Pensana (LSE:PRE) — Investor Webinar

0:01 Good morning, ladies and gentlemen, and welcome to the PENSANA Investor Presentation. Throughout this presentation, investors will be in listen only mode. Questions are encouraged and can be submitted at any time using the Q and A tab situated on the right hand corner of your screen. Just please simply type in your question and press send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company review all questions submitted today and publish responses where it's appropriate to do so. These will be available via your Investor Meet company dashboard, and we'll send you an email to notify you when they're ready for your review. I'd also like to remind you that this presentation is being recorded. Before we begin, we would like to submit to the following poll. And if you'd be so kind and give that your attention, we would be most grateful. And I'd now like to hand over to Paul Atherly, chairman from PENSANA. Good morning, sir.

0:47 Morning, Mark. Thank you very much, Matt. Thank you to everybody who's taking the trouble to register and to join the webinar this morning. I think we've got over 250 people signed up, so that's absolutely fantastic. The purpose of this morning's webinar is to allow you as investors and shareholders to hear from our CEO, Tim George, and our CFO, Rob Kaplan, as an update on what's what's happening on the ground at Saltend at Longonjo and also on the financing. I have to stress, of course, that the information we're providing here is is simply color, a background to our normal r and s announcements, and there's nothing that could be construed that is in addition to that. And I think most people on the call would understand that. So just by way of an intro, I think for anybody who's not aware, we've come a long way as a company in the last three three years. I joined the company in May 2018, and we were involved with an an exploration project essentially in Angola.

1:49 We've spent the last three years drilling that out, going through various studies, building a team, and progressing the development of the project from what was originally a mine that was gonna produce a concentrate and export to China to one subsequently moved on to build a processing facility in Angola to produce a mixed rare of carbonate that then got developed into producing a mixed rare of sulfate, which enables us to look at going to the final step of the process, which is separation. And we've identified this site at Salt End in Humber, UK inside of Freeport, which we were had boots on the ground October the fifth last year. We very rapidly moved that project to a point where we now have a mine, a concentrator, a mineral a mixture of sulfate production facility being designed, ready to construct in the Longojo in Angola.

2:51 And as I said, this major railroad separation facility in Saltend in The UK. What I'd like to do is invite CEO Tim George to give us an update on the activities on the ground, and that'll be followed by a Rob Kaplan, CFO, to talk about the financing. And then I have a long list of questions from shareholders and investors and other interested parties, were very gratefully received. We'll we will collectively try our very, very best to answer all those questions. So without further ado, if I can hand over to CEO, Tim George. Thank you, Paul. Good good morning all, and welcome. Just by way of background, I have been, in and out of Angola over the last, fifteen odd years and watched the country, transition out of, civil war when I was first still there through to the early days of the Peace Accords in various facets of engineering and construction and then mining in the mid-2000s.

4:00 And it's been a pleasure to be able to get back into Angola now as the transition towards an environment which is particularly business friendly has been built up by the president's current president and his team over the past three or four years. Interestingly enough, as Paul mentioned, I've been I joined the team around two point five years ago when the project was still at its inception phases of exporting concentrates through to China. And it has been a particularly interesting road, and we are thankful of the support of the shareholders for supporting us in that development of the project towards the eventual objective of the salt and separation plant, which we believe is where the value chain is as far as this rare earth project is is at its peak.

5:09 Just in terms of the updating where we are, Much of the work that we have been doing in the last few months has been revolving around interpretation of pilot plants work that we have done on a fairly substantial bulk samples that we pulled out of Angola and sent to Perth just in time for lockdown. And so we were able to almost unhindered in terms of rollout of that program process this over the past year to the point where we are now well into the front end engineering and design of the plants.

6:08 This has been a bit of an interesting exercise because we've had salt end introduced in that process, and we have had a lot of focus in terms of bringing the salt end definition up to the plant definition that we've already achieved in Angola. In terms of our future ambitions, We've also included a couple of scoping studies for downstream processing as of separation products from PENSANA's separation facility and salt tenders as well, and that's why you'll see a little bit of space left in front of the facility there.

7:05 But effectively, we are now at the point where we will roll all of the test work programs up with on-site work ongoing into concluding the front end engineering and design process in towards the end of October, at which point we will update the capital cost estimates and operational cost estimates. I know a lot of you have been talking about this the study documentation. We had made a strategic decision in terms of optimizing time to roll straight into the front end engineering and design process, recognizing that we really do need to have this facility up and running in order to enjoy the transition from a into a negative supply scenario in 2023, which is forecast on NDPR in terms of benefiting from that cost advantage.

8:27 And our process is aimed at this point in concluding FEED such that we may commence construction. It's on the both Longonjo sites and the Sultan sites early in the New Year. We have a few final on-site programs which are being concluded at the moment associated with geotechnical and hydrological studies to confirm ground conditions, to confirm the foundation designs and so on. But at this point in time, the work on that is concluding this coming month.

9:19 In addition to that, there is a rollout of the information alongside quotes received from the vendors associated with the long lead items in particular. We have some items including the kiln and acid plant associated with Angola that are have been inclusive of vendor participation during the test work, and they're now embarked on detailed design associated with those facilities to enable a fast track program once we start construction on an EPCM basis early in the New Year.

10:13 Just in terms of a couple of the peripheral issues that have been floating around, in slide deck here, you'll see the Longonjo layout. It is a fairly straightforward build in terms of the combination and flotation circuits and then an associated acids bake kiln cracking units and resin and dilution circuits that is particularly the aspect that we believe has become part of the attractiveness of this project from a global basis in that we have managed to deplete the mixed rare earth sulfate that's produced from this plant of radionuclides and are able to export a clean product through to the salt end facility.

11:26 Just in terms of our rollout, we have been building the teams in Angola with preparation for manpower recruitment over the past four or five months. And that's going to be complemented by a a wood and project Paradigm project management owners representative team working out of Johannesburg in South Africa to with background and familiarity with the Angolan situation. And that team is now at strength on the detailed design stage, which is going to be rolled out over the months to the end of the year and supported by ongoing support from the Perth based team that has been involved in the project for the past two point five years.

12:32 In addition to that, the Sultan's work will be supported out of Wood's offices in Reading. And as you may have noticed on the various distribution lists, we have got boots on the ground on salt. And there, there is ongoing geotechnical work and also the preparatory work for the environmental permits application for the facility itself, which we will also close out at the end of this year. Just in terms of PENSANA's capacity itself and the broader team outside pure technical, we've brought on the sustainability manager, a company secretary based in The UK. And they're working out of our offices, which have been opened up in Leeds in support of the Yorkshire activities.

13:45 I think that pretty much sums it up, Paul, for the moment. Thank you very much for that, Tim. I wonder whether that's a really good opportunity for Rob for you to pick it up from there, please. Thank you, Tim. Paul, can you hear me okay? Yes. Just by way of introduction, my name is Rob Kaplan. I'm the CFO at PENSANA. I joined the company back in September 2019. And Tim and I had previously worked in Angola, which is probably fifteen years ago now and he'd always threatened that when an exciting project came along, would look to form the team again. So I'm back here, excited to be a part of his team under his astute leadership. My background has been broadly working in The UK and African mining space for the past twenty years, ex Anglo Platinum and then been with in the diamond space prior to joining PENSANA.

14:38 In terms of just hopping across to the financing element of the company, our recent June equity raise facilitated the ongoing project momentum that we've looked to establish. And this is catered for the completion of the FEED process by the end of October this year that Tim has alluded to. We're working on the early works programs in Angola and the site preparation at Salt End under the guidance of the PX Group is going ahead. As was previously highlighted, the main financing needed to cater for the $425,000,000 capital programs at Salt Inn and Nongongo is targeted to be a combination of debt and equity. This is combined with our engagement with the UK government's Automotive Transformation Fund, who we are hoping will potentially provide support in the form of a grant, a loan or a loan guarantee.

15:28 Just touching on the Automotive Transformation Fund in a bit more detail, they have accepted our stage one expression of interest that was done a couple of months ago and this has been reviewed and assessed by their program board and approved to progress to the second stage, which we're in currently. This second stage now involves an initial submission to the HMG Capital Grants and Loans team and subsequent assessment is now about to start which will involve various value for money tests and cases for intervention. We have received informal feedback that there is a definite strategic alignment of the PENSANA project with the aims and objectives of the Automotive Transformation Fund which is very positive. But obviously we're going through a process now and this is still subject to the HMG's final review and their process that they're following.

16:17 Post this review process, the next step and subject obviously to our ongoing progress will be a provisional approval of the grant offer following review by Treasury, at which point we'll look to update the market accordingly. So that's on the ATF side of things. I've mentioned previously that we are engaging on a bond financing as well And we've recently announced the formal engagement of ABG Sundal Collier and they are a leading Nordic investment bank that we've been engaging with headquartered in Oslo in Norway. And they're basically going to help us to progress this debt financing during Q4. The reason for our choosing them is due not only to their extensive track record, which we found out in the Nordic bond market.

17:07 They have a very broad natural resources sector expertise set as well as their debt structuring skills. But what we've also found which has been very valuable is their deep understanding of the Angolan environment and this is due to their previous experience in the oil sector and gas sector. In terms of Quantum, the envisaged senior debt facilities under discussion will comprise a senior secured first lien facility. The amount that we are targeting is up to CHF $250,000,000 over a five year term, which we'll be looking to obviously structure in due course as we get into the detail and that will be structured between the Salt End play and the Angolan Longganjo play.

17:54 And then we have of last week, we've now initiated the due diligence process with them and we'll be looking to be in a position to hopefully target a bond issuance during Q4 of twenty twenty one. Just for reference, and some people don't realize this, the Nordic bond market is the third largest in the world with an excess of US50 billion dollars outstanding across the various industries. And 50% of those bond issuances have been issued both in US dollars and euros. And a significant portion of these bonds we're finding are being taken up by non Nordic investors. So just to answer some of the questions that have been coming through down the line. Then subject to the bond and the ATF process as that evolves, we will then look to balance out the main financing with an equity piece.

18:43 We are currently in the process of initiating our first detailed credit research reports with our brokers and we'll be looking to hopefully update the market in due course in the coming month. As an aside, we're also working on several smaller finance work streams currently underway in Angola, where we are actively engaging with various scenarios on independent power producers and potential equipment rental houses who can help facilitate some of the smaller projects. Paul, from a high level perspective, that's me. Thank you. Thank you very much for that, Rob. We've got quite a few questions come through. I'm gonna pick up on the one that we've received on the q and a. And there is Deborah makes a point that there's some background noise from one of us on the on a microphone. So maybe we should move when we're not speaking.

19:36 We've got a question there regarding the future revenue streams. Have we got any orders? The answer is we entered into not to closure agreement with three parties to Lilly at this stage to discuss who they are, but obviously, they are very important. We are progressing those. A question for Tim. Philip K talks about the separation of flow sheet. Has it been piloted? What are the principal reagents into salt end? And will that be in liquid or solid form? Tim, I wonder whether you could address those questions. No. Thanks, Paul. The entire process has been piloted right the way through to salt ends now. And we actually will be continuing pilot work on for some months to come in terms of optimizing operational costs associated with reagents in particular because those are one of the significant inputs.

20:37 And salt ends bulk reagents will be hydrochloric acid in liquid form from pumped through the jetty facility that they have there and separately stored along with caustic soda, the liquid caustic soda 50%, which will again be ship offloaded. The only other significant quantity will be oxalic acid. And for those of you who understand the rare earth separation side of things, those are the key constituents in the salt extraction process and also the costification and re leach of the mixed rare earth salt that's coming through from Angola.

21:25 On the I can appreciate that. A question from Alan regarding the, I think, his expectations on the final decision from the ATF. I think, Rob, that refers to timing. I'm very interested to hear your answer on this. When do you think we'll have an answer from ATF? Paul, we are hopeful that it's going be in the next six to eight weeks. We're going through this due diligence process, but that's the anticipated time line that we'll be able to update the markets next six to eight weeks. Thank you very much for that. I have a list of other questions I'll quickly go through. Question, will the current share price be affected by the bond issue? Well, the purpose of the bond issue is debt. We're not issuing equity. So to the extent we're issuing less equity than it possibly would, that will be very, very positive for the share price in our view.

22:11 Funding question, will we be doing a rights issue to allow all shareholders to participate? It's something that the Board to consider in due course. Obviously, we're not considering a raise right now, but something we'll take on board. Can we have some guidance on the coupon or interest rate expected to be paid on the £250,000,000 bonds through ABG Sundal, Rob, I'll be fascinated in this. What coupon typically would one of these Nordic bonds be issued at? Paul, I'm going give a typical CFO on sense that's going to be in the range of 8% to 12%. We need to go through our processes on that front. There's obviously a combination between the SALTN sovereign credit risk and the Angolan African perceived credit risk, but we'll update the market in due course on that front. Would it be fair to say that the saltane component will be a much lower coupon than the Angola component? Yes, I think that's definitely where the feedback is at the moment on that front.

23:08 Thanks a lot. Question regarding the communication with shareholders, company share prices falling from £2.8 to £0.88 and effective radio silence from Paul. Can Paul indicate what steps taken to support the share price? We've, first of all, we appreciate the concern. We fully understand that people have bought shares at a higher price and it's trading lower. And we do believe part of that is communication. So we've consulted with shareholder groups, some of which are on this call. And this webinar is in response to that, and we will be communicating a lot more regularly than we have been in the past. Obviously, we've got a lot of news flow going forward. So hopefully, this communication, new communication will look to address share price concerns.

24:01 Once the production and debt repaid, dividends a priority? Yes, I can I think that's true? I think Rob would make the point that we need to generate free cash flow to service the bond coupon. But once that's been paid, then obviously there's a potential for dividends. I think the implication there is, are we going to be looking to reinvest excess capital into future growth and expansion? I think that's a trade off between paying it back to shareholders and growth, something for the Board to decide. But at this point in time, we're looking at some form of distribution. Recently, we had two Board members depart. That was Mark Honan and Neil McLaughlin. They are part of the a Board transition that's happening. I think many of you are familiar with junior resource companies. They go through an exploration and development phase and then a financing construction phase and then a production phase, if you like, there's three phases for a company at our stage. And we are going through board transition and to reflect that as we move into the financing and construction phase, and we do expect there to be more board changes going forward as the board strengthens to accommodate the bigger challenges the company faces going ahead.

25:22 Comments to be made on PENSANA on the radioactive component. Yes, that's right. Tim's addressed that. Most railroad projects around the world have components of radionuclides in the ore body. That's not really the issue. The issue is do you export those radionuclides from your mine site in your product? And Tim's made it very, very clear that our team has developed a process that actually extracts the ready nucleides and will be sending a clean mixed rare earth sulfate to solvent. So that's not an issue for us. And the question is, outline the strategy for safely handling disposing of the radioactive elements may be present at PENSANA's feedstock. Well, there's none in the feedstock because we're extracting it outside.

26:11 But that's a good question, Tim. Maybe you could talk too about the permanent tailing storage facility that's being created in Angola. Maybe that's good opportunity for you to talk about that. On mute, Tim. Tim, I think you're on mute. Thanks, Paul. The obviously, the release of the Church of England Pensions Fund sponsored or initiated report in terms of the global industry and standards on tailings management has been absorbed into the whole design process in particularly the tailings facility at Long Congo.

26:59 We have a downstream deposition methodology planned there with an impermeable dam membrane in the base of the facility itself when initially constructed. And co deposition of the flotation plus the mixed rare earth sulfate plant tailings into the facility. So radionuclides as part of the process that are present there in their various streams will be deposited in that facility in a nonsoluble form. And we've ongoing checking on that as well, but we've confirmed that that principle stands for it. We've also engaged with the Angola regulator to ensure that they completely understand and are happy with our radiation monitoring program. At this point in time, we already have all the baseline studies completed for that. So we're comfortable that we are in compliance with the international standards associated with norm deposits such as this one, which is no exception, as Paul pointed out.

28:23 Tim, thanks for that. We've got a few questions coming through on Salt End facilities. And the points being made, and it's a very good point, is that Salt End is a relatively straightforward facility being built in existing chemicals park in The UK, whereas Longonjo is being built in a greenfield site in Angola. So there's this potential for salt end to come on stream faster than Longonjo. And that leads to the potential for us to be able to provide feedstock to Salt N from other sources ahead of Longonjo coming on stream. And the questions are around are what are the status of the discussions in sourcing that feedstock?

29:09 And what's the kind of feedstock we can receive? And what's the kind of capacity? So just answering the last bits first, I'll leave all the complicated bit of the question for Tim to answer. But basically, the capacity for salt end is 12,500 tonnes of total various oxides per annum, of which 500 tonnes per annum of that is NDPR. Obviously, it depends a little bit of what's in the feedstock coming in. But Tim, maybe you could talk about that discussions we're having. Obviously, you can't name names, but I think it's clear that salt end is quite flexible. It can be relatively minor alterations in the front end. You can bring in everything from a concentrate to a direct or feed through to carbonate to a sulfate. Maybe you can talk through that.

30:06 Happening in rare earths for the last couple of years was one of the reasons why we saw the opportunity to to develop a hub at Saltend that wasn't solely dedicated to Longonge material. And yes, there is a significant amount of construction work that has to be well coordinated and handled to ensure that the time line associated with that Angolan facility is adhered to. And just backtracking a little bit in terms of why we have placed emphasis on early ordering of a lot of the long lead items for Angola in order to ensure the best chance of commissioning these facilities at the same time so that they will connect together.

31:07 However, recognizing that there are a few other projects which are at a similar stage to us in terms of of ability to come online, We have been engaging with some of those parties and who have expressed an interest in processing their mixed rare earth carbonates in whatever shape or form to come to Salt End as an alternative to the Asian market. And those discussions are ongoing. And we believe that there is also opportunity for securing existing supply of feedstock material as a contingency to feed PENSANA in the event that there's a month or two delay in shipping from Angola to make sure that the solvent extraction facility particularly has a slightly longer commissioning period. It won't need its full feed for a number of months at the outset.

32:20 And so we are making those plans to make sure that we're not we haven't got empty stockpiles when we're ready to start at that site. Thanks for that, Tim. Just further a few questions on Salt N. Talk about are we looking to expand Salt N. Yes, Salt N has the capacity to expand. But if you look at the diagram, there's a space you'll see in the bottom right hand corner of the footprint. And that's actually for we're looking at going from oxides to metals. So maybe, Tim, you can talk through the studies we've done on that and what the thinking is around that that that future potential development. No. Absolutely. The we've run a scoping level study at on on the metals plants in over the last four, five months and in order to be able to establish what space we need for it, what power we we we will require for it, and and and busy taking that forward in terms of in in in it it it'll be pursued more after we've completed the feed in terms of advancing it to the next stage of maturity.

33:41 But we're comfortable that the at scoping stage, it's it's imminently doable at the salt end site. And the attraction, of course, is there's a market for NDPR oxides and for the other rare earth oxides. But there's another market for if you can go to metal, if you can go to alloys. So it may be the part of the feedstock goes to metal and goes to a different part of the downstream market and the which complements, if you like, the market we're developing in the on the oxide side. There's a couple of questions regarding construction. I think you're being asked when when will construction start. So I guess the question is when will Rob have the finance in place, and then when will Tim be able to start start construction? Obviously, this is this is aspirational. We're not giving any guidance here. But, Tim and Rob, it's probably worth maybe sharing your current thinking on that. So maybe, Rob, talk to us about how you see the finance falling into place if everything goes according to plan. And then maybe, Tim, you can talk about when you can start doing what we're calling the main construction.

34:58 We're this predevelopment work now, but talk about the actual main construction. So maybe one for you, Rob, and then on to Tim. Thanks, Paul. From a financing perspective, I mentioned we're in the due diligence phase on both the ATF and the bond financing side of things. As regards the bond, we're looking to complete our due diligence process over the course of the next six to eight weeks to be in a position to go live with a bond issuance in Q4 depending on when that window period opens up, it will be circa November or December, that's the current thinking. The ATF process as I mentioned is a process that needs to be followed and we'll update the market on that front accordingly. And then as I mentioned, the balancing piece of equity subject to the bond process and the ATF will follow.

35:46 So if all things go according to plan, we're looking to start construction in earnest during the calendar year 2022 as soon as possible, the beginning of twenty twenty two. Yes. I mean, what what we're geared to do is have definition to be able to put all of the long lead items in action as soon as there are funds available for that. Those, as we as I mentioned, those RFQs have gone out, and and we've secured slots for those fabrications of the long lead items. So that that in in itself is actually the commencement of construction apart from first we And we half we Salt End, there is already made work being in undertaken by PX Group as operators there in terms of preparing the site and work on the outside battery limits on the support services for that site being upgraded.

37:11 So I think in terms of some of the early works programs that we anticipated in Angola have obviously been impacted by the ongoing restrictions on travel, but those are anticipated to be lifted in the near future. It's possible to get in and out without quarantining now. And so you'll see the level of activity there increase over the coming months. Thanks. Same to the question regarding the Snowden report. I think this refers to the Snowden SRK mineral reserve resource estimate.

37:56 I can answer that. That's currently being prepared and will be part the feed. There's a question, Tim, from Philip regarding a bentonite slurry wall with a rubber membrane, question mark. Sounds sounds one for you. Look. There are there are quite a number of options in terms of of of ceiling tailings dams. Bentonite is it's is is one of them, but there are a lot of other fabrics under scrutiny at the moment, which are in terms of cost effectiveness and durability being analyzed as part of the FEED process.

38:43 Thanks, Tim. And obviously, this is something that Wood Group and their geotechnical and Turning the Bank consultants are working on. So we're in their hands in that regard. The question is regarding our heads of agreement we signed with China Great Wall in July 2020. That's right. We're still engaged with them. We're looking to them to work with us to provide equipment packages. They're quite they built three major projects in Angola. So it's great having an engineering company in Angola to be able to engage with Wood Group and Paradigm Partners and our existing engineers. So the answer to the question is they will be involved in the we hope they'll be to bid on equipment packages that are currently being prepared. And hopefully, given their presence on the ground, they'll be able to provide competitive prices for us.

39:45 Gavin saying, the Sony company is conducting a peer analysis of Linus and MP. Well, that will be very interesting because Linus and MP are producing about the same amount that we are, that we're looking to produce. We're looking to produce 4,500 tonnes of NPR a year. Last year, Linus did 4,700 tonnes. And okay, they're in production. They're well ahead of us. But NP and materials are in a contract producer. They're looking to build a separation circuit, and they're looking to produce 6,000 tonnes of NDPR. So they're not too different to us, but they've respectively got market capitalizations of 4,000,000,000 and 6,000,000,000. So we're we've got a long way to catch up those two and then look forward to that peer analysis. Tom's asking about the tax arrangements with Angola.

40:35 We've announced those fiscal terms, those arrangements with the governments and the mine license. Maybe, Rob, you could just very, very quickly summarize those, please. Paul, we've got an initial grace period that's been provided by the Angolan government. The current modeling, we're looking to build that in. But effectively, the grace period is in the region of six years and there's various concessions that we're also speaking to the government about and we'll update the market in due course. But as the as you rightly alluded to, what we put out into the market are the key fiscal terms that we've got around that mining license. Thanks. Question is the marketing expense ATF bond equity financing complete by the end of this year. One for you, Robert. I guess that's a good call. What's your call? Will we get this away by the end of the year?

41:25 Paul, nothing's ever guaranteed, but that's our intention. And on the current trajectory, we're very hopeful. There's been a lot of positive support as can be anticipated at this stage. So yes, that is absolutely our focus and our strategy. Thanks, Rob. Question regarding securing offtakes. No, we don't have offtakes secured. And no, we're not dependent on European downstream companies first committing to new capacity. So we've got three NDAs. We're working with three companies, and we will look to develop those offtake commitments. How do we engage PENSANA EPC for seed support, please? I'm not sure what Darren's question means, whether he's looking for work from Tim, but I suggest you contact Tim directly on that way.

42:12 Are there any further appraisal studies around feedstock quality or is this being concluded? I think the answer to that question, Dylan, is that the parties we're dealing with, the potential counterparties have very, very well developed resources. And so we've got a very good understanding of what they are. Is there room for expansion at Salt N? Yes, there is. However, the focus will probably the focus is more likely to be on downstream into metals rather than expanding the oxide production. You're looking at making rare earth alloys and metal salt ends. I don't know if will put us into competition with less common metals, but yes, that's something that's on the table that Tim's alluded to. How applicable is the Angolan processing technology unlocking other ROE projects? Very good question.

43:00 And will divesting the supply chain from the suppliers affect or has this been taken into account upon debt financing? Well, the second part of the question, Rob can answer, I think that will enhance the bond of debt financing. And yes, absolutely. The reason why we patented the process that we developed at Angola means that, one is we'll be one of the very few in the world that's, that's pioneered this, been up to champion this, and we think it could become applicable to other resources. I'm just mindful of we're running through time. So Rob, do you want to comment on the diversity of feedstock to Salt N with respect to your the bond and the debt financing? Yes, absolutely, Paul. It's been something that we were looking to address from the very start of our engagement with the bond team. Obviously, the more we diversify the feedstock, it's just risk mitigation. So it's something that we're actively pursuing and will have a positive impact on the overall credit rating of a bond once we put it in place.

43:58 Sure. The question regarding the long term metal prices, obviously, we look at the long term forecast we're putting out there. And we know there's no terminal market in effect for the NDPR oxides. Basically have to negotiate each individual offtake agreement with each individual counterparty. And the actual pricing you get depends on that counterparty in that country. So for instance, China has some VAT costs you have to pay, other countries don't. So long term pricing is the we use the various Roskill, Adamas, CRU reports and then adjust it for the individual customer that we're targeting.

44:44 What other factors in addition to the lack comms? Did it cause drop in the share price? Are you saying it's a confidence issue in certain time? I think there's two aspects to it. One is we had a lot of people have made a lot of money in the stock. And as we've hit these going into this financing period, it's traditionally one where a stock will consolidate. So a lot of people have taken money off the table. When we converted to a purely UK company from an ASX company with a lot of ASX selling, and we did have quite a few margin sellers to London who have come out. But the stock's rebasing at this level. You'll see that it's trading in this range sort of $8.00 to $0.90 rebasing. So that means a lot of people have got out. The average entry price now is a lot higher than it was.

45:32 So if you like, we're hoping this is a platform that we can build from there. Just going back to the pre submitted questions, and I apologize that we are going to run out a little bit of our time here. We talked about the commissioning time. Tim, I wonder if you can give a response to where we are with Kula and Monteverde. And are there any other minerals at on Kula that we will be looking for? Yes. Apologies. I meant to include that at the start. COVID obviously impacted or slowed down activities in terms of geologic geology supervision ability, but our our well, they're now quite well experienced Angolan geologists have been able to continue in the field with with the program of exploration on on soil sampling and and and rock sampling.

46:36 And recently, Grant, our exploration geologist, was up there for a month and and and furthered those those programs that were slowed down by COVID. That there obviously, there there are the two significant carbonatites that have already been looked at. And what we're aiming there is is understanding the differences between them and LongVenture in terms of is there an opportunity for the heavier rare earth end of the spectrum there. And and we've we've picked up that's that's the case. And alongside a couple of other elements that are of interest at this point. Scandium is one of them, and and we've also picked up on a fluorite outcrop there as well. And those will be will be looked at in more detail in the coming months. So, yes, the the act there there is action there, and and and promising at this point.

47:44 And so when can we expect news flow? I know Grant has come back from from Simon. When can we start expecting action on the ground and some new flow from I think we'll put up an we'll put up out an update on cooler in a month's time or so once we've got some assay results back. Thanks, Tim. Very specific question. It has the company run a long gone job lot recently at the current rare earth prices. If so, what effect does it have on the economic cutoff grade, reserve strip ratio? What is the planned head grade for the first two years of operation? Pretty long question. But Tim, maybe you can address the we've got this five year, five, six year period early on where you've got these tremendous grades that come through.

48:37 And obviously, that's boosted by the current metal prices. Yes. Look, I mean, we update that periodically. And what's been interesting is is that from a production point of view, we're pricing things from 2023. And what's happening in the market at the moment has brought forward some of the pricing structures that we anticipated would only happen in 2023. So what it's doing at the moment is supporting the assumptions that have been made and in in in in the modeling to date.

49:28 Thanks for that, Tim. Tim, I'm gonna rush through the rest of the questions since we've got a few months left. This question regarding the split in financing between PENSANA and Angola. I think that's too early at this stage. Question, what is the percentage risk of the Angolan government pulling the rug out or a changing government? We have an election next year, and I we're reasonably confident the president of party will get in. But, you know, the Angolan government owns 23% of our company. So one would have thought that whatever the color of the government, they would want it to succeed. So we think that's relatively low percentage chance of risk. Does the diversification of feedstock affect the extraction process of the plant? Yes, it reflects the front end of the Sol 10 plant. So at another time, Tim can explain that depending what the feedstock is, you have to have slightly different modification to the front end.

50:17 So yes, it provides diversity of feedstock for for Rob's financiers, but it's slightly more complicated in processing the different types. Gavin's asked about a BFS. Well, you'll drive Tim nuts if you're asking for a BFS because he'll also step backwards step backwards twelve months. We're at FEED, front engineering design, which is a which we're actually is a lot more advanced than a BFS or a DFS or whatever these studies are referred to. So the answer is the FEED will have very, very high levels of detail on the capital and operating costs that we will release, and people will have a much stronger view on that. And just by way of background on that is a lot of noise about BFSs and DFSs.

51:07 Projects don't get financed on BFSs and DFSs. They get financed on FEED. You've actually got to go out and get contracts, people to quote on actual equipment packages and services, etcetera. And that's the they are the contracts that you can draw down your financing on. So running around with a PFS or a DFS or a BFS, whatever you want to call it, doesn't actually get you to draw down finance. It it gets you launches you into another process, which in the end of it is you get to fee, which is where which is what we're closing in on now. What is the fair NPV for PENSANA? One of our recent announcements we talked about, it's just the broad economics. I think its current numbers, it was it's in excess of $2,000,000,000 based on current the Adamas Intelligence forecast prices and our current estimates for the capital's operating costs. But we'll rerun the NPV when Tim and the team have finished the FEED studies, and that will be towards the end of October.

52:23 What's the impact of coronavirus on Angola, Tim? How is that actually to be fair, you know, I get asked this quite a lot. You know, the reality is that many of those countries in West Africa responded a heck of a lot faster, more effectively to the coronavirus outbreak than some European countries. You know, Angola moved very, very quickly to deal with it, so they responded very fast. I was there. They were heat testing in the airports many months, six months before that got brought into Europe. And the reason being is they were very, very aware of the impacts of viruses, on West Coast Africa because of the Ebola virus. They they were geared up for that. So they responded very, very effectively. But, Tim Tim, how's coronavirus affecting you in terms of your time scale?

53:10 I I I mean, Angola adopted a lot of the quarantine side of things. But as I as I explained, we got what we needed to get out to get all the all of the design work supported by metallurgical pilot plant test work out ahead of the COVID lockdowns. And Perth has pretty much operated right the way through unhindered, as many of you will know, from the Australian lockdown side of things. And now Angola is opening up because they've also managed to vaccinate reasonably effectively. So as we need it, in terms of timing, it's it's quite coincidental that the the quarantine restrictions in Angola are being eased just as we need to get going. So the wind is behind us on that front as well.

54:01 I have another question on we sent a 100 tons of drill core from Mongoljo to Perth for analysis when the results are being published and what's the impact on the NPV. Well, obviously, that's part of this. They've been incorporated into the pilot testing that Tim has referred to, and the results of that will all be incorporated into feed, which will then result into a newly published NPV at the end of October. We're talking about third party rare earth mines, and we've off that. What's the company's plans to boost the share price? I mean, the reality is to continue to rapidly develop Longonjo and Saltend and finance and build the project, ultimately, value will out and if we can continue advancing at this rate. I mean, just to share some thoughts here that we set foot on the ground on October the fifth last year in Toltan, and already we've secured planning approval.

54:56 We've done the design. We're nearing FEED. We've broken ground. We will be ready to build. So in just over twelve months, we'll go from a standing start to having salt end ready to go. So I think we're moving I appreciate it's frustrating looking at the share price, but the actual company itself is moving ahead at a considerable rate. Asking when the salt tank will be built, Tim's addressed that. When will Angola commence to address that? Again, another question about the bankroll feasibility study. Again, bankable feasibility studies are the studies you do then get told to go and do FEED. We're doing FEED. So FEED front end engineering design will be complete by the end of October, and they are based on equipment packages and services packages. Whereas a bankable feasibility study is a set of consultants talking to you about what the costs they think the cost will be and getting various estimates. We're talking about equipment packages that get contracted. So a much higher level degree of certainty in FEED versus BFS.

56:05 More questions about ATS. I think Rob's covered it off really well. Another complaint from a shareholder about reporting the transparency of activities, communications. Yes, we note that, and we'll hopefully address that through more regular communication. Question mark about cooler. Again, a question mark about the reserve mineral reserve estimates. No, the NSRK is still working on those, and they will be included in the feed. Question about the semi infinite supply of rare earths discovered by Japanese scientists in the seabed surrounding one of the Japanese islands. I would suggest you that will take some quite some time before that impacts us.

56:52 Question about ESG. We've addressed that. We've had a bit of a rethink about our ESG. And we're recruiting a sustainability manager who will come on board in the next couple of months, and we'll be working with our ESG committee led by Baroness Lindsay Northover and Sandra Bates and Timp to refresh our ESG across the two projects going forward. A question about ATF. Have any Board members bought or sold shares in the last six months? Yes, I bought, I think, 600,000 worth of shares. So yes, we are fully invested like many shareholders. Question about Cooler, Tim's addressed that. Question about the joint venture with Equinor. That's really quite exciting. And I will actually refer that very quickly to Tim because this whole idea of the hydrogen economy. There's lots of discussion about using hydrogen as a fuel to use in places which are hard to electrify.

57:56 But the other way, hydrogen is really quite useful. It's a very, very powerful process for called decrepitation or breakdown metals. We've been discussing with Equinor about taking those very, very large offshore wind turbines, each of which has seven tonnes of rare earth magnets, bringing those nacelles to salt end and using a process called hydrogen decrepitation from the blue hydrogen generated by Equinor at salt end to turn it to create a circular economy in the rare earth magnets. Tim's process that they're coming up with Equinor is to turn their rare earth magnets in their end of life nacelles in back into oxides or even metals to be used again. So the plans with Equinor about the future, about creating a circular economy for rare earth metals.

58:52 Is PENSANA able to purchase on market shares? No, we're not. We have an approval from shareholders to do that, but we need to go again and get further approval to be able to do that. Ask again, share dilution for Sultan and Longanjo. What Rob is doing with the bond financing is basically issuing raising capital without diluting shareholders. So we're looking at all times to minimize the dilution to shareholders. And final question, what does PENSANA look like in 2026 and then five years later in 2031? Good question. So let's assume that Tim and Rob are able to finance and develop Longonjo and Salt End, we become one of three major non Chinese NDPR producers. That's Linus Corporation in Australia and NP Materials in The U. S. At a time when there's increasing concern of the concentration of the supply of these incredibly important magnets to the electric vehicle and offshore wind industry. So where do you see us? We see us as a very, very important independent supplier of the feedstock, namely the oxides and hopefully the metals into those supply chains. And we think the company will become increasingly valuable when it's recognized the importance of that. And also one other point is those of you who follow it,

1:00:24 there's the European Union carbon border adjustment mechanism, the carbon border tax. I think the idea that is clearly being stated, it's no longer acceptable to extract raw materials unsustainably. And let's think Chinese ionic clay, rare earths, etcetera. I understand there's 800 tailings dams in China in the rare earth industry, and none of them aligned. So it's reasonable to say, so a very large proportion of the magnet metal supply chain that is currently being extracted and developed unsustainably. And to the extent they come into Europe, the European carbon border tax will be able to ask the question about whether they what their life cycle analysis is and what the kilograms of CO2 per ton of product is, to the extent that it's not sustainable, they will be taxed.

1:01:21 So we look forward to that. We will obviously be sustainable. We've got hydroelectric power. We've got railway. We've got some innovative processes that enable us to be able to provide very, very good life cycle analysis numbers and also Scope one, Scope two, Scope three greenhouse gas emissions. So our future is to become an independent and sustainable supplier of rare earths, whether it be the oxides of the metals for the critical electric vehicle and offshore wind supply chains. Know, Mark, it's four minutes past nine and we really Paul, you guys have lot of time. You so much. Mean you guys have been very generous in terms of answering so many questions. And for every one question, there seems to be another two that come at you.

1:02:08 So thank you for being so generous. And thank you to those investors that have submitted questions today. And of course, we'll make these questions available. So any that perhaps we haven't touched on, we'll make available for you to be able to review post this meeting. I know investor feedback is important to you as a management team and I'll shortly redirect investors to provide you feedback. But perhaps, Paul, I could just ask you for a few closing comments before doing so. Well, thanks very much. Thank you very much for everybody attending. And please, please do keep sending the questions. They're very, very helpful for us to understand how we need to communicate. Our next webinar, we're hoping to have Tim and Rob, but also Rocky Smith and hopefully, Bharat S. Northover who can talk a bit about Angola. And then the one after that, looking forward to bringing on Jeremy Beaton to talk to you all. So once again, thank you so much for your attendance. Really appreciate it. Please do keep the questions coming.

1:03:06 And I hope this was helpful. Paul, Tim, Rob, thank you once again for updating investors today. Could I please ask investors not to close this session as we'll now automatically redirect you for the opportunity to provide your feedback in order that the management team can better understand your views and expectations. This may take a few moments to complete, but I'm sure we'll be greatly valued by the company. On behalf of the management team at PENSANA, we'd like to thank you very much for attending today's presentation. That now concludes today's session, and good morning to you all.