Kazera Global (LSE:KZG) — Investor Presentation

0:01 Good afternoon, and welcome to the KZERA GLOBAL PLC investor presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged, and they can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Simply type in your questions and press send. The company may not be in a position to answer every question received during the meeting itself. However, the company can review all questions submitted today and publish responses where it's appropriate to do so. Before we begin, I would like to submit the following poll,

0:31 and I would now like to hand you over to CEO, Edmunds. Good afternoon, sir. Afternoon. Thank you. Right. KAZERA GLOBAL. The the slides I'm gonna take you through fairly quickly, and and they're probably summarized really by by the first one, which is affected as by the end of this year, we'll be in positive cash flow, in terms of both diamonds and heavy mineral sands is our prediction. So that that's an enormous step after nearly four and a half years of of development. But that there is from starting from nothing, by the end of this year, we'll be in production, which which is just tremendous tremendous success to the team in South Africa and everywhere.

1:31 Itself is is a aimless investment company. That means that we can do deals without necessarily encountering the, reverse takeover obligations. So it's a much easier way for us to do deals. It puts us in a very strong position to put deals together. We have a wide, discretion in terms of of types of deals as well as in terms of where they are. And we have a really good team, I believe, on the board and supporting us who are able to identify and and find some really good deals, but more importantly, I think, are in a position to actually convert them from being ideas into being reality. And I think that is proven by the fact that, as I say, we will be in production, on both diamonds and heavy mineral sands by the end of this year.

2:25 The board, is our chairman is is doctor John Wardle. John has got a very impressive track record, in the mining industry. He recently joined the board, and he, brings great experience, great great working knowledge in terms of of mining, also some fantastic contacts. And he's been incredibly supportive, in a very short time that he's been with the board, and I think he's gonna be an absolute absolute asset to the company. Other nonexecutive director is Jeff Aye. Jeff, again, has a a long track record, particularly in the financial part of of of industry, and is, again, becoming particularly useful in terms of the company.

3:18 We have two directors who are who are resigning, Gerard Kisbee Green, who was the chairman. Gerard has done an enormous amount of the company. He's been very good for the company during the time he was there, And Peter Wilson, who has came on as a a nonexecutive director specializing in coal mining projects. And they're both leaving, and I thank them both for for all the time and effort they've put in over the last few years.

3:49 Capital structure. Well, as you can see, the most important thing probably from the point of view of investors and future investors is that the share price is responding very well to the fact that we are on the cusp of of delivery. I think the important thing here is, you know, four years of of of building a mine which combines both heavy mineral sands and diamonds, to the best of my knowledge, never been done in the world before. Four years, I think, is an incredibly short time to go from a concept to production. So, yeah, the share price is starting to respond to that, but I think it's still still very much focused on the fact that production is about to start. One would expect to see a major difference once we actually are in production.

4:40 Investment criteria, as you can see, are very broad. We are predominantly focused in Africa at the moment, but there is no reason. We couldn't look at at other jurisdictions and wouldn't look at other jurisdictions. Our concern, when we're looking at anything is to make sure, firstly, that we can identify a way of achieving a return, and secondly, ensuring that whatever investment we make is as secure as we can possibly make it. So we will try to avoid high risk areas or areas where there is a lot of political instability. We we are there to to increase the value of the company. That's that's that's our prime our prime mission.

5:27 Current investments, is that little little orange dot at the top, left hand corner of South Africa. It's in the Northern Cape. It is right below the Orange River, which is the border between South Africa and Namibia. It is approximately 850 kilometers from Cape Town, and it is a very isolated part of South Africa. That has its advantages, in terms of of it's not particularly affected by by, local politics and and some of the issues that surround some of the cities in South Africa. It means that anything that we do has a very positive impact on a relatively small population, so a small amount goes a long way.

6:16 But it also means that we've got issues with logistics, but you can't you can't have it all, I guess. The Whalehead Minerals Whalehead Minerals is our heavy mineral sand operation. It is a natural beach in a sea bay. It's a c in the form of a letter c, so it's it's a it's a bay like that. And the best thing about it possibly, apart from the very, very high grades of of heavy mineral sands, is that it is constantly replenished by both tide and wind action. So we end up as we dig it out, it gets replaced by this the heavy mineral sands get replaced by the sea. That has enormous number of implications. Firstly, any kind of resource is is almost unlimited provided one doesn't overmine it.

7:11 But secondly, in terms of rehabilitation and in terms of environmental impact, we are helped enormously by by, the sea in terms of making restoring the beach back to where it was the whole time.

7:29 Yeah. You can see the numbers there. I won't go through those in great detail because they are what they are. It is a it's only five hectares, but the quality of of the, deposit makes it into a very exciting prospect.

7:47 It's very, very high quality. The predominant minerals are ilmenite, followed by garnet, and then rutile and zircon. Rutile and zircon haven't been included in our modeling up till now, but actually, they are big enough to make a a a major impact to the bottom line. Ilmenite, obviously, is is the big one. Ilmenite is used in in whitening, but it's a titanium dioxide product. So it's also used in the production of titanium, which is used for, things like aircraft and and high grade military applications. You can see the breakdown there of of what what, we have, and where both garnet and ilmenite tend to be used.

8:43 Moving on then to diamonds. Deep Blue Minerals is our diamond company. Diamonds in in our particular area are mined from the beach, so they are part of of what we're doing as we as we're removing heavy mineral sands. We need to remove the diamonds from them before we can actually do anything with the heavy mineral sands, which makes it into a very cost effective operation.

9:11 Alexander Bay has been an area of in which diamonds have been mined for almost a hundred years now. A lot of diamonds have been mined there. They are regarded as world class, gemstone quality diamonds, but they are do tend to be fairly small, and they tend to be used in jewelry. They're a yellow diamond, very clear. And and they are small, but good quality because of the fact that they have been moved by millions of years of of wave and river action down to the coast, and they've been polished by the sand. And yeah. So a very good quality diamond, but as I say, quite small, but partly because of that that whole action.

9:59 You can see from that picture exactly where where the project is and where we where we're working. And it's yeah. There are a lot of diamonds still there, an enormous number of diamonds still there. Our CEO in South Africa, Johan Truter, has been mining diamonds all his life, apart from a brief spell when he got involved in mining heavy mineral sands, which he's obviously returned to. And, yeah, his his his father was a diamond miner before him. The our local knowledge is absolutely unequaled, which is which is incredibly helpful in terms of finding the best deposits. African Tantalum African Tantalum was a is a tantalum mine based in Namibia, just across the border from South Africa and about 400 kilometers away from where we're currently operating.

10:56 It we sold it for 13,000,000 to a company called Hebei Chingcheng. Hebei have paid us just under 5,000,000. They owe us another 9,500,000 including interest. That was due to be paid at the end of last year, and they haven't paid it. We haven't got into a major panic about it because we have the right to take the mine back in terms of the contract and to retain any money they've paid to date. But what we have now done is we have instituted arbitration proceedings against them, and the arbitration proceedings are to get them to pay the balance of the money which is due to us. And that there should be, in terms of the contract, finalized within two months of the twenty third of this month.

11:45 So before the end of the year, we would expect to have finalization of of the of the claim against Hebe, which is, again, very positive for for the company.

11:59 Value catalysts. Well, we have now achieved the nuclear regulators clearance because of the fact that we had some radioactive materials in our heavy mineral sands. We weren't allowed to mine them. There is obviously a fairly complicated procedure to be followed to to get the nuclear regulator certificate. We have done that, and so we are now in a position to move on with with the progression of of the heavy mineral sands. And I'll say we will be in production and selling heavy mineral sands, we anticipate before the end of this year. What we are doing at the moment is we are in discussions with a number of off takers, and it's a question of identifying the off taker, which is going to give the best value to KZERA and its shareholders.

12:50 There are offtakers who will take it pretty much as it is as it comes out the ground, obviously, once the diamonds have been taken out of it. There are offtakers who will want to see the silica, the sand removed from it, And there are off takers who would prefer to buy a purified product, not as to buy ilmenite or to buy or whatever. So those are all things to be to be explored at the moment, which we're actively doing. If we are get to a stage where we decide to institute a magnetic separation, there are off takers who have agreed that they will carry the cost of that there to be offset against the off take agreements in the future. So there's a lot of lot of possibilities. But where we will get to is we will start mining the heavy mineral sands. We will be mining, we would hope, initially around 3,000 tons, and we would like to see that increase to in excess of 6,000 tons a month, which will produce a very healthy and ongoing profit for KZERA, particularly when added to the to the diamond revenues.

14:00 So why invest in KZERA?

14:03 It's will be self funding, from the end of this year. It has a very clear path in terms of where it's going. One of the important points is that we have also applied for a mining right to the adjacent beach that is approximately 30 times bigger than the current area, and that they will give us a substantial increase in in volumes. It's also a self

14:33 re regenerating beach. So it's it it also will be it will be a a much bigger resource than is just initially identified, but it's 30 times bigger so that they if we can make a good profit out of WorldHead, something 30 times bigger is gonna be superb. Robust markets for sure. Ilmenite is is a a in in short supply at the moment. Zircon and rutile are equally, sought after, and there doesn't seem to be any likelihood that that they will change in any kind of foreseeable future. Sustainable. As I mentioned, one of the best things about this this whole operation is the way in which the beach is replenished by by currents and and, wind action.

15:26 We we're mining on a beach where very little grows because it is heavy mineral sands in which very little does grow. But in our diamond operations, if we are inland, how what we tend to do is we remove the the topsoil, which is very, very thin. This is essentially desert. We remove the topsoil. We cover that. We then dig down. We remove the sand above the diamond gravels. We then dig up the diamond gravels. We replace the sand, and we replace the topsoil. So regeneration happens as we go on. It's an important part of our our, whole strategy, and it is it is, something about which, which we take very seriously, but it's also something which actually is is a relatively easy thing for us to do. One of the things to always bear in mind with both diamonds and heavy mineral sands is that there are no chemicals involved. So there's nothing being added to it. It's all it's all it's all natural, and it's all being dealt with.

16:19 It's what's on the beach remains on the beach. We've got great support from the local people. The the local community is is very supportive. We've got very good links with them, again, largely through Johan. And we've got some very, very good PE partners involved. So, yeah, it's a really strong place to be. And then finally, I guess, the team itself, you know, we've got a a really it's a small team in terms of of the London board, but we're in got the support of a really good team in South Africa. We've got the support of some really good professionals in South Africa. And we've actually been really lucky as a company to have the support of of our shareholders. We've got some fantastic shareholders who stood by us through a period where we couldn't say very much because we were building and and probably not particularly interested in RNS about the fact we've repainted a machine.

17:13 But, you know, we're now on the edge of production, and I think everybody's patience will be rewarded.

17:22 I've sort of dealt, I think, pretty much with the, ESG side of it. As I said, it's a very important part of our our mission. The environment is is is dealt with locally. You know, the nice thing is it's a small population in the area. A small small amount of money goes enormously long way. It's a bit of a neglected area, and so we would love to to be very instrumental in in seeing that change. Corporate governance, we are very strict on, obviously, as as as we need to be. So, yeah, I think it's it's it's in summary, it's it's a really good time for people to be investing in KZERA. The hard work has been done. The rewards are about to start to come in, and everything is looking particularly favorable. So yeah.

18:12 Thank you. Perfect, Dennis. Thank you very much indeed for your presentation. Ladies and gentlemen, please do continue to submit your questions using the Q and A tab situated on the right hand corner of your screen. While the company take a few moments to review those questions submitted today, I would like to remind you that a recording of this presentation along with a copy of the slides and the published Q and A can be accessed via our investor dashboard. Dennis, as you can see, we have received a number of questions for today's presentation. And Dennis, we may now hand back so you can kindly ask you to read up the questions, give responses where appropriate to do so, and I'll pick up from you at the end. Great. Thank you. Mike, the first question, is how confident are you in the debt recovery claim against Hebei, and what is the expected time scale for resolution?

18:58 I think I've really answered that. We are confident in it, obviously. Otherwise, we wouldn't be wasting money, or would be wasting money to be trying to recover. But, you know, don't forget, we we have the right to take back the company, and to retain all monies which have been paid to date. So that's that's an enormously beneficial place for us to be. KAZERA is involved in a neighboring mine. They have other interests in in Namibia. And perhaps the the the most positive news of all is that in the last couple of weeks, the extension to allow Hebe or to allow Aftan, which is KZERA's company, to mine lithium, which was not previously in existence, has now been granted.

19:47 So that means, firstly, the value of of of the asset has increased because we now have the rise in both tantalum and lithium. But secondly, the value to Hebe has increased. And so their their reasons for for, coming to a positive resolution have increased. So that that's that's really, really positive news, I think, for for everybody.

20:12 Next question. In the event of debt recovery approaching 10,000,000, what are the company's plans for this? Well, it depends on a number of things. I have always said that KZERA is not a bank. So we will not be sitting in a situation where we have received $10,000,000 or $9,500,000 and are just sitting on it without without any plans for it, and in three years' time, it's been spent or whatever. Firstly, will be cash positive, we believe, from the end of this year. Secondly, if and when the money is recovered from Herve, our intention would be to distribute it to shareholders one way or another.

20:59 So it might be a share buyback. It might be a dividend. It might be some sort of in specie kind of distribution. But the intention would be for us to get that money back to to to shareholders. And the only reason that we wouldn't be repaying it back to Shell's would be if there was a big deal which we were trying to do, which required us to put the money in and where we felt that we would actually improve the the the value to to to shareholders. But, yeah, I think as it stands right now, that that money would be redistributed to shareholders. Is there a possibility of a spinout of the HMS operations when in full operation to achieve a standalone valuation and repurpose the investment company status?

21:49 Absolutely. We there are a number of of possibilities as we go forward. Spinning off spinning off the heavy mineral sands and diamond side and relisting that possibly would would certainly be one of them. We're an investment company, so what we need to be doing is looking at investments and assessing the whole time whether it makes sense for us to be keeping them or to be disposing of them. Having said that, one of the attractive things about about Whalehead, and Deep Blue is and they they go together. You we can't mine heavy mineral sands without having a right to mine diamonds. But one of the good things about them is that they generate cash.

22:34 So it is not a bad place for an investment company to be in, to have a a good cash producing asset, which which means it doesn't need to go to back to shareholders to to cover overheads. It means that it's in a stronger much stronger place to do any kind of a transaction going forward. And so, yeah, there are a number of things to take into account. But as a board, those are things that we look at constantly and certainly are things we will be looking at as we come into production. So yeah. If all key aspects of KZERA's business succeed in the coming months, what do you estimate the company's true present net present value to be in the mid to long term? Similarly, what share price would you consider to be a fair reflection of where you expect KZERA's value to be at in the next six to twelve months?

23:26 Look. I think I think any any investor's guess is probably better than mine. My focus very much is on getting the company into production and getting the company into a position where all these various options that we've discussed open up to us. Taking into account that the shares currently are trading at about 1.1, which I think is is is is an undervalue considering that that the company is about to go into production, considering that we're not a a exploration company. But on on the basis of that, and when we go into production, one would expect to see, I would have thought, a fairly a fairly substantial increase in in value.

24:13 The other increase in value will be will be caused by a resolution of the Hebei issue. And then, you know, whatever number we've come up to in terms of of a company which is in production and is proven its its its its model, how many times does that get increased when when we add to it today and the fact that that's 30 times bigger, with with probably arguably even better, quality heavy mineral sands deposits over to investors. But, you know, is it 30 times? Is it 20 times? But it's gotta be it's gotta be it's gotta be something, and it's gotta be pretty substantial. So there's a lot of there's a lot of interesting stuff, and and there are other opportunities as well in South Africa. So yeah. Yeah.

25:09 Right. With the commencement of diamond sands mining and processing at Deep Blue is outlined in the 07/02/2002 for RNS and the start of heavy mineral sands production at Whalehead Minerals, can you update shareholders on the significant cash flow being produced as mentioned at r RNS? Yeah. I think that RNS doesn't refer to significant cash flow being produced. I think it refers to cash flow to be produced, which which is very much what we expect to see before the end of the year. And Until we've got a a signed offtake agreement in regards to the heavy mineral sands, it's very difficult for me to to come up with with a number. And it is quite possible that the initial number we start with will be substantially increased. So we could start with a situation where we are simply selling, almost raw products. So taking out the diamonds and selling raw product.

26:01 We would not expect that price to be as high as the price would be if we were taking out the silica. We would not expect the price after taking out the silica to be as high as the price would be if we've gone through magnetic separation and are separating out the ilmenite, the gaan, zircon, and the rutile. So there are so many different different ways of of answering that question, and our first our first goal will be will be cash flow generation, and our second goal will then be maximizing that. And and yeah. It's all we can say is with confidence is that is that we will have very attractive and positive cash flows, we believe. When can we expect the Powder Flay permit to be granted as it seems to be many years Central supplied for?

26:48 Yeah. It it's been a long process. We've had various arguments with, neighbors and others regarding the coordinates. There there's a lot of interest in our human or sands. They are incredibly rich, as I keep saying. And so, you know, we've had to fight to keep them, and we've had to fight to increase the area over which we're applying. But progress looks pretty good. The Department of Mines appears to be working very much more effectively than it ever has before and particularly in that area. And we are very confident that that it will happen in the not too distant future. So, yeah, we we are we're very positive, and we don't think it'll be very long.

27:39 But but I would very much hesitate to to give an answer to that because I don't have control over it. It's something which is gonna happen with the Department of Mines. You know, we waited for a mining permit for two and a half years. I don't think we're in that situation. We certainly aren't in the COVID situation anymore. And as I said, the department is working much more efficiently at the moment, so we're very positive. Next question. Is the Arcadia Swanson processing site reliant on AFTAN's water supply permit? Okay. Arcadia Swanson the Arcadia Swanson processing site is the mine adjacent to our mine in Namibia, the one which was sold to Hebe. They are sourcing water, we believe, from the Warren Bot municipality, which is the local town.

28:29 They're apparently going to supply them with water. So, yeah, the two aren't aren't dependent on the same water source. Our water source, we have always worked on the basis of haven't always worked. In recent years, we've worked on the basis of accessing underground water, which we have had experts telling us are more than sufficient. But the mining method we would be using as well would be would be very, very low use of water. Next question. If the Aftan mine sale does proceed, what measures and processes would be implemented to ensure royalties attributable to the Aftan sites are recorded and paid to KZG? Well, I guess that's that's the same position that that any mine is, in which it's receiving royalties.

29:18 The Namibian Department of Mining is very, efficient and very good, So they would be monitoring the mine very closely. Obviously, any exports of lithium or tantrum come to that would be would be controlled by them. And so getting access to the numbers is very easy. And then the question of getting payment, well, Hebe have when Hebe had money, our experience with them is they've always been they've always been honest and straightforward. I would be absolutely amazed if they didn't continue to to honor their obligations going forward once we've got our our claims settled.

30:05 And yeah. But but worst comes to worst. Koltsin and Mabira are are strong. It was another way to do it. Is there a possibility to use different off takers, I e sell some direct as is and also sell some after separated? Absolutely. As I said earlier, we there are lot of different ways to do this, and we are looking at all of them, and it's a question of what will be best for our shareholders in the company. We're a slightly different situation to most mines. Ordinarily, if you've got a a mineral resource of a 100,000 tons, and you you sell some of that there at a lower price than you might have obtained, that's money that you've lost.

30:53 In our case, because of the fact that our resource is constantly replenished, it doesn't really matter. If we sell something at a at a lower price, well, in the future, we will sell it at a higher price. And we haven't lost anything because what we've got is being is being replaced. So that that's a a big difference. Next question. What confidence can you provide shareholders that you will get into production in short order? Well, the fact that we have got all our our our equipments in place, the fact that we have got the nuclear regulators clearance, and the fact that we are already in the process of about to commence the process of actually processing our heavy mineral sands, which contains which contains diamonds.

31:49 So we we're in the we'll be starting the diamond process, processing, frog we would we're anticipating next week. And if that works, the way one and the way that everything indicated will this this stuff has been extensively tested on-site. It's been intense extensively investigated by third parties. It's yeah. I I think I I I have no doubt that that what is there will work, and I have no doubt that it will work exceptionally well. The equipment we've got on-site represents a fraction of what we've paid for it. We've been incredibly lucky in in in the acquisitions we've done. We've been incredibly lucky in the team that we've got in South Africa who have who have refurbished, equipment we bought secondhand, and looked after our stuff. So it's probably in better condition now than it was when we bought it. In fact, I'm absolutely sure it is.

32:43 We yeah. In a really, really strong place with equipment, which as I say, is just just on a a pure asset value, greatly, greatly exceeds what we've paid for it. Next question. Please explain how the 32,000,000 loan works to the BEE partners and how it gets repaid to KZERA. The loan there's actually two loans. So they are they total around $32,000,000. And how it works is that BEE partners have to

33:21 the entrepreneurial section of the BEE partners have to buy their share of of the the the BEE assets. If they don't have, the the cash to do that, then what companies do is they appoint BEE partners, and the BEE partners pay for their shares out of dividends. So before we start paying dividends, or the full share of dividends to be those BEE partners, we recover the $32,000,000. So, effectively, we get the benefit of those dividends until such time as that $32,000,000 has been repaid. An indication of revenue through 2025, I have answered that already, I think, in terms of it's very difficult to assess that until we've got offtake agreements and until we're actually have got fixed answers to to, what sort of prices people will pay for samples and what sort of level of processing people want. There will then be a strategy worked out by the board to maximize the, return for for our investors.

34:43 Next question. Since invoking the arbitration with Hibbe, have you had any contact with them? No. We've we've instructed our lawyers. Our lawyers have have issued initial letter of demand, and it's down to Herve to to respond. It's not down to us to see if they're going to. We have, however, had a a response. The CEO, Hebe, did contact me to let me know that they had got the lithium extension to their mining license, which is, as I say, in both their best interest, but also very much is is in KAZERA's favor because it increases the value of the asset.

35:33 When do we expect to hear next about Parafle? We've gone through that. Have we looked at investing in any gold projects in South Africa? Our focus has been on husbanding husbanding resources. We it's very easy to end up in a situation where one is looking at at half a dozen different projects, not quite enough money to to fund any of them, not quite enough money to keep the whole thing going, and you end up in a situation which is not uncommon on the stock market of nothing ever actually coming to fruition, nothing actually ever generating proper revenues, nothing ever becoming cash flow positive and constantly going back to shareholders for more money at a at a at a constantly devaluing price.

36:18 There is a short period of time where you can you can sell a great story, and everybody responds to that day for a short period. But unless that day starts to generate cash, my view is that there tends to be a a downward spiral. So we are focusing on getting our heavy mineral sands and our diamonds into production, becoming cash flow positive. Yeah. We've been approached by lots and lots of other with lots of other opportunities. We look at all of them. But right now, our view very much is focus on the knitting, I guess. Okay. Next question. What is happening with the BEE 30%? Well, I think again, that's probably answered. Yeah.

37:10 Next question is given the remote location, will transport cost be a large cost if product production product is not sold in its final form? No. Transport costs will be a major factor no matter what. It'll either be a major factor for us because we are transporting our products, whether it's whether it's absolutely rule of the mine containing containing silica and everything else, or whether it's it's separated out into the various products, transport costs will be will be a a major issue. And even if we've got a a off taker who is prepared to pay us a price at the mine gate, which we we do a couple of of discussions ongoing about that.

37:58 Even if it was that sort of an off taker, whatever price they offered us would be affected by the fact that they've got a transporter. Transport is is an issue. No question. Right. Next question. Do you want African tantalum back? If so, what would you do with it? It's a considerably different beast to what it was before now that now that we've got the the lithium extension. I believe that there is good money to be made from the mining of the tantalum, and we spent a lot of money looking at possibilities on the tantalum.

38:48 But quite honestly, there there are a lot of there are a lot of issues around around the mine. The the I think I think that if we can do a or get to a sensible finalization of the arbitration, we can get money back, and that money can get distributed to shareholders. I think that's probably the best way for for for shareholders to go. Right. Next question. K. John H. Feels that we must have financial models and forecast to plan the business. An indication, perhaps a range, how many tons of products at a potential price off.

39:37 Well, yeah, we can talk about broad ranges. We're anticipating being in production of around 6,000 tons of heavy mineral sands a month. The profit on that there depending very much on on what the actual deal is and what is actually being bought and what we are required to do probably ranges from somewhere between 40 tons a month and probably just over a 100 tons a month dollars per ton, sorry, per ton. So it's between $40 per ton and and a $100 per ton. And then we would expect the diamond operations to pretty much cover the costs of mining, actual mining, in in South Africa.

40:26 So, yeah, that's that's, I guess, is is is as specific as I can be at this stage until we have we have something more tangible. Next question. Did you say we'll be cash flow positive by the year end? Does that mean we're actually producing anything at this very moment? Yeah. As I've said, we will be cash flow positive by the year end. We anticipate we are mining at the moment, but I don't and can't yeah. We're we're we're producing we're not producing final products at the moment. The the diamond mining operation will only be signed off next week, and that day will mean we can start operating in the diamond mining. Whilst part of the diamond mining is the removal of heavy mineral sands, we won't be able to actually process those heavy mineral sands for the next couple of weeks. But, yeah, all that's all on track.

41:20 And as I say, you know, at the moment, what we're doing is finalizing offtake agreements and building up some stockpiles. So that's that's the that that's kind of where we are, and that's how we will get to cash flow positivity. We would expect Alex will sell diamonds on auction, as I think most of our current shareholders will know. And we would expect them to to be conducting an auction before the end of the year for their own cash flow reasons. And we would anticipate having a substantial number of carats in that auction. So yeah. That's great, Dennis. I believe you have addressed all those questions from investors today. And, of course, the company can review all questions submitted today. I will publish those responses on the investment company platform.

42:07 But before redirecting investors to provide you with their feedback, which is particularly important to the company, Dennis, could I please ask you for a few closing comments? Thank you. I guess I guess it really comes down to, you know, after four and a half years of building this building a plant, we are we are sitting in a situation where we're about to get into production, the things about to to really take off. And we're sitting with a share price, which is reflecting where we were rather than where we're going to be. So it seems to me to be a fantastic time to invest and one of the reasons that I have and indeed as has as has John Wardle. So I can't really say more than than, you know, I I I put my money where my mouth is, and I I believe it's a superb time to be getting into KZERA.

43:02 Perfect. Thank you very much, Dennis, and thank you once again for updating investors today. Could I please ask investors not to close the session as you will now be automatically redirected to provide a feedback and order that the board can better understand your views and expectations. This will only take a few moments to complete, and I'm sure will be greatly valued by the company. On behalf of the management team of KZERA GLOBAL PLC, we'd like to thank you for attending today's presentation, and good afternoon to you all.