Q: What is the status of the Buller Project and its key milestones? A: The Buller Project application was submitted under New Zealand's fast-track process on August 21, 2026, and confirmed by the EPA on August 24. The project aims to produce 1.1-1.2 million tonnes per year from about 90 million tonnes of additional resource, with relatively low startup capital of about NZ$100 million. The assessment period is expected to take 140-160 days, with the first conveners meeting anticipated in early October. The company expects to receive all mining permits and resource consents upon completion, likely by late 2026 or early 2027, with production targeted for late 2028 into 2029.

Q: What progress has been made on the Tanas project in British Columbia? A: The Tanas project has submitted its environmental significance application, which has been accepted for assessment. The assessment period is a fixed 150 days, followed by a 30-day decision period, totaling 180 days to a decision. The company expects a positive decision by January or February 2027. Following the environmental certificate, there is approximately a nine-month process to obtain a mining permit. The project targets about 750,000 tonnes of semi-soft coking coal annually, with a low strip ratio of less than 4:1, startup capital of about $140 million, and a post-tax NPV of around $270 million. Production is targeted for 2029.

Q: How did the company perform financially in FY2026? A: Revenue was in line with FY2025, and the company achieved EBITDA of $45 million, at the top of its guidance range of $35-45 million. Consolidated cash decreased slightly to $145 million, primarily due to spending on growth projects including Tanas, Buller, and joint venture activities. The company reported a net loss of $5 million, down about $9 million from the prior year, largely due to project development costs and a write-down of remaining assets, mainly waste advances at Takitimu.

Q: What is the company's capital management strategy and hedging approach? A: The company has historically paid dividends and conducted share buybacks, but current focus is on maintaining sufficient capital for safe and profitable operations while funding growth projects. The company maintains zero debt on its balance sheet, aside from some yellow goods financing. On hedging, the company locks in about one-third of overall production, including both export pricing and NZD/USD exchange rates, looking up to 12 months out. This approach aims to reduce cash flow volatility and lock in profits when attractive parcels are identified.

Q: What are the operational details and remaining mine lives across the New Zealand operations? A: The company operates four mines in New Zealand. Rotowaro has about 2.5 years of life remaining in its current form, with a potential growth project awaiting a customer. Maumarua recently received consent for the M2 extension for another three years at 180,000 tonnes per year. Stockton has about three years left in its existing holding and is the subject of the Buller project expansion. Takitimu has two years left and is heavily focused on rehabilitation while producing remaining coal. The company is also reducing staff at Takitimu from 25 to about 12 people as operations wind down.

Q: What safety initiatives and improvements have been implemented across operations? A: The company experienced a number of low-level incidents across operations during the year, which was disappointing. A complete review of the field leadership program found the program was working well but underutilized. Key changes include rewarding quality over quantity of safe work interactions and making participation mandatory rather than voluntary. The company also completed an extensive upgrade to its training system, consolidating all records into a single database for greater transparency. Two mines have begun rolling out e-learning, and a critical risk program has been running for about six months, with one mine remaining to implement it.

Q: What is the outlook for metallurgical coal markets and pricing? A: Export pricing appears relatively flat but at good levels, with forward pricing around $260 per tonne 12 months out. Current demand drivers are coming from China, which has seen significant import increases following major mine safety incidents and subsequent production cuts. India is experiencing a seasonal drop-off in demand due to the monsoon season. Longer-term, India is expected to be the major growth market for international coal as new plants and coke ovens come online over the next couple of years. The company anticipates another positive year in FY2027, heavily dependent on international coal prices.

Q: How does the company view its asset backing and investment proposition? A: The company highlights a strong balance sheet with $152 million in the bank (NZ terms) as of end of July, zero debt, and anticipated EBITDA of $30-40 million for the coming year. Net asset backing is $1.48 per share in New Zealand terms. At the current share price of $0.45, the company has cash backing of $0.53 per share and asset backing of $1.23 per share. The company emphasizes that metallurgical coal is increasingly recognized globally as a critical mineral in short supply, and its portfolio is positioned to double coking coal capacity at the Bathurst level.

Q: What are the next key steps and timeline for the Buller and Tanas projects? A: For Buller, the immediate next step is completing the fast-track completeness assessment, with the first conveners meeting expected in early October. The company will then update the PFS to a DFS level and may begin early works in the second half of FY2027, including geotech and road designs. For Tanas, the company awaits the environmental assessment decision by January/February 2027, followed by a nine-month mining permit application process. Both projects are expected to begin production in late 2028/

For the complete transcript of the earnings call, please refer to the full earnings call transcript .