Zinnwald Lithium (LSE:ZNWD) — Investor Presentation

0:01 Good morning, and welcome to the ZINNWALD LITHIUM PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. 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. Before we begin, I would like to submit the following poll. And I would now like to hand you over to

0:32 CEO, Anton Duplessi. Good morning to you. Thanks, Alex, and good morning to everyone online. It's a great opportunity to talk a little bit about ZINNWALD LITHIUM and also to give an update on on the well, to provide the update that we published this morning as as an RNX. So we'll start with the presentation and then questions afterwards. So if I run through this. So, I mean, overall, just to to kind of zoom out and and and give a a view of what ZINNWALD is, we're a UK listed company, but our project is the 100% owned ZINNWALD LITHIUM project, which is in the former East Germany.

1:19 And we believe that there are a number of things that make us an attractive proposition. One, the project itself, we believe, very attractive. It's an integrated lithium project aimed at making a battery grade lithium hydroxide product. We put out a PEA late in 2022 that showed 12,000 tonnes per annum of lithium hydroxide production at a very attractive cost, just over $6,000 per tonne. The location is excellent. It's right in the heart of the German EV manufacturing area, automotive industry, it's also in the heart of the German chemical industry. And that's very important because lithium production, especially when you go into a battery grade material, is as much a chemical business as it is a mining business. So to have access to those skills is extremely important.

2:17 Overall, what we're working on is designing a very sustainable project. So there's some aspects of our project that are very beneficial from this perspective. So it's not water intensive. It's not a the process is relatively benign. It's water leach process. And the way we've designed the project is to minimize waste as much as possible. So those are all key points. And then we have very strong support. So we've done three equity fundraisers since we created the company late in October 2020, all of which have been strongly supported by our key shareholders. And then in the latest one, we introduced a new strategic shareholder, AMG, and I'll talk about that in just a moment.

3:07 So just on the market, and I won't dwell on this too long. But I mean, fundamentally, demand for lithium is growing strongly. As most of you will probably know, that's driven by the ongoing switch to electric vehicles. That's an extremely strong secular driver that underpins the industry. So despite the fact that there are recessionary headwinds in the broader global economy and European economy, that demand growth in the lithium sector is continuing, and we expect to continue. And that underpins pricing at robust levels. And I'll talk a little bit about pricing in the context of our project a little bit further. But important to note that even though lithium pricing has come off the very high levels earlier in the year, late last year, they are still well above the levels that we were assuming in our economic analysis and certainly in the PA that we published late last year. So we are not worried about the price environment.

4:11 We think it's very strong. And in fact, the signs are that it is improving again as various inventory levels, etcetera, that depressed pricing on a short term basis have worked their way through the system. Now that's the global sector. From a European sector perspective, important to note that Europe currently has no domestic production of lithium. There are a few projects that are in development, and we're one of those. But even if all of those projects come online, it still will be insufficient production locally to come anywhere close to meeting local demand. Against that backdrop, there have been a number of actions taken by the EU and by countries within Europe that we see stimulating that demand, one of which is the European Critical Raw Materials Act, which is targeting domestic capacity of up to 10% of EU's annual consumption of critical materials, generally, of which lithium is one. And then we've seen a number of countries putting in place bans of internal combustion engine vehicles by 2030 or 2035.

5:23 Again, extremely important from demand perspective for lithium. So just coming back to our shareholder register and the changes that have happened there. So I mentioned earlier, we've introduced a new industrial shareholder. We did that by way of a broader capital raise, which we completed late in March of this year, during which we raised almost GBP 19,000,000, so around EUR 20,000,000. And the anchor investor in that was AMG Critical Materials, which is a European listed, fairly large industrial company with a focus on critical materials generally, but has a large and important lithium business themselves.

6:09 So they're operating a spodumene operation in Brazil, and they're in the process of building a lithium hydroxide refinery in Germany, not very far from our own project. And really, one of the things they want to be is a leader in the European lithium space, and we're very happy to be part of that effort. We took their investment in us, and it's a 25% investment as being a real endorsement of the strengths of our project. And also, it provides the funds to advance the project to to the next level, which is a which is a key factor as we go through the process of of derisking the project. And then also because they're an industry player in the space, they bring sector expertise and experience to the company that we find very, very valuable. So the head of their lithium unit, doctor Stefan Scherer, has joined our board. He has decades of of experience in the lithium industry, and that's already extremely valuable to us and will be in the future. I think the other key point to make here is as the company has evolved, our shareholder register has evolved with it. Obviously, a big part of that was bringing AMG on board. But more generally, our European shareholding has increased.

7:20 And in fact, non UK shareholders now hold the majority of our share register. The other key shareholders on our register were very supportive of the raise came in as part of that fundraising as well. So just to dive into the project a little bit more. It's located in the former East Germany. It's about 35 ks south of Dresden. It's on the Czech German border. And while we control the licenses on the German side, our ore body is part of a much bigger ore body, and there is, in fact, another project, ZINNWALD, on the other side. But on a combined basis, this is a very large ore body. The project will be effectively brownfield. There was a very large sort of underground tin mine in the area, and I'll talk a little bit about kind of the benefits that, that brings in just a moment. And as I mentioned earlier, the plan is to go all the way to a battery grade lithium hydroxide, and we will aim to produce well, under the PEA, we talked about producing 12,000 tonnes per annum.

8:29 There may be scope to adjust it upwards. And again, I'll speak about that when I talk about our most recent update. The resource is very large and supports a very long life lifetime, which is very important for a for a mining project, allows you to capture several cycles, which is key in terms of driving driving return on investment.

8:51 So so, again, as I mentioned, a lot of infrastructure in in this area. So it has been a mining district for actually hundreds of years. But most recently, there was a large underground tin mine located near the town of Altenberg that was operated until until the early nineties, and that infrastructure remains. There's mine access through an old drainage tunnel that was put in the '90s. There's also rail, power, gas in the region. And I think the next slide just shows us in a slightly different way. So this is a long section with the Czech German border over on the right.

9:39 Our ore body, you can see ZINNWALD deposit over there on the right. And then this gray line in the middle, if you can see my mouse pointer, is the existing tunnel I was just referring to. And then this area here is the old shaft system of the old tin mine and then the various fairly large underground cabins, etcetera, here. So the plan for our project is to access the ore body from underneath, so really extend that tunnel and then do the mining effectively from underground. Now it's quite unusual to have to be developing an underground mine and to have a ready made access, ready made ventilation, ready made drainage. So this is a is a tremendous advantage to us. It's also an advantage in terms of the material flow. So a, the material flow will be downward, so downslope, which is much more energy efficient, significantly more energy efficient. And it also means that the material transfer is happening 300 meters below surface, so much less disruption at surface. So no large trucks, etcetera, running on on on small roads, etcetera. And then, again, I'll talk a little bit about our other exploration licenses, but one of them is located right here near the access point of the tunnel. So again, having that existing infrastructure is tremendously advantageous to us as a project.

11:05 The flow sheet. So we've developed this flow sheet over time. Because there was an old mine on-site, we were able to access the ore body and take a very large bulk sample, and that's really what we've used to to come up with this flow sheet. We're constantly refining it, and there's lot of work going on on this. But just a few points to make. So we're trying to minimize waste in all aspects of the project.

11:35 The sort of the sidestream from the mining and concentration process is a fairly coarse ground, coarse sand that is susceptible to dry stacking. It could also potentially be used as a construction aggregate, so potentially isn't a waste at all. And then the calcination water leaching process, important to note that this is a water leach, not an acid leach. So again, much more benign than some other processes in the lithium space. And then if everything happens on-site, as we anticipate, the leach rate is that you can go back underground as a backfill. So again, minimizing waste. The other point to make is in addition to the lithium hydroxide, we'll be making some very valuable byproducts.

12:22 Key amongst that is the SOP. So SOP is potassium sulfate. That's a high quality fertilizer. And just given that's typically made for the European market anyway in Ukraine and Russia, you can imagine what the conflict there has done to pricing in that space. So that is actually a very valuable byproduct, and it's also a large market. So our tonnage, while it is significant, is not nearly enough to impact pricing or dynamics in in that market, so perfect from a byproduct point of view. This just summarizes sort of the key financial metrics out of the preliminary economic assessment we published in September of last year. And really, I think just the key points to make on that is post tax NPV of around $1,000,000,000 post tax IRR of around 29%.

13:14 And the core assumption here was the lithium hydroxide price assumption, dollars 22,500. That is still, we believe, a very conservative long term price assumption, especially given some of the projections we're seeing out there. So we think it's well supported. If you look at where lithium pricing is at the moment, the most relevant price for us would be the lithium contract price. It's that is not a very easy price to see in the market, but some players do give some sense of that. So for example, SQM, which is a big Chilean lithium producer, was talking about their average price for Q1 of this year as being over $50,000 So just to put that $22,500 in perspective, we believe it's a conservative number.

14:03 What are our near term plans? And this kind of gets into the the the update that we that we've just put out. So our core work stream at the moment because everything drives off this is the infill drill program that we're currently running at ZINNWALD, and that is a huge piece of work. And the purpose of it, ultimately, is to provide an updated mineral resource estimate, which underpins the feasibility study that we intend putting out. So is the bulk of our activity right now. But alongside that, we're we're doing various net test work programs. We're also working on our EIA and other environmental permitting. And this feeds into everything we're doing, sort of aiming at at the bankable feasibility study very early in in in 2024.

15:00 So just to talk about about the drill program, given it it is such a a major part of what we're doing. So and and also a major part of our of our expenditure. So the the the purpose of the program so why is it such a such a big focus for us? So in large part, it's to improve data density to support the detailed mine level planning and other work streams. But another key reason is to test the potential to include the Albite grants in an in an upgraded mineral resource estimate or MRE. So just to explain that a little bit. In broad terms, the ore body consists of two main ore types, the quartz mica grisons and the albite granites. Essentially, the quartz mica grison is the high grade material that was included in the historic resource.

15:50 And the albite granite is a grisonized granite sort of in a halo around that, that contains ZINNWALD LITHIUM mineralization and was previously ignored. However, this material is laterally and vertically very extensive. And while being lower grade, it contains a potentially significant volume of lithium. So as we kind of look at the current and expected price environment for lithium, it's very different to what prevailed when the previous resource estimate was made. So that was 2019. And we believe that, that shift in the industry makes it appropriate to consider the material. And I'll just explain that a little bit more. So if you just look over on the right here, this is the map of essentially showing the drill program we're running.

16:44 The green dots are the program that was done 2012 to 2017. The red dots are planned sorry, the green dots are the current program. The black dots are the previous program. The red dots are planned and the gray the sort of much more historic holes. And we put out in the release this morning to a cross section and a long section. I'll just use the cross section as a way of illustrating kind of what I mean when I talk about this sort of change in concept. So just go to the next slide. And this is the AA cross section on that map. So the first slide is what was included in the historic resource. I just the quartz micah grison.

17:36 As I step through so I'll just do that slowly. As I step through, you see the cross section that shows our current interpretation based on the drilling we've done thus far. So the light pink area is the albite granite, so here, which we believe to be a very large, bulky and homogenous structure. So our expectation is what this will allow is much larger scale, high productivity mining methods rather than the sort of the more selective mining methods that were incorporated in the PEA. And that will ultimately allow a much higher lithium output than was previously considered. It also allows a few other refinements, so easier backfill. And also because it's larger scale and more effective, it also means a smaller carbon footprint per lithium unit produced. So again, these are all things that we feel is best for delivering an optimized economic result.

18:35 And the potential size of the resource really supports a long life. So I mean, one of the other sort of things that have come out of the drill program thus far is is that the mineralization remains open to the West and the South towards towards the national boundary and then in particular to the to the Southeast. So, I mean, just to give you a sense of the intensity of this this program, to date, we've drilled 56 holes, and half of those holes we've drilled since the beginning of April. So we've really stepped up the pace after we raised the the financing. We're now running six rigs on-site, which would be certainly one of the bigger drill programs in Europe at the moment. And that's a tremendous amount of work, but it's giving us a tremendous amount of very useful and detailed information that's feeding into the bankable feasibility study as we advance that.

19:40 As we look a little bit sort of longer term in terms of potential upside from the project, all the work that we're doing at the moment is focused on the core ZINNWALD project, and that remains the priority number one. But we also own a number of exploration licenses in the area. And by in the area, I mean within 15 kilometers of our core license. So there's the Altenberg license, which essentially controls the step out from our core ZINNWALD license. There's a Zadistorf license, which we picked up a couple of years ago. It has a historic lithium resource on it at the inferred level. And then there's the Falconheim license, which was the one that is essentially very close to where our sort of access tunnel comes out, and we've started an exploration drill program on that. The initial results from that look very, very promising.

20:33 And you would have seen that in the release that we put out this morning. We've also been able to obtain some old core from previous tool campaigns that were run-in the '60s and '70s. We've re assayed that because previously it wasn't assayed for lithium, it was assayed for tin and tungsten. So we've re assayed that for lithium and the results from that were extremely encouraging. The priority for us, as I say, remains as ZINNWALD license for now, but we are doing some work on the other licenses. In terms of sustainability in ESG, this is a core item for us. We are very focused on producing a clean project or developing a clean project.

21:21 There is a huge focus on CO2 content per lithium unit, and that's absolutely right and correct. But there are other areas that are important as well, and that's relationships with local communities. And we continue to have an outreach program to the local community. We held a town hall in the village of Zinvold at the end of May that was very well attended. And we continue to make efforts in that regard. And then in terms of other areas, we're focused on water intensity, sort of the waste streams and having a minimum impact on the environment. Being an underground mine is very helpful from that perspective relative to some of other operations, which are open pit, therefore, a much bigger impact on the local environment. But being underground, being able to store waste underground is an extremely key thing for us.

22:18 Overall time line, as I mentioned, so MRE later later this year. So we hope to to finish our our drill program in the next couple of months. As I say, we've got six rigs turning at the moment. So the intention in having that that level of activity, which is which is, you know, a a a key challenge to manage is is is to try and get that that drill work done as quickly as possible. That will then feed into a revised mineral resource statement resource estimate. As I mentioned, we anticipate that being based on what we've seen so far, we think that that will would be a significant up grade from where we are now. And that then feeds into the bankable feasibility study in 2024.

23:10 So alongside that, a lot of work around permitting, EIA. We we launched our scoping meeting with the authorities very recently. So that process is is ongoing, and then alongside that, engagement. Ultimate objective is to be in production end of twenty twenty six, early twenty twenty seven. That's a that's a time frame we've had for some time, and we we we are still trying to to hit that. So that is very the very broad brush time frame. And then just to sort of end off, this is, you know, just a recap of some of the things that we think are the key investment case for us. So strong underlying secular demand.

23:57 It will be impacted by the overall economic picture, but we don't think it will materially change that picture. Robust economics of the project. So PEA showed some very good numbers, and we hope that the what show what gets shown in the BFS is similarly strong. It's a scalable project. As I mentioned, the hope is that, you know, as we demonstrate a a larger resource, those sort of bulk mining techniques that we'll be able to show a a larger scale project. And scale is important for these things. It's important in terms of relevance to off takers. It's important in terms of keeping unit costs down. And it's important in terms of meeting Europe's need for the material.

24:47 Sustainable project, we're doing everything we can to make it as sustainable as possible. Byproducts, we've got valuable byproducts that, again, goes directly to the bottom line and improves the economics. Strong support. So again, at an EU level, EU Critical Raw Materials Act is sign of where the EU wants to go. There's also been other places in the world that are really getting behind the transitions. You've seen the inflation reduction act in The US. That's another indication. And then within the state of Saxony, you know, we've we've had a very positive response there. It's it's a it's a state that really understands the importance of mining. Mining has a long tradition within the state.

25:34 And they're taking active steps to encourage mining. Ideal location, I've talked about this before, but they are within 150 ks, three planned gigafactories. And we are, as I mentioned, in the heart of the German chemical industry. And then finally, having a partner of the caliber of AMG LITHIUM as a large and involved shareholder is a real endorsement of the project that, again, will provide us with a lot of support as we take the project through to the next level. So I think with that, I'd like to conclude the sort of formal presentation part of the meeting, and then maybe we go to questions. Anton, thank you very much indeed for your presentation. And if I may bring your camera back up. Ladies and gentlemen, please continue to submit your questions using the Q and A tab situated on the right hand corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard.

26:39 Anton, as you can see on the q and a tab, we have received a number of pre submitted questions as well as live questions throughout today's meeting. If I may hand back to you and kindly ask you to read out the questions and give responses where appropriate to do so, and I'll pick up from you at the end. Thank you. Sure. So just running through these. So how would you summarize the German government's attitude towards establishing lithium production in the country? And have you any feedback as to how they feel about production at ZINNWALD in particular? So probably the most relevant government entity for us is the government of the state of Saxony, which is a state in Germany where we're located. They've been very supportive. And in fact, not so long ago, published a quite a detailed document, which they called the raw material strategy, and that focused very much on the importance of critical materials. And as I mentioned before, mining has a long history in this state. So short answer, yes, very supportive.

27:38 Another question, are the company constantly looking at the final product they want to produce in line with evolution within the battery technology sector? Yes, of course. So I mean the focus has been on lithium hydroxide. So just to sort of take a little bit of a step back. In very sort of broad brush terms in the lithium industry, there two main lithium compounds. One is is lithium hydroxide that's used in in nickel based battery chemistries, which benefit from high energy density, better cold weather performance, etcetera. And that that to date has been what we understand the European battery sector is focused on. So, you know, we have conversations with with the ultimate end users of this product, and and thus far, that's what what they tell us is is what they're looking for. So that that's driven the focus on on lithium hydroxide.

28:33 But by the same token, the flow sheet we've developed is a flexible one. It is perfectly capable. In fact, we we it goes via a a lithium carbonate route. So we are equally capable of of producing a lithium carbonate. So we will, of course, keep an eye on the end market, but you have to sort of pick things. But as I mentioned, the flow sheet is somewhat flexible. Question three, is there any way you can use AMG's lithium processing refinery in some of your processes? Yes. Most likely, that would be possible. We didn't make this a stipulation or they didn't make this a stipulation of investment investment in us, but they are working we are working closely with them, and we'll we'll examine that if it if it if it makes sense. There would be, you know, certainly some logic to doing that in some ways, but, you know, we we have to work through that in in in a lot more detail.

29:32 What are the main developments that the company and investors should look out for for the coming months? You know, I think we're running this intensive drill program. So as I mentioned, we've we've already drilled 56 holes. We probably have another around 27 to go on that program. All of that feeds into an updated MRE. So we expect to have that out later in the year. Alongside that, we're doing work on sort of various test work programs. So as I mentioned, the feed material, if we incorporate those Albert granites that I spoke of, that feed material is slightly different. So we're doing test work just to confirm that our flow sheet works as we expect it to on that material.

30:21 So there will be some results from that coming out. We're also working on permitting and various other work streams. What are your current expectations with regard to overall timing of the project? How does this match with your expectations with regard to demand development in Europe? So we're as I mentioned earlier, we're we're aiming for end of twenty six, early twenty seven as a as a production date, and we'll we'll we're very focused on on trying to meet that. And our view in terms of how that matches with with European demand is is I think it fits very, very closely. So we see demand accelerating post-twenty twenty five and through into the end of the decade. Now I mean, there are a few complicating factors to this. So if you're aware, The U. S.

31:08 Passed the Inflation Reduction Act, and that has had a significant impact on the industry. So it it creates a lot of very material benefits for people moving production to The US and also for, you know, various mining operations, etcetera, starting up in The US. So that has perhaps shifted timing slightly to benefit The US. So even some European players, I suspect, will look at prioritizing their US operations. But Europe has to and will become a very important part of the of the demand picture. So we we think maybe that's shifted up by a year or two from from what perhaps people thought a few years ago. But, you know, we think that probably matches even better with our with our production profile.

31:59 So, you know, we think it we think it's it's it's very close. Mean, the the other point to make just on the on the IRA is one one of the concessions that the EU got out of The US was that material sort of critical battery materials that are mined in the EU will be treated as domestic from the perspective domestic US from the perspective of access to subsidies, etcetera. So our material remains as valuable for that reason, if not more so. Question six, lithium prices have come off recent highs. Can you comment on this? How does this impact the economics of your project? So obviously, a lot of comments in the press around various price indices, mainly in China, which show lithium pricing coming well off the very high levels of over $80,000 a tonne, down to sort of $30,000 a tonne, etcetera. I think a few points to make on that. Those are spot prices, which are not that indicative of the overall state of the industry. So the vast bulk of lithium is traded on long term contracts, and those are very difficult prices to see through opaque. But as I mentioned earlier, if you look at some of the few players that do disclose an approximation of those pricing of their pricing, you know, SQM putting out an average price for their q 'one of of over $50,000, I think that gives you a very strong sense of of of how strong strong the market

33:29 actually is. And actually, we've seen also the price indices in China moving up. So we're not really worried about that at all. And as I mentioned again, when I went through the economics, dollars 22,500 a tonne was the price we were assuming in PEA, which had a very robust project. That is still well below where prices are at the moment, and we think is conservative long term assumption. Question seven, the EU has recently announced the CRMA, and The U. S. Has introduced IRA. What is the significance of such events? I think it just I've spoken about this a fair bit, I don't want to dwell on this. I think it just goes to the commitment of these sort of big political entities to the transition and a recognition that they have to encourage the whole supply chain of which lithium and critical materials is one.

34:17 Okay.

34:23 So please, can you comment on the MOU recently signed between the Prime Minister of Saxony and the Prime Minister of Czech. This points towards closer cooperation between ZINNWALD and EMH, especially given that the ore body is shared. Look, we're mining in a border area. I mean, I think the overall takeaway from that MOU is that both countries with the state of Saxony and country of Czech are very much behind these projects. Because we are so close together, of course, we will have to cooperate in certain areas. You know, we do, you know, consult with the guys across the board and and and where it makes sense for us to cooperate, we do. Do you have also have access to mine tin?

35:12 If not, is there value in doing so? So, yes, there is tin in our ore body. Historically, we have not included it in significant in any significant way in our flow sheet. We continue to evaluate that and to see whether it makes sense. These things are all a trade off. And in order to access the TIN, you have to make certain other concessions within your flow sheet. But again, it's something we constantly look at and see whether it makes sense to do from an overall economic standpoint. When would you be looking at offtake arrangements? Have you had any feedback from the industry to date? Look, we have constant conversations with the industry. I mean, philosophically, on offtake, I think it's very dangerous to sign offtake arrangements too early. Because, really, why do you want offtake? It's it's in order to ultimately demonstrate a more robust project and support the ultimate financing of the project.

36:17 And the earlier stage you enter into those agreements, the the less valuable they are from that perspective. So an offtaker will not commit themselves to a particularly hard commitment too early in a in a in a project's life. But if you sign one of those offtakes, you, the project, are are committing the material, so it limits your own optionality. So the actual tangible benefit that you get for signing an offtake too early is is quite low relative to to to what you're giving up. So we've we've raised the funds we need to get through the next phase of our project. And so signing an offtake now, we think, would actually be not not the right thing to do, but we constantly have those discussions and and and see what makes sense. But not having signed the offtake is a key attraction of of the project for us in our view.

37:23 Does ZINNWALD LITHIUM support the maintenance of the mining tradition in the Ore Mountains? I think, yes, it does. I mean, there's a big so our project office is located in in Freiburg. Freiburg University has a big geology and and and mining faculty. I think having what will be a large modern operation very close by will be extremely valuable to to that faculty to have access to that for it to provide a a potential career path for people training it in those places. And a lot of our staff, you know, on on-site at the moment, you know, have have are drawn from the local area. You know, we're we're trained trained locally. So I think that that will be a key a key aspect of the project. And so a key benefit for us, that tradition and understanding of mining and what is involved in mining.

38:21 Are you in contact with major automotive manufacturers? Yes. We speak to to the various automotive manufacturers. There's talk question how the mind boggles that there may be two lithium production plants side by side on each side of the border. Do you see any synergies with specific project that they may toll treat? It's involved. We haven't had that discussion. You know, we would always look at things that that make sense. So it's always a very complex it's always a very complex thing that multiple parties, etcetera. So, you know, really not too much to say on that. What are your thoughts on the competition from solid state batteries? So solid state batteries actually are not really a competition from a lithium perspective. In fact, the lithium usage in a solid state battery would be more than in sort of battery chemistries used at the moment. So I think that transition will come. It has certain benefits in terms of charge times, durability, etcetera. There's still some technical challenges, I think, that the industry is working on solving. But ultimately, the lithium component of those batteries is actually greater than what we see at the moment.

39:46 How do you think about skyrocketing electricity prices in Germany? They're the highest electricity prices in the world, and the nuclear shut down will worsen the situation. Look, I mean, one has to take a view of kind of longer term pricing for key inputs. Obviously, energy pricing in Europe generally is very much impacted by the conflict in Ukraine. I think it's everyone's expectation and hope that, that will moderate in time and that we will see a moderation in energy costs. And I think we've already seen that on the gas side as Europe has shifted markedly towards more renewables, but also imported LNG gas. You saw an LNG terminal coming up in Germany in record time, all of which has meant that gas future prices have come off significantly, and we're seeing everywhere energy prices coming down.

40:47 Anton, that's great. Thank you for being so generous with your time, and I believe you have addressed all the questions that came from investors today. And, of course, the company will review all questions submitted today, and we'll publish those responses on the investor meet company platform. But before we direct investors to provide you with their feedback, which I know is particularly important to you and the company, Anton, could I please ask you for a few closing comments? Well, thanks, Alex. And look, just great to have been on, great to have provided a little bit more context on the results with the operational update we put out today and just keen for us to get back to work and hopefully update you all with developments very soon.

41:34 Anton, thank you once again for updating investors today. Could I please ask investors not to close this session as you will now be automatically redirected to provide your feedback in order that the Board 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 the management team of ZINNWALD LITHIUM PLC, we would like to thank you for attending today's presentation. That concludes today's meeting. Good morning to you all.