6 Reasons Why CoTec is a Compelling Opportunity

0:08 Hello, everyone, and welcome to Kotek Holdings Live Investment Summit today, hosted by 6. I'm pleased to introduce President, CEO and Director of Kotek, Julian Traeger. He's going to walk us through 6 of the best reasons why Cotech is an interesting and exciting opportunity right now. And with that, Julian, I'd like to hand things over to you. Thank you so much. I mean, we've been hard at work this summer, further developing the Cotech story, and we are convinced as ever that we're on a great track and doing some super interesting things which fit well into what the world needs, particularly with the macroeconomic developments in energy, in carbon saving and obviously the way in which the world is moving around security of supply with the unfortunate war in the Ukraine. So I think the first reason Kotech is compelling is that we've been adding a lot of value and although the stock hasn't dropped as many other natural resource stories have, we think it now trades at a very significant discount to its true valuation And that will be highlighted and daylit in the coming weeks as we see our results come out, which are due in the next week or 2, and also as we see the progress of some of the investments which I'll talk about later.

1:37 I think the second major reason that we're compelling is the quality of the board. We have, in addition to Tom Albanese, who ran Rio, we have Sharon Fay, who recently joined the board, who was the CIO of Alliance Bernstein. And we have just appointed to our advisory committee the gentleman who was in charge of Rio Tinto's venture business and is well respected in Australia. So continuing to attract very high quality individuals who believe the story. The third reason is that there's a tremendous amount of optionality within the portfolio which is not being valued yet, but we have rights to technologies where when we apply them to assets that will create a lot of value.

2:38 And when I talk about MagA and that's an example of that, but we have multiple opportunities like that to pursue. And then the last couple of reasons are really around what's happening within the portfolio to our portfolio companies. So, Binding Solutions is progressing rapidly. We're very excited about the potential application of their technology to EAF furnaces, which is the future way of making green steel. And that's attracting a lot of attention. They recently went to Japan and met a number of Japanese steelmakers who really want to continue the dialogue. And so we expect the next funding round will be at a multiple of our last valuation, which itself was almost double our original entry price of $70 million.

3:39 In the case of Magine, we have both acquired a 15% stake in a business which has a replacement value today of close to 1 billion dollars. And we have almost 1 billion dollars of contained iron ore in the ground in Minnesota, which is super important now that the US is moving towards greater security of supply. And there, we made an investment at a low entry price. The recent round valued our stake at, you know, more than double what we invested at. But ultimately, we think this has a lot of upside and we are looking for the next round to be a multiple of the $35 million the company's currently valued at. And then lastly, we have committed to, and we've started investing in, this very exciting magnet recycling technology, which is a world leader.

4:41 It's very green. And it allows 1 to take magnets from existing places like fridges or high-fives and extract the rare earths from them. And since both magnet supply and rare earth supply is very dependent upon China, Again, this is super strategic for the US, and we're starting to speak to the US government about how we could bring this technology to North America. And that could be a big story. In addition, there are some very exciting technologies. We are looking at technologies which can expand the efficacy of potash. So at a time when that's really been, markets been disrupted by the Ukrainian war, that's particularly valuable.

5:28 We're also looking at a very interesting technology which can take nuclear waste and de-radiate it very quickly, which we're exploring. So you know this whole area is fascinating but it has lots of applicability and We think the story has a long way to go. So super excited about it and love to get your support.