Jakob Stausholm: Thank you. That’s a super good question. I think there are different perspectives around what is best operators because, first of all, what we needed to do was to stabilize operations and stabilize our production as — well, that’s pretty evident. And one of the message to do that was to complete well and implement and now also finally ramp up the 4 replacement projects. But we have done much, much more in terms of a period of time now investing more in sustaining CapEx, seeing that those money are being spent well, improving maintenance. And I have to tell you, this Safe Production System, Peter spoke a lot about it, is I’m super, super excited about it. Because what does it mean to be best operator in the Pilbara?
Actually, you have to go from mine to mine and meet the teams and find out how you’re actually working things here, how are you addressing things. And what I’ve seen in the places where we have implemented is absolutely amazing. It is kicking in, but you just have to be a little bit patient. If certainly I become too impatient, we will not get the full value out of it. It doesn’t happen by setting top-down targets. It actually happens by empowering people. They’re super people, they all want to achieve. We just need to make that happening. So the first thing you see was stabilizing production. I hope you can see we are on a good trajectory. The second thing as well is we’re actually improving the quality of the iron ore as well. And the third thing is absolutely efficiencies.
But you’ve got to take it a bit — take a bit more time for it. And obviously, right now, there’s enormous inflationary pressure. But the more successful we are in terms of removing idle work, irritants, et cetera, being more productive, the less requirements we have to people and there are very few people available there. So that is kind of getting into a positive cycle. I’m not pushing it too hard because there are pieces of work on maintenance that to me is more important than demonstrating short term the perfect unit cost. But I would say to you, it was a bit of a bet when I, 2 years ago stated this about being best operator. But particularly here in the fourth quarter and early this year, where at my site visits, I think I see the data points that gives me confidence that we are on the right track on the journey.
And I think I said in the presentation today, we have the best ahead of us. Thank you.
Menno Sanderse: Thank you, Kaan. Next one here in the room, Robert — Richard, sorry.
Richard Hatch: Richard Hatch, Berenberg, Robert is my friend. A question on OT. Sorry to harp on about it again. It’s around comfort. First question, Slide 20, your production guidance is based on 2020 technical report. Are you comfortable that you’re not going to have to cut that based on having to leave stability pillars in Panels 1 and 2. And also comfort around fiscal terms, say — sorry, not fiscal terms, comfort around the intercompany lane. So the intercompany lane must be sitting about $9 million, $9.5 billion, LIBOR plus 6.5%, so compounding at about $1 billion a year. Are you comfortable that all of that cash coming to you and not being shared — well, shared in your terms with the government is not going to frustrate relations with the government and, therefore, create challenges in the medium term?
Jakob Stausholm: Thank you. Great question. So Bold, I have the same questions for you.
Bold Baatar: Now, look, I think I could be as comfortable in predicting the future with certainty. And yes, I mean, I think at the moment, we have a great relationship with the government. We work with them on a transparent basis. But this is a risky underground technical block-caving project. And I think we just have to be absolutely honest about that because I think we need to look at and how we have the best technological data sensors and, et cetera, but it’s going to be an evolution. And certainly, we have the best team and capabilities looking at it, but we’ll be transparent with you as things develop. But the one thing I cannot give you is a guarantee on your NPV with absolute 100% certainty. This is a risk that investors, we are all taking. And at the moment, we’re very comfortable with partnering with the government and, obviously, our stakeholders here.
Jakob Stausholm: Look, it’s a very good question. It’s a very difficult question. We had a setback in 2019, as you will recall. I’m absolutely convinced that we learned big time from it, and I am very impressed with the teams that are working on it. And they are also very honest. There are real risks here, but I feel that they’re really on top of it. So I’m kind of cautiously optimistic on that front. And the better we perform in the mine, the better we can also find good solutions with the government. Obviously, the last thing we want to do is to disappoint the government.
Menno Sanderse: Myles? Sorry, Richard, just one second.
Myles Allsop: Myles Allsop from UBS. Maybe a question for Peter. You got a 40% to 60% payout range but you’ve never paid less than 60%. So why keep the 40%? And maybe just how does that play relative to net debt? I mean, it’s obviously crept up a little bit, $4 billion. Where — should we expect specials when you go back to net cash? And how much M&A firepower do you have?
Peter Cunningham: That’s a lot of questions in one.
Myles Allsop: Multi-pronged.
