Rainbow Rare Earths (LSE:RBW) — Interim Results

0:01 Good morning, ladies and gentlemen. Welcome to the RAINBOW RARE EARTHS LIMITED investor presentation. Q and a tab that's just 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 is appropriate to do so, and these will be available via your Investor Meet company dashboard.

0:33 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. I'd now like to hand you over to CEO, George Bennett. Good morning, sir. Good morning, and thank you for hosting this presentation. This is a quarterly presentation that RAINBOW has been doing for the last couple of quarters now. And once again, it's an update in the last quarter as well as you would have seen that we announced our interims on Friday. But being a development company, interim results aren't really not that important for RAINBOW right now. What's more important is, as I said, is what we've done in the last quarter and what we're looking to do in the next quarter. Thank you. Just the usual disclaimer.

1:19 And I just want to highlight the investment opportunity and the base case for RAINBOW at the moment. Our flagship project is obviously our Parabola project in South Africa. And as we know, it's risk or deemed critical minerals that are forecasting massive rising demand due to the the need for the green economy and then also and there's an urgent need for non Chinese suppliers. So last in in the last quarter of twenty twenty three, we 2022, I should say. Sorry. We announced our PEA. And once again, very, very strong numbers. I just want to reiterate to the the audience. We had a NPV of over $621,000,000 using a conservative discount rate of 10. We had a post tax of IRR of 40% with a life of project EBITDA of almost $200,000,000 per annum, and that's using spot pricing in our financial model, which is very important to note, and a life of project margin of over 75%.

2:28 And with that, we've got a payback period of less than two years, which is significant, I think, for any project globally at the moment. That's development project. We have an innovative technology I'll talk about later and, very importantly, a very experienced team. This is the the opportunity for RAINBOW. We our market cap is circa $62,000,000 at the moment, and we have an NPV, as I said, base case NPV NPV of over $620,000,000. Once again, I've spoken about our experienced team, which we added to in the last quarter of twenty twenty two. And as I said, we've got the the experience and the skills to not only develop the paddle board project, but also from a corporate point of view with Pete Garden and Donsprullis, very experienced mining mining entrepreneurs.

3:19 Pete's a very experienced mining finance guy, which is very important for the next stage and RAINBOW's LIFE, which is for this the project financing of this project, we are already looking at to do well in line with completing our bankable or definitive feasibility study. Now the reason why RAINBOWs are so important in the world right now is that they are very important, what they call, building blocks in the whole world trying to trying to reach net zero in 2050. There's 17 elements in the Rare Earth basket. When you mine the Rare Earth deposit, you you mine all 17 elements, but there are only really a few key elements that the whole world is chasing right now. These are known as the magnet rare earths, and they're neodymium, percedinium, terbium, and dispersion at Karabor. We're fortunate enough to have all four of these in economic quantities.

4:14 Not all earth projects have all of these in economic quantities. And neodymium and presidinium, they make up just over 29% of the earth basket, one of the highest percentages of any earth basket in the world. And as I mentioned, we also have economic quantities of dispersion and turbine, which are also critical for permanent magnets. Permanent magnets, as we know, are critical in wind turbine wind turbines today, which the whole world is rolling out far more wind wind turbine power at the moment, electric vehicles, the defense industry, and also consumer electronics require all these permanent magnets, and we'll talk about that later. Now they've got a very competitive advantage, which is why they're required in electric vehicles. They give you better range, And we also know forecast is growth is forecast to grow very, very strongly for the next ten to twenty years.

5:10 And if we wanna reach the the COP twenty seven commitments, we need a lot more wind power to be and EV vehicles to be on our roads. Now just to sorry. Just to go back to the last point about electric vehicles and NDPR being very important for permanent maintenance. We know Tesla came out with an announcement about four weeks ago where they were looking to move away from permanent maintenance and the market had a bit of an overreaction. When you analyze the Tesla announcement, you realize that Tesla well, you know, 12 of rare magnet demand is for the electric vehicle market. Tesla is only 15% of that market. And if you then water that down, that means in the Tesla announcement, we think, puts only one to 2% at risk the permanent magnet demand using RARE EARTHS. So it is it is not as big impact as the market initially thought.

6:14 And then and when you then go further into the Tesla announcement, you'll notice that they haven't actually announced which electric vehicles they're gonna use the substitute to permanent magnets for. I mean, is it the the new range of vehicles? Is it gonna be the current range? There's no character on that, and they've also announced that they are going to look at possibly replacing this with the ferrite magnet. Now we know ferrite magnet has got penalties in terms of weight in the vehicle, and it will impact their range. So even if they do introduce these ferrite magnets, they've given us no timelines for development. We know permanent magnet timelines are anywhere between six to ten years. And as I said, ferrite magnets give you a range penalty. So we think that if they do introduce it, it will be to the to the the lower price range electric vehicles and the premium electric vehicles.

7:10 We wouldn't think that one affect their range and substitute permanent magnet motors. But that still has to come out in the wash and whichever way you look at it, it's a very small impact on demand. Another important thing to notice or to take note of is that consumer electronics still make up 50% of permanent magnet demand, and that's we're talking about electric hand or handheld tools, drones, electric motor scooters, electric motorbikes, and iPhones or or or smartphones use permanent magnets, for instance. So consumer electronics are very, very big driver, and, of course, wind turbines are a very big consumer of permanent magnet. So even though electric vehicles are very important, there's a lot of other things to consider.

7:58 And so I just wanted to get the Tesla announcement on the set for all the all the listeners to this and and broadcast. If we look at, as I've mentioned, wind wind turbine demand, this is forecast to grow very strongly if we hope to reach the COP 27 net zero targets of 2050, and that means far, far more wind turbines being rolled out. Now each three megawatt direct drive wind turbine requires two tons of permanent magnets. And of those two tons of permanent magnets, over 600 kilograms are rare earths per turbine. And we all know what's that the whole world is forecasting much stronger green energy from wind turbines, and we don't see that's lacking anywhere soon. The spark of for Rares prices in 2021 is a direct result of massive wind turbine capacity being rolled out in China in the first half of twenty twenty one.

8:57 And as as I said, we see further capacity being rolled out over the next ten odd years strong strongly rolled out for and that will mean very strong demand for permanent magnets in these wind turbines. EV sales are still very important irrespective of the route Tesla finally go. And as I mentioned with the with the Tesla announcement, there's no real details. So, you know, we saw BMW try and move away from permanent magnets. They came back to permanent magnets. So there's still a long way to go for that to have any significant impact. So electric vehicle demand, which is legislated to in terms of the the thematic and and the macro, we see this this demand continuing to grow right through until 2025, 2040 even, that's gonna require massive, massive investment and new projects to meet the the the roof magnets that the magnets that are required, and that's neodymium and percidinium, largely being the two key roof elements that have to feed those.

9:58 The the production of permanent magnets and the small amount of dispersion in Turbium. And as I've mentioned, we're fortunate enough in panel board to have all four of these permanent magnet rears. Quite a few projects that are being developed around the world do not have the capacity to produce dispersion in any meaningful way that we can. As I said, the supply deficits for Pelloborra is looking very good. You see our forecast basket price is slowly but surely trending up, and this is very important for our project economics and and for the the basically, all the financial metrics of RAINBOW continue to to to look very good for the next ten years and longer. And our project in has got a fourteen year life, and we'll talk about the resource update, but a minimum of a fourteen year life. So this this supply deficit forecast through to 2030 and longer is very, very positive for our basket at Balaburra.

11:05 We know that the Chinese dominate this market, and the whole Western world is looking for alternative supply outside of China. We believe RAINBOW is gonna be one of the key strategic sources of growth, permanent magnetores outside of China. In '20 sorry, thirty years ago, Ding Xiaoping in China announced that The Middle East has oil and the Chinese or China has reuse. So they saw the strategic advantage of reuse thirty years ago, and they built out the strategic advantage over a thirty year period. We all now know that that the West does not want to rely on China, so there's a massive forecast sorry, focus on RARE EARTHS projects outside of China, and we believe RAINBOW is one of those key projects that will go into production and will be one of the solutions to looking for resources outside of China. Also very critical in the defense industry, even though not massive volume, but from a strategic point of view, very, very critical. And every fighter jet, either f 35 or an f 19 or so forth, they require 420 kilograms of rare earths per jet. So as you can see, this is also a key area that the rest is focusing on from The EU to The US is that you have strategic supply for these critical rare earth oxides outside of China.

12:30 Now going to the palatable project per se, a lot of you would have seen this slide before. Once again, it just highlights we've got these gypsum stacks, which is a result of phosphoric acid production process plant that you see in the right hand top right hand corner there. This was a plant run by Cecil using phosphate hard rock slurry fed from a mine called Foscor next door and using sulfuric acid and heat, two key ingredients in in the production of phosphoric acid. You then create a gypsum residue. The rears were not an economic quantity in the hard rock phosphate, but when you produce a phosphate slurry, you produce it through a concentration process. The rears elements were actually upgraded in the phosphate slurry, and then this was used to feed the the phosphoric acid plant.

13:20 And the the in the production of phosphoric acid, you produce a gypsum residue, and the gypsum residue was then deposited on these two stacks you see in the photograph on the slide currently. And the rear was deported into the the phosphate gypsum and are nine economic quantities in the phosphate sorry, in the phosphor gypsum that we see stacks that you see in the photograph there. Very importantly, because we we are only dealing with a crack chemical product on these stacks because when you produce phosphoric acid, as I mentioned, you've got two key ingredients, sulfuric acid and heat. These are two key ingredients that all RARE EARTHS projects have to add to chemical consonant I'm sorry, RARE EARTH concentrates to crack it before there can be downstream beneficiation.

14:07 At Peloborua, we sit with cracked chemical stacks, and that's how our optics is as low as you can see on the slide here. So at 33.86 US dollars per kg, we believe it's the lowest optics for separated red oxides in the in the world, certainly in the Western world, and we believe even lower than than China. And at so you see our risk basket value per kg, and this is driving the project economics that we've got a very, very high EBITDA margin. And with the low capital intensity of only $295,000,000 of CapEx, you can see why our payback on this project is so quick compared to a lot of other projects being developed out there in the world. Also, very importantly, very, very low in radioactive radioactive elements, thorium and uranium.

14:56 And as a result, we don't have any radioactive activity issues with our product, and we we we currently fall under the current radioactive license that sits over the site. This is not an issue for the project whatsoever. Going back to where we sit on the rare sort of value chain, You know, you're upstream, you've got mining, you've got you've got you gotta produce a rare earth concentrate, then you have to crack it. And as with mining project, you've got drill and blast of a hard rock, you've got you've got to transport the the your ore into a process plant where you've got crushing, you've got milling, you've got flotation, reagents, before you produce a rare earth concentrate.

15:42 Then you have to crack your rare earth concentrate before you can go into further downstream, which is separation. Then you the next stage is producing oxide to go into a metal and a metal plant, which will turn it into metal and alloy, and that's predominantly done in China right now, and then you go to magnet manufacture. Pedobolo is unique because we sit with a crack chemical stack, so so we go straight from this crack chemical stack into a separation technique and to produce the four magnet areas that we're targeting, and this has massive advantages and capital and operating costs versus traditional rare earth mining development project. If you look at our resource update that we announced just last week as well, once again, it's confirmed the grade is marginally higher at point four four, not point four three as our preliminary resource updates. So it's slightly higher grade, once again confirming the the tonnage of 34,400,000 tons, giving us just over a fourteen year life for this project.

16:47 And once again, very importantly, our RARE EARTHS elements are confirmed in the range that we've initially put out and and that and, basically, we've moved a large portion of the resource from inferred into M and I, and we'll be doing one last round of drilling to take the the bit of inferred that's not in M and I into the M and I category. Very importantly, we've we've appointed Ottoman in The US as one of the global experts in phosphoryl gypsum stacks to design our dry our dry stacking for the the definitive feasibility study. And early indications are that our bulk density at depth should be a lot lower when we do our final range of drilling, and this could give us an opportunity to increase the total resource tonnage. So that will be in our final resource update. So there's a potential oversight increase in our resource here, which would also obviously be a further positive for the project.

17:48 At Peribor, the reason why our project economics or one of the key reasons why our project economics are so good apart from the fact that we don't have all the mining cost upfront is that we're using this RP that with KTEC in Florida, they are technology partner in Florida. They use continuous ion exchange and continuous ion chromatography. These guys were the inventors of continuous ion exchange, is which well used in the uranium process plants around the world as and that's widely, as I said, widely deployed in many, many uranium mining process plants around the world. And importantly, they also then went and developed continuous ion chromatography, which is separating red oxides in a very far simpler method than you use the traditional method of solvent extraction, continuous solvent extraction, which requires literally hundreds of mix of settlers.

18:42 It's the de facto way the Chinese use it, but we are very confident because the the KTEC process has been applied to many industries, the CRC process, including food, mining, chemical industries globally, and and it's also been used for the extraction of uranium and thorium on a large scale, which is, as you know, you you you experience in RAVE projects, and this has been successfully applied to extracting uranium thorium out of phospho gypsum on a large scale. So we're very confident in this technology. It's also interesting to note that there's a a technology in Norway that's been applied to separate roof oxides and is also using continuous ion chromatography.

19:30 So we are very confident that this process is the right process to to use at Paloborra. From the project economics, it's far greener. And as I said, it's from the operating point of view, very, very, very efficient way of extracting these rivers, and it's safe and simple to run. And importantly, it's been applied in larger scale than what we require at EARTHS LIMITED. You know, get asked questions often, well, can but, you know, what you've done at bench and lab scale at KTEC, can this be applied commercially well? In fact, the RP is already applied commercially in larger size than what we require. So once again, this answers a quick question I hope for for some investors. Just once again, footprinting, why RAINBOW is a good project when you compare it to ironic clay deposits.

20:19 When we first came across Pelleboa, you know, we very quickly realized that at point 4% TREO, this was sixty ten times higher grade than ironic clay deposits. If you look at those nickel deposits, our footprints are there, you can see what I mean. And because I need an impersodinium, it's so high, 29% of our risk basket and the grade is so high in terms of point four four, you can see our parts per million of parts per million of NDPR are still six times better than your next best ironclad project on that list, and that's probably one of the best ironclad projects in the world right now is the Makuchi And why we footprint this against undeclared deposits because they have very low mining costs. You don't have the the drill blast of hard rock crushing that you would have for typical hard rock mining project. Undeclared deposits have very, very low mining cost, and this is why we footprint ourselves against those projects and you can see how well the board comes out on that metric.

21:20 Going back to the opportunities for RAINBOW, This technology we've developed the front end, which is a co patent between KTEC and RAINBOW as well as the back end, which is patented by KTEC and we've got the rights to use this patent. You can see that there are other opportunities out there in the world to apply this technology. We signed the master agreement with ACP in Morocco, the largest producer of phosphate products in the world, and and we've already embarked on a test week program with that as well as an MOU, the major chemical company in South Africa, to extract brewers from their phosphoric acid stream, but they're using a different process to to produce phosphoric acid. They're using nitric acid.

22:07 And with that, it's a slightly different opportunity, and we've been testing sample from this project in South Africa as well. And we're also investigating global opportunities. I've signed two NDAs with two other hard rock phosphate

22:25 sources of phosphoric acid production in in another continent around the world, and we are investigating these opportunities as we speak. Very importantly, from a ESG point of view, the Parabol board projects are probably one of the greenest projects in the world. It's a brownfield site, so that gives us a big tick. It's on an existing chemical site,

22:47 and, basically, a majority of the environmental permits are in place and only require updating. We are going to be rehabilitating the phosphoryl gypsum stacks that you saw saw in the photograph earlier. First of all, we are cleaning up the acid water associated with the stacks and using the new neutralized acid water in a closed circuit in our process plant. And, basically, we're redepositing a clean benign gypsum on the new stack site

23:13 just to the south of the photograph that you can see. And, basically, this will be a line stack site. The current stacks are in line because sixty years ago, you never had to line stacks anywhere in the world for that matter, never mind just in South Africa. So these stack the new stacks out will be lime, and we will then also be probably selling some of this clean gypsum into the South African gypsum market. There's an opportunity there, which is a further big credit for us. We as I said, we are using recycled water for the process plant from current acid water, which is risk

23:48 to the current environment. And, basically, one of the key reagents we're using, which is sulfuric acid in our process, is coming from a waste stream next door. The palatable mining company has a new phosphoric sorry, new sulfuric acid plant, and it produces excess sulfuric acid, and we'll be able to take a large part of that excess sulfuric acid from next door and use it in our process plant. So once again, we're using a a waste stream, which is another big credit.

24:19 We will be reusing some of the infrastructure there, which is another bonus for the project. We don't have to rebuild all the infrastructure from scratch and as another big plus. And very importantly, we're also looking at renewable power, wind, and solar power that we will be using to supply a lot of the the power at Parabola. We will be using base load from

24:42 Eskom, but a large part of our power will be renewed, and we'll have Eskom as backup. So very, very important for the green credentials of this project. Also, hugely beneficial to the to the local community, and we'll be obviously employing well people from the local community that worked in the original phosphoric acid plant at when they were trenched some some some six or seven years ago, and we will be hoping to reemploy lots of those skills that are still available in the area.

25:16 Just to reiterate, in the fourth quarter of twenty twenty two, we published a very, very strong PEA. We added to the technical team, which is very key because this is all about process technology and chemical processing technology, which we have within the RAINBOW team. We announced that we would be coming out with a resource update in the in the first quarter of twenty twenty three, which we've done. And I can also be very pleased to announce that work on our pilot plant has commenced at Mintek in in South Africa,

25:50 and that fabrication has started to be up and running in this quarter with our pilot plant. And we've also taken the decision for the back end of the pilot plant to be run-in in Florida in The US. That's the CRC and the CIX and CRC separation. There's a natural split in our process where we produce a mixture of sulfate, which is a solid, very similar for a roof project that produces a mixture of carbonate or a mixture of

26:18 salt or a mixture of oxide for that matter, and then they they ship that somewhere else for for further separation. We've got a natural break where we produce a mixture of sulfate with this technology at at Palabora, and then we're gonna use it to be separated in the KTEC facility in Lakeland. The CRC and the CIX units have all have already been purchased and are on-site.

26:44 And, basically, the the they're currently putting that that back end process and part of process plant together in in America. We've also commissioned the Metc Engineering, who did a very good job in the PEA, to to start the definitive feasibility study. And and very importantly, we've also commissioned Ottoman, as I mentioned earlier, the global gypsum stack experts to to be they'll be designing the new stacks that will be deposit will be have to build at Balaburra.

27:21 And, of course, we're looking at ongoing opportunities around the world in different jurisdictions, different continents to leverage our technology and to give RAINBOW a far longer life than just a fourteen year paddleboarder, but a far longer project diversification and project life.

27:39 So just to finish off, I believe that if you look at forecast pricing for rears, which are very, strong with almost all forecasts out there forecasting rising pricing for rears. With Pelleborre's forecast to come into production, we're looking at over a billion dollars NPV,

28:01 IRR of over 44%. We're producing in that stage plus minus $310,000,000 of of EBITDA per annum, and we'll have a EBITDA margin of 82% 83%. Sorry. So once again, very, very strong project economics, which I believe make this a compelling story. Thanks very much for your time in listening to this presentation.

28:24 George, that's great. And thank you very much indeed for your presentation this morning. If I may just jump back in then, what I'll do is I'll just bring up your camera there as well. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab that's 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. George, we did receive a number of pre submitted questions ahead of today's event. As you

28:56 can see there in the Q and A tab, we have also received a number of questions throughout today's 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 Tara, if I may hand over to you now just to chair the Q and A session with George, and then I'll pick up from you at the end. Thank you. Thank you, Jake. George, as Jake has mentioned, there's a number of pre submitted questions which I'll run through now.

29:22 So the first one is, it's understood that the pilot plant test work will be split across two sites for efficiency purposes, the front end in Palabora and the back end at KTEC in Florida. Do you think this is likely to be a long term outcome for for commercial production?

29:38 Well, firstly, you know, what drove us splitting the site was timing. We wanted to to make sure our pilot plant sat on schedule, and we realized that it might be a slight delay if we had to assemble the pilot plant in Florida, test it, run it, then disassemble it, ship it to South Africa, reassemble it, and install it in Mintech. So in

30:03 in order to save time and to get out our continuous pilot plant process complete within the timelines that we wanted, it a decision was made to split it, and we think it's been a very, very good decision. It also gives us flexibility because we can with this natural split in the process, we realize that it gives us flexibility whether we wanna do it in one continuous plant in South Africa or we wanna produce, as I've mentioned, a mixture of sulfate in South Africa and then produce separated roof oxides in The US, which would give us significant US presence. So at this stage, it

30:41 gives RAINBOW flexibility. We haven't decided which way we wanna go yet, but as I said, it gives us RAINBOW a very interesting flexibility. And for that matter, we could also look at doing this back end in The EU or The UK for that matter. So we think it's a very exciting development in in RAINBOW that we we've now realized that we've got this very important flexibility, and it's very positive in my view.

31:06 Thank you. And that that leads us to the next question. When will you commence production?

31:12 As is on our presentation, the forecast timeline at the moment is that we've entered the definitive feasibility study stage on on track. We're hoping to have that complete at the end of twenty twenty three, the first quarter of twenty twenty four, which and at the same time, we have started parallel debt financing talks with debt financiers.

31:36 We're not we know this project will be bankable, so we don't have to wait for the outcome of a bankable feasibility study to see if we've got a good project before we start negotiations with debt financiers. We do need this in parallel, and we would hope to have the project financed round about the third quarter of twenty twenty four to start production and a break run-in the last quarter of twenty twenty four to complete the plant at the end of twenty five, first quarter of twenty six, and to be in production in 2026. And that's as per the the chart earlier in the presentation. Thank you.

32:14 Next question is, how is the patent for the production process progressing?

32:18 Is the intellectual property of this process now legally secure?

32:22 So the well, the back end, as you know, is already legally secure. The front end, which we're patenting with KTEC, the draft patent is is complete. It's just been reviewed, and it's ready for submission shortly. And I must stress that once the patent is submitted, you have permanent or year protection, worldwide protection. Because the patent process can take anywhere from twelve to two years twelve months to two years. So as I said but the important thing is once you lodge your patent, you have your protection immediately. And that that process is almost complete, and it will be submitted very, very shortly.

33:05 Thank you. How much potential do the dried phosphogypsum stacks in Morocco have for rare earth extractions? I can't answer that question at this stage. Know it has got huge potential, but what I can tell you is that we have initial results out from some sample that we're busy testing, And indications are that it's got very good values of dispersion in Turban to add to the NDPR in the basket at in Morocco. And the starting grade is similar to Kalaburra, which is exciting for us. And we're now just awaiting for the reach results. We we did reach testing on on the sample from Morocco. Once these reach results are out, we will be publishing something for the market.

33:59 Thank you. Next question, which you did cover in the presentation, but what is the time scale for delivery of the pilot plant this year, and when do you anticipate completion of the DFS? Well, as I mentioned, the pilot plant will be up and running in this quarter, and we're gonna be running the pilot plant for between three and four months. And that will produce the separated earth oxides that we'll use for mark marketing purposes and for design purposes for the final plant design. And the the definitive feasibility study has commenced already, and as I mentioned, it's forecast completion end of this year, first quarter of twenty twenty four. Another pretty submitted question. What what will happen to the waste once the phosphate gypsum has been processed?

34:50 The waste will be redeposited on clean bananas stacks, and we will then be selling this gypsum into the South African gypsum market for the life of the project, and it'll be an ongoing resource or revenue stream to the project because to sell all the gypsum at Kalaboa, it would take about forty years in South Africa. So because the South African market's only about 1,200,000 tons per annum, and we would only capture between three and five hundred thousand tons per annum of that market. Understood. And then this leads us to some of the last pre submitted questions. Will the power and electricity issues affecting South Africa impact commission commissioning of the pilot plant and operations?

35:39 No. It won't impact the pilot plant. The pilot plant's got two back two two generators as standby to make sure the pilot plant does not get interrupted. But very importantly, for the project itself, as I said, we we will have wind and solar power supplying a large part of the power with Eskom as as as your base load. And we're only forecasting the production in 2026. We know the South African government is has approved a large number of independent power producer projects over the last six months have been approved, and we would expect a large number of these projects will be in production by the time 2026 comes about. So a huge amount of of pressure The office comes by green power through windows.

36:34 And so we don't think it will be an issue for the project. And, also, this is another very big power project. The project only requires about 12 megawatts of power running at at and peak peak loads, only 16 megawatts. Base loads, about 12 megawatts. So not a huge power consumer compared to a typical hard rock mining project. Thank you very much. There's a few questions that have come in over the course of the presentation, which I'll just take a look through now. One of which is when when do you expect to have separated rare earth samples available? As I said, we we're only running the pilot plant for three to four months. So towards the end so, basically, it'll be in the third quarter of this year, we'll have a separated rare oxides.

37:24 The pilot plant will be up and running, as I said, during this quarter, but it takes a while for the whole process from start to finish. And and, certainly, in the third quarter, we will have separated rare oxides for marketing and, as I said, and marketing purposes and for the whole world to well, for analyst visits and fund managers to come and visit the site as well. Thank you. Are you anticipating material changes to the flow sheet once the pilot plant is in operation? No. The flow sheet, you know, is very robust, so we don't see any significant changes to the flow sheet. Thank you. Do you expect the pilot plant to be profitable?

38:12 It's not that kind of pilot plant. I mean, it it it's we're not doing a bulk pilot plant here, which we're trying to run to generate revenue from. The pilot plant is of a significant size in terms of for a continuous pilot plant to prove the technology, and that's what it's there for. It's not gonna be a revenue generator for RAINBOW. Understood. There's a couple of questions on on Burundi and and the update at Gakkara, which I which you did cover in the presentation, but there that's been flagged in the in the in the queues here. Yeah. As as I mentioned, Burundi is on before in my previous presentations is on care and maintenance. We were approached by the government end of November.

39:00 They gave us a proposal. We gave them a counter proposal at the end of January this this year, and we've been requested to attend the further negotiations with the Brundi government at the end of April. So we are in ongoing negotiations with the government to settle the inquiry. Thank you, George. I think the the other question then Sorry. Just to add, I might add that in terms of scale is about 10 times the size or in terms of revenue and profitability that Burundi will ever be. So that's why our focus is on. Thank you very much. I think that answers most of the questions that have come through.

39:46 George, Tara, if I may just jump back in there. Thank you very much indeed for being so generous of your time then addressing all of those questions that came in from investors this morning. And 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 on the investor meet company platform. But George, just really before redirecting those on the call to provide you 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 would be great. Yeah. Just I think as I've mentioned in our last presentation, you know, we are continuing to meet our timelines that I've given to the market over the last sort of twelve months.

40:35 And and that's very important for investors. Once again, very, very strong PEA, and we expect the definitive feasibility study to produce even stronger numbers. And so I think it's a very compelling case in terms of the rare projects out there that are on development. RAINBOW is a project that is gonna go into production, and I think that makes it very strategic for for for other people looking at this market out there. You know, they are we are in talks with alliance partners to be a strategic source of separated oxides. And I think, as I said, because the people we're talking to are confident in RAINBOW will be in production, which is why we haven't used to talk.

41:21 So I think it makes a compelling investment case for investors. Thank you very much. George, that's great. And thank you once again for updating investors this morning. Could I please ask investors not to close this session as you'll now be automatically redirected for the opportunity to provide your feedback in order the management team can better understand your views and expectations? This may take a few moments to complete, but I'm sure will be greatly valued by the company. On behalf of the management team of RAINBOW RARE EARTHS LIMITED, we would like to thank you for attending today's presentation. That now concludes today's session. So good morning to you all. Thank you very much, and have a good day.