Good afternoon, everyone, and thank you for joining the Mitchell Services fourth quarter quarterly update. My name is Alan Chair at Bridge Street Capital Partners, and today we have Nathan Mitchell, Executive Chair, Andrew Elf, CEO and CFO Greg Switala to talk about the update. This is being recorded. I'm going to let Andrew go through the update, and then we'll have Q&A at the end. Over to you, Andrew, thank you. Thanks very much, Alan, and thanks everybody for jumping onto the call. We appreciate the interest. I will just run through a few key points. It won't take more than a minute or so, and then we'll open it up to questions, as we usually do. Certainly, you know, Nathan, Greg, and myself are welcome to take any questions you may have. Just on the quarter, look, a solid quarter, but really the theme was the shine was taken off the numbers by the client incidents that occurred in that quarter. Importantly, both of those projects are now up and running again, which is good. The previous jobs that we've spoken about or projects we've spoken about that ramped up throughout the year did start delivering strong results for us in the fourth quarter, which will then flow on into this financial year, which is positive. The team did a good job managing the working capital in the last quarter. Obviously, that cash conversion rate well over 100%, and associated net debt level down quarter on quarter, materially. The Loop business update up the top on the last page there, a significant growth opportunity for the business, and pleasing to say that the first programs completed went really well. We're now got a second contract that we're working through the relevant engineering with the client, with the view to drill later this calendar year. It's always going to take time for that business to come on and develop. We do make the point there it's in its early stages, but, again, nonetheless, it is an exciting opportunity for us. At the end of the quarterly there, we talk about the outlook. It's pretty straightforward. Gold prices are strong, quite high. The outlook's positive in that perspective. From a coal perspective, probably fair to say it is a challenging market, and certainly we're happy to take people's questions on that regard. There's also a table there of the yearly results, and how it's going to wound up the year a little bit. Al, we'll probably hand back over to yourself and open up for any questions people may have. Perfect. Thanks, Andrew. The first question, for Daniel. Can you provide an indication of what June quarter EBITDA would have been without the impact of events at Oaky Creek and Lorimier North during the quarter? I might take that one. Look, I don't think we wanted to try and pull individual contracts apart and sort of disclose individual gross margins and EBITDA margins by job. I think the best way possibly to look at it is Lorimier North was a two-rig operation down for about two months and Oaky Creek down for a full month. You know, that by definition is sort of 60 shifts and 120 shifts, and you could possibly make your own assumptions around previously disclosed revenue per shift and normalize sort of EBITDA margins. From my perspective, I don't think we'll pull the individual contracts apart and disclose that. I don't know if anyone's got any different views. Yeah, no. Thanks, Greg. Looking ahead to FY 2026, do you anticipate any further material investment in working capital over the year? Is the level of inventory on hand at 30 June, $13.6 million, reflective of ongoing requirements for the current bulk of contracts? Yeah, look, I think, Greg, you might want to say a few words too, but I think the inventory should be equal to or less than in the year ahead. I think we've got, you know, we've ramped up new contracts. Some of them are remote. We've made that point in previous communications, as those jobs sort of get going, and we understand how it's going and some of the supply chain aspects. We hope that we can manage that inventory level, and at a minimum, keep it where it is, but hopefully reduce if we can. Thanks, Andrew. Just with the Loop business, do you think loop-related earnings will be higher in FY 2026 versus FY 2025? Yeah, only on the basis that the initial trial that we completed was a fairly small one, and the trial that we're currently working on is a little bit larger. Therefore, if you go, you know, that contract standalone last year, this contract standalone this year, the results should be better just on the basis that it's a, you know, a larger trial project, notwithstanding the fact that there's other opportunities that exist as well. Thanks, Andrew. I guess the next question relates to sort of capital management. Maybe high-level element of thoughts are dividend buyback. What your thoughts are? I think, you know, you can see the numbers there, 2025, 2024 difference. It's hard to say, but I think dividends is not is the it's probably going to be off the table till we can, you know, while we'd like to be able to say that this dividend's coming, I think, we'll look at it. Based on the current numbers, it's difficult to say that there's significant cash flow to be able to pay, you know, high dividends. Yeah, that's right. In the last, on the last page of that quarterly again, we make the point that we have renewed the share buyback, and we also make the point that if the share price stays down at current levels, which is very low in our opinion, it may represent better value for shareholders to buy back stock rather than pay dividends. Also, on the basis of the current time where we've used our Franking credits too. As Nathan says, that's a board decision, but we just got to make some good numbers and some good cash to give the board the opportunity to make those decisions. I think it's too early in the year right now to be saying we're paying dividends. I'd say at the end of this year, 2025, there's not a lot left in that to do it this year. We're too early in this year. I think this year's got a long way to go. I think, let's see how it pans out over the next couple of quarters. Thank you. Thanks, Nathan. A question from Nick, obviously back on the Loop business. Maybe worth explaining again, more detail about the Loop business. Are you a new entrant, I guess, to the existing segment, or has the segment not been operated in a way before? I guess what's the main features, and the attractiveness, markets, etc., that you can achieve? Yeah. It is a new segment. It is a new market, and therein lies the opportunity. Obviously, Nathan was at the forefront, you know, of the emerging coal seam gas industry back in the day, and there's some similarities with that here. It takes time for a new market to be developed. It will be choppy. It will be stop-start. There'll be trials before there's longer-term contracts, and that's the stage that we're currently at. What this business does is provide, as it says in the quarterly, an end-to-end decarbonization solution to clients to reduce their fugitive emissions under that Safeguard Mechanism legislation in Australia. The long and short of it is, we do a lot of work in underground coal mines. We drain the gas so those mines can be operated safely. The gas that exists within a coal seam still exists in a coal seam for surface operations. The aim here is to drill that coal in advance of mining to drain the gas so that it doesn't emit up into the atmosphere when the mining's undertaken. The fugitive emissions is the output of gas from that coal into the atmosphere, and there's a requirement under that legislation for coal mines to reduce their emissions year on year. If they don't, they pay a tax. The whole premise of this business is there's an opportunity to reduce your emissions, and hopefully pay less than the tax. For others, there's an imperative from a social perspective to reduce your emissions, and it's also feeding into potentially government approvals for PID extensions, environmental approvals, things like that. Rather than just buying carbon credits, you're actually seen to be managing your gas in a more active manner. There's obviously potential to use that gas downstream for benefits for the economy, power, trucks, the list goes on. Effectively, that is a new market. It hasn't been around before. The opportunity has come about because of that government legislation. Certainly with the federal government, Labor winning, you know, in a pretty strong manner and looking like they're going to be around for a while, I don't think that that legislation is going to change in any way. I think, you know, the opportunity is there, but it would just take time for it to come on. Obviously, we're working with Talisman, who are a 50/50 owner in that business. Really what it does is from the very start of engaging with a client, understanding, you know, what is your gas content, how much gas have you got, what does your coal look like, what does the drilling plan look like, how do we engage with people to work in a pit through to the drilling, through to managing the drainage of the gas, gathering gas, and then potentially partnering with downstream providers. You know, it is a full solution from start to finish. Some of these surface coal miners have never had to manage or deal with gas before. It's a very limited niche skill set. It's highly technical work, and it's a great opportunity for us, but it'll take time. Nathan, I don't know if you've got it. Yeah, no, I totally agree. I think it's a really good opportunity for us. I think it's, you know, and as Andrew just said, I don't think the government's going to change their requirements anytime soon. I think there's a very big opportunity downstream to do something with the gas. I think it's early days at this stage, definitely. Obviously, we're the only player in the market, and I think it's going to be interesting to see what happens with this first project and the second project. I think that will also then dictate to other mines how they go about it. We'll learn along the way as well. It's not just the drilling, it's also all of the other infrastructure that goes with it, the management of the gas and whatnot. I think it's a really good opportunity for us. Thanks, guys. Just more on the loop again. Obviously, you mentioned there's a second client coming on board. When do you think you'll need to begin contemplating acquiring new rigs for this segment? I think the plan at this stage is to use the rig we've got for this second client toward the end of the year, and then to reassess any future rig purchases in the second half. Yeah, I think we just want to use what we have rather than spending more CapEx. The equipment we've got is very good. At this stage, I think we'll try and squeeze as much out of the equipment we have at the moment. Yeah. You know, if people are just in that trial phase where they're going to be drilling for, you know, a number of months, you sort of try and stack them up together. If Greg wants to do a trial for a few months and then Nathan for a few months, you're not going to go and buy a rig for each. You'll try and line them up so you can keep that one rig busy. When it gets a bit more momentum or if someone commits to a longer-term project, you then consider additional assets. Certainly, try and, as Nathan says, get the most out of the rig we've got. Thank you. Okay. A bit on PNG. Can you give an update on the current status of PNG from a drilling perspective and operations? Is there an update there? How are you going? Yeah. It's been a slow start, as you would expect in PNG, but I couldn't be happier with where it's at. Both of those rigs started double shifting in mid-late June, hitting the new financial year, double shifting. Production is very good. Safety is very good. Client's happy. It is making a return. Thanks, Andrew. Someone from Dehr. I guess with the balance sheet in a very strong position, and capital management in focus, how are you thinking about potential M&A by 2026? I think we're always on the lookout and people are always approaching us. That hasn't changed. We're actively always looking, and as I say, actively, people are coming to us. We're just prudent about which ones we look at and we do the right amount of DD. I think that's just beta complete. We always are looking at some opportunities outside of, or that aligns with, the skill set that we have. Thank you. Just on the gold sector, obviously, with the size of gold sector strengthening, converting to new custom inquiries, how is labor supply for skilled drillers at present? Are you expecting another year of modest wage price escalation in FY 2026? Yeah, I think it's probably fair to say the worst of the inflationary pressure that we've seen is behind us. The gold sector is busy. I think modest increases is probably a good word, Greg. I think we will see increases, but I think they will be modest. We're certainly not forecasting anything to run away or any critical shortages or anything like that. Yeah, I think in the immediate short term, you know, Fair Work have come out recently with a wage increase of 3.5%. That 3.5% will apply to a portion of the workforce, you know, sort of at the lower end or, you know, at award rates. To Andrew's point, the section of the workforce that bends above that rate, you know, probably less than that 3.5%. For a blended rate of sort of three, sub-three, thereabouts, based on what we're seeing so far. Thanks. Next, guys. I guess on the topic of gold, and obviously where the price is, can you comment on new client opportunities in the gold sector? Or are any clients coming from existing gold clients? Sorry, I'll just read the screen again. That obviously the pipeline is stronger in gold than it is in coal. Needless to say, that just hangs together with the commentary in the quarterly. We've obviously got a very good presence in that Victorian gold market, through New South Wales, and sort of a couple of rigs in WA and NT as well. Again, there's existing clients that have opportunities where they increase their budgets and their spending and want to increase rig count. Similarly, there's new clients that are either smaller exploration style clients that get funding, and then at new mines, people drilling out a deposit and things like that. There's a bit of a mix of everything in that gold space. Certainly a positive outlook versus the coal at this current point in time. Got it. I guess that probably morphs into a part two of that same question. Obviously, with the commodity mix being gold and coal, do rig opportunities in gold in the coming year offset any rig reductions in coal? The group realization will stay largely flat. It's the million-dollar question. I mean, it's never that linear. It's not like something stops here and it starts here straight away. It's always a bit of a mix. That's the challenge we face, the rig utilization. We've said in previous meetings we were hoping that it was heading up in the right direction. I think the coal side of things has made that a little bit more difficult in more recent times, but certainly the opportunity remains within the gold space. We've got rigs that can move between both sectors, which is important, so we can service both sectors with the equipment we've got. That's exactly what we'll do. Will it offset exactly? You don't know. You hope so, and we're certainly going to be disciplined with our bidding, disciplined with our pricing, and put rigs out where it makes sense to do so to get a good return. Thanks, Andrew. Next question for Jason. Bear with me here while I read this a bit longer. As of the end of the quarter, the number of active drill rigs appears to be around 67, 68 compared to an average of 72 active rigs throughout FY 2024. This is despite the company having a fleet of approximately 90 rigs. It is evident that the company's profitability is closely tied to sustaining a utilization rate of 65- 68 rigs. Such small fluctuations of drill rig impacts bottom line financials exponentially. Beyond a potential recovery in the coal market, what strategies does the company have in place to increase the number of drill rigs under contract? Thanks, Alan. I might deal with the first part of that question. In terms of strategic direction, the last part, hand back to Andrew. I think whilst I can acknowledge why that would seem to be the case at face value, there's a little bit more to it than that. It wasn't simply a case of going from 72 and dropping four rigs to 68. In reality, as we've outlined in previous quarters, there's been a decent reduction in certain areas. The company's pivoted pretty significantly to win a number of new contracts. Although on face value, it looks like it's just a simple four-rig decrease, there's been a lot of moving parts with a lot of ramp-up mobilization in new service offering areas as well as new jurisdictions. Don't think it's can the business be profitable at sort of 65- 68 rigs? Absolutely. It just needs a little bit of stability, and absence of that mobilization, demobilization. The flip side to that and the positive with all that is you can sort of see the leverage that is in the business as well, when it does get back to sort of early 70s and a big portion of that revenue dropping back down to profits. I think, in simple terms, the company can absolutely be profitable at those lower levels. There's more to what's happened in the last 12 months than a simple four-rig drop if that makes sense. Yeah, and from a BD perspective, it's really a case of, you know, we've got some fantastic business development people in the business, and we're well aware of what's coming up, where, with who, in our respective markets. We've done a great job rewinning existing contracts and winning new ones. As Greg said, we certainly enter this year with a very high percentage of work contracted. I think higher than we ever have, to be honest, which is a real positive. I think there's some great work that's being done. I think our business development is strong. Again, to a degree, the market's the market. It's not always easy. Please rest assured we are absolutely, you know, hungry and do everything we can in the BD space. That's for sure. Thanks, guys. Next question. Basically, every indicator over the last year has turned into doubt. I appreciate there are things beyond management's control. What are your expectations for the year or this year going forward? If we don't have three or four underground coal mines have incidents and there's less rain, we're better straight off the bat. The rigs that we have won and have put out to work have had the money spent. To Greg's point, they're up, they're running, they're profitable. We're better straight off the bat. You know, again, what do I expect? Better than this year. We really want to do better than the year we just had. Certainly, there are things out of our control, which is always disappointing, but that's business. I think we've got a good team. We do a great job. We control what we can control really well. If we do that, keep doing that, and focus on the right things, I think we can, you know, we can do better and we should do better. Fantastic. Last question for now, I guess from Glen, guys. From a margin perspective, are the competition drillers cutting prices to do work, for example, coal area? Hence, forcing you guys to trim margins. Any pressures, I guess, is the question? I think that's just the course of this business. You know, when the market goes up, the market goes down. Obviously, the coal industry is flattening. The coal guys are obviously, you know, the royalties haven't helped them. We all know that. I think we're, as investors, we look at the coal industry and see that they are doing a bit tough with regards to prices and royalties. That is a softer market. Obviously, we've moved out of that market considerably. The guys have done an excellent job to move sideways into the gold market, into the minerals market. Obviously, it costs time and money. We said that in the last quarter. Certainly, prices are not going to be at the highs. Luckily, we are not dropping our prices. We're just not that sort of business. We don't need to drop our prices, and it hasn't really moved that much in essence. The gold guys in Western Australia are keeping the prices up, and so there's still a demand in Western Australia. They're moving, but not to the point where we see real risk for the business. Yeah. If you're dropping your rates, you're not making enough money or margin to then have a sustainable CapEx program to rebuild and keep your rigs in good shape. You're effectively going cheap and eating yourself. That's not something that we're prepared to do. We're doing things right, be disciplined, and then right-size that office and support functions accordingly. It's worth noting, over 80% of our revenue is for global mining majors across coal and minerals. We're operating on very good mine sites, lowest on the cost curve, drilling's required ongoing through the cycle. There are some excellent clients we've got. We certainly do a lot of specialist drilling, and that is very technical, less competition, good margins. That includes some of the geotech work we've done where we've worked on Melbourne Metro, Sydney Metro, Snowy Hydro, and the list goes on. There are all sorts of things we're trying to do to improve our margins all the time. Loop technical drilling, geotech technical drilling, some of the mine services work. Again, it's a good brand. It's been around a long time, works for the right clients, does a very good job. Just be disciplined and take the right opportunities when they present themselves. Fantastic, Andrew. Nat, thank you. That was the last question. If anyone else would like to ask one more question, we can answer that. All right, Andrew. Again, thank you, Nathan. Great, guys. I appreciate it. Just note that all calls are recorded, and I will reach out to you guys individually for any further questions. As Andrew noted, obviously, QVA covers the stock as well as Morgan. Any further questions, happy to answer them. Guys, thank you. Thank you, everyone. Thanks. Thanks, Alan, for having us. Thanks for your interest, everyone. Nathan and I will be up at the Noosa Mining Conference in a couple of hours for the next couple of days. If you're at that Noosa Mining Conference, come and say hello. Thanks, guys. All right. Thank you. Thank you.