Dekel Agri-Vision (LSE:DKL) — Interim results for the six months ended 30 June 2021

0:01 Good afternoon, ladies and gentlemen, and welcome to the DEKEL AGRI Vision PLC Interim Results for the Six Months Ended 06/30/2021 Investor Presentation. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time via the Q and A tab situated on the right hand corner of your screen. Simply type in your question 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. These will be available via

0:32 your investor meet company dashboard and we'll notify you by email when these are ready for your review. I'd also like to remind you that this presentation is being recorded. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to Lincoln Moore, executive director. Good afternoon. Hi. Good afternoon, and thank you for all the participants for joining today to to hear about our interim results for DEKEL and and touch on how we think things are going to to play out for us in the the next six to to twelve months. As I said, my name is Lincoln Moore. I'm an executive director of DEKEL AGRI-VISION. I'd normally be joined, and and normally, typically, I join for the the half year and the the full year results by Shay Cole, our CFO. He's actually just up on a flight to Cote D'Ivoire.

1:21 As those who follow the company closely will know, we're in the process now of commissioning our cashew processing plant, which we'll get into detail later. So he has to excuse himself today.

1:38 So just in terms of what we will do today, I'll run you through the presentation as succinctly as possible and try to answer as many of the questions and welcome questions onto the side chat as we progress. But for those who are relatively new, we'll see a very brief overview. DKL is a is was a part of our business now as an agri processing business based all in Cote D'Ivoire. Our strategy is, I think, quite simple. We work together with thousands of small farmers in collaboration and try to assist them in terms of logistics and processing of agriculture products. Of course, for seven years now, we've been operating one of West Africa's largest palm oil mills, and we're obviously quite excited to be at the ultimate stage and be finally in commissioning of our cashew processing plant, our second production asset.

2:39 We also have two other projects which are in feasibility mode, one being a third commodity and the fourth being our aspirations in clean energy. Of course, it makes sense for us with the agriculture waste product that could be turned into energy, and we're looking to do this together with solar. For today, there's obviously, I think, enough to talk about within the Palmer operation and the pending cashew business, so we'll focus solely on those two businesses.

3:12 Just firstly, in terms of orientation for those also who are relatively new, you can see in the bottom right hand side is the location of an existing power business. This is the ANY side. It's about one hour drive from Abidjan and Abidjan Port. In fact, we we we rarely use that port for this business. Almost our entire product, the crude power, the pumpkin oil, and the kettle cake sold ex factory, which is a huge advantage for us in terms of being able to market our material locally. Further to the north in Tierpasu is the location of our cashew processing plant. We'll also show you some pictures later. The road to to pursue excellence, the the capital or the the political capital, Yamaseokra, just the south, is a very good road from Abidjan to Yamaseokra because of Yamaseokra's importance.

4:07 So it's a three and a half hour drive. This will be the the cashew business will be an export business, so we'll be using road transportation to port and then shipping our our our finished product to our cashews in shipping containers. In terms of where we we see ourselves, we see ourselves, continuing to, in time, diversify, AGRI-VISION in Cote D'Ivoire. It's by far the most significant agri country in, West Africa. The result of that, the the logistics, the the human capital, and infrastructure are all excellent in terms of agriculture. It's it's number one in the world in cocoa. It's two or three in cashews, significant in West Africa from a palm and and rubber coffee point of view. So there's a there's a lot of other opportunities for us within Cote D'Ivoire.

5:00 So just now focusing in more on our Parmore operation and results for the six months ending June 2021. These are the production numbers that have been in the market for some time, so I won't spend too much time on this slide. Really, other than just know that the key drivers of the successful half year really stemmed to the increasing quantity of the fresh fruit bunches that were collected this year versus last year, 16% up, and we'll touch on that in bit of detail later, but very strong palm oil prices, 35% up on the same time last year, which had been the major drivers of the results themselves. Just turning our attention to those results. I've tried to helpfully set them out in each year so you can sort of see how we've progressed.

5:54 H1 twenty twenty one was a record for us in terms of revenue. Again, the main driver being pricing. It was a record in terms of EBITDA and a close record in terms of net profit after tax. I think when I look at the results, I always look at areas that I think, you know, where could we improve even further. Of course, this year, we had a much better gross margin percentage at 22.6%, which is mainly driven by the better pricing. But still, you know, that line is still lower than where we have been in the past in 'sixteen and 'seventeen. I think there's a couple of things there. One, the extraction rate was down this year, and that is largely out of our control in terms of ore content in the fruit, but we are doing a maintenance program at the moment in terms of the empty fruit punch press and in terms of the ore separation process.

6:51 And we think extraction rate, which was less than 22% for the first half, potentially move back to traditional levels, which is actually quite a material number. A one percentage point increase in our extraction rate over a year can add at least €1,000,000 of direct EBITDA. On top of that, it's important to note this is the first six month period where we carry the operating costs of the cashew business, which is not yet operational. So there's approximately €200,000 within the EBITDA So that is an addition to last year as well. And it's important to note that stock on hand was reasonably considerable at the end of thirty June. We were holding just over 1,900 tonnes of crude palm oil, which was has been sold through Q3. So it's more of a timing issue, and those results will be reflected in the full year results. And as we stand now, our stock levels are virtually back down to to zero.

7:57 In terms of the results, obviously the profitable period has assisted our balance sheet. So you will recall we did an equity raise to to assist us as we moved into cash and production at the start of the year and also entered into a a bond facility, we drew we drew down approximately €5,000,000,000, towards the start of the year, and this has materially improved both the the short term working capital position of the business and the net asset position of the business. We think, and we'll touch on why we think the results can improve next year as well, that natural organic growth and profitability can further improve our balance sheet next year, and that will be the main driver of further strengthening our balance sheet. But as it stands now, this is probably the strongest position we have been, but, you know, we seek to further improve the balance sheet position of the company.

8:57 So palm palm oil prices, no doubt, particularly in the last few weeks, everyone is is being drawn to to news on the various commodity prices, gas, coal, and others which are being heavily publicized. But across the board in commodities and and in food, is perhaps perhaps not as well known on AIM, Prices have been increasing for some time. We we share some of the the same reasons as as things like gas and coal in terms of there has, of course, due to COVID being supply restrictions and now logistics challenges. But the the fundamental reasons of the palm oil price increasing go much, much deeper.

9:45 Before COVID, there were already very strong or very low stock levels of of palm oil and the price was already on the way up before COVID hit. If we go back to April 2020, the price shortly dipped last year for technical reasons like oil did and like others did, but then you can see on this graph that the palm oil price has steadily gained, and as I looked this morning, it was sitting at $1,285 a ton. Now just looking at what we did in the first half, we averaged let's move it back into US dollars, around 1,000 a ton, and at the moment, we're doing around $1,150 a ton. So the the scope for prices stay at this level for our high season, which is certainly a few months away to even be better than it was this year.

10:36 So so supply wise, Parmal remains incredibly tight. You've got the overlay of the COVID structural reopen issues impacting it as well. And then demand side, of course, as markets reopen, people are looking to to restock. And, you know, one of the interesting stories that that that I follow is, you know, how much stock countries will want to hold on hand as we move perhaps into a period where the people countries want to protect and have more stock on hand than they previously did on a on a scale where they knew they could source as and when they're required. What do we think in the next six months? I think the prevailing view is that we're gonna see very strong panel prices over the next period. Perhaps from my point of view, maybe there could be some additional supply out of Indonesia potentially if they reduce their levies and taxes.

11:33 But on the flip side, then you've got countries like India, which traditionally ran quite big tariffs on palm oil, and it's it's unlikely to see those stay at those levels or increasing at a time when when prices are at at at a rural level are so high. So for us, anything over a thousand dollars a ton is is excellent, and at these prices, $1,200 plus, you know, we're we're talking about a very super potential high season coming up early next year.

12:05 Of course, as I I pretty much focus on what is gonna happen in six months, but our view remains bullish on on palm oil. That the major producing countries, Malaysia and Indonesia, have had substantial reductions in planting over a very long period of time now. And you need to bear in mind that they still produce over 80% of crude palm oil, and crude crude palm oil is over 40% of all vegetable oil. So it is quite significant, and it's really difficult to see where that supply side is going to be picked up. In my view, in terms of the demand side, palm oil is an essential product. It's in over 50% of products on the supermarket shelves.

12:53 GDP type world growth of 3% to 5% on a situation where supply is constrained leads us to a view that there could be a very bullish period of palm oil prices over a number of years to come.

13:11 So, of course, the Pummel business, and we'll we'll touch on it again at the end, has been it's been been fantastic for six months. And I think we we potentially position for a better first half next year in the high season. And coming together with that is is our cashew processing plant. I could say it's been a it's been a slog over the last twelve months. I think from a from a COVID perspective, Cote D'Ivoire has had had a lot less impact locally than perhaps other countries in Europe, but we haven't been immune to challenges in sourcing raw materials and and logistics. Pleased to say now we're in a situation where the mill has now started the commissioning phase.

14:00 We have 2,000 tonnes of raw cashew in our warehouse awaiting production, and we believe that we'll be in a position to have first production within fifty days. So what what I think we can see is a number of key milestone announcements over the next one to two months in terms of the the cashew business. Yeah. The absolute key for us over the next two and a half months of the so three months of the of the year is to ensure this meal is operating as effectively as possible to allow us to to scale up to close to full production as we can next year. So commissioning is is thirty to forty five days. It's it's it's certainly certainly very achievable, and the cashew season in terms of buying the raw cashew starts in February, so we have a a really critical three or four months ahead of us.

14:54 First of all, to create for concept the the existing commission process and first production and a number of the key KPIs and then move into the initial full scale production. But what we, you know, believe in time is that this business, and we'll touch on a little bit of the reasons why next next page, can be a a a larger EBITDA contributor or a larger larger margin business than our palm oil business. So it's it's got a heavy focus from the the management point of view. And just a reminder why we we chose Cashiers as our our second project. They k. As I said, it's towards the start. Katowar is number two or three in the world in terms of real cashew production, and there's a significant shortfall in local processing. So whereas the palm oil business, we've stagnated around 40,000 tons of production and the the capacity is is 60,000.

15:52 There there's a strong view that we can move the the cashew business towards its full production much more quickly. And then the margins that we're seeing, and we're getting some vision of that, of course, already in terms of we we can see what we're paying for the raw materials and potential selling prices potentially, we think, higher than the the power business. So we hope to prove those concepts

16:13 out over the next sixty days to ninety days. These pictures are a little bit little bit old, probably two weeks old, but you can see the top left hand side, the size of the two buildings. One one is deals with inventory and sorting, and and and the other building deals with processing all through to to final product for road transportation for shipment and and pictures of some of the the equipment inside. You you can see probably the bottom left, you see there's a there's a lot of room inside the warehouse. That's that's that's because all the infrastructure's being built to to effectively in time process 30,000 tonnes of raw material, and we'll be starting with 10,000 tonnes. So it's simply a case of adding another line, put all the infrastructure's in place to move to that full scale capacity.

17:11 So basic economics, we're sitting on at the moment 2,000 tonnes of raw cashews. Assuming we processed all that before the end of the year, we're talking roughly about 460 tonnes of cashews. And it's the determination of of the breakdown between the whole and and the broken in a whole. We're hoping the whole will be north of 80%, but we're we're conservatively estimating 60 to 70%. We're talking, you know, a a small initial contribution this year in terms of actually when the sales all take place. Some of the sales may take place into into January, but that that body of product on hand is around around about €2,500,000,000. And it's, of course, the next year where we should see the the full benefits of the first first size of the plant, the the 10,000 tonnes of raw cashews that can generate revenue at the current price is around about €13,000,000, and we think that the EBITDA contribution could be somewhere between 3 to to 4,000,000.

18:15 People may have tried to to look up cashew prices. We started at them here in US dollars in kilos. It's a high value product, of course, when you think about it per ton. We're talking about 7 to $7,500 per ton. What we're seeing in the last sixty days is prices start to to creep up. Not particularly surprising given most staple essential food products have already increased. Cashews is is more, as I said, a high value product and seen or viewed as a more medium to luxury products, and the the price increases has started to take a little longer, but we're seeing quite robust pricing at the moment. And I think in terms AGRI-VISION PLC, it's being in the space of cashews as well as an essential product like palm oil is gonna give us great diversification next year as well as increased scale.

19:14 Social environmental side, absolute priority for us at the moment. The social side, I do touch a lot on on presentations that that our business has it already in built in terms of the the relationships we have. We have the 3,000 small farmers at the the Pummel operation, and it'll be a similar number of small farmers that we work with at the the cashew project. So so working together with them, providing them a guaranteed place where they can sell their product, The assistance we provide in terms of our nursery setups, our fertilizer stuff, our discounting programs, our health insurance programs put us in really strong stead from a social capacity, and we work together really, really strongly with our DEFCO who is UK financing partner who have also heavily focused on the the ESG factors.

20:06 For us, now the critical focus is RSPO certification. We we had to preorder it done by Pro Forest at the back end of q one into q two and now working through the the audit points, which are a lot of administrative in in nature. We have calls over the next one to two weeks with the auditor to try and go through where we think we are in terms of readiness, which we believe we are ready for them to to to come out and do the certification. And I think probably the the the most obvious key announcement will be once we've booked the the certifier, which we're trying to do as soon as possible. So a huge priority for the the company. It's it's something we've been working out for for some time. It hasn't been easy with with moving consultants around over the last twelve months, but we are very close to the finishing line and and certification, I think, will be a strong endorsement for for our ESG along with the investment of of course, our DEKEL AGRI-VISION the business in general's ability of the business to assist more farmers.

21:20 So where where do we where do we think we we are and and and where can things look over the next six to twelve months? I think the the high season, which is starting in mid January, the this stage where power prices are, we could be better off by potentially another €100 a ton. So it could be a gain that could drive an improvement on the palm oil business. We think there's scope for improvement in the extraction rate. So those two points together, I I think, could drive a a further period of growth of the the power business. The the the quantity side, was reasonably strong, this year. There's a possibility it could be stronger with a much more difficult, to predict in terms of the the raw material availability. But overall, this this business, has has the potential in the first half of next year. There's no reason why it can't push to to EBITDA from from around the 4,000,000 mark to to close to to 5,000,000, for that business stand alone.

22:25 Cashier, of course, is is one of the the key milestones of of the company since its listing in on AIM. It will drive a material step up in the revenue and profitability, we believe, almost immediately from next year And in two to three years' time as we move it towards capacity, we think it could be a stronger contributor than the the palm oil operation. And, course, we have we have other other projects that I mentioned earlier that we are are working through the process to be ready to green light and move into each form of construction phase. So it's one of the strongest, probably, positions we have been. I think we're likely to report record revenue and, potential record EBITDA, for 2021.

23:15 And as I said, in terms of the the supportive price of palm oil and the cashew business coming on board, there there's a strong view that we can step up materially again in 2022. That concludes my comments for the moment, so I'm more than happy to take questions. Lincoln, thank you very much for your presentation. This presentation along with a copy of the slides and the published Q and A can be accessed via your investor dashboard on the Investor Me company platform. I'd also like to remind you that your feedback is important to the company. And immediately after the presentation has ended, you'll be for the opportunity to provide your feedback in order the company can better understand your views and expectations.

24:09 Lincoln, investors have submitted a number of questions before the event and during the presentation today. And I wondered if I could hand back to you to respond to those where it's appropriate to do so. Could I just simply ask you to read out the question and then say who it is from? Okay. I'll try and do this in some logical order by starting with some of the operational stock questions and then move into the the the the financial questions and then share price and and valuation and and investor relations. So the first question is is is a really good one. CPO prior production flatlined at 37,000, same as the two thousand sixteen, seventeen. What are we doing to to increase the volume, or is it likely to continue at this rate? I think, forgetting, of all, putting aside what we do, it's important to understand the market size. So when we entered the market in 2013, there'd been a period of virtually new planting prior to that and all the new planting has taken place from twenty twelve, twenty thirteen, fourteen onwards.

25:12 It takes four, five years to first yield, eight to nine years to get to any sort of close to mature yield. Planting rates have been significant in our region. We know this because we're one of the major suppliers of the plants from our nursery where we, on average, we're selling 3,000 to 4,000 hectares equivalent. So there is going to be organic growth around us, and that will be clearly the major driver in terms of moving from this line of around 37,000 to, you know, obviously, the next goal would be 40,000 to 45,000,

25:51 which is obviously we're hoping in the next twelve months we can deliver. Secondly, on top of that is maintaining improved improving our market share. So when we build the mill, we built it with a double reception and automatic tipping system. So trucks can come in and out of our mill, particularly in the high season when there's significant traffic far quicker than than than alternate mills. We built we have now seven logistics centres, so we're making it as easy as possible for farmers to drop their product at our locations. We compete with other meals in the region on price, known as a good payer. We sell discounted plants from the nursery.

26:40 We recently added in a health insurance scheme for our small farmers to incentivize them to to sell to us, which which also extends to to their their families. So there are a number of things that that we're that we're doing that there hasn't there hasn't been a lot in terms of meal sizes, a meal like us coming to the market, but there has been some, you know, smaller antiquated type meals established, don't conform to any environmental standards that don't don't pay for any of the typical property fees and levy fees. I don't touch on this a lot, but that has taken some of the reduction we work with the local authorities and other players in a sensitive way to ensure that all all players are following proper ESG rules. So so just to summarize, the the main thing is the is is the sheer amount of planting over the last five years coming through.

27:43 And if to give you any confidence at all, we've seen it happen in in other areas. Rubber is an example where people forgot there was a huge planting regime ten, twelve years ago, and that's coming on board as an example. And we hope it's the same with the palm oil. So hopefully, that covers that question. Next one was do we sell or forward sell? No. We we we don't forward sell a product. The way the way it works is the price for the start of every month in terms of the fruit and the the price we sell at is is essentially fixed. There are some market damage, but it's essentially fixed. So we have, you know, almost a a hedged in set margin at the at the beginning of the the month.

28:32 So we we haven't we haven't used hedging tools. We we look at look at it at at from time to time, it's it's you know, we we we obviously think people invest some in us because they won't have exposure to the palm oil price, so we're we're mindful about putting a a cap cap on that. I think one of the things we we're trying to do is it was it was particularly notable in our PKL this year that the local prices were materially lower than international prices, so find alternate international sales routes. You gotta bear in mind that that once you talk about exporting, you're adding on some sometimes a 100 to 200 per ton. So so it it's often better to to sell locally. But at this stage, we do we don't use any formalized hedging tools. And and once we looked at it, you know, they have been quite expensive and and could could actually take up by the significant amount of our gross margin.

29:41 There's a question on cash used in terms of the the tonnage. So, obviously, the next it will produce the so the next few months is the commissioning and and and first production phase. There's enough raw cashes on on hand that we can produce around 450 tonnes if we process it all in before the December 31, which is roughly revenue of $2,500,000 but it's really, as I said, I think the key is to make sure we get everything right and be able to move to closer to full capacity next year where we can produce something in the order of potentially 2,300 tonnes and it equates to revenue of about $13,000,000 which is, yes, we think it can be 3,000,000 to $4,000,000 of EBITDA, which is another question asking whether that 3,000,000 to 4,000,000 EBITDA was on the size of the mill we have at present or the scaled up mill that's on the size of the mill we have at present. If we move from 10,000 tonnes to 30,000 tonnes, the 30,000 tonne capacity we can move up to around €40,000,000 of revenue and EBITDA potentially.

30:51 We've modeled it somewhere between 10,000,000 to €15,000,000 depending on what you do, which what sort of assumptions you make on whole and broken and pricing, etcetera. So when asked about the price of, can you comment on how the price of cashews is recovering from the fall last year? Yes. I touched on on that earlier. We have seen the price of cashews start to rise. It's risen about 25% in the last three months. So at this stage, we've only been purchasing raw materials. So potentially, it's in our favor that we've been purchasing purchasing the raw materials at possibly lower lower prices. And and then as the the end product price has increased over the last few months, there's a potential that will be you know, the margins could could be could be helpful for margins.

31:57 But the price, it's it's it's the state the state guarantee issues is not it's it's it's a commercial market in in Cote D'Ivoire. So the I think you see in places like Tanzania and others where there's a lot more government interference. At the moment, as it stands, the price is roughly about $7,500 to $7,500 per tonne for the sales price. Next one is the timing of the third commodity. Is it likely across similar levels of investment as the Kashmir project? So the we we did a full internal feasibility about what our third quantity should be.

32:43 There are kind of two that we we thought were logical. And now in detailed feasibility, we there is a leaning towards one in particular, and we'll get the detailed feasibility internally back in the next few weeks. For in terms of timing, first of all, there's there's so much focus at the moment on, one, ensuring that we take advantage of this period of great palm oil prices and and through the high season upcoming and and doing everything we can from a maintenance perspective that we can capitalize. And two, with the cash coming into first production and wrapping up next year, you know, we are conserving funds. So I wouldn't expect any investment in a third commodity until the or even even really putting out the timing until we've stabilized the cashew business. But in terms of what it would look like from a CapEx point of view, it's if cash uses 10 to 11 in US, this one is more half.

33:48 So it is something that we have within our within our capabilities potentially from continued cash flow development from the the pulp business and potentially cash together with the the bond facility, which we've, this stage, drawn down five of 15, which I think dovetails well into one of the next questions. Next question is, as we're developing into a cash flow business next year or this year and next year, what is the plan? For us, we still think our debt levels are higher than we would like them to be. So the first priority will be to bring debt levels down a bit from the current levels before any dividends. And I and I think that, as I said, we've got other things to invest in. So I think there's a there's a capability and best value for shareholders is through capital gain at the minute rather than than moving back to a dividend model at this stage. So debt pay down, reinvestment in third commodity, and then perhaps and potentially scale up of the cash use, then perhaps we can look at moving to a dividend, which is something which

35:18 we would like to do. But we think at the moment, there's a growth trajectory we should take and diversification that we should take before moving to that model. So I just asked a quick clarification. Is it the the power mill 60,000 tons or 70,000 tons? I I would consider this as 60,000 tons, and I think you know, I think where we can see it it getting to is is 50 to 55,000 tons is is is doable. Now what we need to to get there is is is mainly gonna be in the high season. So when we're producing, let's say, something like 26 to 28,000 tons in the high season or or the first half of the year, that number needs to move up towards 35 to 40 and then 15,000 in the back end. So I would work off 60,000 as an absolute maximum, and the business stabilizing somewhere between 50 to 60,000 ton tons would be an excellent business model for us.

36:24 What is the labor market? More continuing questions coming through. What is labor market like in Cote D'Ivoire? It is it is from from a perspective of availability, it it is it is good. It it it is it is not suffering from the unemployment rates of of some countries, which are north of 80%, but it would be roughly 6%. There's a there's a there's a high amount of skilled local labor. Our entire operations team is is local, our entire labor force for the the pub business, which is roughly 300, is is local spit almost fifty fifty men and women and availability of labor and stability of our our labor team is is very good.

37:13 The the just moving on to share price and and and, you know, what what what is it is it it's basically be how it's worked this year, we we moved I think this time last year, I think we're about three p, then we we moved as we moved into the the high season with poll prices increasing, I think, by the end of January. We even moved above six p. We raised at five p around that time, and it's good to say that we've stagnated around the 4.8 to 5p over the past six months despite almost every announcement in terms of the power business being positive in nature arguably the main negative being slight deferral in the cash reprocessing part, which we're aiming for in July, is obviously, I mentioned, forty days from today. So there's been some deferral there.

38:17 We we in terms of hard valuations, we we think that the the business is on the part of this is standalone, potentially undervalued, we feel that there is almost zero value attributed to the the cashew business, which if you look at Arden's research, actually has a valuation potential higher than the the palm oil business. So from from a fundamental standpoint, there's no there's no reason why a £25,000,000 market cap that where we can move the enterprise value with these two business. Market cap is 75,000,000 to 80,000,000 and and and enterprise value to to around the the 100 mark is where we think. Of course, I invested AIM and and and one of the reasons I invested AIM is AIM is far from from perfect.

39:05 You know, we we have been, I think, slightly overlooked over the last six months as as people have focused on renewables, anything to do with battery technology has been where the a lot of the the hype has been, but I'm seeing more and more news on the food side. There are not many ways to play food on on AIM. I think down DEKEL is is is one way to play it from a particularly small cap point of view. From a from an investor relations point of view, you know, we you could always do more. We do these two two conference calls. We do the monthly production. We do regular interviews with directors to talk. I think the the the next major bit of investor relations that we would like to do is in the lead up once we have first production on cashews, and and I'll probably do that for a series of interviews with Crux, which is one that's it seems to be getting a lot of following, but do it in a in a in, you know, a four four interview format so that can follow the the cashew business coming to operation.

40:09 But I think, just generally, as we if the power prices stay where they are and we move into the high season at this level and we have the cash you onboard, they're gonna be the big drivers. And if you look back, even even in in the poor performing years, the stock price always gains momentum at at the end of the low season, which is in a couple months time, and it's through the first quarter of the the high season. So I think, cyclically, we're we're in a spot where I think power price sorry, the share price can move up as well. I've tried to answer it. They they have kept coming through, but I'll try to answer Lincoln, thank you. You've been very generous with your time there, and I think you actually managed to address pretty much all the questions from investors today. And, of course, the company will review any further questions submitted and publish responses where appropriate to do so. Lincoln, just before redirecting investors for feedback, I wondered if I could ask you for a few closing comments?

41:07 Yes. I I think where we stand right now, it's clearly been a record half year. The the size of the panel price is is is going to be or is currently higher, materially higher than what we we got in that half year. We're four months away from from the high season starting again. And at at these levels, that core business or these initial business can be more profitable. We've obviously got the the cashew business coming on and going to full production, which it will be also be a a a material contributor, but in time, I think I think larger than the the power business. So it's, you know, it's a step up in profitability of the core business, and then and then it's the introduction of the the cashew business with, of course, a pipeline of projects to come. So it's it's it's and I sort of use the word arguably a little bit, probably too much, but I think it's a really period of the next six to twelve months where where DEKEL could break through, you know, this business being 25 to 30,000,000 revenue through a business that moves up to 40,000,000 to $45,000,000 with a much more material profit line given the fixed overhead won't change a lot.

42:15 Exciting and challenging period for us over the next six to nine months. Lincoln, thanks again for updating investors today. Could I please ask investors not to close the session as you'll now be automatically redirected for the opportunity to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete. However, it's greatly valued by the company. On behalf of the management team of DEKEL AGRI-VISION PLC, we'd like to thank you for attending today's presentation. That now concludes today's session. And good afternoon to you all. Thank you very much.