Cleantech Lithium (LSE:CTL) — Investor Presentation

0:00 Good afternoon, and welcome to the CLEANTECH LITHIUM PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the Q and A tab situated at 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 can review your questions submitted today and publish responses, which 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 Daniel Fox

0:31 Davies. Good afternoon to you. Good afternoon, Alex, and thank you. Sorry, everybody, that we're running slightly late. So technical glitch. Ignacio and Steve, it's very good to see you. Although, Ignacio, you and I have been seeing a little bit each other this week. So we thought it would be useful to have a catch up for the wider investor group as Ignacio has been in London this week with a series of meetings, both with some of our our shareholders. And I also I think you've been running shoulders with with from Chile this week. Yes, Dan. Thank you. And hi, everyone. It's been so far, it's been a great week. I've had the possibility to meet some of you in person. Thank you for those that came yesterday to a drink session and meet the CEO. It was a great opportunity to talk to you, get to know you guys. And I've met some all other investors during the week, so I we thought it was a great opportunity to have this webinar for all of those who couldn't join us, who also listen to the news or or to give you a brief update of what the company has done in the past few weeks,

1:37 updates on the board, etcetera. So happy to be here, and and I'm sure it's gonna be we have exciting months ahead. It's it's actually been a very productive week. And, obviously, as I'm sure many of the shareholders will see, we started to tick back up on the price, which is encouraging, and we've also started to pick back on on some of the volume over the last couple of days. So, Ignacio, as you said, we thought it'd be useful just to give a public webinar just to repeat to those that aren't well, weren't able to make the drinks or weren't able to meet in person this week, just what we've been saying and updating people on. So with that, should we should we move forward through the slides slightly that Nick, as always, has kindly put together? And maybe it'd be useful just

2:18 to start with, for everyone's benefit, just a little bit of an update on the lithium market and and where you're seeing things? Obviously, you're much closer to this than most of us are. Yes. So well, there are two kind of important things to to note. First, as you see on the left, there's been some geopolitical movement on on lithium. In particular, China has China, sorry, has set some some restrictions to the export of some some lithium compounds contained in cathode materials.

2:48 And that, again, highlights the geopolitical importance of lithium and our position in in the industry and why. As you see on the right, and I I I will explain, China holds more than 90 between Chile and China, they hold more than 90% to the conversion capacity of lithium compounds in the world. And our project, our CLEANTECH project, aims to produce lithium compounds in the country, so lithium carbonate battery grade in Chile. And therefore, wouldn't we wouldn't need to send our products or have them go through China to reach our final customers. That is something that not many companies in Australia or any companies in Australia or Africa can say at the moment, they have to go through China for the processing and smattering of their their product.

3:42 However, brine projects, and in particular, our have the capability to, in a very cost effective way, go to the end product directly. And those points are very important for the future. Thank you. Someone's got breaking news. It's Ignacio's giving a speech preservation. Right. Let's take a look forward. So And then I'm sorry, Marie. Just yeah. Dan, on on on this slide, also, on demand, many people have been saying in the past few months and years that the EV demand has flattened, But this chart on the left shows, first of all, September was the first month in history that we had more than 2,000,000 sales of new EV units in so what a remarkable achievement.

4:36 And then year to date, demand has shown pretty healthy numbers. It's around global 23%, 24%. The US is at 11. The China is 20 something, and Europe is above 30% growth. So very healthy demand for new EVs, which as we all know is the largest driver for lithium demand. And, also, ESS or energy storage demand is becoming a new trend, and it's growing much faster than anyone had forecasted before. And it's also would drive demand in the future to by the end of the decade, if you can see that chart on the right, it says, by 2030, we will need 20 new lithium mines just to produce enough lithium for energy storage batteries.

5:26 And then I wanted to talk a little bit about Chilean politics. There are elections in November. So in one month from today, November 15, we will have the we'll have the first round in the Chilean elections. There are seven candidates from different political parties. One is a continuity of the current government, and four or five are right wing candidates that are following here in the polls. There's definitely going to be a ballotage, a second round between a right wing candidate and and the the government candidate, and probably we're going to see shift next governments to a right wing government with a with a pro business attitude. We have already been talking to his team

6:16 in advance, and they are assured that they will continue with this policy of sales, but with probably more openness to our sales with with a faster pace. And just as a quick update to this about what we've been doing this week and past week, I attended on last Friday a seminar in Berlin with the mining minister and the head of invest Chile where we talked about CLEANTECH and the need for junior companies to get obtain funding to develop the projects and how that was important for for UK and the European Union. And also this week, on Tuesday, I attended a panel in the Anglo Chilean society where I shared the the panel with the chairman of CODELCO, vice president from Anglo American, and also vice president from Worley. So high level panel where we discussed opportunities in the mining industry in Chile.

7:15 And here you can see some pictures about those those events.

7:23 Was it was it well attended? No. Just just Yeah. Full rooms in all the seminars, a lot of interest on copper and lithium developments in Chile. And I think everyone recognizes that that that Chile is very well positioned to continue to be one of the largest suppliers of lithium in the world and that new entrants need to

7:48 peers such as us, and that's what one of the reasons why we're we're invited to that panel with with the in the Anglo Chilean society. Finally, I think it was just yesterday when I was interviewed by SMP where we spoke a little bit about the sole process and also how demand is looking healthy, and and and we will see recoveries by the end of the decade that will help sustain and and support our projects.

8:20 And and regarding some corporate updates, Steve, do you want to share with our shareholders news about the the board? Yeah. I I think most people, you read our our release a month or so, so back when we announced that we are really looking to conserve the cash that we we've just raised and have been reducing numbers operationally and also reduced the size of of the board. Our previous Jersey director, Jonathan Molley Kirk, decided to to to leave for other reasons, and it's important that we have a Jersey resident director on the board. So we're very, very pleased that Paul Atherton has decided to to join CLEANTECH LITHIUM.

9:08 He's got a very interesting background. He was actually originally graduated as a geologist at my old university, you know, Imperial College, but he decided geology was not for him, and he converted to to finance, became a chartered accountant with with Deloitte and Touche, went into financial management with with BDO and then with a number of resource companies in in Sub Saharan Africa. He then came on board with Heritage Oil, a Jersey registered company with a portfolio of of oil and gas assets in Nigeria and around the world. He came very early as the as the chief financial officer and with the CEO, Tony Buckingham, grew that into a

9:57 billion dollar plus company, a FTSE 250 company when it got listed in in in London. Eventually, they sold out to, Qatari wealth fund for $1,600,000,000.

10:14 Paul stayed with them for a number of years and then left to follow his new career, which is as an angel investor and and board director in in a number of of areas that he finds interesting, which is in resources, health care, and and tech technology. So being in resources and and technology,

10:38 this appealed to him. He came on board earlier this this month, and he's gonna be a very great addition to the board, not just for his knowledge of the Jersey regulatory affairs, but being a very, very experienced financial director.

10:56 Absolutely. I think it's also meeting in person. Just by by flagging on that one, he's also a shareholder of CLEANTECH. I've known Paul for twenty something years. Heritage was the first oil and gas company that I was involved in. And I've maintained a dialogue with Paul, but he was can't remember if he came in on the pre IPO or the IPO round, but he's he's been a shareholder and a follower of company in many of these webinars for some time. So have to say again, adding to Steve's comments, he's a very, very robust and sound individual with a lot of relationships. And, again, the combination of his background of public markets

11:37 but also having been a job just originally. I forgot he was a job just originally, actually, Steve. Yeah. Would be a great great addition to the board. And, obviously, we have to have a a Jersey resident, but despite the fact of just being a Jersey resident, I think he should be a significant benefit to the company going forward. Absolutely.

11:55 I had the opportunity to meet him in person also two days ago, and he is already he already knows a lot about the company, as you said, Daniel, probably because he's also a shareholder. So he's well updated, and we had a a really live conversation with a over a beer. So let me now give you a brief update on the sale. As you as you all know, as we mentioned in our previous seminar,

12:24 the the is currently going through an indigenous consultation process. We mentioned in our last event that we expected that to last for three months. It started August 1, so it we believe that it's still on time. So it should be ending somewhere between late October, early November. And what should happen after that

12:48 is that the government would open a new streamlined process or or fast track process given but now we have 97% of the licenses within the government's polygon. That should happen late November or early December. And after that, once we have applied, if when we are admitted, which should take around a month so let's, say,

13:13 January next year, we will enter direct negotiations with the government regarding the the sale. It's the negotiations on the terms of the sale, and the the process would end with the sign signature of the sale by probably late q one. So we're talking about March 2026. That is that was the expected timeline, and that is still what we expect today, a month into the process since our last conversation.

13:41 We've been following we are not part of the indigenous consultation process, but we've been following it closely. We have met with governments every two weeks just to get updates on on the polygon, show them our new license position, and we've also been meeting with the leaders from the indigenous communities to to understand their concerns. But in the end, this process is driven by government and with the communities, and it should end with an agreement on some value sharing mechanism as every sale,

14:12 and we expect that it will be somewhere something similar to what other companies have had in their sales like Enami. So somewhere between 0.3, 0.5% of the sales. Sorry. Ignacio, thank you for that. This is obviously the key thing that everybody's been driving. So can I just go slowly again? So very clear. So the indigenous process is due to complete on October 31.

14:39 It's it's end of October, beginning of November. Yeah. It can be the last week of October, the November 1. And then, obviously, that it takes a few weeks. So just to outline so that the shareholders are clear on the expectations and the timelines. I imagine it takes then a few weeks for that all to get consolidated and processed and reviewed. Correct. And then our expectation is that the government will then look to reopen the fast track process for Laguna Verde some point during the course of November?

15:11 Yes. Late November. That's that's probably the case. And once it's open, we'll have a period to apply, and the government will have a period to evaluate all the paperwork and application, which should be forty five days approximately. So you are already in in early January. Okay.

15:30 And then just to clarify again, so just to we're very clear with shareholders, the only party that will possibly qualify is CLEANTECH?

15:40 I that's correct. One of the requirements is to hold more than 80% of the licenses within a polygon within the government's polygon. And we know with the current government's polygon and whatever the polygon is, we'll hold more than 95% of the licenses. Understood. And then from the the announcement and the education, so do you then

16:06 you get an would you get a formal notification that you've been accepted into the fast track process? Or Yes. What what what can we look for in terms of of sort of the the without giving the exact week to a month, the the flow of the news flow? So they would announce at some point, we hope in November, that they're reopening. And then We would we would announce that we have applied, and then the next official announcement announcement from government would be LITHIUM PLC has been accepted in the fast track process and now enters direct contractual negotiations. Okay.

16:40 However, my understanding, correct me if I'm wrong, is that, obviously, the bulk of the terms have already we know that other companies have had their their sales granted. They're fairly in a uniform agreement, so it's not really expected to be a protracted negotiations. It's more of the sort of the government saying, these are the details that we're now gonna enter into. Yes. The bulk, as you say, the bulk of the contract is already known to us. We've seen the terms. The the the Enami already signed their sale. It's public. So pretty reasonable terms, even

17:11 more than better than what we'd forecasted before. So so there would be few items to very minor items to negotiate, so it shouldn't be a long process or very painful process. Alright. And as a final one on that, my understanding is also that we weren't the only party that

17:32 didn't get on the first round and wanted to open up to the sale application with the government. But there has also been another sale reopened up, so there's now precedent in terms of the government revisiting the process. Yeah. Dan, you've listened to what I have been saying in the past week. Exactly. A couple of weeks ago, the government opened up a second fast track process or streamlined process in a salon called Oyawe, where originally the company that was supplying there did not have 80%. They had around 35%. But then the polygon changed, and now they have 80.1%. So the government opened a new streamlined process, and this company is applying. So exactly, there's already present of a second streamlined process being opened in a SLR once the indigenous consultation process ends.

18:25 And, yeah, while governments are governments, I mean so I think probably the question that many shareholders want to ask would want to ask, and that's you, is is how confident are you in terms of the government reopening the process? And when we do, how confident are you that we will be awarded the sale? I mean, our timelines can move around slightly in this administrative processes, etcetera, and it's a civil service. But in terms of your belief that we will be awarded the sale,

18:52 would you say you're the same confident or more confident than we were when we spoke and we did the funding a month ago? I would say that the same level of confidence because everything that we've said has come to reality so far. So I'm very confident that next steps will come as we have predicted and that we will be admitted and then be in contractual negotiations with the government with with the line of sight to sign in the contract late first quarter next year.

19:22 Great. That's fine. I think it's very, very helpful. We got a few questions that we'll come through a little afterwards. Sorry. I I interrupted a little bit there. I just wanted to get it just really, really clear because sometimes people get a little bit of there's a lot to take on board, so it's just slow it down Right. And then so that brings us on to how that impacts the updating and the publishing of the prefeasibility, which obviously a lot of parties have been looking forward to for a while. Yes. As as we've said before as well, we the prefeasibility study is almost finished.

19:54 It's just a few minor details to be arranged now that we have acquired the MINOG licenses, but we are not in a position. We don't think it's good for the company to to make this PFS available until we are admitted into a streamlined process. So our expectation continues to be that as soon as or once we are admitted into a streamlined process, say, early January next year, we will

20:25 liberate the PFS and make it available to everyone. Okay. So you would we would publish that upon being formally admitted into the process ahead of actually getting the final award, the company and the board. Sorry. Well, the board would be happy to post at that point. Okay. So that's alright. Wait until March to, yes, to publicize the PFS. We would publish it before, probably during January.

20:50 And, obviously, just to clarify, the the PFS was largely complete before we acquired the Menegy licenses. But, obviously, with the acquisition of the Menegy licenses, we now have to update it for the increased area, and it has a slight impact on some of the numbers and assumptions, etcetera. So that's that work, as I understand, is ongoing in the background? Yes. Yeah. It's ongoing and should be done by the end of the year. So there will be any closing. Yep. Timing. Okay.

21:19 Right. Let's move forward. In terms of information, Dan, I think that's that's That's the main update. Yes. Let me let me pass on the question we got from there.

21:33 So the first one, Andrew Esser coming on, there is obviously, there's the upcoming elections. A number of people have asked you whether whether we feel that that would impact upon the the company's position or the awarding of the sale. And maybe Andrew was just asking, will it matter which party gets selected in terms of us proceeding with our objectives?

22:00 I from the the two larger two most probable candidates going to the ballotage, they have both said that they will continue this strategy from the lithium policy. So from that standpoint, of course, we feel confident that whatever the the government is that is elected next, there will be no impact to us regarding the. And in other matters, of course, there are differences between the left

22:31 wing candidate and the right wing candidate, but but they are both we are a stable country, so there will be continuity in policies. And and for us, it shouldn't matter in the short term. Okay. Thank you. Just for everybody to remind me, the the date of the election again is? November 15 is the first round, and then one month later is the ballotage. So we will know who the next president is mid December, but the president won't be in office until March. Okay. Well, we're gonna try and keep this down to the the half hour. I'm gonna rush through these other questions as succinctly as we can.

23:11 So we had here

23:13 Toby m has asked, so we appreciate the name is CLEANTECH LITHIUM, but has the board ever considered branching into other battery critical minerals? Chile's the largest copper producer. Steve actually formally ran both the world's first and second largest copper mines in Chile. Do you have any thoughts about getting into other products in Chile? Or I think it's fair enough to say we've probably got enough on our plate at the moment. Well, I I I I I think on on that, you know, we're seeing that lithium has tremendous growth in the future, and we've got the expertise in in the technology for for lithium. And that's

23:52 a big portfolio that we already have with Laguna Verde and then Viento Andino and potentially other lithium projects in in in Chile, and potentially other lithium projects further afield that we've been looking at with potential diversification. The reality is copper is is clearly needed for the electrification, but the grades of the resources in Chile are are going down, and the investment to develop new copper projects in Chile

24:27 of the order of billions of dollars. Now the these are very large and very expensive projects with different technical skills to that we that we have in the company at the moment. So I think with the, you know, with the board, we're more interested in looking at potential diversification of our lithium portfolio rather than looking at alternative commodities. Steve, thank you. We had two questions here about the change of government, Phil, about whether we we think Christmas is gonna delay in the processing of the sale. I think we've answered that. It's that no, we don't. So there's the indigenous consultation, which we expect to end in this month, beginning of next month. There'll be a couple of weeks while they process that, then we expect that to be the announcing of the reopening of the fast track process.

25:18 We will then apply. We're the only party that can apply. We'll meet the criteria. But, obviously, this is not done in isolation. Ignacio is in in constant communication with the mining ministry. Obviously, he was here this week with the minister of mining. So it it's it's not it's not like they're not expecting us to apply or this process isn't being done in consultation. So there's a process that we need to go through, but we're highly confident in the response on the the eventual outcome as much as we can be. The change of government affect this in terms of the CL being admitted to the fast track and then it being revoked. Ignacio, is there any chance we can be admitted and then are not awarded? There's always a slim chance of things happening, but no. I think well, I know. Chile is a serious country.

26:08 They there's a respectful rule of law and a continuity of policies. And if we are awarded at all, I don't see that happening at all. Paul, please so going to the top, I've I've missed you there, apologies. I I appreciate you saying it's a Paul is saying it's a shareholder from a much higher level, and he didn't share the enthusiasm for the uptick. I I I am enthusiastic for getting a bit of a volume coming back in. Lithium's taking a beating across the board. The project is significant in scale. It's a strategic in location. It is in the bottom quartile of the cost curve. We would still be making money today. It means that we're much more likely to be in a position to get the project financing to put ourselves into production. So once the the the question was whether we have assurance that we can get back over to the sixties, seventies, eighties, etcetera, plus that we had before.

27:03 That's very much a function of where the lithium price will be. I think both Ignacio, Steve, the rest of the company, and and certainly myself, are very bullish about the long term view for lithium price. You see the numbers there of the increasing EV market and then the wider battery storage market. I think it was Bill Gates who wrote in his book, the the speed of thought, how people have a a habit of underestimating what will happen or overestimating, sorry, what will happen in one to two years and underestimating what will happen in ten. And the reason I first got involved with CLEANTECH is I still see a continued electrification of the world and a demand for lithium going forward. Although there's a question about sodium batteries I'm gonna put to Steve. So while we can't give assurances, we still have a very robust project. The issue is we need to resolve the the operating license issue, and the board's been working very hard to do that.

27:55 One probably here more for well, let's see what's wrong for you, Steve. Think China spodumene sells for $850 a ton, carbonate for 10,000. Where does our product fit in? I think when when you say the Chinese spodumene, that's largely the Australian spodumene and and African spodumene where the Chinese are buying it for about $850 a ton. Then they have to ship it to China, then they have to process it there. So the the net cost of of hydroxide, which is produced by by that route, becomes quite expensive. Whereas at the moment, the lithium carbonate is selling at about $10,000 a ton.

28:43 The producers in in Chile and Argentina are still making a a profit on that because they they are low cost. But as the the demand for lithium go goes up, we can expect that lithium carbonate price to go up to about $2,020,000 dollars, just over $20,000 a ton. So that's gonna be our long term prognosis, which we'll use in our PFS. Yes. Just to remind just to remind everyone that I think it's useful for to explain to our audience. It's not in spodumene. It's not a one to one comparison. So one ton of spodumene concentrate doesn't become one ton of lithium hydroxide or lithium carbonate.

29:28 In reality, you need at least depending on the concentration, if it's 6%, you need at least six tons of spodumene to produce one ton of hydroxide. So if you add up the tons and then the manufacturing cost to get to the final product, you understand why brine product projects like ours sit on the lowest part of the curve cost because we don't have we are extracting that raw material from the ground and processing it in situ. So our cost will always be more competitive than that of product from spodumene. And there there there's one other interesting thing that's been happening here. Clearly, Australia is the largest spodumene producer. All goes to to China.

30:16 There have been efforts in Australia to say, well, let's see. Can we refine the spodumene to lithium hydroxide ourselves in in Australia? The first project, Kwonana, as a joint venture between IGO and Tianqi, they've been trying to get it off the ground. It has not been going very well. They've canceled the expansion. And I think IGO took, I think, $550,000,000 write down on that on on that project. So they're finding it more difficult to go through the lithium hydroxide refining route than anybody imagined. But at the moment, the only people who are doing it is China. So if you're a spodumene producer, you're locked into China.

31:02 We produce battery carbonate. We can sell to whoever we want. Correct, Steve. And just a final comment on that. The other plant, as you mentioned, is is called Kemerton. It's as as what we've read in the press, it's also not not full capacity. It's not the has also taken a write down in at least Plant 3 And 4, so they are not expanding it anymore. And I just recently saw a chart from another company, and they they were saying that just the conversion cost of of hydroxide in Australia was above above $20 per ton or sorry. $20,000 per ton, which is twice the price today. Just so people get a sense on why brine is so competitive.

31:50 I'm gonna come back with one couple last questions. Steven asked you about about the China and the recent sanctions in a second. But I just want to finish off the the last of my questions for today. Neil K. Is asking, Steve, that there's increasing news around CTL, which, for those who don't know, is is, I think, China's now largest battery producer, around their latest sodium batteries being multiples cheaper, similar in energy density, and suitable for fixed storage of EV versus lithium batteries. And, obviously, they they have the the potential benefit of not being combustible in in oxygen. If they were the future, then take five years to change the supply chain, but this is pretty significant challenge. Do either of you have any thoughts about that? I've seen various news about the potential sodium batteries, but I understood it was at least a decade away. Steve, I know you follow the battery markets very closely. Yeah. I I I I think with with with batteries, lithium has the highest energy density of of of any metal, and it's the lightest metal. And that's why it makes it, you know, very suitable for for EVs, which want light batteries.

32:57 There's lots of developments in battery technology, including sodium, but also solid state batteries, which use even more lithium. But they use a a lithium anode as as well as the the electrolyte. So we will see developments. Sodium batteries are heavier than lithium batteries. There's a feeling that they could be a cheaper source of batteries for fixed installations, don't need light batteries, but almost certainly it's lithium batteries which are the future for motor vehicles. And and particularly in the longer term, people moving towards solid state, which is even longer range, and that also resolves any potential combustibility issues.

33:48 But also, Steve, I I think correct me if I'm wrong. I mean, I went to a battery conference with you several years ago. They've yet to come up with a a viable commercial sodium battery. But even then, it it would take a couple of years to actually get into mainstream production, and that would only be one value reducer. But then you'd have to change around. So even if you were to come out with a product in five years, you'd then probably spend another five to ten in terms of doing sort of market penetration and moving over. And as you say, it's only applicable to certain use cases. Mhmm. I think there there is the battery metals review magazine after they can get online. They had an article about twelve or eighteen months ago, which outlined some of the potential ones there. But I think the bottom the bottom line is, Neil, is it's interesting, but we don't see it as being a threat to to the lithium market or in terms of the demand for batteries and EVs at any point in the timeline of which we'd be looking to be up and running. I I I think the the most interesting development in this last year, and we can see more of it in the next years, is the recognition that the the nickel, manganese, cobalt batteries, which are the high performance batteries, high cost batteries, which need lithium hydroxide, their usage is declining. There there's the the LFP, lithium iron phosphate batteries, largely out of China and Chinese

35:18 tech tech technology. Much cheaper, but they're gradually increasing their performance, and they're taking over the market. Whereas people are recognizing NMC batteries using lithium hydroxide, were potentially gonna be the the larger, requirements. It's now very clear LFP, which requires carbonate, not hydroxide. So all this spodumene going to China to make hydroxide, whereas the Chinese want carbonate. So they're gonna have to convert that hydroxide to to carbonate, or they can buy it from us, brine producers in South America. Thank you. Last thing I was gonna say is sorry, mate. China made their announcement, but there's a couple of conversations we had this week. People trying to understand exactly what China has restricted and what they haven't and how that sort of that impacts.

36:13 Because my understanding, they've they've not only the they're restricting the lithium cathode, is it, Steve? Again, so you're better placed to answer that. Yes. They they they they are putting expert controls on the very high energy density batteries and and and cathode technology. It's as as Steve says, Dan, it's cathode materials of high density, in particular, LFP as well, and also on graphite that it goes in battery anodes. And it's not a prohibition. It's just export control at this point, so they the exporters would need an approval to export those materials outside of China. So how much is that likely to impact on Western companies in terms of their supply chain?

37:05 And does it have a will it have a meaningful does it have a significant impact on our potential in terms of end users wanting to come and get lithium carbonate from us in order to do then? You know, can they actually manufacture lithium cathodes outside? Yeah. Yes. I I think many Chinese companies have have been recognizing the the geopolitical issues. So they've been making massive investments in in Western countries in cathode technology and and LFP batteries. So you have, you companies like Goshen and CNGR developing LFP plants in Morocco. There's LFP plants going up in in in in South Korea.

37:52 There have been joint venture discussions even in The United States. So so, yeah, there there's a recognition that there will be more LFP batteries produced outside of China. Thank you. That to be would to be done because as of today, more than 95% of the production of LFP cathodes happens in China. And as Steve said, both Western companies and Chinese companies are trying to build capacity to manufacture those cathodes outside of China. And we can provide that lithium carbonate from a source outside of China to those plants. Well, let's see how the world unfolds. We'll be now so everybody will have the next update will hopefully be in four to five weeks as soon as we have further clarification on the sale.

38:45 But, Ignacio, thank you for all of your time this week. As always, Steve and Ignacio, great thank you to to both of you for making yourselves available to update to everybody. We'll hopefully be able to circulate around some news in a few weeks' time. And then we're gonna undertake a a lot more marketing and investor relations. We felt that we really needed to get some further clarity on that before we started doing too much new marketing into to new potential investors. I think the last thing, obviously, is some other questions where that, in the meantime, in the background, you guys are continuing to have preliminary conversations with various strategic partners, industry players, etcetera, and just to update shareholders that they continue at a substantial pace. Yeah. And and then from my side, I just want to say, well, thank you for everyone attending, and thank you for everyone that I've met this week here in person.

39:44 And finally, this this should be fun. The next few months should be quite exciting because we will be having news about the indigenous consultation, about the new streamline process, the PFS. All of those things should be happening in the next following months. So keep an eye for news from the company, and and as always, thank you for following us. No problem at all. Laurie, this last question just popped up from Laurie about the warrant terms. Laurie, if you message direct Daniel at fox hyphen davis dot com, they they are in the RNS. You will see them on CLEANTECH's website. Under the tab there, you'll see the RNSs and the terms of the warrants are are detailed in there.

40:31 If you have any further information that you request, if you would like to email Nick Baxter. I think his details are on the website or certainly to info, then we can get back and and take you through it in detail. But I I don't wanna dive too much into the menu, shy, with everybody here. Ignacio, thank you very much. With that, I'll I'll I'll hand back to meet the company. That's great. Daniel, Ignacio, Steve, thank you very much indeed for updating investors today. Could I please ask investors not to close this session as you'll 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 we greatly valued by the company. On behalf of the management team of CLEANTECH LITHIUM PLC, we would like to thank you for attending today's presentation, and good afternoon.