Harvest Minerals (LSE:HMI) — Investor Presentation

0:01 Good morning. Welcome to the HARVEST MINERALS LIMITED investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, can be submitted any time via the Q and A tab situated on the right hand corner of your screen. Just click Q and A, scroll to the bottom, type your question and press send. Company may not be in a position to answer every question received during the meeting itself. However, the company have your questions submitted today, we'll publish responses where appropriate to do so. Before we begin, we'd like to submit the following poll. I'd now like to hand you over to Brian McMaster, executive chairman. Good morning.

0:29 Good morning, Paul. Thank you very much for the opportunity this morning, and thank you investors for taking the time to send some questions through and to to dial in this morning to to listen to some responses. We've got a a very brief presentation, which the majority of you might have seen already. It was released earlier today, I think, and and most of the information contained in there is not new, but I'll go through it quickly just to give everybody a bit of an overview. So HARVEST, as you know, is a Brazilian based fertilizer company. We have been in production now for a couple of years, and last year was our sort of watershed year in terms of reaching sort of some critical mass last year, sorry, being calendar year, reaching some critical mass in terms of sales volumes and etcetera, etcetera. So our focus for 2023 is on growth and further profitability.

1:20 We're cash flow positive at an overall level at the moment, and that is forecast to continue and to get stronger. We've completed our storage expansion project to support the high volumes that we've told the market that we anticipate selling this year. All of this confidence is being driven by a robust fertilizer market, which is a result of a confluence of factors. You know, they do include the supply restrictions being caused by the the war in The Ukraine, but more specifically for us, we are seeing that a large driver of our continued growth in our renewed business is just an increasing growing awareness of the benefits of KP Fertile.

2:05 So that's that's great. You know, we have a lot of confidence that this is something that will continue past the resolution of whatever happens in The UK The Ukraine. Sorry. So just moving along. I'm just gonna go through this really fast because it's it's not the reason why we're here. We can you can read that at your leisure. The next page talks about the opportunity, and these are all just well known metrics. And, most of you know about these, and it's part of the reason why you're interested in HARVEST. But, you know, HARVEST is oh, sorry. Brazil is the third largest exporter of agricultural products in in the world. Agriculture is the single largest contributor to Brazil's economy, just pipping mining in recent times. Sort of circa 85 to 90% of Brazil's fertilizer is imported. Clearly, the importance thereof of a domestic supply is is evident.

2:57 And then we go on to talk here about some just really basic global metrics around food supplies. I mean, obviously, it it's a bit of a no brainer that the world has to eat. There's 220,000,000 people in Brazil. Then you've got the rest of the Americas, then you've got the rest of the world. Brazil is the breadbasket of The Americas. And so we are in the middle of a very insatiable agricultural belt, insatiable in terms of the demand for the agricultural products and also the demand for fertilizers. So the next slide talks a little bit about how our sales have been growing over over the years. So you can see there we had a very modest and sort of poor start up in 2019, which, you know, escalated slightly in 2020.

3:50 Into 2021, we start to see a little bit of traction, which, you know, really took off last year. And, again, we we are anticipating to see that grow considerably into into this calendar year. So all of these numbers we talk about are in calendar year terms. Most of our sales, and we've talked about this at at Noising in the past, are two customers in the immediate vicinity of HARVEST MINERALS. One of the questions that somebody's asked is is answered on this slide about what is the breakup of the sales between coffee, soy, sugar, and other. That this is is current based on last year's last year's numbers. And you can see below, we've given you a a bit of a calendar of how the how the pattern of those cells, and you can see that there is a high period in the middle, which obviously relates to planting season. So January, February, March are wet seasons where we are. And then as we come out of that wet, you know, we start to see a a high demand for the product to be delivered.

4:57 The next page is really just some some nice photos of of mine. You know, we've talked in the past about the solar farm that we've implant sorry, that we've put together, so that there's a photo there of the solar farm. The the property is completely running on the solar now, so that's fully operational. And if you look at the second or the middle photo on the left, you can see the solar farm just there behind the main shed. So the way that shed works is effectively where it says KP fertile on the roof. That section of the shed is is a storage facility, approximately 30,000 tons. In the middle is where the processing, the crushing facility is, and the brighter roof on the left is the new expanded storage facility, another approximately 30,000 tons.

5:49 And the big shed well, the relatively small, but still big shed to the right of all of that was where we started all those years ago with our pilot little pilot little pilot plant. And you can see directly in front of the bright roofline, you can start to see some of the trial farm, which is also the photo to the bottom bottom left. So the photo to the top left is is the mine face itself, taking some time second half of last year. So we've talked about this at nausea in the past as well. We've got a weathered camapherie giant larvae, naturally rich in KNP as well as other micronutrients.

6:35 It's a simple mining and processing using modular plants. It's simply excavated trucks to the crushing facility, crushed, and either bagged or put straight into trucks and sold. Talk to you a little bit about the increased product storage capacity, which I've just described, and and the trial farming, which I've just described. The next page is hopefully, you've all seen it before. Yeah. We've got some very strong ESG credentials. We're the only Brazilian company on the London Stock Exchange to be given the green economy mark. Our product is completely natural, organic product with minimal environmental impact. There's no water use, no contaminants, low leaching, and slow slow release.

7:24 So the investment case, well, you're all shareholders, so you probably got over that bridge. And so we might as well just get straight into the questions, see if that's okay with everybody. I'm sure everybody's busy and got lots of things to do with their day, so we'll just get straight into the questions. So the questions have been sent sent through to us over the last couple of days through various channels, and they've been compiled. There are lots of duplicate questions. So if I don't read your exact question, it's not because it's been ignored. It's because it represents or it resembles another question that's along a similar line, and we've just chosen to list that one instead. But all of the topics covered by the the questions are being addressed today, so in no particular order.

8:12 First question is, is there any ongoing performance monitoring of KP fertile underway at the trial farm or with trusted customers that can be published? The answer to the question is, yes. We do have continued test work underway. The the test work we do is not done at the trial farm. The trial farm is we actually just plant products and use our fertilizer just to show farmers when they come to visit our site examples of how things are done. So it's it's a it's a demonstration plot, not a it's not part of the trial the trials that we do. The trials that we do are heavily supervised. They're all done by independent laboratories under the supervision of the government authorities. So they're usually done in in universities, but they are 100% independent, and they are all we have to report back to the authorities and the authorities supervise various aspects of it.

9:13 The the trials that we have ongoing at the moment very long term trials, so they're all started, you know, in years in the past, and, you know, we're trying to trial and understand the long term benefits of the of the product. But the the results that we have that we expect to receive and be able to publish in this quarter, we have the second year of our cotton results and the fourth year of our coffee and the third year of our sugar results. Now some of these, we, you know, we we may not have, for example, you know, reported a first year on the cotton results or a third year on the fourth. It's on the coffee. It's because they don't always result in something that is meaningful until a further year happens. So as I say, these are long term trials and, you know, the way they work is a bit out of our control and a bit out of sync with what we do in some respects. But as we get reports from these independent people, we will we'll publish them, and we anticipate that we should receive some reports this quarter in relation to those three commodities. And if if possible, yeah, we will publish them.

10:25 The next question actually is how are the long term trials going to work? Hopefully, I've answered that. The next question is what is happening with the LIMITED project? The LIMITED project is progressing. We are currently in a process of technical evaluation and writing reports, which are going to the authorities. The authorities then have to sanction the report and from that provide us with permission to proceed. There are five projects we've reported on two so far, and we've got the other three which we expect to report on in the first half of this year. That is behind our anticipated schedule, and that has been the result of a of a couple of things. You know, one is the feedback we're getting from the authorities is not as fast as we would hope, but the the bigger issue, frankly, is that we've been focusing our attention on on HARVEST MINERALS the the growth that we experienced last year.

11:24 So this the limestone project, to be fair, has it's progressing, and we expect to have some information probably later this year, but it is, yeah, realistically, probably twelve months behind schedule. The next question, FY 2223 orders was invoiced or received a 150,000 tons. Sales orders not received or invoice 172, making a difference '22. In previous years, assuming you get paid before the annual accounts, where would this 22 have been allocated?

12:01 This so using this example, this 22,000 tons is is going to be a a perennial issue, and it's effectively just simply a timing issue. So we are reporting numbers at a day in time. So the 30 in this example, the December 31, but the business doesn't stop or it doesn't slow down or it doesn't reach a halt in order for us to produce those numbers. So there was always going to be a rump of things that roll over. Now in the past, we have been reporting on sales, orders received because we were trying to get investors to understand and and take some comfort in how the business was progressing on an order basis.

12:46 The feedback from investors was very strongly that they didn't like that type of reporting that they felt it was overemphasizing to the upside. So we have now said that we will only report on invoiced sales. So going forward, you won't see a difference between the numbers that we report and the numbers that appear in our accounts for that exact reason. But to answer the question, this this 22,000 tons will be processed and delivered during the course of, you know, the the first few months of this year. So I hope that answers the question, but it's it's not revenue for the purposes of the accounts at December 31. So we're saying the revenue is 150,000 tons. The 22 will be recorded as revenue in the following year.

13:46 The next question is what are the maximum ton tons per annum at the moment without further CapEx? And this question appears quite a number of times, and it's a little bit concerning that people are are asking this question in so much as we have said now for a very long period of time, years, that the mine itself has no restriction on how much we can extract other than building roads to get it to the processing facility. So the CapEx to build roads is is minimal, but we have sort of no real restriction on how we can extract ore from the mine. The plant that we have at the moment has a nameplate capacity of 320,000 tons, and that is built off I mean, if you Google the definition of nameplate, it's built off, you know, the the assumption that we do three shifts a day, twenty four hours a day, seven days a week, allowing, you know, x number of days for downtime and repairs and maintenance and that kind of stuff.

14:49 So the answer the proper answer to the question is we can produce 320,000 tons of product based on the facility we have. And we have said that now for quite a number of years. So nothing has changed in relation to that. We did build some new storage capacity last year, and we were quite upfront and open about why we did that, and that is that we do have problems processing when the ore is wet because, effectively, you know, it is a a powder that we sell, and it gets distributed by the farmers onto the crops as a powder. And when we extract it from the mine, it comes out as a a little bit like a lumpy clay, like a dry lumpy clay.

15:40 But when it's wet, it won't go through the crusher properly. So we the motivate the main motivation for building the extended storage facility was in order to be able to store products in anticipation of rain. We store raw products, then process it, and then store it on the other side in the completed goods inventory. I hope I'm not rambling. I hope all this is making sense because it's very it's very hard to to see what well, I can't see people's faces, so I'm not sure whether I'm making sense or not. The next question is, what is the approximate average Brazilian real selling price per ton going forward in 2023 as it stands today or the selling price now in BRL per ton.

16:28 There was also some questions around just gotta find them. What were the selling prices last year? I can't see the question now, but I know it exists. So the answer to that question is So the average selling price last year was 261 reais. Now we had three, and we have said this previously, we had three price rises well, two price rises. We started to base price and then increase that price twice during the course of the year. And on a month by month basis, the average price, you know, fluctuated a little bit within a band of, you know, a few dollars. I mean, literally less than $10 each month just based on, you know, various whatevers.

17:21 But the average price for the whole entire year was 261 reais. The closing price for the year was

17:32 and I'm gonna be a little bit sheepish here because we are currently in the process of negotiating with customers, but it was in the low 3 hundreds. And that was that is the price that we've been selling product that we sold some product, in fact, today at those sorts of numbers. So and we've seen an uptick in price from the average of probably another, you know, 15 percent since in in recent in recent in the last month or so. And, you know, we're endeavoring to we are seeing that conventional fertilizer pricing is is fluctuating a little bit, and it has come down. And that, you know, has the potential to impact our pricing. We haven't seen that impact us yet, but it is something that we're, you know, very mindful of, and we're watching very closely because it will have the potential that comes down too too far to to affect us a little bit. So at the moment, as I say, average price last year, 261 riyals, and price this year so far is in the low 3 hundreds.

18:40 Next question is how much is the direct cost in Brazilian reais per ton to dig up the product, crush, and bag it? The answer to that question is to get the product from in the ground to in our warehouse as a finished product ready to be put in a bag or in a truck, which is where we stop calculating it on a per ton basis. After that, the only movement left is to pick it up by an excavator and load it onto a truck, and and we just consider that to be a freight movement. So to dig it out of the ground, crush it, and put it in our finished good warehouse is circa 65 Brazilian reais a ton.

19:33 The next question says, assuming a linear sales orders received to invoiced and received, is your target for total sales orders including received or invoiced for f FY twenty three to twenty four, therefore, 130,000 tons? We kept this question in for two reasons. One, it was asked, so we need to address it. But two, it sort of I wanna highlight the comments assuming a linear sales orders receipt. I mean, that sort of assumption is is completely inappropriate in a business that, you know, is of of this nature. We you can't assume anything. I mean, first and foremost, you know, we're we're supplying agricultural businesses, are completely dependent upon weather. So that there there is no way that anybody should be making assumptions based on some sort of a linear approach to things. You have to make assumptions based on, you know, much broader brush approaches. And so to date, we have put into the market, we think, you know, quite a lot of information. We've said we plan to do 200,000 tons at $78 a ton. I mean, that gives you the revenue number. We've told you previously what, you know, our sort of margins are, etcetera, etcetera. So I think they're the kinds of ways that people need to come at these things if they're trying to calculate profits and and certainly, you know, just trying to, you know, ping thing and say ping things and say, well, I'm gonna just assume something linear. I think, you know, you're really coming at it from a very simplistic approach,

21:03 and it's gonna get you in trouble. So so the answer to this question is, no. That doesn't work.

21:11 Number 12, what is the current cash position? Again, that's a that's an interesting question, and I'll give the answer. But before I do, I think it's important that people understand, you know, we are a trading business, and so cash itself at a point in time isn't really the answer. The answer should be what is our working capital position. So what's our cash plus receivables minus payables at any at any given point in time? And, you know, I have got those numbers here, and I was intending to share them, but the auditors have got their their concerns about, you know, releasing unaudited numbers, etcetera, etcetera. So it it does get a little bit tough. So all we can do in relation to that is say, well, we are trying to put together an RNS, which, you know, answers the working capital question as best we can and hopefully get that cleared off by the auditors and and the the nomad and and get it out.

22:06 Yeah. So maybe sometime next week, hopefully. But, excuse me, the answer to this specific question is at 12/31/2022, the cash position was circa $2,500,000.

22:23 Next question is you have stated previously breakeven is 50,000 tons, and yet we are now at one fifty. Can you confirm we are now healthily profitable? Again, you know, we we've answered that question, I think, you know, quite a number of times in the past. You know, we have seen that for quite a long time that the company is profitable. It's in this presentation that I just went through. So, you know, I'm I'm hoping that we can close that sort of discussion down a little bit and people can sort of accept it as a given that, you know, we have reached profitability. The next question, is it reasonable to expect second half revenues to pro rata the same rate volumes as the first half? These questions here closely aligned to the one I spoke about a moment ago, which talked about the linear approach. The answer is no. That's not reasonable. It's not reasonable at all to simply say that the business, you know, is a cookie cutter from one month to the next, and you can see from the presentations we talk in there. And we have spoken in the past also about, you know, at the moment, the business is quite quite lumpy in terms of, you know, there is a a real rump of business that comes through during the planting season, which is what you'd expect.

23:28 And the reason why we're trying to move into things like sorghum and maize and other commodities is because it helps us smooth that that cycle out a bit. The next oh, here's the question I was looking for. Sorry. So the next question, has the company been able to maintain 2022 sales prices into '23? I've answered that. So the answer is yes. Now this is this next question is something that is something that's come up quite a number of times from, you know, half a dozen shareholders who seem particularly interested in the answer.

24:14 Does the company expect to pay dividends sooner or will it commence a share buyback? Now the answer to that question is something again that we've we've had in the market for some time, which is, you know, we are absolutely 100% focused on, you know, making the company as profitable as possible, as quickly as possible, and we intend to return any surplus funds we have to shareholders as soon as possible. This concept of a share buyback seems to have gained a bit of traction over the last couple of weeks. I've received quite a number or relatively quite a large number of inquiries from people about a share buyback. I'm not sure what's driving that specific inquiry or why people think that that's something that they're interested in.

24:59 But the answer to the question is we you know, the board remain shareholders, and they remain interested in looking after shareholders' interest. There are some legal tax and other accounting implications in relation to both of those options that is paying a dividend or a share buyback. Over the course of the last two, three weeks, we have been getting detailed advice from our accountants, tax advisers, and lawyers about the way we would go about either of those things. And there is a bit of work to be done around understanding the pros and cons, the implications, etcetera, etcetera. But we are doing that work, and we would expect to be able to make an announcement probably later this quarter in relation to how that all sits.

25:54 And, hopefully, that gives you the understanding that it is something that is certainly in the forefront of directors' minds at the moment. The next question is, can you give us an idea of expected net profit for the current year? And the answer is kinda not really. And the reason being is because, you know, we started to get into this position of, you know, producing all these unaudited numbers, etcetera, etcetera, and the auditors have other things that they want to do, etcetera. So,

26:35 you know, obviously, we have stated, you know, a number of times that we are profitable. And, of course, you know, as our revenue increases, we we expect our profit to increase substantially as well. So we anticipate we are forecasting that that profitability will continue through this year and beyond. So all I can say in relation to that is, you know, we are working as fast as we can with our auditors to get the accounts out as fast as possible this year. And, again, you know, that number will need to be something that's understood in the context of any discussion we have around, you know, payments to shareholders. Next question is, can you provide further clarity on the new system of announcing invoice sales and why you've done this?

27:25 As I said before, that's it's simply to help kinda alleviate confusion and try to reconcile those little one pages that we've been announcing to our account. So, basically, from December 31 on, we will only tell you about numbers that we sell and invoice. We won't be telling you about expected sales orders. Now the cap the the caution to all of that is, you know, the numbers might get a little bit lumpy because, you know, the way people order their products might not necessarily reconcile to happily to the quarter as we report it. And so without telling you sales expectations for the future, you will miss understanding that. So, you know, I think shareholders would need to be prepared for you know, it won't always be, you know, quarter on quarter growth, but that's okay as long as it's year on year growth.

28:22 The next question is given that you feel the company is substantially undervalued, will you and other directors purchase more shares? Well, obviously, I can't speak for the other directors. And, you know, I am, yeah, I am probably the company's second largest shareholder. I've said this before. I I have a substantial amount of money invested in the company already. You know, I'm happy to purchase more shares, but, you know, one of the issues we have is is blackout periods and that sort of thing. So, you know, we are a very active company in terms of, you know, a lot of the things that happen behind the scenes. And as a director, you know, we're kind of it's very difficult to find those moments where we can purchase shares, but it's something that, you know, we always keep a little bit of an eye on.

29:12 So then the last of the questions, where do you see the business sales volume in three years' time? You know, that's, again, a question I've gotta be a bit cautious about answering in terms of, you know, providing forecast, but I think it's probably the best way to answer it is to say, I am a substantial shareholder in the company. I'm happy to stay as that, and I will, where opportunity arises, increase my holding. And I wouldn't be doing any of those things if I wasn't satisfied that the business' future was was very bright. I think that's that's all of the questions I had. And while I've been chatting, nobody has sent any questions through, Paul, so I think maybe that's it.

30:09 Hi there. If there were there there are a few that have come through just obviously live, Brian. So just if you do wanna click on that q and a tab, is there just anything else that I haven't covered off? I think the majority of them you have covered off through your your questions, but maybe just give me a quick scan to see if there's anything else there just you wanna pick up with. And if not, I'll just ask you for closing few closing comments, and we'll wrap up. Sure. Okay. Sorry. I didn't I've got them now. So the first of these questions is, what percentage of sales is covered by 25 kilogram bags? I've got the answer to that. And the answer is, last year, last year, we sold about two and a half 25 kilogram bags.

31:02 So at the moment, it's still a reasonably small it's a very small portion of our overall sales. It's something that, you know, we're trying to, you know, work on. We it's we sell it through our resellers. We only sell the bags through our resellers. We don't sell them directly. And, you know, I think to get that number to be substantially more, we would probably need to embark on some sort of marketing strategy. And at the moment, you know, kinda got our hands full a little bit with just what's going on more broadly. So it hasn't been a real priority, but the answer is 2,400 bags last year. Do you think it would be beneficial to commission a broker report to let the wider market to better understand future growth and cash flows?

31:49 Look. Yeah. Potentially, I mean, it's something we have done in the past, and it got us into trouble. And, you know, it's it's one of those things that we had a bit of a look at it last year, we sort of took a view that, you know, people are a little bit skeptical about broker reports now. They just kind of figure it's paid research. So query whether it it really does help or not. But it it's something that we have looked at recently, and we, you know, we we contemplate from time to time. So somebody's asked a question. Can you explain if there are issues with dividends in ultravirus slash negative retained earnings?

32:35 So HARVEST is a is actually an Australian company. It's governed by the Australian Corporations Act. And a a few years ago, the Australian Corporations Act was changed to say that it's no longer a case it's no longer a case of only being able to pay dividends out of retained positive retained earnings. You can pay a dividend as long as the company's directors are satisfied that it's it's not gonna harm the company. I you know, you're you're solvent and you remain solvent after the payment. So the fact that we have negative hotel earnings will not be an impediment for us to in itself will not be an impediment for us to to pay a dividend.

33:22 The next question, is this product distributed nationally or regionally? I mean, if I had a dollar for every time I've answered that question, I mean, really, you know, we've said countless times now we only sell the product within a 300 kilometer radius of the mine site. It's even in this presentation, I think, that we only sell the product within a 300 kilometer radius of the mine site. Next question, can you provide both sales orders and sales invoiced metrics? No. I think, you know, we we've made a decision now. We've been providing sales invoice sales orders, and people didn't like it. Now we've made a decision to provide sales invoicing. Yeah. That's that's the decision that's been made, and that's what we'll be stuck with.

34:10 Would you consider a second plant slash crusher? Well, the answer is, of course, we worry if demand is sufficient that we need one. I mean, that's absolutely why it's a modular plant is to allow us to to add capacity. So we've got a question here. Could you give an indication of the year on year growth being targeted for this year? Is it as simple as 33% once invoiced and orders are netted off? I don't quite follow what you're asking there, but, I mean, it's pretty simple. Right? We say we invoiced a 150,000 tons last year, and we have said in our RNS that we are forecasting to invoice 200,000 tons this year. So, hopefully, that's When you say cash generation is overall positive, can I clarify what you mean at the PLC level rather than at the operational level?

35:07 Yeah. Overall means overall. So taking into account all expenses, the company is cash flow positive. It states in the project operations and growth slide, you are licensed to produce 400,000 tons. Is that correct? Though the nameplate capacity was less than this. They're two different things. Right? So the nameplate capacity deals with the capacity of the plant to crush the product, whereas the license deals with the license that we have at the moment to extract. There's been a stockpiling of fertilizer due to the Ukraine war. Will this affect SARS this year? The answer is we don't know. We don't expect so.

35:53 As I said at the outset, you know, one of the things that we've been noticing over the last two, three years is that the majority of the sales that we get are repeat customers, and they're coming back because they like the product. And, you know, last year, we did see a front ending of orders into the first part of last year, which was clearly a knee jerk reaction to what was going on in the Ukraine. And, you know, it's probable that we won't see that this year. However, you know, as things peak, you know, stabilized for want of a better word and a very incentive word in some respects. But as the story got clearer of what was happening in the Ukraine and people understood, you know, the the near term implications of it, it didn't change the orders. Nobody backed away from buying the product. So, you know, they bought the product on its merits, and so we expect that to continue going forward.

36:52 Jordan's asked, if travel expenses are $300,000 for the half year, Please explain what this consists of. Does the company deliver any of the product? It is mostly the vast majority of that is travel expenses relating to the sales team. And there is a well, as I understand, it's mostly in relation to the sales team. Well, sorry. I'm just trying to keep up with the questions as they're coming through. So Mark was saying, rather than dividend, I would strongly prefer share buybacks at this growth as this is a growth share. Have you considered this, and what is your preference?

37:45 Well, hopefully, during the presentation, I I sort of tried to amplify that, you know, share buyback and dividend were the two options that that are clearly available to us, and we are exploring the merits of both of them. There are legal with other implications for both, and we're trying to get to the bottom of those with our advisers. And until we have that information in hand and have an opportunity to consider it, we might have other preference. But, you know, the short answer is yes. We are considering it in the context of, you know, what are our options. Is there any reason you continue not to share the current cash balance with your quarterly updates? With this figure seemingly growing q on q at differing rates, wouldn't it give confidence to investors?

38:34 Well, it's for the same reason, Ben, that I explained during the presentation that we don't go out of our way to show that, which is because there are no orders of numbers. And, again, the reason why we have an audit every six months is to provide investors with orders of numbers. And, unfortunately you know? Look. I don't know. I mean, it's it's kind of one of these things where, I mean, we give people information. They they kind of they want it. They want more. They there has to be a point at which we stop giving information, and people have to rely on the accounts. And then the accounts get audited every six months, and we publish those as soon as we can. And the cash number's front and center. It's been ticked off by the auditors. It gives everybody the confidence that they need. And as I said, you know, in the presentation, the cash in itself is not really the answer to anything.

39:21 You have to actually you actually have to look at it in the context of a working capital. So, you know, you gotta have your accounts receivable, which, you know, again, you know, you gotta have your auditors looking at that. You gotta have your accounts payable. And, again, your orders, you've got something to say about that. So I think it's the, you know, it's the cash, the overall working capital position that's important when you you consider these things, not just simply the cash. Somebody says here, does the company currently have any debt? That's a good question. The answer is, yeah, we do. We have about $200,000 worth of debt that we have picked up in Brazil to buy some equipment. We we got about $1,500,000 worth of debt last year. We've paid 1.3 at the back. We've got about $202,100 left.

40:19 Someone says, will the change in revenue recognition require a change in the accounting policy? No. The accounting policy and the way we we recognize revenue in our accounts hasn't changed at all. All that's changed is simply the way we are reporting it in those little quarterly update RNSs. So Someone says, would you like to fully extend the 30,000 ton covered storage facility in order to be able to maximize the amount of raw material drying or waiting crushing? If so, when and how much do you envisage this extension? Would you also, like, need to extend the finished goods storage facility?

41:05 At this stage, we, you know, we we extended we added one of those storage facilities last year. I think the cost from memory was sort of circa a million, million and $0.5, something like that. At this stage, we think we have sufficient capacity. You know, if the business grows further and and needs more capacity, then we have got the ability we have got the ability to expand as we need to, and and they're sort the sorts of numbers that it it takes to add those sheds on. I mean, they literally are just sheds, so they're sort of, you know, circa $11,500,000. So someone says here, what is HARVEST doing to increase sales into crops that help us build up the off season demand, I. E.

42:00 Composting, etcetera, seem to be the way to use sales efforts during quite few to maximize our facility too. Yep. That's absolutely true. That's, you know, that's one of the one of the big challenges for us going forward is to continue to try and, you know, expand our portfolio. As you can see here, you know, last year, we sold 34% of the product to coffee, 28 to soy, 21 to sugar. Now two years ago, we sold nothing to sugar. We sold 70%. These are just rough numbers. 70% to coffee, you know, 30% to soy, and you know? So we are slowly getting these metrics to be a little bit more balanced. And the answer to the question is simply that like all of those products, any new product that we're trying to reach into, we have to go through a process of getting the farmers to understand that the product works.

42:55 A big part of that process is these independent tests that we commission. You know, the farmers really appreciate and really like that we have independent technical data. And it's it's a multiyear process. So just looking through. It's a multiyear process of education, of us understanding that the product does work on these crops and then being once we understand that, getting independent tests to verify what we're saying, getting the farmers comfortable, getting them to trial it. Once they've trialed it and they can see for themselves, they come and start buying a product. So that's the reason why it's taken us five years to get harvest to the point it's at now with just these, you know, crops that we talk about here. And and, again, you know, it it's that kind of gestation period to get new crops up and running. And, you know, we are we're not at the starting line on any of those discussions. We are constant communication with farmers in relation to all of those products that we that we have listed their coffee through the compost sorghum beets. And, you know, we are slowly, as best we can, chipping away. And the plan would be, in a perfect world, we would have a balanced portfolio which sees us delivering product on a uniform basis all year. Now is that ever gonna happen? Well, the answer is I don't know, but that's certainly what we are what we're trying to achieve.

44:33 So I think we've got just a couple more questions here, which I'll just wrap up really quickly. You know, someone says, were you benchmarking HARVEST performance against maybe VERDE? We're actually not really benchmarking our performance against anybody. I mean, we we have a an in house view on Verde, which is, you know, very different. We we think that HARVEST sits in a little bit of a bubble of its own with in terms of the quality of the product. You know, we're never gonna we'll never say never, but we're, you we're not gonna be doing the the volumes of Virde Dew anytime soon. But, you know, at the end of the day, it's about profitability and yeah. Now we've got a question here. What is the current capacity, and will there be future CapEx required in order to expand? I mean, could you provide a cost estimate on what expansion it would provide? I mean, you know, with respect you know, we we've said now quite a while that we we don't need to expand further at this stage.

45:35 We've talked ad nauseam about what our current capacity is. And so, you know, I'd really encourage people to you know, if if you're unclear on these things, go back. I mean, all this information that people are seeking, know, Eddie, it's already out there. We've made announcements in relation to it. Know, please, can you, you know, can you sort of have it have it go back through and and just have a refresh? But the answer to the question is current capacity is 300 nameplate capacity is 320,000 tons. No further CapEx required at this stage. And, you know, I can't provide a cost estimate on what an expansion would be like because we don't have an expansion planned. So we've got someone here saying, seems you have substantial growth ahead without needing to reinvest capital. Are there ways to create new opportunities to deploy capital that would not distract too much from the core business in terms of your time and energy?

46:35 I I would maybe prefer you to reinvest out out capital rather than return it to us if you can find good opportunities. The answer is we've we've had a look at some opportunities over the over the years, and we continue to look at opportunities on a regular basis. You know, we we haven't been able to find another Arapura. We've been trying very, very hard, and we haven't been able to find one. We have found, you know, way back when we found some projects which we really liked and then the market didn't support the company and as a consequence, our market fell and, yeah, we're we're unable to complete on those deals and they were limestone projects. We still do really like the limestone space. You know, it has lots of synergies for what we're doing.

47:23 But at the moment, you know, there's been a lot of momentum build up around people wanting to see us return some capital to shareholders. And I think, you know, at this point in time, you know, the bias has to very strongly be towards continuing to push Arapura into a very strong profitable position because, you know, it's something that we've been saying we would do for a long time. Despite the fact that we have done it, the market's still not responding to to what we've done. And we'll you know, let's just give it another year and see let's give it another year and see see how how things look, how if we put another really strong year under our belt.

48:11 Brian, just coming up to sort of the hour mark, I you have picked off a number of those questions. And thank you to everyone for for sending those through. Of course, the team review any further questions that come through. Just perhaps, Brian, I can ask just for a few closing comments before we reach out to investors to give you their feedback. I know it's particularly important to you and the team. I think, you know and I I say this every time. I mean, HARVEST is a is a very simple business. As it sits, it's a very simple business. It, you know, it has a one very high quality product that's that is in demand, and our customers are very supportive of that product. The team in Brazil work extremely hard, very professional, and take a lot of pride in delivering that product to our customers. And, you know, I do come across some of the commentary that, you know, appears on bulletin boards and tweets and those sorts of things from time to time.

49:05 You know, some of it gets fed through to me, and, you know, it's it really disappoints me when people try to second guess and try to read through into the minutiae and try to understand it, and they assume that there's something wrong. There is nothing wrong. There is nothing wrong with the business of HARVEST. The business of HARVEST is doing fantastically well. The only thing that's wrong is we haven't got recognition of that fact on the stock market at this point in time. And, you know, please, can I just encourage everybody to take a little bit of a step back and and stop trying to overanalyze things? I know, you know, people get upset when I say this, but it it's really important. You know? Just keep back in the broad brush strokes. If you're happy to be a shareholder of HARVEST, you need to be a shareholder of HARVEST for the medium term, not for today or tomorrow, but for the, you know, months and years to come because, you know, we're just hitting our stride.

50:06 And if, you know, if you can't trust in the board and management, then, unfortunately, HARVEST isn't the company for you. And if you do trust in the board and management, you know, second guessing us and saying that we're doing things wrong or that it's not helpful. You know? If, you know, if you've got something that you wanna contribute to the discussion, email me, and we'll respond as best we can. But please bear in mind that, you know, we're not being secretive. We're not being disruptive or working against shareholders. We are simply saying there are certain limits to what we're prepared to talk about because at the end of the day, we are a trading business in a very competitive market. And, you know, we don't respond to people who won't, you know, present themselves and want to talk using, you know, fake names and bulletin boards. It's just not the way it works. But if you're a shareholder and you wanna put your foot forward and explain who you are and what your interest in the company is and have be part of the discussion, then we're happy to talk to you.

51:13 That's fantastic, Brian. Thank you very much indeed for updating investors today. Can I please ask investors not to close the sessions? We automatically redirect it to provide your feedback in order the team can understand your views and expectations. It's only take a few moments to complete, and that is greatly valued by the company. On behalf of the management team of HARVEST MINERALS LIMITED, we'd to thank you for attending today's presentation. That concludes today's session. Thank you, and good morning to you all.