Okay. Good afternoon, everyone. Thank you for joining today. My name is Allen Chan from Bridge Street Capital Partners. Today we have Mitchell Services for their fourth quarter quarterly. Today we have Nathan, Executive Chair, Andrew Elf, CEO, and Greg Switala as the CFO to talk about the update. Over to you, Andrew. Thanks, Allen. Thank you very much for having us. Thanks, everyone, for your interest. Look, as per the usual format, just be a handful of remarks at the start. Nothing too long. Really, the purpose of today is to open up to questions and give everyone the opportunity to direct some questions. Obviously, we're lucky enough to have Nathan Mitchell, our Chairman, with us as well. Look, just a few points, obviously, a strong Q4. Importantly, a really strong financial year for us. Obviously, EBITDA% strong, and that's flowing through down to the final NPAT figure, which is expected to be about AUD 15.2 million, subject to tax being finalized and release of the results. Obviously, the balance sheet has continued to strengthen. We were in a net cash position as at 30 June. That certainly gives us the ability to have some optionality in the business. I'm sure Nathan will talk to that in the questions. Obviously, some very strong operating cash flow during the year. Commodity-wise, gold representing circa 60% of revenue versus coal 30% for the year. Still making coal. Obviously, we've sort of made the point as well that we believe rig count has bottomed out. We exited the year at 65, which certainly gives us the ability to grow further given the fleet that's available to us. Capital management, obviously, Nathan's here. We had a very strong dividend at the end of the first half. Nathan can talk about some of those thoughts that the board or he may have. The Loop business is currently drilling for its second client. That project is going well. It's still early days with that business. It will take more time, as we've said to people, but it certainly does give us an option for growth. Then on some of the metrics, without touching on them too much, very pleasing to see return on capital sort of 25%+. I think that's an excellent number. Really a great effort from all of the team to deliver that. Last week, just to finish up, last week we were all up at the Noosa Mining Conference, which is a fantastic conference that we attend every year. There was actually a good paper from one of the analysts out there. I think the title was Drill, Baby, Drill, and that was really the theme. It was people are well-funded. They've raised money. They're putting the money into the ground. We're starting to see that come through. Rig count is increasing, certainly I think the bookings for the rigs moving forward look fairly healthy, and we can see that rig count continue to increase throughout the first half. The business is in great shape. The team's doing a great job. We're very thankful for all the work our clients give us, and we're doing our best to provide a good service to them. Balance sheet's strong, and options available to us. Really, really pleased with where we are and importantly, where we're going. Nathan, I'm not sure if you want to add anything or just go to the questions. I certainly reiterate what Andrew said. I think the team's done an excellent job. Another amazing year. Again, as we've said, we've come through the coal downturn and accelerated into the mining boom. I think the team is on the up and up. The numbers speak for themselves with regards to last year versus this year. As Andrew said before, we paid a great dividend first half. We'll pay another dividend second half. That number yet, I'm not sure whether I'd release that number as a sense wise, but there will be a second dividend for the year based on the numbers we're looking at. I think from an opportunity point of view, we've sort of wound down the coal or the coal has wound down, not us winding down. Essentially, both those mines have now been bought by new owners up in the Bowen Basin. A number of mines have traded hands over the last sort of, I don't know, two months in the coal sector. That's an interesting space. We're certainly not reliant on it. We've sort of moved our business model into the minerals, and that's been great for us. We're seeing that growth in the minerals, and we're expecting that to continue to grow into this half and the next half. Minerals, as Andrew said before, is strong. People have raised a lot of money at AUD 5,000 an ounce. Exploration is strong on the East Coast. That's also strong in the West Coast, not that we do a lot on the West Coast. Overall, we're, I think again, in a very good position from a debt point of view, and from a rig allocation point of view. We're now sort of well and truly evened out across the Eastern Seaboard, about 30/30/30 between Victoria, New South Wales and Queensland, and N.T. We continue to look at opportunities all the time. I think our balance sheet's very good. Our share price is low. Our balance sheet is strong. We continue to look at new opportunities going into the new year. No. Beauty. Thanks, Nathan. Might open it up for questions. Allen? Yep. Fantastic. Thank you, guys. I think the first question's been answered by Nathan in regards to capital allocation. I think just to reiterate, there will be a second dividend. Just a matter of the number. Second question. Any issues you are seeing with fuel supply, either clients or Mitchell Services itself? Just before we move on to that one, on the capital management side, I think Nathan's been pretty clear with everybody on these calls. Correct me if I'm wrong, Nathan, but it remains the same. You'll decide to allocate the capital to growth or. Yeah. Dividends. I just want to maybe touch on that. No, that's true. We're still seeing growth in the sector, we are looking at opportunities around growth. It's not just a pure dividend play. We still believe that the shareholders deserve a dividend when things are looking very good. Certainly, we are also looking at growth and growth opportunities. Again, the allocation is obviously we don't have any debt at the moment, there's no allocation to debt. The other levers we've always talked about is obviously share buybacks, dividends or growth. I think what we're looking at at the moment is growth and dividend. No, that's really good, Nathan. Thank you. Obviously, as Nathan said, it's the intention of the board to pay a dividend. It'll be fully franked, the quantum of the dividend will be announced when the full year results are released in August. As far as fuel goes, no issues. We've got a little bit of our own contingency supply in some of the yards that we have. It's generally client provided. Our clients are obviously a lot bigger than us and better access as well. No issues to date. A majority of our contracts are client provided fuel. In very few instances do we provide the fuel. Where we do, it's generally on a charge back basis. If the, not just supply, but if the price increases due to unforeseen circumstances, then from a profit perspective, our exposure will be really limited to lubricants and things like that. More so hydraulic oil and things like that. The fuel is okay. Thank you. Next question. Can you make some comments on new business pipeline and whether you would expect rig counts to continue to rise over the course of FY 2027? Yes. I think Nathan touched on that just then. I think we do expect the rig count to increase through the first half. Then we'll reassess what we're seeing in the second half. We're never going to sit here and say it's going to go from this to that, and there's this many here and that many there, because you're never going to be right and it's going to change. Certainly I think as Nathan said, with those companies that have raised the money, they've raised it already. They've gone through the approval processes. We're seeing tenders come out. We're seeing tenders get awarded, commitments are being made. Rig count will increase through the first half and we're certainly very busy. Thank you. A question from Peter. Obviously well done on the great year. As you previously forecast, CapEx was a fair bit higher second half, first half, although similar year-on-year. Is that $21 million basically maintenance CapEx or does it include any growth CapEx? Do you expect that to be relatively consistent in future years? Thanks, Allen. The $21 million for the year obviously was very similar to last year and primarily maintenance CapEx. I think the first half second half split was really just a function of timing in terms of when that work needed to be done. That said, there was one new rig to service a new contract that's included in that number. A very small element of that was growth in the form of that new rig. Probably a little bit difficult sitting here in July to be putting firm forecasts on a CapEx number for this year. I think broadly work on a similar number. There is obviously a very strong tender pipeline, and subject to the success of that. We may need to sort of bring some of the maintenance CapEx forward a little bit, probably too early to sort of give a firm number at this stage. Thank you, Greg. Our next question from Karim. There's a few parts here, gentlemen. Can you provide an update on Moranbah North and Grosvenor? His understanding is Moranbah North has been reopened with Mitchell's rigs working during Q4 FY 2026. How of an impact could be the restart of Moranbah North? Has the company any terms or rigs in earnings? First part. Yep. Anglo, since they've had those challenges on those two respective sites, have kept pretty close to their chest where things are at. I think they really haven't released anything publicly That gives anyone any great guidance on what's happening. As Nathan said, there's a sale process that is being undertaken, obviously. What we can say is that the intention of the new owners and Anglo was obviously to restart those mines and get going again. At the moment, we've got one rig operating at Moranbah Underground, and we've got no rigs operating at Grosvenor. That's probably about as much as we can probably say, Nathan. You go back in time, we had three rigs at Grosvenor, we had four rigs at Moranbah North. It's one rig across the two sites instead of seven. Will it return to seven? We don't know. We have no idea. No. Thank you. Part two. How many unused non-coal rigs do you guys have left? What are the prospects to put these to work? Look, we never sit here and talk about individual rig counts. If we sat here and said, "How many underground mineral rigs are here and how many service rigs are here and how many this are there?" You'd just sit here picking it apart for hours on end. The best way to think of it is there's this many in the fleet, there's this many running at June 30. Count's going to increase. We're very open in the quarterly at the average revenue per year per rig. You can make an assumption on operating rigs and times it by the number. Obviously, you can do the math. We had seven running across two sites. We're now down to one. There's six rigs, and three of them were damaged, obviously, with the Grosvenor event. There's some basic numbers there. If opportunities come up, we'll be disciplined with the bidding and take advantage of them if they come up. Thank you. Can you also provide an update on what is viewed as an optimal balance sheet to be at year-end? The company had entered a net cash position. Does the company aim to be debt-free going forward? I think the answer to this is very similar to the comments by the other gentleman in terms of the overall capital management structure and strategy. Obviously, on a long-term basis, the business would look to keep it as low debt as possible, but it is going to depend on growth opportunities that may present themselves as well, and we've certainly done that in the past. Leveraged up to a fairly conservative level, but then demonstrated that we've got the ability to pay that down. To the extent that those opportunities present themselves, we'd certainly look to use debt to fund them. Fair to say the company's probably in a bit of a harvest phase now. We've seen that with a dividend at the half year and the likely dividend at the full year, and debt's going to remain low to zero in the very short term. that can obviously change based on growth opportunities that present themselves. Thanks, Greg. I think we spoke about capacity, so I'll move on to the next one. This also maybe add to the coal view, Andrew, guys. You said the revenue for some of the large coal clients are half of what they've been historically. Do you see it getting back to those previous levels in FY 2027? Maybe add to that just your view on the coal sector, I guess, and how you're seeing it. I don't think so. There's definitely transactions occurring, that will take time to wash out through the industry. You've had a number of coal mines that have gone into receivership. That transaction's occurring, that takes time to wind through. There may be start-ups in 2027, we're not budgeting for a sudden inrush of work in the coal sector in this year. It certainly could happen in 2028. A lot of them were going obviously bad, gone bad, are now being picked up. There will be additional work coming on at some point. Again, we're not budgeting that work. No. I agree with Nathan. I think the best way to think of it is the miners that are out there are doing the bare minimum. There's nothing they're doing that they don't need to do. It's just the bare minimum. Do we see it bouncing back? As Nathan said, no, not this year. When it does, it is an opportunity for us. If that bounces back and more rigs are operating in that sector, it's obviously an opportunity for us when it does bounce back. I certainly think we've got a very good year ahead of us with the business where it is at the moment. If they're buying the mine, they've got to keep it going at some point. There's gas in those mines, so they have to be drained. They have to be safe in order to continue to operate. They will require ongoing drilling that they had. Greenfield, new exploration, I doubt very much. Maybe one or two mines here and there. As long as the coal royalties stay where they are, I can't see new mines starting up anytime soon. It'll be more around the restart of existing mines, and their ongoing production, maintenance, drilling, which will have to be done. Thank you. A question from Nisar. Are lower margins during the quarter due to mobilization and demobilization costs? Primarily, yes. Andrew makes the point in the letter that the rig count sort of troughed in April. It was about 59% at the time. We exited obviously with 65%. Six rigs, mobilization over a two-month period is fairly significant. That obviously does come with the usual sort of mobilization costs in there would be the reason for the slightly lower margins. Right. Thanks, Greg. Any comments around performance of the specialist Geotechnical drilling this year? No, other than probably a lighter year than others. There wasn't a great deal of it. There was a handful of projects, but certainly, a lower percentage of revenue than we've seen in previous years. Again, it's very lumpy. It stops, it starts. The opportunities come, the opportunities go. You take it when you can get it. There's opportunities in the pipeline, but nothing really to note. Good. Thank you. A question from Issam. Just on the rig increase. Rig increase, we saw that from clients in Gold, mainly. Probably just to confirm that. Yeah, I think when the full year comes out, investor preso have a full breakdown of commodities. Again, I would just divide the average operating rig revenue by that, the relevant percentage of revenue this year, and last year, and you'll get a bit of a feel for how gold has contributed to the movement. Cool. Thank you. Again, from Issam. On new contract awards, obviously at the end of the first half result, we had verbals for 10 rigs, six new and four at existing clients. Any update on that? Four rigs is signed, rigs out and drilling before Christmas, hopefully, with no delays. Six rigs close to being signed. Obviously you're not going to say who it is or where it is. Those rigs will start at the back end of the year and into next year. Thank you. I'll go to the next one here. Obviously they're longer ones, so bear with me, you guys. Could you please give a bit more of an update on the outlook for Loop? If you feel the shares are undervalued, is there not more of a focus on buybacks likely in terms of the capital allocation mix? I think earlier this year you ruled out transformational M&A, given how high vendor expectations were. Could you walk us through vendor expectations and what you are looking for in terms of M&A that you don't have now? Finally, could you perhaps expand a bit more on what you're seeing in regards to EBITDA, EBIT margins and cost base and cash costs from a lease CapEx and tax perspective? Again, a bit to absorb, but hopefully there's enough there to work with, guys. We'll probably start with Loop. Yeah, okay. Well, maybe I'll start with Loop a little bit. I might let Nathan talk to M&A and acquisitions. Sure. Just hear your views. Sure. Then maybe Greg at the end can just sort of cover off on some margin and cash interest rates, things like that. Look, I think the Loop business, we're being very conservative, purposely with the way that we talk to people about it. I think we don't want to be spivs and be running around saying it's going to do this and it's going to do that, and then it doesn't do it. It is a wonderful opportunity. It is a genuine growth opportunity. We've got a good jump on the competitors. We're proving the concept. We've had a Fortune 500 company invest into that business at a $24 million val. It is taking time. Coal miners are conservative. They don't like change. They certainly don't like having to pay tax and spending money. I think, I am a believer in it, but I think it is going to take time and one thing I would say is that the legislation as it stands, and we actually had a conversation with the board in a meeting we had this morning, was the requirement is for the coal miners to increase their emissions or whoever's, the legislation's applicable to, has to increase their emissions on a compounding basis year-on-year, which means, the tax and liability they have got will increase materially over time. Certainly we are at the very early days of those people being on the ticker. It does not hurt them that much yet. It will start hurting more. Again, would I like things to happen quicker? Of course. Do we believe in it? Yes. Has it got a good growth opportunity? Yes, it does. Are we doing a good job on the contract we are on right now? Yes. Again, as we have said to people on the road when we go around, be conservative. Value it at zero. Have it as a growth option until we can come around and give you a bit more meat on the bone with this many rigs at this cost, running this much at this return. That sort of thing. That is probably what I would say about Loop. Nathan, your view on M&A and. Sure. That sort of thing maybe? Look, I would not say we are undervalued. I would not say we are overvalued. I am just saying that from a capital allocation point of view is that, I think we have paid back something like AUD 78 million over the last four years. I think shareholders like that. We will continue to do that. I think, again, the four levers that we have always had, we will continue to look at those. At the moment, there are growth opportunities that we are looking at, M&A opportunities, growth opportunities. We will never say never, and we are always on the lookout. We are not a company that says we are Stuck in the mud where we are, and we are just going to continue to do buyback and dividends. We have done a number of M&A transactions over the years, and we will continue to look at transactions. To Greg's point before, I think that's what we'll look at all the time and that's why we look at dividends, special dividends, in the first half or the second half, and those might change. I think you can never take it for granted that there will always be a dividend, because we are always looking at different opportunities in M&A. We are astute buyers. We don't just buy for the sake of buy, and we probably also turn over a lot of rocks to find a gem. I think that's worked for us over the last decade. Just because we've had a good year doesn't mean that suddenly we'll overpay for something. If we do buy something, it needs to be something we can see for the future that is a growth opportunity, and not a short-term investment. I think that's where we are on the capital. It's really good, Nathan. For those that aren't aware, some of those things that Nathan's talking to, AUD 77 million is a big swag of debt reduction. Millions of shares bought back at an average price of AUD 37 on, and then some pretty chunky dividends, with more to come. On the transactions side, Deepcore in 2019 into gold, Radco into underground coal, a very good acquisition. Obviously, others at the bottom of the market, assets cents on the dollar. A big organic growth program, levering up and then paying that debt back when we had COVID tax advantages available to us. I think as Nathan says, over the years, some very, very good capital allocation decisions. Greg, maybe just margins, costs, interest rates, your views on that. I think the best way to try and answer this question, firstly, in terms of what we're seeing from an EBITDA perspective, we've publicly called out previously that we try and run this business on a 20% EBITDA basis. That's obviously a pretty strong number. That continues to be the case. I think costs are largely under control. Probably wages, costs, and access to labor, in a scenario where headcount continues to increase is probably the main risk there. From an EBIT perspective, it's probably not linear, to be honest. What I mean by that is there's a level of fixed depreciation in this business, which largely ties up to that maintenance CapEx number. For the sake of your modeling, work on $21 million, or thereabouts. Any incremental EBITDA, given that level of fixed D&A costs, does drop to EBIT margin. You've got to kind of model on that basis to form a view around an EBIT margin. It's not linear, as I say. You can't just take the revenue and call out an expected margin. From a cash cost perspective, the debt's practically zero now, nothing in terms of significant cash outlays for repayment of debt. Probably worth pointing out to Andrew's point, though, that the increased interest rate environment currently, back when we did that organic growth strategy, and the timing's worked really well, mind you. We got access to debt at about 3% or thereabouts for that CapEx. You're probably looking at in the order of 7%-7.5% on equipment finance lines now. The CapEx question I think we've answered earlier in terms of probably a little bit too early on to form an exact number. Tax, just cash tax, 30% or maybe a tick over of the accounting profit before tax. There is still, although to a much smaller extent these days, still a slightly higher cash tax rate in this business given the fact that we did benefit from that ATO instant asset write-off back when we undertook that growth strategy. That has continued to unwind, and it's not nearly as severe as what it once was. Maybe 32%-33% cash tax margins to take into account that. I hope that makes sense. Sorry. Great. No, a lot there. Thank you, guys. We've touched on growth and business acquisitions. I think you guys given an overview on gold. Maybe we can talk about an update on the labor turnover and retention of quality of staff given labor market tightness, and obviously with Brisbane 2032 coming up. Any thoughts there? I think gold where it is, people are still making fantastic returns. If people are producing, generally, they're making very good returns where the gold price is. I think really, no issues with the price where it is. As far as the gold price outlook goes, there's people out there that are much more qualified than I am to talk about that. You can make your own decision on gold price. I certainly wouldn't say it's weak. It's weakened a little bit, but it's still very strong. On the labor side, it's a people business. It's all about the people and how we run the business and provide that service to the clients. We're very lucky that we're a large driller. We've got a great reputation, a great brand good gear, good clients, good contracts. People get good camps, good food, they get looked after with flights, and they don't get mucked around, and we train them, and they can progress and earn more money. We've got a better chance than some to attract and retain. We never have been in a position where we haven't been able to deliver and we hope that's the case moving forward. Yeah, it is a business risk, of course. We haven't started building anything in the East yet for the Olympics. When that does potentially start, it's harder to get people. We'll wait and see. At the moment, looking okay. Great. Thanks, Andrew. We've spoken about mobilization costs. Maybe the last question here from Michael, and it goes towards you, Nathan. You talk about growth. Is that to come from market share or growth of the market? If both, then what is the percentage? Hard to say at the moment. I think we're just looking at growth from the market. Again, as I said before, we'll always look at M&A opportunities, but they just need to be the right ones. I think at the moment, the work, the additional rigs that are coming on that Andrew and Greg talked about before, that's really just growth in the market, growth in our clients. Our clients think we're doing a good job adding more rigs to the same projects, which is obviously beneficial for us. It's less mobilization cost, less effort. Also means we're displacing our competition, which is always a good news story. Tells us we're doing something right. That's where a number of these additional rigs in this first half are going into existing contracts, existing clients that are happy with what we're doing. Most of it's growth in market, growth in gold. It's obviously a decline in coal, I think there's been no rigs coming off from coal since we last had the last quarter anyway. Yeah. There's been no decline in the coal market, just steady at this stage. Most of it's all been in the hard rock business. Fantastic. Thanks, Nathan. That was the last question, guys. Again, great quarter. Thank you very much. For the audience, this is being recorded, so I'll get that out to you guys. If there are any other questions, feel free to forward them through and I can revert back to the company and have them answered. Yeah, Nathan, Andrew, Greg, thank you again and well done, guys. Thanks, Allen. Thanks, Allen. Really appreciate it. Thanks, everyone. Thanks, everyone. Thanks for your interest. Thanks. Bye