Bradda Head Lithium (LSE:BHL) — 2024 AGM

0:01 Good morning, ladies and gentlemen, and welcome to the BRADDA HEAD LITHIUM twenty twenty four Annual General Meeting. Throughout this recorded meeting, attendees will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab. Just situated on the right hand corner of your screen, simply type in your questions at any time and press send. I'd now like to hand over to Ian Stalker, Knight Executive Chairman. Good morning. Thank you very much. As you correctly indicate, the meeting will start immediately. And just to introduce myself, I am Ian Stocker. And for the purposes of this meeting, I will act as chairman. We have two shareholders with us, Patrick and Stuart, representing my two other shareholders, I understand. So welcome to you both. Thanks for making the time and effort. In order to get this meeting started, need a quorum. A quorum is present, and therefore, we're able to convene this meeting correctly.

0:52 The notice convening the meeting has been in everyone's hands for the required twenty one days. And with your approval, I should take it as read. Before I start the official briefing, it's just a safety aspect. If in the event of a fire alarm, please make your way to the nearest fire exit as signposted in this particular room. Hopefully, that would not be necessary, but just in case. And could I ask everyone to make sure their mobile phones are off so that there's no other challenges to us as we go forward? Introducing those present with me today sitting next to me. On the directors first, opposite me, I have Denham Eck, who's present, and I've got Ewen Jenkins, also present here. And on the phone, we have Alec Borelli. So almost 90% of us are here in one way or another.

1:47 And we also have Piot, who is our CFO, sitting adjacent to me and directly opposite is Katie Erick, our company secretary. So we have everyone who's needed to be in attendance here. The format for today's meeting will be as follows. We'll have a presentation providing a brief overview of the couple's activities. Then we have a period for questions, and then after which, we'll move on to the resolutions as they appear on the agenda. So hopefully, that is clear, and I'll move on quickly to the presentation. I don't imagine it would take very long, but just to be if there's any questions, I'll take them at the end. Just want to point out before I start on the picture you see before you. One is a nice the lower one is a a photograph of the sun rising in Arizona and where we are. It just was a particularly nice shot we wanted to put in. But the upper one is much more informative.

2:42 These are what's known as the pegmatites. There are spodumene crystals in the pegmatites we have in our San Domingo project. And by use of that little pen there, you can see that they're fairly large crystals. These pens are what? Six inches roughly in terms of length, five, six inches. So we'll well, it says there's six centimeters in actual fact. I just wanted to point that out. It's got lithium present in those crystals. And as I get through the presentation, the reason for the size will become obvious why I wanted to mention it. Good oak. So moving on, there is a disclaimer, of course, just to make sure that if anything I say tends to be a little bit over promotional, then we apologize for it. Don't hold us to account. BRADDA, in terms of the introduction, BRADDA is quite different from many lithium explorers, and that we're in The USA.

3:35 And with the recent election in The USA, in many ways, that's become more important because America does want its own lithium, and we want to be part of that delivery of lithium for the American market. We have a very committed board and management, the gentleman I've introduced you to, as well as those in the phone, and, of course, Jim Mellon, who's a member of our board team, and the management too, Joey, Piot, and Katie. Between us all, we hold probably more than 20% of the shares with significant number that lets you know that they are, like every other shareholder, motivated to see a success of this company. We like America because without any added nice words, can tell you that we are close to excellent infrastructure, which you would expect in The States.

4:25 We've got the three types of lithium mineralization, pegmatites, clays, and brines that I will talk about. And the advantage of that is in the event one of those lithium type mineralization is harder to manage, then we move obviously to the other one. But it does give us a level of reduced geological risk. We sit in a very nice space. There's been a lot of activity by some of the bigger companies even in this depressed market such as ExxonMobil, who have got the oil brains in their their eyesight. Rio Tinto are moving, as you know, even over in Serbia. So they are busy with things, Equinor and some of the other big companies. So lithium will change.

5:11 We've already been through two waves of the lithium cycle, and it will change. And we want to be ready for it. And so the whole purpose of this presentation is to let people know who haven't had previously, because as I presented the company, it's to let everyone know that the focus is be ready so that when the next race come, we maximize the advantage that we've got. In doing that, it has meant that we are focused on production. Without production, of course, we keep having to go to the market and saying, can I bring us more money? And in this challenging time, it's not so easy to ask for that, particularly when the share price is as low as it is because that means excessive dilution. We don't have to do that. With Peoit working with us, we've been very strategic and sensible in the way we've utilized our money, and we had the added advantage early on of bringing in the money from LRC anyway.

6:03 But we are in a good position, but at some stage, we need to get to production, and that's what our getting ourselves ready for has been primed in the last few months and will also occur in the next few months. We are well located throughout The USA. You can see us there in a range of countries from counties rather, Pennsylvania to the Albright in Texas, the San Dimitripe pigmentites in Arizona, and in Nevada, have the Brines. And, of course, city mixtures over in the Western Side is the big state of California where a lot of the car manufacturing plants are. And that really just refers to the fact that you can see how close we sit to the big operations down there in the South Of California.

6:49 And the other thing we bring up in this slide is you will be aware, I'm sure, because most people will follow the press in this sort of area of your business, and that is that the American government has been issuing grants to some of the bigger companies who are further advanced to get them to be in a position where they can produce lithium for the lithium market. So there is a desire that's demonstrated by the money that's been made available, for the Americans to get their own lithium. They want to have a battery that says made in The USA rather than made in China. And that's been money that's given to Thacker Pass and to Rhyolite Ridge, for example. And they are projects very similar to our own with the exception of we have pegmatites. Oops.

7:36 And just talking of pegmatites, that's our land package sitting there in Arizona. The yellow boxes are are licensed, are areas where we've been doing some work, and where we think there's the opportunity of putting some resources together. But overall, there's a strike length there of about 24 square kilometers in terms of total package. We've been deliberate in putting that together. We have not encouraged anyone to come in and be a noisy neighbor with us, and we've concentrated you can see the drill holes in terms of the black circle, the little dot in the middle. You can see where we've concentrated our attention, and we have had significant success. We've got the right signature package of tantalum, rubidium, and cesium. More interestingly, in recent days, we had just about 13,000 meters drilled in the last two programs and some good intercepts that you've seen.

8:27 At the right time, we think we can convert these intercepts after the next drilling program into a resource, and that resource will form, excuse me, the basis of the production profile that we'd see going forward. The guys have been busy on the various steps that are in there. Excuse me. And we have got the belief that there is more upside to come. I should stop doing that. More upside to come in terms of more drilling, and we have been working on a package to get a drilling program underway in the early part of twenty twenty five on the basis that the market will change positively because there's actually no point in doing excessive amount of work if the market is still in the doldrums. Just do enough to be ready, and that's been the way we've approached it. The reason I bring this slide up is the new target we spotted at Ruby, as it's called, the Ruby Soho target.

9:22 And that's the picture that you saw at the beginning with the crystals. They're all encapsulated there in the areas marked with the red pen. You can see the circles are approaching a circle with some good grades. And the interesting thing, because the American government, for one reason or another, likes lithium, but it loves byproducts. And I I I really don't understand why, but they do. And one of the byproducts we are seeing now is cesium. And cesium is a very high value metal that is sought after, as you can see in the slide slide nearby the Department of Energy. And certainly at the Ruby target and at the Dragon mine target that we've got, we see significant cesium. So we'll see how that transpires, but it has the attractiveness of the pegmatites. And we'll be back in there. You can see it's an 800 meter strike line. Historic mines previously, channel samples are giving us good results. So we're and we know that in this case, the pegmatites have not remobilized. One of the challenges in the pegmatite world is the fact that pegmatites tend to move or lithium mobilizes very easily.

10:26 And with certain weather conditions, it just gets into solution and disappears your leg with the spodumene crystal. When it looks as though you've got something, but when the assay goes back, it's generally very low. In this case, the material is present. It is not remobilized. Midnight oil is one of the targets we've previously drilled. You can see the outline resource environment we've got by the red envelopes. That's where we hope to add to the role relatively shallow, roughly less than what, a 100 meters, I think. So all open pittable targets, easy to get to, and in many cases, based on historic maintenance done done previously. So the ground has been disturbed, and we can go back in relatively simply, not easily, but relatively simply in a permitting point of view. So we're keen to get back up there and get work started, and that's what we'll be doing in the early part of 2025 as I mentioned.

11:20 So the next step is construct the geological model. We think that can happen early next year after this final shallow drill testing program. And we will start with midnight oil, wide bridge, jumbo, and Morningstar, where we've already done drilling and bring them into the source definition. And then we'll look at the other areas where we can get further growth coming forward. And that includes Dragon and Ruby Soho. One of the reasons we want to move it forward is that the test work that we've done to date has suggested that we can produce a lithium concentrate of a sellable quality. The test work and results we got indicated that, and we can produce that at a price that's sub $500 a ton. And even today, it's selling it near enough $800.

12:07 So it's a nice little margin there for us as a junior company to get in and get access to. And the nice thing about the pegmatites is we will not reflect a major capital cost. There is a travel plant, which is a crushing and screening plant adjacent to us, and they've made it known to us that it is available for rent. The mining itself will be a contract mining, so the cost of mining is built or the cost of capital is built into the rate that you hire the trucks and the equipment for. And then the gravity section itself is also rentable. So the capital cost is more about ground preparation and infrastructure, making sure you've got the power coming in at the right voltage and the right quantity, making sure you've enough groundwater to keep people from going dry to having a drink of water and dust suppression. So it's limited, but there's still an amount. But it's a level of capital that something like a small company like ours can contemplate within its remit and achieve it. So we are quite excited about it. And knowing that we've got access, social impacts, and strong ESG, we think permitting for us. Although we've gotta go through the correct steps, we think it's achievable. And our target for us is to get into production at the end of twenty five, beginning of twenty six.

13:27 And that's the hypothetical forecast, resource definition, identify small scale mining operations, and then take us through to commercial production. So that's what we've been setting ourselves up for. It's what we intend to progress next year. Slowly, slowly catch the monkey. But as the market changes, if that demand suddenly increases significantly and what we see as a fairly large stockpile or inventory of lithium final lithium product being available, if that disappears quickly, then the markets gets into a demand for lithium. We can move at the pace the market demands off us. That's the nice thing about this little project. We also have the clay projects, just to bring you up a date on that. Down here in this area is where we've got the resources.

14:13 The main thing about that and where my friend has been wonderful in terms of helping us is the LRC royalty. Overall, we negotiated a package, I think, of a $10,000,000 input way back in 2022. Or was it '22, I think. Not 2122. Upfront was a buy into our stock, which they took some stock from us, and then they gave us a series of payments. The last one of which was $3. So that saved us having to go out into the marketplace today and look for cash in a depressed market where the share price is low. So it's allowed us to keep our little company nice and tight in terms of ownership. And so we sit today with the best part of $2,000,000, US dollars, not Canadian, US dollars in the bank, which is more than enough to keep us going depending on our rate of expiry of delivery of the program we've got for an easy six, nine months. If we want it to be really miserable, it could keep us going even less.

15:14 But it's there to be used for the benefit of the projects and therefore the benefit of the shareholders as the projects develop. That's the logic behind it. The clays, we've got two and a half million tons in terms of resource compliant, 2.8 in actual fact, and we've got lots of ground to explore further, and we know there's lithium present. It's not like it's a brand new greenfield exploration play. It really is a brownfield exploration play. So if we want to add to that number, which is a big number to begin with, we can do so. And in our heads, the play is, I feel like, is like a strategic stockpile for us. At some stage, it will be more valuable tomorrow than it is today, and we will have it in the bank for that use.

16:00 But it was convenient in terms of getting that LRC money, and it was easy drilling. It was easy to get, I think. And achieving this last one, the three three million royalty, we spent just less than 1,000,000 to get there. So we've been it's a pretty good return when you spend 1,000,000 onto your lithium concentrate or lithium equivalent rather and get 3,000,000 back. That just refers to the the drilling, and you can see where we're at. We've got 2,800,000 tons, resource area 5.3, only about a quarter of the total basin area, and just the basin area drilled. So we've got lots more to come, and if we want to, we can step out. And that will, again, reflect this being ready. If we want to, we've got the permits being applied for. They're they will be achieved before the drilling starts. But if we get a green light in terms of markets and guys, it's time to get some more lithium.

16:54 We'll be there ready to go. Again, just a little bit more of the overview of where WikiUp is. Lots of targets and less targets, lots of known areas for us to drill in. One of the things that and I wanna move forward one slide this one. One of the things we like and we have had from the beginning, we've never really done much with it, is what's known these days as the oil breaks. This is where historically some of the big oil and gas guys have been in the area, and they've extracted the gas and the oil from the existing ground that we've been working on. And the area that's got them very excited these days is called the Smackover District.

17:39 And the Smackover District is demonstrated there in that sort of blue sausage color that we've got. Can you see my cursor? Not really. You can see it there in the middle. And right there in the middle of that takes a smack over here. This is that red star. That's us. The interesting thing about brains is it's below surface, so you cannot actually physically see what you're extracting. And it's just a gooey liquid. So as you start pumping from position a, you may have extracted that in a relatively short period of time. And where the actual brain is now flowing from is over b, c, d, and e, and that's outside our area. But you can't control it. Nobody can control it. So the only way to get full access on it and best management of it is to acquire the ground.

18:29 So we can see ourselves as a prime target for those who work in the area, and you can see up in the right hand side, Exxon, Standard, Lithium, and Alvheim are all working in that part. Telewater just adjacent to us. We are a prime target, so it's a matter of time. It's not if it's when the guys come knocking the door, and we just wanna be ready for them when they do come knocking. For us, it's an expensive business. It's not one that we can certainly afford at this moment in time, but it's one we want to keep a hold of because it's strategic in our minds. And the one before that, the slide before that, is over in Pennsylvania, which is a much bigger footprint for us. You can see the the package that we own, that's the license area, and we have black line. It's big enough to have a plant. So unlike the Texas one, which is more annoying for our neighbors, this one in actual fact is much more strategic.

19:24 If someone wants to come in and do a plant in Pennsylvania, and it's quite likely that that could happen, running at grades of four ninety PPM lithium, then we have a target in place. Again, it's not cheap drilling oil brains or drilling any brains because they're relatively deep. You can see here the reservoir at 600 meters. It's a big hole you've got to fill it, and it costs you million to $2,000,000 just doing one hole. Whereas the PEGMATITE, you can do lots of holes for $500,000. That's why we've just kept it in our back pocket, but as it's become more and more attractive, ensure we're getting attention on these areas. And then finally, we have the traditional brains, which you can see here, Eureka, and the other one is Wilson, where if you look at the bottom the bottom of these these pictures, you'll see this dark blue areas. That's geophysical stroke what's the word I'm looking for? Anyway, it's basically a picture taken, And what it indicates is that that area on the geophysical work, there is what we think is a perched water table.

20:35 We know there's lithium on surface. We think over the years, like the Alba Marrow project, which is about 40 kilometers away and has been operating in brains for thirty, forty years. We think the brain has the lithium is in solution and concentrated at this depth into a brain reservoir, but it's and and that indicates there's certainly something that's denser than water sitting in there, which is normally associated with something like lithium that takes the ESG up. So we can believe that there's something sitting there worth pumping. But, again, the cost of running it is quite challenging, so we've just kept it on, if you like, bubbling just below surface. But again, we're starting to get a little bit of attention. Not it's not overly aggressive, but some of the bigger guys are interested in this part of our portfolio as well. So we're, again, just keeping things nice and sweet, not getting over the top in terms of expansion, but making sure ownership's clear, title is clear, and availability to go in Morkland is also ready to go.

21:41 The interesting thing about where we are in The States, and it it it is it's more a selling point than a huge technical issue, but because we're close to the various end users, We're in a position where it's a low carbon footprint. You're not having even though you've made the lithium concentrate or the lithium final product, it's adjacent to the end user, they're not spoiling your name by having to ship it across the oceans or air freights or whatever the cases. It's there adjacent to the domestic market, and we are ready to go. You've probably met we've you can see in front of you today, we've got Denim. We've got myself. Alex is on the call. Ewan's with us. Pierre is here. The two individuals from Nott is Jim, who, gives gave us his apology.

22:29 He's incredibly supportive and very constructive non executive director. And I just wanna also bring out Joey Wilkins, who sits there, who's our COO. He's been the man on the ground over in Arizona and Nevada. And the nice thing about Joey is all the several good things about him. He has a pedigree in geology. His father was a well known geologist in that part of America as was his grandfather, and therefore there's a huge respect for the Wilkins family and naturopath within Nevada and Arizona. Joy lives in Tucson. So when we go into the various government offices, seeking help in terms of how they can assist us with grants and loans, The government offices don't have to listen to a Scottish accent. They listen to one of the ones who kind who speaks the language, and that makes life easier and just simpler in terms of where where it's for the right reason. They're they're giving us the money. So we have a very good team, I think.

23:31 And I hope everyone would agree the board is very supportive and the individuals involved, although we've streamlined it, and Katie and are are two key members, but we've streamlined it to maybe four or five people now. The work that we do is is good, if not better than what we previously did with double that number. So in terms of managing the cost, and that's all we can do is we say, look, guys. We've got this amount of money. We've got these tasks to do. These are the number of people. Reduced the overhead to as low as we can get it. We delisted from TSX because we really get no love from that part of the world. It was previously a great place for LITED when the lithium market was booming because of its proximity to The USA. But right now, it's as dead as a dodo.

24:17 And so we've come back to our home base AIM market, is better in many ways for us. We never left it, but it was costly to go over to the TSA to brought it back. Every dime that we spend is I wouldn't say it's scrutinized, but it's properly controlled. There's no frivolous expenditures, I can assure you. We kept marketing to an absolute minimum. In fact, a lot of the marketing I've been doing of recent days, certainly the last year or so, are things that we've paid previously from the year before. So we've kept it very tight because we're I'm talking to people who've got, you know, cloth in their ears at this moment in time. We've gotta wait until that kinda clears a little bit, and then they're more receptive, and then we'll pick it up and make sure the message gets out. Because you can't not do marketing. It's just how much do you do and how effective can you make it.

25:12 That's the structure. Talked about board and management. The actual number of shares potentially is available for buying and selling is 35%, and it's probably a little bit less than that. But if you follow our share price at all, we don't actually trade particularly aggressively. It's low volumes at this moment in time. But there is the opportunity because of that kind of fluid that if we can get the market with us, then we can go back up the old value curve significantly. And you should see there, there's less than 400,000,000 shares, which for a junior company is actually not too bad after three years in these public markets. And that's the presentation. So I'll leave it open. If there's any questions both from here in Nileman or from those listening, fire away. And later on, I was gonna get list of great That's great. Ian, thank you very much indeed. Just let me just interject so you can take a few seconds to look at the online questions if there are any there for your review. Ladies and gentlemen, please do continue to submit your questions just using the Q and A tab situated on the right hand corner of the screen. I just want to remind you, recording of this presentation along with a copy of the slides and the published Q and A will be accessed via your Investor Meet company dashboard. Ian, if I may just hand back to you if there are any questions online, if I could ask you just to read those out on alternatively, if there are any questions in the room, if I hand over to you to moderate us, through the q and a. Thank you.

26:44 Okay. Well, there's one question I asked come in, which is I asked, you know, how are we gonna stop the stop from collapsing, which is a pretty decent question. I think it probably has stopped collapsing. It's just collapsed. There's no more collapsing to be done. But we think and I hopefully that's the message you've picked up from the presentation, we think the bottom has been reached. Can I tell you is it on the turn? Honestly, I can't tell you that. I want you to believe it. Of course, I do, because like everyone else, I'm invested in this company. And I think there are signs, but it's not significant. We just have to wait and see if these initial shoots grow into something bigger. But we've positioned the company to be ready for the change. That's the important message that if this change starts to develop further and further, then the value of this little company can grow and grow quickly because we put the right steps in place to stay alive and be ready for this next change. So I think the market cap, which is pretty low, has nowhere else to go but up, and I think we're ready for that up.

27:52 Yeah. It was asked about taking it private. There's no intention of doing that at this point in time, and I don't think there's any need. I think we've just got to stay the course, and we're in a position that, in fact, by comparison to our peer group, so we've stayed the course much better than the bulk of the others out there. So we can't just take little BRADDA in isolation. It's going to be taking the context of the marketplace, and by comparison, we're actually better off than many, many people. Is what why is the lithium market collapse over the, you know, over the time I go own the shares? When I bought them, the market was up here and now it's on the floor. Why is it collapsed given what's been going on in China given the Biden administration throwing money at anything that moved and that was, you know, connected with these, for example?

28:47 What what why why did the lithium market collapse? I would have thought there would be a massive demand for lithium and that you guys would continue saving a lot as you were three or four years ago. That's that's that's the right question. And the answer starts by timing is is almost everything. So we go into the market. We were first in the market at the end of the first wave. We got the advantage of it crashing when we put these assets together. So we got them for a very good price, which is why we went out initially. It's a low market cap. We got the benefit of the increasing lithium environment price at that stage at the beginning of our company, and the pricing went all the way up to 15 p in our case.

29:33 And we took advantage of that as well, which was, I think, on behalf of the company, I think that was well done. We brought the money in at 14 p, I think, or 13.7, and, you know, had limited dilution as a consequence. But we are not the only lithium company out there. As soon as you get a wave like this, everyone jumps on it. You know, the bandwagon gets overloaded. And the Australians in particular, credit to them, although I can complain about them, they're fast. And the ability to start mining operations in that part of the world is a lot easier than getting things moving in The States, which is much more cumbersome to begin with, much more reliable when you get it there. So the Australians who dominate the market in spodumene, spodumene is the easiest way to up pegmatize stoke projects.

30:20 Spodumene is the easiest way to get lithium produced. They started opening up mines like there was no tomorrow. The Chinese grabbed it and started consuming it and building their batteries, and more and more opened up. Then came the brains in the Argentinas and the Chili's. These are the pumping the solutions from the ground. You use solar evaporation to increase the concentration, and you put through treatment plants. They started to increase in numbers as well because it was a return on investment. The reality is that there was an oversupply then of lithium, and it I it's hard to say if it if it's by management action or it's just one of these things, but the the markets, the Chinese in particular, started to build up huge inventories, massive inventories.

31:10 And so when the perception that came around that the the lithium market space, end the electric vehicles, the penetration wasn't displayed particularly in the Western world as had been anticipated, then they all started going, well, maybe we don't need as many batteries. And that permits into the main sales. So, well, we don't need as many batteries. What would we do with all this stockpile? I'm not buying anymore until I get the stockpile further down, and so the price started falling. Unfortunately, selling begets selling the same as buying begets. Buying going forward. And we've now reached a level where a lot of these mines are underwater. So it was nice to be in production because you get a cash flow, but now suddenly, you've got a negative cash flow, and that's where the pain is. And you can see the number of mines closing down worldwide.

31:57 But I'm more optimistic than that. I think the point you make is is quite right. I don't think the marketplace has died. The electric vehicles in China, the world's largest markets, almost 60% now. We are slow in terms of our uptake of it. We're getting there in the Western world. And as it grows, will start demanding more lithium going forward. And the we were talking out this morning about the backup batteries, you know, ability for storage of power. There's no need there's no doubt that the need for that has increased. So, yeah, I can see that the stockpiles are beginning to diminish. That's why I say there are signs. You can see in the last, I don't know, two weeks, the little spodumene cost, which initially twelve, fifteen months ago was 7,000, $8,000 a ton, all the way down to 700.

32:47 Nobody's making money in that, but now it's gone from 700 back up to 800. I don't think it's gonna be a startlingly big acceleration, but it's gonna be steadily coming up. And a lot of the mines have gone off. I don't think it will come back on. We've got the advantage of an ice open pitable. Not gonna be a big resource in in Arizona in terms of final dates, but it's gonna be American lithium, and the American market wants the film. So I think niche wise, that gives us another advantage, but we just gotta wait until the market sentiment sentiment is just not there at the moment for the Are are you optimistic with the Musk closing out to to Biden? That that's not gonna create I mean, everything I agree, he says he's gonna build gigafactors all over The States. And presumably, that's good for you. I think so.

33:39 Mean If he actually does it. Very much so. Very much so. But, you know, I far be for me to get into the politics of of what's happening in the world today, but there's definitely two sides of this world again. And there's the Asian side driven by the Chinese supply, and America's saying, we want our side. So, yeah, I think Musk and Trump will be positive for the lithium market space. If if if he gets slowed down by the regulators in The US, you know, if the market doesn't expand in North America, is it is it economically feasible to sell your production to China, or is it is it too expensive to ship it out there? Well, we'd probably sell it to Canada. So it's to Canada to get the production of the final cons the concentrate into the final lithium product. We would sell it there, and they then there are battery manufacturing units in Canada and in The States once you've got the final grades that you need.

34:36 Right. So their refining can take place in Canada. We don't need to sell it to China. And I think that's the advantage that what the the car manufacturers want to in The States is to say, this car was built in The USA, including the battery. They can't say that at the moment, and that kinda annoys them. So, yeah, I do think we will still be able to sell our material within the western environment. Okay. Final question then. You mentioned about you want production to start late next year, but you also said there's pricing pressures and that the margin may not be there to make it economically feasible. How long will the cash that you've got now last if the market doesn't improve and if it's not economically sensible to ramp up production late next year? We are currently sitting at $2,000,000 plus or minus in the treasury.

35:31 Our burn rate, if we don't do any extra work, is about $6,070,000 dollars a month, somewhere around there. So $12.70 is 804 That's a year. Exactly. But doing nothing is not a great option. We've gotta be ready. So we're constantly going to just keep things moving along, and and and we've gotta believe. And we, you know, we do we do in the safety. Is there a plan b, though, that if things don't go the way that you hope they'll go and you have to raise more money, how are you going to do that? Are there plans in place to do that? Yeah. There's there's two ways of looking at the market situation today. It is awful, which means the lithium companies are suffering, and therefore, there's opportunities of us looking at m and a opportunity that can trigger a change in perception of LITED BRADDA.

36:22 And because we've got money in the bank and good projects, we're in a position to leverage that, and we continue to look at opportunities in that regard. So to expand rather than to sell the company? To expand in certain areas. To expand in certain areas. The tech the brains, for example, if there is an opportunity, we will look at joint venturing then, and someone else spend the money while we retain an interest on it because it's just too expensive for us to do that. It's not something that we would entertain. And then we also look at, you know, if the lithium market really never recovers, then we're not gonna accept with our with our backside. We're gonna get on and and see what else is out there. So we constantly look at opportunities that may be even outside the lithium market space. But our focus at the moment is lithium. Our focus is keeping this running and believing, as we do, that the lithium market is going to improve, and we should be ready for it. And it's not an expensive business for us to do that.

37:20 I've got I'm not saying the names because it'd be unfair, but I know certain companies I name right now who had much bigger market caps to begin with and suffering, and they can't raise a dime or if they do, it's just such ridiculous dilution. I go and raise money now with what am I trading at? 1.3 pennies? So let's say I discount from that to 1.1. That's an enormous amount of shares that's coming in there. And yet the asset itself hasn't changed. It's the same asset I'm I'm owning. Therefore, the realizable value per share comes down a bit because there's more shares that we get it sold to get the value out. So we are keeping it as tight as we can. That's the way we see it. Does that help you understand? Okey doke.

38:07 In that case, I'd like to see if there's any more. Let me just just go on up to sleep. I don't think there's any more questions, in which case I'll move on to the next part of the meeting, which is the resolutions. And the first resolution is to receive and adopt the report of the directors and the financial statements for the year ended 02/29/2024. Normally say the twenty ninth of every four years together with the report of the independent auditor. I put that resolution resolution to the meeting. We have someone who's proposed it, and I'll ask mister Jenkins, thank you, to second the resolution.

38:56 I will now put the resolution to the vote. Can I ask those in favor to please raise their hands? Thank you. All in favor and those against? Nothing. So I can now tell you that the resolution has been passed, with, a votes for of practically 100%. So I declare that resolution duly carried. Resolution two, which is another ordinary resolution, is to reappoint the auditor, PKF LITHIUM, from the conclusion of this meeting to the conclusion of the next meeting. We have the financial statements to be laid out before the company again. I now ask for a seconder for the resolution. Seconded. Thank you, Denham. Seconded second resolution. I'll put the resolution to the vote. Again, those in favor, please raise your hands.

39:45 That's unanimous here. And those against, zero. So I can now report that the resolution has been carried. And, it's 100% vote for. Thank you very much. I'm moving on to the next resolution, which is a further part of the resolution, and it's a reappointment of directors to the board to elect the directors of the company who will serve until the end of the next annual general meeting or until their successes are appointed. These include Alex Borelli, Dan Mack, Ewan Jenkins, Jim Mellon, and myself. And I just want to make a note before I ask for the segment of the the directors, in my opinion, have done a superb job supporting the company and supporting me.

40:31 And I recommend that we do, if it was needed, vote for them because I think they're an excellent bunch at this moment in time. So we'll ask someone to second the resolution. Mister Jenkins, thank you. And I will now put the resolution to the vote. Those in favor? All in favor here, and those against, we have recorded. In each case, and we've got a series of votes for and against each person, but I can tell you in the case of all the directors, the votes for were extremely positive. The lowest for was 95% effectively of all the votes cast. So, again, this particular resolution has passed and has been carried. Thank you very much.

41:17 It's on my page. And so we're on now to resolution number four, to authorize the directors to be generally and unconditionally authorized to exercise all or any of the powers of the company to lower an issue of branches or to subscribe up for three hundred and ninety million six hundred and four thousand four hundred and thirteen shares, plus any shares issued by the company pursuant to the exercise of options and or warrants or to to management or other advisers as at the date of resolution. And to such persons at such times, and generally in such terms and conditions as the rates may determine, provided that authority and power granted by theirs, this resolution shall expire at the conclusion of the next general meeting. So it's a bit muddy, but it's just continuing to allow us to authorize shares should there be a need for us to move forward with raising funds.

42:08 So I'll ask for a seconder on the resolution. Certainly do. Thank you, Denham. And for those in favor to put their hands up in for, all in favor and those against, it's all in favor here. And, again, I can advise everyone present both here in the meeting and on the connection that it's been passed with almost nine 99 and a half percent floor. Moving on to resolution number five, which is the last resolution, which is a special resolution requiring a 75% majority of votes cast. And that is subject to and conditional passing resolution four above and a substitution for all existing and unexercised authorities and powers to authorize the directors to be generally an unconditionally authorized to allot and issue allotment shares for any excluded securities without first authorizing to existing shareholders in proportion to their respective holding of the shares, provided that this authority in power shall make a limited to the aggregate amount of 390,000,000, $609,439,100, allotment shares plus excluded securities.

43:23 I will now ask that that authority expires again at the end of the this particular year and therefore the conclusion of the next AGM. So I'll now ask for a seconder for the resolution. Thank you, Ewen. And, again, those in favor, please raise your hands. All in favor here, those against zero. So, again, I can confirm that over 99.6 of 44, so this resolution is passed. That now completes all the resolutions sent and closes the formal business meeting. We've had coffee, but then in the near, it's more than welcome to more, and we can have a chat here if you want to make anything else that's in your mind. But other than that, I thank everyone for their attendance today, and I can close the meeting. That's alright.

44:08 Ian and to the board of Brotherhood, thank you very much indeed for your time this morning. Can I please ask attendees not to close this session as we'll now redirect you for the opportunity to provide your feedback in order that the board can better understand your views and expectations? This will take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the board of BRADDA HEAD LITHIUM, we'd like to thank you for attending today's annual general meeting, and good morning to you all.