Rainbow Rare Earths (LSE:RBW) — Investor Presentation

0:01 Morning, and welcome to the RAINBOW RARE EARTHS LIMITED investor presentation. Situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question received in the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to George Bennett, CEO. Good morning to you, sir.

0:33 Good morning to all the viewers and investors. I'd just like to take you through my RAINBOW presentation. And as mentioned, there will be question time at the end of the presentation. So here's the normal disclaimer, and now we can move on. Thank you.

0:55 The Chinese are, as we know, dominant in this market, and this was a strategy adopted many, many years ago. In fact, as early as 1992, as you can see from that quote, the Chinese said, The Middle East have oil, we've got RARE's. And they set out a strategy to dominate this market, which they've done successfully and which is what's creating so much hype in the Western world today. At the moment, the supply demand fundamentals for RAINBOW RARE's are very, very robust and very strong, mainly driven by two key areas of green technology in the world that being wind turbine green power and electric vehicles. Electric vehicle demand and wind power demand are driving the demand for permanent magnets, and permanent magnets require two key real earth elements, neodymium and prasidinium, to a certain amount of desprosium and terbium.

1:55 At the moment, demand for these two sources of energy being green wind turbine power and electric vehicles are creating a deficit in neodymium, persodium, which as you can see on the chart below, is expected to grow to 20,000, 2,030 to be somewhere around 160,000 tons of global REO magnet demand.

2:22 So as I said, the macro looks very good, and RAINBOW is positioned to take advantage of this through a strong portfolio of assets that we're busy building. We've currently got the Perlebora project in South Africa, which I'll talk about later, where we're going to be recovering separated real oxides from phosphogypsum stacks that sit in a mining town in South Africa. We also have a hard rock mining project in Burundi where we've been successfully trial mining in Burundi for a number of years now and producing one of the highest grade real earth concentrates in the world just using a simple gravity separation and shaking tables. And then we've also got we've just announced the development of our flow sheet for Para Bora, which we'll be looking to patent.

3:09 And this is opening up other opportunities for RAINBOW, and we signed one of these opportunities last month with an m n with an MOU that that I announced in the RNS at the beginning of June. Also key is that I think we've got one of the most experienced teams in in in for any junior miner in terms of being able to deliver these projects successfully to our shareholders. My myself and Dave Dodd, my technical director, we were both the the the key guys in MDM Engineering, which is a company I founded in 2006. And Dave had a long history in the previous MDM FerroMan, which where he was a partner. And together, Dave and I have have developed over 22 minutees and and built in and developed over 22 minutees and processing plants around Africa and around the world, and we've done over 40 feasibility studies as MDM engineering.

4:06 And Dave, in his own career, has has developed and designed and developed over 100 process plants for mines around the continent and around the globe and completed over 100 feasibility studies. So it's very key that we've got guys who have designed and built mines and processed plants successfully. And we also have a chairman in the form of Adonis Prullis, who has a huge background in mining, been successful chairman of one of the largest diamond pioneer, one of the largest diamond mining companies in the world as well as numerous other mining projects around the world. And Pete Gardner is a very experienced CFO with being on the board of many listed mining companies in Africa. So I think we've got the right team that can deliver for our shareholders.

4:53 Going forward, just to talk about Burundi quickly. Burundi is, as I said, it's we've got 39 square kilometers in Burundi of mining license area. We've got seven historical Belgian mines within our mining license area, and we've got 57 targets. We've been trial mining there since 2017, and we've successfully produced well over 2,500 tons of of of concentrate, which we've shipped to China successfully. This concentrate, as I mentioned, is grades between 5456% grade TREO. It's probably the second or third highest grade concentrates in the world today. And as I said, we've got 19.5% NDPR in our RARE EARTHS basket in Burundi, which makes up about 85% of the value of the basket.

5:44 We've also got very low uranium and thorium content in this asset, which which makes it a very green and benign project in terms of our tailings. And we successfully shipped, as I say, to China for the last few years, where we consistently get below what they call the Becquerel units in China, 10 Becquerel units. We ship about 6.7, 6.8 bekkahol units successfully into China. So we don't have any of the uranium and thorium problems lots of development projects have around the world. We've basically been able to take this operation from when I got involved pre 2020. It was largely a large scale mining using some some equipment to remove the overburden to a more formalized mining operation, as you can see in the photograph below in terms of latest operations.

6:38 And we were basically cash flow positive with more conventional mining method. We were successfully mining at about 12.5% to 13.5% grade TREO in this deposit. And with the Burundi government stopped operations to renegotiate the mining convention, which we are busy doing with the Burundi government. And as I mentioned, it wasn't only the RAINBOW operations that stopped in Burundi. They stopped all mining operations in Burundi, and none of these mining operations have been given the restart while the government renegotiates mining conventions with the mining companies. We were in Burundi in end of April, May, where we submitted a proposal. We're just waiting for the Burundi government to get back to us, but we are seeing some movements with our operation in Burundi, and I look forward to restarting operations hopefully quite soon.

7:29 The the basically, the flagship operation or or project is the is the Palobor tailings project in South Africa. Here, we are able to secure an asset with which has got 40,000,000 tons or plus 38 to 40,000,000 tons of gypsum residue, which is the result of hard rock mining or phosphate rock next door by Foscol. They produced a phosphate slurry, concentrated slurry, which was then pumped next door to to Sasol. You had a phosphoric acid production plant. This feedstock for the phosphoric acid production plant was then submitted to lots of heat and sulfuric acid, which is used in the process. And this basically led to a residue being deposited at this phosphate at this phosphoric acid plant to the tune of, as I said, plusminus 38,000,000 tonnes. Now the grade of the rare earths in the phosphate hard rock being mined next door by Foscor in itself is not economically viable because it's very low grade. But because of concentration process done by Foscor and then the phosphoric acid production process, we find in our revenue stacks that we've got a grade of TREO running about point 43%.

8:47 Now point 43%, when you compare this grade to ionic clay liquid deposits around the world and what they mine in China, it's roughly between six and ten times higher grade than ironic clay deposit. The reason why I compared to ironic clay deposits because we don't have any mining cost associated with Peraboa. And ironic clay deposits, as the name suggests, it's it's this is clay. It's free dig material, or they they they sluice it into a process plant where they extract the arrears. It's a very similar process to what RAINBOW will be doing at Paloborra. And when you compare to hard rock deposits, our grade compares even to some of the hard rock deposits being developed out there. We're very close to grade of some hard rock deposits. But very importantly, our neodymium and prasidinium content is very, very high compared to any ironic clay deposit that we see around the world, and these are where your key elements.

9:43 These two key elements is where most of your value comes from. Thus, we have a very significant credit in dysprosium and terbium. Those four key rare earth elements make up about 95% of the value of our basket, and this is what attracted me to securing this asset some eighteen odd months ago, just over eighteen months ago now. Sorry, just to go back. As I mentioned, the Palobor project is a result of historic initial flotation and concentration by Foscor followed by the processing that Cecil did to create phosphoric acid. This plant was mothballed in 2014 and it does not operate at the moment. But RAINBOW has got all the all the infrastructure available to it for when we construct our chemical processing facility at at Boswell Phosphates, who are partners in this. We have 70% of the project in Boswell Phosphates or a 30% partner in the project.

10:50 There's no need for hard rock mining, crushing and milling, which is obviously very, very significant from a capital point of view as well as an OpEx point of view in any mining operation. And the fact that, as I mentioned earlier, the rare earth elements have already been cracked and it's in the chemical form in the stacks because of the sulfuric acid and the heat applied in phosphoric acid process, we have what's known as our rare earth sits in the crack form. If you compare this on the left hand side of that slide to a typical rare earth projects, you can see all the few steps that RAINBOW has in order to deliver mixed roof carbonates, and then we've got now hard rock mining and and hauling. We've got we'll be what's known as hydraulically mining this.

11:36 In other words, washing the the gypsum residue into a channel, and we're looking at a mining cost of or or or a washing cost of less than a dollar a ton. With hard rock mining and and hauling, you're looking at anywhere between $15.16 dollars a ton to $35 a ton for a typical hard rock project. We've got no run of mine stockpile. We've got no crushing and milling, which is very energy intensive. We've got no multistage flotation using reagents, and we've got no uranium and thorium circuits to remove uranium and thorium out of our

12:11 rare source. At Palobao, you'll see we've got very low levels of uranium and thorium. We don't have to do anything to extract uranium and thorium because they're totally below the benchmarks that are required in terms of what the world looks for in terms of beating. We don't have to produce a concentrate and we've got no cracking which uses, as I've mentioned, sulfuric acid and heat. We don't have to do any of those steps at Balaburra. Basically, we start with re earth leaching, and we've got no uranium and thorium removal, as I mentioned. And we then go to produce a mix with carbonate, which is where typical re earth project stops. At RAINBOW, we've also signed a deal with KTEC Technologies in America where we're going go one step further, which is to produce separated rare earth oxides.

13:03 The important factor about producing separated rare earth oxides is that we will get close to 85 plus percent of the value of a separated red oxides. The difference in the value from a published red oxide price being the Chinese VAT that one has to take into account when selling separated red oxides into the Chinese market. Ultimately, our market we're hoping for will be in the West, and then we'll be able to get a 100% of the separated real real earth oxide price. But as you look at projects that stop at a mixed earth carbonate or mixed earth oxide, they typically only receive about 55% of the value. So we'll get 30% more by going that one step further, which is all the way through to high purity separated with oxides looking at about 99.6% to 99.9% purity.

13:54 The way we do this is that we as I mentioned before, we partnered with KTEC Technologies in America and Florida. And these guys have the patents and the developers of continuous ion exchange and continuous ion chromatography. Now just to look at the flow sheet development, we made an announcement two weeks ago, which is that we've successfully produced a flow sheet that we know will successfully extract these rueers in economic form out of Paloborah. The reason why I stress this is that we always knew we could extract the rueers out of the gypsum, but it was just to make sure we could get the right recoveries to make our flow sheet economic. And we've achieved this as I announced two weeks ago with an RNS on RAINBOW. But just to give you the history, pre-1940s, rail separation wasn't much of a business in the world and there was very little use for us. During the Second World War in the Manhattan Project, it was realized that if you use ionic sorry, if you use batch ion exchange, you can separate uranium and thorium, which was used in the atomic bombs in 1945.

15:06 And so they developed batch ion exchange to remove these two earth elements from from from the the mineral that they were using as a source of these rare earth elements. Then in the 1950s, continuous solvent extraction was developed as a more economic way of separating rare earth elements from pesticides or monazite or an ironic liquid for that matter, ironic clay, I should say, for that matter. And and so so so continuous solvent extraction became the the de facto way of separating real elements. But then in the 1980s, the original founders of KTEC Technologies were the original inventors of continuous ion exchange and continuous ion chromatography.

15:56 Now continuous ion exchange is used throughout the world by uranium processing plants. And at MDM, Dave and I designed and bought two uranium plants, which are in operation today, and we did numerous uranium studies for various companies around the world. And these uranium studies all use continuous ion exchange as a way of separating uranium out of the ore body that we are processing. And as I said, the KT guys then took this one further where they developed continuous ion chromatography, which is used to identify and separate individual rare earth elements in very, very few processes. That's the secret compared to continuous solvent extraction, continuous ion exchange and continuous ion chromatography.

16:41 We can separate our four rare earth oxides that we're chasing, be neodymium, presidinium, dysprosium and terbium in literally nine to 12 steps compared to about 1,800 mixer settler steps that you use with traditional solvent extraction. I've covered some of this in the previous slide, but as you can see here, we've successfully developed a process flow sheet to allow our arrears to be recovered from these gypsum stacks. We know that our recovery is now sitting at between 6570%, which is way above most of the arrears overall recovery. Most of the projects don't achieve that kind of recovery, but because we start with this chemical form already, we've been able to achieve these very high recoveries.

17:32 As you can see from the photograph on the right there, there's a commercially produced continuous ion exchange and we also had commercially produced continuous ion chromatography units being built. These units are used successfully around the world in various industries, as I've mentioned, uranium, the mining industry and biotech and chemical industries, the food industries and very importantly, commercially up to capacities of 700 cubes per hour. And we are going to be requiring a far smaller unit for the Parabola plant. So there's nothing new that we are gonna be using. And that's another key point about the RNS announcement I made two weeks ago is that each individual part of the process that we've developed, they've been used successfully in different applications.

18:26 They are all off the shelf reagents that are available from a number of companies, including the resin on the iron exchange. There are three companies that commercially produce the resin that we'll be using on our iron exchange columns, and there's nothing bespoke major and nothing that hasn't been manufactured before. So we're very excited. The the way we can patent our technologies because we've been able to use them in in a unique in a unique way in terms of putting them together with calculating the correct flows that we need to put through these various pieces of equipment, which enable us to get the recoveries that we've been able to achieve. There's a photograph of a continuous ion exchange pilot plant and continuous ion chromatography pilot plant that's been built by KTEC and delivered to large phosphate producer around the world to successfully extract the two targeted elements they were looking for, which is uranium and thorium. And this continuous pilot plant was a bulk pilot plant.

19:31 So as I mentioned before, large parts of our process have been applied commercially. In fact, every single part of our process had been applied commercially in some form or another. But very importantly, it's been trialed on bulk scale phosphoryl gypsum produced around somewhere in the world and that leads us to believe that our project has largely been derisked. We will be further derisking our flow sheet by building well, doing a continuous lab scale piloting at KTEC in Florida, and we'll be building a bulk piloting plant at Pillabo in South Africa to continuously bulk pilot process flow sheet to further derisk the flow sheet before we go and build a large scale commercial plant in South Africa.

20:21 This is very key. We're not going to make a mistake. A very well known and large rare earth producer in The USA, They went and spent $1,600,000,000 on commercial scale separation plant without piloting it, and it led to the liquidation of that company. It's been restarted now, but they've changed it that they were busy changing that process plant in The USA. So we're well aware of the risk of between Dave and I piloting something without doing it through bulk scale piloting, and we will be doing it ourselves at Periborua.

21:05 So just to finish off, there's a photograph of these two gypsum stacks. And in the top right hand corner, you can see the the old phosphoric acid production plant and all the infrastructure there is basically made available to RAINBOW. And where I mean it, we've got rail sidings, we've got large high voltage switchyard at the foot of the one gypsum stack. We've got machine shops, workshops, laboratories, all made available to RAINBOW. And this normally forms a large part of the CapEx of any project. So we do believe we will be a very, very low CapEx project for the size of production we're going to be generating compared to other development projects in the rare space out there in the world as well as a very, very low OpEx we'll be able to generate for that will be coming out in our study.

21:57 We've also got this project sits in the middle of a mining town, as I mentioned, called Balaboa, and this mining town has has all sorts of skills available because there are three op there are three operating mines still producing in this area, and we've got OEM supplies in the mining town literally five minutes from our front gate. So it's we've also got the exclusive rights to this flow sheet that we've with KTEC and will be patenting, and that will actually lead to the development of other opportunities, one which I've announced already last month, where we signed an MOU for another opportunity to use this technology that we've developed.

22:46 And with that, I'd like to thank you and hand over to some questions that we've received. George, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just using the q and a tab situated on the top right hand corner of your screen. I'd also like to remind you that 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 received a number of pre submitted questions from investors, and I wanted to start off the q and a session with these. The first one reads as follows. Why is the PFS slash DFS taking so long? Are there any more delays probable? Well, I'd like to refute that question from the point of view that we we only got our hands on this project eighteen months ago. That was we started work on Pellipore in January 2021.

23:32 We're now halfway through June, July 2022, and we've been able to successfully develop a very, very comprehensive chemical flow sheet, which was successfully just extract these rheus from the phosphorylipsum stacks. In terms of delay, we're talking we've been delayed by by a few months. That's all. And one of the reasons for the delay was that we saw when we're doing our recirculating leach and and solution and generating pregnant leach solution that our recoveries would have been impacted. So we had to optimize this flow sheet, which we've done for the last few months, and we've been able to optimize this flow sheet very successfully and be able to get our overall recoveries, as I said earlier, above 65%, which is far higher than most rare earth projects around the world. If you go look in the overall recoveries that they publish, we are certainly a lot higher than those.

24:31 So even though it's been a delay of a few months, it's been a very, very meaningful well, it's been a very good delay in terms of being able to get a very strong economic result from our flow sheet. Also, I'd like to point out that we secured this RARE EARTHS project, as I mentioned. We signed the agreement in December 2020 and January 2021. We started working on it. So in eighteen months, we've gone a long way. We've already started part of our pre fees sorry, our PEA and technical study, but we we put it on hold while we were finalizing and optimizing our flow sheet to make sure we could reduce our asset consumption and get improved recoveries, which, as I've mentioned, we've successfully achieved. But if this was a hard rock roof project, eighteen months down the line, you'd probably still be completing stream sediment sampling, trenching, as I said, initial soil sampling, and doing a sort of aeromagnetic flow over your property that you secured.

25:36 So we are most greenfield projects starting, as I say, as a greenfield project to get to where you are would take a number of years, and we've got there in eighteen months. Thank you, George. That's great. The next question is around funding and asks, are we funded until the end of the year? We funded past the end of the year. I'd like to add, in fact, well past the end of the year, and we will fund it through to delivering a prefeasibility study as well. We are as I said, we've kicked off our well, we've restarted our PEA, which we put on hold while we were just finalizing our flow sheet earlier this year. That has now started now that we finalized our flow sheet. And within the next week or two, I'll give the market a definitive time line of when we will finish our PEA as well as when we'll finish a prefeasibility study, and we fund it through to a prefeasibility study as well.

26:35 Perfect. Thank you very much. I'm just turning to the next question, which asks, how are we going to fund our South African gypsum stack projects? Well, on the completion of our feasibility studies, we expect to be in the lowest cost quartile as a rare earth producer, if not one of the lowest cost producers of rare earth, separated rare earth oxides in the market. And for any mining project, if you're in the lowest cost quartile, you can only get funding. But with that, we are in open discussions with The UK and US governments because of the strategic nature of RARE's around the world at the moment. We will be talking to the EU as well, and they've all expressed interest in some kind of funding of of rare earth projects.

27:23 We know that. We also have started discussions with a couple of OEMs who are looking for strategic suppliers of rare earths for for permanent magnets that go into their vehicles, and we'll continue those discussions. And just normal funding banks, as I said, you know, the DFC in America through TechNet are a shareholder in RAINBOW, and DFC has a long history of funding mining projects in Africa, and we've already started to go to having talks with the DFC in Washington some eighteen months to two years ago. So we are looking at a number of options. And of course, we'll look to our equity shareholders, but we will certainly be looking to have a large portion of debt in the project with a balance through our strong equity shareholder base.

28:12 Thank you very much, George. And how do you expect the rise in energy prices to impact the business once the extraction process starts? Well, it's actually a benefit to RAINBOW, to be honest with you, because the rising in energy prices is not a major factor for us in terms of of our OpEx because because we don't have any crushing, no milling, and no flotation required to produce a concentrate. And because our chemical our phospho gypsum stacks are already in chemical form. In other words, they've had sulfuric acid and heat applied to them to crack them, we we start two thirds down a flow sheet. So our energy requirements to go to from from that stage to produce separated real earth oxides of very low in comparison to normal mining process plants. So we're basically a low consumer of energy. So even though there will be a there are price rises, it won't have a major impact on us. And the rising energy prices obviously create more demand for wind power turbines as well as electric vehicles because the prices of diesel and petrol, as you know, has gone through the roof. So if anything that's creating more demand for electric vehicles, there's more green energy required, so that will mean more requirement for permanent magnets, which is a positive.

29:36 Thanks very much. Could other metals be extracted from mine tailings using the KTEC process? For example, precious metals, nickel, or copper. So the gypsum stakes at Palawar don't have any other valuable minerals in them that we can extract. It's just the rare earths that are worth extracting. But we believe this technology could be used to explore possibly some some other metals extraction out of tailings and also definitely to look at using it to apply to phosphoric acid streams that are that are currently being produced around the world and also other waste streams. So as I mentioned earlier, we've signed an MOU with another opportunity with a large chemical producer in South Africa, where we know the area is present in their live phosphoric acid stream, And we have already received a sample from this chemical producer, and we're sending it for testing, and we'll be releasing those results quite soon of the RARE EARTH value in that phosphoric acid stream. So, yes, we do see other opportunities, and we are actively pursuing other opportunities around the world.

30:49 Thanks for providing a bit more color there. And just the final presubmitted question here. Is is RAINBOW considering setting up new KTEC licensing agreements involving countries beyond the existing South Southern Africa development community. Yes. We are. We've we've already agreed to some other territories around the world, and we expect to agree to some further territories around the world. Perfect. Thank you very much. That actually concludes the presubmitted questions. As you can see, we received questions throughout today's presentation, and thank you to all the investors for submitting those. George, could I just ask you to read out the questions and give responses to where it is appropriate to do so, and then I'll pick up from you at the end. Sure.

31:37 At the moment, I'm not seeing any pre submit any questions coming from the audience. Alessandra? Hi. So if George, if you click on the right hand side under the q under q and a. Ah, yes. There we go. Perfect. Thank you. Sorry about that. Okay.

32:04 Okay. The first question is there are reports of significant rail transport problems in South Africa. Are these relevant to your operations? To go it's a good question, and the answer is no. And the the beauty about rail separation is that we're not talking about massive quantities of of product that we will be shipping here. So in terms of of of shipping product, at our current production rate, we expect to produce circa 2,000 tons of neodymium, prasidinium separated earth oxides per annum, plus about 65 tons of dispersion and about 15 tons of 16 tons of terbium. So you're talking about 2,080 tons per annum divided by 12.

32:52 That's 173 tons a month. That is easily handled by road transport if rail is a problem in South Africa. So that's not we're not a bulk commodity. For if we're a manganese producer, an iron ore producer, a coal producer, it would be significant.

33:10 Next one is all we're independent of Eskom for electricity. At the moment, we're not planning on that. We've got a large power reticulation available to the project. It's already in place. Our voltage switcher are already in place. And if we see and as I said, power is not a major consumer in our process because we don't do all those other processes, mining process plants need like milling and crushing, etcetera. So if we see the need, we'll supplement this with some solar power. We're in a very, very high solar intensity region in South Africa, up near the top of South Africa. So the solar irradiation will be very high if we decide to put a solar plant at Paloborah. No date for Paloborah production. Barriers to production are low according to your presentation.

34:00 So what's the timeline? Well, in answer to this question, as I mentioned, will be within the next two weeks, we'll be publishing the timeline for our initial PEAscoping study. And in that time line, I'll give the market an update on when we expect to go into production. But I can't I don't wanna make a rod for my back, but I can tell you we are regarded as a near time line production company, and that will become apparent once we make that announcement in a couple of weeks' time. And once again, no dates for Burundi resumption. As I mentioned, we were in negotiations with the Burundi government in April and May this year, where we submitted a proposal, so we're waiting to hear. And as soon as we get a confirmation from the government, we will answer, and we will inform the market about that.

34:59 I might just add that Burundi and the Life of RAINBOW is not significant. The Parabola project will deliver about eight to 10 times the revenue that Burundi will ever be able to deliver on a commercial scale basis. So our focus is on Paloborra to get that into production as quickly as possible. Burundi, when it comes back into production, be, as I mentioned, trial mining phase to continue to develop Burundi to commercial stage, but that will be from internal resources generated by the trial mining in Burundi. So Burundi will be a cherry on the top. But Palabur and other opportunity we've announced are far more significant than Burundi will ever be. I'm just looking at the next question. Sorry.

35:53 I'm just trying to scroll up on it.

35:58 We've also been asked, are we anticipating major costs in the restart of Burundi? I can tell the market quite confidently that our stockpile in Burundi, which is some four twenty odd tonnes of reared concentrate, is worth circa 1,600,000 to $2,000,000 at current prices, and that is more than enough to fund the restart of the operations in Burundi, that this will not be a drain on any of our current bank balance sitting in London.

36:34 Been asked how I can describe more on how the the continuous ion exchange process works and how it's able to work in the continuous process. I'm not a technical guy for this for this to answer this guy's question, but I can say is that continuous ion exchange, as I say, is used successfully in uranium industries around the world. And what we have is we have a carousel which is loaded with resin and on and which we feed solution that goes through through the resin in this carousel. And according to a certain time settings on this carousel, this carousel clicks and each cell then gets fed through by a diff at a different place through a different solution.

37:23 And at the right time, this resin is in this the pregnant leach solution is in stripped off the resin, and it goes down to continuous ion chromatography. But for I can put you in touch with my technical director if you want a more sort of technical answer for myself. There's also been has been any progress on the Zimbabwe exploration? We looked at the Zimbabwe grind that we picked, and we looked at some initial reports. And we realized that the Zimbabwe exploration, we didn't think it would yield any significant results.

38:09 There's no real evidence of any economic grade of roof deposits in Zimbabwe, so we've we've actually relinquished those licenses. We've got we've got a far better opportunity to pro fast track the Parabola project plus the other project we've now signed up in South Africa with a major chemical company. We want to focus on those, to be honest with you, and not Zimbabwe, to be distracted from Zimbabwe, which we didn't believe would yield significant results. And another question, hope to sell to the West. What does that mean? I would like to think this was a given. To answer this guy's question, right now, Mountain Pass in America, the largest producer of earth concentrated in the world outside of China, sells to China.

39:01 LIMITED still sells some of their production to Chinese magnet manufacturers and the rest goes to Japanese magnet manufacturers. Until the West can develop its supply chain to go all the way through to magnet production, be it in Europe, in North America, all producers of concentrate, carbonate and separate earth oxides like RAINBOW, initially, we'll have to sell to China. We need the waste to get behind this strategy of having independent supply chain outside of China, but that independent supply chain is many, many years away. And we hope to eventually be a, as I say, a supplier to this independent supply chain outside of China.

39:51 But what the market doesn't realize, it's still many years away. And in the short term, we'll be in production before that supply chain is fully developed. So we might be lucky. There might be somebody that we can sell some of our product to in the West, but the balance of the product will still have to go to China until this capacity is built up the West. As I mentioned, even Mountain Pass right now is selling to China and will continue to sell to China until that capacity is developed in America and elsewhere in the West. George George, thank you. I think you've actually managed to address all those questions from investors. And, of course, the company will review all questions submitted today, and we'll publish those responses on the investor me company platform.

40:38 But just before redirecting investors to provide you with their feedback, which is particularly important to yourself and the company, George, could I just ask you for a few closing comments? Just one last question here is would would we consider processing guacara production through Paloborah? And we we would definitely consider doing this because we will our real earth concentrate we produce at Kukar is very, very high grade concentrate, as I've mentioned, and we will certainly look at shipping it down to South Africa and and cracking it there in in our plant. So, you know, it is something in consideration, and we will certainly look at it. And we have a good relationship with Teekay, our offtake partner, and this would just be a matter of negotiation with them. Thank you.

41:33 George, thank you very much for updating investors today. Can I please ask investors not to close the session as you now be automatically redirected 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, and I'm sure will be greatly valued by the company. On behalf of I'd like to close off can I just close off, please? I'm just saying that that with RAINBOW, we have near term production with our Palabolla project. We have already secured another opportunity for our process flow sheet that we're looking to patent with KTEC. And we have the high grade Burundi project at Kukara, which, as I've mentioned, is a cherry on the top of rainbow. So we have project diversification, and we have country diversification, and we're still pursuing other opportunities to create even more diversification in RAINBOW. And I think we're one of the only rare earth development projects in the world that has country diversification and project diversification. And as I've mentioned, we'd be looking to create even more project and country diversification in the near term. So thank you for your time, and thank you for listening to to me and the the RAINBOW story.

42:48 Thank you very much, George. And on behalf of the management team of RAINBOW RARE EARTHS LIMITED, we'd like to thank you for attending today's presentation, and good morning to you all. Thank you very much.