Kazera Global (LSE:KZG) — Investor Presentation

0:02 Morning, and welcome to the KZERA GLOBAL PLC Investor Presentation. Situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so, and these will be available via your investor meet company dashboard. Before we begin, if I may, I would like to submit the following poll. And if you could give that your kind attention, I'm sure the company would be most grateful. And I now like to hand you over to CEO, Dennis Edmunds. Good morning, sir.

0:48 Good morning, Jake, and thank you very much. It's it's good to be back. In terms in terms of of KZERA, we're we're an aim listed company. We've done a we've done a presentation which a lot of our investors are probably already fairly familiar with. So I'll run through it fairly quickly on the basis that probably the questions, will deal with most of the the issues that that that shareholders have and most of the questions shareholders have. And if not, obviously, you can submit further questions. So turning to to the to the slide deck. I guess the first the most important point is is that KZERA is an aimless company. It's it's focused on on investments and developing assets, making a return from its assets.

1:36 We do that in a in a responsible way. We are strong, strong believers in both the environment and our social responsibilities, and we have a really good strong board, which helps to achieve these. Two major assets, as you can see from the bottom of that slide, which are deep blue minerals and Wellhead Minerals, and we'll go into those in more detail. The next the next point is is the board. Myself, I have a background as a lawyer. I've been working in mining related companies for for many years. Gerard Kisbee Green, our chairman, is a mining engineer. Past experience of both practical mining as well as investment banking, brings a number of different skills. Jeff Fair, a non executive financial director. Again, long history involved in mining infrastructure projects, raising money.

2:26 And then the most exciting, because he's the the fresh appointment, which was RNS this morning, is Peter Wilson as a nonexecutive director. Peter has, as you will see, over forty two years of experience in mining. He has done enormous number of different things in different countries, mining related. He has extensive background in, recently in various coal mining and infrastructure projects, and has also done a numb lots of of investigation and research into heavy mineral sands, interestingly, in the Northern Capes and knows exactly what we're doing. Also, of great importance in regard to Peter is that he is involved in infrastructure projects as well, which are related to mining, building of rail, and road links and ports.

3:17 Also on that slide, another thing I'd like to to draw people's attention to is the addition of African Mineral Sands to our key shareholders. Richard Jennings on the line have announced they are selling their shareholding to African Mineral Sands. Richard has got to a stage where he feels that it is time for him to retire and to and to get out of public markets. African Mineral Sands have elected to buy his shares. They are paying a premium of over 50% for the current share price. They have it would appear just from that on its own, great great confidence in what the company can do and what can happen with with the heavy mineral sands opportunities that we have, together with other opportunities that they can bring to to the to the, to the mix.

4:09 So that, think, is very exciting news for both the company and its shareholders. Where the company is now, it's it's an investment company. We we intend to be a company and are a company, which we are attracting investment on the basis that we can turn things around and we can realize a a result. We will use our board expertise and investment capability to do that, and we will use the proceeds from the investments either to to invest in in future projects or to return cash to shareholders. We have no intention of sitting on a on a vast bunch of cash. We're not a bank. We believe that if we haven't got a project in mind, money should go back to shareholders. Obviously, if we have got a project in mind and we can increase shareholder value, then that is the responsible thing for us to be doing.

5:03 The company has a our investment policy is is very broad. We we don't have any fixed parameters in terms of things that we can't do. Broadly, we will focus on on Africa, but there is no reason for us not to look at projects in other jurisdictions. And it is a very broad situation where we're looking at at opportunities and focusing on those if we can see how we can make a difference and how we can see an exit and a result for shareholders. The proof of the pudding there, I suppose, is the next slide, which is the sale of our Namibian assets to Hebei Xinxian Construction, which is a Namibian company for $13,000,000.

5:50 That deal was done because we we believe that taking cash in the current market would be an enormously sensible opportunity. We negotiated that there from an original deal where Hebe came in to buy our lithium part of our lithium project, and we negotiated that there into a sale of the entire Namibian asset. The deal there is $13,000,000 in cash. They've already paid 3,500,000. So there's another 9,500,000 to come before the end of the year. Most importantly, from from shareholders' perspective is that we retain 100% ownership of the company and the full price is being paid.

6:35 So we are sitting in a very, very strong position. They've already paid 3,500,000. We know they're looking at other assets in the area and are building up a portfolio in the area, in which case ours becomes even more critical to them. We also know that in the event that they don't pay, we can take the whole mine back and keep the money that they've paid us to date. So it's it's a fantastic position, and and what we feel a 500,000 that they have paid us has done has put us into a situation where we are not only cash positive. We're sitting with with cash in the bank, which enables us to progress our other projects, but it also puts us into a situation where we don't need cash from shareholders, and it is not a foreseeable thing. We'll be asking for cash from shareholders unless we got involved in a project which was much bigger than what we currently have and which gave us completely different opportunities.

7:26 Turning into our current investments, which are funded by the 3,500,000, which we've already got from KAZG. Focus is on the the Northern Cape. And in the extreme top left hand corner of the blue part, you will see a little orange area there, which looks very small. It's actually quite big when you're on the ground. And that there is our area of operation in the Northern Cape. Our area of operation consists of two different things. The first one is and the most important of them by a long way is Minerals. Wellhead is a heavy mineral sands operation. We got our heavy mineral sands permit towards the end of last year. We had a a few issues that we needed to resolve in terms of consents, which we got resolved.

8:20 And it's just it's a relatively small deposit. It's only five hectares. But what is very interesting about it is that it is constantly replenished by wave action. So it's a it's a area of the coast where the waves and the and the wind have deposited extensive heavy mineral sands. And as those sands have dug out, the waves and the wind will constantly replenish it. So it's when we talk about reserves of 1,500,000 tons, it's it's a it's a ongoing it's an ongoing situation in that, as I say, it keeps getting it keeps getting filled up again. But what is important and critically important here is the purity, which is 49.9% purity, and it is predominantly ilmenite and garnish.

9:11 Of the ilmenite and garment, the run of mine is garment is roughly 30%, and Almohan is about 27%. So they're both pretty much the same. There is a certain amount of zircon and a certain amount of ruchsia. We are looking at at other right in the area, which we are actively pursuing for hopefully, obvious reasons. I'm not gonna go into exactly what areas we're looking at, but why we think they're they're particularly attractive. But we do see we do see that area expanding. But having said that, you know, even on on that little five hectares, because of the fact that it constantly replenishes itself, we are really excited as being that they're being a source of very substantial revenues for the company. We look at that on the basis of we are installing a double decker screen as we speak at the moment together with a whole bunch of of other bits to get us into into proper operation. We are might we already mined a lot of heavy mineral sands, but it's now a question of us getting them into a place where we can sell them.

10:16 We need to take the 49.9% and increase the purity so it deserves attraction to the market. To do that, we are installing a a double decker screen, which is and and and and spiral plant. And we're also installing a bagging plant because the heavy mineral sands traditionally on the Northern Cape Coast need to be bagged and then and then moved to the the port. They can't be moved in in in pure bulk because of of of some of them having a radioactive element. So we're putting all that data together with a the hope of an intention of being in production limited production by the end of May this year.

11:03 What that limited production means is that we will be selling somewhere between one and two thousand tons, but which will be generating good cash for the company. But more than that and covering all the companies' overheads even from that. But more importantly than that, it will be determining exactly what we've got, exactly what the percentages are of ilmenite and garnet, what the size of those grains of ilmenite and garnet are because those are also relevant to to the market, and will enable us to get sample guides to a number of of of interested parties. We're in discussions with lots of different parties, lots more to come if we want them, who are extremely interested in in purchasing both the ilmenite and the garment as a as a as a combination.

11:50 I mean, ultimately, even better would be selling them separately and separating out the zircon and the rutile. So there's an enormous amount to come there. We have, at the same time, ordered a machine from Johannesburg, which is being built to our specifications. It it is a a trauma screen, which which is a screen which will completely change the amount of heavy mineral sands we were able to process. And we're looking at purchasing over 6,000 tons a month, which will again have an enormous impact on our bottom line. And the intention is to have that up and running before the end of September of this year. Just a quick slide in terms of what ilmenite and garments are useful. Garnet is essentially an abrasive, and ilmenite is used as a whitener, and it is also titanium dioxide is used as a an addition to to metals and high-tech metals, particularly in aircraft.

12:57 Then we move on to our diamond operation, which is called Deep Blue Minerals. Deep Blue is very much a a an ancillary part to to the heavy mineral sands, and that's the volumes of the heavy mineral sands, percentages of profit on the heavy mineral sands, and the uncertainty of the heavy mineral sands are all considerably better than they are with with diamonds. But the diamond operation has been going for a for a good period of time. We have been successfully digging out diamonds. We have not been so successful in terms of separating the diamonds from the gravel or selling them because of various local issues, but we believe that those have now been overcome.

13:45 And so the diamonds always be a very interesting and profitable add on to what we're doing. Why diamonds are particularly important though is that in the area in which we're operating, which is a diamond area, we cannot operate without having a diamond license. And the diamond license and and the right to mine diamonds is is under contract from the company which owns it, or it's a state owned company called the Lexcorp. And we need to have a Lexcorp's approval to to mine diamonds before we can mine heavy mineral sands. That said, the diamonds themselves can be a source of of of valuable income of between 60 and $100,000 a month. So it is a very attractive part of of of the operation. And whilst it isn't as exciting for us as as the heavy mineral sands, it is by no means to be ignored.

14:41 The area of the diamond area is is that area in dark gray. We get mining blocks from electrical, we currently have a number of new blocks which have been which have been allocated to us, which are very exciting in terms of the the diamond content in them. But so we would have a combination then of in the short diamond mining, which will be just simply removing the sand overburden, taking out the diamond gravels, returning the overburden, and then putting on the top soil over the top. Our marine deposits like we have in Volkers Court, where what we're doing is we are digging out heavy mineral sands. And as part of that operation, we will be going through diamond gravels.

15:34 The company, as I mentioned before, is is very focused on on the environmental and sustainability aspect. The I've explained already how the the inland diamond mining works. That is enormously aided by the fact that we're working on the coast where you have very strong winds essentially blowing sand and topsoil over all operations all the time. So so and and blowing fresh seed over mining areas. So as long as as long as the ground is restored in terms of the fact that when a when a hole or ditch is dug, that it is filled in again, we then put topsoil on, and then that whole area is just smoothed out by wind in in sometimes hours rather than even days.

16:20 Social impact is very important to the company. We work with local people. We all our all our employees are local. We are very committed to to making sure that that the benefits of what we're doing are felt by the local community, and we have fantastic support from the Richtersoft community in the Northern Cape, which is an enormous asset for the company. Best governance, I think it probably goes without saying any aim that the company is very focused on on governance, and it's one of the many issues that that, we have addressed, recently and have, I think, strengthened enormously. What what we've at the moment in terms of of immediate news flow, we we are producing those diamonds in heavy mineral sands. We should have news on sales of diamonds in the next couple of weeks, possibly slightly longer. Heavy mineral sands, as I say, we we are hoping to be in a position to be producing and selling heavy mineral sands by the end of May.

17:19 And then in September, we will have the operation properly up and running and be producing over 6,000 tons a month of product. The final slide really is why anybody would invest in KAZERA, and I think it probably goes without saying largely. I think there are very few companies that that could claim to be as financially secure as as KAZERA, sitting with over $1,500,000 in the bank pounds in the bank. Sorry. Another $9,500,000 to come with with which is underwritten by the fact that we can take the mine back if if that money isn't paid, that the purchasers already paid 3,500,000. That is an enormous amount to just write off. They are very invested in putting together big projects in the area, so ours is is key to to their big plan.

18:09 So there's every reason to believe that that future money will be coming in. But not only that, there are cost future money will be coming in from the production of both heavy mineral sands in the short term from the pilot plant and in the long term from the full operation. We have a track record of of successfully taking investments and realizing them as is proven by the the sale to Xinjiang. We have a clear path in terms of where we're going. We know what we're doing. We are very focused on finding investments which we can do something tangible with, where we can create proper value for shareholders. It's a sustainable company in terms of the environment and socially. We work always to ensure that we have a a clean and and well run mining operation.

18:58 The next point, a strong support is perhaps the most exciting. As I mentioned, we have new shareholder in African Mineral Sands. African Mineral Sands has extensive background in they and and associate companies have extensive background in the various mining projects, both in Mozambique and in America. Big background in the Northern Cape, in various commodities there, and have done extensive work on heavy mineral sands. So the fact that they have come in that they have come in at a premium has gotta be an enormous accolade, I think, for the company, and and an enormous sign of of things to come in the future. And the final point then is experience team, which I would say is just being added to by the fantastic addition of Peter Wilson.

19:47 And Peter, and the rest of the team, I am absolutely confident, will bring some really good results to the company within the next nine to two nine months to a year. So that is the presentation. Thank you very much. Dennis, that's great. And if I may just jump back in there, and thank you very much, indeed for your presentation this morning. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that situated on the top right hand corner of your screen. But just while the team take a few moments to review those questions that were submitted already, 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 your investor dashboard. Dennis, we did receive a number of questions ahead of today's event. And as you can see in the q and a tab, we've also received a number of questions throughout your presentation this morning as well. So firstly, thank you to all of those on the call for taking the time to submit their questions. And perhaps, Dennis, if we may just get straight into it, the first question that we have here reads as follows.

20:52 Going forward, what's your plans for growing the business using the significant cash pile now accruing? Is the new strategic investor African Mineral Sands seem to be core to future direction focus, or would you still you still seek to broaden the metals and minerals base given the likely number of investment opportunities among cash strapped miners in current conditions? Thank you for the question. It's quite a complicated one. In that in that, I think we are very much looking to see what opportunities there are. AMS adds an enormous new string to the bow in terms of of both its connections within heavy mineral sands together with its connections and involvement in other projects.

21:43 At the moment, the board is exploring exactly how we we make the most of those there and how the best value is is gained for for shareholders in in their entirety. But at the same time, of course, the heavy mineral sands side of the company, the existing part of the company, is in a really exciting place and that it is about to become cash flow positive, and it is within a very short period of time about to become a serious profit producer for the company. So we're in a a fantastic position of of being almost spoiled for choice in terms of directions in which to take the company. What we will be focused on, though, is making sure that what we do is something we can do and that we don't take on more than we can actually chew. I think I'm I'm a great believer in focus and making sure that when we do something, we do it well, and we see a result for our shareholders.

22:37 Thank you. Thank you, Dennis. That's great. The next question that we have here, reads as follows. You've talked about being imminently cash flow positive, from Diamond since the end of twenty twenty one, but still nothing meaningful is showing in the results to 12/31/2022. Why is this the case? Yeah. Again, a a very good question. We have been we have been producing diamond gravels. The process of mining is sort of diamond mining in in in this area is a fairly complicated one. We were moving overburden, sometimes six meters high. So, essentially, you can imagine six meters of beach sand having to be scraped away. We're doing that on the basis of a a really good understanding from our team in South Africa, led by, a chap called Johan Truter who's been there all his life.

23:27 And and he has a really, really good understanding of how the diamond gravels are formed and and and how those beaches and and riverbeds have have deposited diamonds over millennia. We are now looking at he's then got to remove that heavy mineral sands on the basis of this is where where the the diamonds were deposited several million years ago. He what we're now doing is we're taking out all those gravels, and we're we're separating those. We're screening those there on-site. But what has to happen before we can sell the diamonds is that they need to then have those gravels need to be further screened to separate out the diamonds from them. Once that has happened, they then need to be sold by Alexcor, who own all the ground. Alexcor sold them, and Alexcor then pay us our share of of of the proceeds.

24:20 For a number of reasons, there have been some delays, firstly, in Alexcor processing the diamonds, and secondly, in terms of sales. And also because of the fact that we have not been able to put through anywhere near the number of gravels that we've intended to put to get processed by Alexcor's plant. Those things all seem to have now been resolved, and we now seem to be on track. And, we we have always looked at the the the diamond gravels as being money simply a question of us being able to to withdraw it. It looks like we're now starting to get to a position where we can withdraw it. But over the last few months, to to provide a very long answer to your question, but hope you're answering some other questions at the same time, in the last few months, we have also focused very much on combining our diamond and heavy mineral sands operations because, as I said previously, the heavy mineral sands operation is by far the most exciting for us and for shareholders in terms of revenue generation and the fact that we aren't anywhere near as dependent on third parties.

25:31 Thank you. Perfect, Dennis. Thank you very much for that. The next question that I can see here asks, has the new large shareholder in been a good help to the company in any way? He has been fantastically fantastically supportive in terms of, calls and discussions. He is is clearly a very strong believer in in KAZERA and what can be achieved within KAZERA. I think the critical part of of his investment will be when he has paid his next tranche to Richard Jennings, which is in the next week or so, at which stage he then acquires, I we understand, full control over Richard Jennings' underlying research's voting rights.

26:21 That then puts him in a in a in a much stronger position, and he will then be much more, much more inclined to be introducing to us new opportunities, I would imagine. Perfect, Dennis. That's great. Perhaps just having a look at the questions here, a couple have come through that similar, in themes. If I may, I'll take, one of those as I think it speaks to both. When will KZERA announce if they are issuing a special dividend? Well, as I said in the presentation, I think it it it these things need to be judged time by time. What we need to do is, firstly, get further money in from from Jingjian. That that would be important. But then we also need to look at what what the opportunities are. Our major our major role in KAZERA is, as a board, is to produce increase shareholder value.

27:15 Mhmm. And if that there is by making a further investment, then we wouldn't be making a distribution to shareholders. If we are sitting on cash and we are acting as a bank, then I would much rather shareholders have that money in their pockets. And if we wanted money to do something, we would go back to shareholders. So it's it's very much a question of of it depends on the situation at the time. I think there are they will I'm hoping they will be very, very good new opportunities coming in from our new investor, and those they might well require a different a different a different type of approach. So I think, again, it's a really exciting time for both the company and its shareholders in terms of the fact that we are we have more opportunities than than than any other company I can think of right now.

28:12 Perfect. That's great. Perhaps just turning on to the next question we have here reads as follows. With a fair wind, when are you now expecting first revenues from HMS processing? Are you still comfortable with forecasts of gross profit in excess of $300,000 per month? And will there be capacity to build from this level? The answer, I think, is yes and yes. I'm I'm very confident that we're still on track. We will be the the the $300,000 a month will is predicated on the, new machinery, which will be in place and operational. We are aiming by the end of September of this year. But with the introduction of the double deck screen, which, we purchased probably about six weeks ago, together with the spirals and the rest of the work that the team on the ground are doing, we are confident that by the end of May, we should have an initial batch of Heavy Mineral Sands available for sale. So we are we are anticipating that we will be generating revenue from Hibbett Mineral Sands towards end of May or June with with the 300,000 a month, and we are hoping to to greatly exceed the $300,000 a month profit coming into play by the end of September.

29:37 Perfect. And perhaps just sticking with the mineral sands, a question that asks, when will there be an announcement on a buyer for the mineral sands? As soon as we're in a position to provide them with a detailed analysis of exactly what we've got. As I said, it's a combination of ilmenite and garnet predominantly, but there is also zircon and there is also rutile involved, and there might even be some monazite. So we've got we've got a number of of different components. The other issue for buyers is the grain size of the various components in terms of of where they get used in their value. So for us, it is it is before we can get any kind of numbers, before we get any kind of indication, we need to be able to provide an analysis. And we can't provide that analysis until we've run it through our plant because whilst you can take the sample and you can you can analyze that and you can say this is what it is, you don't know what your what your definitive product will be until you run it through your own plant. And you can say, okay. This is what we are producing rather than what's actually on the beach.

30:45 So, yeah, the the short answer is we should know by the end of May. Perfect, Dennis. Thank you. Has the company's outlined plans suffered any material setbacks due to the well publicized power issues affecting regions in Africa? Thank you. Power is a is a is a absolute issue in in Africa and in particular in South Africa at the moment. We have always worked independently of of the national grid by using diesel to to run operations. So we use diesel generators, and we are also in the process of exploring solar power. We work on a part of the coast which has good strong sunlight, but it also has strong wind and a lot of dust.

31:40 But we have worked independently. Where we have been affected has been in the Maeswag plant, which is run off the state Eskom's power supply, and Eskom's problems are are legion and very well publicized. So one of the problems we have had in terms of diamond production has been, Alexcor's power supply. And it's one of the reasons why the heavy mineral sands operation is so is so exciting for us is that it is run largely off of diesel, and we will be able to we're running at that. They will be independent of anybody else. We will be mining it. We will be processing it. We will be bagging it, and we will be putting it onto trucks for our suppliers our our our purchases.

32:27 Thank you, Dennis. Perhaps just segueing onto the next question. How is progress with our license applications for the much larger adjacent HMS blocks? Beyond saying I am very content with where we are and what we're doing, I don't really wanna go any further. It is it is something which, clearly, the more we we talk about, the more the more potential competition we create. So but we are we are very happy with with the areas on which we're focusing. Thank you very much, Dennis. Another question, that we've received, reads and talks to why why the share price is so low at the moment and then perhaps your thoughts, on that.

33:21 Yeah. I think it's it's a combination of a of a very tricky market, at the moment, and it was one of the reasons that we as a board decided that, taking cash from from the operation in Namibia was was what would put the company into a uniquely strong position, and I think the way that markets have performed has probably reinforced that. I also think that there is a certain amount of skepticism about whether KZERA will be paid the full 13,000,000. And I would, again, just point to the fact that the the the buyer loses 3,500,000 together with the mine if he defaults. And the fact that he is involved in in trying to do so much in the area in terms of of other other potentially mining operations, and that he's paid us 3,500,000, makes that incredibly unlikely in in my view.

34:24 I also talk to him regularly. I know what his difficulties have been, but he is very committed to to to making this happen. So I I think that we're in a really strong position. And I also think that when we see the heavy mineral sands come into production, that they will also change it because investors will then suddenly understand that we're not just living off the 13,500,000 or the 3,500,000 we've received today. More importantly, we are generating cash, and we are now, cash flow positive irrespective of of the investment from from, Xinjiang. So we're a really, really strong position, and I think there will come a sudden realization where the market will actually realize it. Perfect. Thank you, Dennis. Perhaps a couple of final questions, that we have here. The first one being, has any tantalum or lithium been sold?

35:21 In in Namibia? No. As I said, what what has happened is that is that Xinjiang are in the process of of looking at at other assets in in adjacent areas or not necessary adjacent, but the similar areas. The intention will be for them to build the plant. I I spoke to their principal two days ago. Their intention is to to build the plant, and they need to be sure that what they're building the plant to do is not just to process the lithium and the tantalum on our mine, but also the the lithium and tantalum on other mines. Everything comes in in in different purities, in different grain sizes, in in different formats, they need to make sure that that what they build covers all of those if it's gonna be a successful plant. So they are very much involved in doing that there.

36:16 They have, I believe, started to look at at putting or have started putting in orders for for machinery that they need. They're now finished at the end of paying what they want, but they're they're a bit away from producing lithium. Having said that, now that they actually have decided on what they want and that they're ordering equipment, I would be very surprised if things don't happen very fast. They aren't the kind of people who who hang around. I've seen operations that they have in Namibia. They they get out and do stuff. Perfect, Dennis. And perhaps just sticking with Tantalum just momentarily. Have KZERA received the first monthly payment for the tantalum mine? I think the first monthly payment is referring to I don't know.

37:10 If it's referring to to royalties, we haven't obviously received those because they haven't started mining. In terms of money being paid to us under the 13,000,000, we've received 3.5 just over $3,500,000. So they're up to date in terms of their payments, and we are pretty much on schedule where we're expecting to be probably in terms of the building of the plant. Thank you, Dennis. And and perhaps just turning to a question from Paul. Paul asks, if it is so windy, could you use an impact investor to provide capital to to back a wind farm, element to your story? Paul, a really good question.

37:56 The the that is one of of of the ways of doing it. It is fairly capital intensive compared possibly to a solar farm because we aren't only it's not only windy. It's also very sunny. So we are currently exploring both of those those those ideas, And we are looking at possibly doing a deal, if if we can, with with investors who will be paid off to people who put in either a wind farm or a solar energy plant or both, and who will be paid over a period of time from what we would have been paying in diesel or electric usage. So we're looking at ways of doing it without dilution to our shareholders, and without using the company's money.

38:49 Perfect, Dennis. And and perhaps one final question that we have here from Ian. Hello, Dennis. Have we been discovering any archaeological artifacts while mining a HMS and diamonds? In very interesting. And the answer is no. And I think the reason for that is that we are very much mining in sand. We're not mining down down a cliff face or anywhere where you've got perhaps sands. I I please, please, I'm not an archaeological expert at all. But we're not mining in sandstone or or rock formations where my understanding is no more typically find archaeological issues of archaeologically important.

39:35 So items like archaeologically important. So it's very much in beach sand. It's been deposited by the tide. And pretty much like walking along the the beach on on on one's holidays, you know, you have you have shelves deposited along the edge of the waves. Diamonds, obviously, are a heavier, have much less wave resistance, and have been deposited by rivers and by waves over a long period of time. And then it's just sunk down due to due to their specific gravity, to form to form in gravel beds with stones and other items of higher specific gravity, and those gravel beds are are where we are exploring. And I'd imagine that if you were a bone lying in a gravel bed, you'd probably get ground up by the, higher density, diamonds and and, stones, but I I I speak subject to correction. We certainly haven't charged any, and I'm not aware of any in the area.

40:37 Dennis, thank you very much for that. And thank you very much for being so generous of your time there and addressing all of those questions, that came in from investors. And, of course, if there are any further questions that do come through, we'll make these available to you immediately after the presentation has ended just for you to review to then add any additional responses, of course, where it's appropriate to do so, and we'll publish all those responses out on the Investor Meet company platform. But, Dennis, just before redirecting those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, if I could please just ask you for a few closing comments to wrap up with, that'd be great. Yeah. Sure. I think the the really interesting part about KZERA is it has cash in hand. It has cash to come, and it has a new investor with a whole bunch of different projects who's investing at a substantial premium to the current price, and he's not doing that there just because he wants to pay a premium to the current price. He's doing it because he believes in KAZERA, and he believes that he can introduce projects which will be of enormous benefit to KAZERA and its shareholders.

41:41 I think it's a really, really exciting time for shareholders and the company. Dennis, that's great. And thank you once again for updating investors this morning. Redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations? This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of KZERA GLOBAL PLC, we would like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all.