Highfield Resources Limited (HFR) Earnings Call Transcript & Summary

Well, good afternoon, everybody, to the Highfield Resources Annual General Meeting. It's now well past the half hour at 3:37. My name is Paul Harris, I'm the Chairman of Highfield Resources, and we'll be chairing the meeting today. I apologize I can't be with you there in Adelaide, but I'm under doctor's orders. I'm advised that we, in accordance with the company's constitution, a quorum is present, and accordingly, I declare the Annual General Meeting open. So firstly, I'd just like to introduce you all to our Board. I think most of you know each, but with us is Ignacio Salazar, who's based in Pamplona now this morning; Pauline Carr, non-Executive Director, who's Chair of Remun and Nomin and also Chair of our Audit and Risk; Roger Davey, who I think is on, he's an experienced mining engineer, Chair of Atalaya, is based in London; and Brian Jamieson, our EMR rep and very experienced mining and legal and accounting executive who's in Melbourne today. So we're in all different parts of the globe this afternoon, but we're all on board here. So also joining us today on line is Olivier Vadillo, who is Head of our Investor Relations and Business Development and is attending online; and I think Javier Aguada, our CFO, is also with us. We also have present in the room with you there in Adelaide, Katelyn Adams, who's our esteemed Co-Sec. Joining us online as well is Julian McCarthy, our lead engagement partner from PwC, who's the company's auditor, is joining us via video link as well. So any questions in relation to the financial report, you're welcome to direct them to Julian's way. So if we can move now just to some administration, so today, we firstly cover the 4 more items of business and any shareholder questions relating to those resolutions. And I'll just remind you when we are going to pose a question, please relate them to the resolution. Otherwise, please hold off your question to the back of the meeting after Ignacio and Olivier's presentation. So before we start with the formal business of the meeting, I have a couple of quick housekeeping points. Questions to the board or auditors regarding the financial report or specific to the resolutions being presented today will be addressed throughout the formal section of the meeting. All other general questions will be addressed after the Chairman's address and presentation. When submitting questions, please state the registered shareholding name, and if appropriate, the specific resolution the question is relating to. If you require any technical assistance during the meeting, please click on the help function on this webcast. So I note there's no formal apologies, so what I'll now do is address the formal Chairman's address, which is, I think it's been lodged with the ASX just recently. So good afternoon and good morning, everyone around the globe because we obviously have some participants and shareholders around the globe and our executive team in Pamplona. I'd like to welcome you all to the 2023 Highfield Resources Annual General Meeting. It gives me great pleasure addressing this forum to outline the significant and exciting progress made by your company over the last 12 months towards a licensing, financing and construction of our 100% owned Muga mine. The significant progress includes receiving the key licenses to move the Muga project ahead, including the most recent final construction license from the Sanguesa Town Hall to build the processing plant. Also during the year, 2 other key licenses were issued the construction license for the electricity line was granted by the Sanguesa authorities, and the construction license for the mine gate was issued by the Undues Town hall. After many years of regulatory process, it was particularly satisfying to see construction works for the mine gate and decline start in mid-2022 and to finally receive the plant construction license, which has enabled the company to progress the Muga financing to its final stages in 2023. And I personally can't thank the executive enough for achieving those milestones. On the back of the Sanguesa construction license, the company recently announced significant financing from its major long-term supportive shareholder, EMR Capital along with investment manager, Tectonic, in the form of a AUD 25 million convertible bond. This is a very attractive form of funding for the company as it mandatorily converts to equity on first drawdown of the debt, that's the project finance debt from the banks, and enables the company to continue progressing the project whilst finalizing discussions with financial investors. Within the past year, Highfield has executed also the EUR 320 million debt facility with the leading European banks, while also bringing in a key local Spanish bank Caja Rural Navarra, along with HSBC Continental Europe. In addition to the senior debt financing, the company recently announced credit approval for the EUR 25 million equipment operating lease with Macquarie Group on top of raising the AUD 13 million of equity capital from new and existing shareholders in late 2022. So in addition to focusing on project approvals and financing, the Highfield team continued to remain extremely proactive on ESG matters. The company made significant progress over the year and was recognized internationally for its environmental work and sustainability activities. Under our mine plan, we backfill all residue underground leaving no residue on surface post mining, which is very, very unusual. We also remain focused on our communities. One example this year was our successful rebuild and restoration of the foundations of the municipal cemetery in the historic village of Javier. We continue to work closely with all the town halls of the region, assisting them with their local priorities. Once operational, the Muga project is expected to provide employment and business opportunities for locals and will be a key contributor in stemming one of the key concerns of the region, the depopulation of the region's rural villages. Despite weak and volatile capital markets in 2022 and that continued uncertainty in '23, the ongoing Russian occupation conflict in Ukraine has created a strong tailwind for the potash sector. In particular, there is now global recognition of the strategic value in potash assets, with security of supply located in politically stable jurisdictions such as Muga. This geopolitical backdrop has heightened awareness and has been particularly notable in Europe given that close to 40% of Muriate potash has been produced from Belarus and Russia prior to the start of 2022. This dramatic shift in regional supply lines has been very much in favor and has accompanied a groundswell of support for the project from a broad spectrum of stakeholders, including regional and national governments in Spain, financing groups and other key partners. We feel privileged to be in a position to be able to bring Europe's next potash mine into production and in turn, alleviate a significant pain point for the European and African agricultural sectors. Delivering on the Muga project presents a tremendous opportunity, and I would like to take this opportunity to thank my fellow board members, the management team led by Ignacio, and our dedicated employees for all their efforts over the year. I'd very much like to thank all our shareholders for their loyalty and continued support over this past challenging year and in particular, EMR. We are now at the junction of a very exciting stage in Highfield's development. I look forward to Highfield continuing its trajectory to become a successful and sustainable long-life producer of potash. So that concludes the chair address and will now move to the formal business of the meeting. So the notice of meeting was made available to all shareholders on the 28th of April in accordance with the Corps Act. If there's no objection, I propose that the Notice of Meeting be taken as read. I advise that there's no notice of any other items for today's agenda has been received and therefore declare that the only matters for our meeting today that can be dealt with are those set out in the Notice of Meeting. So just in relation to voting, given this meeting is being held in a hybrid fashion, as we're all used to now, we'll be conducting votes on each resolution by way of poll. Shareholders attending virtually should access the URL as shown on the slide. You'll also need your meeting ID and shareholder ID, which is available on the proxy form or e-mail you received for the Notice of Meeting. When I shortly open the poll, click on Poll to be taken to the voting screen and then Confirm to submit your vote. You will be able to amend your vote until I close the poll. For those attending in person, you should have received a voting card on which you can record your voting preferences. Please complete your voting at the appropriate time and then submit your voting card in the ballot box that will be circulated. We should have that somewhere there for you. Once the poll voting has been tallied, the results will be posted as an ASX announcement following the conclusion of the meeting. Any directed proxies given to you by the shareholder will automatically be cast as directed when the poll is closed. I note any undirected votes available to me as Chairman, I intend to vote and favor of each of the items of business. Okay. In relation to the proxies, the proxy votes submitted by the due date for the lodgement of proxies for each resolution will be set out on the slides that will be shown for each resolution. You'll see them up there in front of you. Any shareholders attending virtually are encouraged to submit your questions through the Ask A Question box. Please include your registered shareholding name and specific resolution or item of business it pertains to. The poll will remain open for a few minutes after the conclusion of the final item of business to allow votes to be submitted. So I now declare the poll open on all of the resolutions. I appoint Richard Han of Advanced Share Registry as a returning officer for all resolutions. Those in attendance in person should have received an attendee card on entry. If you've not done so, Richard should assist you. Those holding pink or green cards are entitled to vote. Today's resolution will be voted on by poll. Each shareholder, whether voting in person, by proxy or by representative is entitled to 1 vote for every shareholder by that member. You voting paper is on the reverse side of your pink or green card. Please complete your voting paper and submit it in the ballot box that will be circulated at the conclusion of the items of business. For those who are attending the meeting virtually, to vote electronically, you will need to minimize the webcast on your device to access these voting options by selecting the arrow in the broadcast bar and visiting the euro that is again shown on the screen. Okay. So first, ordinary business, the financial report, director's report and independent auditor's report. The first item of business is to receive and consider the financial report, directors' report, independent auditor's report for the financial period ended 31 December 2022, after which we'll continue to the formal resolutions to be addressed in today's meeting. Please note that Julian McCarthy from PwC, the company's auditors, is available today if you have any questions. We're not required to formally adopt these documents. However, I invite discussions on the financial statements. So if you have any questions, on the financial statements per se that's not relevant to a particular resolution, you are welcome to raise those questions now. I am informed the meeting that a copy of the company's annual report for the period ended 31 December '22 was lodged with the ASX on the 31st of March and sent to those shareholders who requested a hard copy. A copy of those -- of the company's 2022 annual report is available for download from the company's website. If there are no questions, I don't have any questions online, I can't see any questions there from the room, we'll keep moving to the next item of business, which is resolution 1, adoption of the remuneration report. I informed the meeting that the explanatory notes accompanying the Notice of Meeting and the company's financial statements provides a background and details of the remuneration report. Please note that the key management personnel of the company, including the directors and their closely related parties, are excluded from voting on this resolution as set out in the Notice of Meeting. I now move the motion to consider and if thought fit to pass, with or without amendment, the resolution contained on the slide as an ordinary resolution. So I now invite discussion of that motion and will allow time to submit some questions. While we're doing that, I will state that the directors unanimously recommend that shareholders vote in favor of adopting the remuneration report. The proxies received for this resolution are displayed as you can see which is fairly resounding. The resolution is currently open to vote by conducting a poll. For those attending virtually, if you have not done so already, please now electronically cast your vote on this resolution. For members in physical attendance, please complete your voting papers, which will be collected after all the items of business have been considered. [Voting]

Are there any questions from the room? I can't see any, and there's none online. So I'll now move to the next item, being resolution 2, reelection of our fellow director, Mr. Brian Jamieson. I informed the meeting that the explanatory note and accompanying the Notice of Meeting provides the background and details of this item. I'll refer the resolution as presented to you on the slide. And I now move the motion to consider and if thought fit to pass with or without amendment that Brian Jamieson, having voluntarily retired in accordance with Clause 12.11.1 of the constitution and being eligible and offering himself for reelection, is reelected as a director with effect immediately following the conclusion of the meeting as an ordinary resolution. So I now invite discussion of that motion and will allow time to submit questions. So just while we're doing that, I will note that each of the directors, obviously, without Brian standing, strongly recommend shareholders vote in favor of this resolution. The proxy votes received for this resolution are displayed as you can see on the screen, which are resounding. The resolution is currently open for vote by conducting a poll. For those attending virtually. If you haven't done so, please now electronically cast your vote on this resolution. For the members in physical attendance, please complete your voting papers which will be collected at the end of the meeting. You know that, so I won't keep going over that. [Voting]

Are there any questions in relation to the reelection of Mr. Jamieson? Doesn't look like it. So thank you, and congratulations, Brian. Resolution 3, issue of options to the Managing Director, Ignacio Salazar. I inform meeting that the notice of meeting provides a background and details to this item. I refer to the resolutions presented to you on the slide, and I now move the motion. To consider and if thought fit to pass with or without amendment the following resolution is an ordinary resolution that for the purpose of Listing Rule 10.14 and for all other purposes, approval is given to the issue by the company of 2,639,296 options to Mr. Ignacio Salazar, under the employee incentive scheme known as the Highfield Resources Limited Employee Long-Term Incentive Plan on the terms and conditions set out in the Explanatory Memorandum. I now invite discussion on that motion and will allow time to submit questions. And whilst we're waiting on those, I do note that each of the directors with Ignacio abstaining recommend shareholders vote in favor of this resolution. The proxy votes received for this resolution are displayed. This resolution is currently open to vote by conducting a poll. You know the drill. Those attending virtually, if you haven't already done so, please cast your vote and those in physical attendance also please cast your vote. [Voting]

Are there any questions in relation to the options? No? Okay. We'll keep moving then to Resolution 4, approval of previous issue of shares. And I apologize for the dryness of this whole process. But as you know, when you attend an AGM, you do have to go through these motions, and it's important business that the company does get approval for each of these items, in particular, the next ones as we move forward. So approval for the previous issue of shares. So I inform the meeting that the explanatory notes accompanying the Notice of Meeting provides a background and details of this item. I refer the resolution presented to you on the slide, and I now move the motion to consider it and if thought fit to pass, with or without amendment, the following resolution as an ordinary resolution that for the purpose of ASX Listing Rule 7.4 and for all other purposes the approval is given to the previous issue by the company of 2,119,425 shares under ASX Listing Rule 7.1 on the terms and conditions described in the Explanatory Memorandum, which is attached to sorry, the explanatory statement on a memorandum, which is attached to in forms part of the Notice of Meeting. I now invite discussion of that motion and will allow time to submit questions. Each of the directors recommend shareholders vote in favor of this resolution. Proxy votes received for this resolution are displayed. The resolution is currently open to vote by conducting a poll. Those attending virtually, please vote, and those members attending physically, please vote. [Voting]

Can I ask if there's any questions in relation to that resolution? Okay. There doesn't seem to be. So we'll keep moving and we'll move to Resolution 5, which is a similar approval of a different issue of shares, which was the shares under the placement December 22. I inform the meeting that the explanatory notes accompanying the Notice of Meeting provides the background and details of this item. I will refer to the resolution as presented to you on the slide, and I now move the motion to consider and if thought fit pass with or without amendment the following resolutions as an ordinary resolution. That, for the purpose of ASX Listing Rule 7.4 and for all other purposes, approval is given to the previous issue by the company of 21,612,904 shares under ASX Listing Rule 7.1 on the terms and conditions described in the Explanatory Statement, which is attained to and performs part of the Notice of Meeting. I now invite discussion of that motion and will allow time to submit questions. Each of the directors recommend shareholders vote in favor of the resolution. The proxy votes received for this resolution displayed. This resolution is currently open via conducting a poll. For those attending virtually, please cast your vote and also those in physical attendance, please cast your vote. [Voting]

Are there any questions in relation to this resolution? Okay. Thank you. Yes.

What is the resolution?

Yes, sure. No problem at all. So this was -- these resolutions are in relation to the previous issue of shares -- and this particular resolution 5 is in relation to the placement that was done on the 12th of December '22, where the company placed 21 million shares at a price of $0.62 to raise $30 million to new and existing shareholders.

Thanks very much.

Okay. If there's no further questions, I'll keep moving. And we'll now move to Resolution 6, which relates to the options that were attached to those placement shares. So the approval of issue of options, I inform that the meeting that the explanatory notes accompanying the Notice of Meeting provides a background and details of this item. I refer to the resolutions as presented to you on the slide, and I now move the motion to consider and if thought fit to pass with or without amendment the following resolution as an ordinary resolution, that for the purpose of ASX Listing Rule 7.4 and for all other purposes, approval is given to the previous issue by the company of 10.8 million options under ASX Listing Rule 7.1 on the terms and conditions described in the Explanatory Statement, which is attached to an forms part of the Notice of Meeting. I now like to open discussion of that motion and will allow time to submit questions. Whilst I'm doing that, I'll just finish the resolution. Each of the directors recommend shareholders vote in favor of that resolution. And I ask -- and the proxies votes received for this resolution are displayed on the screen. And I ask those attending virtually and physically to please complete their votes now. [Voting]

Are there any questions in relation to Resolution 6? Okay. We'll keep moving then to resolution 7, which is approval of the employee long-term incentive plan. I informed the meaning that the explanatory notes accompanying the Notice of Meeting provides the background and details of this item. I refer to the resolution as presented to you on the slide, and I now move the motion. To consider and if thought fit pass with or without a member the filing resolutions as an ordinary resolution, that for the purpose of Listing Rule 7.2, Exception 13(b) and for all other purposes, approval is given for the issue of securities under the employee incentive scheme known as the Highfield Resources Limited employee long-term incentive plan and the rules of which are annexed as Annexure C to the explanatory memorandum as an exception to Listing Rule 7.1. I now invite discussion of that motion and will allow time to submit questions. The proxy votes received for this resolution are displayed. This resolution is currently open to vote by conducting a poll. I ask those attending virtually and also physically to cast your votes. Are there any questions?

Yes, I have a question, Jeff Day. What would be the price of exercising those options?

So the options in relation -- every option has a different exercise price. However, in relation to the -- Pauline?

I can probably help out for us. So obviously, this is a particular here. This is for these share plans are required to be renewed by under the ASX listing walls every 3 years. So this is just a renewal of the existing plan. And what we do here is that the options, we work at the weighted average price of the December month, which is the month preceding the start of our financial year. We then add a 25% premium to the exercise price of those options. In order for those options to vest, they vest over 3 years various performance hurdles must be met. And in particular, the current hurdles related to the retention of employees and they must be employees as at the date that each of those 3 tranches are assist. So in effect, the pricing is the December being were plus a 25% premium.

So Mike, ,my question is this that if the valuation of Highfield, and I've see various broken reports of $1.50, $1.70. What's the company doing putting options as such ridiculously cheap prices? Because I don't think that's a particularly good incentive. It's just a big free kick to the new executive coming in. If these options were with a strike price at close evaluation and the incentive is to get the valuation of the company up from its current levels, then the executive is going to be working down hard. But if you're issuing them a $0.50, $0.60, $0.70 and you've a valuation of the business of [indiscernible], but I can't see what that person has to do to get the share price up because the share valuation is already extremely high, much higher than the current price. I think the company should be reviewing this because my personal view is that this does go on a lot is that the share price of this option should relate to the valuation of the business. And one might ask you that the share price of Highfield is a reflection on the management and the Board today. And it's an incentive, which I think should be out at these prices.

Thanks, Jeff. I appreciate the question, and it's a good question. It's a very valid question. So I just for example, the options that were issued to Ignacio, which is previously by poll been approved, those options have an exercise price of $0.79. Now you referred to the valuation broker valuations in the market are a lot higher than that, which we all agree that the company should be trading at those levels. Unfortunately, supply and demand forces don't necessarily agree with those valuations, and the share price is certainly not trading anywhere near those levels. We as many companies do use our STIP, our short-term incentive plan, and our long-term incentive plan as a variable portion of our remuneration to incentivize our executive. Now I'm not sure I agree with you in relation to these options not incentivizing our executive. I think that it does highly incentivize our executive because they only participate in the share price above the strike. So it's going to go above $0.79, and then they start participating in the upside. Now at $1.80, there's a lot of money to be made there. And I'm sure Ignacio and the rest of the executive team will be working their butts off to get it up there, as our rest of the Board. So look, I do appreciate your comments as would the rest of the Board. And it is a difficult -- it's always a contentious issue in terms of executive remuneration and how to structure it correctly and how to structure it to ensure that our executive is motivated and also rewarded on their performance. and we're very cognizant of that. And Pauline, who is Chair of our remuneration and the rest of the Board who sits on the remuneration committee are very focused on the way that the executive is remunerated. We'll certainly take that into consideration. It's a valid point. But there's many other things that we need to take into consideration. And I can assure you that there's no person that works harder in this company than Ignacio. And we're very happy to be able to reward him with a variable remuneration plan like this long-term incentive plan that enables him to participate at a share price participation. At certainly a level is well above the current share price. But do appreciate your points. So thank you. Katelyn, were there any other questions from the room? I don't have any further online.

No other questions from the floor.

Okay, thanks very much. So what we might move then is to Resolution 8, which is the approval of the 10% placement facility. So I informed the meeting that the explanatory notes accompanying the Notice of meeting provides the background and details of this item. As the approval of the 10% placement facility is a special resolution, I note this requires approval of 75% of the votes cast by shareholders on this resolution. I now move the motion to consider if thought fit to pass with or without amendment the following resolution as a special resolution, pursuant to and in accordance with Listing Rule 7.1A and for other purposes, shareholders approve the issue of equity securities up to 10% of the issued capital of the company at the time of the issue, calculated in accordance with the formula prescribed in Listing Rule 7.1A.2 and on the terms and conditions set out in the explanatory memorandum. I now invite discussion of that motion and will allow time to submit questions. Whilst we do that, I know that each of the directors recommend shareholders vote in favor of the resolution. The proxy votes received for this resolution are displayed. The resolution is currently open for conducting by poll to those attending virtually or physically, please cast your votes. [Voting]

Are there any questions from the floor in relation to this resolution?? We don't have any online so if there's no further questions, I'll now move to the next item, which I think is a final resolution, which is a constitutional amendments. There's a couple of final constitutional amendments which are more housekeeping than anything else. I informed the meeting that the explanatory notes accompanying the notice of meeting provides the background and details of this item. As approval of the constitution amendment is a special resolution. I note that this require approval again of 75% of votes cast by shareholders of this resolution. I now move the motion to consider and if thought fit to pass, with or without amendment, the following resolution as a special resolution. That for the purpose of the Section 1362 of the Corporations Act and for all other purposes, the constitution of the company be amended in the manner described in the explanatory memorandum accompanying the notes convening this meeting with effect from the closing of this meeting. I now invite discussion on that motion, and we'll allow time to submit questions. Whilst we do that, I know that each of the directors recommend shareholders vote in favor of the resolution. The proxy votes received for this resolution are displayed. The resolution is currently open for conducting by polls those attending virtually or physically please cast your votes. Are there any questions in relation to those constitutional amendments? No. Okay. Well, thank you for that. So that now concludes the resolutions presented at the meeting. Please submit any votes through the online platform for those attending virtually. For those attending in person, please submit your votes in the ballot box. This concludes the formal part of the Annual General Meeting of the Highfield Resources. So I now formally declare, Pauline if it's okay with you, I formally declare the poll closed and appoint Richard Han as returning officer. The results of the meeting will be released to the ASX when tallied later today. Thank you all for attending the Highfield Resources Limited Annual General Meeting. I now declare the meeting closed. So now we get to the exciting part of the meeting and I apologize for the dryness of these AGMs, they are very procedural. So we can now get to the exciting part, and I'm going to hand over to Ignacio and Olivier, who are sitting in Pamplona this morning. And as I mentioned before, if I can personally say on behalf of the Board, thank you enormously the executive over the past 12 months, the amount of effort that was required to, in particular, get the construction license from Sanguesa was enormous. There's been some voting over the weekend, in particular in the region, but we might see some change in governments in each of the town halls. But thanks to Ignacio and his team, those licenses are now issued. So we're in a great spot to now finalize our financing and move the Muga ahead. So thank you all for attending, and I'll hand over to Ignacio and Olivier. And then if we could just hold questions for them both until the end in relation to the presentation. So thank you.

Thanks a lot, Paul, and good afternoon, everybody. Yes, we go through the presentation, indeed. Just referring to your last comment, the major of Sanguesa is no longer the major of Sanguesa. She retired from the town hall so as well as the party, the whole party that was supporting her is out of Sanguesa now. So we have elections in municipality and regional elections. And you may hear yesterday, the President of Spain asked for the national elections to be advanced and to be done on the 23rd of July rather than in November, December, where they were meant to take place. So a lot of shake up in the regions and in Spain in general. But okay, we cover that later if you want to go into more detail. Let's go through the presentation, we'll try to be brief. Obviously, you are well aware of most of the points here. So let's go through that and take any questions if you want to go in more detail. But if we move to the next slides, obviously, fully permitted, shower ready mine and something, I guess, we were not allowed to put in the presentation for many years. But right now, that is the case and moving forward to construction. So market fundamentals. Well, the price has been very strong, slightly less. So recently, COVID first, and after that, the war in Ukraine pushing crop prices in general and potash as well. Long-term fundamentals very strong, and you know our project, very strong within a strong sector with a high margin, strong quarter of margins. So very, very good forecast for the sector and for the project. Well, at our land decreasing and population increasing, it's difficult to argue against something like that. And MOP in particular, one of the key ingredients to solve that equation. In the next one, we cover -- I think we move some of this. Well, obviously, with this very, very much, very strong topic last year, but still so Russia, Belarus accounting for almost 40% of worldwide production and more than half of the demand in Europe. We had here in the Pamplona office, the visit from the Ambassador of Lithuania. Recently, you know that Belarus only comes out to the market through Lithuania and not anymore because that border is closed, so they are not able to export through Lithuania. And very much the reason for that visit, and by the way, we were told potentially the Minister of Lithuania to visit us. And they are very interested about that visit. It looks like Navarra has a lot of -- happens to have a lot of dealings with Lithuania. But basically, well, that is to underline the point that a very key project in Europe and from a geopolitical perspective, all the countries you can imagine around all the countries in Europe a lot more sensitive about the war in Russia obviously, than potentially maybe from Australia is seen as a very much a European topic, and the country's former Soviet Union countries or countries in the border with Russia. Obviously, the sensitivity goes a lot higher. And in this case, Lithuania, that was their interest to make sure projects like ours get a lot more attention than well potash coming from Belarus or Russia. So that is maybe to give you a certain recent news on that. But basically, always has been move a very strategic process -- project, and only becoming more and more obvious to everybody as the world moves into a more fragmented regional blocks type of geopolitical scenario environment. We go to the next one, to move now into the project sorry -- there is another one before share price -- sorry, back into the corporate snapshot, very quickly on that. Market cap around $230 million; EMR, 27%. Well, as you know, the recent deal is based on convertible notes. So that's not going to change that number now until those notes are converted into equity. They as I mentioned before, they will have to be converted mandatory, is mandatory conversion before draw down. That's a very special feature of that deal. So that will increase the participation of EMR. But basically, cash at the bank at the end of March, $9 million, and obviously, now with the deal with Tectonic and EMR that will put us in another AUD 25 million extra from that puts us in a very, very strong position going forward. No debt and the price targets that were referred to before. Next one, please, management team. We've made a huge effort in the last 2 or 3 years to really work with [ young ] and new and reduced management team. I mean, very much the emphasis we made a significant change on the way the permitting was handle and the people that we're handling the permitting as well as the relation with the communities and the government and I mean, some of the people there. And obviously, in parallel and now taking a lot more emphasis, work on the financing side as well on the financing we made a very significant difference on the -- and I go through the people very quickly. On the construction side, we kept the team to the potentially absolute minimum with a now you have heard, let me start with that one, the recruitment of Carles Aleman, probably our first step to strengthen the construction team with, as you know, former President of ICL in Spain and Portugal in Iberia for 5 years plus. So very, very significant experience in Spain in potash and with ICL for many years, apart from other companies before that and in different countries in Spain, but as well outside Spain. So very happy to receive Carles really 2 weeks ago. And we'll be obviously the first in quite a lot of change that we will have to go through as we move into construction. Bear in mind, we have been -- we kept -- we've been reducing the team from 40 to 30 in the last couple of years. And now we have to move from 30. The construction effort, obviously, including contractors will mean involving around 1,000 people in the construction of Muga. So it's obviously an effort we are not taking for granted at all. It will be I mean a lot of companies to get it on in the permitting or the financing, but as well in the construction. So every step taken very carefully. But construction team, together with Jorge Velasco, faith on the mining, Leo, we split the construction in 3 work streams. We will talk about that a bit later in the presentation, and that is the starting point for that. On the permitting relation with the communities is maybe more on the top line of the management team. Well, Olivier is with me here on the Marketing Investor Relations site. You know him most of you quite well. Susana has been doing a lot on public affairs. Javier Olloqui, and Javier Aguado, very, very people with a lot of experience in the region and in the industry and also able to connect very well with the different stakeholders and to mobilize people whenever necessary through the process that we've gone through in permitting, especially. Going to the next one, please. Well, the project well where we are, Pamplona to the top left of that map and our project Muga, just a motorway to get there. And basically Northern Spain, very close to the border with France. The first phase 0.5 million tonnes of MOP, second phase will get us to 1 million conventional mining and processing methods. Next one, please. Well, we started -- we are talking very much about preparing for construction, but fair to say that we started last year. I mean that was on the back -- I mean we've taken a strategy to be, well, I think, a very clear plan and objectives, but at the same time, able to react and be extremely flexible with I mean, obviously, trying to keep minimum resources and cash and effort that's creating maximum progress for the project. I mean it's been I think a balancing act so far working well. And then a key element was as soon as we got the construction license of Undues in the Aragon region, that is obviously all the work related to the to the mine, to the ramps are in that region. The plant is in Navarra is that we decided to embark on this on this works around the mine gate, relatively small amount of work, but significant in the sense of that we were cutting the construction effort that will take place in the ranch by advancing these 5, 6 months of work around the mine gate. So it is very important effort, and it is already there, done and everything on budget and according to plan. But is -- that gives us a head start on that work of ramps of, as I said, these 5 for 6 months. The idea is, as you can imagine, we will be running the construction of the ramps. And the plant in parallel. And they -- well, you want to have the ramps ready with the mine already when at the same time, the plant is prepared to process that mineral. So running that very much in parallel. And to have that construction license from Undues ahead of time. I mean it was probably very difficult to forecast, which one of the construction license is going to take longer or harder, but this we managed to get that last year in June 2022. And well, most of this were finished at the beginning of 2023. And as you know, the Sanguesa license, the one for the plant is the one we received at the end of March. So we go to the next slide, I think it's a bit more on the work that has been taking place. Again, I think locally, and I can imagine for investor shareholders in Australia and globally, important to see after so many years of chatting and talking, et cetera, just to see real work. And that, I think, made a huge impact, no doubt. As I said, both locally and with the investor community. And you see on the right side as well as some of the equipment that we started to receive recently in our warehouse. So it's also just to not only has been that work around the mine gate, but also just to get some of the key equipment received in the warehouse. So initial progress in construction and obviously now preparing for what we call the construction of the bulk of facilities. But already this in place. Important as well to force the construction license in Sanguesa support of already government behind us, that made a significant effect on everybody's perception of the company just to see this works in place. Next one, please. I mentioned that before when I was talking about the team, the way we are going to prepare construction is really -- we are thinking about 3 constructions, and we are aligning the team just to work along those lines. The plant itself is a typical industrial construction organization. Civil works is obviously cutting across both plant and mine and the declines and the mine infrastructure, which is a really mining operation almost. Also, the relationship with contractors is different in each of this 3 work streams, as well as the type of work. But obviously, that needs to run very much coordinated, starting, as I said, with Carles joining the team to repump or strengthen the team significantly as it has to be, but very quickly, again, path going forward in all this work that is to take place now. Please, the next one. Okay. That's -- this started a bit simpler chart that has been growing, obviously. And luckily, I think good to be so with especially the ticks on the box. And I mean I think without going through all of that, as I said, the main difficult part has been the permitting, and that's why that the bigger tick is probably there on the financing side. They work with Endeavor, they work with just to get the trade finance loan. And recently, you saw some syndication of that loan, which we're striving mostly from our side. And the work with Endeavor, we feel very proud of. The terms and conditions that have been achieved in that loan is something that in our -- well, the next element of that financing strategy, any strategic investor who want to protect that great finance loan. So that is adding to that. We have -- and that has been discussed recently got this deal recently with EMR and Tectonic, which provide us with a bit of time. I think as soon as we've got the license in Sanguesa, the strategic investors see the company in a different light, and that allows us the license and just to have a pit with no permitting risk allow us to have a very different discussion with strategic investors, make it a lot more competitive and getting -- it's not a matter of getting at we can get a deal tomorrow or we could have get several deals before, but the question is to get a deal that really adds value to the company and to shareholders. And that's, I think, with the permitting in place, the permitting risk behind us and the support of this deal from -- and the support of EMR, Tectonic puts us in a stronger position to close the deals we've been working with and are well advanced. So we have said to the market already. Our intention is to start construction in the second half of the year, and that is where we are moving along that plan to finalize the financing, get the team built up and strengthened. As I said a couple of weeks ago, very important, Carles joining the company and more will come and finalizing the contracts with -- well, Acciona is one of the contractors that on others to be fully prepared for construction and put us in the best position to get make a success of that construction period. Sales and marketing, it's our strength, our main strength. So indeed, we kept managed to get several nonbinding deals, but have very much important kept those nonbinded because we think it's not something we need to manage or a problem for the company, how we get rid of our potash on the opposite -- the fact that we are in the middle of the market, we really need to push aside farmers to build the plant and the mine is in our mind, clearly an asset we would like to materialize get the best out of that in this moment. And as discussed before, some of the construction, the initial preliminary work was done, but the main one we are planning to start at the end of the year, beginning of 2024. Go to the next one, please. I think Highfield Resources, yes, the next one, I think we will get the answers to that. As you know, I will go very quickly. They are free and this beautiful, I think, strategic competitive advantages for this project that make it different to Canadian, Russian or any -- in our competitors is -- one is the fact that we are surrounded by very, very good infrastructure. You see the pictures of the motorway that is the actual motorway substation and the port that are next to the mine and the port of Bill. -- the fact -- the second point that makes this project special is the shallow mineralization compared to other mines that in Canada need to build a shaft $2 billion shaft. They are building at Jansen or they have built on Jansen, our case will be simply a couple of ramps to access mineralization, no aquifiers on top of mineralization. And the third and the most important asset or strategic advantage of these companies in the location in the middle of the market when typically these projects are really in the middle of nowhere and such a high-volume commodity like potash, where the transportation costs are critical. Next one, please. I mean that results in -- I mean those 3 strategic advantages give our project a very low cost. At the European prices, you can see have traditionally for years trading at a premium to Vancouver prices $50, $100 per tonne. I mean that is the result of being kind of a Canadian producers, the price setters globally, the differential in transportation from Vancouver, well from the middle of Canada to Vancouver and to Europe is the main reason for that difference. So if that tells you quite a lot, I mean, $50, $100 per tonne is the differential in price when our OpEx cost unit cost price of production is EUR 92 per tonne. So it's almost the same or high. So with those better prices, lower cost is why we adapt with a top quartile margin in the industry with Muga and that has been always understood for this project. And well, I must say the exercise with the prefinance banks, with the strategics. And Macquarie recently are only giving us comfort that -- well, it's not only our analysis, but many, many external diligence are confirming all these economics and the potential of this project. Please, the next one. Yes. I mean that is about margins, profitability, but on the CapEx investment as well. I mean, as I said, we don't build shafts. We don't build logistics, et cetera. So compared to peers and other projects, Muga in a comparable basis for the same amount of production, we are half the cost to build Muga mine compared to the others. So I mean, with that, again, not only high margin but low CapEx, NPV, and that is the number, official numbers in the market now from the end of last year of close to EUR 2 billion and IRR of 21%. EBITDA, EUR 400 million, this will be a cash machine. As I said recently, once we start to be in production and especially with Phase 2, 1 million tonnes of MOP, this will be generating EBITDA of more than EUR 400 million per year. Next one, please. I mean this is a summary of the economics from the feasibility study and some comments about the financing I think we cover most of that. I mean, only to add that this is extremely, I mean, 30-year mine life when, as you know, in potash typically, you don't do much more drilling, so not to sterilize the deposits. So it's something that we are all very confident will increase, apart from the potential of not only move up of Ibasca but some of the other projects that we have around in the belt. And on the financing side, I think I mentioned all of that as well as the AUD 25 million from Macquarie. We had to fee for a bit with no binding mandate among the binding term sheet that was finally signed and sealed. And in fact, some of the first payment to Komatsu has been taking place as part of this equipment lease with Macquarie. So adding up the building blocks on our financing strategy. And I think in a solid way and with not only just getting the deals, but deals that make sense and add value to the project. Next one, please. This is the deal, and we've discussed this quite a bit already. So probably not to say much more, very important timing. And I think, especially in the case of EMR at has been a bit well, maybe less present. I think the fact that we got the final -- not only to EMR, I guess too many shareholders after well, many -- especially long-term shareholders see that the permitting is behind us after so many years that was very important and I think a main point about getting EMR backing the company, once again, together with Tectonic. So very important to get this cash to allow us -- there are important elements to make sure the project keeps going and keeps making progress. We've gone through the exploration process. as well and is just making sure we secure all the land to get the project. Obviously, all this work with the banks, et cetera, require some payments to get secure and committed the funds to get the credit moving and also to start to build, give us a bit of time to -- I mean you cannot switch from [indiscernible] a very lean and mean team that as we have really imposed on ourselves for the last 2 or 3 years to transform that into, well, a lot more a bigger team at the end of the day to take care of the construction. So I think it's going to be important time as well as, obviously, as we said a few times, get the discussions and put us in a better position when we talk to some of these strategic investors in a better position to negotiate good deals for the company. So a very important timing of the funding. Please, next one. ESG, credentials, we've discussed this many times. I mean, I think obviously, when I talk to many of stakeholders. I mean the fact that we are backfilling we will be living absolutely no residues on surface by the time this mine is going. That is first leading, I would say, globally in this type of mines. From a social perspective, I could be talking for hours about the work that we have been here on our own, I mean, especially we intend to refer to the study and the -- what is being called by the government Muga community. And I think the way to do things properly, just to have that sort of framework to get the housing, the transportation, all the necessary infrastructure so that the communities benefit from this project is that is being worked out with everybody. And that's why we got the level among other things, the level of support that we got to get the final license, for example, and governance, as you are well aware. I mean, the company for a long time, always setting the highest standards as we move forward in terms of governance. And more and more important as we move from a relatively more of desktop type of phase to our construction and operation phases of the company. Please next one. I think we are getting probably to the end of the presentation. Just to summarize, I mean, not to go through that again, very strong project that has always been with potentially, I think, I mean, nothing especially if I say a big concern about permitting and the wages would be handled with the administrations, but now behind us, so we're ready to start construction and finalizing the financing of the project, and I think moving the project into are very, very interesting phase and making more a reality after so many years. So very excited to be in this position, building the team and making sure that we put everything in place to make a success of the construction of Muga. I think that's all from my side and open to questions or any discussion.

So Katelyn, we might hand back to you there, just see if there's any questions from the floor. We don't have any online.

We do have a question from the floor. Thanks, Paul.

I'm to Tim Harrison and I represent many clients, which have been in for many years, over 7 million shares. My first question, I do have a few questions for you, which you may and the others may not answer. But the first question is, I think you understand and aware that the continued disappointment in the share price of HFR over the many years despite the milestones you have just achieved just exactly we were $0.44, 2 weeks ago despite you getting a fully permitted buy. The first question is how are you guys going to close the gap between share price valuation and the NPV, which you just put on the slide of EUR 1.8 billion? The HFR value has overseen EUR 350 million since 2016/'17. When you have a mine which is in construction, it should be 30% of our K, we are currently sitting at 5% of NPV share price value. How are you going to address this problem?

Yes. Well, I mean the best way to close the gap is to deliver. I mean, as you...

You're delivering Ignacio. It doesn't move, it goes down. And my second question will follow on from that.

No, no, no. But without delivery, then everything else that you do is getting you nowhere. So I think that is absolutely critical. And well, thanks for that comment. I really also believe we have delivered, and that my point was about to continue delivering going forward. I mean you have I mean I think it's no mystery. We all know that we're -- and there have been shareholders that were -- have been there for a while, and they were deciding to leave the stock and you have a normal supply and demand. And when they do that, well, I think is a matter of allowing that to happen and make sure that happens as soon as possible. So the people behind that belief and want to -- I mean -- and people that live not necessarily on the basis of the performance of the asset or the company or what we are doing, but on the basis of other considerations they may have. So I think it's no secret about that. But so to be fundamentally delivering and progressing with the project is going to be overwhelming. At the end of the day, when you are working in the medium and the long term with the share price. Aside from that, it's obviously working within our IR, and with our brokers, and make sure that, as I said, these deals that we are doing now as well on the strategic and the deal that we recently do with EMR and Tectonic. All of this makes sense and creates value going forward. But I think there's no magic formula. It's a history that I think will be -- it takes probably a lot more to recover the share price that we lose or to recover. But I think it's a matter of keep insisting on delivery and be very present and engaged with market. no secrets or magic formulas about that.

Okay. My second question was on to that. Now it targets the BCI sell-down post permit finalization and the recent capital raising post your non roadshow in November last year to Australia, which we met. Both these events have caused deep stress on the share price, as you must know and must understand, as we've said, [ $0.44 ] only last week, do you accept that both these events were poorly executed? When how has not the Board managed BCI sell-down of their manager holding. Why not HFR management and the Board over the past several years knowing that a large shareholder, BCI is the share registry that was knowing that eventually BCI may be selling down or you were in the loop. On the second day, you got the permit millions of millions of shares that put on market and sold down whatever price. Now that's not normal.

Well, that was a bit disappointing. I mean there's no way around it, that was a disappointment. Obviously, we were in touch with BCI, and our understanding is that -- I mean, for not only the benefit of all shareholders, but including BCI themselves. In our mind there was an understanding that this could -- was meant to be managing in a different way, and we were in touch with them to be so. But at the end of the day, well, that is the decision of every shareholder to do what they want with their shares, and they decided to do it the way they did it. And that did not help. Obviously, when we were announcing the license at around that time and during and after to drop the stock the way they did it. But once again, we were in touch with them. We were expecting a different outcome, but it is their decision. It's not much you can do about that.

Do you understand that like you do with roadshow, non-deal roadshow, then you come back and then there's an equity raise $0.62 the average stock was around $0.86 for 12 months because of one seller decided to push your share price down, you did emergency raising. I mean that doesn't put confidence in shareholders' part of the stock when it continues to happen over and over again. You learn from these lessons. And why the directors buying shares on the Board of Directors and his time down of $0.44 among the market where it is. There's no news to that.

Well, on the question of the directors, I don't know if any other directors. I mean want to mention discuss that. But basically, as you can imagine, until recently with the deal of EMR and Tectonic, we've been in a black period, and we've been in a black period for a while. I bought shares a while ago, I think it's [ $100-plus ] thousand myself, and I am very committed with the options that I have to make them so very much aligned with the interest of shareholders. I don't know if anybody else wants to answer on that, but I already bought quite a bit and it has been almost impossible to buy more and we'll be buying more in the future as soon as I have the chance, yes.

Maybe I can just add to that, Ignacio. You had a number of questions, Tim. A number of these we've gone through with you before. But I think it's important to understand in relation to BCI, that organization, which is very much controlled by its controlling shareholder carry stocks in the Seven Group is a very entrepreneurial entity. We speak and have spoken to Brian O'Donnell and Karl Bradshaw, a number of times and offered our assistance in any sell down, we absolutely wanted to control that. And unfortunately, at the end of the day, when you're selling shares Tim, you don't bring us an else what you're doing. So they did either. And that was their right to conduct a sell-down how they conducted it. It was unfortunately the way I did it. It was very disappointing. It happened on the back of the license. If you're a seller and you need as well was probably the optimum time to sell. So really unfortunate, I don't know what else we could have done. We certainly have had -- the executive has been very active in trying to work through that overhang, and we've had conversations with them since -- so we're trying to do everything we can in relation to that. We certainly take your point in relation to the roadshow and the capital raise, and we've discussed that at length. And I don't think we need to go over that again. And look, as Ignacio said, we've been in an extended period of blackout given the relationship, given the discussions we've had and continue to have. So I don't -- and as I said to you in the past, and I know yourself and a number of other investors, take directors buying as a signal of the stock turning whatever. Look, I can tell you now that we're all absolutely motivated. We're all incentivized to get this project to happen. And you can be absolutely sure that you have the commitment of all the directors and the executive to ensure we're ticking all the boxes and taking this thing forward. Katelyn, were there any other questions from the room?

[indiscernible] Thank you all for turning out to the other and Paul. Just several one. Is there any reason why we could update the website to show the top 20 shareholders on a monthly basis?

Yes, we can definitely do that, yes. We can have a look at that monthly.

Okay. Now the second one is, I raise this question every year. The question of options being given to shareholders. I think that the filing within the Board and mining employees 12 years, is that options are a good thing. Now the reason that the board and the -- sorry, the employee regarded as a good team is pretty obvious. And those same reasons apply to shareholders. Now it seems to me that the incentives that were offer to employees and the Board extend to shareholders. What is the barrier in capital raising not to invite shareholders to take up to be issued with options. Thank you.

There's no area there's no variance. And in the capital raise that we did in December, those options were actually offered to shareholders. For the shareholders that were participating in the capital raise and also you effectively.

Olivier the shareholders that were after the options were very selective you. I'm here as a small shareholder I don't believe that was offered the options. Just confirm back for a staff look to get the factor.

That's correct because those shareholders that were committed to invest in the company at the capital of this price were incentivized to invest at that price with an option. So it was -- it wasn't the fact that the options were given to invest to shareholders. It was the fact these went like bonus options or bonus shares that are a thing of the past and used to happen in the '80s and '90s. These were options attached to a share that the shareholder invested in. So if you invested as a sophisticated shareholder through your broker at the placement price, then you would have received an attached option -- so you would have had the chance to participate you had spoken to your broker and arranged to invest in the capital raise of that price.

You were talking here to meeting of shareholders. I think that what needs to be appreciated is to shareholders includes be outside that top 20 shareholders. Then your role on the board is surely to look at the interest of all shareholders interaction, what of those rights or options what have you are a thing of the past, and that's not a reason to say that it can't be implemented in the present. There is no logical reason. The reason it used to be given to me at this meeting was hard to be more in other [indiscernible]. And we act in the interest of shareholders, and because there's additional costs involved in issuing options to a smaller shareholder, and we're actually looking after your interests by reducing our costs of cost of capital raising. Now let me tell you. It is messy, but hey, get your hands dirty, get into the mix for the benefit of the shareholders who have been clearly discriminated against.

But maybe if I can -- so the value of the company is what it is and is what we try to obviously have to increase that value and the perception of that value and get it higher. But if rather than it's simply what we do is to give away in proportionally to everybody extra shares or extra options without changing the fundamental value of the company, I mean that is not really -- I mean that will be reflected in the long run. We would be -- I might be -- might look to some people like we are doing something, but will not -- unless you change the fundamental value of the company, splitting between more shares, the same value of shares plus options, the same value everybody will end up with the same value. So I think this -- in my mind, I mean it's something that hasn't been discussed in detail, but some of these instruments or structures that do not create value simply split it in a different way, are not -- well, by definition, are not adding value to anybody because we are having more share -- number of shares or more options to the same value allocated the same value. Well, the unit value of the share will decrease.

Ignacio, I admire your work, let me make that quite clear. But in this instance, you're pushing the line that the [indiscernible] push triple down economics. What you're saying to me is don't give me a direct option of taking options because it's in your interest going down the track when the big always have all been developed. No, I think what you need to do is recognize that you're not there nearly for those big companies, and it's unreasonable to accept -- to run with the theory that don't worry, sunny, all will come good down the track. Not just like you will get your benefit from options. The Board will get their [ benefit ] from options. The major investors we get their benefits from options, bring it down to the ordinary shareholders. Let me make it clear, I do admire your work, Ignacio.

Thank you. Yes. Thanks, Keith. We've actually got a 1 question online. And Keith, I absolutely appreciate your comments. And what I would also say is that those sophisticated shareholders that took shares in the placement and were granted an option they do have to pay the exercise price upon if the option gets in the money. And so for us, that's worth a substantial amount of money that hopefully, they do exercise that because I think it represents around $9 million if they end up executing it. I think the excise price was around $0.93. So again, they won't give them. It was part of the placement price. But Ignacio, we got a question from Chris Eddington. Chris wants to know if there was any impact from the resignation of the mayors of Sanguesa on the Highfield.

So it's not she really resigned it's that see a bit practically the party has imploded there. I mean, they were -- I think they were putting a bit of -- and that's why it explains to some extent the difficulty of getting this license through. They had some people that wanted to track the process down. Other people that we're keen to see the mine in operations. So I think they found it very hard. But anyway, what happened is that simply they withdraw we had elections this last Sunday. And this party with the mayors included, they didn't put any candidate or anybody into the election. So they are completely gone. And now we have a different -- potentially, let's see what happens. We have a sort of even results between left and right, and it's somebody in the middle that will make the decision, depending which side it goes. But I think maybe what I was trying to illustrate with that point is that the process was not easy. And as a result of that, how difficult they have to be that this party has disappeared from Sanguesa.

Yes, so in summary, Ignacio, just for Chris' benefit, the license has been issued, and it's not like it can be revoked by a change in government.

Sorry, I thought it was really about the majors, but..

Yes, it was, but I think that's probably where he is.

Okay. No the licenses, the license is the respective who did it or who is going to be there or not. So absolutely, it's no, no discussion about that because it was one major and the major is going. And it's -- again, it was not that he resigned is that not her nor anybody in third party and were part of the elections anymore.

Yes. Okay. Great. Thank you. We have one more question from Adam Sheridan, who has asked when will the financing be closed out for Phase 1. So do you want to handle that? I can add to it if need be.

Yes. I mean that was that slide where we show the ticks on the box and the progress -- and we've put ourselves and that is what we have said in the press release that the second half is the beginning of the bulk of the construction. And obviously, that implies that the financing is down there. We see significant progress. What I like to call financial strategics that I think -- as I said, I think the license was a necessary requirement, a lot of these investors were -- well, some -- none of them were prepared to take a permitting risk, but many of them were not prepared even to engage or to spend the time and those that engage probably not to put the best offer on the table. So I think, as I said, important the timing of the deal with EMR and Tectonic to give us a few more months. We don't want to, obviously, with the permitting ready is no point to take longer or absolutely any more time that still necessary. But I think to get the proper deal is worth what to give ourselves a bit of time. So get the strategic and after that, the financial is a lot easier to see how that develops. If we can get a business partner as well. And then let's see, whatever is left, if anything, with the market and close the financing in the second half of the year, but as soon as possible within that second half.

I understand we have another question from the floor, Katelyn.

Thank you. You've got a mine in Spain. You've got a considerable number of personnel, Europeans. You just made a very positive presentation today. I'm just puzzled that you haven't been able to secure a European institutional investors to take the placement, which was done on very attractive terms. In fact, all your capital raising seem to be done on very attractive terms. When we know the share price is selling at a significant discount, but there's just something that doesn't add up with this company. And I can't understand why you have not been able to attract the big European institutions to support you.

With big institutions, in general, European or not, I mean just to be fair, and I think the fact that we are raising interim money, so it's not a -- I mean you can imagine that many of these people, they want to see well the final. Just make sure there's no money left. So it's not as simple to -- I can accept that things can be always better. But bear in mind, some of these big institutions, well, all of them want to be with the last money in place and not to be hanging there waiting for something else. The permitting risk when some of the previous interim risk was before all the permitting risk was gone. So as well, that was tricky for some of these big institutions compared to some of the not so big ones. Now in the case of European, we got in the one at the end of 2022, we got a few joining and adding -- putting money into that race. And well, the main reason why it's been more in Australia is because traditionally, the company has been a lot more present in Australia, and most of the effort has been taking place in Australia. We started to do, as I said, for the last interim race there were a few Europeans. I think as the company starts to approach construction and going forward more and more. But for the big institutions, I think, is only logical and nothing especially in our case that they will like to be the last ones to put the money in and see the permitting done. Even if they do at a higher price, that is the way they think but with the permitting done, a strategic investor clear and just to be -- to know that this is the last money to do get into the construction of the first phase.

Yes, it's a good question, Jeff. Thanks very much. It's frustrating for all, and I think Ignacio's hit the nail on the head. They all want to be the last money in. And Olivier has done a great job actually marketing to some of our international investors and there's certainly some wind up hopefully for any capital raise that happens once our final project financing is secured. So that's a good question. I don't have any further questions, Katelyn, online. Is there anything else from the floor?

And the surplus of this, and I congratulate everything you discussed with me. Back in January, I congratulated it's sold now completed. My question has to do with the future, particularly the marketing of the company to establish a high profile for the company, notwithstanding in this market, but perhaps the London market. But I think there should be a major marketing plan which involves the physical presence of [indiscernible] from Spain to come here and make active calls on brokers, small institutional investors and so on -- it may take the month that some is trying to come out here to cover the country. But I think if you put this presentation in front of hundreds of brokers throughout Australia and perhaps also in London where people do invest in the mine, I think we can move forward as with the company, and it will assist in driving the share price up. I mean none of us like to see shares diluted -- and I mean the other thing too with my compatriot over here. And we've been offering shares and we were not offered shares in that large capital right which I believe rose about $13 million and wrote down the value of the company by $100 million, I would gladly purchase additional shares, but we will not offer and neither will any of the other small shareholders who then something around it. And a lot of the people have had the patience to stay with HFR, and we've only made 5 years versus 10 years during [indiscernible]. Yes we are. But we've been at 5, 6 years. And I think we've got to be considered. We don't like dilution, no shareholder likes dilution. But I think put the past behind it, you're where you want to be and you please consider a marketing plan with a physical presence? And also, the other thing, we've never seen HFR attend to my knowledge, other mining conferences that take place here in Australia. We got Nusa, Western Australia, where we have the very significant mining conferences that take place. And in at those conferences, you can present to thousands. But this has not been done yet. And so I ask that perhaps [indiscernible] to say maybe you don't make as wife and children but go with them, but here for a month put it. Okay. Thank you.

I mean as you can imagine, there is a lot of thinking behind the marketing and the IR. I take your point, you do that in a month. And potentially, yes, you are right, the presale price goes up and then the following month. What happens the following month. You have to keep doing exactly the same to keep exactly the same place. So I mean we do it 1 month, maybe some people can sell it at a higher price -- so once you start on that promotion, I mean, obviously, the effort and we are looking at European, Australian. I was a couple of weeks ago, for example, I was in Barcelona, something where there is this Bank of America, we are not invited. It's still the size of our company doesn't merit that. But obviously, in Barcelona was relatively simple for me. Not only I show many Australian investors, but also other Canadian companies that were based there. So we try to run this in a smart way to -- within well, similar to everything, hopefully, that we do with minimum resources, cash and time, get the maximum impact, but also something that makes sense in the long run and not sort of something very -- that is not sustainable unless you keep talking to, well, thousands of people every month and dedicate your job to do that. So point taken all a lot of discussions about IR marketing together here with Olivier always looking at more opportunities will be easier now that we -- I mean, the next few months are going to have a special dedication to that. But especially as we get to the final financing and -- but okay, we need to be realistic that is not the fundamental value of the company is that we have to make sure that materialize as the key driver, aside from the promotion and the marketing that is also important.

Sorry about that. Katelyn, thanks very much for questions. It was a good one. Is there anything further there from the room?

No further questions on the floor.

All right. There's nothing else online. Again, thank you all for attending. We know it has been a challenging year, and there's certainly some frustration with everyone around the share price. But I also note that the executive has absolutely delivered on the key milestones and there's been many long suffering shareholders that have been in this stock for a long time waiting for these licenses to be issued and they now have. So it's now encompassed on the company to now get the financing and get the project built. So appreciate all the support. Sorry, I couldn't be there with you today, and we look forward to, hopefully, another year, and we'll see you there next year, hopefully, with a lot larger capitalization than we are today. So thanks very much for your attendance. And thanks for everybody online.

Thank you.

Thank you very much.