Gem Resources (LSE:GEMR) — Post-AGM Presentation

0:00 Good afternoon, and welcome to the URA Holdings PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time by the Q and A tab situated in the right hand corner of your screen. Just simply type in your questions and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. And I'd now like to hand you over to Bernard Olivier, CEO. Good afternoon, sir.

0:31 Thank you very much, and thanks everybody for joining me today with our investor presentation. As said, we'll we'll go through the presentation, and then I think there'll be ample time afterwards that we can cover all the questions, and, hopefully, I can answer most of them for you. So to start off then, URA is listed on the standard listing of of the London Stock Exchange. We listed just over a year and a bit ago on the second of March last year, and URA is now solely focused on the development of the Gravelot Emerald Mine back into production, which really came about the work that we've done last year as well where we have established the first ever resource on on the Gravelot Emerald Mine in its history. And it's a seven year a seventy year mining history, and there's never been a formal resource estimation ever done on it. So on the back of of what is we'll talk a bit more on it later. But on the back of that resource estimation, we are now progressing into taking the Gravelot Emerald Mine, used to be the world's biggest emerald mine at one stage in the sixties and seventies, back into production.

1:55 On the board and management side, I'll probably take a little bit of time and and just cover especially my chairman, Ed Nielen. Ed Nielen founded Aquarius Platinum. He developed it into the fourth biggest platinum mine in the world. He's a geologist, and he is quite well known in the mining industry. He's done quite a few other successful mining companies and mining projects. And I've personally been working with it for the majority of my career. I've probably been working with it for about twenty twenty two or so years by now. I'm also a geologist. And as I said, with it, Neil, and we've done quite a few things together, including Tanzanite one, which was listed in 2004 when it basically came in and brought it to London as a listing.

2:44 And I've been involved with it as CEO since 2008. At one stage, it was the biggest dividend payer on AIM, I believe. And, also, we were by far the biggest producer of Tanzanite in the world until 2014 when we sold the the Tanzanite mine, predominantly due to issues in Tanzania with illegal miners. Some of my employees were unfortunately killed in the process, and, effectively, the government took control of half of the company in Tanzania in the process. But it does mean that Ed and myself has got a long history and experience in the color gemstone market, and and we are applying that that knowledge to to this emerald mining project, which is a unique opportunity. And it's also because of that history that the that the project was offered to us very shortly after we listed on on the standard listing in London.

3:51 And then Peter Redmond as well, very experienced corporate finance. Peter has got many years experience in London. So together, there's a team that that's got significant knowledge of corporate markets, geology and mining and color gemstones.

4:11 So then a little bit more on on the gravel at Emerald Mine. It's it really started production of 70 for seventy years in 1929, I believe. In the nineteen sixties, it became the biggest Emerald Mine in the world. And in about 2002, Gravelot Gravelot ceased operation. It was put in care and maintenance. And the main reason for that was predominantly that there was a change of ownership. There was quite a few sort of complicated ownership structures. And and I think because predominantly of those ownership issues in 2002, it was put on on halt. It then took quite a long time for for the sort of ownership structures to be to be resolved.

5:01 And and Magnum Mining subsequently in 2015 acquired the project after the ownership issues were resolved, And we again then got offered the opportunity to acquire it from Magnum last year. The reason that the opportunity came about to buy it from Magnum, which is a ASX listed company, is they started to solely focus on their pig iron project in The US, which was building a lot of momentum, and they even looked at a listing at that stage on the New York Stock Exchange. And a color gemstone project, especially one in South Africa, would have complicated their listing process. So because of that, the project was offered to us on extremely favorable terms.

5:47 Effectively, we are paying it out of future production capped at $2,000,000. And and when the opportunity came about, we we immediately seized it. A little bit more background then on the GEMRELT. The the Gravelot Emerald mine is, I think, a 113,000,000 carats of production history over its seventy year life of mine. It had at one stage over 400 people just doing sorting, and you can probably imagine the amount of issues that comes with 400 people handling the emeralds and and probably a significant amount of theft that also came about it. The the project itself is located in South Africa in an area that is quite close to the Kruger National Park. It's about 50 kilometers away from from the Kruger National Park, it is in a relatively well known mining district.

6:44 We are on the same power line that supplies the Balaburra Copper Underground Copper Mine. And and it's for us, currently, with the load shedding and electricity problems that is being experienced in South Africa, it is very fortuitous because because we are on that copper line or the the line that feeds the copper mine and the underground mining operations do not do not have any load shedding, our electricity is actually constantly on, which is currently in South Africa quite a quite a valuable thing to have. That said, longer term, now that public enterprise is allowed to contribute to the electricity in South Africa, it's only happened about six months ago, There's been an absolute surge in renewable energy coming in into South Africa. Various companies are now generating power from renewable energies, and it's set to overtake the state owned Eskom actually quite soon. So at the moment, there is a bit of a energy crisis, but by all accounts, in about two years from now, it will be predominantly renewable energy, and the energy crisis in South Africa is predicted to end.

8:02 Just carry on. The screen is a little bit small, so I can't always see where we are. So I'm just gonna flip through this as we talk. As I then said, there's a tremendous history on the Gravelot Emerald Mine, which, of course, when you're putting a project back into production, it's extremely valuable because there's seventy years of mining records. There's lot of information on the geology. There's a lot of already infrastructure on-site. Yes. We have to upgrade and do a lot of work on it, but it is just so much easier when there's this wealth of information that one can start off with rather than trying to do a project sort of from a greenfields level. Just out of interest, as I mentioned, over 400 sawtors, on the right hand side there is a photograph of the '19, I believe, nineteen seventies when this photograph was taken with a sorter sitting on a belt feeder with the emeralds coming past and then sorting it by hand from the belt. So it would have been quite a quite a sight to see at that stage, all that amount of people sorting emeralds.

9:14 Of course, now, luckily, technology has advanced, and with the use of optical or even laser sorters, pretty much two people can can do the work of those 400 people there. Very important thing. What have we been doing since we acquired the project is first thing that we did is make sure the resource is there. We we believed in both Ed and myself as known of this project for quite a long time. I've visited quite a few times in the past. We also have been working with other projects with a geologist called Roy Spencer who works for ACA Howey. And Roy himself as a geologist has a long history with with the Gravelot Emerald Mine as well as another geologist at ACA Howey called Dave Langlett and oh, sorry. John Langlett.

10:05 And with the knowledge that and the information we got from them, they they felt very strongly that there is a very significant resource left at the Gravelot Mine. It was sort of thought, I suppose, in the at the end of the the project that in 2002 that there isn't a very big resource left. But I certainly and so did it believe that the the open pits both open pits, the the COBRA and discovery open pits can be extended and that there will be additional resources. And that is exactly what we spent last year on is to prove that, which we've done very successfully. Following drilling and resource exploration work, eventually, in November last year, ACAO ACAO, we published its independent report on our Jaw compliant, and and Jaw is the sort of international standard whereby resources are published under the two main ones or three main ones are JawC and forty three one zero one, which is the Canadian system, and then SAMREC, which is the South African system.

11:10 But they're all pretty much similar. We we tend to prefer to do it under the JawC code. Anyway, ACA Howey published the official jock resource, independent resource calculated by them. And the main the main jock resource is 29,000,000 carats, which is extremely significant because it is basically an extension of of the two open pits. The grades are very, very similar to what what we've previously seen in the historical mining records, which is roughly about six to 6.4 grams per ton. And we are extremely happy with being able to achieve the first ever resource, never mind jaw compliant resource, that was established on this mine. And that gave us the confidence to now proceed with, I suppose, a stage or phase to phase restarting of mining operations at the mine.

12:14 In addition to the formal jock resource, there's also what is under the jock code called expiration targets. Now under expiration target is an interval. It's not just a set number. Expiration target is somewhere between two numbers. So there's a bottom end and a top end. And in our case, there's been 12 additional jock expiration targets that was identified by ACA how how we that is in compliance with the jock code. And that interval is sitting between a 168,000,000 carats and 344,000,000 carats. Now to put this into perspective, and remember, it's all under the jaw code, is over the life of mine of the historical mining operations, seventy years of it, there was about a 113,000,000 carats produced, and we're looking at not only 29,000,000 carats officially in a resource, but potentially another 168 on the bottom side to 344, which is effectively, therefore, three times more than ever produced over the seventy years life of mine in a exploration target.

13:23 Now our aim is not to now go and currently convert that into a formal resource because that will require significant more drilling, and it will be a few years. Those sort of conversion of resources can happen down the line. 29,000,000 carats is a significant resource, probably at peak production during the last seventy years, it would have been 3,000,000 or so carats per year. So we're still looking at a life of mine currently at peak production rates of historical mining of about ten years. So I think that gives us more than enough time over the next ten years of of mining to be converting additional resources from exploration jog exploration target to a formal jog resource.

14:08 And, therefore, our focus is now to move away from exploration and actually start a very sort of well managed small scale, but stage wise conversion from exploration into mining. And our goal is very much now to to start up production again at at the mine.

14:31 As part of the the resource work that ACI, how we did, they had to model the entire deposit, and they've generated three d models for us so that we can look at the ore bodies. The two main ore bodies is, of course, the discovery pit. I'm not sure if you can see my cursor, but this is the discovery pit that's modeled, and that is the the cobra pit. They basically run almost perpendicular to each other. And this is where the current open pits that's been created over the last seventy years are located. And, basically, our resource is an extension of those two open pits, basically, to the North Northwest and then also to the Southwest. There's a nice photograph, if you can see it, of the schist that is holding. It's basically a biotite schist that is hosting the the emerald crystals, and this is a typical example of the crystals.

15:24 The emerald crystals or beryl is the mineral that is sitting in that biotite schist. Again, another photograph of the biotite schist with the emerald crystal from the Gravelot Mine on the right hand side and additional cross section generated by ACA Howey of the sort of central part of the Cobra Deposit in this case.

15:55 So for the restarting of the mine, as I said earlier, we are very fortunate that there is quite significant infrastructure, but it has been standing dormant for a while, and it therefore needed refurbishment, which is what we've been doing, I suppose, after the the resource estimations have been done and we we saw that it will it will support a significant life of mine and mining operation. Sorry. I just saw a question coming in saying that there's significant delays with our feet. Is anybody else experiencing a delay, and and can can you hear me?

16:37 Hi, Bernard. We can hear you perfectly. I think the the delay is actually a question about something else. It's not to do with Oh, sorry. I I misunderstood. I thought it's delays on the current presentation. I'll I'll definitely look at the question then post presentation, and we can cover it then. So, yes, there there's significant infrastructure on-site. You can imagine a life of mine of seventy years in the past, a big historical mining operation, but we needed to work on upgrading infrastructure, electricity, water, and I'll talk more on this as as we go further through the presentation.

17:18 This is a satellite image. Again, you can see the two the two open pits there and there. That's a runway. That is the office and plant building, and this is some accommodation on the side.

17:34 And that's from a recent site visit. My chairman visited us from Australia at Nilan. It is standing in the middle there with our team on the gravelot mine standing in front of the dewatering screen of the of the processing plant. And we've also released, I think it was on Wednesday, an update on the work that we've been doing to basically take this project forward into mining. Now none of this sort of items on that list probably looks extremely spectacular or anything that that looks of critical nature, but you need all of these components to come together before you can have a successful restart of mine. So bear with me. That might look insignificant, but having water is critically important. Having storage facilities is critically important. So one of the things we had to do is recreate water storage facilities. We've now got about a capacity of 20,000,000 liters, which is a significant amount of water that we can store on-site with pumping stations, piping, and so forth all in place.

18:38 We've also had to upgrade our site security. We've now got it fully electrical fencing around around the perimeter of the site as well as around some key strategic infrastructure. We've worked on the remember, this is a historical mine. We've worked on the rehabilitation of some of the historical tailings and dumps that's on the mine. This is part of our environmental responsibility, so we have taken over that responsibility. And we've pretty much already done now over 50% of the rehabilitation that is required under the EIA, and we are making significant progress. So there will no longer be a old environmental liability hanging over this project either, and we're doing all of that, you know, without breaking the budget in a very sort of responsible way, making good progress.

19:29 Other things that we've done is just sort of upgrading of electricity. We've replaced or upgraded about 80, I think, power poles, upgraded some of the switch boxes, the the DB boards, and just general things that is needed in order for us to be able to move into production in the near future. We've we've refurbished and upgraded some of the management accommodation to the point where management and and everybody that's currently involved with the project can stay on-site. It, Neil and myself, when we visited with international gemologist who's more on this buying and selling site, we stayed on-site. So site is now, you know, really coming along into the point where it is getting closer and closer to being able to actually become a producing mine again.

20:24 We've also upgraded the dewatering and screening circuit, and there's more work to do on the actual processing plant with the crusher and milling circuit, and that is sort of our our next stage now is that we're starting to upgrade the crushing and milling circuits as well.

20:43 So we're making good progress then, obviously, in on the mining side and mining preparation side and infrastructure side. But where are we globally, I suppose, in a color gemstone? It's not something that's that well known. There isn't a lot of color gemstone companies that's listed out there. And I suppose that that sort of raises questions as to what is the color gemstone market doing, how are price trends, and especially then with emeralds, where is it going? Is it currently going up or down? And I think a very good reference that anybody who wants to do more research can go look at is is GEM Fields. GEM Fields is also listed in London on AIM, and GEM Fields, I think they listed about three years ago. GEM RESOURCES own the K Gem Emerald Mine in Zimbabwe that's in Zambia, sorry, And, a ruby mining operation in Mozambique.

21:39 And the KGM mine is now the biggest producer of emeralds in the world. And GEM Fields, through their auction system, do publish their their marketing information, the auction information. So it gives you a sort of good reference as to what is happening in the Emerald market and price trends. And if we then look at it, very interestingly enough, despite us going through the whole period of COVID and all of the issues that went with it, colored gemstones actually didn't fare too badly compared to a lot of other commodities during that period. As you can see there if I can zoom in a bit. Sorry. That's too small for me to see.

22:27 Bernard, what you can do is if you hover your mouse over the slide deck, you can Yes. Put it in full screen. So if you hover your mouse over the slide deck in the top right hand corner, you should be able to see full.

22:39 Look. I think it's fine like that. I can I can sort of see at the back end here? If can people see my cursor? Can they see them pointing? No. They can't. But the the the size are are larger for the attention. The second slide, if you look at sort of over 2020, you can see the dip that was caused by by COVID and the lockdown. But compared to a lot of other commodities, it's actually quite insignificant, and the recovery since then has been ongoing. In 2021, GEM RESOURCES reported a significant price correction again post COVID and actually started to achieve record pricing through 2021. That trend continued through 2022 when GEM Fields had five Emerald auctions, and they had revenues of over £125,000,000 during twenty twenty twenty twenty two.

23:33 And they kept on seeing seeing emerald prices increasing, so much so that GEM Fields have just finished up another auction in beginning of June this year. And, again, it was a record breaking Emerald auction. They they had total sales of $43,700,000, and the overall price that they had for the price per carat is a $165 per carat. Now this is the top end stones that they were selling, but that is again, that's a all time record for for emeralds. So there is clearly a continuation of increases of prices. A lot of this would be driven by by GEM Fields and their marketing, but also consistent supply and, very importantly, having this source of, basically, provenance where they can show that this has been responsibly mined, and proof of provenance is becoming more and more important.

24:32 And, of course, on the Gravelot side, we've got exactly the same as we are able to comply with all international regulations. There's clear proof of provenance, that's extremely important now in the color gemstone industry as it is with the diamond industry. So just to recap, if we look at these graphs, this is from pretty much the only independent body that that does valuations and price modeling, which is called GEMVOL. So here we can see GEMVOL showing us from 2020 through to 2021 and up trending curve on the prices for for emeralds. And at the bottom slide, it's pretty much a ten year a ten year graph. And you can see from about 2014, there was a significant price increase in emeralds, which then was maintained through a little dip in 2020, and now it's unfortunately, the graph stops at 2021.

25:31 But as you can see already from the published data by GEM Fields, it just continues to to meet a price increase and record prices. The next slide, this is again a bit more information from GEM RESOURCES. They break down market value of emeralds, and this is a colored chart of emeralds on the left hand side. And what is interesting is that the most sort of highest value color for emeralds is what is called the bluish green, and that's the top the top square there. And bluish green fetches the best price and the highest price. And bluish green is exactly what the emerald mine at Gravelot is known for. It is considered to be some of the best colored emeralds in the world.

26:21 And that is what was driving almost that seventy years or more of of production is the color of the stones. So we are very fortunate that we're sitting in that biggest biggest bracket of or the highest bracket of color. GEM fields, on the other hand, the the color is a bit more yellowish green, but their sizes are, again, what what benefits them. They get some really large crystals. So maybe not always the best color, but some larger crystals. And then if we look at the right hand side, this this for me is quite an interesting comparison. It's, again, GEM RESOURCES a colored gemstone versus diamond graph. And what they're showing here is the trend for colored gemstones from 2005 through to, I think, 2021 or '20.

27:13 And it shows in red the diamond graph. And at about 2013, colored GEMs then started to overtake in terms of of growth and and price increases the the the diamond line. And diamonds actually leveled off and and actually decreased a little bit since 2014, 2015, whereas color GEM stands continue to increase in price. And by where we are now, there's actually quite a significant difference between this index with colored gemstones continuing to increase in price, whereas diamonds are actually softening slightly in price. I think just to to recap a bit as we're coming sort of to the last few slides is what makes this quite an exceptional opportunity for a company like like URA is is the fact that there is this large historical database, seventy years life of mine, existing infrastructure, a granted mining license that has got still another twenty odd years and can be renewed in addition to that, and the opportunity to give us near term near term production at very, very low cost.

28:33 Secondly, the resource that we were able to establish last year, it's a very significant resource. 29,000,000 carats where we are sitting now with an additional 168 to 240 344, that's a that's a error in there, million carats in an exploration target means that we can quite comfortably commit to putting this back into production and not worry that we're gonna run out of out of ore and out of Emerald's mine. In addition to that, there's the the prices that's been achieved recently by GEM fields and a a clear market trend that color gemstones are becoming more and more popular. And if we just look at roughly the lowest product that GEM RESOURCES is selling, and we take that, and it's roughly $9 per carat. And that is what they called commercial grade, which is a nice name for their lowest grade.

29:27 And we just assigned that to our 29,000,000 carats. It actually gives us a value in the ground of 261,000,000 carat million dollars in the ground that we currently have in that resource. Now I'm not saying we're only gonna get material that is the lower end of the GEM field spectrum. I'm just showing you a very conservative estimation should we use their lower absolute lowest product that they are that they are selling. To put things in a little bit of prospectus perspection as to, you know, what we what we potentially have here. Also, then the next item is that the Gravelot Emerald Mine has got brand recognition. It's also known in some places as I said, India as the Cobra Emerald Mine, and it is also known, as I said earlier, for its quite exceptional colors.

30:15 So, you know, it already helps when you've got a brand that is it's now been a few years, but it's a lot of people that remember the cobra emeralds or the gravolite emeralds, and it's exceptional colors. And then finally, I think is also the fact that the board the board has got experience in colored gemstone. And the advantage of colored gemstones is that a small company like us can actually take a project into production. The the CapEx requirements for taking a colored gemstone mine into production is a fraction of the cost of, for example, starting up a a gold mine or a copper mine or, you know, almost any other commodity. And, you know, we have estimated that the CapEx requirement that we need to restart is about a million pounds, and, you know, that's about a quarter of our market cap.

31:12 I, you know, I think there's very few companies that's trying to restart a mining operation where the CapEx requirement is is just a quarter of their market cap to restart mining and and start revenue producing and with a very good modeling estimation of profitability. So, really, it is something that is well achievable. Numbers are not outrageous in order to get us back into production, and, you know, we've got a clear path on how to achieve it over the next six to twelve months. Just to recap a little bit because we we did originally list on these strategic minerals in in Zambia.

31:57 Now those projects are not at all being discarded. It's just we've put it on the back burner. The licenses are in good standing. We do have these projects still in Zambia. It's a combination of niobium, tantalum, beryllium, rare earth elements, and graphite, but it is extremely greenfield. And, you know, we can probably drill out that million pounds that would get us into production on gravelot. We can drill out a million pounds worth of drilling on these projects and maybe not even have a jog resource, never mind a sizable resource. So in terms of of deciding where to best invest money, which, you know, in current market conditions are tight, everybody's feeling the inflation, is we believe money spent in getting the mine back into production and actually revenue producing and and profitability is where we should be focusing on rather than the greenfields exploration projects in Zambia. As much as we all, you know, like critical metals and strategic minerals, it will require a lot of a lot of money to take it forward.

33:04 So our strategy is effectively get the Gravelot mine into production, start producing revenue. And then once we've got more profit and we know what to do, we can always then start to see, you know, if we wanna continue with the drilling and work on on these projects in Zambia. To to then just as a as a sort of second last slide, capital structure. Share price currently is about 2.45 p or 2 and a 2.5 p. We listed at 2 p, so it's had a slight increase. But I think only now that we've got clear strategy, we've done the work on the resource, we are starting to ramp up on on advertising just what we have. We needed to make sure that we are comfortable with with the path forward, and I think you'll see a lot of more news flow coming out as we progress this back into production as well as, you know, our PR campaign so that this market awareness is also now starting starting to ramp up.

34:08 Market cap at the moment is about £3,800,000, and it's a pretty tightly held share structure as well. I'm coming to the the end of of the presentation. So I think just to to recap, I think we've got a tremendous opportunity to put a a famous mine back into production. It's a near term production goal, six to twelve months. Successful team behind it, you know, as I sit with, especially somebody like Ed Nielen, who's built the world's fourth biggest platinum mine. There is clearly experience there and ability to to start up mining operations. And a clear route for us as a team, including our shareholders, to take this forward and unlock value.

34:58 GEM Fields, just as a reference again, is actually highly profitable, which shows that GOLOR GEM RESOURCES certainly able to be a very profitable operation. GEM RESOURCES market cap, I believe, is around 200 and 200,000,000 or so pounds. They had revenue last year of $340,000,000, and I think their profit margin or their profit was about a $100,000,000 in profit. So it it sort of reaffirms that color gemstones can be very profitable, and it is a bit of a niche market, but I think we've got a very unique opportunity. Thank you, ladies and gentlemen. That's the end of the formal presentation. I think now we sort of switch over to questions and answers Yeah. And and the general discussion.

35:54 Bernard, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just by using the q and a tab, which is situated on the top right hand corner of your screen. But just while the company take a few minutes for you those questions submitted today, I'd like to remind you that recording of this presentation along with a copy of the slides and the published q and a can be accessed via your investor dashboard. Bernard, we have received questions through today's presentation. And if I could just ask you to read out those questions and give responses where it's appropriate to do so, I'll pick up from you at the end. Perfect. Thank you very much. I've I see there's about three questions on on funding and and what funds are available, when are we having to raise funds. So I think the first thing is is that, you know, the the CapEx requirement is the lowest you can probably want for restarting of a mining operation, but it is still a significant amount in the current markets. And therefore, we are taking it very responsibly. We've in May, we've done a capital raise that was oversubscribed.

36:55 We did it pretty much at no discount at the market price. We raised £330,000, which was our available headroom at the time. It was strongly supported by our our shareholders and board as well as other other people who came in into that placement for the first time. So, you know, I think the path forward is is clearly we are going to have to raise more money as we go ahead, but we're doing it in smaller sort of increments. And we then deliver, and they will be, you know, clearly seen sort of path towards production with what we are achieving along the way. As for Wednesday's announcement, which, you know, I think although it looks pretty boring perhaps, it's very important that all these things fall in place before a mine can go in production.

37:48 And and there'll be, you know, more of these sort of milestones that we achieved leading up into production, and we will raise the money as and when required over the next six to twelve months to get us into production with, you know, the support of of of our shareholders and the market. So I think we we will have to be very sensible and and understand that, you know, nobody wants dilution, and but we do need to to move forward as well. Luckily, the whole process is quite flexible, and we can we can raise the money when when it is the right time and not before it is needed, for example. And at the moment, we've got enough funds to continue with our current our current work for the foreseeable future. So I hope that sort of answers it, but, yes, we will just do it through effectively equity placements.

38:42 Debt financing is probably gonna cost us more just to generate the required documentation and feasibility studies than we need to raise in the first place. So and and even then, you're sitting with high interest rates and and a a debt load in your in your books. And so raising the required money in the capital markets is is the way forward. And as I said, we've we do have strong support from our our shareholders. If I go then to the next question, it's asking and this is, sorry, where I got I sort of saw it out of the corner of my eye. I got confused. I thought they were saying they're experiencing delays with my presentation. But now the question is, am I experiencing delays with equipment?

39:28 And do we have backups in case they are failure or are these sort of typical lead times for items. South Africa is well known for its, I suppose, mining history, and there is actually a lot of equipment available secondhand. So most of what we are doing on the mine is not new machinery that we are that we are using. We're reequipping and using secondhand machinery mostly. We're trying to get this mine back in production at the lowest possible cost. Once we are in production and we've got sort of revenue coming in, then we can upgrade and expand the the operations. But what we are doing at the moment is absolute cost saving. We're buying secondhand equipment locally sourced.

40:17 There's only one or two items and especially the optical sorter, which is a bit of a niche item. It's a custom designed optical sorter that has to be that through some test work that we've done was was designed, and this is one of the few items that we have to bring in from overseas. So other than that, the rest of the the crushing, the milling conveyors, all of those things are sourced locally, and almost all of it is is second hand equipment. Good quality, and we've got a phenomenal team who are able to to maintain and and even upgrade these second hand machines for us. But, yes, we are doing it at the lowest possible cost. Next question is what sort of milestones do we do we expect to see as we sort of restart mining operation?

41:14 And I suppose, you know, it's it's quite similar to what we've announced on Wednesday. It's it's just talking people through what we are doing on-site. For example, if we if we order and if we purchase a major piece of machinery, we will update the market. There's also other work that we're happening in the background with on the sales side, we've got quite a few interested parties who wanna come in and and sign potential agreements with us. So I suppose over the next six to twelve months, there will be quite a quite a bit of news flow as, you know, we progress forward into production. And anything that we are doing in terms of equipment that is being installed or supplied, I think we will we will update the market and and take you through it all as we as we progress.

42:11 The next question is how would the emeralds be sold to the market? So the current gemstone market as shown in especially emeralds as shown by GEM Fields has gone through a bit of a transformation, and a lot of sales are now done through the auction system. When I was running Tanzanite One, we mostly use a site system rather than an auction system. We did do some some auctions, but it was predominantly a site system. But the auction system now seems to work very well for GEM Fields, and it's becoming more and more used in in the industry to have auctions. If it's correctly graded and sorted, some of these auctions are even blind auctions. People know exactly that they are going to buy this sort of group of of a bit like the diamond industry, this classification of stones in this quantity. And and therefore, in these auctions, some of it is is currently happening for GEM fields even as blind auctions.

43:12 So we will we will not try and rent a reinvent a wheel and and follow a similar sort of path that GEM RESOURCES is taking with with auctions bringing in the the big industry players and a lot of overlap actually from from my days at Tanzanite One. It's some of the same companies are are also in other color gemstones such as Emerald. So we we will just follow a sort of known path to sell it into the market. Bernard, thank you for that. I think you've actually managed to address all those questions from investors. And, of course, the company will review all the questions submitted today, and we'll publish those responses on the investor meet company platform. But just before redirecting investors to provide you with their feedback, which I know is particularly important to yourself, Bernard, could I just ask you for a few closing comments?

44:01 Yes. Well, again, I would just like to thank everybody who took the time to to listen to this. I hope it was helpful. I hope it was able to explain a little bit of of what is happening in the color GEM RESOURCES industry, but also with with this project, which I think is a phenomenal opportunity to be able to put this Gravelot mine back into production. It's got such a long history. It's got a clear track record of being a very economically viable project. And over the years as well, emerald prices have just been increasing. So, you know, I see I I see a very exciting future ahead for the company, and I hope that that investors will join us for it going forward. Bernard, thanks once again for updating investors today. Could I please ask investors not to close this session as you'll now be automatically redirect to provide your feedback in order that the management team can better understand your views and expectations?

44:51 This will only take a few moments to complete, but I'm sure it be greatly valued by the company. On behalf of the management team of URA Holdings PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.