Savannah Resources (LSE:SAV) — Investor Update

0:00 Good morning, and welcome to the SAVANNAH RESOURCES PLC Investor Presentation. Throughout this recorded presentation, investors will be in listen only mode. Questions are encouraged and could be submitted at any time via 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 it receives 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'd like to submit the following poll. I'd now like to hand you over to Emmanuel Perencia, CEO. Good morning, sir. Good morning. Good morning, everyone. I'm sorry it took us a few more minutes than usual to to get started, but I think we're just taking time.

0:46 It's exciting times for the Vagoso Lithium project and for SAVANNAH RESOURCES, as you know. We published our DFS mid last week. Finally, after almost more than nine years of work, extensive work on the fields, extensive work on the resource, on the geology, on the mineralogy, on the metallurgy, on all of these aspects that are so important for the development of of a project like ours, we are now part of the select group of projects that has moved to post DFS stage. And so it is a very important moment for the SAVANNAH RESOURCES LIFEIN project and it's also a very important moment for us and for all of those who follow the story. You may I I would say that most of you will have seen the highlights of the DFS.

1:37 Important notes to refer that this is the DFS phase one of the project. So covering the construction of all the key elements of the projects and work through the first fourteen years of life of mine. Those who follow us will remember that the resource was upgrading in September last year and that it covers not 20,000,000 tons of reserve now, but 39,000,000 tons of resource and that it has an additional exploration target on top of that. So it is certainly a very good very solid starting point, a very good first phase of of work in a project that we hope will endure for and and and operate for for generations for the benefit of those who are part of it in the region. But, anyway, let me go through some of these slides that will help you have a better idea of what is behind the very interesting numbers of the DFS and what we are expecting to deliver over the course of the next couple of years. And, again, as Lily referred, please do throw out throw in the questions so that we can answer them at the end of the presentation.

3:00 Key messages of these DFS. And before that, just recalling you where we are in terms of of of the shareholder structure and in terms of shareholder performance. So on the left hand side, you see the current registers fund. Then the only change from the last version is that the institutional's share has continued growing. The free float is still very strong, and these strategic sector specialists, AMG, the long term holder, the two Portuguese industrial conglomerates that support us, and all the other sector specialists that are involved have been very supportive of the development of the project.

3:46 They have kept their steady shareholding in the company and have supported us in the last in the less races than last year. So it's very good to have them on board, and we are certain that we have a register that supports the development of the projects through the next stages that are so important for for its future. You will also have follows the the evolution of trades on shares. You will have seen that value has improved over the last year and a half significantly and that we are now trading at about £160,000,000 at around 6 to $6.50 GBX.

4:37 We know that there is plenty to go. We know that a few global peers are trading at levels that are a bit above this, but we also know that DFS was an essential element of delivery that everyone was waiting for to see the numbers on the DFS. And now that we have, it's it is normal that we progress to other stages, and that's and the evaluation hopefully adjusts to to the peer group. These slides kind of summarizes some of the key numbers of the DFS, and I would highlight a few. On top of the 20,000,000 tons of reserves now, finally, we finally have reserve statement out. This allow us to operate for fourteen years as referred. But on top of those, it is important to stress the c one and the all in sustaining costs.

5:32 A c one cost below $500 per ton means that we can operate continue to operate even under the most pressing markets conditions. And we can still pay our bills. We can still make sure that everyone onboard continues to focus on delivering, and then we can reap the benefits of that as soon as the markets recover. You will remember that spodumene and lithium in general, it's it's a very, very volatile market. It's one that has gone up to $8,000 per ton only three years ago. It has gone down to $600 a ton, significantly above the c one, which is important, but it was a very tough moment for the industry.

6:20 It has now recovered and is trading above $2,000, around two half $2,200 per ton. That volatility will continue to exist, and it's very important that projects are prepared to endure those tough markets conditions. Hence, at the c one of $473 and an all in sustaining cost of $646 per ton, we are one of the most prepared projects to endure those conditions in the world, and that's also something that is worth highlighting. A position in the second quartile of the global cost curve while being in Europe, while complying with all European regulations, while complying with all European European obligations, while delivering a very good project for the region is a very good place to be in. And some of the projects that are to the right, the far cost curve, they include some of the best names in the world of lithium. You have a PLS, building projects, for example. You have a Manono projects. You have a Big Kita projects.

7:22 You have Jianxiao owned by CATL, one of the the world's largest mines based in China, owned by the largest producer of of lithium batteries in the world, and they have an all in sustaining cost that is that is higher than ours at. So it is very important to be in this position of the cost curve. The other numbers that I would highlight out of all of those that you see on the screen are those that you see to the right hand side. One, the the price at which this study was run, $17.88 on the spodumene 5.5. This is below 2,000 on the spodumene six, and it still is a good number that can be solid a solid number to work with over the course of the next few years. We tried to use as many external providers of data as possible to have to use a robust price deck. So it's if I recall, it's seven price curves that we have used coming out of some of the most reputed investment banks in the world that cover the lithium space and also coming out of two the two most reputed PRAs in the space. So when you put all of these price decks together and you do the average,

8:53 you come down to a number as the one that's is used. Again, below $2,000, it's an we have seen other DFSs in the industry being used and using the price tags that are a bit more aggressive than this one, but we believe that this is a good one to go with for this stage. It's also significantly below the current spot prices. Then just below that number, you have the post tax IRR. A post tax IRR for a project like ours at CFS stage that is above 30% is certainly a very good IRR and one that we're just gives us a bigger rep a bigger obligation and a bigger responsibility to deliver in quality and on time because that's post tax payback, a period of less than two years, and those $900,000,000 of post tax NPV needs to be materialized and delivered through the benefits of everyone involved in the project, obviously, from shareholders, but also to future debt holders to society at large and to the local community.

10:09 So every responsibility at hand with very good numbers to to work with. Physically speaking, the the image at center of this slide gives you an idea of what we're trying to achieve. It's it has a bit of AI simplifications there, but it recalls us of the basics of the project. An open pit mine, which is important for safety, for operate operability, for costs, and it also allows us to do recovery as we build and rehabilitation. So that's an important feature of this project. At center of the image, you see the industrial facilities. So to the top end center, you see the offices and the entry and exit road of the system.

11:00 And then you see a sequence of paths starting with the ROM path. In the middle, you have the crushing facilities. And just below, you have the DMS and the magnetic separation units, the disclaimer also, and the flotation units. To the right, you have the tailings facility, and you will see afterwards the other structures of the project. This infrastructure allows us to deliver lithium for more than 7,000,000 EV batteries in the first fourteen years of operation. Plenty to capture of additional value on top of that, but these these are also already very significant numbers.

11:46 What is also very significant is 500 on-site jobs, more than a thousand indirect and induced jobs, most of them, hopefully, in the region. It is a very big positive impact for this region that should reenergize it for for a couple of generations at least. And it's also some one important part of the the elements that motivate us to deliver these projects. Overall, as you read at the top end, it is a high quality, low cost, low risk, low impact projects, one of the very interesting projects globally that helps feed the energy transition at at scale. If we zoom out in terms of in terms of value, it is important to reinforce that this DFS covers phase one, the box that you see in green at your at your left.

12:45 Our expectation is that with more geology work, we can grow the reserve over the course of the next years. And phase two a potential phase two, if it was to be delivered, hopefully get us beyond forty years of life of mine on, at some point, be beyond a 100,000,000 tons of resource and potentially reserve. There's obviously a lot of work that needs to be done to deliver these numbers, but we have solid ambition and well sustained and grounded on data ambition to get to that phase two and then potentially to a phase three of industrial expansion, duplication of capacity of the plant, and so on. If we go back one slide, you will see that the the the structure the flotation structure has enough space to duplicate with time. It is also important to say that in the CapEx of this this phase one, you already have a significant amount of elements that would support a phase two.

13:54 And this is important because you want to keep optionality at this stage, and you want to make sure that a potential phase two and phase three cannot only be delivered, but they can be delivered also at a very good and competitive cost and with the ability to to implement them at at an appropriate speed. So we're very confident that over the course of the next few years, we can continue to bring good positive surprises in terms of growth on top of the initial $900,000,000 of NPV. So a set of key messages that I want us all to have in mind before we I pass on the back to for a bit more detail on the numbers of the DFS is one that this is a globally competitive project. It's better in terms of costs than most producers at this stage, even some of the best names in the industry in Australia, China, and Africa. Not all of them, of course, but some of some of them, and that's that's, I think, an important confirmation of value and future value for for SAVANNAH.

15:11 The second message is that it's Europe's largest project, but it is also a globally significant project. So it's not only that we are the largest in the region. It's that it is globally significant. There's plenty of additional work to be done that should, with time, release more value out of the grounds and and into the system. The third message is that it is validated and supportive, I would say, at all levels at this stage. It doesn't mean that it's consensual and no mining project is consensual. No projects, be it in any other industry or any other element of society, let's put it that way, is consensual, but in the sense that that you don't have support by a 100% of people ever. But this project has significant support right now. It has changed dramatically from where we were three years ago.

16:11 Today, the European Union and the European Commission support the projects. The Portuguese states through various entities know that we are doing the right thing, continue to to have a close look at everything that we do, but do support the way we're doing things. We have support from sector specialists. We have solid local ties and presence, and here I would highlight these more than 10 partnerships that were done in the last in the last twelve months. I will tell you a bit more about those, but they do reinforce that we are we have good friends in the region. We have plenty of people who have understood that this is a great opportunity for the region. And with them and with our team, we can deliver these projects.

16:59 Fourth message to reinforce that this is a low execution risk and high optionality project. The very traditional flow sheets, the open feeds features, the stable jurisdiction, the balance sheets, and cash position, all of these mean that we are in a very good position to develop the project and deliver significant value out of it. So on top of that, we have a 100% control of the project, and that's something that is not as frequent for for junior miners at this stage, and it's certainly something that we want to to to continue to work on top of. And then fifth message as we deliver DFS and as is normal, things do accelerate. So do continue to follow the story because there's plenty of additional news flow that will come over the coming months.

17:57 We continue to be to progress the project for delivery in '28. So next year, we will be in construction in '28 closer to the end of the year. We should see first concentrates coming out of the the project. And, again, as referred, still this year, completion of partnerships, completion of conditional project finance, the build out of construction team, and many other developments on track to be delivered. Stay tuned, I would say. Main elements of the DFS starting with CapEx, OpEx, and other financial numbers. You wanna lead us through those? Yeah. Sure. Hope you found this good.

18:46 Just on the CapEx side, sharing so that going through all the these detail with the level of engine proper level of engineering. So we have reached to a final number of $283,000,000. This is in before contingency. Contingency that we're considering for this this moment is 40,000,000 based on the, you know, level of engineer we have and all the still so aligned, like, equipment by equipment and its facility by facility. So we reach this number, which I would say is a conservative approach. In this, this is net of the grant of the 75% of the grant that that we work from the Portuguese government that will be disbursed during the construction period.

19:41 Looking to the numbers on overall, we see that we have on the processing plant, we included logistics, around 150,000,000 of this number. We have to consider another number that it's that we went up from the since the scoping study, which is the bypass road. The bypass road is, as you as you remember, is connecting the the project to the to the highway in in in Portugal. The and and this has become as a with following the national standards, and it so it became so more expensive. So it's now in the range of 60,000,000 US dollars to be built, remembering that this will be will have to have the DIA until the starting operations of the of or or start operating of the processing plant.

20:42 They'll have to have it, but not exactly finished in terms of building. But anyway, in terms of all all others, so internal, so all the normal, so power supplies and all that. So altogether, you reach the number of 470 millions with the contingency and without the the without the grant. Can we move to the next one on the OpEx side? This is the good news for the project. I think we we stay on the second quartile of the cost curve of of the spodumene producers. That is a very good place to be. That means that the project will be remain resilient in bad times for the that we'll face like we had, like, one year ago, we would be producing and making money even at at very low levels.

21:33 So we reached below 500, so 472 on a 5.5% spodumene concentration for the c one cash cost and all in sustaining cost of $6.46. That means $70.05 on the 6% concentration for spodumene. So that puts us on the second quartile, very close to very well known Australian based projects, which is a very, very good place to be. Remembering that even for pricing and all the costs, so we are considering FOB at at the port in Portugal, so which we estimate from based on the logistics, on the international pricing and indexes that were avail available since that will be the port of delivery for for for our product.

22:32 Let's please, Vin. On the sensitivity analysis for to the NPV of the project, obviously, that the project is quite sensitive as expected to the to price, for the mean price. So that's so with the 10% change of prices up or down, you have an impact of around 19% of of NPV. This is obvious. So the this is an impact very strong impact. But this is also true for recovery rate. So recovering rate going up or down, it has a very huge impact. We have been conservative in this for recovery and we believe it can be improved as the project goes.

23:20 Then on the other side, on OpEx, the impact is moderated also for CapEx, although very important for the beginning and very important for to deliver raising funds and all that. A 10% change in on on on CapEx impacts, 4%. Another just highlighting that for power costs, which is now everyone very worried, about power cost, but the the variation is slightly so the impact is less than less than 1%. And give to you back, Manuel Emmanuel. Thank you, Eric. I would reinforce it's it's not only power cost. It's also fuel cost, for example. It's the impact on the NPV is quite immaterial.

24:08 And so just reinforces that the project is very robust at those levels. Something that is perhaps worth highlighting is a it's a detail, but it's potentially relevant. In in Iberia, it's not it's not fossil fuels that set the price for for power. It's renewables. And so that also gives us an additional element of resilience to shocks in this project. Other projects would be tremendously impacted or more impacted by fuel prices, diesel prices, coal prices, and so on. This one wouldn't on the power side of things and even on the fuel side of things given that the country is quite heavy on taxes on fuels, and those taxes usually don't don't change. Their burden doesn't change with fluctuations on Brent prices. That also means a bit less sensitivity to to that.

25:05 Rightly referred that the processing recovery rate is very important. And and for that, I would restate the simplicity of the process that we have. It's it's the same as we have a scoping study with a set of adjustments that I will refer to. But it's a crushing unit that starts a set of screens, these lines, and the MS processes, a regrinds structure just before a magnetic separation in this line, and then you move into the micron spodumene flotation structure. So crushing, DMS, magnetic separation, the slimes, and flotation, very simple from one end to the other, but, obviously, that at least in the details. And the 70% recovery rates that we have used for scoping study is quite achievable with the technology that is used, quite achievable with the level of knowledge that exists both of the resource itself and of the process.

26:17 And I would say that as we progress in production of the core over the course of the years, hopefully, we will be able to deliver what other projects in the system have delivered consistently through their first years of operation, which is a growth in the recovery rates. Let's let's hope we are capable of doing that. We will certainly be able to deliver 70% as is estimated in the in the DFS, hence improvements would be an upside to the numbers. I heard refers that we adjusted a few things from scoping study, not in the flow sheet itself, but on the robustness of the flow sheets because we added on stream analyzers, which have become mainstream in the industry and helped a lot, and also because we added redundancy in some of the equipment that is key for availability.

27:11 So those two things should help and make the projects even more robust. On the industrial area itself, I gave you a very brief summary of what we have in the last slide that we saw both. But if you want to have a journey through the process plants, you in the future, you will come from the north through the access road. It's 11 kilometers to the highway, and it's an access road that is built for the project. You would you will first see the power substation, and then you will start to go down and down and down through the valley. And we'll see first the offices, the support facilities, then the dispatch units where we press the the products and then put them onto trucks for to to exit the premises.

28:08 You will see at the right waste facility and the Grindau Pits where we have drill and bag blast, excavation, truck loading, and holding operations as is usual. Part of those holding operations are of ore that comes into the ROM path at the top of the industrial area, then the ore comes down through the crushing facilities to the the MS, the slime, the magnetic separation units, and then the flotation units at the bottom. To the left, you have the labs, the reagent structure. In the middle, you have the water treatment structure. Then you have a conveyor belt that brings the products back up and to the dry stack tailings units.

28:58 A reference to what you have to your right, the mining schedule profile, quite stable throughout the first fourteen years, but more important than that, strip ratio of 5.2 to one. This is a strip ratio that is top of the industry, one of the best in the industry, and it is one of the elements that make these projects very, very competitive. So something that is very important to to keep in mind. When you zoom out from this area that we were seeing just in the middle, the plants and the offices facility, you see that the project is more extensive. It includes the various pits. So you were seeing Rendal.

29:44 Just to the south, you have Pinheiro. To the right, you have Aldea. And to the left, about five close to six kilometers away by road, you have a Hazaratorio and Noah. In brown, you see the roads. So the road that accesses to the left, the Occidental area of the project, but also the road that goes up these north access Independence Roads. You also see in yellow the the power lines. So there is already this power line, the high voltage power line that goes from southeast to northwest of the project area. The project includes a diversion of that power line to allow the plant, I'm gonna now, to be installed, but it also includes a new medium voltage power line that goes to the right hand side, to the eastern side of the map.

30:41 It also includes the power substation in the middle and then all the water related facilities and other elements of the project such as the waste dumps and the DSFs. To the right, you see the seven kilometer shared by bypass road that we will also build in sequence to the main elements of the project, and that will allow a direct connection to the the a 24 local highway. And from there, a very fast connection to five options, of course, of which one is used as the best option and basis for the project, DFS. Another reference to reinforce that the the additional resource that is not a reserve yet and the additional exploration targets are all within holding distance from the plant area.

31:39 So no one has a laboratory less than 6.5 kilometers away from the plant area. Some of the the other pegmatites surface are seen closer than that or just at a very similar distance from that. So the the growth in the project can be done with holding distances kept short and with competitiveness kept at at its best. Let let me just go through the the q and a, the the questions that you that you have there. I'll ask I'll answer a couple of them before we move to the other fronts that are in progress if that works. Yeah. We can we can do that. I can I can feed in if you want?

32:30 Emmanuel, good good morning to us. Ways. I'm looking at I'm looking at these these first ones. The reason with holding the share price back well, this is on share price, so that's on the DFS. I'll keep that one for later. Yeah. Sure. There's a question there about land, which we haven't touched on as yet. What land what land needs acquiring before we can get into development? I think that's a Yeah. That's a key topic. It is a key topic, an important question, and an important work front. So we have I think we're very close to to reaching a 150 land plots already bought from from locals. And the the process of a friend, Bercesis, has, I think, been been good and progressed very well in the last in the last year.

33:19 It has a limit because there are there are obviously a few land plots that will have to go through through expropriation. We have spoken about that in in past references. An expropriation process is exactly what projects of magnitude in the region goes through always. So usually, there is no friendly acquisition process. There is only expropriation. That is what happens with dams in the region. It has it is what happened with roads, with highways, and with other structures. We will have to go through that process for those plots that were not purchasable. And you have a variety of reasons for that because there are inheritance issues, because there are border definition issues, because paperwork is not in order, or just because there is visceral opposition to the project by by a few of the of the landowners.

34:11 That process is expected to happen over the course of the next of the next months. We have announced it to the markets more than a year ago. We have started that process formally a long time ago, and it is going through the the typical steps. Everyone in the region knows that it is it is happening so it is not news. What is news is that we also had two end easement procedures that were approved. So these have allowed us and continue to allow us to work in land that is not ours yet but is already part of the concessionary. On top of that, the over the course of the next few weeks, we will tell you a bit more about some of these agreements in the region and some of them also relates to land. So there is also a very positive progress in that front.

35:08 Can we get another one, Isa? Yeah. Of course. Yeah. Well, I think we've we've already touched on it, but, yes, there's a question just asking about are we expecting to sign contracts with clients? And I I'm assuming this is in reference to offtake. Are we expecting to sign contracts with clients before mining mining begins? So I don't know if you just want to reconfirm on that front. Yes. Of course. I I think, Isa, you you just published an RNS before this this presentation. The RNS refers to some of some deals that have been done on the ceramics and on the byproducts portion of the project. So we we already have five five of these deals with both national and international ceramics players.

35:55 That's very good news because it reinforces the quality of these byproducts, although they are at LOI stage, and ceramics is not a market that works with long term optics. And so what we have at this stage is what best you can have in terms of certainty for for commercialization of those products. The total volume that is implied in those five deals is 865,000 tons per year of of byproducts, which is very significant. Note that at DFS in the DFS, only 600,000 tons of those have been included. So we try to be slightly more conservative than what these these agreements could could potentially support.

36:53 The other front that is obviously of utmost importance is spodumene offtake contracts. And in that front, we have told the markets that a process has been started, that we have accepted preliminary offers that are quite exciting. We have a set of those that are in analysis or in advanced discussion right now. So, yes, before the end of the year, you should have some news in that front. I can't I cannot hear you yet, Isa. Sorry. More questions now, or do you want to carry on with your presentation? Let's perhaps, close, close the presentation and then go through the other ones. Go ahead. So these other two fronts in progress. The first one is financing.

37:51 Right, Henrique? So it's certainly one of the key topics for the coming months, and so perhaps worth diving a bit more into where we are at. Sure. So believe that everyone is very interested about what are we going to do in terms of finance and are we moving to FID now that we have delivered the DFS. Let's say that on the backstage, lots lot of things has been happening, and we cannot share everything. But at least here, we would like to share with you some flavor of the work we're doing, and how we plan to structure it. So we we'll be doing working with so a project finance, you have in the in the past, we have mentioned a lot of times the capital relation with the support of the German ECA, which is which is a way it's also possible to go through a a pure commercial banks approach.

38:48 And that's so can be slightly more flexible eventually. And we're also working on these two options. So that's what I can I can share share at this stage? On that for for that, so the basis and that's the requirements on the offtake that Emmanuel was just speaking about. We have so also on the offtake strategy based on the lenders' requirements, lenders have some requirements because the project finance is based or will be based on the on the offtake. And the requirements, so just very briefly. So you we have we plan to have 70 to 75% of the product under offtake agreements on a take or pay structure that this is very important.

39:41 Floor price may be required for part of the contracted volumes. That doesn't mean that it's for all and definitely not a fixed price. I think that's good good news. Typical tenors around the offtakes is, like, five years. You would expect to have the project finance with a grace period below ten years, the grace period for construction, but it can range from eight to ten depending on on some other conditions. But let's say that we still have plenty of, like, 25% for for 45,000 tons per year as we still look to sell on the spot price. This is a good news in terms of gives us flexibility both from a commercial, also from operational point of view, which is very good news.

40:34 We are moving on the due diligence for with the DFS in our end. So we have moved already before the DFS was delivered on the technical and environmental and social due diligence, just starting also the market DDs and legal DDs. We engage already the consultants and we engage lawyers, and they're moving in these fronts. So as normal, typically required by a project finance that we intend to close by the during, let's say, like, to put a date on that, end of fourth of this year, beginning of the first quarter of twenty seven. Finally, on the funding enabler, let's say that we are funded to deliver FID, but we are not funded to deliver so long lead items or even pre financial close works that might be requires for some of the CPs.

41:32 So if if if more equity is still to be required in between, the sizing and timing still to be defined, but that's something that we are analyzing at this at this stage. Finally, on the government grant, as I already mentioned, so this is €110,000,000 That 75% will be during construction. Awaits all the grant integrates with the commercial banks in terms of security package and all that, although remembering that the grant is not reimbursable and not interest bearing any interest. So it's a pure grant. Still, how it fits into the funding structure is still under review and negotiation, and that will obviously might impact the level of leverage, more or less leverage that we might get at the end of the whole picture.

42:24 And I think that's that's the summary of it. Perfect. Thank you, Eric. I think it answers some of the questions that were on the on the q and a word also, so thank you for that. The other very important front for us is the one associated to local engagements. And this is because, let's be clear, three, four years ago, three to five, six years ago, things were were tough in this front, but also and more important because we want to be a force for good. We want to be one of the reasons one of the main reasons why this region in which our projects is to be developed benefits from the projects, prospers from the projects, moves away from death spiral in which it has been trapped over the last thirty, forty years. And so there's a lot of work and a lot of energy that we put into making sure that we do things right in these fronts.

43:27 We have announced to the markets four deals, three of them with hunting and fishing associations that basically cover all the area of the project, all the the area impacted by the products projects. This was with the associations of and the association of. We have also announced to the markets an agreements partnership agreements with the regional hospital group to study a new local health care facility. You will know that's a mining project like ours. We'll always need some some health care related facility, and what we're planning here is to use it as a basis for use by the broader community in the in the region.

44:16 So these two deals have been announced. The other deals the other partnerships haven't been announced yet. So what I can tell you, that they will be shortly, and they cover full spectrum of potential partnerships with with local entities. This, I think, is very clear evidence that we are very far from where we were a few years ago in terms of local engagement and that most in the region already see this project as the force of good that it wants to be. But more exciting and more or even as impactful for us is the fact that we are already touching lives and transforming lives for the better. So we're kind of bringing new life into the. Just this just gives gives you, obviously, anonymous and so as to respect the privacy of of each of the persons, but it gives you a few few of the cases that are part of our local team right now. The team that is that works with SAVANNAH every day.

45:25 On top of these impacts, you have plenty of other stories with the subcontractors and many others in the region that already benefit from the project. But we have a first time mom since since this month month. We have a lady in the team that has come back with her family from Ireland for many years of work and life in Ireland into back back to her home region. We have another family that has come back from Porto. They also have a baby. So when you put this together, it's a it's a new generation for these villages that haven't seen babies or have only very rarely seen babies in the last in the last decades. You have a couple that has given up immigration and has moved to Cajero with us.

46:15 You have a person that has come back from immigration in France. You have a couple that has moved to Canada. You have another person that has moved to Cova's, another one to Boutique. You have we're in our third new house rehabilitated or or used in Cova, our first new house in Canedo, another village in the region. And this is just the tip of the iceberg and and just the starting point. But already today, even before we are formally in construction, a lot of lives already are positively impacted by this project, and this really motivates us to keep going. Main takeaways, again, before we move into into questions, this is a unique project.

47:03 I think it is fair to say at this stage and one that is already validated by the FS. It's progressing fast. It's supported. It's validated by all key external parties. There's plenty of news flow ahead. If I can leave these five key messages on the screen as we go through the questions, that's probably the most useful. Isa, can you help me with the most Yes. Absolutely. And and thank you for the presentation, Emmanuel and Enrique. Yes. We've just got a few more questions. If people want to send more in, please feel free. We've got a few minutes left. Just amalgamating a few questions here. And I think we've we've covered the topics a little bit here in terms of there's a question about how how to minimize dilution for existing shareholders through the financing that we're planning. Obviously, I think Henrik touched on that with with project finance and the grant and offtake finance. But if there's anything else you want to add on that front, please please feel free.

48:01 Yeah. I think I will I will respond on your behalf. I think those are the instruments that are at our disposable disposal. And, obviously, we will be using all of those wisely and in the best interest of current shareholders. To be clear, the the three members of staff that are presenting here today are also shareholders, and they are tremendously motivated to not only deliver the project, but deliver it with value generation for retail shareholders, which they are part of. So what I would add is that this project is in a very good position because contrary to many other projects in out there, it still has control. It has a 100% control of its assets. It has 75% control of its offtake. It has control of its balance sheet. It has control of its pathway forward.

48:55 And that control means that we can work with all the options on the table and then use the best ones at each at each moment, of course, and that depends obviously on what is available, the costs associated to each tool, and the effects on strategic independency and and future robustness of the whole project. Excellent. Thank you. Again, I think just an opportunity to reiterate some other previous comments just about how we see opportunities to extend the life of mine or the annual production rate or both? I don't know if you just want to touch on those key points again. Sure. I think that there was a slide on on that specific topic, but I can tell you that even when you look at the resource statements in in September last year, you see elements of that resource that we want to transform into reserves in the future. There is a bit of indicative material that is in there that hasn't been transformed into reserve just yet. It will be over the course of the years with a bit more of an adjustment to the concession area.

50:04 There are there is a very significant amount of inferred material that's that is in the resource statements with a bit more drilling. Some of it or a significant portion of it should move into reserves with time. You have of these additional pegmatites at surface inside the concession area that we will want to to study further and dig further so as to transform into resource and then a reserve. Excellent. Thank you. And there's also a question about dual listing. Obviously, we've we've put out a little comment about a dual listing process this morning, and there was a Bloomberg article about it. Yep. Question is you've you've talked about looking at European markets or you're one of the major mining markets. Can you explain why why we're doing that and perhaps where we are in the in the process?

50:57 Yes. And I and I will come back to the previous question afterwards because I have forgotten to to add another element. But answering to that one specifically, everyone knows that AIM is a good starting point for for resource projects. So that's that it has had stiff tough competition from the Australian and Canadian markets in the last decades. And also everyone knows that a project as it progresses benefits more and more from being also listed in a regulated market on top of AIM. So when we look at the options that help us deliver more value to shareholders, increase liquidity, increase the performance of the share and the transformation of the long term value of the projects into shareholder value, we firmly believe that adding another another market on top of continuing on AIM is something that's that helps. So we we could potentially move from AIM to to LSC main market. That was also a path a possible path forward.

52:10 But what we have seen in the last two two years is that there is very significant support for the story coming from outside The UK also and we want to make sure that that additional support can have home that is potentially more flexible, the name and more capable of attracting and developing further the shareholding positions. So we believe that continuing on aim is important. We also believe that adding a regulated market that gives us access to other pools of capital is also important. Back to the previous question, Eiza. Yes, yes. Go ahead. Because I answered to the resource and reserve part of the equation, but not to the capacity part of the equation.

52:56 As you look at the resource and the additional exploration target potential, you're looking at a project that can have a very long life, that can go through generations of of work on the ground. When you start to see that life of mine expanding very significantly, you start to ask whether adding further capacity to process to process more is an option. And what we wanted to make sure was that at this DFS, we kept that option as open and as prepared as possible. So it is hard to compare, for example, DFS numbers with scoping study numbers or even c one and all in sustaining cost numbers now with c one and all in sustaining cost that will materialize over the course of the next decades because CapEx for the FS is also higher because it has more elements that could potentially allow duplication and also because c one and all in are constraints within the fourteen years of life of mine. And so it is more heavy on costs in these fourteen years. If we expand the mine life, then we obviously also dilute some of these of these costs with more volumes and more years of operation and that in itself makes the project even more competitive.

54:21 Very true. And I suppose on the same theme about adding value or creating value, yes, there's some questions, and I'll I'll amalgamate them. It's really a question of, you know, what's what's going to drive the share price in the next twelve months? Which which milestones are we looking for? And which is gonna deliver the the the value for shareholders going forward? So future share price depends on shareholders, but I would say that the news flow that we have had is particularly exciting. And we've gone through some of the elements. Henrik has referred a lot of fronts associated to project finance and also associated to commercial off take deals. So these, when delivered, will be important sources of additional information and will also be important de riskers, further de riskers of the project. So these are certainly two fronts to be very attentive to.

55:19 On the community front and on the local ties front, we also believe that we are we have entered a stage of delivery that is very important. We know today that we have many more people in the region that wants to be part of this project and directly or indirectly. And we want to make sure that we use that energy of the beaucoup positively, that we cherish it, that we support it, that we encourage it, that we see the society in the region react positively to the tremendous opportunity that they have at hand. And there will also certainly be more news flow associated to that. And then there's the preparation of the construction team. There's hiring that will happen in the next in the next months. There is also news associated to buying first long lead items, to hiring the the companies that will support the first stages of construction and other elements as as such.

56:27 No. Great. And that's great. We had a question about recruitment actually, but you've you've touched on on that, so that's great. I suppose just really a last question is, can you just give us a quick summary of what the European Commission have been doing recently in terms of critical raw materials? What else is happening in Europe, in the lithium space, just just to sort of round off on on those matters. Sure. So the European Commission continues to see, critical raw materials as one of the most important, topics, out there right now. It's because of the critical raw materials themselves, because of the value that they can deliver, but also because of the impact that they have on very important value chains for for the whole of Europe and on the very important impact they have for the environment and for future generations. So for all of those reasons, the Critical Raw Materials Act was only one of the elements of of regulatory pieces that's that came out in the last in the last couple of years. You also have the Industrial Accelerator Act, for example, only a couple of months ago, reinforcing that industrial development and industrial preservation in Europe is very important for for everyone.

57:37 It has plenty of measures that further supports the development of a battery value chain within Europe and further encourage investments in in this area. And that's an important topic for us, of course, because we know that it is hard and challenging to develop a new value chain, that it takes years. But we also know that having more clients and more partners and more developers that is value chain close to us is of additional value to us and is of additional value to the system. Nothing of that is embedded into the BFS. So the BFS has nothing associated to carbon credits, to carbon border adjustment mechanism, to further incentives, to keeping the products close to closer to home and not requiring shipping to to other places in the world.

58:30 It has nothing of that, which means that all of these things are potential upsides on on the numbers. Second part of your question, Isa, was on what is exactly happening out there in Europe. And I think that's what you see is would highlight perhaps three things. The first one, you already have a spodumene mine in European territory, and this is a big news for us. It's the Calibre project in Finland. It has entered delivery stage. It is already producing, and that is very encouraging for us. It shows that the Finns have understood the value of delivering a project like this. And we know that Portuguese state is very aware of that and wants to make sure that that Portugal does not lose the opportunity to develop projects in in the in this space.

59:28 We also know that we are very well positioned to be the second in the system. You have seen movements in other more side projects in the system with with in in Germany, with this valley in in The UK. You're seeing a bit of movements in Spain and in France with the the Meris project. So you're seeing action, and you're also seeing more financing flock into into the system. You have seen major financing deal struck by a very capital intensive projects and higher risk in terms of technology that is Vulcan in Germany. So you're seeing significant movement on top of us seeing one of our partners, AMG, further developing its its industrial footprints in Bitterfeld.

1:00:26 What you are seeing also is more and more big industrial projects further down in the value chain. In Portugal, you're seeing CALP that has started or is starting construction. It's hiring the the constructors right now, big battery plants. You're seeing CTL in Spain progress. You're seeing five new electric vehicle plants in Spain alone being prepared, built, repurposed for for EVs. So a massive industrial investment just around the corner for us, just on the other side of the border. I hope that Portugal will also be able to capture some of these some some other projects in space. So there there is movement.

1:01:13 We have tried to make sure that our project is not dependent on the development of the European battery value chain, but we also want to make sure that European battery value chain develops as much as possible and as fast as possible, and we want to be also a force for good in that front. So a lot of coordination work with some of these projects is already happening on the background, and it will continue. Excellent. Thank you very much. I'm aware of the time. I think it's perhaps time for some concluding remarks and then we can hand back to the IMC team to close off. Perfect. Thank you, Eiza. Again, we wanted to give you more on the DFS today and to give you more on so many things that we want to deliver over the course of the next six to twelve months.

1:02:04 It is a very important stage for these projects. Obviously, the DFS is a complex document, so I invite you to go through that executive summary that we have published. It's almost a 100 pages, which gives you already a good flavor of what we're what we are doing. On the background, we will continue to progress for the benefits of everyone in commercial, in financing, in communities, and in preparation for construction. Thank you. That's great. Thank you for updating investors today. Can I please ask investors not to close this session as you'll now be automatically redirected to provide your feedback in order that management team can better understand your views and expectations? This will only take few moments to complete, and I'm sure will be greatly valued by the company.

1:02:51 On behalf of the management team, we'd like to thank you for attending today's presentation, and good morning to you all.