Kazera Global (LSE:KZG) — Investor Presentation

0:01 Good afternoon, and welcome to the KZERA GLOBAL PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just simply type in your questions and press send. Before we begin, I would like to submit the following poll, and I would now like to hand you over to nonexecutive director Paul Duluth. Good afternoon to you. Thanks, Alex. Really appreciate it, and good good afternoon, everyone, and thanks for joining us. As Alex says, I'm Paul

0:32 Duluth, nonexec director of KAZERA, and I'm joined by Richard Jennings, interim CEO and the company's largest shareholder. The purpose of today's presentation is very straightforward. It's to give you a clear sense of where KAZERA stands today, what's changed over the last few months, the progress made, and most importantly, where we go from here. Since the board changes that began over the Easter weekend, we've moved really quickly. We've taken a hard look at the business and made some difficult decisions. We've simplified things where appropriate, sharpened priorities, and throughout, we've had a focus on execution and value creation, and that's something that's gonna continue. I'll skip through the disclaimer. I'm sure you will read that at your leisure. Before we're getting into the detail, it's just worth reminding ourselves and anybody joining us that's new to KAZERA what KAZERA is.

1:24 Fundamentally, we're an aim quoted investment company. We're not a mining operator. Today, our principal investments, is wellhead minerals in the Northern Cape of South Africa. And in Wellhead, we see a clear pathway towards creating a scalable heavy mineral sands business, as well as alongside it, Deep Blue Minerals, a diamond mining operation. And alongside those, we've also got ATTAN in Namibia, which we continue to view as a significant critical minerals opportunity. Our role as an investment company is clear. It's to acquire, improve, and then monetize these assets, not to operate them. And we've had these assets quite some time. There's been some improvement, but not enough, and we're focused now on improving them and monetizing them.

2:14 This slide really provides the key context for everything that follows today. What's taken place over the last two months wasn't simply a board change. It's been a business reset. We began with a detailed operational and technical review of the South African operations. We then took some difficult but necessary decisions around focus and capital allocation. We simplified parts of the business, and we've concentrated resources where we believe value can be created most quickly. Importantly, we've already moved beyond the planning into delivery. We've had validated product quality at wellhead minerals. We've secured a potential transformational partner in Remy to accelerate the scale, and quality of the heavy mineral sands we're producing.

3:06 We're progressing the two a mining rate. We've completed a strategic review of Aftan, and we've strengthened the business through really strong financial discipline and management. There does remain a great deal to do, but I think it's fair to say that we've moved a considerable distance from the uncertainty that greeted us, you know, early April, and now we're firmly focused on execution.

3:34 Just a quick look at the the board and leadership team, vastly different to how it was a couple of months ago. Much of that progress reflects the increased capability, experience, and capacity of the board. This board brings together expertise across public markets, technical mining, operational turnaround, and corporate execution. Richard, who's on the call today as interim CEO, brings extensive experience in public markets and, as the company's shareholder, has significant amount of skin in the game. Jeff Eyre, our chairman, has a huge amount of operational turnaround experience. Johan Truter has decades of deep geological and heavy mineral sands experience. He's also a competent person for AIM, mining rules.

4:20 And my own role is centered on operational delivery, stakeholder engagement, and supporting the company's strategic in in objectives. Most importantly, this board is focused on delivery. We're working incredibly hard many days from seven in the morning to eleven at night, weekends and so on because there's a job to be done, and we're making great progress. There's still a lot to do, but we'll get there.

4:44 With that, I'm gonna hand over to Richard, who'll take you through, initially, Wowhead Minerals in more detail, where we believe the most immediate operational and value inflection points lie. Richard, over to you. Thank you very much, Paul. And thank thank you everyone who has dialed in today, to listen to what we've got to say with regards to how we're hoping to move after many years, finally, our asset forward, within KZERA. So starting initially with wellhead minerals, which we believe is our flagship asset in South Africa and where, really, my focus has been over the last two months, including going down to South Africa and meeting with the key counterparts down there from the mine manager and, of course, the Remy principles who have joined with us to hopefully try and extract the value that we believe that we have in the ground there up at Alexander Bay and and move this project forward.

5:55 Now just starting with the technical validation point, I think it's important to really relay what the issue has been at site. It's never been about the resource. The resource is clear for the naked eye to see. The sounds are there. It's it's simply about execution on the ground and processing of the sounds into, quite simply, a saleable product. But given that Alexander Bay is literally thick end of 800 knot kilometers from Cape Town and a material distance from the next major part, Luderitz, in Namibia.

6:41 The primary cost with regards to making the project profitable is getting over the hurdle of the large transport cost. And the way we do that or the way we realize how we we we address that element is to get the grade, the t I o two grade, up to a level that really opens up the offtake marketplace to us such that the product actually is worthwhile ultimately processing and and then selling for a fair margin. What we can say is that with the capital that was raised last November through into early December, there has been incremental equipment spend at site in South Africa.

7:30 And we've installed new spirals, etcetera. And you can see both well, principally on our Twitter page, progress at site with regards to the deployment of that equipment. The arrangement, pseudo JV purely at the level, which is the, five hectare license area that we have, with Remy, that has progressed us meaningfully. And we are very confident that literally within days now, we will be at a minimum of 41% t I o two grade. And our target, excuse me, is around 46, 47%, which on an FLT basis, which is essentially free of transport at the gates will should, based upon the deep dive that we've done with with regards to our, on the ground, all in, mining costs. And as Paul, relayed, in the prior slides, we've we've taken a very, very sharp knife to what has been historically spent on on various aspects that we deem to be expendable and superfluous down in South Africa. But at at 46% t I o two grade, then we believe

9:01 that we can generate in sync with Remy quite a decent margin that finally, after the number of false starts, puts us into, within the very near term, a self sustaining cash position, cash flow position, and, hopefully, on a pro form a, six month basis, actually, show the marketplace that we can generate profits, from the mine. Now with regards to, Remi, per the RMS that we released, last week, there's been absolutely zero from cost, to to KZERA shareholders, to ourselves.

9:47 Basically, those, those guys the slides just popped, and I'll go, back there. Those guys have have put thus far the thick end of around about a million sterling of equipment on-site. And, again, our Twitter page bears out the the the visual illustration of of what has been achieved over the last two months, really, getting us to a point where we can process a minimum 41% and hopefully, as I say, towards the 46, 47% very soon, t I o two grade of product that we can sell, for a reasonable margin.

10:34 Now just moving on to

10:37 slide, seven. I think I've covered there why, this partnership with Revvy is important. KZERA historically has just been a cash consumption vehicle as, the the more longer standing shareholders will be acutely aware, and of which, of course, me the most still, holding after, seven years from when I originally vended these South African assets in at the thick end of 25% of the physical stock. So I bearing in mind that we raised money only last November, December, took the decision that, really, what we were missing at at on on the ground was supplement to the expertise to to fill in the gaps with existing technical capability there with our staff personnel, but also a party that was prepared to put incremental skin, in the game. And all albeit a million sterling is not, the largest sum in the world. It's not an insignificant sum, certainly in that part of the world.

11:46 And the fact that Remy have been prepared to put that magnitude of capital into the mine as well as effectively on two principles parts relocate themselves to the Alexander Bay Port and Olatham area shows very seriously beg your pardon. Just shows how serious those guys are with regards to linking arm arms with us and and and making this project work. So the the absence of a look from capital cost to ourselves, then, of course, that has avoided us once again reverting to shareholders, asking for yet more capital, to be injected into South Africa.

12:36 So we have, as it stands today, a partnership where it's a fifty fifty basis, purely in relation to the value scope area, with regards to, costs and, 50%, obviously, receipts on, revenues. And, we are thus far, very optimistic that this particular arrangement will prove to be a serious inflection point for as a as a company and and our shareholders. Just quickly pointing out the the technical foundation points that the the last paragraph there, that commissioning is well underway and the the ramp up towards what is a really a a minimum volume of HMS that we need to get to to make this project meaningfully profitable, which is around about 10,000 tons per month.

13:36 In the that we released just over a week ago. We would hope to be there at some point towards the tail end of the third quarter of this year. Now on on to slide eight. I've seen a number of the pre submitted questions. We're all aware that the company, quite frankly, it's not singularly about 2a, but the sheer scale of the opportunity is is clear to all, including numerous parties that constantly knock on our door.

14:16 And we do need to hopefully, finally conclude the license grant that has been in process for the thick end of nearly nineteen, twenty months now. Question as to why two a matters, it's a 30 kilometer stretch of beach. Valviscope at present is 3,100,000 tons of heavy mineral sands. 2 A runs to 265,000,000 tons at a minimus de minimis level. In fact, we think there's meaningfully more than that. So you're talking nearly a 100 times the the scale of what we presently have. So it is from a Southern African HMS mining prospect.

15:07 It's, without a doubt, one of the most important ones or could be one of the most important operations certainly within South Africa. And as I relayed, you know, we we have numerous people constantly knocking on the door asking where are we with regards to the license and how can they, get involved. Fingers crossed, we we have done pretty much everything that we believe, is necessary in order to obtain, the for the final grant. We we we've worked closely with one of the directors of Wellhead Minerals who is on the ground down in South Africa, and he has previously been involved with the DMRE, in an employed capacity.

16:01 And, he has been tasked with really finding out what was the bottlenecks what were the bottlenecks rather, what is necessary, to push this over the line. So as we sit today, we believe that we've done everything that is necessary, with in order to get the license over the line. And we sit with our hands pressed together that it literally, we are running into on a percentage basis, the last 3% of of this, what has been a quite a a long marathon in in obtaining this. The the the the slide there, people can read at at leisure. But if you if you we work on the basis that Valvius got in its own right can be a a meaningfully profitable venture then.

16:50 As I say, when you've got the thick end of a 100 times the resource availability, at your fingertips, then it's it's pretty clear, the size of the price at hand, quite frankly there. I'll hand the presentation back to Paul, who has been tasked really with trying to finally, put us in a position where after the aborted sale, on on the part of in 2023 that we can once again attempt to monetize after. Thanks, Richard. So, yeah, as Richard says, the the aborted sale, which we did receive partial payment for, but when it fell apart, went to arbitration, we won the, binding arbitration ruling.

17:41 And we obviously retained the 100 percent of the shares in AFTON, as security, which we obviously still have. I think what became apparent to us when we when we stepped in at the beginning of April is that, the sort of sale of Aftan was mooted, but there was much sort of focus, if you like, on the ongoing legal aspect. Just to clarify, the the, the appeal by Heavy, which is sits in the supreme court in Namibia at the moment is due to be, opined on, towards the end of this month isn't about the arbitration ruling itself. The arbitration ruling is is is binding.

18:26 It's purely about the process of the arbitration. And as we said in the r and s, a few weeks ago, you know, we're we're very confident in the legal position we're in. But notwithstanding all that, we felt it was important to sit down and and actually run a ruler over the Aftan project. Nothing has been really done with that since probably 2022. And so we we we went back to basics. We we we we dug out all the previous mineral resource estimates and various technical reports on it. And we spent a lot of time putting together an information memorandum on the basis that, you know, this is an asset that we do wanna sell. We do think it's got considerable commercial value. You know, the growth in critical minerals, lithium and tantalum being two of them globally, but also Namibia, looking to position itself as a a critical minerals tab, including engagement it's had with Europe and so forth. So it suggests the the value of the of the project is is is is is not being fully recognized.

19:30 So we we we went back to basics, and we went through everything again. We also, commissioned some additional technical work where, experts did some, testing on the on the mineral, on mineral samples from from the site. And they identified the fact that the the the minerals, the the the the tantalum and lithium lithium, don't need a sort of traditional wet separation process, which is often used elsewhere in the world. They are they are well positioned for magnetic and electrostatic separation. And this is important in Namibia where water is a hugely rare resource and and and where access to water is problematic for the previous previous per people operating in that in in in that operating the the Atom project and other projects in the area.

20:26 So, actually, identifying that and also the fact that of the three pegmatites that are in the the mining riot, only three of them are actually being drilled and explored. And so there's there's about another 10, about another 70% of the pegmatites there. We've had no exploration as such. And it's it suggests to us that, actually, this is a significant opportunity, and, you know, it's underexplored, and it's got potential for actually being a district's district scale project. So what we've done is we've we've we've taken all that learning, all that work we've done, all that additional technical work that's been undertaken. We pulled together an information memorandum, which runs to about 80 odd pages. And it explains in detail what the project's about, history, the what the resource is there, and then also the kind of potential routes to to to monetize it. And we're working with a a a we've engaged with a a a third party sort of specialist house that is looking at opportunities to, bring in third parties now either to come in and operate it or, some sort of, potential sale or, or any you know, the the the all options are open. But, really, to to to to looking at ways that we can actually monetize this because it's been it's been languishing on the, in in on the back burner for so long now.

21:56 You know, the timing is right. The the lithium and tantalum prices are, you know, great I mean, tantalum is something I think it's a a decade decade higher price. And so that, you know, there's got to be money there. And so we're working hard to monetize that and actually do what we said on one of the the earliest slide, which is is, you know, we we obtained the the the project, we've advanced it, and we're looking to monetize it. So a lot of work going on that. And we're in good discussions with people, and, you know, we hope to get some sort of resolution in the not too distant future. Anything to add, Richard?

22:34 Not really. I've I've just looking at one or two of the presubmitted questions with regards to the the court status or the arbitration status. I I think it's important to reiterate that what have I, Jingjang, put in play with regards to the arbitration ruling does not allow them that there's some misconceptions out there, but it it does not allow for an appeal in relation to the decision. It's purely and simply adhering into a review of the arbitration process. Thankfully, in the original sale agreement, the clause in relation to arbitration was that if ultimately went there, which it did, the decision on the part of the arbitrator is final and binding.

23:26 So just really, getting ahead of one or two of the questions that I can see in that regard is just to reiterate that point there that the hearing that is, coming up towards the end of June doesn't relate to it remotely being able to overturn being able to overturn the decision. It it purely relates to a review into, the arbitration process. Now on to Deep Blue Minerals, because there's a number of questions which I'll probably be able to address, through this slide. What I would like to say right off the bat is that the diamond side remains important to us.

24:15 It is now, thankfully, and and quite uniquely, really, it's actually, the the diamond, mining stroke production process is, derived as a consequence of actually mining the HMS, on the shoreline at the beach. But there has probably been some historical representations with regards to the likely value in terms of profitability and cash flow that the diamonds could produce to KZERA that I do not believe, a, vernacular, and and, b, investors going forward should hang their hat or their cash, quite frankly, on that premise.

25:08 KZERA, as it stands today, is principally from a, an investment opportunity and certainly in my eyes, a, being the largest shareholder and b, actually being under the hood now and within the tent, it is front and center about the HMS opportunity. Deep Blue Minerals, as I say, remains an important part of our operations down in South Africa. It it works not necessarily hand in glove, but in complement to, as I say, the HMS mining process. And what we've done specifically there is we've we've as a consequence of the acutely in recent months, of course, the, US Iranian war and what's happened to the price of, oil, albeit coming back to a degree in recent weeks, is that the cost of diesel down there in South Africa really began to bite into us.

26:07 And in fact, there were diesel shortages in that part of the world as well. So of the first decisions we made as a board was really to completely, assassinate the inland diamond mining, the the sheer magnitude of diesel that we were, expending, going through what's called the overburden. Just to a blind man, it was apparent that it was uneconomic, and all we were doing were literally burning money. So we've moved, the focus 100% to, inland diamond mining. As I say, it it essentially, once, the the sounds go through the trouble screen, you wind up with, effectively diamond gravels that are further processed by Alexcor.

26:59 So the diamond mining in inverted commas now is a byproduct of, really, the HMS mining process. That leads down to the strategic focus point at the bottom. And and as I say, we we we we felt that there was not just not a justifiable amount of on the ground, management, focus on the diamond side, but it should have really been, given the pro form a profitability profile that we believe is there on HMS. It should have been quite simply, applied to the wellhead mineral side.

27:44 So on the on Deep Blue Minerals, it remains an important, part of the business. We are not, abandoning it, far from it. But as the slides, state simply there, we are now ensuring and and coming back to what we said right at the beginning of the presentation. We we we look closely to ensure that every single solid to be sent that we spend down in South Africa, we hope to achieve a return on that, and it is, not quite simply squandered and, wasted as has been clearly the case over, preceding years. The financial discipline and alignment, the RNS in early April, quite aptly over Easter weekend, set out what we've done at the PLC level, and that is that all the board members are on deferred salaries.

28:45 Stopping short of saying what they are, what I can relay is that they are not excessive far from it. So there's been a deferral of salaries until the August 31. We are focused on preserving existing working capital, and I certainly am, given that I'm at present funding the company through the loan facility that I put in place.

29:13 What I can say in a in a positive light is that the requirement for me to fund over and above the initial committed amount has in fact not actually been drawn down in full. And that gives you an idea of just how

29:34 disciplined and and focused we've been on all avenues, really, in all levels within the business to ensure that money is just simply not running out of the door and stop short of seeing saying being wasted. But as as I said with regards to the South African operations, with a spend of a penny over here, let alone a pound, must be necessary and, hopefully, result in a return to me as a primary shareholder and by extension, every other shareholder on the register. What what my loan facility, did was it it avoided a a necessity for us to carry out a placing.

30:20 I have, no appetite at this market cap, bearing in mind, the catalyst that hopefully are are on the horizon with regards to two a, cash flow positive cash flow positivity on the ground, at Valvius COP, and, hopefully, finally, a resolution with regards to, the the long running Afghan saga. So to carry out a a placing at at this level, to me, was a nonstarter, and and that obviously illustrated through the loan facility. But in sync with that, you you'll see from the RNS that I'm not in it for the salary.

31:06 I'm on a nominal salary. I think it's 5,000 sterling per annum. And it's quite a unique position, really, or a a unique situation, which is really, playing out, not being that I'm aware of any other CEO on, AIM that is, in there for, frankly, a nonexistent salary, didn't go for incremental options when we awarded the, options to the balance of the board members and, in country South African, key personnel. I didn't take another single solitary, share option there. My focus is is singular, and that is getting value after all these years out of the 25% stake that I hold, within the business.

31:52 And, the way I believe that that is most appropriate to do that over and above, supplying that, immediate loan facilitation is to is on the capital, discipline slide, and and that is to be aware that, number one, as Paul said at the beginning, what people forget is that actually isn't its mandate isn't to operate a mine or mines. Its mandate is as an investment company to align to put investment opportunities, try and add value, and move them on. We we should never have been in the position, quite frankly, of getting involved in day to day, miner shy of mining, certainly within South Africa. And and that and the Remi partnership feeds to the way that I see, hopefully, post the two way license award going, and that is that we we we we will not be involved in the day to day operation.

32:51 We want to, explore opportunities where we can perhaps receive, royalties with regards to, moving our assets at the value curve and getting them to the point of production. Or if the opportunity presents itself for for an outright sale. And and if if we can pull off, as I say, a conclusion of the Afton situation, then the, pro form a balance sheet of KZERA will be, in a very different place than it has been for for many years.

33:30 Near term catalysts, well, we've spoken about the Remi commissioning. We've we've we're very optimistic. They're they're very focused. They've got their arms completely, linked with ourselves, and, we think we're in the, best position over the last two and a half, three years there that we have been with regards to actually making, valve scope work. We've spoken about the all important, t I o two, grade to get up to circa 46%. In fact, with a magnetic separator, which is part and parcel of the deal that we've done with Remy, you can get involved in the more higher value HMS constituents of zircon and rutile.

34:18 There is an element of monazite there, but it's I understand it's not material. But zircon and rutile could they're they're much higher value over in the and garnet. And they could be, with the number of magnetic separators at sites, a really incremental, profit driver for us. The two way mining rights, we've spoken extensively about our palms. I remain pressed that we are, as I say, right at the very last knockings of this process. AFTON, we've spoken about, with regards to finally

35:01 putting ourselves in a position where, as I say, we can extricate ourselves from from the project. Not that we believe that it's a a project that necessarily requires extrication from, but as I say, we realize we are not on the ground miners. It's not in our mandate. In order to get involved in that game, you have to be, materially resourced. And, once again, as a largest shareholder, I would sooner crystallize what I believe is fair value, for the project. However, that transpires, whether it's a wholesale sale or, let's say, a a royalty structure, is yet to, unfold. But, Aftan, hopefully, in the near term, there's further news in that regard as well.

35:50 And we've spoken about, the capital discipline that, remains front and center, completely, day to day focus, not just for myself, but for the balance of the board. The KZERA model henceforth, which has really been, as I say, over the last five or six years, a never ending cycle of capital raises, spend on the ground, and hope for the best. That is over. That is not the game going forward. We've got enough of those T shirts and the share price and and the absence of ever really being able to sustain a forward momentum bears out. That that approach has not worked.

36:40 So we're we're gonna go back to our mandate and basics, monetize what we have at present for the most appropriate and and and fair prices that we we believe we can achieve. My intent is that we will if we can realize value out of AFTAN and or post the two way license award, Wellhead Minerals, it's to actually distribute those proceeds to shareholders. Again, holding 25%, I've got a very serious interest in finally receiving, due rewards for all the capital that has been put into the company.

37:25 And the last tick at the bottom, right, really feeds through to how I see, henceforth, and that is a yield orientated investment proposition, which is a a complete rarity from what I can see, on AIM with regards to small cap companies and certainly, investment companies. Very few of them actually are successfully monetizing those investments. And in a lot of instances, the capital disappears, into management's pocket. Well, that is not going to occur at KZERA. And so the intent, as I say, is to monetize what we have for the most appropriate prices that we can achieve and distribute that capital either as a special dividend, for example, or ongoing payments and generate a yield return for shareholders.

38:25 Why now? The reset, we're now into the third month. We've got a very focused and collegiate team. Doctor Hatching on the ground is technical expertise that had been missing for quite a long time. Getting him in into the tent and under the hood. He's paying serious dividends, already. As I say, the the board is incentivized through, the, option package that was put in place. It was a a a reasonably extensive option package, but it it it the important initial target is that the shares need to get to 2p and, be sustained there, for a reasonable period of time before they vest. And then we've we've put in place, incremental share vests, to the key parties, as I said, which I didn't participate, at the 2.5 and 3p level. So we're all rowing the same way.

39:28 It it's a good team. I'm very lucky actually with both, well, with with Paul, in particular, supporting me, on the Namibian side because it is a a big role. Good chairman in Jeff and doctor Harting, as I say, on the ground, oversight in South Africa. The drivers we've we've covered, cash flow, imminently, hopefully, Vaviscop, to a grant of license finally, potential after an exit, and to a lesser degree, as I say, the the the diamond side providing hopefully some profit credits, for want of a better word, to to operations down there.

40:14 The milestones that we've put in place over the next six, twelve months, it's the with respect to valviscop, it's getting up to 10,000 tonnes per month before the end of the third quarter. And that gives us a a decently profitable business in its own right there before 2A. And as I say, we have expertise, down on the ground now with Remy who have booked, a reasonable amount of their own capital, into the ground there. And I believe that we are in the best position to say that we have been over the last eighteen months to two and a half years with regards to finally making it work on the ground in South Africa.

41:03 So I think it's time for questions. Is is that correct now? That's great. Yes, Richard, Paul. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the q and a tab situated on the top right corner of your screen. While the company take a few moments to view those questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed via our investor dashboard. And Richard, Paul, at this point, if I may just hand back to you to take us through the q and a session, and I'll pick up from you both at the end. Thank you. Sure. Thank you for that. Right. The first question, we have not any we have not had any communications with regards to diamond sales for a while now. Are you able to provide an update? In terms of pure sales, I mean, I think I've covered where the diamonds now sit within the business extensively in the presentation.

42:01 Pure sales, the diamonds, you can see from historic accounts that KZERA has produced have been de minimis. We are producing diamonds at present in terms of outright sales figures. Dennis Edmunds, my predecessor, touched upon this before. It wasn't actually an untruth that he would hate there, but we are unable to actually say due to the arrangement that we have with Alexcor the actuality of the sales until such time that they're released, of course, in the annual report and account is which is a necessity of the PLC audit process. So it's unfortunately, I can't say in on his call precisely what the magnitude of diamond cells are at present. But what I will reiterate is that I deem them to be a tertiary revenue generator to the company.

43:02 Are you able to give a timeline on when the two a license will be awarded? I wish I could. I will only reiterate what I had said previously in the presentation, and that is that we have done everything that we believe is necessary. We have positive comments and signals coming out of the consultants and the key parties in South Africa in relation to the likely time scale of the final award. And my, palms remain pressed as well as the pods that that is, much sooner rather than later as it's long overdue. Do you have any idea of time scale when the arbitration of the will conclude?

43:51 The tactic of trying to slow down the process in which KZERA gets paid while his own is dragging on. Yes. It's the end of this month when, basically, the, review hearing into the arbitration process is, due to be heard. It has, in my opinion, unnecessarily, dragged on. And, as I also said and Paul will add in the presentation, we are, acutely focused now on, bringing that, situation to a long running resolution. We have heard the last couple of months now that the two a license is imminent. I feel this has dragged the share price down unnecessarily, and it would be advantageous to have a realistic time scale put on this so we don't get those coming in, selling up again soon after when the news does not materialize well.

44:48 Again, I think that that question's been answered really there. Will you pursue the money owed by her by fully and unconditionally? Yes. We are. Well, to to be clear, the easiest route for us to monetize, Afton is actually to sell the asset onto, a third party, who basically sees value bearing in mind where tantalum and lithium prices are at present. Tantalum in particular, as Paul alluded to, who see value potentially in excess of the outstanding amount that is owed by Hebai.

45:37 So mishmash of an answer, do we think that we will achieve what is largely owed to us? Yes. Is that likely to be from the dual ease out? Is the CPR required of us? And that's an important point, actually, by the d m r DMRE as a precondition of granting to a. The answer there is no. But the CPR is actually, in my opinion, very important. We hope to conclude that as we said in the RNS at the, end of June. And I think the best way to view that is that it sends a signal to, the DMRE, really. It's not a, as I say, it's not a precondition of the license application, but it sends a signal to them with regards to the scale of the opportunity in our seriousness in exploiting that.

46:38 And it could also act as a effective billboard to global parties who would have an eye on this project with regards to getting involved. I think that's the best way to view the the CPR production. What is the minimum TI titanium oxide grade concentrate percentage necessary for achieving a sale? Well, you can sell TiO two at 25% or 30%, actually. But once you take out the cost of mining and the that'll be much like the PLC cost, it's actually not a worthwhile exercise. And I'm sure we've all got better endeavors that we can indulge in to spend money rather than that. So but to make it worthwhile as as we put in the RNS, really needs to be a minimum of 41%.

47:37 Our target is 46, 47% when there's very healthy margin for us there. Will the two way license ever materialize? Been through that and answered that. Given that the two way license was expected mid twenty five, have you or perhaps should you not be able to inquire as to when we should expect to receive the license grant? Yeah. We've been through that as well. How does KZERA's relationship with Alexcor and diamond mining on 2A affect the granting of the 2A license? It's actually the DMRE that grant the license, not Alexcor.

48:24 We have the the the the concession to operate on Alexcor's land, and and that is the diamond mining side. But the actual license to mine HMS comes from the DMRE. So I don't believe that, there's any necessity that I am aware of over and above. Obviously, engagement with Alexcor is necessary, largely around the Diamond operation side. Can you leave us with a road map for the next steps in the KZERA long running journey? I think that that's probably going back to near term catalyst.

49:13 Slide number 12 answers that Afton resolution, sooner rather than later, CPR production, profitability, finally on the ground in South Africa, two a license value being granted and, a deal, the other side of the two a license grant with regards to, obtaining the the the most value that we can out of share shareholders out of that massive opportunity, without, decimating myself and other shareholders from a capital, commitment perspective. Richard, I think that the answer to that also leads into the next one, which is really sort of the focus of KZERA going forward as well, you know, as an investment company. These are near term catalysts of the the current assets. But, certainly, you know, the road map going forward is to be much more like an investment company and and, rather than getting dragged into the minutiae of operating, as you said.

50:20 Correct. Correct. 100%. There's a replication there of the Hibai question. Can you collect the amount that the Chinese owe? We've been through that. Approximately, what profit will 10,000 tons of HMS at circa 40% concentrated? I guess it means, t I o two, grade there generate. We haven't put any official forecasts out. There's been some historic notes. Of course, I was involved in the production of those historic notes. I don't believe this is the forum where I am actually able to say, what we expect that that that magnitude that that volume of HMS to produce. But what I will say is if we can get to a minimum of 41%, and I think we're almost there, and we get to 10,000 tons per month, then the company will hopefully be well, not hopefully.

51:20 The company should the company should be in a position where we, may actually be able to pay something back to shareholders on on an ongoing basis. That's probably the best way to to answer that one. It's a nice point there, not a question. Thank you for everything that you are doing. Well, I appreciate that. As I say, I'm doing it, really, I guess, for two, reasons. Number first and foremost, of course, is as a largest shareholder to try and get a a extract some value out of the support that I've given the company over the last six, seven years. And two, because I quite frankly believe in the assets and, albeit I believe that they need to be moved on to much more capable and materially resourced players. I I believe in them.

52:14 I originally vended these in in 2020, and, quite frankly, wasn't prepared to, allow, the situation that has rolled on for a number of years now to continue any further, but I appreciate that. Thank you. Will there be a fundraising to fund two a, or will you look to sell asset once proof of concept achieved? Well, couple of reasons, I can't answer that. Otherwise, I would be reaching the, but I would go back to what I said at the beginning to or towards the beginning, and that is that at this share price, henceforth, the supply of long capital by myself, I have zero interest in raising equity here. And if you look at what we've done now with, Valvinskop finally, it's probably a fair assumption that that is the the model that we will look to adopt, going forward with regards to development of, two a.

53:21 Surely some sort of a tie with Arcadia makes sense. No. I don't believe so. To what extent are you looking at any other new projects? Are you purely focused on existing opportunities that you now have full sight on? A 100%, the latter part of that question. We've got our hands full with this. I'm not like a lot of other, AIM mining small cap companies and, in albeit there's not a massive amount of investment companies, but they they they apply a scattergun approach to early stage, resource opportunities, and it's just, turns into a dilute fest, for existing shareholders.

54:06 Got many of those T shirts. Will not be wearing those again. Where do you hope KZERA to be in twelve months? Well padded balance sheet and in a position to, AFTAM to have, in in some shape or form to have been sold. The South African operations generating cash to a license in hand and a a well padded balance sheet that gives us flexibility with regards to distributions and or looking at new opportunities, bearing in mind our investment company mandates. If HEBI were prepared to pay all outstanding monies, is KZERA legally obliged to sell Afton to them? Yes.

55:05 Will we continue optimization beyond the near term 46% target to approach maximum achievable of circa 57%? That's actually a good question. Your 57% is pushing it, and it it is really the boundary and limit of TIO two grade. The intent, of course, is to continue optimization. You do that through incremental equipment as spirals, principally, and, of course, the magnetic, separator. So the answer to that is yes. On the ground in South Africa, I believe that, the focus, on Remy's part, in particular, is actually to get involved in some of the higher the the two of the high value constituents of, zircon and rutile, and that will come through the magnetic separation route.

56:01 Are there any acquisition are there any acquisition prospects in the pipeline? No. Well, I think that's about it really now. That's great, Richard. Paul, if I may just jump back in there, and thank you for addressing those questions for investors today. But, Richard, before we would direct investors to provide you with their feedback, which is particularly important to yourself and the company, could I just please ask you for a few closing comments? Yes. Shall I hand back to you, Paul, because my mouth is now dry? I'm gonna get a. Yeah. It was a pleasure. I mean, I hope that what's come through in this presentation is that, as I said at the beginning, this isn't just a board change. This has been a complete company reset. Huge amount of work's been been undertaken and is still ongoing and actually turning the investments we have into into investments that can generate money for the company.

57:03 Richard has led from the front on this. He's put together a a board that is fully focused, very supportive of each other, and very collaborative. There's still a lot of work to do, but we're making great headway. And and the the items on the catalyst slide, I think, say, or, you know, we hope that we'll be getting those things across the line in the not too distant future. Initially, certainly, the, wellhead mineral getting that up and running in a in a, a cash generative, way, which is something that has been been long overdue. But thank you all for your support. Thank you for joining the call today, and we look forward to updating you further on on on news as it occurs.

57:53 Wish you all a pleasant afternoon and and a good rest of the week. Thank you. Yes. Thank you very much. Fantastic. Paul Richard, thank you once again for updating investors today. Could I please ask investors not to close this session as you now be automatically redirected to provide your feedback, which will help the company better understand your views and expectations. On behalf of the management team, we would like to thank you for attending today's presentation, and good afternoon to you.