ASP Isotopes Inc. (ASPI) Earnings Call Transcript & Summary

Hello. This is Craig Brelsford with RedChip Companies. Thank you for joining today's event with Noble Africa. Joining us today is Paul Mann. He is the CEO of ASP Isotopes and Noble Africa; and Nick Mitchell, the Chief Operating Officer of Noble Africa. We will begin with a brief presentation in a moment, and then we'll open this event to your questions. Welcome to everyone joining us today on x YouTube, LinkedIn and other social media platforms. To submit your questions, we invite you to join us on Zoom. Use the posted event link. Once in some click the Q&A button at the bottom of your Zoom window and type your question into the text box. Before we begin, please allow me to read the safe harbor statement. This call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements pertaining to future financial and/or operating results along with other statements about the future expectations, beliefs, goals, plans or prospects expressed by management constitute forward-looking statements. Any statements that are not historical facts should also be considered forward-looking statements. Of course, forward-looking statements involve risks and uncertainties. Paul and Nick, please go right ahead.

Thanks, Greg, and thanks, everyone, for your interest in our company. So today, we'll go through a slide deck of Biogen Nobel Africa as we're calling it. And as a then. So the lines have been very busy. There's 3 pages of disclaimers for you to review because we view those, that would be great. And also look at our or SEC filings for a list of risk factors and similar kind of -- obviously, this presentation we're asking forward-looking statements and again, affording statement disclaimers in our 10-K and proxy will the other documents the SEC filings. So as we announced a few weeks ago, we're going to merge Noble Africa, which holds [indiscernible] with ENDRA Life Sciences, ticker NDRA and the plan to do that is -- when the merger is complete, ASPI will own about 89% of the combined entity. The current and reflect and the pipe that we're doing concurrent with this we own about 11% of the company. Exact numbers and shares are detailed in the 8-K that was announced this transaction a few weeks ago. So this is what Andrew does not so much time focusing on that fairly noncore businesses, we're likely to transition out of these and just focus purely on Manage and Noble Africa. So here's just talking today. I'm the CEO of Renergen. I'm also CEO and Chairman of ASP Isotope. My background is more in finance. I spent 20 years, 25 years or so on Wall Street. Investing from Morgan Stanley, Sanson High Bridge. I'm mechanical action on my background and charterholder. Nick, can you introduce yourself please?

Hi, everyone. My name is Nick Mitchell. As Paul mentioned, Chief Operating Officer for the entity and one of the original founders of Renergen. I come with about 2 decades of oil and gas experience, specializing in early-stage upstream development and taking projects across the value chain cycle. -- prior to this project have been looking at infrastructure development across the African continent, mainly in the power sector. Outside of that, I happen to chair the onshore Petroleum Association that represents all of the, call it, exploration right holders and production right holders on an onshore basis within South Africa. And in that group, we lobby government or legislation, regulation in order to promote an industry that is what we would call at a burgeoning stage in the country at this moment. Thanks, Paul.

So just a quick few highlights. So this is a world-class helium reserve. We're likely 1 of the highest concentrations of helium, you will see on paneer,and we'll explain about that later on. Drilling is -- Phase 1 is expected to come on stream during for the Q with customers lined up from September onwards. This is a very strategic asset. Doesn't have a strategic project for both South African government and the United States benefits from a significant amount of funding for bins of fundings anticipated from the DFC U.S. government and Standard Bank. And I say it's a very base [indiscernible] resource. If you're asking why now? So it's been a significant geopolitical disruption in helium supply chains, and we'll talk about that in a minute. But essentially, right now, 50% of the world's supply is off-line. Helium prices continue to hit new highs. There's very limited new supply coming to the market over the next several years. And we're lucky that we got a byproduct, which is LNG hydrocarbons -- it's very easy to find a home for that in South Africa. I spent most of my career looking at interesting companies. When you look at the industrial gas companies or companies like Praxair, Linda, Air Liquide and Air Products is their highest growth tool capital, highest gross margin, highest growth businesses on the electronic gases businesses and the largest part of that is basically helium. And so to have a pure play helium company out there I think is a huge opportunity. And many investors have spoken here with the are saying it'd be great. I have a pure-play helium company. I totally is looking for what that's 1 of the reasons why we got Renergen about a year ago. So quick can now go over the helium market, assuming it went about it. So Nick, perhaps you can just talk through your market on this slide here, please.

Sure. Thanks, Paul. So before we get into the uses, let's just look at the unique properties and characteristics. So it's both chemical and electric unit. -- non-toxic has a very low density and an extremely low boiling point. So within its, call it, liquid state at 4 Kelvin or minus 269 degrees. It becomes what we call super fluid, and gravity has very little impact on the settlement. As we look into the usage and we look at the bar chart, the MRI market is essentially where it's used in the medical field. So it's super quant in the cooling of the titanium Mali magnets. -- that are used in these MRIs. It's used both in the production of fabrication of the actual MRI itself and then in the ongoing usage in operation of the MRI. Moving into the semiconductor side of the bar chart. The critical element here is used in 2 critical areas. One is to make the environment in which the microchips or memory chips are produced, absolutely sterile. Given that it's both chemically and electrically note. And the second is to as the supercold medium to call the lasers that are responsible for the etching of these [indiscernible] as they go through their fabrication state. The next interesting segment would be rocketry and essentially, that would be what we deem Helium is used for in space exploration, so if we consider SpaceX and we look at the Falcon mine rockets, they would use approximately 11.7 tonnes of helium for every single launch that takes place. And if we look at the launch cycles that took place in the month of May, there was almost a launch every day so we can look at typically what the volume of helium and the demand of helium that is coming out of that sort of industry and segment. What's important to note is the industry is growing at about 5% to 6% per annum, and that's what it's forecasted to grow. We do believe that the forecasts are rather constrained by a supply perspective. And we must note that this also ignores what has been forecasted from a growth perspective in terms of AI prevalence in the new data center that is set to -- or data centers that are set to be developed over the next couple of years.

Thanks Nick. So just talking quickly about what the market looked at how it's evolved over the last 20 years or so, you will see that the U.S. strategic reserve, the BLM has gone from being about 1/3 of supply to being almost nothing now. U.S. per is basically exhausted now, it's kind of run out. And you'll see task a much bigger player about 1/3 of the global market. Now -- and likewise, [indiscernible] is the kind of bigger player as well, that trips into of the market. The prices have steadily increased over the last 20 years. And -- and obviously, prices right now are trading at extreme prices, and there's really a rush to -- rush to find alternative sources of helium right now from comedian buyers. So chart here just kind of shows the supply-demand picture. So you'll see the Americas is broadly balanced. Obviously, Europe and Asia are not balanced and says likely that these regions, we'll see the real knock-on effect of the shortages we're seeing in the world right now. So if you look at the news, we're probably entering in the fifth helium supply side crisis over the last 20 years. Nick menu quickly talk through the supply side crisis, what's going on right now in the Middle East to the best of your knowledge?

Thanks, Paul. So as has been widely reported, with the Middle East conflict, the helium facilities in Qatar have been impacted. The full extent of the impact has not yet been fully detailed and quantified, but it's estimated that we will see a prolonged outage on several of the [indiscernible] trains. Over and above that, there was recently an announcement unrelated to the conflict, but still impacting the [indiscernible] plant is that an explosion during a commissioning exercise of an LNG facility related gas facility related to the supplier of feedstock to 1 of the helium trains has also been impacted. That train has been out since December was not widely reported at the time, but this leads us to believe that over and above the direct missile impacts, we are going to be seeing some significant, call it, further delays that will constrain the market. Over and above that, we've also seen that Russia has announced export controls and restrictions in terms of helium exports. It is looking to constrain that helium within the country. And then approximately 2 or 3 weeks ago, we saw an impact from a drone strike as a result of the Ukrainians targeting some of the Russian helium facilities. And this will see a further impact of some helium into the market. And all of these constraints, we are led to believe that we'll kind of suffice and see the market impacted for an extended period of time. If we consider the long nature or long lead nature of some specialist equipment, what we've seen in the past in terms of similar impacts is that a helium facility like this could be impacted on the long term for anywhere between 3 and 4 years. While these repairs insurance and claims processes, all kind of manifest themselves into a scenario where the facilities are then restored and back into an operational state where they can produce. We anticipate that it's probably a constraint that probably looks at about 20% of market in terms of total supply for that extended period of time. But as the news develops, we'll obviously inform shareholders and investors accordingly.

Thanks, Nick. So just first, this is a truly unique reserve. We've gone for the George in just a moment. But we're not drilling for gas in the Middle East, typically find about 0.03% helium with it. In the United States, you get about 0.3% helium with it. Whereas here in Africa, we're at 3%, Helium. That we've seen so far. So we're seeing helium concentrations 10x what we see us grow in the world. And that means as the helium market grows and the market needs more supply were the lowest -- we're likely the lowest levelized cost of incremental production volume in the world. And that makes us a very unique asset and that we can bring new capacity on faster and cheaper than the else can. These a vast perfect location. We've also got the lowest carbon footprint of any company in the world. And I say we've got demand for the energy that we get from this resource. So Nick, maybe let me talk about how this gas got -- it's pretty unique field. What are the kind.

Thanks, Paul. So if we look at the image that's on the bottom right-hand side of the screen, you'll see an impact of, well, a snapshot of a creator that's been created. This was a creator that hit the -- hit the earth about 2 billion years ago. The astroid, well, the body of the astroid was made up of uranium, ynthorium. Over time, that undergoes radioactive decay. And that is really the source of our high concentrations of helium. If we then look at the -- on this image, you've got a very bright red and purple highlight towards the bottom left of that crater or the room of the creator. That's essentially our production and exploration rights overlaying on the impact of this crater. So if we look at that Sandy shaded area that emanates out from the ink epicenter that would be the fruit bulk that's created and the room of that fruit ball would be exactly where we are located. What that means and why it's important is that our geology in that area has become highly faulted, highly fractured, naturally fractured as a result of both the astroidal strike but also tectonic forces in plate and movements in those tectonic plates that have created an upward thrust in that area to overturn the [indiscernible] transaction and essentially turn that vertical obviously been quite a brittle piece of geology has created a naturally fractured segment of geology. Why that's important is because our proven reserve is currently chasing a fractured play. We have to drill approximately anywhere between 400 million and call it a kilometer to intersect these pathways. We can drill deeper. We've proven that. But the idea is to drill anywhere between those sort of ranges and we create the preferential pathway for this co-mingled natural gas and helium to come to surface. The reason that's important is because our drilling costs are significantly cheaper, given the debt. The fact that it's low pressure means that we don't need a significant amount of, call it, ERP equipment on surface or Christmas tree, which would be required to regulate both flow and pressure. And the uniqueness of this gas, given the high concentrations of methane within this natural gas and the fact that we have 0 sulfur, no NGLs in the gas itself means the fact that we have to process it or purify it at, call it, wellhead in order to ensure the safe protection of equipment is eliminated. And that means the overall cost for the run in the upstream side of the system is relatively cheap compared to most competitors worldwide. If we look at this image here, what we've seen in the images at the bottom, the Dominion group, that's essentially the body of that Asteroid, the Dominion group, where the uranium entorium sits. -- it's creating that radioactive decay, where the helium is then migrating to surface. Moving through that with [indiscernible] layer. The [indiscernible] layer is essentially the strike, the fractured layer that I spoke about that then comes to surface. And what's important is we have now kept that off with a Karusandstone layer above that. And in the most recent campaign, we've announced that we had targeted a sandstone B. That body has never been quantified before in any of our resource statements. We're now looking at the full extent and we'll be working through the assessment of what that represents as a unique and completely separate reserve or reservoir that will be quantified by our independent specialists in due course. Paul you are on mute.

Maybe let's talk about how this is -- how fast the reserve is and what we take using up for Phase I and Phase II.

Yes. Thank you. So if we look at the image on the right-hand side of the screen, the black polygon outline represents the production right. That spans approximately 187,000 hectares or close to 500,000 acres. Our proven reserve has been quantified over the bright yellow polygon in the center of the field that represents approximately 15% of the acreage. And why this is important is because we have essentially not explored the contingent and the prospective areas, as you would see, represented by the light shaded yellow and the light blue areas and this represents significant upside and opportunity for further phases and development. If we consider the proven reserve and what we're planning from a Phase I and Phase II perspective, Paul, if you can go back one, if you don't mind. The Phase I and II project would consume approximately 50% of the gas that's been discovered and deemed to be proven in the bright yellow polygon area. So if we looked at that as an acreage scenario, it would be approximately 70% of the acreage is covered by this production right itself. And that means that we've got significant opportunities for further phases of development within the proven reserve itself and then obviously, significant phases of development over, call it, multi-decades, multi-generations in line with any global discovery of significant, call it, significance. If we move forward, Paul. Yes, we look at the proven reserves based on our previous assessment in 2021. What's important here, and we've highlighted it, the 1P reserve sitting at 7.2 Bcf of helium. Why this is important is the United States Bureau of Land Management, strategic helium reserve was quantified at approximately 6 Bcf at its height and full capacity. And we can already see that our 1P reserve here is much larger than the BLM. If we then consider our 2P significant opportunity for additional supply and volume and what's important to note here is that the BLM has been the provider of helium to the world as a last resort or first resort in a few instances for several decades. And that's what we see in terms of the natural benefit of this resource and the geology.

Great. So I'll take this next slide here. So shipping helium is not easy. So you're shipping at about minus 270 degrees C and you lose about 1% in terms of boil-off each day is shipping, it turns into a gas. And therefore, the duration of the shipping is important. So [indiscernible] South Africa is an exceptional place to ship from around the world, we can likely get to our customers faster in short business of time than with any other board. And that matters to the customer is typically paying for ex factory gates, paying for the shipping. And so that's important. Many customers have recognized that in our discussions with them. So talking about Phase I and Phase II now. So this is a fairly straightforward petrochemical plant as petrochemical plants go -- we have a number of wells out in the field, a gathering system, and that feeds an LNG and helium processing plant. This plant [indiscernible] cools the gas down. It cools [indiscernible] 170 or so and the LNG comes up the liquid, the minus 270 and the helium comes out as a liquid. Phase 1 is almost complete when we're starting up. We completed the drilling in May. The plant has been completely produced at [indiscernible], and we're in the process of connecting the wellheads to the plant. Now you will have and then line to nameplate capacity. We expect staff Phase 1 during the second half of the year, and the main industries were servicing obviously gatepower, industrial and transport and human markets. So let's talk a bit about the size and magnitude of Phase 1. So Phase 1 is expected to produce about 70 Mcf a day of helium about 2,500 gigas a death LNG. And for those in the United States, a gigajoule is about equal to an MMBTU. So we expect to reach nameplate capacity during the third quarter and start shipping product to customers by September. We'll then move on to Phase 2. Phase 2 is substantially larger, about 900 Mcf a day in helium, about 34,000 gigajoules per day of and we expect to benefit in Phase 2 for about $0.5 billion of funding from the U.S. government and [indiscernible] funding to the Standard Bank. Phase 2 will take about 44 months to build. Now in terms of in terms of what is regard in terms of revenues and profits, that's what most people are likely interested in. 12 months ago, we have looked at selling hereabout $400 per Mcf and LNG at sort of $13 to $14 per gigajoule. But right now, Helium prices are looking more excess 600 or even break 600. Our last contract was priced over 600. So if you see sort of $13 to $14 per gigajoule $600 per per ilium. Phase 1 is up $27 million in revenue and about $10 million to $11 million in cash gross profit ex D&A. Now obviously, I can't predict where gas prices are going or helium prices are going. But obviously, every dollar on the revenue and then the price drops straight to the bottom line, so you can run that math yourself. In terms of Phase assuming again $14 per gigajoule and $600 per Mcf of helium. Then we had sort of $370 million in revenue, about $20 million in cash close profit is a substantial project. It's a very large large project. We expect to come online to 2030, 2031 for Phase 2. Obviously, we get a by-product when we produce helium. We're very fortunate that our byproduct is LNG, and we can find best around South Africa very easily. [indiscernible] many helium projects over the last 2 years. This was my favorite mainly because of the LNG, the price we get for LNG and the ability to be a real contributor to the bottom line in the P&L. So Nick, let me could you talk about the natural gas sector and the users of it, please.

Sure. Thanks, Paul. So right now, all of South Africa's natural gas outside of what's produced by Renergen does come through the Ramco pipeline from Mozambique is produced in the Pande and Temane field by Sasol. Sal have indicated that from 2028, there'd be no ability for them to continue supplying into the external market and that we can expect to have a supply gas stiff. That means that in order for the South African industry that's connected outside of Sasol we would need approximately 65 petajoules of natural gas to service the current demand. If we include Sasol's needs themselves, the requirement will step up to approximately 185 petajoules per annum. And then if we consider South Africa's not only experiencing a gas crisis but also has an existing electricity crisis. The forecast for gas to power is driven by the government's gas master plan is forecasted to be approximately 870 Pedidos per annum by 2032. If we then break down our Phase 2 project, we will produce 12 petajoules per annum in that project. And what we are demonstrating here is that at all points, even in the most conservative scenario, the demand for natural gas for strips what we can supply within this project. That means there's no salt or bullet for any of the solutions that the government is looking to entertain, we essentially need several onshore natural gas fields to come online. We need several offshore natural gas fields to come online, and we do need imported LNG to come on stream as well in order to avert the crisis that the country will have for the next foreseeable future. And that does bode well for all right holders and project developers that are looking to supply into this scenario.

Well, I think you've covered that slide already. Let me run through just the key milestones. So 2026, the goal is to hit able capacity on Phase 1, start shipping product to customers and [indiscernible] basically Phase I we expect Phase 2 to be completed through '27, '28, '29 with the commissioning starting in 2030 and the first full year of commercial revenues during 2031. I think it's worth pointing out, obviously, Phase 2 is a very large project, about $1 billion of CapEx over 44 months. The main risks I see with that [indiscernible] are basically obviously the construction risk and the market risk financing risk. So financing risk, obviously, we've got 2 very supportive financial partners, DFC and Standard Bank. For the construction risk, where we're basically getting the leading LNG pass supplier, where we're expecting to get a turnkey contract. So that will mitigate risks of price creep delays, what have you. In terms of market risk, most of our product will be sold on long-term take-or-pay contracts. So Nick, let me talk about the take-or-pay contracts that we're negotiating with customers right now.

100%. Thanks, Paul. So on the LNG side, we are pricing -- well, we're packaging our contracts for a 5- to 8-year contract tenor period. in that mechanism, we include an annual price increase or inflator. If we set at South African producer price index, -- and essentially, if we look back historically over the last 5 years, that has averaged over 5%. So if you needed to build any models out, you would probably be using that as the backward-looking position to provide your inputs. Over and above that, when we move into the helium side of our business, we tend to typically look to longer duration contracts, anywhere between 10- and 15-year agreements. We do include the same price increase or inflator set with the same mechanism, essentially South African producer price index. And as I mentioned, for the last 5 years has averaged over 5%. That would typically be the long-term position that we -- or trend that we do anticipate moving forward. Great. Thanks, Paul. Sorry, the 1 key thing is that all -- both those contracts do come with take-or-pay mechanisms and they're set at a threshold of approximately 80%.

Great. Thanks, Nick. So let's summarize before to Q&A, this is a very variable resource, [indiscernible] one of a kind in the world. The highest grade of helium, we've seen a very profitable very, very profitable. It's not substitutive demand. You can't substitute helium in introduction semiconductors or MRIs or launching a rocket. It's a really unique gas. Obviously, as an urgent need to find new suppliers of the gas, given the supply shortages we're seeing right now. Say we intend to derisk Phase 2 with sort of contracts, both on the construction and on the selling of it. So I guess, Craig will stop there and we'll take Q&A.

Paul and Nick. To submit a question, please click the Q&A button at the bottom of your Zoom window and type your question into the text box, we can take only your written questions today. There are a number of other exploration right holders in South Africa aiming to develop helium and natural gas operations, why Renergen, or Noble Africa over these other assets?

Sure. Yes, absolutely. There are several early-stage explorers that are all looking to develop similar opportunities around helium and natural gas. -- all following on the pallet path that Renergen has laid out over the last call it, 19 years of development. What I think is important here is that South Africa does have quite a complex regulatory and legislative regime. A lot of hoops and hurdles to jump through. But then more importantly, if we look at any, call it, development of a resource extractive industry resource. These mechanisms do take time. And you have to go through a qualified exploration program that is measured in order to fully quantify what you're dealing with from a resource perspective, but then move into your production state. And in each phase of these licensing regimes you will need to go through specific authorization permits or licensing requirements for each set of activities. The typical licensing or permitting activity time lines can take anywhere between 12 and 36 months depending on what application you're looking for. So there's no quick path to success in this scenario, even if someone has lays the trail before you, there's still a significant window of time, passage of time that takes place. And I think the major advantage that Renegen offers is that we have a fully permitted call it, Phase 1 operation. We are almost finalized with our Phase 2 permits and authorizations, having started this many, many years ago. and from a timing to market perspective and the best bank for buck in terms of investment dollars, this represents the closest opportunity to see real scale production in order to unlock that return.

Your guidance for ASP isotopes in 2031 is for greater than $300 million in EBITDA. Based on current helium prices and your projected volumes for Phase 2, doesn't that guidance look rather conservative.

Yes, I'll take that one. So listen, I don't have a crystal ball. I can't tell you where helium prices are going to go over the next sort of few years or few months. So I think being conservative is probably the right thing to do. Also we haven't signed contracts yet for Phase 2. I guess, let's wait and see where the contracts of Phase 2 come out at. I think we probably look to the contract, 50% to 75% of Phase 2 out before the end of this year. And that obviously given 5- to 15-year nature of those contracts and the take-or-pay nature of those, that will allow us to give maybe some more definitive guidance as to what things look like we've done that. So we'll update best when we get more clarity on exactly how we look I'm not giving you the former how to work out to change that helium price up or down and see how it affects P&L.

What makes an onshore helium and LNG asset in South Africa strategically [indiscernible].

Yes, sure. So I think given our location, and I'll talk LNG first, within an energy constrained environment in South Africa, Obviously, it means that our molecules can be consumed locally. So that's a reduced cost to market, not having to -- and reduced impact on, call it, global shipping and logistics lines. So a very simplified operation. If we then think about the location from a helium perspective. It goes back to the map that Paul had on locations, shipping times to market. South Africa was originally established and discovered at the Cape of Good Hope was originally established as part of the, call it, the trade route by the Dutch for a very good reason. -- proximity to all corners or all areas of the globe in reduced time and format. So I think its positioning from that perspective is very strategic. And we're also somewhat removed from any significant geopolitical tensions and I think that becomes a very interesting, call it, solution for our key customers that are super reliant on a sustainable and reliable supply of product into their businesses and can afford these type of prolonged disruptions from that perspective.

So I see a couple of questions here. It's difficult to beat the Q&A questions quite a put a couple of interesting questions here that are being asked by viewers. So we'll come in ASPI shareholders get a percentage of Nova similar to the [indiscernible] spinout and what's the rationale for this merger. So we're not intending to spin out any of [indiscernible] to shareholders. I view is a highly strategic asset. I love the asset. It produced an incredible amount of free cash flow when it's up and running and it's full capacity. And it's one of a kind, like in the world. So -- so we don't intend to pay it out. We intend to maintain a very large proportion of it. And on the spin out the float will be about 11%. And then actually another question here about -- is there an opportunity to have strategic investors or nonvalue to financing into the opportunity. But as we go through Phase 2 contracting. A number of those potential customers that expresses in potentially investing in this asset in due course. And so obviously, those discussions will happen as and when we go through the Phase 3 contracting, we expect it between now and the end of the year. But in the briefing here is that SPI's balance sheet is extremely strong. [indiscernible] raised about $50 million of capital now in this listing. And so we're very well financed for at least the first -- the first part of the project when we combined the expected loan from the [indiscernible] and from Standard Bank. Looking down the list. Some other questions on helium free production. So we've been talking in this presentation about helium 4. We have not really measured the rate of helium for helium-fiet. Now it's possible we have higher levels of helium free, then we would see normally in the world, is possibly we don't. I expect us to analyze the helium over the next several months and formal conclusion there as to weather, it makes sense to try and extract the helium-free from this helium source the report back to investors as and when we -- as and when they get closer. Maybe a question here for you, Nick. Are we tied to the previous contracts of Linda to Phase 1, 75% -- can you elaborate on Phase 2 or 3 contracts?

Yes. So we're not tied to those historic agreements at the original pricing that's been all that was originally set in. So given the passage of time, we now have the ability to rebaseline and realign new contracts more commensurate with current trading conditions. We previously announced approximately 3 or 4 weeks ago that we have concluded a new offtake agreement at pricing greater than $600 per Mcf. I don't think I could say more than that, but what we're anticipating doing is essentially locking up most of Phase 1 helium molecules at some of the pricing to that. And the idea is then we'll move into the Phase II allocation and contracting strategy as well. And we look to price at similar levels to what we see currently. Given the, call it, medium-term forecast that there is going to be a prolonged shortage, we don't see that scenario changing at least for the next 24 months. So it's, from our perspective, at least the strategy to move forward as we are currently predicting.

Great. Another question I see here, Phase 2 rigs ground in 2028 earliest. Is there any way to accelerate that into late 2027 given all the demand points you've presented. We're doing our best, we'll move as fast as we can. Let's stick with the projections that we've presented so far. There may be ways to modify Phase 2 as well to bringing certain parts ooforwards. So we'll update investors as and when we get more clarity and certainty on that. But for now, you should assume 2028 breaking ground and have a 2030 completion or commissioning in 2021, first full year of revenues. [indiscernible]. Craig, maybe another question from yourself, if you see it's been some general [indiscernible].