Harvest Minerals (LSE:HMI) — AGM Proceedings 2023

0:01 Good morning, ladies and gentlemen, and welcome to the HARVEST MINERALS LIMITED annual general meeting. Throughout this recorded meeting, attendees online will be in listen only mode. Questions are encouraged. They can be submitted at any time via the q and a tab that's just situated on the right hand corner of your screen. Please just simply type in your questions and press send. The company may not be in a position to answer every question submitted today. However, all questions will be reviewed with responses published on the investor meet company platform where it is appropriate to do so. I would

0:31 now like to hand you over to executive chairman Brian McMaster. Good morning, sir. Good morning. Thank you very much, Jake. Good morning, ladies and gentlemen. My name is Brian McMaster, and I'm the chairman of HARVEST MINERALS, and I'll be chairing today's meeting. The format of today will be slightly different to previous investor meet broadcast in that today is actually our AGM, so we have some formalities to attend to first. And following those formalities, I'll I have a a list of questions here that people have submitted, and I'll go through and answer those questions in as much detail as I can. So please bear with me for the first few minutes. Unfortunately, I have to read through these formalities, and I have to read them out for the record. So luckily, there is only one resolution that needs to be addressed. So we're safe from from me waffling on too much. But as I say, bear with me, and I'll get this done as quickly as possible.

1:25 On behalf of my fellow directors, it is my pleasure to welcome you to this annual general meeting. As it is now 4PM Australian Standard Time, as we have a quorum of shareholders present, I declare the meeting open. Today's meeting has been convened in accordance with the Corporations Act. The notice of meeting was sent to shareholders on the 07/17/2023 and released to AIM on that date. We will take the notice of meeting as read if there are no objections. Let me introduce my fellow director, mister Jack James, who is present in Perth. Mister Luis Acevedo and mister Alex Penner could not attend and have sent their apologies. With regard to the format of today's meeting, we will run through the formal aspects of the agenda as set out in the notice of meeting. You will be able to ask questions in regard to each item to be considered as they are dealt with. With the formal matters completed, I will then open the floor to questions.

2:13 Voting will be on a show of hands unless a poll is called. As indicated in the notice of meeting, all valid proxies are intended to be voted by the chairman in favor of all resolutions unless directed otherwise. Let's now move to the items of business. Financial report. The annual report of the company and its controlled entities for the financial year ended 12/31/2022, which includes the financial report of the company, the declaration of directors, the directors' report, and the auditors' report was lodged with AIM on 06/30/2023.

2:46 The formalities require that I ask if anybody has any questions on the financial statements at this time, but I will say I do have some questions in relation to that, and I am intending to address those questions following the formalities in the the q and a. So if you don't wanna ask the questions now and you just want me to get formalities over and done with, that's fine. There will be an opportunity in several minutes time to ask questions. So I'll assume at this point that there are no specific questions, and we'll we'll address it in a moment. As this matter does not require a revoke, we will move on to the next resolution. As the next resolution concerns myself, I will now pass the chair to Jack James.

3:30 Good morning, Brian. Thank you, Brian. My name is Jack James, and I'll be dealing with the formal resolution for today's meeting. Resolution one is set out in the notice of meeting is to consider the following ordinary resolution. That for the purpose of clause 14.2 of the constitution for all other purposes, mister Brian McMaster, a director, retires by rotation and being eligible is reelected as a director. The proxy votes received on this resolution are as follows. Four, three million six hundred and seventy nine thousand four hundred and seventy four against 1,588,741. Are there any questions or comments on the resolution?

4:17 Okay. Well, I'll now put it to the motion. Those in favor, raise your hand. Those against, thank you. I declare the resolution carried, and I pass the chair back to Brian McMaster. Thank you, Jack. Ladies and gentlemen, that concludes the formal formal items of business.

4:39 And so I would like to thank you all for attendance and contribution today, and I declare the meeting closed. So as I said, that ends the formalities of today's meeting, but we do have some questions, and I'd like to go through those now. And if if if anybody has any questions as we go along, I'm sure you know how to put them into the q and a tab on the investment pro platform, and I'll ask them as we go. So in no particular order, this is how the questions were received, and I'll just go through them as they were received. Question one, why doesn't the board buy shares in harvest minerals at these low levels? The question is continually submitted to each update but never asked, which raises red flags. Obviously, I can only speak for myself, but I can make some general comments, and that are those are that specifically in relation to mister Penna and mister James, their appointment to the board is to be as independent directors, and their independence is obviously heightened by them not being shareholders of the company. So that possibly accounts for for their position.

5:44 In relation to mister Acevedo, it's not really appropriate for me to talk on his behalf, so I'll only speak on my behalf. And the answer to the question is, and I'm sure a lot of shareholders know this, that in the last placement some time ago at eighteen p or whatever the number was, you know, I put £800,000 in. And so I feel like I've got quite a significant investment already, and I feel like there's quite a lot of work to be done for me to see my investment hold. And at this stage, you know, I'm just trying to focus on recovering the ground that's been lost from my investment already, and it and that frankly accounts for why I haven't bought any shares in recent times. Question two and question three are very, very similar, so I'll I'll just combine them, and they both say things to the effect of volcanic rocks have been shown through enhanced rock weathering to increase the amount of carbon taken out of the atmosphere.

6:40 Are there any plans to market your product as a means of companies offsetting their carbon emissions by buying and using the product? The carbon market is very lucrative. The short answer is yes. We it's something we have been looking at in some detail for a little while now. We've been running some studies and various other things. I mean, at this point, to the best of my knowledge, a lot of this information is theoretical, and and nobody has actually sold carbon credits related to volcanic rocks, particularly in Brazil. They haven't. But not that's not to say it's not possible, it's not to be done. But there is, you know, quite a steep curve in terms of getting up that that hill in terms of getting one hour products accredited or registered or whatever's required and then getting people to recognize and getting it sold and all those sorts of things. Mean, people are probably aware that this stage is not even really a proper trading platform for carbon credits. So there is a lot of work to be done.

7:42 That said, we are participating in making sure that when things can be capitalized or monetized, we will be ready. So probably a bit of a verbose way of saying, yes. We are looking at it in some detail at the moment, and we're progressing those inquiries as fast as we can. Question or it's four because question three is also about the carbon credits. The performance, excuse me, of the company has been nothing short of abysmal since raising funds in the last placing. A reasonable amount of that has been squandered on deals. Can you confirm that no other subsequent deals are on the cards?

8:25 Well, the short answer is yes. I won't go into addressing the commentary, but at this stage, we don't have any we don't have any transactions in the wings. Should have shareholders have been told that dividends and a return of capital are on the horizon a number of times in the last couple of years. Can you give firm assurances that is your intention? In the last investor meet, you seem to be markedly backing away from that. Not sure how any of my comments in the last investor meet could have been construed as me backing away from those comments. So for the sake of answering the question and reiterating the comments I said last time, it is the company's intention as profits allow to either pay a dividend or enter into a share buyback. Now which one of those happened would be a function of tax planning in in the most part, and we don't have a an answer to that at this stage because we haven't crossed that bridge. But, you know, we have been very clear for a very long time that the company had profitability last year. And as profitability allows, we will be paying dividends or doing a share buyback. So I'm not sure why that question's even been raised.

9:40 Question six, you had previously said breakeven is 40,000 tons. Can you confirm that this is indeed the case? If that has changed, can you confirm what the new breakeven is and then quantify how that is calculated? Your previous assertion of 40,000 tons was hugely misleading because you actually reported significant losses both on accounting and a cash basis. This question has been asked out of the 12 questions. I think it's been asked, you know, three times. So so I'll answer it now, which will address the other couple of times it got it got asked as well.

10:20 If you look at the twenty twenty one and twenty twenty two expense lines, which I did this morning just as part of answering this question, you can see that the the expense the cash expense numbers, and we forget about the depreciation and the amortization charges because they're noncash items. The cash expense items have been, you know, really quite static. The Jeep the gross profit margin is pretty consistent. It's sort of circa 70% in each of those years, and the expense lines have been pretty static. There's one exception to that, which is last year, our wages cost accelerated quite considerably. It went from roughly 500,000 to a million dollars. Dollars. And so that analysis answers this question. And by that, I mean, it says we have a pretty consistent GP, which we've told people we've had and we do have.

11:18 And we have a pretty consistent wages line except for the sorry, expense line except for the wages, and that makes sense. Right? Because our revenue almost doubled in 2022 compared to 2021, and the only way revenue doubles is by processing more material. And to process more material, we need to employ people for longer more people for longer to extract it and mine it. So the answer to that question is the 40,000 ton comment that was made several years ago now was around a the breakeven cost for a static operation. And that remains, as you can see from the expenses I've just described, pretty much on par. What goes up and you would expect to go up is the variable costs associated with increasing revenue.

12:07 Now those costs go up, but at a 70% GP, we can afford for them to go up because they're not going up at the same rate as our GP. So I don't know if I'm explaining this clearly enough or not, but the answer is our breakeven point increases as our revenue increases. So it's not possible to determine a specific break even point because the business is not fully fixed costs. It has operational costs which vary depending upon how busy the operations are. But what we can see by just a quick analysis of these two at the expense side in these two years is only those items that are variable and that are influenced by volume are moving. The rest are static, and the rest are what we captured under the 40,000 tons in previous years. So when this person says we reported significant losses both on accounting and cash basis, we actually didn't report significant accounting losses. We reported significant non cash basis losses.

13:10 But our accounting losses were not that significant, but they were a function of one, timing cutoffs and two, volumes. That probably sounds really quite convoluted. I'm sorry if it does, but it's there's no other way that that I'm aware of to describe how to analyze break even. The next question, there seems to have been a huge rise in bad debts and a large discrepancy in trade receivables. What from what you have told the market compared to what you delivered, Can you please break down the discrepancy and what steps you're going to take to avoid your credibility taking an even bigger knock in the future? I'm not sure what this question refers to in terms of the discrepancy. There hasn't been a discrepancy, but there has been an increase year on year in our bad debt our bad debt loan. So the way that bad debt provision in the balance sheet so if you're looking at last year's council, it's note nine.

14:11 You can see that in December 21, it was $600,000. In December 22, it went to 1,260,000. The way that works is it it is compounding. So the 1.2 includes the 600, so there's only an additional not only, but there is an additional 600. It's not 1.2 plus 600. It's 1.2 in total, just to clarify that point. And if you look up further, you'll see that the expense that was the impairment of trade receivables expense was 553. So 600 plus $5.53 is less than $12.60, and the 100 odd thousand dollar variation is exchange variations, FX.

14:51 And so, you know, we've obviously done an analysis of the credits of the payables, sorry, since December 31. Some of that 1.26 has come through and being paid. Roughly, I'm just trying to add it up quickly here. Roughly $5.06, roughly about 250 or 300,000 of it, something in that order. And the rest of it is some harder core accounts receivable that we're trying to deal with. The bulk of it is a very hardo, which we'll talk about in the note below, which we have, you know, made plenty of commentary in the past about. And the rest is just a function of what we've described in our most recent update, which is the market is really, really tough for at the moment. It is globally and particularly in Brazil. I mean, farmers are doing it tough. And so some of the farmers who bought from us at the end of last year haven't paid us yet, and it's a function of them just experiencing bad times. So if they're going you know, are they going to pay us? Will they say they will?

15:55 When are they going to pay us? We don't know. It's very, very difficult to pursue people through the courts in Brazil in a timely fashion, so we're trying to work with these guys. But for the same reasons why our sales are down at the moment, it's the same reason why why these guys are paying. Unfortunately, the market's really pretty tough.

16:21 Roughly based on oh, that's a breakeven question again. Sorry. Somebody says here and the last two questions are are quite similar, so I'll address them together. I've invested quite a chunk in your shares hoping for growth. It has been very disappointing. A few sorry. It's been a very disappointing few years. The shares seem to go up go down more than 90%. Any hope for the business and the shares to pick up? And the next question is any short term strategy to get the business more profitable. Of course, there's there's always hope. So when everything else fails, we can roll our own hope. Any short term strategy to get the business more profitable? Well, the answer is we have worked pretty consistently over over recent years to have a pretty strong focus on our cost. We've got our operations running as smoothly as as they have been in the company's brief history. We don't see a lot of opportunity for improvement there.

17:20 We have been cutting costs wherever possible, including, you know, streamlining operations with as volumes have decreased, we've obviously been reducing shifts in Brazil and that sort of thing. We've been reducing head office costs. So, for example, the board having been paid for some months and have no expectation of being paid in the near term. So that's obviously taken, you know, a significant amount out of the cost line. We've reduced some other discretionary overheads at the at the head office level, all of which is just to help maximize profitability as and when we can. And at this stage, there is little more than can be done than focusing on sales volume. And as we've said in our recent update, sales volume will be 100% a function of the market that we're operating in, and we have to we are prepared for when the green shoots come through. We've got 60,000 tons of products processed and ready to be delivered in our sheds at the moment, and we just gotta keep focusing on sales.

18:29 And once the sales come through, that will, at a 70% margin, drive our profitability. So that, in a nutshell, is the strategy. It's to just to keep selling, selling, selling. So that ends the questions. I see that on the wrong page here. I see there's a handful come through on the q and a,

18:59 And I'll just go through these. With sugar prices high, why haven't management made faster inroads to this huge market and fill out underperformances in our current crop markets? Doesn't quite work that way. I mean, we are working as fast as we can, and I have said this numerous times in the past that, you know, we have to complete studies to demonstrate that the product works on sugar. We have to then establish relationships with those growers. We have to then penetrate them at a buying level, etcetera, etcetera, the same way it took us several years to get it over those thresholds with coffee and soy and the other crops that we we currently sell to. We are in the process of doing that with sugar, but it's not a matter of we just don't get to turn up and say, hey. Here, we've got a truck full of fertilizer. Buy it, please. And there is a very long winded process that needs to be followed. So and there's nothing we can do to accelerate that process. Much of it relies upon grow testing, which takes however long it takes.

20:01 So the next question, what are management doing to reduce very large executive costs and fees? It is very high compared to shareholder tiny market cap. And as I just mentioned, for some reasonable period of time now, the board have been working for free, and they expect that to continue for the foreseeable future. So

20:31 okay. So I'm not sure if shareholders are interested. There's somebody guy called Kate and Kay's giving me a bit of a bollocking here. So if you want, I mean, I can have an argument with this guy over this platform if you want, but it's pretty pretty convenient that I've never heard from this guy in the past. I don't know who he is. He's never raised any of these questions, you know, one on one, but he's been a bit of a keyboard warrior this afternoon. So here you go, Keaton, but that is a disingenuous answer, Brian. You're 100,000 buy years ago, which was 800,000, Keaton. You wanna listen? It was eight, not one, has been more than repaid by options and wages.

21:16 Firstly, champ, I have no options from this company. I have never received options from this company, and any director's fees that I've received are in return for my services. So if you think that it's appropriate that a person buys shares in a company and then works for free, then you're obviously on a different planet to me. I see you said you wanna vote against resolution one. Well, you had the opportunity to do that, mate, and you missed it. Let's see. Management has presided over a massive shareholder value destruction as evidenced by the company now languishing at all time lows. A large contributory factor seems to be the terrible consistency in reporting of company performance reporting. This is compounded by the CEO's animosity towards fair shareholder questions and calls to account. This has to stop to even start to repair the damage done to HARVEST perception and market trust with a management change not be in the best interest of the shareholders to recover from these all times lows and lack of management alignment with shareholder value.

22:17 So HARVEST is a Australian based company. It's covered by the laws of Australia, and the laws of Australia require that all companies have all public companies have two resident Australian directors. I have said this before, and I'll say it again. If somebody else wants the job, they can have it. I am more than happy, Keaton, to resign this afternoon and allow somebody else to take over if that's what shareholders want. We just had a resolution presented fifteen minutes ago in relation to my appointment, and I'll just quickly do the sums if it if it helps you. But a total of roughly 5,000,000 votes out of a 180 so less than three percent of the registered return to vote.

23:08 So, you know, I don't know what else you want me to do. I can't resign without a replacement, and nobody's lining up to replace me. So if you wanna do it, knock yourself out, mate, because if you think I like sitting here receiving abuse from people who won't even show their face and identify themselves, you're wrong. And if you think I like doing it, having lost $800,000 pounds, and you think I like doing it for free, then you're wrong again. So if you makes you feel better to bash me, then go for it, mate. But nobody's listening. I can't listen to this crap from you.

23:57 So the next commentary around here. So Bavesh has brought up the same point. Brian has taken millions out in salary. I'm not sure that's quite true. Since the placing has yet to buy any shares since then, would he like to comment and why he has so little faith in the company and its prospects? For the sake of reiteration, if you know, other than the major shareholder, I'm not aware of anybody who's on the register who's put more money into this company than I have. So I don't see why me buying more shares or not buying more shares is a recognition of anything other than I have already put enough money into this company. If any of you guys have put £800,000 in, by all means, give me a call and let me know, and we can have a chat about it. But at this stage, I feel like I've done my bit.

24:52 Somebody asked how secure is the MINERALS LIMITED in terms of the product being sold unofficially? I mean, we have all the the normal checks and balances to sell the product artificially would require basically a fundamental breach of trust by our on-site management team and some of our operatives. And, you know, we we do do surveys of the mine face on an annual basis to determine to help the auditors reconcile the volumes that are sold, and those surveys come back and suggest that the volumes that we sold sold are consistent. But other than that, you know, we have security on-site. We have security cameras. We have way bridges and all other things, you know, would be a a sis systemic fraud would need to be committed in order for for that not to be followed. So I hope that answers your question, Pauline.

25:50 Pauline also asks, shareholders were led to believe that there are that owing to the location of the mine site fertilizers in high demand, what has happened?

25:58 If you read the last announcement and if you just Google fertilizer demand 2023, that should hopefully answer your questions because there has been a massive, massive slump in global fertilizer prices and global fertilizer demand, and it's happening very, very fast. I mean, I think Verde, who a lot of you I know following users are comparable to us, recently put out an announcement saying that they've been hit by the same same market conditions. We're not Robinson Crusoe.

26:28 Nigel says, what impact, if any, do you anticipate the current Argentinian financial crisis might have on the company's operations? Well, we're in Brazil, so I don't think that the affairs of Argentina are gonna have any immediate effect on us. But the question then goes on, what do you believe the real Brazilian inflationary harvest faces is? I don't know. I mean, answer is I don't know. The the feedback I had from Brazil as recently as last week is that they feel like their inflation rates have stabilized a little bit and they're you know, whilst they're they're high, they're not earth shatteringly high, and they don't didn't seem to be that concerned about it. So in fact, they were more concerned about the fluctuation of the the dollar against the real.

27:15 So that's certainly hurting farmers. The, in turn, is hurting us.

27:28 Ali says, are you speaking to strategic trade partners? The answer is no. We've made it clear all along that we don't need to. There's sufficient sufficient volume well, sorry, sufficient demand in the area immediately around where we are that we don't that we don't need to to and the product, it's not that type of product. It's a very, you know, sort of base level elementary product. There's quite a lot of questions coming through. I'm I'm not not gonna be able to get through them. I'm just quickly trying to scan to see to weed out weed out the the nonsense from the the stuff that might make a little bit of sense.

28:21 Somebody says, you're feeling the travel expenses of $620,000 are rather high. Look. Yeah. I think, you know, as a stand alone, that expense line does certainly look high. It relates to the internal travel and etcetera of the sales team effectively. It is effectively a a traveling sales force, and so they have to spend significant, excuse me, amounts of time away from home. But, you know, it is certainly something that had been brought up on numerous occasions as as an expense line that needs to be needs to be curtailed. Somebody says here there was circa 33 to 35,000 tons unpaid at the end of last year for revenue. How much was that being paid considering you said you were still waiting?

29:10 Unfortunately, that that that point's been really confusing for a lot of people. We have been paid for that. We just weren't allowed to record it as revenue because the auditors say title in the product hadn't passed because the product was still on our MINERALS So the simple explanation is the customer came, bought the product, paid for us. We processed the product and put it in a stockpile for them so that they could come and collect it as and when they need it, which is normal, which is very, very normal. But on the December 31, normality is thrown out the window, and the auditors come in, and they decide what happens. And they said, well, because it's on your land and title hasn't passed in a legal sense, we won't recognize it as revenue.

30:03 Ben says, is there an argument that HMI would function better as a private entity with a more flexible cost base? Has there been any interest from third parties that would like to take HMI private as a depressed valuation? The answer is there has been no interest from third parties. You know? But there is absolutely, you know, a very strong argument that HMI would function better as a private entity, of course, you know, particularly when we don't we're not accessing the capital markets for capital, you know, and we spend a considerable amount of time receiving commentary from shareholders that our performance as a board, mine in particular, is not satisfactory. And on the flip side, shareholders don't seem to, at some level, get a proper grasp of the business. You know, there is a real mismatch. It's not operating in a a sensible manner as a public company. So, you know, I would 100% say that that there is a very strong argument that HMI should function as a private entity.

31:02 But, no, nobody has raised their hand and said that that's what they wanna do. Somebody here says, I understand it's been previous webinars. You can't comment on the selling price, but fertilizer prices have fallen by circa 65% this year. What has the average selling price fallen by? Is it a similar amount? I feel like harvest didn't rise in prices by 300%, so there should be some insulation. The answer to your question is you're right on both fronts. We didn't raise our we didn't raise our prices by 300%, so there is some insulation. And, no, prices haven't fallen by 65%.

32:00 I'm just trying to kind of roughly what I'm talking to you just sort of, you know, work it out. I think at this stage, you know, we've probably experienced price falls more like 30%. Tom says, these are tough times. Will you be scrapping your budget for exploration and development on the limestone project for now? The answer is yes. I think we sort of mentioned previously that we've we haven't progressed that as fast as we wanted to. There was sort of some desktop and report work, so we've completed those reports, and we've put them in for assessment. But, you know, at this stage, you know, the company's all hands on the pump around sales. And there's there's no use, you know, bringing forward a a new product at this juncture if if the market's not, you know, not there to buy the product we already have. So, you know, as I say, you know, we're not Robinson Crusoe. We are sitting in here along with our peers waiting for the market to recover, and there's nothing we can do individually or collectively to to encourage the market to recover. The farmers will dictate when that happens.

33:10 And, yeah, we're just all hands on the pump for that. So there's a comment here that says, you know, I appreciate the frustration, but realistically, you are the one in charge and where the buck stops. And, you know, I'm the one who fronts up to these presentations and tries to explain what's going on. There's a difference between me offering an explanation to shareholders and trying to give you information than being personally abused. So if you can take some time out of your busy schedule and identify that difference and communicate with me like an adult, I'll do the same back to you, but I'm not going to take abuse from you because you think that makes you feel better. I think the rest of the questions so so Ali here says, following the FY '22 revenue recognition issue, have you got now got appropriate processes in place to ensure this doesn't happen again?

34:10 The answer to that is is a good that's a very good question. The answer is it's going to happen every year, and it's going to happen every year simply because the business doesn't stop for December 31 when the order does come in. The business is in perpetual motion. And so those cutoff issues are going to happen every year. What I think will happen in future is it won't be as big as 35 or 33,000 tons because you know? Unless we have really busy years. But, you last year was a bit of an aberration because of the fear factor that was in the market for people looking to to buy with the Ukrainian war. So but, yes, that cutoff issue, and it happens across every item of our revenue and every item of our expense and every item of our balance sheet, and it will happen every year. I think that's here, Bhavesh is saying, how many customers have you lost this year versus last year? Is there a case is it the case a lot of customers had stopped ordering, or is it the case that they are ordering far less?

35:08 That's a a very good question. It's one I've spoken to management on-site about just last week. And as of last week, they told me we have not lost any customers. It is more that they have stopped ordering for the time being. We're not you know, the the guys who are ordering more or less, you know, where we would expect them to be. It's just that farmers en masse are sitting on their hands. And the reasons being, you know, pretty much month on month this year, they've seen prices tick down. So they think we've we can sit this out as long as possible. Prices are just gonna go one way. And compounding that from their perspective is they've seen the the dollar go from, I think, 5.4 reais down to 4.7.

35:56 And they've seen, you know, soy in particular. Prices are very, very low. There is a glut of soybean and corn in Brazil at the moment, depressing prices. And so there's a lot of headwinds that the farmers themselves are experiencing, and that's the blowback that we're copying. So and the fertilizer industry is not copying any headwind of its own. It's all just derivative from the headwinds that the farmers are experiencing. So until the farmers get some clear runway from what they're doing, we won't see any clear runway for ourselves. Yeah. Okay.

36:46 So just to finalize this because and I'm I'm not gonna comment any further, Keaton. You say there's no way to contact me outside of these events. But that's simply not true. Other shareholders managed to do it. Yeah. Have a PR firm who are noted at the bottom of every r and s we put out. We have a broker who's noted. We have a nomad who's noted, and we have a contact details from me that are noted. So if you want to contact me, just read the r and s all the way to the end, which is probably not a bad thing for you to consider when you're reading r and s's, full stop. Anyway, that seems to be all of the sensible questions. Brian. Sorry. Sorry, Brian. Thank you very much indeed for addressing all those questions that came in.

37:31 And, of course, the company will be able to review all the questions that were submitted today and add any additional responses where it's appropriate to do so, and we'll publish all those responses out on the investment company platform. But, Brian, perhaps before just redirecting those on the call to provide you with their feedback, which I know is particularly important to yourself and the company, If I could please just ask you for a few closing comments to wrap up with, that'd be great. I think, you know, the closing comments really are just a summary of what I've said in the last twenty minutes or so, which are, you know, nobody wants to be in this position. Nobody expected to be in this position, but we are in this position, and it's not due to a failing of HARVEST or a failing of HARVEST management. It is due to the market that we sit in. And I'm sure if HARVEST was a ten or twenty year old company, we'd be able to look back and express experiences of market conditions like this several times because it is a cyclical it is a cyclical market, and it's driven by factors which are well outside of our control. And, unfortunately, we are in a a really tough time at the moment.

38:39 And, yeah, there is literally nothing we can do about it. I mean, we turn up every day to work presenting the company to its customers, and we can't force them to buy. We're just hoping that they'll buy. We're waiting for them to buy, and we're giving them the opportunity to buy. But and, using Virdo because often people use them as a comparable to us. Go back and read their recent announcement. Their sales are down 60%. I think it was 61% for year year on year. And they've expressed their own views, which are consistent with ours about how tough the market is. So, you know, I'm not sure what else can be said. You know, HARVEST is Yeah. I I just don't know what else to say.

39:34 Brian, thank you very much indeed for updating attendees online, this morning. Could I please ask attendees online not to this session as you'll now be automatically redirected, for the opportunity 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, but I'm sure it'll be greatly valued by the company. On behalf of the board of HARVEST MINERALS LIMITED, we would like to thank you for attending today's annual general meeting. That now concludes today's session. So good morning to you all.