Perenti Stock

Good morning, everyone. My name is Diane Smith-Gander, and I am the Chair of Perenti. It is now 10:30 a.m. Perth time, and I welcome all shareholders to the company's 2026 Annual General Meeting, both here in person and online through the virtual meeting platform provided by our share registry, MUFG Corporate Markets Limited, who I will refer to as registry from this point on.

If we experience any technical issues today, I may take a short recess or an adjournment may be required depending on the number of shareholders affected. If it occurs, I will, of course, advise you accordingly.

We have a quorum present. I'm looking at my company's secretary, he's nodding your head. And so I now declare the Annual General Meeting open.

I acknowledge the traditional owners of the various lands from which we meet today, including the Whadjuk people of the Noongar. And we also acknowledge any aboriginal and Torres Strait Islander people participating in this meeting. I pay my respects to Elders past, present and emerging, and recognize and celebrate the diversity of aboriginal peoples and their ongoing cultures and connections to the lands and waters of Australia.

Today, I am joined at the meeting by Vanessa Torres, our Managing Director and CEO by -- just move it on a bit for me, Dave. Craig Laslett, an Independent Non-Executive Director and Chair of the Safety and Sustainability Committee; Andrea Sutton, an Independent Non-Executive Director and Chair of the People and Remuneration Committee; Greg Walker, an Independent Non-Executive Director; and Vince Nicoletti, an Independent Nonexecutive Director, who recently joined Perenti. I am passing to you an apology from Andrea Hall, who is the Chair of our Audit and Risk Committee, who is unfortunately well today and therefore unable to join us. I'm also joined by our Group Executive Committee members, Michael Ellis, Chief Financial Officer; Gabrielle Iwanow, President, Contract Mining; Ben Davis, President, Drilling Services; [indiscernible], President, Mining and Technology Services; and Cameron Bailey, our Chief Strategy Officer. Also in attendance today are Helen Bathurst, a partner at PricewaterhouseCoopers, who is the company's external auditor; and Rachel Meadows, partner in the sustainability assurance area at PwC.

Now I ask that all shareholders who are attending the meeting in person ensure that they have registered their attendance with the registry at the entrance to the meeting. Shareholders and validly appointed proxies, corporate representatives and attorneys will have received a yellow admission card. Nonvoting shareholders will have received a blue admission card. Please note only those shareholders or proxy holders with the yellow or blue admission card will be allowed to ask questions or make comments on the company at the meeting.

For those shareholders who are attending online, please follow the virtual meeting online guide via the link on your screen to register for a voting card and cast your votes online and to ask questions and make comments on the company. You will only be able to ask questions or make comments once you have registered to vote. So I invite shareholders who are attending online to send through any questions as soon as possible after registration don't wait until the point of each resolution is read.

The notice of this meeting was released to the ASX on the 11th of September 2026 and made available to all shareholders. If there's no objection, that Notice of Meeting will be taken as read. No objections? Thank you.

So the procedure for today's meeting will be as follows. First, I will give a short address, and this will be followed by the Managing Director and CEO's address to shareholders, and then we'll move on to the formal items of business as set out in the notice of meeting. All items of business will be voted on via a poll. Instructions regarding the poll will be given prior to the commencement of the poll and the results of the poll will be tallied and announced via the ASX platform as soon as the results are available. After the poll has closed, shareholders will have an opportunity to ask questions about or make comments on the management of the company. Shareholders who are attending virtually can ask questions via the online facility either in writing or orally through the web phone facility.

So let me move to my address. Mining remains 1 of the world's most important industries supporting economic development, energy security and the supply of resources that underpin modern life. As the industry evolves and mining becomes more complex, the need of asset owners for trusted partners with the scale, expertise and capability to deliver safe, efficient and sustainable outcomes has never been greater.

Through our diversified mining services platform and market-leading underground mining and drilling capabilities, Perenti supports clients across the mining life cycle to discover, develop and extract the resources that the world depends upon.

Against this backdrop, financial year 2026 was another year of strong performance for Perenti. We delivered on our safety and market commitments continue to execute our strategy with discipline and reinforced our position as a trusted global mining services provider. Importantly, we maintained the consistency that has become a defining feature of the business, further strengthening confidence among our clients, investors and other stakeholders. None of this would be possible without our people. Across Perenti, nearly 10,000 employees bring the commitment, capability and professionalism required to operate in some of the world's most challenging environments. Their efforts enable us to deliver value for our clients safely, create opportunities in the communities in which we operate and generate returns for shareholders. So on behalf of the Board, let me thank all of our people for their outstanding contribution throughout the year. Safety remains the foundation upon which everything else is built.

While we're encouraged by the progress being made across the group, our focus remains firmly on eliminating life-changing events and harm. We continue to strengthen the systems, leadership capability and technologies that help protect our people and reduce their exposure to critical risks. Initiatives such as hands of steel, together with advances in automation, data analytics and artificial intelligence are helping improve both safety outcomes and operational performance.

Safety, of course, also extends beyond physical risk, creating workplaces that are safe respectful and inclusive remain central to our culture and the way we operate. This commitment continues to guide our actions across the organization as we work to create an environment where every person can perform at their best.

Financial year 2026 was a year of strong safety and financial performance. Consistent earnings disciplined cash generation and a strong balance sheet continue to underpin the company's success. This financial strength provides the flexibility to invest in future growth opportunities while maintaining our commitment to delivering returns to shareholders and creating long-term value. A significant milestone during the year was the successful transition of leadership following the appointment of Vanessa Torres as Managing Director and Chief Executive Officer. Leadership succession is 1 of the most important responsibilities of any Board and I am pleased that this transition was executed in an orderly and considered manner, while maintaining business momentum and performance. Vanessa brings extensive experience across the global mining industry and a deep understanding of the challenges and opportunities faced by our clients. Her focus on people, performance, innovation and partnership aligns strongly with Perenti's principles and strategic priorities.

Since joining the company, she has engaged extensively with our workforce, clients and stakeholders and quickly developed a strong understanding of the strengths that underpin our business and the challenges we face. I'm confident she will build upon the strong foundations already in place and help lead Perenti through its next phase of growth and evolution.

We, of course, thank her predecessor, Mark Norwell for his outstanding contribution to Perenti. Under Mark's leadership, Perenti evolved into a diversified global mining services group with the scale, capability and market position it enjoys today. The strength of the business reflects his leadership in vision and he left Perenti exceptionally well positioned for continued success.

Operationally, financial year '26 included several important milestones across the business. Barminco secured significant opportunities in both Australia and North America, including the formal project in Nevada and major contract awards and extensions at Bellevue, Duketon and Dalgaranga in Australia. Our Drilling Services division also continued to perform strongly, reinforcing its position as a leading global drilling provider. And we recently announced the sale of BTP, further simplifying the group and sharpening our focus on our core mining services businesses of underground mining and drilling.

Collectively, these outcomes demonstrate the strength of our client relationships, the quality of our operational delivery and the disciplined execution of our strategy. These achievements, together with our focus on disciplined capital management and cash generation have contributed to delivering the strongest balance sheet in Perenti's history. This position provides resilience, supports investment in future growth opportunities and gives the Board greater flexibility in allocating capital to create long-term value. For shareholders, the benefit of this strength is clear. It's enabled the Board to continue returning capital through dividends and our share buyback program, while ensuring the company remains well positioned to pursue future opportunities.

Maintaining that balance between rewarding shareholders today and investing for tomorrow remains a key focus of your Board. The Board was pleased to welcome Vince Nicoletti as a nonexecutive director during the year. Vince's extensive experience across mining, energy and services sectors further strengthens our capability as we continue to support management and execute our strategy.

Tim Longstaff left the Board, and we congratulate him on assuming the chair role at Horizon and thank him for his incredibly valuable contribution to Perenti. Tim's unique blend of intellect, enthusiasm and challenged served parent well.

Looking ahead, the Board remains confident in Perenti's future. The long-term fundamentals supporting our industry remains strong. Demand for specialist mining services continues to grow, and Perenti remains well positioned to capitalize on these opportunities. Most importantly, we have talented and committed people across the business to continue to strengthen client partnerships, drive operational performance and create enduring value for all stakeholders. My fellow directors, yes, stewardship and guidance throughout the year has been a very high order. The group executive has displayed exemplary leadership during a year of successful transition, and we are delighted with Vanessa's impact today.

So to our clients. We value the trust you place in Perenti and the partnerships we have built together. To our shareholders, your ongoing confidence in our strategy and our people continues to be greatly appreciated. Most importantly, let me recognize again the contribution of every 1 of our paper their commitment, professionalism and care for 1 another foundation or parent success and remain central to the future we are building together. So thank you to you all.

It's now my pleasure to invite Perenti Managing Director and CEO, Vanessa Torres to address shareholders.

Thank you, Diane, and good morning, everyone. It is a privilege to address you today as Managing Director and Chief Executive Officer of Perenti. I have spent the last 6 months listening, learning and meeting many of our people, clients and stakeholders. What has impressed me most is the quality of our 10,000 people, the strength of our culture the pride our team's take is supporting the success of our clients and the way safety is embedded across the organization. Every day, our people support clients across the mining life side from exploration and development to production, drawing in our mining, drilling and technology capabilities. And at the heart of this portfolio is our position as a global leader in underground mining and drilling built on decades of experience, deep technical expertise and a proven track record of delivery. These strengths make Perenti a truly exceptional company and provide a strong platform for future growth.

I am incredibly proud to lead Perenti at this point in its journey. We are a business built on strong values, enduring partnerships and a clear sense of purpose. Across the organization, there is a strong commitment to safety, while speaking with frontline employees, operational leaders of members of our executive team. There is a clear understanding that nothing is more important than ensuring our people return home safely every day. Safety always comes first, and is the foundation of our aim of being the safest and most productive in everything we do.

Throughout FY '26, we continued strengthening our safety culture through greater leadership engagement, improved critical risk management and increased accountability across the business. The result was another year without fatalities and an improvement in our total recordable injury frequency rate. And while we are encouraged by this progress. We know there's always more work to do and our focus remains firmly in preventing fatalities and life-changing events. And strong safety performance is built on more than systems and processes. It relies on open communication and the confidence to raise concerns when something does not look right. Helping to ensure risks are identified and addressed, a mindset there is evident throughout Perenti. The strength of this culture underpinned another year of strong operational and financial performance. The results delivered during the year reflect the quality of the organization I have joined and the dedication of our people around the world.

Perenti delivered market guidance for the fifth consecutive year, reporting underlying revenue of $3.5 billion and a record underlying EBITDA of $340 million. Adjusted free cash flow of $182 million supported increased returns to our shareholders and enabled continued investment in high-quality growth opportunities. while strengthening an already robust balance sheet. These outcomes were achieved despite ongoing political and market uncertainty and reflect the consistency of our delivery over many years. Importantly, these results did not occur by chance. They are built on years of disciplined execution and a clear focus on delivering value for clients. Our partnership with our customers. It's not about simply providing a service. It is about walking in their shoes to understand their challenges, help solve problems and create value together. That approach is embedded across parent and remains 1 of our greatest competitive strengths. And this commitment was reflected in a number of important achievements during the year.

In North America, Barminco secured the Four Mile project in Nevada. First, strengthening our presence in 1 of the world's premier mining regions. Swick also secured a number of underground drilling contracts in that region, including Four Mile. And in Australia, our team secured the Bellevue underground mining contract, our largest ever contract in Australia, together with important contract extensions at Duketon and Dalgaranga. We also demonstrated our ability to successfully conclude contracts safely and professionally with the completion and demobilization of projects at Colo in New Southwales, Hemlo in Ontario, Maco in Senegal, in Yaramoko in Burkina Faso. Our Drilling Services division continued to perform very strongly across multiple jurisdictions, securing new and standing contracts and reinforcing our position as a leading global business in drilling. The division was also recently recognized as the largest provider of diamond drilling worldwide by the international publication Coring magazine.

These outcomes demonstrate our ability to deliver sustainable growth. And just as importantly, we continue to take a strategic approach to managing our portfolio. We are focused on ensuring our capital resources and expertise add directly towards the areas where it can create the greatest value. The sale of BTP is a strong example of this approach. The transaction strengthens our balance sheet and enables us to focus on the businesses where we see the greatest opportunities for growth and value creation, while positioning BTP for an exciting new chapter focused on their continued growth and customer success. A key reason I am excited about Parent's future is the talent and commitment of our people from the front line to senior management.

Over the last 6 months, I have met with more than 1,000 people in their workplaces and shared conversations and meals across Australia, Africa and North America. I have been inspired by the journeys and think firsthand how our amazing people are committed to learning, improving and supporting 1 another. And we continue to invest in developing the capability through a apprenticeships, trainerships, graduate programs and leadership development initiatives. These investments are critical, not only for Perenti but the long-term sustainability of our industry.

Our people also make a meaningful contribution to the communities in which we operate. And I'm particularly proud that more than 90% of our international workforce is recruited locally. This creates employment opportunities, develop skills and leaves lasting benefits in the regions where we work. Initiatives such as our underground training center in Tanzania, demonstrating importance we place in building local capability and creating enduring value beyond the mine gate.

And looking ahead, I believe Perenti is exceptionally well positioned. As demand for specialist mining services continues to grow, we see a record pipeline valued at approximately $20 billion with a strong concentration in Australia and North America. We have also seen our copper pipeline double over the last year. Our leadership in drilling and underground mining, combined with our diversified services platform and disciplined approach to execution gives us confidence in our ability to capture these opportunities and continue delivering value for shareholders. We will continue strengthening safety performance across the business. We will deepen our partnerships with clients and focus relentlessly on operational excellence. We will invest in our people and build capability for the future. And we will pursue growth opportunities in a strategic manner, ensuring they create value for our people, clients, shareholders and our broader stakeholders.

Before I conclude, I would like to knowledge the Board for its guidance and support since I began at Perenti, and the Group Executive Committee for their leadership and professionalism. I would also like to recognize Mark Norwell, whose vision and leadership help transform Perenti into the business it is today, to our clients, communities and shareholders. Thank you for your trust, partnership and support.

And most importantly, I want to recognize our people. They are the heart of this organization. Their commitment, expertise and care for 1 another, underpin every success we achieve. I am proud to be part of Perenti, excited by the opportunities ahead. I'm confident about the future we will build together.

I will now hand back to Diane. Thank you.

Thank you, Vanessa. Now as mentioned earlier, voting on all resolutions will occur today by way of a poll. So after each item of business has been introduced, there will be an opportunity for shareholders to ask questions of the Board in relation to that item of business before casting their vote for that resolution. So I'm asking you to please limit your questions to the items of business that we are being discussed at a particular point, because there will be time for more general questions at the conclusion of the meeting.

If you're using the web phone facility, please ensure that you mute the webcast meeting before you use your web phone. And please note that voting prohibitions apply to Resolutions 1, 4 and 5 under the Corporations Act and voting exclusion apply to resolutions 4 and 5 under the ASX listing rules.

Now if you're in any doubt as to whether a voting exclusion or voting prohibition applies to you, please refer to that Notice of Meeting or speak with the registry at the registration desk outside the physical meeting here. A representative of the company's share register, MUFG, will be conducting the poll as returning officer. So as Chair of the meeting, I still retain the right to make all final decisions as to who may vote, the votes cast and the declaration of the results of the poll.

I'd like now to call on Catherine Noon from the registry to advise shareholders on the procedure for conducting a poll in the meeting and via the online platform. Thanks, Kate.

Today, we will be conducting a poll on all resolutions. The persons entitled to vote on this poll are all shareholders, representatives of shareholders and proxy holders. Only those who are entitled to vote at this meeting may cast to vote on a resolution. For those attending the meeting in person, you can cast your vote by filling out the yellow voting card. Please vote for, against or abstain on your voting card for each of the resolutions. If you have any questions, please see 1 of the MUFG team members at the registration desk outside this room.

For those shareholders participating in the meeting via the online platform, you can cast your vote by using the electronic voting card that you received on your validation of registration. If you have any questions about casting your vote online, please refer to the virtual meeting guide or call the numbers set out in the guide or on the screen in front of you.

If you are in attendance today as a proxy holder and hold open votes, those votes are yours to cast at your discretion, and you can do so by voting on each resolution accordingly.

I now hand back to the Chair.

Thank you, Catherine. So I now declare the poll open, and we will move on to the formal business of the meeting. The first item of business is the financial report and accounts. Under the Corporations Act, the company is obliged to lay before this meeting, the last audited financial statements, the Sustainability Report, climate-related financial disclosures and the related reports which were dated the 21st of August 2026. No resolution is required but I now invite shareholders to comment or ask questions on the financial reports and accounts of the company. Questions may also be asked of the auditors in relation to the conduct of the audit, the content of the audit report, accounting policies adopted by the company and the independence of the auditor in carrying out the audit.

For those attending the meeting in person, please address all questions to me as a chair. If you wish to speak, please speak clearly into the microphone provided so that all shareholders can hear your comment or question. And when I direct, please state your name before speaking and hold your yellow or blue admission card so that I can see that you are indeed a shareholder or proxy holder.

For those who are participating via our online platform, you'll be able to submit questions by registering as a shareholder or proxy holder and selecting the Ask a Question tab or by utilizing the web phone facility. I will consider the questions submitted online after I've taken questions from the floor and from shareholders using the web phone facility. And out of fairness to everyone, I ask that you limit your questions to 1 at a time. And I will only accept questions and comments on the resolution that's being considered.

So are there any questions or comments from shareholders who are in attendance today on the reports and accounts? Okay. Seeing no questions. Are there any questions from web phone participants?

There are no questions from shareholders participating by web phone.

Thank you. And do we have anything writing?

Yes, we do, madam Chair.

Thank you, Jono, and you will read that out for me.

I will. This 1 is from Stephen Mayne, and please bear with me, it is a little bit lengthy. It's directed towards our auditors and the relationship that we've had with PwC. He's looked up and noted that Perenti has had PwC auditing our accounts for 37 years back to 1989 and queried how many times we've gone to competitive tender. And so, when was the last tender and when we are next likely to run at tender?

Thank you. I would normally have asked Andrew Hall, our Chair of Audit and Risk, but she is an apology today. I'll handle that question. and thank you for Stephen. And the fact outlined in the question are indeed correct, PwC has been auditing the precursor companies of Perenti since 1989. I think the point that I would raise is that in 2019, Perenti is currently structured with Astro and Barminco came together and then later in 2023, DDH joined the group. So the group has evolved, and it's that period from 2019 that I think is most relevant to consider why we would not have made a change of auditor during that period. PwC has particular expertise in African jurisdictions. And that's been a very relevant part of our consideration to not make a change from that time from 2019.

What we have done is at each auditor rotation when the partner comes to the end of their term to look closely and test market, we have not gone to formal tender during that period. Current external audit partner, Helen Bathurst, here with us today is completing her third year in post and when that comes to its inevitable change, and we consider rotation, the Audit and Risk Committee is tasked with considering whether it would be appropriate at that point to proceed to tender. We have not made a decision at this point and Audit and Risk will consider the matter within the company's context at that point in time.

So thank you for the question. I think it's highly relevant in today's environment, something that the Board is very comfortable has been handled extremely well by Audit and Risk, and we have been well served. So thank you to our auditors.

No questions.

Okay. We are not seeing any further questions, so we'll now move to the next item of business. Under the Corporations Act, listed companies are required to include as part of their directors' report a Remuneration Report, which includes very specific information. The directors have prepared that Remuneration Report to the 30th of June 2026, and is included in the annual report Pages 96 to 113. The Corporations Act also requires that companies put to shareholders a resolution that the Remuneration Report be adopted. The Board believes that the current remuneration arrangements are fair and reasonable and that the 2026 Remuneration Report demonstrates alignment of remuneration outcomes with the company's performance and delivery of value to our shareholders. I now move that the Remuneration Report of the company for the financial year ended 30 June 2026 be adopted.

Under the Corporations Act, the vote is advisory only and it doesn't bind the directors or the company. However, we take shareholder feedback very seriously, and we'll continue to review our remuneration framework to ensure that it remains appropriate. Voting exclusions apply to this resolution as described in the notice of meeting and the proxy votes that have been received in relation to this resolution are displayed on Slide 13. Any open and usable proxies held by me as Chair of the meeting will be voted in favor of the resolution.

At the company's last AGM, the votes cast against the Remuneration Report represented less than 25% of the total votes cast and a spill resolution will therefore not be required for this AGM.

Are there any comments or questions in respect of Resolution 1 from shareholders in attendance here today? Let me acknowledge Bob Kelliher from the Australian Shareholders Association, welcome Bob. You are the monitor for the ASA, and we very much appreciate the engagement of the ASA with Perenti specifically, but with the practice of shareholding more broadly, and thank you for waiving your yellow voting card at me. If there's a microphone just behind you.

Thank you, Chair. As you say, I'm Bob Kelliher from the Australian Shareholders Association. I'm representing 16 other small shareholders with about 200,000-odd shares. Can I thank you for facilitating the pre-AGM meeting, where we went through most of the items and sort of most of the questions. But on the remuneration report, as we noted, the short-term incentive has the short-term incentive is paid on annual achievements in cash. So it starts to look like annual remuneration rather than an at-risk part of the remuneration. So that also the long-term incentive in Table 5 has a confusing meaning of performance and outcome which makes that table very difficult for shareholders to understand. And in fact, there's some -- well, errors, typographical errors or just errors in setting out that makes it difficult to understand. As a result, we're unable to support this resolution.

Well, thank you so much. And as you pointed out, we did go through this in a bit of detail. I might ask Andrea Sutton, if we can maybe get a microphone to Andrea as our Chair of the Rem Committee to make a couple of comments about the matters. We have made quite some changes in our remuneration arrangements to consider what is the appropriate deferral percentages and also minimum shareholding requirements. So we are very focused on making sure that at risk remuneration is actually that at-risk remuneration. But Andrea, I'll hand over to you for some additional comments.

Thanks, Diane, and thanks, Bob, for your comments. We appreciate the feedback on the table. And as we discussed, in our meeting, and we'll certainly be looking to ensure that we're clearer in the future, including some -- ensuring some of the language we use is understood by all of our shareholders. I think with regards to the STI deferral, as we noted in the annual report, we're actually moving the STI deferral component for the Managing Director from 1/3 to 50% for 2027, and hopefully, that will get more in line. As you can appreciate, STI deferral is about providing some short-term incentive, and we need to consider when we do benchmark it, we do need to consider the fact that our executives have things like tax implications for managing STI and LTI. And so we try and look for a balance with regards to STI to get a good longer-term engagement with the organization and deferral, but also giving them some support in terms of meeting some of their personal obligations. So we'll continue to benchmark that as we go. We've got a really fabulous Rem team at Perenti, and we do check on an annual basis. And we believe with the benchmarking work that we did, we're reasonably well aligned. So thanks for the feedback.

Any other questions in the room? Okay. Seeing no more. Are there any questions from web phone participants on this item?

There are no questions from shareholders participating by web phone.

And any questions from shareholders watching online?

Yes, there is another question from Stephen Mayne, who I should have pointed out before is a shareholder. He's asked which of the proxy advisers cover us this year? And did any of them vote against the remuneration resolution? I can tell you that Glass Lewis, ISS, OEM, ACA, SI all recommended for.

Thank you. That's Jono van Hazel, our Head of Investor Relations, making sure that the Chair didn't forget all of the proxy advisers that cover us. So I thank you so much for that support. But we did offer engagement with all of those property advisers. Not all of them took us up on the offer. But we did have engagement. And as Jono has pointed out, everybody did vote they gave a volume recommendation of for to the people that take their service. So we were well pleased with that.

Any other questions? All right. Thank you. So given there's no further discussion, I'll now invite you all to vote on this resolution, and I'll pause momentarily for that to happen.

[Voting]

All right. We'll now move to the next item of business, which is reelection of directors. So as stated in the notice of meeting, certain directors retire at the AGM and being eligible each offer themselves for reelection as directors at the meeting. All directors' details are set out in the directors' report on Pages 89 to 95 of the annual report. So Resolution 2 is the reelection of Mr. Vince Nicoletti, and details regarding Vince, 1 of the 2 directors seeking reelection are displayed on Slide 15. Vince is an independent Non-Executive Director and a member of the Audit and Risk Committee, the People and Remuneration Committee and the Nomination Committee.

Before putting the resolution to shareholders, I'll invite Vince to address the meeting and make few remarks in support of his reelection.

Thank you, Chair. After a long executive career, I'm now transitioning to a nonexecutive Board career, and I'm very pleased that Perenti appeared as an opportunity. This is a great fit for us, both are and me. The majority of my career has been spent in mining, minerals processing, energy and most importantly, in contracting. I've worked in finance, strategy, M&A, commercial, risk and operations. I bring this to the table and I believe that as a company pivots towards diversification and growth I can add constructively and significantly. I've got cross-sector experience, international exposure and importantly, a long track record as an operating CFO. My commitment to shareholders is to always keep shareholder interest front of mind and to support the company and its management on the journey of strategy execution, growth and operating discipline.

Lastly, I thank shareholders for their support. Thank you.

Thank you, Vince. So I move that Mr. Vince Nicoletti, who retires in accordance with Article 59.2 of the company's constitution and being eligible, offers himself for reelection, be reelected as a Director of the company. the Board, other than Vince Nicoletti, who abstained, unanimously recommends that shareholders vote in favor of Resolution 2. The proxy votes received in relation to this resolution are displayed on Slide 17. Open and usable proxies held by me as Chair of the meeting will be voted in favor of the resolution. Are there any comments or questions from shareholders in attendance today? No, I think. Are there any questions from web phone participants on this item?

There are no questions from shareholders participating by web phone.

Are there any questions from shareholders who's sending their questions online? No? Okay. So as there are no questions, I'll invite everyone to vote on this resolution, and we will take a brief pause.

[Voting]

So we'll move to Resolution 3, the reelection of Andrea Sutton. Details regarding Andrea, the second director seeking reelection this year are shown on Slide 18. She is an independent Nonexecutive Director and Chair of the People and Remuneration Committee, as you've just heard. She's also a member of the Safety and Sustainability Committee and in fact, past Chair of that committee and a member of the Nomination Committee. Before putting the resolution to shareholders, I'll invite Andrea to address the meeting and make a few remarks in support of her reelection.

Thank you, Diane, and good morning. I am seeking your endorsement for my reelection as an independent nonexecutive director to the Board of Perenti, and I appreciate the opportunity to address you today. I bring to Perenti Board experience of over a 30-year career in the resources sector with the executive experience across a range of functions, including operational leadership, health, safety and environment and corporate activities. As part of the Perenti Board, I look to support the creation of shareholder value and bring by technical and executive experience to discussions to support key business decisions. I also have the privilege to Chair the People and Performance Remuneration Committee working with the executive to ensure robust and fair remuneration outcomes for the business and the overview of organizational culture. As noted on the screen, I am a Board member of the Australian Naval Infrastructure and Chair of Water Corporation. I'm a Non-Executive Director of Luca Resources and a Board member of Perth Airport and the Australian Red Cross Society. I look forward to the continued opportunity to contribute to the success of Perenti, and thank you for your support in my election.

Thank you, Andrea. So I now move that Ms. Andrea Sutton, who retires in accordance with Article 60.4 of the company's constitution and being eligible, offers herself for reelection be reelected as a director of the company. The Board, other than Andrea Sutton, who abstains, unanimously recommends that shareholders vote in favor of Resolution 3. The proxy votes that we've received in relation to the resolution are displayed on Slide 20 and any open and usable proxies held by the Chair of the meeting will be voted in favor of the resolution. Does anyone have any comments or questions from those shareholders who are in attendance today? Bob Kelliher from the Australian Shareholders Association.

Yes. Thank you, Chair. At the ASA, we have a policy of maximum number of director positions just in because of workload. And so Andrea has got a range of different directorship continuing Chair of the Water Corporation, a statewide organization can Andrea, just give us an idea that she has enough time to devote to Perenti with all her other commitments?

Yes, Thanks, Bob, and I'll handle that question. Because as the Chair of the Board, 1 of my responsibilities is to ensure that the Board functions effectively. And if you have a director who is not diligent in their approach is not well prepared and not across the break, the Board is not going to function effectively. One of the techniques that we use to ensure that we're getting good feedback is we conduct a board performance review on an annual basis. And every 3 years, we get an independent external party to be part of that review process. We're using a technology tool to facilitate our performance surveys, and we've been using the same tool for a couple of years now. So it gives us the ability to have a longitudinal look and see how the Board is performing. So we have those opportunities to have the conversation. In that same 3-year cycle, we will also provide direct to 360 feedback where we are each director to give individual feedback on their peers. So I think I've got a really good basis to see if people are bringing what they are expected to bring to that board table. And I'm very confident across all of our directors and I have observed absolutely no red flags to suggest to me that Andrea Sutton isn't completely across her brief. So hopefully, that answers your question.

Although mind you, when you look at the set of things I'm doing, you might as well just have asked the same question. And I will say that we do give the opportunity for feedback on the Chair's performance as well. And also, actually, I should have mentioned that I forgot when we do the performance review, it's not just the directors sort of marking their own homework as a Board. We ask those members of the Group Executive Committee and people like our Head of Investor Relations and our company's Secretary, to also participate in that survey feedback, so we're giving a real good opportunity for management to also say if they believe that the directors are potentially too busy very happy with the way things are going at the minute. But it is the right question to ask. So thank you for it.

Anything else in the room? Any questions from web phone participants on this item?

There are no questions from shareholders participating by web phone.

Anything online? No. All right. So given that there are no further questions, I now invite you to vote on the resolution. And I will take the brief pause. I know it's a very brief pause, but I think it's going okay.

[Voting]

So we will now move on to special business. Under Resolution 4, the company is seeking shareholder approval for the proposed grant of performance rights under the company's incentive rights plan to the Managing Director and Chief Executive Officer, Dr. Vanessa Torres; or her nominee, as a long-term incentive for financial year 2027. So I now move that Resolution 4 as follows and as set out in the notice of meeting be passed as an ordinary resolution. That for the purposes of ASX Listing Rule 10.14, Sections 200B and 200E of the Corporations Act and for all other purposes, approval is given to issue 651,580 performance rights under the incentive rights plan to the MD and CEO of the company, Dr. Vanessa Torres or her nominee as a long-term incentive for the financial year ending the 30th of June 2027, as described in the explanatory memorandum. Now the Board other than Vanessa Torres, who have stained, unanimously recommends that shareholders vote in favor of Resolution 4. A voting exclusion applies to this resolution as described in the notice. The proxy votes received in relation to the resolution are displayed on Slide 23 and open and usable proxies held by me as Chair of the meeting will be voted in favor of the resolution. Do we have any comments or questions from shareholders in attendance today? Seeing no questions, I'll ask are there any questions from the web phone participants on this item?

There are no questions from shareholders participating by web phone.

Do we have any questions sent in online? Thank you. So as there are no questions, I will now invite you to vote on this resolution.

[Voting]

Thank you. We'll move to Resolution 5, where the company seeks shareholder approval for the proposed grant of STI rights under the company's incentive rights plan to the former Managing Director and Chief Executive Officer, Mark Norwell, or his nominee, as part of the short-term incentive earned for financial year 2026. I now move that Resolution 5 as follows and as set out in the Notice of Meeting be passed as an ordinary resolution. That for the purposes of ASX Listing Rule 10.11 and for all other purposes, approval is given to issue up to a maximum of 144,604 STI rights under the incentive rights plan to the former MD and CEO of the company, Mr. Mark Norwell or his nominee as part of Mr. Norwell's short-term incentive for the financial year ended the 30th of June 2026, as described in the explanatory memorandum. The Board unanimously recommends that shareholders load in favor of Resolution 5. A voting exclusion also applies to this resolution as described in the Notice of Meeting and the proxy votes that we received in relation to the resolution are displayed on Slide 25. Open and usable proxies held by me as Chair of the meeting will be voted in favor of the resolution. Are there any comments or questions from shareholders in attendance today? Seeing none in the room, I ask are there any questions from web phone participants on this item?

There are no questions from shareholders participating by web phone.

Thank you. I'll now take any questions from shareholders who have sent in their questions online in writing. Do we have any? No. All right. So as there are no questions, I'll now invite you to vote on this resolution.

[Voting]

Now all resolutions have now been put to the meeting. So please ensure that you complete your vote now. If attending the meeting in person, please remain seated. The registry staff will collect the voting papers from you once you have completed voting if you need any more time, just raise your hand, and we'll give you more time or assist with any questions that you've got.

Now for those of you who are online, you will have 5 minutes after the poll has been closed to complete your votes. If you've got any questions, please refer to that virtual meeting online guide or call the registry on the number that's in the guide or on the screen in front of you. I'm now going to pause for a moment for the collection of the yellow voting papers.

So all of the yellow voting covers have been collected. Thanks, MUFG for your confirmation. And so I now declare the poll closed. Online participants have a 5-minute countdown appearing on the screen to complete your votes. The votes will then be counted by the registry and the results of the poll will be announced to ASX shortly. In the meantime, we'll move on to other business.

So as I mentioned before, my address at an Annual General Meeting, shareholders are entitled to ask questions about or make comments on the management of the company. So before calling this meeting to a close, I'd like to provide shareholders with that opportunity to ask any questions that you may not have been able to ask earlier. For the online shareholders, as usual, follow the steps in the virtual meeting online guide to ask a question or make a comment. And for shareholders who are attending in person, please state your name, and please confirm you are a shareholder or proxy holder before speaking because your yellow voting cards have all been collected.

So are there any questions or comments from shareholders who are here in attendance today? No. Okay. I'm glad you had an opportunity to get all your questions out. Are there any questions or comments from shareholders on the web phone?

There are no questions from shareholders participating by web phone.

Thank you. Are there any questions online?

Yes, we've got a couple to get through, both from Stephen Mayne. The first, I'll start with actually a complement. He said Perenti is very close to running a best practice hybrid AGM. But he's again, like last year, requested that we disclosed the proxy vote early to the ASX and release the head count data with the poll results, something that some other companies do, is listed on here.

Okay. All right. Thank you for that had this question from Stephen before in this forum, and also as Chair of another listed company had that question in another place. And Stephen, thank you so much for the compliment. I hope we do use this hybrid format to good effect. But I have said to you, Stephen, and I will say it again, when we're going to have a cup of tea and talk about this in person? I do get to the East Coast every now and then. My Visa is still valid. And so it would be great to meet in person again and talk this through.

I find it a bit of a tricky question. Everyone in the meeting today will have noticed the really strong for vote, the positive reinforcement that we received from shareholders about the resolutions that we put before you. And I have found in other settings that there is a suggestion that if those are released, it is almost as if the Board is saying, well, why do we have to all turn up because the vote is already in. And so that's what's driven me to believe that market practice of not releasing the numbers apart from actually at the meeting when they are firm and final is the right way to go. So like I said, Stephen, very happy to sit down and have a chat about what I might be missing in that equation.

And the second question, and you might want to throw to newly appointed MD.

A lot a bit of coaching before the question turns out.

But SP1 It's quite a long 1 again, apologies. It's actually regarding the appointment of Vanessa and the fact that mining is historically a male-dominated industry. He's queried the response from Perenti's trailblazing move into appointing a female Chair/CEO leadership combination and is it changing the culture.

That's a very good question, Stephen, thank you so much. And there's a number of people in this room that have got quite a bit to say on this topic because as those people will have noted who are alert, not only do we have a female Chair and a female CEO, but our largest business, contract mining is very ably led by Gabrielle Iwanow, who has got multi-decade career in the industry as well. And we also have Andrea Sutton, our resource industry veteran leading our Remuneration Committee. And so is this a change in culture? I do not believe that there is a difference in the culture that a female leader brings versus what a male leader brings. The culture of Perenti stand on a foundation of safety. Safety is first always in this company, and there is absolutely no difference between our previous CEO and MD, Mark Norwell, and our current CEO, Managing Director. And as the culture evolves, we've talked about psychosocial safety and how we want people to be comfortable to speak up and empowered. That's a cultural journey that I think we will always be on, given the number of people we have. But I think it will be really interesting, Vanessa to hear your reflections as well. So I'll hand the microphone over to you.

Thank you. I have been in the resources industry for a little bit more than 3 decades. And what I think happened in terms of inclusion and diversity that the culture did change in the whole industry over the last 3 decades. Fortunately, today, it is about making sure everyone can come to work and bring their full selves. And that's something that I've seen markedly as I interacted with many employees at Perenti. And I do think, inclusion and diversity is actually a mark of our culture. We operate in Africa. We operate in North America. We operate in Australia. And what we can see is the diversity of people from different backgrounds, people from both genders in various leadership positions and at the front line. And I do think this is 1 that -- 1 thing that makes Perenti really well positioned for the future. Mining well beyond borders. And as I mentioned in my address, we actually operate internationally with 90% of workforce recruited locally. So our ability to blend people from different backgrounds and genders makes, I would say, my transition to the company very seamless. And I'm very privileged to continue that trend and continue to have Perenti as a very strong company that can operate basically anywhere in the globe to provide the critical minerals the world needs in the future.

Thank you, Vanessa. We've got a bit of an open mic going. Anyone else want to lean in on this one? Okay. All right. Thank you, Stephen. I hope that addresses the question and thanks for the opportunity to talk to it, that's obviously something that's very close to the hearts of many people in the room.

Do we have any further questions? So thank you very much for your questions and comments. As mentioned earlier, the results of the poll will be available shortly and will be announced by the ASX platform. For those who have attended in person, thanks very much for your attendance and your interest and to those shareholders and visitors participating online, we are pleased that our technology worked all the way through today and enabled your attendance and thanks Stephen for saying that he thinks we do the hybrid model well. So thank you all for joining us remotely. We look forward to your continued support in the coming year.

That ends the meeting, which I now declared closed. And for those attending in person, please join us for some light refreshments next door. Thank you all.

Thank you for standing by, and welcome to the Perenti FY '26 Results Presentation. [Operator Instructions] Finally, I would like to advise all participants that this call is being recorded. I'd now like to welcome Vanessa Torres, Managing Director and Chief Executive Officer, to begin the presentation. Vanessa, over to you.

Good morning, everyone, and thank you for joining the Perenti FY '26 Results Call. My name is Vanessa Torres, and presenting with me today is Mike Ellis, our CFO. Today, we will outline our full year performance, the outlook for our business and how we plan to maximize returns for our shareholders. As this is my first reporting period as CEO for Perenti, I am very pleased to be announcing another year that Perenti has delivered to our guidance, marking our fifth consecutive year.

For those who are new to the Perenti story, we illustrate on Slide 3, our diversified portfolio of businesses spanning across the mining life cycle. Our businesses offer a broad suite of services, spreading across 12 different countries. We have world-leading expertise in underground mining and drilling. 66% of our revenue in FY '26 was generated from underground operations, and this was mostly from gold and copper projects. We operate 20 mines around the world. And collectively, we employ around 10,000 people to service more than 160 different clients. We aim to be the safest and most productive in industry, which unlocks enduring value and certainty for our people, our clients, our communities and ultimately deliver sustainable returns for our shareholders.

As announced on Friday, we have agreed to sell the BTP Group for AUD 100 million. The accounting standards require BTP to be reported in our annual report as a discontinued operation in our financial results. In order to allow comparison between FY '26 and FY '25 in a like-for-like manner, the results presented here represent the division as it was on 30th of June 2026, which is inclusive of the BTP Group. Mike will step through a reconciliation to statutory numbers later.

Before I get into the financial performance, I want to highlight our focus on safety. At Perenti, we are committed to ensure that everyone comes home safe and well. This mindset shapes how we operate our business and the decisions we make. In FY '26, we continue to strengthen our safety system in four key areas. Our critical risk management systems have strengthened the identification of hazards.

Safety leadership training is building our safety culture across all of our workforce -- direct workforce engagement. It's also simplifying our systems, making them more accessible and practical for our workforce and technology and engineering solutions are prioritized to reduce exposure to hazards where possible. We are proud to report 0 fatalities in FY '26 and improvements in both total recordable injury frequency rate, which is down to 6.0 and significant potential incident frequency rate down to 2.8. Whilst these results are encouraging, a safety culture requires continued focus and an enduring commitment from everyone in our organization.

Turning to our FY '26 financial results on Slide 5. As guided to the market, FY '26 has been a transitional year that sets up our company for future growth. A shift in revenue mix from Africa towards Australia and North America has been underway for some time, and the success of this strategy is now building momentum. EBIT(A) margin increased to 9.8%, delivering a record EBIT(A) result, even with revenue holding steady from FY '25. At the same time, -- the balance sheet has continued to benefit from the strong free cash generation.

Leverage at 0.4x and gearing at 12.8% is the strongest position our balance sheet has ever been in. This provides significant capacity to pursue growth options that I will unpack later in this presentation. On an adjusted basis, free cash flow of $182 million exceeded our guidance, which was upgraded during our first half results. Underlying NPAT(A) grew 8% compared to FY '25, benefiting from the lower finance costs. The strength of these results has allowed our Board to declare a final dividend of $0.045 per share, which lifts the total dividend for FY '26 to $0.0775 per share. Underlying EPS increased to $0.205 per share compared to $0.191 in FY '25, a 7% improvement year-on-year.

On Slide 6, we show our performance against guidance for the past five years. This is the fifth consecutive year that guidance has been met, which has also occurred in parallel with the portfolio transition, shifting the concentration of revenue in West Africa towards Australia and North America. The consistent free cash generation has enabled the balance sheet to be fundamentally transformed and now provides the group with significant funding capacity to pursue growth options aimed to maximize shareholder return.

Operationally, FY '26 included several important highlights. In Australia, we won the Bellevue contract worth approximately $850 million, which is the largest Australian contract in the history of Barminco. Our drilling businesses continue to build momentum with rising utilization, which is encouraging for FY '27. In North America, development at Goldrush has maintained a high operating standard that has been helpful to showcase the productivity advantages that Barminco's high-speed development can deliver for clients to maximize value. The award of the neighboring Fourmile contract is an important step to build regional scale in the U.S.A. and the recently announced addition of the Fourmile project to the Nevada Gold Mines JV between Newmont and Barrick enables us to unlock the benefits of working on these neighboring mines.

I recently had the opportunity to visit our operations in Ghana, and I was pleased to see our underground mining operations continue to deliver strong results. The culture amongst our Ghanaian workforce is excellent and the flow-on impact on the communities is immense. As we will be shortly exiting surface mine in Ghana, the recent agreement to sell the Iduapriem fleet as part of this transition will allow the recycling of capital toward new high-performing opportunities elsewhere in the portfolio.

The numbers at the base of this slide provide a glimpse of the size of our operations. Over 120 kilometers of development advance and more than 14 million tonnes of ore was delivered by Contract Mining in FY '26. The total drilling meters in the lower right includes everything drilled by drilling services and also the contribution of the drillers who work as part of the Contract Mining operations. And to give context to the 13,000 kilometers of drilling, it is more than the diameter of Planet Earth. So effectively, in a single year, our teams have drilled the equivalent distance from one side to the planet to the other.

Turning to Slide 8. Perenti delivered record EBIT(A) of $340 million, up 2% on FY '25 on a broadly flat revenue of around $3.5 billion. The key feature of this result was the improvement in EBIT(A) margin, which increased to 9.8%, supported by improved operational performance from Contract Mining. As highlighted during our first half results and consistent with prior years, earnings were heavily weighted to the second half. This is typical of the nature of our business, and we anticipate a similar first half and second half profile in FY '27 as new projects ramp up. Looking ahead, the sale of the AMS fleet and the divestment of BTP are expected to recycle approximately $150 million towards higher return opportunities.

Moving to Contract Mining, our largest division, which generated revenue of $2.4 billion and EBIT(A) of $291 million. As I mentioned previously, the pivot from Africa towards Australia and North America has shifted the revenue mix within this division. Our long-term contracts are advantageous for many reasons, but it does take time to shift the portfolio. This is evident in these results. But pleasingly, we are still delivering very strong margins. The EBIT(A) result from Contract Mining was a key driver of the Group's EBIT(A) results. This is not surprising when you consider that Contract Mining represents approximately 75% of underlying group EBIT(A) before corporate costs.

Recent project wins at Bellevue, Fourmile and Dalgaranga continue to move the portfolio mix towards a high-quality, long-life projects in both Australia and North America. While the proportion of revenue from Africa is changing, our clients in Africa remain an important part of the portfolio. AUMS has recently commenced some early works at Sabodala in Senegal for Endeavour Mining with a longer-term agreement under negotiation. I will discuss later our work in hand and pipeline, but the outlook for underground operations is particularly bright in North America, where there's visibility of $6.4 billion of potential work.

Turning to Drilling Services. The division has grown revenue to $843 million and set a new record EBIT(A) of $85 million. Drilling Services now represents 22% of underlying EBIT(A) before corporate costs. Utilization across the fleet continues to trend upwards and positions the division for further earnings and margins growth with mobilization costs and some fuel-sensitive inputs expected to normalize in FY '27. Swick has delivered an outstanding year in Australia and continues to see strong opportunities emerging in North America, particularly across gold and copper projects. A recent highlight subsequent to the end of the financial year was the award of a 5-year $92 million contract for Ausdrill for drilling and blasting services at Vault Minerals' King of the Hills mine.

On Slide 11, Mining and Technology Services delivered revenue of $190 million and EBIT(A) of $11 million. As announced, an agreement to sell the BTP Group has been reached. So BTP has been reported as a discontinued operation in our financial results. The results presented in this slide represent the division as it was on 30th of June 2026, inclusive of the BTP Group. The proposed sale of BTP is a pivotal move that will transform this division, leaving Supply Direct, Logistics Direct and idoba focused on lower capital-intensive services. This year, Supply Direct and Logistics Direct performed in line with expectations, and both have opportunities to grow in FY '27, idoba product development costs reduced in FY '26 and reduced again in FY '27.

And moving forward, they will be included in our underlying results. As announced, the divestment of BTP will unlock $100 million that will be recycled into higher return investments. In addition, the sale of the Iduapriem fleet that is part of the conclusion of the contract as announced in 20th of July 2026 is expected to generate a further $30 million to $40 million. There's also some further AMS idle surface fleet that is currently in Ghana and expected to be sold in FY '27, realizing an additional $10 million to $15 million. In total, these initiatives are expected to return between $140 million and $155 million to the Group, funding near-term opportunities that meet our investment criteria and support EPS growth.

It is important to note the timing associated with these sales. The first tranche of the BTP sale, $80 million, is due to arrive towards the end of October 2026, with the final $20 million due 12 months later. The $30 million to $40 million sale of the Iduapriem fleet is due to arrive at contract conclusion in December 2026. The final $10 million to $15 million for the remainder of the idle AMS fleet in Ghana will be collected as and when the fleet is sold and several buyers have expressed interest already. I will now pass on to Mike, who will take you through the financials.

Thank you, Vanessa, and good morning to everyone on the call today. I'll now walk you through the underlying profit and loss on Slide 13. Revenue in FY '26 was $3.46 billion, broadly flat year-on-year, a solid result given the changes in the portfolio. The completion of various projects impacted our revenue growth in FY '26 with the Botswana underground project finishing at the end of FY '25, accounting for circa $250 million of revenue. This was offset by increased drilling services revenue on rising utilization and several contract wins in Contract Mining, further highlighting the benefits of scale.

Our revenue and earnings quality has continued to improve in FY '26 with now over 62% of our revenue derived from Australia and North America. This further diversification into Tier 1 jurisdictions highlights the execution of our strategy. With the transitioning portfolio mix, our depreciation expense decreased by $23 million in FY '26 to 9% of revenue. This was a result of the higher depreciation last year for some large projects such as the Botswana underground project and 2 African surface projects, Mako and Sanbrado. All 3 of these projects had large fleets and have now been completed. Record EBIT(A) of $340 million, an increase of 2%, meeting our guidance for the fifth consecutive year. EBIT(A) margin improved to 9.8%, an outstanding result and underpinned by a strong contribution from Contract Mining, steady margin performance from both Drilling Services and Mining and Technology Services and an ongoing focus on corporate overheads.

Interest expense reduced by 23% to $54 million, benefiting from the significant reduction in gross debt over recent years and reduced leverage. Our effective underlying tax rate was 32.8% in FY '26. It is worthwhile noting that we do expect this to increase slightly into FY '27 to circa 34% as we repatriate cash from the AMS asset sales. Underlying NPAT(A) increased 8% to $192 million and underlying earnings per share increased 7% to $0.205 per share. Our reported statutory NPAT significantly reduced in FY '26 as a result of non-underlying adjustments of $148 million included in the statutory results. Accordingly, this has had a corresponding impact to our reported statutory earnings per share for the year. I'll provide further detail of these adjustments on the next slide.

Slide 14, the statutory to underlying reconciliation, which has more substantive adjustments than in FY '25. Looking backwards from our statutory results at the top, the amortization of customer-related intangibles has reduced further to $28.2 million in FY '26. This reduction was mainly due to several African contracts concluding during the year. To assist with anyone who needs to update their models, our CRI amortization will further reduce to approximately $15 million in FY '27. Net foreign exchange losses and other one-off costs were $8 million, predominantly due to unrealized FX losses, noting that last year, we did have an FX gain of $12.4 million. idoba product-related costs reduced further to $7.6 million during the year.

As a part of our year-end impairment procedures, we incurred noncash asset impairments totaling $54.3 million in FY '26. To break this down further, firstly, a $25.1 million impairment on idle AMS surface fleet due to localization changes in West Africa impacting surface mining contractors. Accordingly, this changed our valuation methodology for these assets and resulted in an impairment. As Vanessa mentioned, we plan to liberate a minimum of $10 million to $15 million of cash in FY '27 in relation to these idle assets that are currently not deriving any returns. It is important to note that this is separate to the $30 million to $40 million of surface equipment scheduled for sale that is currently operating at the Iduapriem contract.

So realizing redeploying this capital to higher returning projects will be beneficial for our shareholders. Secondly, we incurred a $29.2 million impairment on idoba-related goodwill and intangibles. In FY '27, idoba will see a further reduction in development expenditure and an increased focus on internal project application within Perenti. This accordingly changed the assumptions and the recoverable value of idoba at year-end. Going forward, idoba will be included in our underlying results and is included in our FY '27 guidance. Discontinued operations relates to the BTP divestment as announced on Friday last week.

The full year BTP revenue, EBITDA, EBIT contribution is included in the underlying result for FY '26 that shifted to discontinued operations in line with the accounting standards. The transaction is scheduled to return $100 million and as a result, booked a non-cash loss on the revaluation of the BTP Group of $64.4 million. For clarity, the EBITDA result shown in the reconciliation table is after corporate overheads charged to the business for support services. Finally, after the net tax effect of $14.4 million results in an underlying NPATA of $192.1 million.

Turning to the cash flow. At the half year result, we lifted our free cash flow guidance to greater than $170 million. After adjusting for 2 client receipts totaling $50.9 million received on the 1st and 2nd of July, we delivered a free cash flow of $181.6 million, up on the FY '26 guidance. Operating cash conversion was 97% after adjusting for the same 2 late receipts and our seventh year above 95% cash conversion. Net interest paid reduced to $52.8 million, following the early and final repayment of the 2025 Senior Unsecured Notes in July '25. Cash tax was steady year-on-year, and we do expect that to increase into FY '27 with the increased effective tax rate. Net capital expenditure was $321 million, slightly under our guidance of approximately $325 million. Dividends paid to shareholders have increased for the third consecutive year to $70.4 million and $13.1 million was utilized by the on-market share buyback.

Slide 16 shows the further strengthening of the balance sheet that occurred during FY '26. Consistent real free cash flow generation over the past 4 years has transformed our balance sheet position to the strongest in Perenti history. With the BTP Group being classified as held for sale, you will notice some changes on the face of the balance sheet with a held-for-sale asset and corresponding liability. This reclassification also has impacted the year-on-year comparatives for inventory and PPE on a like-for-like basis. Gross debt has reduced to $594 million and net debt reduced to $271 million. This has brought leverage to 0.4x, which now puts us under the previously advised targeted range of 0.5x to 1x.

While this is below our targeted range, we will continue to be very disciplined in deploying this capacity. Liquidity increased to $911 million, comprising of $323 million of cash and $589 million of undrawn syndicated facilities. In October '25, the new $650 million syndicated debt facility was completed on better terms and rates. The book was well oversubscribed and attracted several new domestic and international lenders to the syndicate. With several organic or inorganic growth opportunities ahead, the balance sheet provides substantial capacity for us to move quickly when the right opportunity presents. This will also be further bolstered upon the receipt of the first tranche of the BTP proceeds on completion of $80 million expected to be received around October '26.

Turning to Slide 17, highlighting our disciplined approach to capital allocation and free cash flow generation. Over the past several years, revenue and EBIT(A) have grown materially. Strong free cash flow has funded growth projects, allowed repayment of gross debt, dividends to be resumed and increased and 80 million shares have been bought back on the market and canceled. We believe this balanced approach to capital allocation allows flexibility to capture opportunities and drive sustainable returns to shareholders. We continually assess the relative returns available from growth, dividends, buybacks and debt reduction. Thank you. I'll now hand back to Vanessa.

Thank you, Mike. Slide 18 illustrates how our strategy is contributing to reach our long-term financial targets. We have several strategic levers that are being used to drive performance and deliver long-term value. As Mike mentioned, our balance sheet has never been stronger in the history of Perenti. This position of strength gives us significant optionality. The earnings quality and stronger margins give us confidence that the business can continue to deliver consistent returns.

In turn, the optionality provided by the balance sheet and the stability of the underlying business provides a platform to confidently pursue organic opportunities, particularly in Australia and North America. The decision regarding BTP demonstrates our active approach to inorganic opportunities and portfolio quality. We continue to assess acquisitions to add scale and capability to our group. And finally, we continue to prioritize delivery of free cash flow from operations because we appreciate the flexibility that this provides across the portfolio.

Over time, we continue to target revenue growth of 5% to 10% EPS growth above revenue growth with each project generating returns on invested capital above our risk-weighted cost of capital. Additionally, we target return on equity above 10% and free cash flow above 5% of the revenue. Whilst free cash flow generated by our operations provides us the optionality to invest, we aim to strategically allocate this cash in a way that we optimize our long-term TSR for our shareholders. In this way, we start with our dividend policy that has a range of underlying 30% to 40% of NPAT(A). We then assess between growth options, share buybacks and debt reduction, depending on the availability of options and the best return for shareholders.

A quality growth opportunity, either organic or inorganic, will usually outrank buybacks or further debt reduction, but the timing of when to invest in growth opportunities is important. Over time, countercyclical capital allocation maximizes TSR. And in this context, a strong balance sheet is key to enable transformational growth. Additionally, strategically timed buybacks are also attractive on an EPS basis and an important way to reward our long-term shareholders.

Turning to the outlook to give some color on the opportunity ahead. Work in hand at 30 June 2026 was $6.2 billion, and the tender pipeline has grown to $20 billion. Our work in hand number has been pushed up slightly during the second half following wins at Bellevue, Duketon and Fourmile, together with smaller contract wins and extensions across all divisions. The pipeline remains incredibly strong across all regions, with Australia representing $8.6 billion and North America, $6.4 billion. Gold remains the largest commodity exposure, whilst importantly, our copper pipeline has almost doubled in value from $3.5 billion at the beginning of 2026 to $6.6 billion. A number of near-term extensions provide further opportunity to increase contracted work for FY '27 and beyond.

Slide 21 highlights the strength and longevity of our client relationships. Our clients are extremely important to our business, and our many long-term relationships are one of our best indicators of our performance. This slide shows the current longest project for several clients. And importantly, our relationships with these clients often extend across multiple projects and are generally aligned with the life of the mine rather than a single contract term. For more than a decade, the renewal rate for our long-term contracts has exceeded 90% and when deciding which opportunities to pursue, we prioritize projects with long mine lives, lower unit costs, aligned values and financially stable owners. This has led to us working with many of the world's leading mining companies, including Newmont, AngloGold Ashanti, Barrick and Gold Fields as well as with the most significant and high-quality Australian mines.

Turning to FY '27 guidance. We expect revenue of $3.45 billion to $3.65 billion and EBIT(A) of $335 million to $355 million. This guidance takes into account the sale of the BTP business as announced. Net capital expenditure is expected to be approximately $370 million, which includes the previously announced requirements in FY '27 for Bellevue and Fourmile and an allowance for growth capital, net of the proceeds from the AMS fleet sales. Earnings are expected to remain weighted to the second half, consistent with prior years and the characteristics of our business.

The portfolio management related to BTP and AMS is expected to unlock approximately $150 million over the next 12 months. As outlined earlier, this capital will be allocated strategically to improve total shareholder returns. Several near-term options for capital exist within the $20 billion pipeline. A number of projects our team is already working on are scheduled to ramp up in FY '27, making successful execution of these projects, a key driver for FY '27. Our drilling team client engagements and internal data indicate that drilling utilization is gaining momentum, which bodes well for further growth in FY '27 and beyond.

Finally, our strategic and disciplined approach to capital allocation will continue, balancing growing dividends, EPS accretive organic and inorganic growth opportunities and the buyback to drive total shareholder returns. And in summary, FY '26 was another year of consistent delivery with record EBIT(A), strong margins, stronger cash generation and a further reduction in leverage. In this context, we are also rewarding our shareholders with record dividends since the inception of Perenti.

The portfolio is increasingly weighted towards high-quality opportunities in Australia and North America, while our long-standing African operations continue to deliver strong results. With a strong pipeline, a healthy balance sheet, combined with strategic and disciplined capital allocation, Perenti is well positioned to deliver enduring value and certainty for our people, clients, communities and shareholders. Thank you for your time. Mike and I will now take your questions.

[Operator Instructions]

And your first question comes from the line of John Campbell at Jefferies.

Firstly, just a couple of questions. Firstly, in terms of Contract Mining, with your pivot out of Africa, West Africa into North America and Australia, what are you expecting in terms of margins, EBIT(A) margins from '26 to '27 within your guidance for Contract Mining? Are you expecting a decline in margin?

Thank you.

So what we see today, and I think you've seen already that Contract Mining overall margins actually increased. So what we are doing is that with a very strong pipeline, we are definitely being focused on capturing synergies between projects and also ensuring that we are using well the opportunities. So -- as we go and get more and more in Australia and North America, we might see a slight decrease of margins, but I wouldn't expect that to affect anything materially.

And in the end of the day, we will have revenue growth, especially from the second half of this financial year growing into '28. So -- but the focus that we have today, for instance, is to ensure that we're capturing a lot of synergies between projects. So for instance, Goldrush and Fourmile, the 2 projects now being owned by the same entity, which is Nevada Gold Mines will definitely help us to keep our margins as high as we can.

Sorry, John, I'll add there is we still remain very committed to Africa. We've been saying that for a while for the right projects. So I just want to be clear on that as well.

Yes. Not [indiscernible] America.

Yes. I understand that. And just since you raised it, obviously, there's that nationalization movement afoot in Africa or at least in West Africa and it's impacted surface mining. Do you see any risks at all for underground mining?

I recently actually went to Ghana to see our operations there. Underground mining is very different than surface mining. Surface mining today, I think it is -- there is a lot of players there. There is a lot of incentives from, for instance, equipment suppliers. I think that some of that hits firsthand. But underground mining in terms of the -- what we really bring is the productivity and the techniques. And those are very difficult to localize. Of course, there's a pressure to work in joint ventures.

But so far, using -- managing those joint ventures haven't reduced our margins overall. So I'll say with underground mining, I'm still very, very confident we have some very good opportunities ahead. But also, I think we have longstanding in Africa. So we do have a lot of work with communities, a lot of work with government. So we're well positioned there to continue.

Look, last question. You pointed towards drill rig utilization going up in '26 and looking good for '27. Are there any numbers you can put on that, roughly how much of the fleet is utilized, that sort of thing?

Yes. Thanks, John. Average utilization across the 5 brands in FY '26 was approximately 70%. Our expectation into FY '27 that will get into the mid-70s. And there's obviously different utilization within the 5 brands, but I mean that's the benefit of scale and having sort of a market-leading drilling division like we do. So we are seeing some pretty good utilization is looking pretty good in July as well. So all things are looking okay at this point in time.

And your next question comes from the line of Mitch Sonogan of Macquarie.

Maybe just a really quick one maybe just following on from the drilling question. Can you maybe just talk to some of those headwinds that you saw in the second half? And obviously, Mike, you talked to utilization getting towards mid-70s. But yes, from a margin perspective, like how should we be thinking about that segment with what you can see at the moment?

Thanks, Mitch. In relation to the margin, so we delivered 10% in FY '26. We did have a lot of mobilizations in the second half of FY '26, which did create a drag on the margin. Secondly, we did see some cost increases off the back of the Middle East situation. So as we look forward, our expectation is that the cost pressure will stabilize and slightly improve, and we are expecting a slight EBIT(A) margin increase into FY '27 in drilling with increased revenue as well. And just to be clear, as I said to John just before, utilization is expected across -- in aggregate across the 5 brands to get into the mid-70% is what we're feeling like an appropriate assumption at this point in time.

Great. And just on the outlook, obviously, you've mentioned the idoba product development costs will be captured in the underlying. And I think that was at the EBIT line, $7.6 million in FY '26. What's expected in terms of that being absorbed in underlying in FY '27.

Thanks. With idoba, we're really focusing on now going forward with the product that's already gone into beta rather than spending too much in other projects in the pipeline. So we expect to be less than $5 million. And I think there's a big, I think, focus into really making sure idoba turns into profit.

Okay. Great. And just final one, Vanessa, just in terms of that pipeline, $20 billion. Can you maybe just talk to some of the bigger opportunities that are, I guess, due for award over the first half FY '27? And yes, just in terms of, I guess, a brief comment on the competitive landscape and our margins or bids being at margins pretty similar in line with current segment margins?

Yes. I think when you look at the pipeline near term, we have -- we are doing some negotiations for instance for our expansion with Geita in Tanzania. We're working with Newmont on Red Chris. And also, we expect to see some other players, other, I would say, greenfield opportunities coming to the market as well. So the focus is ensuring we get all the renewals in line with our plus 90% renewal rate and capture projects, especially in North America starting to move from early stage into production like Red Chris.

[Operator Instructions]

And your next question is from the line of Cameron Bell of Canaccord Genuity.

Just hoping you could flesh out the, I guess, the guidance impact from BTP. I saw the $3 million EBIT number, but you also mentioned that's after corporate overheads and presumably BTP is still growing. So could you flesh out the -- I guess, what kind of drag that is on the FY '27 guidance and therefore, we can make our own estimates on the underlying business is doing?

Thanks, Cam. Yes, so you are right. In the discontinued note shows a $3 million EBIT impact for BTP in FY '26. However, that is after the divisional overheads and the corporate overheads as well. So like-for-like, it's a little bit above $5 million impact in the FY '27 guidance for BTP.

And this concludes our Q&A session for today. I would like to turn the call back over to Vanessa for closing remarks.

Thank you. So in summary, FY '26 was another year of constant delivery. We had record EBIT(A), strong margins, strong cash generation, and we further reduced our leverage. So rewarding shareholders with record dividends and in particular, looking for growth. With a strong pipeline, a very healthy balance sheet, we are really well positioned to deliver value for all of our shareholders and in particular, to our clients. So we aim to be the safest, the most productive in the industry, and that's something that we are delivering, and we will continue to deliver in the years ahead. So thank you very much for listening to us today.

This concludes today's conference call. Thank you all for joining us. Enjoy the rest of your day. You may now disconnect.

Good morning, everyone, and thank you for joining the Perenti FY '26 First Half Results Call. My name is Mark Norwell. And presenting alongside me today is Mike Ellis, our CFO. Today, we'll take you through our first half performance and outlook for the remainder of FY '26. Overall, Perenti has delivered as per expectations and remains well-positioned to continue delivering strong earnings and cash flow for the year.

Starting on Slide 3, our diversified portfolio. For those who haven't been following Perenti closely, we are a diversified global mining services group with leading positions in contract mining, drilling services and mining and technology services. For example, our underground mining business, Barminco, is a top 2 global underground hard rock mining contractor. And our drilling division, comprising 5 specialist brands, is a top 3 global drilling business.

We believe that a sustainable business is one that consistently delivers for its people, its clients, the communities in which it operates and ultimately delivers enduring value for shareholders. To achieve this purpose, we have built a diverse company with 13 brands operating across 12 countries. Approximately 2/3 of our revenue is generated from underground mines, and currently, our work in hand is strongly weighted to gold projects. Our diversified portfolio, scale and market share creates a resilient business that can deliver consistent performance through market cycles.

Turning to the first half financial results on Slide 4. The first half of FY '26 reflects consistent delivery as we continue to evolve our portfolio and strengthen our balance sheet. Revenue was similar to the first half of FY '25 and EBITDA slightly lower, following the conclusion of the Botswana underground project at the end of FY '25.

As communicated in our FY '25 results, we successfully sold the fleet in Botswana, delivering a decrease in depreciation, supporting a new half EBITA record of $160 million. EBITA margin improved to 9.3% compared to 9.0% in the first half of '25, demonstrating the improving quality of earnings. Underlying NPATA increased 12.4% compared to the first half of '25 supported by lower net finance costs and improved operating performance. Underlying EPS increased to $0.098 per share, also up 12% from the corresponding period.

Normalized free cash flow of $33 million, adjusted for delayed debtor receipts collected in January, also improved on the first half last year. Net leverage reduced to 0.6x compared to 0.9x 12 months earlier. And our gross debt reduced to the lowest point since the acquisition of Barminco in 2018, following the repayment of the remaining 2025 senior unsecured notes in July 2025. As a result, the Board has declared an interim dividend of $0.0325 per share, an 8% increase on the $0.03 dividend in the first half of 2025.

On to Slide 5. And as always, the safety of our people remains our first priority. The continuous learning approach that we have adopted requires us to constantly seek ways to improve our safety systems, and ultimately, performance.

During the half, we continued to invest in frontline safety leadership and strengthened our company-wide safety leadership framework, which includes clear expectations for what safe work looks like. Divisional critical risk frameworks and verification tools have been updated, and we continue to focus on creating a safe and respectful workplace.

We also implemented practical safety enhancements across the business, including in-vehicle monitoring systems, improved operator visibility, upgraded gas monitoring and smart camera exclusion zones and standardized controls for working at height across the drilling fleet. While we continue to make positive progress as a business and as an industry, we need to maintain an unwavering focus on improvement to keep our people safe.

Moving to Slide 6, group performance. As mentioned earlier, EBITA increased 3% to a new first half record of $160 million, despite the strength in the Australian dollar at the end of the half, which has continued into the start of the second half. Our EBITA margin improved to 9.3%, driven predominantly by the transition away from the underperforming underground contract in Botswana.

As we've outlined previously and as demonstrated in the half-on-half comparisons, earnings and cash flow are weighted to the second half of the year. Contract mining will benefit from several contractual elements flowing through in the second half, and drilling services continues to see demand increasing with margin growth expected in the second half.

Turning to our divisions, starting on Slide 7. Contract mining contributed around 70% of group revenue and 74% of underlying EBITA before corporate costs. The significant transition in revenue mix continues in line with our strategy with new and existing projects substituting for projects that have concluded in Burkina Faso and Senegal. As mentioned, the conclusion of the underground contract in Botswana has helped to improve first half EBITA margin to 11.1%.

Work in hand remains strong in projects such as Great Fingall in Australia, Goldrush in the U.S.A. and Mana in Africa ramping up. The award of the Dalgaranga contract in July 2025 will also have a greater contribution in the second half.

As outlined on Slide 8, Drilling Services delivered revenue of $422 million, up 9% on the first half of '25 with utilization continuing to improve across the division. With drilling demand remaining strong, particularly in gold and copper projects, the division is positioned to benefit from margin expansion as market capacity tightens.

Swick, in particular, has seen strong demand, recently winning and mobilizing 3 new projects in North America. The multiple mobilizations temporarily impacted margins during the half. However, margins are expected to improve in the second half and into FY '27 as the new projects move to steady state and the benefit of improving market conditions are realized.

On to Slide 9. Mining and technology services has delivered improved performance compared to the first half of '25. The BTP rental fleet saw higher utilization with idle fleet returning to work, although still below historical levels. BTP parts continue to deliver below expectations, presenting an opportunity for improvement in the second half. idoba continued to focus on its underground simulation tool with costs reducing as planned with further reductions forecast in the second half of '26. Overall, our first half results met expectations with our balance sheet continuing to strengthen.

I'll now hand to Mike, who will provide more detail on our financial results.

Thanks, Mark, and good morning to those on the call. Thank you for joining us today. I'll now step through the financials in more detail, starting at Slide 10 at the underlying profit and loss for the half. Our revenue has stayed consistent on the prior corresponding period at $1.73 billion for the half.

As you're aware, the underground project in Botswana, which was our largest by revenue contribution in the prior half, at circa $120 million, completed at the end of FY '25. The collective team has done a great job to offset this during the first half of FY '26, driven by new work and scope increases in contract mining at the Great Fingall, Dalgaranga, Goldrush and Mana projects, together with increased revenue within our Drilling Services brands due to improved utilization.

Our depreciation has reduced from $168 million in the first half of FY '25 to $157 million or 9% of revenue this recent half. The primary driver was the transitioning portfolio in contract mining. 2 main points on this, selling the large underground fleet to the client in Botswana, which had significant depreciation in the prior corresponding period. Secondly, we had the conclusion of 2 surface mining contracts, Sanbrado and Mako that had higher depreciation compared to underground and drilling projects on a like-for-like basis. Looking forward, all things equal, group depreciation will normalize at low to mid-9%.

On to earnings. The EBITA result of $160 million with EBITA margin improvement to 9.3% was a strong result for our first half. It was underpinned by improved performance in contract mining, driven by the portfolio mix and operational delivery, consistent delivery from drilling services and a stronger result from mining and technology services compared to the first half of '25.

Interest expense was $28 million for the half, substantially down 20% compared to the first half of FY '25. This was due to the early repayment of the 2025 senior unsecured notes, further lowering our gross debt, providing us balance sheet capacity, but also ongoing earnings per share improvements.

Income tax increased marginally by 6% with increased earnings this half, representing an effective tax rate of 30.2% in the half. It should be noted that our effective tax rate for FY '26 is still expected to be 32% for the full year. Our underlying NPATA of $92 million is up 12% with an improved NPATA margin of 5.3%. Lastly and importantly, our underlying earnings per share increased 12% on the prior corresponding period, a great result for the half, driven by the EBIT margin improvements and reduced interest costs.

On to Slide 11, the reconciliation of our statutory results to the underlying results. Although pretty straightforward this half, I will provide some further color. Amortization of the customer-related intangibles was $19.6 million during the first half, but is expected to reduce significantly in the second half due to the completion of the Yaramoko underground contract in Burkina Faso in December. This contract formed part of the original Barminco acquisition accounting in 2018.

Looking forward, the amortization of customer-related intangibles will be circa $30 million for the full year FY '26 and will further reduce to circa $14 million in FY '27. idoba development costs of $4.7 million were down 30% on the first half of FY '25 following last year's review. They will further reduce in the second half to circa $4 million as the development spend for our simulation product reduces in line with the development milestones.

In FY '27, we will account for the development costs in our underlying earnings as the product moves into commercialization and development expenditure is further reduced. Net foreign exchange losses amounted to $4 million and predominantly related to non-cash movements of intercompany loans and tax balances, noting that the first half of FY '25 was an FX gain of $5.3 million.

Turning to the cash flow on Slide 12. Operating cash flow before interest and tax was $193 million, lower than the prior period, predominantly due to the timing of debtor receipts and creditor payments upon the completion of various projects in the half. We received $50.3 million of overdue debtor receipts in January, impacting reported free cash flow at period end.

As noted in prior calls, our cash conversion at the first half is generally impacted by short delays in client receipts and other temporary working capital movements. This has no impact to our overall liquidity profile. After adjusting for these late receipts, normalized free cash flow was $33.1 million, up 8% on the first half on a like-for-like basis and represented cash conversion of 77%.

As flagged in our FY '26 guidance, our free cash flow will be second half weighted in FY '26, which is consistent with the last 3 years of solid free cash flow delivery in the second half of the year. We are confident on delivering cash flow conversion in line with historical averages of greater than 95% for the year.

Net interest reduced in line with gross debt reductions and cash tax was down during the period due to the timing of tax payments. Our gross capital expenditure remained in line with the first half of FY '25 at $170.7 million with continued investment into our fleet. We also realized $21.4 million from the sale of assets and investments. This predominantly related to the sale of assets to clients that completed projects, including Yaramoko, Sanbrado and the Mako project. Lastly, you will notice the cash outflow of $135.4 million to repayments of debt as a result of the gross debt reductions previously mentioned.

That is a good segue to Slide 13, the balance sheet. As a result of the debt repayments, our cash balances reduced during the half to $275 million and back to normal operating levels, noting that it was elevated at 30 June, 2025 due to the sale of assets at the completed underground project in Botswana, which was received in late June '25.

Liquidity remains very strong at $818 million, supported by $543 million of undrawn committed facilities and $275 million of cash, providing significant optionality to pursue growth opportunities that meet our hurdle rates and deliver into the execution of our strategy.

During the half, we successfully completed a heavily oversubscribed refinancing of the syndicated debt facility, increasing the facility capacity to $650 million on improved pricing and extending maturities. As part of the process, we also welcomed several new domestic and international lenders to the facility, highlighting the positive support from the debt markets for the scale and the consistency that has been built over the years.

The balance sheet remains very strong and robust, offering good flexibility and our disciplined approach to balance sheet management positions Perenti to continue to pursue both organic and inorganic growth into the future.

On to Slide 14. Disciplined capital allocation remains our key focus to generate sustainable long-term returns for our shareholders. Since FY '19, we have invested to grow revenue and EBITA, both organically and inorganically, resulting in strong sustainable free cash flow over the past three years. This has enabled us to reduce net debt and leverage from 1.3x in FY '21 to a very comfortable 0.6x at reporting date.

With debt well managed, we resumed dividends in FY '24. And during periods of undervalued share price, we have bought back shares, increasing EPS. This balanced approach will continue supporting growth opportunities that meet our investment criteria, consistent sustainable free cash flow generation, regular dividends, share buybacks when suitable and maintaining a robust balance sheet.

In closing, earnings remained strong in the first half of FY '26 in a transitional year for contract mining, highlighting the scale that has been built in Perenti over the years. Our balance sheet continues to strengthen with significant available liquidity, creating capacity to continue to execute on our strategy.

Thank you. I will now hand back to Mark.

Thank you, Mike. As detailed on Slide 15, the outlook remains bright for Perenti. Secured work in hand at 31 December, 2025 was $5.8 billion, reflecting a normal drawdown of work executed during the half and partial replacement through some new and expanded projects.

The pipeline remains strong at $18.6 billion with North America representing a growing component of that pipeline. This month, Barminco received a letter of intent from Barrick for its Fourmile project in Nevada U.S.A. to undertake limited early work readiness activities. The letter of intent reflects Barrick's continued confidence in Barminco's technical capability and underground development expertise and represents an important step toward progressing the Fourmile project.

We'll continue to work together with Barrick toward finalizing scope and contractual arrangements with earnings anticipated to commence mid-FY '27 post formal award in the coming months. This is excellent news and demonstrates ongoing execution of our strategy to grow in North America.

With the neighboring Goldrush project also ramping up and the Red Chris mine in Canada currently in the process of finalizing mine expansion plans, North America work in hand could be significantly larger in a short period of time. Overall, the sheer number of opportunities provides confidence in the outlook beyond FY '26, although we will remain disciplined, patient and focused to ensure projects we secure support sustainable delivery of TSR rather than just short-term revenue growth.

Building on Slide 14, where Mike outlined our significant earnings growth and net leverage reduction as a result of consistent cash generation, Slide 16 illustrates how we have also evolved our portfolio since 2019. Firstly, the revenue of the business has more than doubled. All divisions have grown while also increasing regional diversification. The Australian portion of revenue has overtaken Africa as the largest contributor to the business, and the growth in the North American market is now gaining momentum for both Barminco and Swick.

In 2019, Perenti had no projects in North America. Now we have 8 projects underway today with an ever-increasing pipeline and positive outlook. A glimpse of the future for Perenti can be seen in the relative makeup of the pipeline. In FY '19, the opportunities were predominantly in Africa with the remainder in Australia. Now the opportunities are dominated by Australia first and North America second with new opportunities starting to emerge in the Middle East. Africa will remain a strong region for Perenti, but as always, projects must meet our risk and return hurdles. Overall, we have significant organic growth opportunities across our operating regions and services.

Slide 17, outlook and revised FY '26 guidance. The portfolio continues to deliver strong and reliable free cash flow, supported by the scale of the group and the improving quality of earnings. The recent strengthening of the Australian dollar has tempered expectations for the top end of our revenue and EBITA guidance.

Conversely, we have increased our free cash flow guidance to greater than $170 million with capital expenditure guidance reduced to $325 million. To achieve these targets, earnings and cash flow will be weighted to the second half of the year, consistent with the performance of FY '25 and prior years.

EBITA growth in the second half is anticipated to be bridged in a similar fashion to FY '25. A $10 million to $15 million step-up in contract mining is expected, $5 million to $10 million from Drilling Services and the balance from Mining and Technology Services. In addition, we will continue to see the benefit of our gross debt reduction in the second half in the form of reduced interest payments.

To deliver our full year guidance, the priority remains the focus on the safe delivery of services, continued investment in the development and capability of our people and supportive market conditions. Additional focus will remain on winning and extending projects that deliver sustainable value-accretive growth. Revenue growth alone is not the objective. Projects must be secured on terms that support profitability and free cash flow for the long-term success of our business.

With several projects ramping up, particularly in Australia and North America, discipline and consistent operational execution will be critical. Activity in the exploration drilling market continues to build, consistent with the early stages of a longer term trend. Consequently, drilling utilization is expected to lift during the remainder of FY '26 and into FY '27.

Finally, by maintaining a disciplined and balanced approach to capital allocation to organic and inorganic growth opportunities, Perenti is well positioned to continue delivery of enduring value to our people, clients, communities and shareholders.

On to Slide 18. In summary, Perenti has delivered a consistent first half with a new record first half EBITA, EPS growth of 12% and strengthened the balance sheet, positioning the group well for the remainder of FY '26 and beyond.

As announced at our AGM last year, this will be my final year with Perenti. While the Board is well progressed in the search for a new MD and CEO, my focus remains on supporting our people to safely deliver FY '26 and in time supporting the Board and the new MD and CEO to transition to new leadership. Details of the transition will be shared when the new MD and CEO is announced. In the meantime, it is business as usual.

Thank you all for your time today, and we'll now move to Q&A.

[Operator Instructions] And today's first question will come from Sumeet Ozarde with Citigroup Global Markets.

The first one, just could you talk about some of the contract mining opportunities, new and renewals that we should be thinking about in the next 12 to 18 months?

Yes. Thanks, Sumeet. Audio is a bit challenged, but I think you're asking me about contract mining, pipeline. So I guess, firstly, I'd say that the pipeline is significant and certainly very strongly weighted to North America and also Australia and still some very good opportunities in Africa. So the outlook is extremely positive. We know that the [Technical Difficulty]

Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect. [Technical Difficulty] Pardon me, this is the operator. We would like to resume the question and answer session. [Operator Instructions]

Well, it's Mark Norwell. I might pick up on Sumeet's question that I was midway through answering. Firstly, apologies for the technical challenges that we've been experiencing this morning. So hopefully. we've still got a few folk on the line. Sumeet's question was regarding the outlook for contract mining, and I'm not sure when it dropped off, so I may repeat some items that we already covered off.

Certainly the pipeline is extremely strong in terms of the outlook. The thematics of underground mining, very strong, and obviously, commodity price is very strong as well. In the near term and as announced in our results to date, we are working with Barrick for their Fourmile project in Nevada. We've had a limited notice to proceed for early works there. Expectation for that to come online in FY '27. So we're very excited about the Fourmile opportunity.

I visited Nevada a couple of weeks ago and visited the Goldrush project for Nevada Gold Mines. We see some potential expansion there. So really the Nevada region looking strong. Red Chris project with Newmont up in British Columbia. We've been there for several years. Newmont are working through expansion plans currently. And subject to that continuing and getting approval from Newmont, we're well positioned to hopefully secure more work there.

We're also in discussions with another client in North America that we're sort of hopeful of for an outcome into FY '27. So very strong there. In Australia, we got a couple of active tenders at the moment for Barminco that we're working through and we still have a number of projects in the pipeline for Africa as well.

And finally, with a number of existing clients we've worked with for many, many years, supporting them on expansion plans as well. So in summary, a very strong outlook for contract mining and also a strong outlook for drilling services into FY'27.

[Operator Instructions] There are no questions at this time. I'll now hand back for any closing remarks.

All right. So maybe due to the technical difficulties, got off easy today. But look, thanks for people bearing with us with the technical challenges, but importantly, thank you for joining the call.

Look, we delivered a strong result with our earnings continuing to improve. We are well positioned to deliver another full strong year ahead and we do have a very good line of sight to opportunities across our divisions into the back half of '26 and into '27, particularly with North America. We're getting some really good momentum into North America at the moment. And our collective earnings between North America and Australia have really shifted over the last several years as we've been growing the business and obviously improving the balance sheet.

So not only does the outlook look positive, but we also have the strong balance sheet in place to be able to support significant growth in the future. We will maintain discipline with that growth obviously and look for the long term, not just sort of one year, it's sort of many years ahead. So thanks for taking the time to join the call. Enjoy the remainder of your day. Thank you.

That does conclude our conference for today. Thank you for participating. You may now disconnect.