Kazera Global (LSE:KZG) — Investor Update

0:01 Good morning, and welcome to the KZERA GLOBAL PLC Investor Update Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged. It can be submitted any time via the Q and A tab situated in the right hand corner of your screen. So click Q and A, scroll to the bottom, type your question and press send. Company may not be in a position to answer every question received during the meeting itself. Have the company review all questions submitted today. We'll publish responses where appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Dennis Edmunds, CEO. Good morning.

0:32 Good morning, Paul. Thank you, and welcome to everybody who's joined us. I'm going to apologize to start this on the basis of a bit of a new experience for and for me. But, yes, I think it's going to be very positive. It's part of our mission to engage more with our shareholders. So I'm looking forward to it and look forward to your questions.

0:57 Is an investment company. It's focused on developing early stage assets towards meaningful cash flow and resource realization. A long sentence, but what we're really focusing on is finding assets in which we think we can add value, adding that value, and then either keeping them and and and keeping the cash that's being generated by them or finding appropriate buyers for them. Either way, generating cash either by way of revenue or capital. The current assets include diamond mining in South Africa, heavy mineral sands production opportunity in South Africa, and a tantalum producing operation in Namibia, which has lithium potential as well. Now what I'll do is I'll go through each of those in in more detail as we as we go through the site.

1:45 We're also in the process of acquiring a rare earth project in Kenya that there is fairly early stages. We're we're still in the process of of doing due diligence and finalizing legal documentation. As a as a long term focus, know, what the company is trying to do is to leverage its unique core experience. We have a a a very good board to explain to you later. Supported by some really superb people. And our investment capability, operational efficiency to generate cash to see growth for shareholder value. And I will say cash will either be by way of revenue or by way of actual sales. The history the history of of KZERA was relevant history of KZERA, I suppose, is that in January 2015 as Kennedy Ventures, it acquired 75% of what is our current platinum tantalum project in plant life value Namibia. That's with £660,000.

2:48 It changed its name in March 2018 to GLOBAL. And one of the things that the board at the time did, I was not on the board then, which was, I think, very, very good for investors generally, was that it redefined itself as a investment company. That meant that in June 2020, it was able to acquire controlling stakes in Deep Blue Minerals, which is our diamond operation in Alexander Bay in South Africa, together with the heavy mineral sands opportunity in a subsidiary company called Whale Head Minerals, which is in exactly the same area. And I'll explain to you more detail about why they're in the same area when we get down to that slide. In June 2020, the balance of the Tantalum project was acquired, so it meant that the company then owned 100% of the Tantalum project.

3:38 And then recently, you've probably seen an r and s in June of this year where heads of terms were agreed for the acquisition of 71% of the rare earth project in Kenya. I'll go into each of those there in in more detail.

3:54 To start with, looking at location of our assets in Namibia and Southern Africa. To all intents and purposes, they're they're in the same place. If you if you look at the map, you can see where the Alexander Bay South African assets are in relation to the Namibian assets, which are just south of of Orambush. It was just across the Orange River and the border between Namibia and South Africa. The distance from Cape Town to Alexander Bay is around seven, eight hundred kilometers depending on how you go there. And it's pretty much the same distance from Voronbodak to Vintuk, which is the capital of Namibia. So it's a very difficult place to get to. It's fairly isolated, which has its own advantages and its own disadvantages. It means that it's difficult to get to. It takes time to get there. But the advantages are there are communities there who are not don't have a lot of other opportunities, and it's a real opportunity to get involved with them, to get good labor, and to get a really loyal and and strong labor force built up. And that's certainly what we've managed to do in South Africa, part of what we're trying to do at the moment in Namibia.

5:08 So turning to Namibia. In 2019, we had a a chalk resource published, The combined tantalum and lithium resource of of a 104,000 tons indicated, 219,000 tons inferred. Tantalum, 323 parts per million. Lithium, 4,410 parts per million. And then subsequent to that, there was a further report done on White City, which is which was not included in the first report, and that there was a further 297 tons of tantalum indicated a 105 parts per million.

5:55 That study did not look at at the lithium potential. The lithium was was not a part of the of the focus of what was what was being looked at, and it was fairly general and fairly unfocused in terms of the deposit. The interesting part about the Tantalite Valley Mine or big potential of the Tantalai Valley Mine is that we have only drilled approximately one third of it. There is a considerable amount still be drilled, obviously. There are a lot of pigment sites which still haven't been properly or even vaguely explored. So there's there's great opportunities there. There is an issue that the plant itself is fairly old, and it's it's now becoming more and more unreliable.

6:43 But we have been working on on the grades because whilst the plant is never gonna produce the volumes we were hoping for and are hoping for, the important part was to to get to a situation where we could see grades that made sense, and and we can we can export happily on on 25% lithium as part percentage of our 25% of our concentrate. That has led to us being able to put together a a 1,000 kilogram batch of of concentrate, which is currently in the process of being sent to China. So that is the first commercial batch of lithium produced by the bank. And the picture on the on the right there just shows the the the contrast between the lithium and and the rest of of the surrounding area. It's it's obviously much darker.

7:31 And that's the focus is getting the lithium out of the enormous amounts of silica in particular with which we're surrounded. One of the most encouraging parts about Namibia and the most exciting thing that's happened in Namibia for quite some time, arguably, one of the strategies in our company for quite some time, is the deal we announced last week in which we have an investor who has invested $7,500,000, American dollars, or 49% of the lithium marketing company. Now what we've done is we have separated out the marketing of the lithium from the mining of the lithium. So what is very important here is that the company retains full ownership of the lithium.

8:17 It remains our asset, and we have complete control over how it is mined and the the process generally. The 49% is is paid for about $7,500,000, 2,500,000 of which is in cash, and we already received the first 100,000 of that. In fact, that it was actually received, it was sent to us a couple of days before it was due. So I think that's a a very positive indication of of where that relationship will go. There's a further 5,000,000, which will come in by way of machinery, equipment, and expertise. The important part about that is that the equipment expertise and machinery will all be agreed beforehand. So the value of it will be agreed and the type and and the nature of it will be agreed beforehand.

9:08 So for example, when it comes to a drilling and and blasting campaign, we will get a quote from our new partner, and we will also get quotes from other people. If our new car partners quote is the same or lower, that is obviously the one we will go. If it's not, then we won't. So it's not it's not the the 5,000,000 is is a genuine 5,000,000 of value into the company. What it means is that the plant can be upgraded, and that will, in a really short period of time, we think within the next couple of months, lead to proper volumes of tantalum being produced. We are looking at at ultimately achieving, at this stage, 4,000 kilograms of concentrate per month to be exported.

9:56 That they would be put the the tantalum production into into substantial profitability, and it would give us an enormous amount of confidence going forward. So that that's the focus very much at the moment is is getting tantalum production. But also while that happens, and and, of course, while we're drilling and blasting, we're also producing the same ore which contains lithium. And the intention there is to have the lithium side of the operation in full production by January next year. We do have tailings which contain a lot of lithium. And so there is a stockpile waiting to be processed as soon as we have the the appropriate systems in place. So it's really exciting in terms of Lithia having been very much understated in Namibia, and now suddenly has got a real meaning to us.

10:46 And what it does is it means that the company will no longer need money from from London. That it happens immediately because, obviously, the the 2,500,000 of cash coming into into Namibia. It also what it does is it will provide us a justification for further exploration. We mentioned some time ago in an R N S E P L 7238, which is in Luis, which is in the more northern part of Namibia, three hours away, roughly, from Vinci. That EPL appears to contain both lithium and tantalum. It's not something we have explored up to date because of of finances and the focus being in terms of getting what we've got working rather than spending money on things which are in addition to that and then forgetting about what we need to be focusing on.

11:40 But now that we have cash and we've got a partner who's very interested in the lithium, that is certainly become something which is now becomes relevant to our plans for the future.

11:52 Turning then to to South Africa. On the right, I've given you a slightly more detailed map, and and it indicates the size of the area. The mining area, which is owned by Alexcor, stretches from Alexander Bay in the North, which is just South of the Orange River, all the way down to Port Mollis in the South. And it goes both sides of the main road, is the black line you can see there, and that is roughly a distance of about 90 kilometers.

12:23 And operations are on both sides of the road. Although at the moment, our focus is very much on the left hand side, the Atlantic Ocean side of the road. It's an alluvial diamond operation. It's under contract with the landowner, and the landowner itself is a joint venture between Alexco and the Richtersveld community. The Richtersveld community represents the five small towns in the area who are indigenous local people. And, again, as I say, employment is is not easily available. So we can pick and choose, and we've managed to work with some really, really good people. We've got a fantastic team. The estimate at the moment, official estimates of diamonds available in that area has been extensively mined since 1928, but the projection rather is over 2,000,000 carats of diamonds still to be mined there.

13:18 How the contract would that we have with Alexcor works is that we get a a number of free areas allocated to us at a time. As we mine the diamonds, Alexcor is processes the we mine the gravels. Lexcorp then processes those gravels, refines them down to to the most diamond containing gravels. Those then get sorted, and then the diamonds get separated out, and the next will then handle the sale process. It's been a very difficult road for us for some time. Alex will have difficulties running their base lock plant. We have previously announced we took over the Maceloc plant for a period of time to try and make it work for Alexco.

14:06 We were successful in doing that, but various things intervened of the political nature, which meant that it became uneconomic for us and and non beneficial for us to be continue to be involved. So what we've done instead of that is that we have which makes us make that we haven't been able to produce diamonds. So we've been able to produce gravels. We have built up substantial gravel stockpiles, but we haven't been able to produce diamonds because of the Maeschwach plant not running. When we stopped running it, it stopped running. So what we've done is we have introduced the pan plants, and inserted a picture of the pan plants to the right. It is incredibly difficult to show you the scale. What I have done though is included in this picture, particularly, a couple of people standing next to the plant.

14:57 Scale is very difficult when you're when you're trying to take a photograph in the desert or with the sea behind you. They are both so vast that any machinery looks looks ridiculous if you got a photograph big enough to to see the machinery or from a far enough perspective. But here, you can see it in relation to the people. It's a vast plant, 16 meters 16 feet, sorry, 16 feet across, able to handle up to 70 tons per hour of of gravel. It it is will will chew through our stockpiles. Why it's such a great deal for us and and one of which we're incredibly proud is that it doesn't involve any cash outlay from The owner of the plant has put it on-site.

15:43 He has paid for the the removal of bringing it to the site. He will also has provided, in fact, an operator of it. And what will happen with it is that we will pay him back as diamonds are sold. So there is no we we pay him only as we generate cash. And the interesting part about that is that what we are paying him is less than we were paying to Alex Corp to process diamonds through the maze flock plant. So it's a it's a much better deal for us. We have complete control now over the initial production of our of our diamonds, so we can process the graph up all the way up to final sorting, which is for obvious reasons of security, still carried out by Lexcorp, and Lexcorp will carry out the sales. But Lexcorp got a new CEO in place. He appears to be a genuinely good businessman, genuinely committed to making LexCorp work, and we are really, really positive about where the future lies there.

16:48 Again, what this means is that because we can get our gravels and get diamonds through at the appropriate times, we'll get them into the auctions, which execs holds roughly every six weeks, which means once again, we have an operation which will no longer need any funding from KZERA in London, which is which is where we hope diamonds would be long ago, but weren't able to get to because of of the issues of production. Now because of the plant pot, that is no longer a problem, and that is exactly where where we believe Deep Blue will be from now on. The big question then perhaps is is why diamonds are so important to KZERA's plans. We can make money out of diamonds, good money out of diamonds, probably around $3,040,000 dollars a month. But it's not it is not the reason, particularly, for the diamonds.

17:38 The reason for the diamonds is the heavy mineral sands. Heavy mineral sands exist in great density in a couple of areas in the electrical territory. I'm showing you a picture here on on the right hand side of literally a handful of sand scraped up off the beach, and you can see how almost tarry it looks. And that is because of of of of the heavy mineral sands in it. I'll get on a little bit into the analysis of that in a moment. But the problem with with mining heavy mineral sands in index cause area is that you aren't allowed to do it unless you have a right to mine diamonds. Diamond miners don't wanna touch heavy mineral sands because the cost of production is is just so high because, obviously, heavy mineral sands themselves are very difficult to separate out from the diamonds.

18:30 What we have done is is to combine the two. So we have an application for a mining permit, which I will get into in a moment, together with the contract to mine diamonds. And we believe that they will give us a fantastic opportunity to both mine diamonds and heavy mineral sands and to cover the costs of the diamond mining, which are clearly high by the much better profits to be generated by the heavy mineral sand.

19:01 The heavy mineral sand permit areas we've applied for is is a relatively small area. It's only five hectares. It's we had a feasibility study done in 2020. That this shows that we have 3,110,000 tons of heavy mineral sands at a grade of 62.1%. Predominantly garnish, is 30.29%, ilmenite, is 27.54%. There is a small amount of of of rutile and zircon, but they weren't included in the in the valuation. It's interesting because Foreman's original area of operations, Foreman are a just the company that's showing us current based on the coast from us on on the West Coast Of South Africa.

19:48 Also mining heavy mineral sands, and their initial resource was of 2,700,000 tons. To date, which is about nine years, I think, later, they have mined 9,700,000 tons. And the reason for that isn't that they got the initial assessment wrong. The reason for that is wave action. What happens is that as these sands are mined, a gap is left on the coast, and wave action redeposits further heavy mineral sands in in those areas. So it's it's it's a it's a self replenishing access in lots of ways. It also means that that rehabilitation is is is a very straightforward process. The NPV given to our operation on that small five hectares was at at a 20 discount, was $223,000,000, which is a substantial amount of money. And, again, I don't possibly because we haven't yet got the mining permit. But when we get that mining permit, it's got a major implication in terms of the value of the company.

21:02 Our target there will be to to be producing 6,000 tons per month of of heavy mineral sands, which will generate substantial profits in the vicinity of around $300,000 a month. We've also applied for a prospecting right over the adjacent beach, which is called. That's about 34 times bigger than Valtus Corp, and that there is is also in the process. So we do have already got the application filed. Where we are from a legal perspective, though, is is is the the big issue here. Our mining permit was granted subject to to appeal against against the decision, and an appeal was received from Alexcor, interestingly.

21:54 We have spent a lot of time with our our consultants have responded to that appeal. We don't believe there is any validity in it. We also believe that the Department of of Mining has done an the job that it's supposed to do, which is an extensive job in making sure that all environmental and other aspects are taken into account before they give us initial approval. So when they've given us initial approval and initially outlined granting of of the permit, they've done us also extensive work. And we don't believe that this appeal has any merit. But we are awaiting the results of that shortly. So when that day does happen and provided, obviously, that it's positive, it will be it will be fantastic news for the company.

22:40 And not only for the company, but also for Alexcorp because they'll be able to access diamonds they were never able to access before. And also for the local community, there are a number of jobs that can be generated out of out of what's happening here. The the next step in terms of of the heavy mineral sands is sorry. I'm I'm sorry. I'm getting back on slide too far here. The next step in terms of the heavy mineral sands is to install a plant to separate out the various elements. We have been in discussions with a number of parties. We've indicated a willingness to do that. Indication of the type of deal, Somebody putting in a plant to process around 20,000 tons a month.

23:28 That they will mean that the it'll be enormously been beneficiary. It'll probably increase our share of of the profit by about five times. But what it will do is we'll probably get 40% of that. They will get 60%. It's a type of discussion that we're having at the moment. So it means that we'll be able to greatly improve the the profitability of of the heavy mineral sands, but at the same time, it's not gonna cost us money to do it. Right then. Moving on to Kenya. We have announced that we have agreed terms to purchase 71% of a company with free exploration license in Kenya. The picture on the right shows you Kenya, and it shows you where the project area is up in the top left hand corner.

24:20 And the picture on the left gives you that whole picture in a little bit more detail. As you can see, they're good road links, good rail links. And you can also see that there is a fairly big town in not too they're not too distant from the area of operation.

24:40 Boru Hill is is is the area which we are focusing on initially, and that area is if you go down the main road from Kisumu, follow the red road, and you can see Baru Hills is pretty much just on the road there. And you can also see there are other towns in in in the area. So it's it's, yeah, very well located. Kenya, of course, is a good jurisdiction to be to be working in in in each terms. The consideration for this deal is £750,000 payable purely in KZERA share. The first tranche of 250,000 will be paid on completion. The second at at at a price of 1.5 p per share.

25:28 The second tranche will be a further 250,000 at 2.5 p per share, and that will be payable on production of the feasibility study. And the third tranche of 250,000, also at 2.5 p, will be paid when we go into production. As I said, the focus is on Guru Hills. Guru Hills is 13 square kilometers out of the total area covered by the three licenses of 346 square kilometers. So it's a it's a fairly small area, but it's had extensive work done on it. And because of the extensive work done on it, we are going to focus on that there initially. We're going to our intention over the next six months is to get a jolt resource done on on the assets at Bora Hills.

26:23 The exploration jolt exploration target on Bora Hills is 27,000,000 tons at 1.89% rare earths. An informal valuation was done in 2011 by IGV at $3,300,000,000 for for Berea Hills. So there is it it it's it's a game. An enormous amount of upside here. The the picture shows you the hill and how how it outputs. And I've not yet been to Kenya to have a look at it, but it's fully part of due my due diligence process. But from from that, you can see how easy it is to identify where these outcrops occur.

27:09 So this could be this could be worth an enormous amount of money to the company in the future. Right. Now how's it all happened? I I sent you that that I was supported by by a fantastic team of people. We had some recent board changes, and Gerard Kisbee Green has come on as our our executive team. Gerard is is absolutely perfect for, I think, what we are trying to achieve in the future. He is based in South Africa. He's a mining engineer. He's worked extensively on mines. He's worked extensively in investment banking. You can read the details there, but, you know, he and he's based in South Africa, so in Cape Town. So he has picked so many different boxes and adds a whole different set of of skills.

27:59 We then have Jeff Edge. Jeff, as you can see from his CV there, he's got a lot of of good financial background in resources. He, in the short period of time he's been there, has indicated a great amount of enthusiasm of of of in wish to get him more involved in what we're doing. And, again, I think it would be it be a real asset in in the months and and years to come. And then finally, we've got Odilon Longe, who is based in Namibia. Odilon is an intelligence. He has worked on a number of mines, got a lot of practical experience, and brings a completely different element to to the skills on the board. But between between the four of us, we have a a really, really good team there. So I'm very, very pleased with how that looks and how how bodes well for the future.

28:55 Turning then to just a summary, in terms of why I think this is such a great company, why I'm so proud to be involved in it. Firstly, I think it's considered to be undervalued. The the lithium deal alone values the company at 15,000,000, which is which is, you know, greatly in excess of our current market cap. And, you know, you gotta remember that our market cap and everything up to date in terms of the company has always been based on tantalum, to a certain extent, diamonds and heavy mineral sands. The lithium comes out of less fuel to a large extent in terms of the market. And yet, it's it's it's at a value higher than the market cap. The other really major thing and and a really, really big part of of our company is is this new investment we've got. It means the production of Tantalum will increase substantially within two months. It will get to a stage where we're producing proper profits out of the sale of Tantalum.

29:56 We'll be doing exactly the same this year in the first quarter of two thousand and twenty three. As a as an added bonus, essentially. We expect to be able to publish a full MRE in terms of what we have in Cantalight Valley within the next month or two. And then we've got further chance to amend and looking for it to be explored. As I mentioned, in Greece, we have we have an EPL up there where we have a joint venture, which will enable us to explore further assets. And I guess the most important point about this is that the investment means that Camp Life Valley needs no further cash from in London.

30:46 The diamond operation has now become largely independent of third parties. So that means that, again, it won't require cash flow assistance from from London, which is which is, again, an awesome position to be in. We are awaiting the heavy mineral sands mining permits imminently. When that happens, it will, I believe, have a, again, a major a major impact on on our share price. And then we have Brewer Hills. We'll complete the due diligence on that within the next couple of weeks, hopefully. We are as soon as we we manage to do the due diligence.

31:24 And then we fixed job resource within six months, which will again substantially upgrade that asset. So the enormous number of things which are in the company and which are really, really positive. That's it. Thank you very much. Dennis, thank you very much indeed for the presentation. Ladies and gentlemen, do please continue to submit your questions using the Q and A tab situated in the right hand corner of your screen, which is why Dennis takes a few moments to review those questions submitted today. I'd like to remind you that we're recording the presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. Dennis, obviously, we've had a number of questions that have come through during the phone. We also did have several presubmitted questions. So if I may, perhaps I could start with a few of those. The first one reads as follows, and I think you have covered most of this off in the presentation, but if there's anything further to add. You said is in the process of applying for the prospecting right over, for HMS over an adjacent beach appearing to share similar characters characteristics of our Velvescope, approximately 34 times larger. That was in September 21. Has there been any progress on this?

32:25 Is this pending the Velvescope decision? Is if so, will the pathway of this prospecting license also be substantially cleared if when the valviscop gets the go ahead? Yes. And it the two are fairly intellectual or very intellect. So when we get the heavy mineral sands permit granted, we will also be able to to proceed with the exploration license. The problem that we have at the moment with with the exploration prospecting license is that that's being held up because the Department of Mines is is not gonna make a decision on that until it's satisfied that the mining permit application has been done properly. So the two are are definitely into length. Fantastic. Thank you. The next question we've got here is this, is the Namibian company investing in the lithium opportunity linked to early indications of a prospective investment from a Namibian investor?

33:20 I asked particularly because it was previously said that potential investor believes that KZERA represents a strong candidate consolidate further mineral licenses across Namibia, across the border in South Africa. It's a it's a very good question. And that is the answer. They are they are really good at at the the people we've we've got now are very involved in crushing and mining operations in Namibia. They already have extensive equipment in Namibia, and so they become a very good partner for us on the basis that they can quickly bring equipment and expertise onto site. The previous investors were both pure investors, and this is a a very different situation.

34:10 It has nothing to do with them. Thank you. Next one we've got here. I realize things are moving at a pace right now. But at the time of writing this question, the company has two corporate Twitter accounts at KAZERA PLC, which has not been maintained since 2020, whereas KAZERA G has been newly launched and carries all the exciting recent progress. Big thumbs up on the new news new Twitter page, but clearly, it's confusing. Could you give some comments on that, please? Sure. Thank you for the thumbs up. In regard to to the confusion, you're absolutely right. The the issue we have is is that the previous account was being managed in Namibia, and we I have been unable to date to get access to the password. And not because anybody's trying to be difficult, but simply because it nobody knows where it is and who's got it. So that was the reason for us setting up up the the Fresh account, and we're now in the process of removing the old one. Hopefully, it should give people a bit more clarity if people can find where they want to go and not get confused.

35:14 But it it's a very good point. We are addressing Super. Thank you. Next one we've got here. In December 2020, the company announced an MOU with Madchef Mining and Energy, the holder of several exploration licenses in Central and northwest sections of Namibia, where KZERA is granted the exclusive right to evaluate four other licenses, offering the prospects of partnering with Madchef should any license be just have the necessary potential. Was the evaluation completed, or is this ongoing? No. It it it's very much ongoing. It's been put on hold initially. As I said in the presentation, the focus is my focus has been very much on trying to get this company into cash flow positivity. Once we've done that, I think we can start to play around with other things. The the change now, of course, is that with this investment into the lithium project or the creation of lithium project almost, the opportunity that that is represented by a exploration in a area which has got lithium starts to make much more sense. So that's that's certainly something we'll be on our radar now.

36:19 That's great. And the final presubmitted question we have here, transparency was certainly not one of the strong points of the previous management team. With this new management team, can you provide assurances that transparency will be at the forefront of future RNSs? Shareholders deserve to know how much income the company is making. How else can the market take our company seriously if that transparency is not there? What way has the company correctly gonna be valued if we don't see this coming through? Could you just give some comment on that, please? I think I think that is a a very fair comment about about transparency in the past. One of the reasons for for today's meeting with with you shareholders is that I'm hoping to address that. We always are are in a difficult position in terms of trying to balance, in the case of Namibia, the requirements of the contract, which it's got fairly strong confidentiality clauses in it, together with our obligation to keep the market informed and our desire to keep shareholders informed.

37:23 But, hopefully, we'll be able to do a lot more of that there going forward. In South Africa, our issue has been slightly we have been negotiating some interesting, political, rappers. And, obviously, sometimes things are happening behind the scenes, which which would be very much compromised by by being too too open. But our our goal very much is is to be much more open with our with our shareholders and to engage much more with you and to to try and to try and answer your questions and to try and keep you informed. That's fantastic. That concludes the presubmitted questions. If I may, Dennis, just ask you just to click on that q and a tab and just start at the top where appropriate to do so. If you could just read out the question and give you a response even who it's from, that'd be wonderful. Thank you.

38:15 Sure. Michael h has has just asked whether and I think he's probably puts question which a lot of investors would share. As an investor, I'd like to see regular updates and time scales kept. Are you going to be giving monthly as well as quarterly reports? And, yeah, I think, Michael, the answer there is we are going to do our very best to to engage a hell of a lot more with our shareholders than we have before. We will be giving reports, but, yeah. I I like to to give reports when there is news rather. It's ticket as as things have been. I think as it goes forward now, because we're going to be in production on Canterdam, lithium, and heavy mineral sands. I don't see them. Diamond. Possibly, even in those sands in the near future.

39:03 It is definitely monthly reports. They will become a a lot more. We might as do them quarterly. It'd rather depend on how much news is there is at your time, but we'll definitely be doing this. Christopher Ells asked a number of questions, but one of them is please share an NPV assessment of various projects. Christopher, I think what I can what I've done is I've I've shared what we what I can share up to now in terms of the the we have the the job resource for for centralized value. I think there's a lot more to come there. So so the then that day risk is a constantly changing situation. So we will that will be upgraded. As I said, we are we have got assays that we're waiting for at the moment, and it will be a a fresh mineral resource system coming out.

40:04 In terms of the lithium, it is very early stages. Lithium, as I said before, has not been on our radio, so it's radar. So it's something that we're very much in the process of working on right now. And again, that will be part of of the new MRE which comes up. We have got an NPV in terms of the heavy mineral sands. There is an NPV in terms of diamonds from a long time ago, but the diamond operation is somewhat changed, and it will change more as we move into into processing heavy mineral sands. But the NPV on the heavy mineral sand project was a 150,000,000 pounds excess of. The NPV, arguably, although it's not a it's not a official report yet, in 2011 on the project in Guru Hills is 3,100,000 sorry, $3,100,000,000.

41:06 So they they we're working on some substantial assets. This stuff also asked what is the current status of commissioning of each of the projects. I think we've gone through that. Yeah. What we really, the only thing that I'm waiting for at the moment is on on on the in Tasman Valley, we we're applying for an automatic the the extension of our current mining license to include lithium because it's not currently included, but it's it's pretty much a formality. We've got the mining rights over the area already. In regard to Lexcorp, maybe I can deal with your next question, which is why is Lexcorp appealed against the granting? Do they benefit from the grant?

41:58 Alexcorp the person who appealed, the person who signed it on behalf of Alexcorp was the CEO at the time. He resigned from Alexcorp three resigned. He left Alexcorp three days later to pursue other things. So whether that was a Lexcore or or an individual, I don't really know. But, certainly, the new CEO is very much aware of the value to Alexcore of seeing of seeing the diamonds. Colin asked, can you explain the disconnect between the current market cap and the inherent value of the company at this stage? Pardon my card. I think I think it is an unbelievably good investment right now.

42:46 It's it's got so much so much unrecognized potential and so much unrecognized assets which have already come into existence. You know? But they have a mineral sands, like, except we're still waiting for a mining term. So that's that's a little bit up in the air. But things like the lithium, things like the tantalum, things like the diamonds all that. You know, they're very much there. But after there, you've been and and they've got great value. As I said, the value of the lithium deal values of lithium alone at at more than than the current market cap. And then if you take into account the upsides from from heavy mineral sands or from the Burrough Hills project, it it's considerably undervalued.

43:34 Richard j asks, what are your plans for distribution of cash to shareholders further down the line? It can win. It gets you a value capitalization event. Our goal for the company would be to see the company generating cash from its operations. If we then make a disposal, it would need to be on the basis that ideally, would be on the basis that we've got cash coming in from another resource and that we will then when we make a disposal, it doesn't affect the fact that we're generating cash. So the company continue paying for its itself kind of its own cash flow. What could then happen would be that any cash generated rather be going back to shareholders, which is the most likely scenario, or it might well be used for for further acquisition.

44:24 But unless we actually had an acquisition lined up, it would be going back to shareholders. I prefer to be going back to shareholders to raise more money for something specific and getting their buy into doing that deal than I would be just sitting on a potted cash on the basis of where we'll use it whenever we feel like it sort of thing for whatever we feel like. Ian n has asked what was the reason given by the objective to the HMS license application? And yeah. I think from a political perspective, I'll probably leave that, accepting to say that they were they were, what we believe, pretty spurious grounds and lack of consultation with with the local community, etcetera, which were pretty easily answered by our consultants.

45:19 The Rear Earth deal, when does it close? It closes when we finish due diligence, I'm afraid, hopefully, within the next couple of weeks. But we are waiting for for some issues around around entitlement licenses. So that's what that that's where the the holdup is at the moment. Harvey d asked how will the price of lithium sold be determined? Will it be at market price? Harvey, the answer is that we retained 51% of that company. So everything will be at market price. And that just goes back, of course, to machinery and equipment being provided by our new investor. That will also be at market price. Nothing will be done. Nothing is gonna be imposed on us.

46:12 We're not we're not doing some sort of sweetheart deal on sale of the lithium, and we're not doing a sweetheart deal in terms of the purchase of of any equipment. So, yeah, that's where we get. I think that's all the questions that we probably have time for right now. I think probably covered most of them as well. Dennis, thank you very much indeed. Of course, if there are any further questions that come through, Dennis have the opportunity to review those. We'll publish those back out on the investor meet company platform. If I may, Dennis, just before redirecting investors to provide you with that feedback, can I just ask you just for a few closing comments, please? I think the closing comments are really well summarized by the questions. It's a company which has got a number of assets, which is considerably undervalued. It is going to be a very different company in terms of shareholder engagement, and the intention would be for it to be generating its cash out of its own operations and to be returning cash to shareholders out of the sale of those of their different assets as we get them to to a position where where a a good deal is is feasible.

47:21 It's it's, I think, a fantastic company to be involved in. I'm I'm very, very pleased to be to be the CEO. Dennis, thank you very much indeed for updating investors today. Could I please ask investors not to close the session? It should be automatically redirected to provide your feedback in order that Dennis and team 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 Dennis and the team at KZERA GLOBAL PLC, we'd like to thank you very much for attending today's presentation. That concludes today's session. Thank you.