Beowulf Mining (LSE:BEM) — Investor Presentation and Q&A

0:00 Good morning, and welcome to the BEOWULF MINING PLC Investor Presentation Q and A. Throughout this recorded meeting, investors will be in listen only mode. Questions are encouraged and could be submitted at any time by the Q and A tab situated on the right hand corner of your screen. Simply type in your question and press send. The company may not be in a position to answer every question received during the meeting itself. Have the company review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. I'd now like to hand you over to Ed Bowie, Chief Executive. Good morning. Good morning, and thank you, Paul. And thank you, everybody, for attending today's presentation. So I'll initially just run through the corporate presentation and then look forward to receiving and answering any questions that you may have.

0:46 So BEOWULF MINING, as I'm sure most of you are aware, is focused on delivering critical raw materials for the European green transition.

0:56 We are a UK registered company listed both on the AIM market and the Spotlight market in Sweden. 80% of our register is currently on the Spotlight market. We have two core assets. We have Jocmok Iron and the Callak iron ore project in Northern Sweden. Callak is capable of producing an extremely high grade concentrate suitable for supporting the decarbonization of the steel industry. We're completing a prefeasibility study on Kawak at the moment and looking to submit the environmental permit application later this year. In Finland, we have GrapheneTech, a business focused on developing an anode materials plant and with a number of other graphite projects.

1:44 And then finally, we have a portfolio of exploration assets, including Vardar Minerals in which is focused on Kosovo, but we have other exploration assets in the Nordic region. We are in the process of undertaking a capital raise. The raise we we have secured £2,100,000 so far. Of that, we have 750,000 from financial institutions. So this is an important step forward for the company, bringing some long term strategic investors onto the register. Coupled with that, we're looking to add additional funding through a UK retail offer and a rights issue in Sweden.

2:30 And both of those are live. The subscription periods are open for both. The rights issue will conclude on Monday of next week, and the retail offer concludes at the end of this week. Further details are on the company's website. We operate primarily in the Nordic region. It's an area where environmental regulation is is robust. Permitting regimes are are stringent and and rigorous, and the local population and government is very conscious of social environmental impacts. We see this as a positive. We also benefit from being in the region. It's a significant producer of renewable energy, so we can operate with with clean renewable energy in in in with our core projects.

3:28 But there's also an enormous amount of innovation relating to decarbonization and and transition to the green economy, and we are looking to benefit from that as we develop both graphene tech and drop more iron mines. So first, I'll I'll talk about drop more iron. This picture shows some drill core from the project, and the the in the middle of the picture, there is a magnetic pen so you can see how magnetic the ore is, and this is a critical feature of the project. It enables us to upgrade the material through physical upgrading, benefication, and to to an extremely high grade concentrate. So its magnetic properties are important.

4:16 The map shows the the Calak project. It comprises three defined deposits. Calak North is the core asset at the moment. There are two Calak South deposits that have been drilled, but the focus is is on Calak North. Within Calak North, we have a resource able to sustain production over a thirteen year mine life, fourteen year production life. And that sits within the blue circle, which is the exploitation concession, which was awarded to the company in 2022. The green squares are our exploration licenses, and we have further exploration licenses south of the Little Lulea River, which runs just to the south of Calak North.

5:04 Importantly, this river is has significant hydroelectric dams on it, so is a major contributor to the renewable energy production in this part of Sweden. So as I mentioned, the core feature of the deposit is that we can produce an extremely high grade concentrate, but it has a number of other benefits. We are in an area, as as I've mentioned, with a lot of renewable energy generation. We are in also in a region which has seen very significant large scale mining over many decades. So the little inset in the in in the top of the image shows the map of Sweden. We're up in the Arctic Circle in Norbottom County. To the north of us, we have significant mines such as Mount Beriot, Kiruna, both run by LKAB and major iron ore mines.

5:55 There is also Boliden's Aitik mine, which is Europe's largest open pit mine, all all within a 150 or so kilometers from the Kalak project. So there is significant infrastructure and a skilled workforce with experience in operating large scale mines in the region.

6:18 So the importance of CALAC is that we can produce this high grade concentrate. The reason that is important is the steel industry is seeking to decarbonize. It currently constitutes about 7% of global c o two emissions, and the industry's ambition is to reduce the carbon emissions intensity by about 60% by 2050. That requires adoption of new technology, transition from blast furnace to electric arc furnace, And these the these factors require high grade iron ore. Typically, iron ore contains a number of impurities, including silicon and alumina. These are called gang minerals, and they will block up a an electric arc furnace. So the critical factor for the greens transition decarbonization of the steel industry is high grade and low gang concentrate, and that is exactly what CAWAC can produce. There aren't many projects globally that are able to produce this material, and therefore, there's expected to be a bifurcation in the industry and high grade iron ore concentrates receiving higher premiums than they currently do at the price sort of opening up for for high grade over more standard concentrates.

7:46 We've done a lot of work towards the prefeasibility study at CALAC. We have done all the metallurgical test work. We have designed the site layout, the processing plant and flow flow sheet, and we've made significant progress with transport, logistics, and and broader infrastructure issues. The deposit, which is the pale gray sort of oval in the left hand side of the image, outcrops at surface. The strip ratio of waste to ore is very low, point five to one, so we don't have to move an awful lot of waste to to access the the ore body. The in situ grade is about 28%, and we will be upgrading that to about 70%.

8:36 So, initially, the the ore the the the the waste, sorry, is stockpiled in the waste rock dump, which is the brown sort of shape to the the the north of the image. The ore is then processed through the processing plant, and the concentrate is shipped to the rail terminal, and I'll talk a little bit more about that. And the tailings from the processing is stored in the in a conventional tailings dam. We intend to produce about 2,700,000 tonnes a year of concentrate. And and as I mentioned before, it's extremely high grade. Onto the logistics and transportation, we are very well placed to benefit from existing operations and existing infrastructure.

9:31 So we are 40 kilometers away from the Inlands Barn And Railway, and the intention is our preferred option at the moment is to use a slurry pipeline. So as I mentioned, we will be processing producing a a high grade concentrate. This is a wet process, so it will be in slurry form. We will pump that slurry in a pipeline to the railhead where it will be dried, filtered with with a filter press. The water will then be returned to the mine in a separate pipeline, to the mine side, I should say, and used again and re reused in the process. And the concentrate in dry cake form will be loaded onto the the rail and rails to the north where it will then join the Mounbarnen, which means iron ore railway, and that runs from the Baltic Botanyan Coast at Lulea all the way to Narvik on the Norwegian coast.

10:33 Our current preference is to use Narvik as our port. It gives us access to a deep water ice free port so we can use capesize vessels and access international markets. The Baltic is obviously freezes in the winter and has a lower berth, so you can't take larger ships into the into the Baltic. So logistics is is very well advanced. We are still doing a bit more work on the slurry pipeline, both technical and environmental. It is a very well known and understood technology. However, it hasn't been used extensively in in the in the Nordic Region, and therefore, we wanna make sure that we we we do all the work that we need to to make sure that it's it is fit for purpose and it is something that authorities and permitting regimes are able to understand, and and we can we can permit accordingly.

11:39 So we are well advanced on on both the environmental permit application and also the prefeasibility study. We have a number of items that are outstanding with respect to the the permit application. These relate partly to the transport corridor and ensuring that we can permit the the pipeline solution. We are also doing a social impact assessment and and completing the World Heritage Impact Assessment. With respect to the technical work that's required, again, a little bit more work on the pipeline, and then we need to do the economic analysis. But the the the one key element that we still still remains to be done is the infill drilling.

12:28 The the open pit has a little bit of inferred material in the north close to surface. In in a scoping study, this can inferred material can be included. In a prefeasibility and feasibility study, you can't include inferred material. So we want to convert this into the higher confidence measured and indicated categories. It will then be included in the resource estimate, can then be included in reserves, and ultimately in the mine planning. So we we're not anticipating the the 80% of the resource is already measured and indicated categories, so we're not anticipating any significant change, but it's something that we just have to do to comply with the pre feasibility study requirements. The scoping study that I mentioned, the economics are presented on the left hand side.

13:20 We believe there is very significant upside to those economics, and I can explain where those upsides come at this stage. So just comparing on a on a sort of like for like basis, the scoping study anticipated that two thirds of the material would be lower grade, lower quality, and therefore be used as blast furnace feed. This material was only anticipated to deliver a $29 a ton premium. What we've demonstrated through our metallurgical test work is we can produce actually a higher volume of material at the at the DRI grade, the direct reduction grade, and that commands a $45 a ton premium. So we're getting the full premium on a 100% of our product. As I mentioned before, we are seeing a bifurcation in the in the sector, and we are seeing those premium increase. So we we do anticipate that over time, higher quality material will come on an increasing premium over lower quality.

14:27 The other factor to point out is the benchmark price that was used, long term benchmark, was $80 a ton. Now the benchmark price for 62% FE is presented in the chart at the top of the top right hand side of the slide. The average over the last five years has been a $125 a ton, and the price has rarely touched $80 a ton over that period. We've used a long term consensus price of $97 a ton, and that delivers close to a billion US dollars of NPV and an IRR north of 30%. So robust economics. We obviously we need to update our capital cost estimate, operating costs, we've obviously revised the design of the the plant.

15:22 There will be some areas where costs go up, including the the the pipeline, but there are other areas where we've made significant savings, including with the tailings facility where we've already priced the the the the changes on the tailings, and we will we anticipate significant savings there. So there will be some movement both up and down, but but and and those numbers will be updated in due course. Longer term, there is further upside with CALAC. This image shows the broader exploration license portfolio that we have. The pink areas represent magnetic anomaly. The the it was flown for magnetics some years ago.

16:08 And the the magnetics obviously follow the two the the Calak North and the Calak South deposits, but there's also extensive material to the south of the Little Lilia River. There have been two drill holes in in south of the river, both hit economic intersections, in terms of grade and and widths. So there is an expectation that we can grow the resource very significantly. Indeed, the the exploration targets have been put on the on the magnetic anomalies of up to 700,000,000 tons of material. So a significant increase on our current 136,000,000 tons of of resource in Calak North.

16:53 Now moving on to GrafenTech. GrapheneTech is our finished graphite business, and we are focused on delivering a an anode materials plant, processing graphite to produce the precursor for lithium ion battery anodes. Until August last year, we had a site reserved in the Gigavasser Industrial Hub, which is on the West Coast Of Finland. We actually allowed that that that reservation to lapse for a number of reasons, And we are in active discussions both with, but with a number of other sites about potentially locating our our our plant there. Last week, I was in Finland with Rasmus, and we visited one potential site. We think it has very significant advantages, and we are looking to to to move forward and make a decision on our final decision on where to locate the plant in the coming months.

17:54 In addition to the development of the plant, we have a number of exploration projects. I will touch on those later, but just to highlight the Italampi project in Eastern Finland, which currently has one of Europe's largest flake graphite resources. And just eight kilometers away from it, we have Raptorsjave, which has the hallmarks of being a similar size.

18:23 So the graphite market, graphite can be sourced from both mines, natural graphite, but also synthetic graphite, which is essentially a byproduct of the petroleum industry. Both sources of graphite are used in the production of anodes for lithium ion batteries. The expectation is that the the composition of batteries will increasingly favor natural graphite because it is lower cost to produce and has a lower environmental footprint.

18:59 The key thing about both supply chains of of natural and synthetic graphite is that China constitutes 75% of the market. And elements of both supply chains, they control nearly a 100%. So very strong monopoly on the graphite space. Europe is aiming has has under the Critical Raw Materials Act has classified graphite as both a strategic and a critical raw material. If the growth in electric vehicles is as expected or even half as much as it's as it was forecast, there will be a huge increase in demand for graphite going forward. The Critical Raw Materials Act has a target by 2030 of mining 10% and processing 40% of internal consumption.

19:53 Currently, there is very minimal mining, and there's no processing capacity within Europe. So there is a huge market potential to to fill, and GrapheneTech aims to do that. We've recently completed the prefeasibility study on the anode materials plant. We're we're very focused on developing this in Finland. Finland has Europe's lowest cost energy, and it's also very low carbon energy. So no reliance on low reliance on fossil fuels. Finland also has a very long track record of mineral processing, excuse me, and so has skilled workforce and expertise and understanding of the mineral processing sector.

20:47 So we feel it's a very positive place to operate. We also get significant support from Business Finland and other organizations looking to develop green industries in in the region. Our plan is initially to import graphite concentrate. It then passes through a three stage process, spherinization, which essentially forms uniform particles, purification, which takes the concentrate and upgrades it to a grade of 99.95% fixed carbon content and higher. And then the final stage is coating where a carbon material is coated around the the fine spherical graphite, which improves the physical and electrochemical properties of the anode material.

21:37 And the final product is called CSPG or coated spherical purified graphite, and that is the anode precursor. We initially plan phase one production of about 25,000 tons of CSPG. We'll also produce some fine material, and this material has a number of potential uses, industrial uses. We we need to do more work to investigate those, but it could be a valuable byproduct. We recently completed the prefeasibility study. We demonstrated we that the technology that we're using can can produce battery grade material. But, importantly, we've demonstrated it can do it with very robust economics.

22:24 So for an an initial capital expenditure of €225,000,000, we can generate an IRR of 37% and an NPV of close to €1,000,000,000. So extremely profitable project generating free cash flow in excess of a €100,000,000 a year when in full production. Importantly, we anticipate that the that the plant will be a very low cost producer relative to existing producers and our peer group. There are a number of reasons for that. We benefit from the low cost energy in Finland, but also the process that we're using is a more environmentally friendly process and requires less personnel to to manage the hydrofluoric acid, which is a is is used in in a lot of conventional anode production currently.

23:23 So we see that as we we we can deliver low cost and low environmental impact anode material. In terms of the development timeline for the anode material plant, we have completed the prefeasibility study, and we are well advanced with the environmental impact assessment work. Once we have identified the site, which as I've mentioned, we we hope to do in the coming months, we can complete the environmental impact assessment with the site specific requirements. The intention then is to initiate the pilot test work. We need to produce sufficient material that we can prequalify it with the end users and also demonstrate that our process works at scale. So it operates well at bench scale, but we need to prove that it it also works at pilot scale.

24:21 That will take us through the the balance of 2025 and into 2026. We'll then have a two year construction period and hope to end production during in in 2028 or 2029.

24:39 Our longer term strategy is to build a fully integrated vertically integrated graphite business in Finland. I've mentioned Italampi, one of Europe's largest flake graphite resources. There is scope to grow that resource. And Rapaciave, the the the the lower of the two maps on the right hand side of the slide, has the hallmarks of being at least as large and potentially higher grade. The pink material on the on both maps is electromagnetic high, indicative of graphitic schist material. And and, obviously, there is at least as much material in the Rapaciave project. Rapa Syawi has never been drilled, but the surface sampling that has been done has delivered higher grade material than we found at Italampi.

25:29 We've done metallurgical test work on both projects. Both are amenable to upgrading to battery grade, so we believe they'd be very suitable feedstocks for the processing plant. But our strategy is to maintain these projects in in in good standing to advance them, but really focus on developing the graphite anode material plant in the first instance, and this is a longer term strategy. Moving on to our exploration portfolio. Initially, Vardar Minerals. Vardar has a large exploration portfolio in the in Kosovo, which is in the heart of the Tethyan Belt. On the map on the right hand side, I've highlighted a number of of the world class assets that are located in the Tethien.

26:21 And the the two that I point out are the Stanturg mine, which is controlled by Trepka, Kosovo's state owned mining company, and Rio Tinto's Yardar deposit in Serbia.

26:39 The Stanturg mine is surrounded by our Mitrovica licenses on the left hand map on this slide. Stanturg has been one of Europe's largest lead zinc mines over many decades. It is undercapitalized and underperforming now, but it is still just about in production. There was a huge refinery and smelter complex in Mitrovica. It is no longer in operation, but the focus during Yugoslavian times up until the nineteen eighties was to find more material for that lead zinc smelter. So exploration was focused on lead and zinc exploration, and and other commodities were were overlooked.

27:26 We believe that we have potential for Stanturg analogs. So we have similar geology, similar material, particularly at the red lead deposit in in the or red lead target, I should say, in the south of of the metro vehicle licenses. But we have other exciting opportunities here. So we have found what we think is an epithermal gold system, high sulfidation in the Mardan Peak licenses in the center of the MitraVika licenses. And indeed, we believe there is potential for porphyritic copper material. We've we found both porphyry with anomalous copper and other minerals, Not at economic grades at this stage, but it is indicative that this system is being driven by that this huge system is being driven by a large porphyry at depth. So requires further exploration.

28:24 We're in discussions with a number of different parties about coming in and joint venturing so that we can benefit from their expenditure and expertise in in such a large target without incurring the costs ourselves. In the East Of Kosovo, we have the Viti licenses, and I would just flag the the circular structure in the middle of the map. This is an ancient Miocene basin. It is the same geology as and and age as the geological setting for the Yardar deposit. We've done a little bit of stratigraphic drilling, and we've done significant spring water sampling. Both have demonstrated anomalous lithium and borate.

29:10 So, potentially, we're we're looking at a similar deposit type to the Yardar deposit. Again, no discovery hole at this stage, but we are in discussions with a number of large mining companies about potentially joint venturing this this project.

29:29 We have other exploration licenses with very interesting potential. So we have a a copper gold target just to the south of the Calac iron ore project. This could be what's described as an iron oxide copper gold target, of which there are a number that have been described in in this part of the world. We've received returned very high grade up to 14.6% copper from boulder sampling that we conducted in the last couple of years on the license. Historic drilling has also delivered significant and interesting results. In Finland, we've got the MS project, which is was drilled by the Finnish geological survey.

30:18 They were doing essentially scout drilling, intersected very interesting and highly anomalous cobalt and nickel grades. We've done a little bit of surface sampling, and the intention is again to find a partner to move these projects forward. So in summary, our core assets are in the process of being derisked or are significantly derisked already. So we have completed the prefeasibility study on Grafinetec and are very well advanced with CALAC. We believe both are very have have strong growing markets, particularly given the the the focus on decarbonization, electrification.

31:04 And we're in very good jurisdictions benefiting from innovation and robust permitting regimes.

31:16 We we we also have an exciting portfolio of exploration assets. Our intention is not to progress those too aggressively ourselves. We will do low cost exploration, but we are actively in discussions with a number of parties to move those forward. We'd retain exposure to the upside and and but but somebody else would be spending their money and so it would be a win win for us. So plenty going on in the portfolio. I'm very focused on delivering our core assets, moving them through the the the next derisking phases, at which point we believe we can attract significant strategic support from from potential strategic partners demonstrate the real underlying value of the assets.

32:06 So with that, I intend to stop the presentation and hand back to Paul. Fantastic, Ed. Look, thank you very much indeed for the presentation. Ladies and gentlemen, do please continue to submit your questions just using the Q and A tab situated in the right hand corner of the screen. Just while it takes a few moments to review those questions submitted today, I'd like to remind you the recording of the presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard. Ed, I know I haven't given you a great amount of time, but if you'd be so kind, to click on that q and a section. And where appropriate to do so, just read out the question, give your response, and I'll pick up from you at the end. Thank you. Great. Many thanks. So the first question is, how does the company plan to return value to shareholders following this raise? So the the the plan is very clear.

32:57 We have two core assets, one that we've just completed prefeasibility study and one that the prefeasibility study is well advanced. We intend to progress both those assets, particularly the CALAC asset, to get that through the prefeasibility study. The the the market over the last number of years, five years or so, has been very challenging for junior resource equities. We see that that is has been changing this year, partly driven by geopolitical tensions, but that have really brought raw materials to to the forefront of people's minds. And so, you know, I I I'm hopeful that there will be a a general rebound in the market.

33:45 But regardless of that, we the under derisking the the the core assets, we think, will demonstrate their true value, and we'll be able to move the projects forward, potentially bringing in strategic partners and and and demonstrating the the underlying value. So very hopeful that we'll see a significant uplift in the in the valuation of the company going forward. The second question, can you provide an overview of the expected use of funds? So just to recap on the capital raise, we have secured £2,100,000 to date, and I'll just flip back to the capital raise slide.

34:41 If the rights issue and retail offer are fully subscribed, we will raise £4,500,000 in total. So there is a an element of uncertainty about how much we will we will end up raising, And this will determine how quickly we can move forward with both our projects all all our projects. If we are fully subscribed, we will be able to advance aggressively with CANAG. We will be able to initiate the drill program. We we would complete the prefeasibility study and the environmental permit application during the the the rest of this year, and we would be able to push forward with the pilot testing at on on the anode material plant. The the the primary focus, if we raise less than that, the primary focus is gonna be on progressing CALAC to a through those key milestones.

35:35 We we have a number of discussions, live discussions with strategic partners on GAMP, and so that would represent an alternative source of capital so that, you know, our funding would would be focused on on on Carac. The next question, question three, is will funds from this raise go into building and upgrading the wider infrastructure around CALAC? The short answer to this is is essentially no. The funding from this raise is focused on delivering the studies. So it is certainly looking at the the the wider infrastructure around CALAC, but not focused on on actually upgrading it at this stage.

36:25 So we'll be doing technical studies, particularly on the pipeline solution and and looking at the environmental requirements for that as well. But in terms of actually delivering upgrades to the infrastructure, that's that's not something we'll be focused on. That would come during the construction phase of the project. The fourth question is, will any of the funds be used for Vardar? If not, what is the company planning to do with this asset? So we continue to support low cost exploration at Vardar. Our holding costs for the for the for the subsidiary are extremely low, we are able to do mapping and surface sampling at at low cost.

37:12 So we will continue to do that. The intention is to find a partner to come in on either one or both of the license port the the the license packages in Kosovo, we would look for them to fund exploration going forward. But the the so minimal funds on the under the current budget, but we are looking at ways of of of actually bringing in additional funding to offset that. The next question is what is the implied dilution of from the capital raise? So we published the the dilution in the terms of the capital raise that was released on the April 4.

38:04 I would need to refresh my memory, but, essentially, the if fully subscribed the total dilution, and this is assuming that existing shareholders don't participate, is just over 50%. Obviously, if the raise is not fully subscribed, then the level of dilution will be lower. The next question is what is the projected CapEx and timeline for the pipeline at CALAC and associated pumps and infrastructure? So perhaps if I just initially flag what the infrastructure, the pipeline would entail.

38:51 So the the processing plant produces a fine grade concentrate. That concentrate in if we were using a trucking solution, the concentrate would pass through filter presses at the plant site, be dried to a moisture content of about 7% before being loaded onto trucks to be trucked to the rail. With the pipeline solution, essentially, what we are doing is moving the filter presses to the rail terminal. So we'll pump the slurry in the pipeline, and and then the filter presses will will dry the material, and the water will be returned from the railhead back to the mine site. The intention the the the so the infrastructure associated with the the pipeline solution is essentially only the pumps and the pipeline itself.

39:48 The the because the filter presses would be needed whether we whether they're at the railhead or at the mine site. In terms of the projected CapEx, we have run a number of studies to date. We don't have a firm number that we are making public at this stage. The indications are that the pipeline is value accretive to the project. So the savings that we make in the operating costs would more than offset the capital cost of the of the pipeline. However, we need to confirm those numbers in due course. In terms of timing, we are looking to do this additional technical work to get the pipeline solution up to a prefeasibility study stage and then make sure that we have covered off the the environmental elements of it as well.

40:41 We will be looking to do that over the coming months. And, again, it slightly depends how quickly we can progress with the amount of funding would determine how quickly we can progress with this. But, yeah, essentially, we will be looking to advance it to PFS stage, but it would be constructed as part of the full plant construction, and the CapEx would be incorporated in the full prefeasibility study assessment. The next question is how would the CALAC pipeline be funded? So, hopefully, I've addressed that. It would be part of the broader capital cost of the full plant.

41:26 It will increase the total capital cost, but our assessment to date is that it is value accretive and that it will be that because it reduces the operating cost. That, I think, is important to flag because, obviously, there is a a capital cost hit up front, but a lower operating cost gives you much greater flexibility in volatile commodity markets and when prices are lower. So we'd see it as a as a real benefit to have lower operating costs longer term. The next question is, the GAMP has been supported by funds from the Finnish government through the BAT Circle funding. Are there similar initiatives in Sweden that CALAC can benefit from?

42:14 So BAT Circle was focused on the circular economy and and battery technologies. And, obviously, that does not apply to iron ore and the CALAC project. Iron ore is also not a critical mineral under the Critical Raw Materials Act, and therefore, there are not the the same funding schemes available for it. That said, we have had a number of discussions around the pipeline solution and particularly the initial test where the prefeasibility work that we are looking to undertake on that pipeline. And it may be that we are able to receive some grant support because it is an innovative technology that can be applied to other mining operations in the Nordic region and and supports a greener mining solution. So there are potential funding schemes for specific elements, and we are certainly looking at options to to to to benefit from those. But it there is not the same funding as is available for for Graphic Tech.

43:31 The next question. Is BEOWULF expecting to receive endorsement or additional funding from the CRMA, the Critical Raw Materials Act, for either CALAC or Grafinetec? So I've partially answered this already. The the iron ore is not classed as a critical raw material, so we cannot benefit from the Critical Raw Materials Act for CALAC. However, the intention is that we will apply for strategic project status under the Critical Raw Materials Act app during the next application window, which we expect will open up relatively soon. We think that the GrapheneTech is very well placed to to to to receive project strategic project status, particularly now that we have completed our prefeasibility study. So we have a a clearly defined project.

44:25 So our intention is to to apply for the that status. And and there is certainly additional funding available for GrapheneTech because it is a battery technology business, and and there there is likely to be additional funding as a result of achieving critical strategic project status, sorry, if if we're successful in doing that. The next question is, is your longer term strategy develop develop CANAC and GAMP to production independently, or are you positioning for sale or JV joint venture? So the strategy is to develop both projects to a point where we can truly demonstrate their value, and we will look to fund them in a way that is most value accretive to existing shareholders as possible.

45:24 So that could be through an outright sale or joint venture, or indeed, it could be through taking the projects forward ourselves. And we're trying to be very open minded about all options. The market has been very challenging lately. And so raising money as we are seeing in this current raise is dilutive, and and and, obviously, that's something that we will look to avoid going forward. So we are hopeful that we can attract significant support from EU sources for the anode material plant. And I think, you know, there is the innovation funding.

46:12 There are also tax incentives that are available for green technology, green green transition technologies such as the anode material plant. So we will we we are certainly positioning ourselves to benefit from those. So that will reduce our capital requirement for for the gap. That said, we we're also talking to strategic partners on both CALAC and GAMP and, as I mentioned before, the exploration portfolio. So we we we will seek to fund and progress each project as value accretively as we possibly can. The next question is at what stage do you have you engaged with potential offtake partners or end users?

47:05 So with both CALAC and with GAMP, we have or we have a number of ongoing discussions with potential offtake off takers, both the iron ore, but also for the our our anode material. I think the key thing with the with GrapheneTech was achieving the prefeasibility study completion. We've demonstrated the technical and economic viability of that project, And and therefore, those discussions with potential off takers or or strategic partners have significantly accelerated following the completion of of of the pre feasibility study.

47:51 With CALAC, I would expect a similar sort of process and that when we have done the completed the prefeasibility study, we will be in a much better position to have further discussions with potential off takers and strategic partners. And that's so that is something that we will be focusing on putting positioning ourselves so that when we've completed the prefeas, we'll be in a in a position to have those discussions. The next question is, you mentioned the potential generated by green steel production, but the iron ore market is still suppressed with demand expected to stay relatively weak. What is your longer term view for the market and CALAX placed within it? So I I touched on this during the presentation.

48:40 We we see that the market is likely to to to split somewhat, and the high grade iron ore will there'll be more greater demand for higher grade iron ore than there will for standard and lower grade material. The and and and the the the that split in the market is being driven by decarbonization of the steel industry. The steel industry is forecast to continue to grow through to 2050. We're seeing significant growth coming out of Southeast Asia, not specifically China, but India and Vietnam. Also with the development of the African continent, there will be further demand from from there.

49:31 So steel is gonna grow. Iron is the is the major feedstock for the steel industry, and therefore, the iron market as a whole is gonna grow. And the the the split between electric arc furnace material and blast furnace material, I think, is gonna is gonna become more apparent, and and therefore, CALAC will benefit from that. So we're we're positive on the outlook for iron ore longer term and particularly positive for high grade material. The next question. You mentioned the importance of graphite in batteries, but we hear more about lithium. Why do you think this is? How important is graphite in the battery industry? So, actually, this is a very good question, something that I totally agree with.

50:19 Lithium and indeed the cathode materials in the battery typically have received greater interest and focus in over recent years. I think the the primary reason for that is they tend to be higher value materials. So while graphite is the the largest constituent of lithium ion batteries, it isn't the the the highest cost element. And, therefore, I think that's the the primary reason it's received less interest. The I I genuinely think it will begin to and it is beginning to receive more interest, and that could really be become more significant depending on how the ongoing political tensions go with between China and The US.

51:09 China has a control of the graphite market. Into 2023, they announced restrictions on the exports of graphite and graphite materials, and they could certainly tighten those restrictions. They control and I'll flick to the relevant. They control pretty much a 100% of certain elements of the graphite processing market. And and therefore, there are not batteries globally that have not passed through China in some shape or form. So if they wanted to essentially switch off supply of graphite, then at the in the current at the current time, they could.

51:59 And I think this highlights the importance of developing an independent secure supply chain that is has no reliance on China. And I think the that will help to drive the the the sort of the relevance and the investor appeal in graphite going forward. The next question is, does the new political landscape in Sweden and Finland and the geopolitical situation change the outlook for CALAG and GAMP respectively? So both Finland and Sweden recently joined NATO. I think the issues with Ukraine have have highlighted the importance of of NATO and and certainly defense.

52:48 Graphite has significant applications in the defense industry. So that's, I I guess, another factor to the previous question. The importance of domestic supply chains is also widely talked about across Europe, and I think that improves the outlook for both CALAC and for GAP. The political will within Sweden to develop its mining industry is very very strong and very they make that very public. Clearly, there is local resistance to certain mines, and and and I think, you know, it it is critical that we take that very seriously, and we build local support for our projects. So it's something that we have really changed in the last eighteen months, the approach to to dealing with local stakeholders.

53:45 So we we we certainly will continue to do that, but the broader political backdrop, I think, certainly helps case for both projects. The next question is how does BEOWULF assess the risks related to the environmental permit process in Sweden, and how might it impact the project timeline? Kawak is a large and complex project, and the most challenging aspect of Kawak is probably the environmental permit. It's probably the the the the the biggest risk for the for the development of the mine. And we are extremely focused on ensuring that we submit a very robust permit application.

54:39 And we've we've been working extremely hard with local stakeholders to both educate them about our plans, but also to receive feedback and and support and, indeed, ideas from them. The pipeline solution is an example of development of an idea that based partly from feedback from local stakeholders. So the transport solution was something that they were extremely worried about or concerned about. Had we gone with a trucking solution to the railhead, the 40 kilometers from co act to the rail, that would require a 90 ton truck to pass in both directions every six minutes, twenty hours a day.

55:26 So for people living along the road, for the reindeer herders, for other local stakeholders, that's a significant impact. The the benefit of the pipeline is it would be buried. It would be unseen, unheard. So after its installation, it would have almost no social and environmental impact. And so we we see that as a a major improvement for all all local stakeholders and for the ability for us to permit the project. It does add a little to the timeline, but we we we we see this as, you know, an important step. And I think this highlights the fact that the the importance we place on getting the environmental permit application right. The current timeline that we're assuming is that it'll take a two year period to for the permit to be reviewed.

56:17 That's based on the recent success of the Viscaria mine, copper mine to the north of of of us in next to Kiruna. So we we're on a two year timeline. We're gonna complete the application subject to funding as quickly as we can. But importantly, want it to be extremely robust so that we address all key concerns and potential impacts. The next question. Given political uncertainty between America and China, do you see the business case for graphite being stronger? So I believe I've addressed this question already. China has its device like grip on the graphite market.

57:04 The US obviously requires significant graphite primarily for defense, but also for any electric vehicle or or lithium ion battery application. So the the the the case for graphite is ever stronger, and the the case for all critical raw materials has really been brought into the into the limelight through the current trade war that is ongoing between America and China. So I certainly see this as a a a as something that will strengthen the the the case for graphite. And then I think I have one final question, and that is why 2,900,000 for Sweden and 700,000 for UK?

58:01 So I think this is the proportion of the capital raise. And the question then goes on, does this just reflect the relative market caps on AIM and Spotlight? So that is absolutely correct. So the the the capital raise comprises three components. So first of all, there was the placing. And the placing, we we secured support from board and management of about £250,000 and about £750,000 from new financial institutions. The the balance of the capital raise is essentially split 80% Sweden or spotlight market through the rights issue and 20% through The UK retail offer, and that reflects the the the the current 20% shareholding in on the AIM market versus 80% through the Swedish depository receipts on the Spotlight market. So that is that is the reason for that split. However, if one of the financings is undersubscribed and the other is oversubscribed, we have flexibility to to to issue more shares through one or other of the mechanisms.

59:29 So I think that is the final question. So with that, I'll hand back to Paul. That's fantastic, Ed. Look. Thanks very much indeed for covering off all those questions. Of course, any further questions that do come through Ed and the team will be have the ability to review those and move published responses where appropriate to do so on the Investor Meet company platform. Before redirecting investors to provide you with the feedback, I know it's particularly important to you, Ed. May I just ask you just for a few closing comments, please? Yes. Certainly. So first of all, thank you everybody for attending, and thank you for a really excellent set of questions. I hope that I've addressed them adequately. We we BEOWULF is at a critical juncture now. We've completed the prefeas for GAMP.

1:00:15 We're well advanced for CALAC. And with support through this fundraise, we'll be able to accelerate the the the completion of the CALAC prefeasibility study environmental permit application. And both will really derisk that project and demonstrate its true underlying value. So the the the next six to twelve months will be very critical for the company, and and I I'm very hopeful it'll be very positive both from technical and permitting development, but also in terms of share price appreciation. And, obviously, that's something that we're very focused on, and and we'll hope that the the the geopolitical backdrop will be supportive, and we can enjoy a a a positive year. So thank you for attending, and I do hope that you'll support the the ongoing capital raise.

1:01:09 Many thanks. Ed, thank you very much indeed for updating investors today. Now please ask investors not to close this session to be automatically redirected to provide your feedback in order the management can better understand your views and expectations. This will only take a few moments to complete and is greatly valued by the company. On behalf of the management team, BEOWULF MINING PLC, we'd like to thank you for attending today's presentation. That concludes today's session. Good morning to you all.