With this major change to our revenue, we're expecting a strong cash build for the remainder of FY 2024.
Progress on our growth plans continued, and last month, we released our biannual exploration report, which does a fine job illustrating the substantial potential for resources and ultimately reserves growth. On the ESG front, we saw more than just safety. The 9-megawatt solar farm at Duketon South, which is now delivering direct reduction in our power costs and carbon emissions for the quarter, is online. We saved about AUD 900,000 in fuel and also about 2,500 tons of carbon emissions for the quarter. So all up over the year, we expect 10,000 tons at least there, all of which are important fuel savings, but also keeping us below our Safeguard Mechanism threshold, which is another key cost saver. At Tropicana, work on site is well underway, with the 62-megawatt wind solar battery facility that's being installed there.
Based on progress, we're expecting that to be completed early in the 2025 year. I'd like to now hand over to Michael Holmes, our COO, who's joined our team at the beginning of November. Michael will go through our operational performance in a little bit more detail. Over to you, Michael.
Thanks, Jim. Good morning, everybody. It's great to be on the call today, and I'm really excited to join the Regis team. Looking more closely at the operational performance through the quarter, Duketon Gold production was at 70,413 ounces at an All-in Sustaining Cost of $2,276 per ounce, and our share of the Tropicana Gold production was 38,794 ounces at an All-in Sustaining Cost of $1,795. It is important to keep in mind that the Duketon All-in Sustaining Cost includes a $140 per ounce of non-cash inventory adjustments. In more detail, for the Duketon site, Duketon North's gold production was at 9,651 ounces at an All-in Sustaining Cost of $2,441 an ounce.
The open-pit mining at Duketon North continued in the Moolart and Gloster pits for the quarter, and we will see mining continue in these areas in the second half of FY 2024. All open-pit mining at Duketon North will cease at the end of FY 2024, and as the mill feed from the open pits reduces, the low-grade stockpiles at Moolart will be used to supplement the tonnage to maintain the throughput rates. Down south, at Duketon, at Duketon South, gold production was at 60,763 ounces at a AUD 2,250 per ounce All-In Sustaining Cost. Underground mining development and production stoping from both underground mines performed well, with development rates lower than last quarter's performance, impacted by equipment availability and some water management issues.
An action plan was implemented to resolve these issues, and performance will increase over the coming months. Open-pit mining continued at Garden Well, Russell's Find, and Ben Hur for the quarter. Garden Well Stage 6 pit destacking was completed during the quarter, opening up the main ore zone. The Ben Hur and Russell's Find, the main ore zones were also accessed following a period of development. The mining of these pits will continue for the remainder of FY 2024. Growth capital spend is ahead of plan due to advancing the mining schedules in the underground and open pits, along with some one-off, unplanned drilling, blasting costs at Ben Hur and Russell's Find open pits.
... Growth capital spend rates and mining development performance are currently under review, as the company assesses the options of continuing the improved mining schedules versus conserving cash to come in on the original plan. Tropicana delivered an improved quarter of 38,794 ounces at an All-In Sustaining Cost of $1,795 per ounce. The open pits delivered more ounces than the previous quarter as per plan, and the underground mines were slightly up on tons and grade, quarter on quarter. Underground development did realize some issues with grade control interactions and ventilation restrictions, with limited face availability and development meterage performance. Work is underway to address these issues. Mill throughput was consistent quarter on quarter, and grade and recovery was improved due to the mill feed grades improving.
Forecasted production remains on track, with guidance noting a lower March quarter and a stronger June quarter. I'll now hand over to Anthony for the financials.
Thanks, Michael. On to the financials for the quarter, which are quite consistent with the prior quarter, except for the hedge book, which I'll come to a bit later on. On revenue, we sold just over 104,000 ounces of gold at an average price of AUD 2,671 an ounce, which includes the effect of the hedges. This delivered AUD 279 million of sales revenue. Operating cash flows have been very strong again. Overall, we generated AUD 97 million in operating cash flows, which includes the delivery of 27,000 ounces of gold into the hedge program. Approximately AUD 47 million of the operating cash flows came from Duketon, with Tropicana tipping in a solid quarter with AUD 50 million. I'll now point you to Figure 3 of our release, which outlines the quarter's cash flows.
Cash and bullion closed at AUD 155 million at 31 December. You can see that operating cash flow before any hedging was actually AUD 136 million. Partly offsetting this, we spent AUD 60 million on CapEx, AUD 15 million on exploration, AUD 6 million on McPhillamys, and corporate and finance costs were AUD 13 million. This time, those corporate and finance costs had some once annual and one-off type costs included in them. Now, the hedge book impacts for the quarter, and might I say, I look forward to not talking about this in the next quarterly report. You can see the hedge book impacts over to the right of that waterfall chart that I was just talking about, Figure 3.
Firstly, there were AUD 40 million in hedge losses owing to the delivery of the 27,000 ounces that were delivered into during the quarter. And secondly, the big one-off was the buyout of the remaining 63,000 ounces in December at a cost of AUD 98 million. Regarding our debt, as announced earlier in the quarter, we extended the maturity date of the existing AUD 300 million loan facility from 31 May 2024 to 30 June 2025. The extension forms part of the broader funding strategy for the company's McPhillamys Gold Project, which we spoke about in the September quarterly report call. That's all from me, and thanks. Over to you, Jim.
Thanks, Anthony, and good to see that you didn't get stuck in the lift for this quarterly report. On the growth front, returning back to the growth section, our work on the future plans, and I just want to talk through the work on our across all our assets. The Garden Well exploration decline is now finished, and we're feverishly drilling away. If you look at Figure 5 in the release, I'll refer to that in a couple of the points. In fact, if you have the quarterly release handy, I'll refer to a couple more drawings in that, figures in that a little bit later on.
The drill results are confirming, this is at Garden Well, the drill results are confirming our belief that a continuous mineralization system does extend from the existing Garden Well South mine, for at least a kilometer to the north, underneath the existing Garden Well open pit. This work, and the results that we're doing, continues to reinforce our exploration target in the area, which is 800,000-1.3 million ounces in potential. The initial drilling program has already delivered some early success immediately to the north of the current reserve, so immediately to the north of the Garden Well South area. We're drilling off the decline, and if you can zoom in, you'll see there's a DP one, which is a drilling point one on the figure.
We did some drilling from there, and we've been able to add some stopes into, already into the, mine plan for Garden Well South, so getting some returns there already. Just covering off on some of the two or three of the highlight drilling intercepts to point out in that drawing. You know, we've got intercepts of 36 meters at 5 grams, 10 meters at 3.7, 24 meters at 3.7. Now, these are all good, good intercepts that put us in good standing for that, for that area, both immediately to the north of the south area, bit confusing there, but also, over right up in the, the main area, which was our primary target.
Moving on to Rosemont in Figure 6, this illustrates some of the recent high-grade drill hole intercepts from significant grade and gold grades that we've been achieving, drilling up to 700 meters below the southernmost currently planned underground area. The drilling continues to infill and extend the high-grade lode that we've been, or lodes that we've been pursuing. Yeah, examples of intercepts, 7.4 meters at 6.7, 3.4 meters at 45, 1.3 meters at 30, 1.4 meters at 40. Some pretty impressive intercepts that we've been hitting there. And while we're still waiting on all of the results, all the holes that we put into this target area have intersected mineralized quartz-dolerite, with fine disseminated sulfides, quartz veining, and quartz albite sericite alteration.
It's occurring in multiple meter scale zones, common feature of the Rosemont gold-bearing geology. Now, for the non-geos that are on the call, all of that's technical, highly technical speak. But what, from my perspective is, this is the really juicy stuff, so I'm very excited about some of the results and the drilling that we're getting in this area as well. Resource modeling and economic evaluation of both the Garden Well and the Rosemont undergrounds is underway, with this new information that we're getting and still coming in, with an update expected to be provided at the FY 24 June quarter resource and reserve statement. At Tropicana, work continues at the Havana Underground project with more drilling, and as can be seen in Figure 6, some good supportive intercepts were had as we moved to increase the confidence category there.
A feasibility study focusing on operational readiness and detailed designs is now underway. The Havana Underground has the potential to add a new production zone for 7 years on top of the existing plans. We're very excited about the progress of this project. I'd add here that the Havana deposit is following the same maturity curve as its predecessors at Boston Shaker and Tropicana in the undergrounds, and really reinforces why the entire asset is one of a genuine Tier One, one of the few genuine Tier One assets going around. The value of the underground continues to grow well beyond the reserves, as they are 2.5... As they were, or the reserves as they were 2.5 years ago when we bought the thing. Can I draw your attention now to Figures 7 and 8?
How exciting are these pictures? Figure 7 is a long section that shows all of the mineralization across the Tropicana site in gray. The joint venturers, we have a view that significant potential exists for confirming extensions to mineralization down plunge of the existing resource areas. To test this potential, drilling has begun consisting of a series of deep diamond drill holes, as marked in Figure 7. Testing of these deep holes is looking at high-grade, high-grade plunge extensions at Boston Shaker, fold offset locations for Havana Underground, and northern, and repeats of the Havana Underground, beneath a fault called the Swizzler Fault. Our first results on the. These are the first results in that are down plunge at Boston Shaker, and they're pretty exciting.
Because it shows or indicates that mineralization extends another 650 meters down plunge from the existing mineral resource. So further in-field drilling has high potential down that plunge to add significant resource. Now, I think you can see that it's illustrated in what I think is figure 8 in that diagram, just how much further down plunge those intercepts are hitting. Blind Freddy can see the potential that exists here for a long underground life. How can you not be pleased that we acquired this asset? At McPhillamys, we await a response on the Federal Section 10 application. We remain confident this will be cleared, but are just growing increasingly frustrated with the process.
In addition, we're working on completion of the DFS, which we expect to be done by the end of the March quarter. Things are pretty busy on that front, and it is tight for timing. We should be there, as long as there's no delays in some of the external information we're chasing. Now, a decision on the timing for FID will be in the following quarter, which will, of course, follow the release of the DFS. Pardon me. So in summary, the December quarter for Regis has been quite a significant one for the company. Another quarter of safe, consistent production, production that was on cost, a cash flow that is now free of the hedging shackles. I can actually hold a glass of water and talk about hedging without shaking.
We've been free of the hedging now, which we've had for nearly, we've been dealing with for now for nearly four years. This will clearly drive a strengthening of our balance sheet from here. Regis is a producer of well over 400,000 ounces of gold a year, a great outlook, fully unhedged, all in a global economic environment that just continues to point to a higher gold price scenario. Along with that, plenty of future reserve growth potential exists across all our assets. What a great foundation for the future! The team here is really looking forward to doing more of the same. With that, I'll hand it back to you, Lexi, and we're happy to take any questions that may come.
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 speakerphone, please pick up the handset to ask your question. Your first question comes from Alex Papanikolaou from Citi. Please go ahead.
Hi, team. For Duketon South Underground, can you remind me again, when do you expect to be at a run rate closer towards the 1.5 million tons per annum?
Across both the assets? We're probably sitting-
Yeah, that's fine.
...reasonably close to that now. Yeah, we're probably sitting reasonably close to that now... maybe, you know, between 1.2-1.5. That's, you know, that's the range that we'll run in. Some quarters it'll be strong, some quarters it'll be weak, just because of the cyclical nature of the assets. This is why we'd like to get more production zones in, so we can be more consistent.
Yep. Okay. And can you remind me again, is there a planned 1H FY 2024 tax refund?
Anthony? Yeah, we mentioned it once or twice, I think, Alex, and we mentioned at the AGM as well. Expectation won't be as big as last year. You know, last year was AUD 67 million. We mentioned at the AGM that it could be up to around AUD 20 million dollars in cash this year.
Okay, great. And just one final question. On Duketon North, the negative sustaining CapEx of AUD 3.1, can you give a bit more color on that?
The what? The negative sustaining CapEx, did you say?
Y- yeah.
Yeah. So, just flicking through it now on, the table, actually. I think, I think that's stock movement. Yeah. Are, are you looking at,-
Nearly lower.
Yeah, so we've just got a year-to-date adjustment coming through in this quarter, but we just didn't want to make a change to the corresponding quarter there, Alex.
Okay. Okay. Great, that's just me. I'll pass it on.
It's a year-to-date adjustment. Yeah.
Thank you. Your next question comes from Andrew Bowler from Macquarie. Please go ahead.
Morning, all. Just continuing on with Duketon North, obviously due to close at the end of this financial year. Is there anything more we should know about that in terms of, you know, environmental liabilities that you'll be, you know, undertaking sort of in the near term? And also, if you have any plans with that process plant, whether there's any sort of used parts, scrap value, or something you can get from that plant, or are you happy to keep it as a bit of a spares mill for now?
Oh, yeah. Yeah, look, Andrew, it's a good question. I think you've, you know, to be fair, you've probably taken it a little bit further than what we will. Our plan is not to close it, our plan is to put it on care and maintenance. And, 'cause we're still, you know, highly confident that we'll find more. Our exploration will deliver some additional material in that space that we can process. So we have no, no plans of putting it into closure. We'll just put it on care and maintenance. And same with the camp, we don't plan to do anything with that. Obviously, we're looking for other opportunities as to what we might do with that more corporately, you know, is there a deposit somewhere where we could move it?
But I think right now, it would want to be very clear and good value opportunity for us to decide to decommission that and move it somewhere else, because we think that area has still got potential, significant exploration potential. It's just that the timing hasn't worked out for us with the cost of processing a lot of those low-grade stockpiles that we've had there for quite some time. But, you know, in the current cost environment, it's just not, not worth it. So, I hope that answers your question.
Yeah, thanks. And on those low-grade stockpiles, I mean, you know, clearly quite sensitive to the cost environment, also that the current gold price. You know, what would the gold price have to be to keep that mill spinning, and processing those stockpiles? Is it, you know, well above where we are now, spot was?
Well above where we are now, yeah. I mean, the, you know-
Okay
... the grades are sitting 0.3-ish, something like that. So, you know, it's not, it's not conducive.
No worries. Last one from me, have to ask about McPhillamys. Can you just remind us again, sort of when this Section 10 needs to come through to not impact your current timeline? Are you still thinking you can get things done to the old timeline, or is it starting to push things out a little bit?
Look, we think that we can still meet the timeline. It might have a little bit of an impact on it. But, we think that we can keep delivering into the, you know, completing the DFS by the end of March. What it may mean is that there's a couple of things in there that in terms of, you know, cost estimate accuracy, it might have a little bit more of a wider confidence range on it. So we have to make a slightly higher provision because we haven't been able to, you know, do some extra geotech drilling that we wanted to do.
But, you know, we've made a decision to keep moving with that, and we just keep responding to the queries coming from the feds and, you know, doing what we can now to try and get this to closure. You know, it's so short answer to your question is, no, I don't see anything immediate. It just has an impact on the confidence level on this. Therefore, maybe some, in some areas, not a lot, but in some areas, we just need to make sure we take that into account when we make confidence predictions or contingency.
No worries. That's all from me. Thanks.
Thanks, Andrew.
Thank you. Our next question comes from Alex Barkley from RBC. Please go ahead.
Thanks. Good morning, everyone.
Morning.
Just a question on Duketon South's open pits. You've called out what you're expecting to be producing in the second half this year. Are those the same pits that'll be running FY 25? And sort of what's the production trajectory over that year? Thanks.
... Yeah, look, we'll give guidance on FY 25 later on this year. At the moment, we're just working through the details to make sure that we don't over or underpromise.
Okay, and maybe like, so what's the life of those three pits? Or is there kind of, one next cab off the rank that might be replacing them? That's sort of my question.
Yeah, look, we've got a multitude of options there. That's part of what we're working on now is which pits will we bring in. You know, Ben Hur obviously continues running, Garden Well, and continues running. And we've got, we've got a few other options actually, that we, we're chasing now, which with a little bit of... It's, it's quite interesting, some, some alternative thinking in our approach around the, the, some of our past pits as well that we're having to look at. So the reason I'm being, you know, evasive on it is, for two reasons. One, we'll give, we'll give guidance for next year in due course, but also there's actually a few moving parts for us that we're looking to optimize at the moment.
So we're just not in a position to say too much more than what we've really indicated that, in the past, that, you know, what Duketon's capable of providing in the near term, over the next couple of years, to three or four years.
Yeah, sure. No problem. It's always, always good to have options. All right. Thanks. That's all for me, guys.
Yeah, yeah, it's great, actually. The guys are doing some good work there.
Thank you. Your next question comes from David Coates from Bell Potter Securities. Please go ahead.
Morning, Jim, Anthony, and welcome, welcome, Michael. Couple of questions.
Hi, David.
At Duketon South, you flagged, I think you said, you know, you finished, I think, stage six, cut back and open up some new zones. Is that, are we gonna see production a bit more weighted to the second half, or increasing the second half, as a result of opening pits at Duketon South?
No, we're maintaining our guidance where it is.
Okay, cool.
You know, if you look at the first half, I think, has been about 221,000 ounces, thereabout.
Oh, yeah. You're, you're staying in the middle.
Yeah.
Yeah.
Bit up-
Which is great to see. Thank you. Congratulations, by the way-
Yeah.
-on a steady quarter. Good to see.
Thanks, David.
Kind of contrary to that, you mentioned, maybe give me the same answer here, but you flagged slow development rates at Tropicana. Will we see the underground production there sort of and potentially impacted and therefore, if guidance is staying the same, presumably offset by higher production from the Tropicana? Is those slow development rates going to impact production from the underground Tropicana in the second half, do you think?
Yeah, it's not a great phone connection there, Dave. I think, were you asking... Can you just ask that question?
Yeah, sorry. I was just asking, you flagged the slow development rates at Tropicana. Are they going to impact production underground there in the second half of 2024?
Yeah, we're not, we're not anticipating anything like that. I mean, the team there have worked out what they need to do to address it, and they have got on with it. So, you know, not to... The short answer is no, not at this point.
Okay. And then the other thing you've mentioned this time on McPhillamys, obviously, right in Section 10. You mentioned that once the DFS is finished, you'll then announce the timing of a Final Investment Decision. So if you just perhaps give us a bit of insight into how you guys are thinking about pushing the button on McPhillamys. What factors are gonna drive the timing of that, if you're able to?
Yeah. Look, yeah, it's a good question. You know, I think one of the things that, you know, we recognize, and I think a lot of people do, but I'll, I'll say it, is that, as a company, Regis is not a one, one project company. You know, McPhillamys is a very important part of our future, but we have other operating assets and other potentials. So we really look at understanding how we can use the optionality, and the timing of McPhillamys is something that we can dictate. You know, if we were a one, one asset company, and our meaning to be was all hanging off this one project, then of course, you really don't have too much of a choice otherwise, apart from just pushing on and developing the project.
We, on the other hand, have got the opportunity, and you know, in accordance with that, you've got to figure out how you're gonna fund it based on the time that you've stuck with, if you like. We, on the other hand, have got a business that is now generating a significant amount of free cash flow now that we've re-removed the hedges. We'll see a balance sheet that continues to strengthen. When we look and follow... You know, we're looking at McPhillamys as a project. All right, well, what's the sensible timing for us to make a decision to build it? You know, we might be in a position, for example, to make a final investment decision in the middle of this year.
But is that the sensible thing to do in terms of being able to finance it? What happens, pardon me, what happens if we push that timing back six or 12 months? Well, the project's still there. Our balance sheet gets stronger. It means that maybe we, we don't have to, you know, things like we don't get forced to have to, to do an equity raising, which we definitely don't wanna do for this or prefer not to. You know, our preference is to look and have a strong balance sheet, fund it a little bit out of debt and maybe a little bit, and, out of, out of our cash flows and our existing cash balances.
So from that point of view, from a capital investment timing, we have the luxury, if you like, of being able to to decide when's the appropriate time to develop it and not as soon as we. And that may not necessarily be as soon as we possibly can. It might make sense for us to delay that. Now, it's important that people understand not to interpret that as, you know, they're going cold on the project and trying to talk it down, far from it. What we're trying to do is we're just trying to let people understand that if they're looking at how, you know, how do you plan to fund it? We've got options, and time isn't gonna force our hand.
We have time on, you know, we have a business that's very strong as it stands. So that's basically what I'm saying by, you know, we'll make a decision on the timing as opposed to making it, you know, making the decision by June. That explains the situation-
No, no, that's,
From our perspective.
Yeah, no, that's useful. Thanks very much, Jim. Cheers. That's all from me.
Thanks, Dave.
Thank you. Our next question comes from Daniel Morgan, from Barrenjoey. Please go ahead.
Hi, Jim and team. On the call and in the-
Hi, Daniel
... the release, you called out, you were considering—Well, you talked about how development is ahead at Duketon South pits and underground. And you were spending a bit more money as a result of that higher rate of progress. But you were looking at options to slow that down to perhaps preserve cash. Can I just understand that you're thinking here a bit better? I mean, usually, if productivity is ahead, you probably wanna take that win while you can, and use the balance sheet to handle that, 'cause you end up just getting there quicker. Why would you wanna slow it? Thank you.
Yeah. Good question. I was hoping somebody would ask that. Keeping it at the highest level, I mean, basically, if you look at our, our progress on our, on our growth capital numbers, I think our guidance was AUD 85 million-AUD 95 million. You look at how much we've spent to date, I think it's something like AUD 70 million, low 70s million. You know, so if if, you know, we've. But the point, the point is that the messaging here is the reason that it looks like we're, we're blow out, it's not the, not the word I'd like to use, but the reason that it's looking like, you know, we're, we're, we're gonna be high there is not because we've lost control of the costs or anything like that, the unit costs, it's because we've actually had a good performance.
Now, you're quite right. We could make a decision to keep running on, and obviously, if we do keep running on, then there'll be maybe not to exactly the same extent, but that we might see that, that trend push us to, to change our guidance off the back of some, you know, good productivities and good performance. Or we might, we might look at that and say, well, you know, if we if it makes sense to us, maybe we can, we can, throttle activity back. Yeah, it's just an assessment that's, that we've, we've really seen and satisfied that, we understand what's, what, what's driving the, the improved performance. Now, we've just got to assess, do we wanna keep that going?
Or do we wanna utilize it and, you know, take advantage of it in a different way? And as you say, it obviously, you know, mining's an interesting game. Sometimes, you know, you do. When you get the opportunity to get ahead, you do it. And particularly now, as we've got a stronger cash flow, it might make sense to do that. We just haven't made that decision yet, but, you know, we're pushing on at the moment, but we'll probably be able to give a clearer picture on that. You know, we got the half-year accounts coming up in about three or four weeks time, so I certainly expect we'd be clear there. But, yeah, we plan to do what's sensible.
So, conceptually, unpicking that a bit more, does that mean that, 'cause you're ahead, I mean, usually if you're ahead, you're getting into new mines or better grade earlier. Does that mean it's possible at the back end of this year, this year, so FY 24, you might have a bit better production than you might have thought, or is FY 25 better than maybe you would have planned if you continue your current course? What does that mean, are the benefits of continuing to spend?
Yeah, look, this is, this is growth capital, and usually, the growth capital is, is not for immediate production, it's for longer term. So what we're actually seeing here is, we're pushing development out into areas where we hadn't originally planned because we see, future growth potential. So, you know, will that deliver higher production this year? Probably unlikely. I mean, just by definition of the fact that it's growth capital, if it was, if it was gonna bring forward production this year, it'd be more like sustaining capital. So, and in, you know, being the difference between sustaining and growth, people always, you know, say that it's being, try to understand how that's being, allocated.
In this particular case, growth capital is where we're looking at development in areas, you know, at least a couple of years out that aren't sitting in our plan. So it's more like future opportunity rather than this year, which is, again, part of the reason why we just need to make sure that if we're gonna continue with this, we need to with the accelerated expenditure, because really we're bringing forward spend, then, you know, it's the right thing to do this year.
Thank you. Just last question. Duketon North, what does production look like through the balance of FY 2024, and do you still plan to be producing some gold in FY 2025? Thank you.
Michael, you wanna deal with that?
So the production is as per the guidance. It's gonna be, as I said, we're into the pits, but we're supplementing more low-grade material. So you'll see a softening of that production throughput. And then we're on care and maintenance after FY 2024, so there'll be no gold coming out of Duketon North. Or maybe, maybe as we put it in care and maintenance, we'll be cleaning up the plant and things like that. So there might be a little bit that will be producing, well, will be presenting itself in the first quarter of FY 2025.
Okay. Thank you very much.
Thanks, Daniel.
Thank you. Once again, if you wish to ask a question, please press star one on your telephone and wait for your name to be announced. There are no further questions at this time. I'll now hand back to Mr. Beyer for closing remarks.
Thanks, Lexi. Thanks, everybody, for joining us. Thanks, Anthony and Michael, and welcome, Michael. As I said before, it's great to have you on board. If anybody's got any questions, please give us a call and we'll do our best to answer what we can. All right? Thanks, everyone. Have a good day.
Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.