Thank you for standing by, and welcome to the South32 H1 FY 'twenty one Financial Results and Outlook, Investor and Analyst Briefing, UK and SA. All participants are in a listen only mode. There will be a presentation, opening remarks, followed by a question and answer session. I would now like to hand the conference over to Mr. Graham Kerr, CEO.
Please go ahead.
Thank you. Good morning, everyone, and thanks for joining us for our financial results conference call for the half year ended December 31, 2021. I'm joined at my end by our Chief Financial Officer, Katie Kovich. And on the lines, I have our 2 Chief Operating Officers, Jason Economides and Mike Fraser, to answer any questions you might have around their operations. Look, I'll start by just calling out we provided a short video that provided an overview of our financial results and it's available on our website.
But then if we take a step back and think where are we today, a couple of introductory comments. Look, we have a simple strategy we've had in place since day 1 of the merger that we believe is still purpose across all cycles. It's underpinned by a strong balance sheet and disciplined allocation of capital and it's built around 3 simple pillars, Optimize the existing operations, unlock the potential of those operations and identify new opportunities to grow the portfolio. If you sort of look at those in slices and start to optimize, look, it was really great to see another period of good operating performance While the heads of the operations, we achieved 3 records of production for the half, the worth the alumina, Brazil alumina and gemco. We also upgraded full year guidance at Illawarra Metallurgical Coal, Cerro Matosa and Kennington.
And the work that's being done on the volume efficiencies Control means that unit costs are well controlled despite the strength in currencies we're actually seeing. It was really pleasing to see and you'll see in the slide pack, Our core markets are rebounding and we're starting to see prices increase as we start calendar year 2021, which has given us confidence going forward. Today, you would have seen that we are paying a dividend of $0.014 per share, and we increased our capital management program by US250 $1,000,000 which means we've got US259 $1,000,000 to be returned by early September 'twenty one. We sort of move to the next pillar of the strategy about unlock. There's some great examples in the pack about what's been done in the operations to unlock the full potential of the business.
After the great job at Les Esmeralda, the team at Cerro Matosa are now accelerating the development of the QMP project at CERO, And they're also progressing numerous improvement in life extension studies across the business to get us to a sustainable level and increase the life of Saramatosa. At the same time, we're in the middle of rolling out the energy and efficiency technology at Moselle and studying its application to be rolled out at Hillside. And of course, we're doing all the work around the decarbonization studies that we've spoken about in the past as we get prepared to release our updated targets later this calendar year. In terms of our mix of growing or changing the portfolio, we continue to exit lower returning businesses. In the half, Temco sale was complete, Metal Oil is on care and maintenance.
We have made some good progress on South African Chico with a couple of significant milestones. At the same time, we unlock value through The sale of a non core precious metals royalty portfolio, US55 million dollars to Elementium. At the same time, Yes, there were a few surprises in the period. I'm sure we'll touch on it. But the independent payment commission's decision on refusing dendrobium ex domain for the Expansion projects certainly came as a surprise to ourselves and our stakeholders, and we can talk through the implications of that.
On top of the things that we're working on that way, we've also made good progress, if you like, on the pipeline of growth options, particularly around the most where we continue to progress the Taylor study to be completed into quarter 4 and the clock to be finished in the first half of FY 'twenty two with regards to a scoping study. The Amble PFS is Progressing and we'll be back on the ground with exploration this season following the COVID impact for the previous year. At the same time, we've got 20 plus exploration Partnerships, where we had with junior companies for the buy towards base metals. So in summary, our balance sheet remains strong. We exited the half of $275,000,000 net cash, and that has grown to US452 million dollars by the end of January with working capital unwinding.
Our buyback is continuing, and we have major catalysts coming up that will move the quality of the portfolio in the coming year as we start to see a strong uptick in our prices. With that, I'll open it up to questions.
Thank Your first question comes from Tim Clark with SVB Securities. Please go ahead.
Hi there, thanks. Congratulations on the results. Just a couple of quick questions on those new projects, the CERO project and then in GEMCO project. Just the life of mines there of sort of 9 years 5.7, 6 years. So I just wonder if you could comment on the project versus life.
And then my second question, just I really appreciate a little bit of color on the Cannington volumes upgrades, what's happening there, Why the high volumes and does that also impact the 11 year life or is it just better recovery? Thank you.
Yes. Well, maybe we'll start with Sarah Obertozo, and I'll get Mike. Maybe you can talk about the projects in the pipeline and where the team is up to there.
Hi. Good morning, Tim. Thanks for the question. Look, CERO has been on a really interesting journey. And one of the things that underpins Cerro's life is what we call contract 51, which is essentially the concession agreement that determines our arrangements with the mining agency.
The first part of the contract runs through to 2029, but we have an option agreement to extend the life for a further 15 years to 2,044. And the option agreement requires us to pay an additional one off royalty of around $42,000,000 to obtain that life extension. Obviously, we've been working with the mining agency around the terms of that extension, particularly given when this was negotiated in 2012, the conditions have changed. So we're looking at alternative ways of structuring that payment. But the projects that we're looking at are all options that we believe provide A very good return even within this initial period of the contract, I.
E. Until 2029. In particular, Caressa SymphoniaR, As Graham has said, it's an additional satellite deposit, which provides us the opportunity of increasing the nickel grade And provides a sweetener in the same way that Los Esmeralda did to provide us with a lift in nickel production over the next 9 years. The second project that's been explored is with the mechanical ore concentration project, which also provides us an opportunity of lifting production by increasing the nickel ore content over the next 9 years. What is also interesting about the mechanical ore concentration project Is that in the life extension option with 2,044, one of the requirements was to lift the processing capacity by 50%.
And this mechanical ore concentration, whilst the economics pay back within The next 9 years more than sufficiently, it also meets that other condition on the life So it kind of hits both those bubbles. But what is important to take away is that even without that decision to extend the loss, These projects are all hugely value accretive with very, very good IRRs and allows us to really deliver a nickel volume of around that 40 kilotons to 42 kilotons over the remaining life. But again, if we make that decision to extend the life to 2,044. This gives us a really good base to continue there.
And probably worth noting, Mike, reflected those good IRs, it's actually not very large amounts Capital and the team, I think of Sean, what they can do with Les Meralta when they delivered that quicker than the lower cost than what the original estimate was.
That's quite correct.
It'd be okay if we move on to Canton next.
Thanks. That was very helpful.
Jason, do you want to talk a little bit about Cannington?
Sure. So in short, it's a combination of bringing forward some higher grade stopes, But also higher production. But what we are working on is creating some longer life at the back end with Some additional stopes and remnants in the tail. So that's the production profile for Cannington.
Maybe just a little bit of detail on the shaft potentially and the work around that, that we'll probably conclude in the next 6 months is worth sharing as well, Jason.
Yes. Thanks, Graham. Yes. So we are busy at the moment working through a progression To not use the shaft for hoisting, but to go to 100% trucking. That will actually also give us access to higher grade stopes that were positioned around the shaft itself, which has actually been quite value accretive for us.
So Tim, that's probably Canton. If you like, I'll take the last one around GemCo. Look, I mean, GemCo, as you rightly point out at the moment, has a resource life of about 5.7 and that has a reserve life of 5.7 and a resource of about 11. The Eastern leases, if you like, is certainly designed To basically add at least 3 more years into the reserve life. It is relatively low CapEx as Into the feasibility study, and we would aim to make a final investment decision towards the back end of FY 'twenty two.
On top of that, we think, look, there are a couple of years on top of that that probably haven't been included in the resource reserve that will eventually move across. Probably the big opportunity for us lies in the Southendies areas where relatively unexplored. We're in the second stage of an exploration project there. Yes, that's a 2 year program, which basically has about 94 kilometers of drill lines and 792 infill RC drill holes. Yes, that program commenced in October 'twenty.
We've done about 2 21 holes as at the end of December. Exploration will restart This year when the dry season commences in 2021, been the wet season at the moment, and we expect that to be completed by the end of 2021 In terms of calendar year, I think, look, the opportunity there is the resource is large. It's not well explored. So this exploration program is going to be important to understand the potential. But as we have mentioned to staff in the past, I think we're also conscious of the area of probably more On the call for heritage significance with traditional owners, so we also work with them about what will be available.
Too early to give you some color yet on that. We just don't know if it's going to be 2, 5, 10, 15 years until we've actually finished the program.
Your next question comes from Myles Alsop with UBS. Please go ahead.
Yes. And maybe just to go into a little bit more detail, so I didn't listen to the call overnight on sort of dendrobium and The implications for Illawarra, the options you have, those Illawarra stack up as a So single, longwall, medium term or are we talking about potential closure in 4 years if you cannot find a way forward with the watercourse? That's the first question.
Yes. So maybe let's sort of break those into a couple of components. We'll talk a little bit about the IPC, then we'll talk About what it means implications and if we decide not to progress with the resubmission, what does that look like? I mean, what we would start by saying, yes, it's all submission That was made to the government and then referred on to Independent Planning Commission was around Area 5 and Area 6. Yes, the government was very supportive in terms of what we were doing there in terms of how we're managing the water issues, the cultural heritage issues and the mine planning and subsidence, The Independent Planning Commission unfortunately last Friday, so that's relatively fresh, surprised ourselves, The government asked the supporters of the projects and probably the opponents of the project with the refusal to actually give us approval to go forward.
I think the other thing that probably disappointed us was there was not really an opportunity to actually address, if you like, some of their concerns, which we think is actually correct. So that was probably disappointing from our side. But the reality is, look, we take our environmental responsibility very seriously there. We've been working in that sense of area in terms of underwater catchment for a period of time. We'll continue to engage all our stakeholders understand the right way forward, if you think about what's in front of us, what we can do now, there are essentially 4 avenues that are there.
One is to actually appeal the decision. That appeal is based on process and not merits. There are a number of instruments which the government has to intervene and overturn the IPC, if you like, decision. That's sitting there as well. There actually has been a bill raised by 1 of the independents, if you like, into legislation about trying to get that moving.
There is also the option for us to submit a revised plan that addresses some of the concerns from the IPC Or we can accept the decision and optimize the business if you like without Pendrovia Next Domain. What we have guided the market to at the moment because that decision was made last Friday, what we are doing obviously at the moment is understanding all our options, Talking to each of the stakeholders, what the government where we can, some of the key customers in or key stakeholders such as BlueScope, etcetera. And there was a roundtable held by the government this week in El Alorra, which Jason participated in, just to understand all the options that sit in front of us. And at the same time, what we're doing is also looking at a plan for D and D, what dendrobia next domain area, Which would really area 5, which would really focus if you like on minimizing while we're going to agree with them some of the concerns that the IPC raised. Clearly, we want to complete that plan to understand the economic impact.
What does it actually mean for returns, because we're not interested in doing a project that's not value accretive to our actual business. At the same time, just in case that is not the option that we choose to pursue, we are continuing to look at ways to optimize the Athens complex And also what's left at dendrovia. So if we sort of break that into components, the way we talked about dendrovia next domain is we needed that to sort of Come online around 2025. We have some alternate areas that we can look at in terms of the mining areas that we can work in such The first probably almost 2 long walls or 1 and half long walls are pretty easy to mine. After that, it would require a bit of Time for gas extraction.
There is some options around remnant material that's left at Dendrobin that we've actually mined as well. So that's something the team will look at. At the same time, equally important is what we've been doing at Apten in the background. Now obviously, we returned last April to the 3 wall long configuration around the complex, I. E, the 2 in Appen.
And at that time, we've been upgrading the guidance That's how we've been performing. And the hybrid plan at Aetna at the moment is certainly working well by maximizing the productivity of the 2 longwall faces, and that will continue over the next 3 years before we transition to a simplified mine layout, and we'll talk about that in a second. If you think about where are we today, Aethan itself, that's probably running at about a unit cost at the moment, about $112 a ton, And then it's probably about $27 a ton, which is basically sustaining CapEx. As we go into the next Phase of Appen, where we increase the longwall length, which reduces the number of longwall moves. It takes away some of the Delayed relocating long walls obviously and has benefits for productivity and costs.
It also means that we have 30 kilometers underground development to do. We go from 4 VIN shafts to 4, we go from 7 to 4 continuous miners and our gas rigs drop as well. We believe without optimizing it, that sort of takes you to a number, which is probably much Closer to somewhere between $105 $110 a ton all in. Clearly, Jason and the team also, I think, that's some opportunities to improve that Around what they could do around alternative access as the mine gets older and further away and some other productivity metrics. Their target in that case would be Pushing Appen only closer to $100 a ton.
But clearly, the preferred case for us, if the economics back up, would be to do Dendrovia next domain Because it allows you to basically, if you like, average the costs. The only other thing you shouldn't sort of lose sight of is, generally speaking, while higher cost Athens does attract a higher premium, but in saying that as you move into dendrovia next day, maybe start achieving that anyway. Does that sort of help models around that?
Yes, that's helpful. So just to be clear with Appin, the all ins, the unit cost plus sustaining After the optimization would be $105 to $110 a ton. Is that right?
Correct. Correct. And look, So that will kick in from about beyond 2025.
Okay. That's helpful. So when will we
So just on top of that, if there's more opportunity to optimize what we do in that space, That alternate access excess is a push of close to that $100 a ton. Okay.
And when will we get the next Development here in terms of understanding which of those four avenues with dendrobium are going to be kind of sort of Adopted as such.
Look, I would say certainly not
When we get more clarity.
Very much by the end of this financial We would actually have a firm way forward in terms of what it looks like for costs and CapEx. If we decide to go down the appeal process, That is actually you've got a 3 month time limit to actually do that. And at that time, we'd probably start indicating before that, obviously, what our options are. The key to be honest at the moment, Myles, is to do the work around what the options are to understand what the value is for our shareholders and other stakeholders. And that takes a little bit of time to make sure we get that right.
And then The second question was just on South African energy coal. Hopefully, we won't have to keep asking this every half. Soon, it will be over, but are you still absolutely confident that by the end of this quarter, we'll have the deal done? Are there any risks to the deal? And then how are you thinking about reshaping the balance sheet after the exits and the provisions have gone?
Yes. I'll let Katie talk about the balance sheet, if you like, in a second because that's in her domain. What I would say though at the moment is it was an interesting set of results when you look across Yes, Peer Group. And if you look across Glencore Australia, BHP Australia and Whitehaven, There's about $1,500,000,000 worth of pain, if you like, U. S.
Sorry, rough Australian in terms of Write offs and impacts, and it's a very tough space to be at the moment, and it's, you call. I think you see that in our results for sake. Look, what I would say is as we sort of progress this deal, if you look at those critical approvals, What actually has been clearly done, Miles, is Section 11 Department of Minerals Resource and Energy is done with no owner's conditions. We obviously had a long process around South African competition, which is approved with no onerous conditions. We've been working really hard with Eskom and Sarady about putting together a deal that sort of works For us, Saree, and it's gone by lowering the average cost of coal by putting the two businesses together.
We feel that's in a strong place now where we're fairly aligned. And then it needs to go through, if you like, the governance process internally of Eskom and then on to National Treasury. All the time lines, all the insurances are that we should meet that deadline by the end of this I think the only thing that sits in my mind is obviously there's 2 things going on in South Africa at the moment that it probably Flows you down a little bit in the last 3 months and hopefully we're behind those. And we've seen the back of the second wave hopefully now. But obviously, South Africa has been hit very hard by COVID cases officially about 1,500,000, 46,000 deaths, whereas the media speculates Well, in excess of $100,000 and it's a country that was already reaming around fiscal challenges.
Their ability to fund for the vaccine out there has been a real stretch So that certainly had some impact on people like National Treasury and our ability to engage as we've been focused on other issues. The other one that's sort of been bouncing around for the last couple of months is the Zumba Commission of Inquiry into State CAPTCHA has been going on for a period of time now since Zuma left the presidency. The last 3 or so months has been very much focused on Eskom's involvement and the purchase So that certainly, if you like, had a number of current and previous Eskom executives and People going through that process, so that's also slowed down involvement of people. And as you would expect and as we would want, It's resulting in them following it very carefully in terms of their governance framework into the letter of the law. There is 2 things that are sort of playing in the background.
Both of them seem to be heading more on a positive trajectory now, but obviously there are a little bit of 2 wildcards that sit out there.
Okay.
Balance sheet, Katie?
In terms
of the balance sheet?
Yes. Thanks, Miles. Look, yes, in terms of balance sheet, I mean, I think maybe just Sort of just as a refresher, we certainly still believe that a strong balance sheet is fundamental to our strategy. We don't believe in combining operational and financial leverage. So as we think about our balance sheet going We will absolutely continue to maintain that same philosophy.
We have talked About a net debt range of sort of $0,000,000 to $350,000,000 being our sort of optimal range in terms of our current structure. Certainly post the divestment of SAIC and also Temco metalloys, we have said we'll come back with a relook at that. I think the other thing not to forget is we actually it's a fairly dynamic process for us in any case. We review our balance sheet 6 monthly with a forward view in terms of what our capital profile looks like, our capital intensity and so on. So, while we'll come back, it will be an ongoing dynamic process as that capital profile changes as our portfolio changes.
But certainly, the removal of SAIC specifically will improve our capital intensity as a business. The removal of the rehabilitation provisions is also supportive of a more robust balance sheet in terms of certainly rating agency perspective. So all of those elements will be considered as we complete that work. And it's probably back end of April, where we'll be in a better position to have that conversation with you again.
Okay. But we shouldn't just add the $800,000,000 provisions to the flat to $250,000,000 net debt and think that that's the new Level going forward, it's going to be somewhere probably a bit less than that.
Yes. Look, if you think about the provisions, they're actually just part of your denominator. So it's a ratio based That way that we think about this. So it's definitely not a direct translation.
Thanks. I'll let you all take my questions. We'll come back.
We have a follow-up from Myles Olszoff with UBS.
Okay. That's great. Just a few other questions I had. I wasn't sure, I was a little bit in the queue. But just in terms of Restructuring and how we or how you guys are going to take the business forward.
What other assets kind of sit kind of As marginal, how are you thinking about processing assets? And in view of climate commitments and all the rest of it, How does aluminum sit in the portfolio longer term and other assets, who is it?
Yes. So maybe break that into a couple of components. I mean, obviously, we have An aluminum chain, if you like, from bauxite to alumina to aluminum, we're along an alumina. We would probably while we never build another aluminum smelter, But I would say both Hillside and Moselle for a period of time now have been actually testing, if you like, the maximum technical capacity. And I think both Sam and Calvin have done a great job in terms of not only managing the distraction of COVID-nineteen and the challenges, But also continuing to lowering the cost base and improve the efficiency of those operations.
And I think that's reflective of the margins you see in the presentation today that we're seeing the growth, obviously Help by price, but also a help by self help. And from our perspective, I'm not sure in the current marketplace, you'd want to be more long in alumina. So there's sort of that connectivity for us. You do raise a good point miles around carbon footprint. We also had a slide taken there that talked about Scope 1, Scope 2.
And clearly, when you look at the 4 operations that make a difference for us, It is Hillside. It is Motele. It is Worsey. It is Illawarra. Both Worsey and Illawarra have a number of a day carbonization projects underway.
Obviously, we've got a number of energy efficiency projects underway at both Mosel and Hillside. At Mosel, one of the challenges for Mike, Sam and the team is to try and secure the future energy supply in that space. And certainly in that space, we're working hard to continue to have that Hydro preferential access that we have today is a backup of gas rather than coal from Eskom as they develop the new fields in the north. And likewise, when it comes to Hillside, and Mike can give you an update in a second about how the power contract is going, but there is a strong push Here in South Africa, it's obviously moved down renewables path as well and also looking at gas as an option to potentially Reduce some of the energy requirements or intensity. So they're the kind of things we're talking about in that space.
We do plan towards the back end of this Callender, you can give some very clear targets and plans of what those decarbonization milestones look like, so we can share those with our investors. The team are working hard on the numbers now. Maybe Mike you can make a little bit of comments if you like around the S On contract and where that's up to? But who will sign?
Thanks. Yes. Thanks, Graeme. Look, it's been a long journey for us, but we've made excellent progress with Eskom, And it's taken been engaging with Eskom for around 5 years on resolving what initially was a dispute over the term, But then we realized that this needed to be resolved commercially. So what we have landed on is we've got an agreement with Eskim around a new tariff structure for Hillside, Which is very similar to the way that we structured Moselle, which is essentially a fixed rand Price contract for all three potlines, so unified contract for a period of 10 years with a it's Got a PPI escalator on that.
I think just so with that in the process, we've got agreement with Eskim. It's been through their internal process And it was submitted to NURSA, the energy regulator in the beginning of January. They theoretically have 120 days to assess that. What is also pleasing and partly why it took so long to ultimately get to NURSA is that the regulator had asked the DMRE for an updated long term incentive tariff policy for them to assess this against. And that was released also in around November.
So that's all available now to NURSA to determine. And I think pleasingly, this agreement is in line with that. So we should see very low level of Anxiety because it will be aligned to that policy framework. So we feel quite good and we expect that to be delivered in this half.
The other thing you dropped And how much Sorry, Miles, keep going.
I was just going to say how much What's the relative cost differential of the power that you'll be paying under the new contract versus the current contract as the world looks today?
So Tim, it's already embedded in there at the moment because of the interim agreement, so you're seeing that. The way I think about it in broad brush strokes, as Michael described it, is think about the MOSELL kind of cost of contract that's similar around that.
And Mark, maybe the one thing that makes it really hard to determine is because you are moving away from A contract that was U. S. Dollar denominated and linked to the price of the LME price To a fixed RAN based, it actually is very volatile from periods depending on where the currency is and depending on where The process with the yes, the LME process.
Miles, probably the other one where Tony, when Talk about portfolio, obviously, is the work we're doing on exploration, but probably more importantly, both Hermosa and Ambla Metals It's a rebalance of the portfolio for base metals. And there's a couple of drivers for that. Obviously, one is around the demand supply fundamental. As you know, those are the kind of products that are used more, if you like, in the decarbonization and greening. But I think the other option there is that both new operations That certainly gives you the opportunity to have a much smaller, not only environment footprint overall, but obviously an impact on Climate, for example, we've been looking at things and tests around battery operated trucks, electric equipment underground with Sandy.
So they will bring those kind of benefits. And obviously, the other one is some of those will be used, silver and solar panels from Taylor. And if you think about Clark, that's the zinc manganese oxide resource, And that certainly tilted towards the manganese sulfate monohydrate, which is a precursor to the battery market. So I think that helps Sort of move the portfolio away from those heavy and processing intensive industries to those metals that are more suited to that growing demand and that opportunity.
Okay. Maybe it's always good to hear your views on the manganese market. Obviously, we've seen a bit of A recovery in the price and how sustainable do you think that is as we look through the rest of this year?
Look, it's an interesting one because Obviously, we had a slide in the pack as we always do about some of the markets that matter to us, and manganese is certainly one of those, and you'll see that's in the pack Towards the back end of the pack, it's actually on page just bear with me for a second. It's on page 28 of the pack. And what we're really showing there, I guess, is the continued chart that Showing in the back, but maybe before we touch the chart, if we just touch on the themes, global supply remains tight despite the rebound, which is providing support So, actual all, if you look at calendar year 2021, the outlook will be driven by supply with alloy demand expected to remain strong as steel production Long term, our view hasn't changed that the marginal cost of production will be set by supply transitioning underground over time. But probably the really informative chart that we show down the bottom is, if you look at the bottom right hand slide, you'll actually see in that space That what you do see is while the stockpiles, which is the gray back area, have increased in China, the reality is the pork consumptions in months Haven't moved up the same relativity and that's really driven by that comment we've made over the last couple of years where you've seen the Domestic product really fall away, if you like, in China, and they are heavily dependent, if you like, on the imports.
So as a consequence, support stocks have gone up, but if you look For consumption in months, it's not such a big jump. Clearly, what you have seen in the last couple of quarters If you actually see in the seaborne exports recover, particularly coming out of COVID, and particularly you see the jump between quarter 2 calendar year 2020 The quarter 3 calendar year 'twenty, we've actually seen, if you like, on the South Africans come back in a relatively big way. I think trucking out of South Africa probably jumped from 20% the prior year to about 40% this year as people continue to look at for those opportunities.
Where do you see the marginal cost now, the support level?
Yes, look, we'd still say the marginal cost Where you are today will actually be driven obviously by the trucking costs and that is still very dependent on your position on Rand and the grade It's actually coming out. From our perspective, we see that we generally talk about somewhere between the $4 to $5 That's probably sitting around the $420,000,000 $450,000,000 at the moment depending on your view on currency. And that's $44,000,000 if equivalent.
Yes. Great. Thank you.
There are no further questions at this time. I'll now hand back to Mr. Kerr for closing remarks.
Yes, look, thanks very much and thanks everyone for your time today. I know it's a busy day ahead and it has been a busy day for many of you. Look, what I would leave you with the comment is it's great to see a Strong operating performance in the teams, again in this 6 month period, which I think is building a strong track record. We're really pleased to see some of our key commodities that have Under price pressure for probably the last 12 months have very much turned the corner at the start of this calendar year, which is always a positive. But I think Our strong balance sheet, our ability to increase shareholder returns and the fact that we have a couple of key inflection points with momentum around that portfolio With the divestments and project progress, I think is important.
And I think that positions us well to be in a great