KEFI Gold and Copper Plc (KEFI) Earnings Call Transcript & Summary

Good afternoon, and welcome to the KEFI Gold and Copper plc investor presentation. [Operator Instructions]. The company may not be in a position to answer every question received in the meeting itself. However the company can review your questions today and publish responses where it's appropriate to do so. Before we begin, I'd like to submit the following poll. But I'd now like to hand you to Aristidis Anagnostaras-Adams. Good afternoon, sir.

Good afternoon, and thank you for everyone who's joined. I'm aware that there are some shareholders as well as some non shareholders participating. So if I do touch on anything that some of you already know, please forgive me. That is for the benefit of people who might be new. Those who have followed us know, by the way, I should apologize for my cracky voice, having a sip of water. Occasionally, I think I've COVID one too many times and there's, there's a little crack in my throat. I just can't shake off anyhow. We focused on the Arabian-Nubian Shield since 2008, and I've heard about the Arabian-Nubian Shield since I was in my 20s, a long time ago because of its similarities in geology where most of the gold and other minerals come from in Australia and Canada, but it's under exploitation in a modern sense. So despite ancient mining, they're going back thousands of years, the modern industry is only just waking up or being allowed to engage probably more the point. Anyhow, we've been there 15 years. And in that 15 years, we've, it'd be fair to say we've suffered many frustrations. Learnt many lessons. But over the last 2 years, things have turned for the better. And we are one of the people, if you like, at the forefront of the industry and the 2 countries refocused on Saudi Arabia and Ethiopia who have joint ventures in each. One with a very large family office globally leading family office and in Ethiopia with the government. Now, when we first arrived, there were a few outside foreign companies engaging. And this image gives you an impression of some of the better-known companies that have engaged, including world's two largest gold producers and many other very well-known companies and explorers and producers. For example, of note in particular for Ethiopia is that the largest mining IPA for a good decade. I think globally, but certainly in North America, was that of Allied Gold a few months ago, which raised $260 million to put into its Ethiopian project. And perhaps the most high profile companies that are engaged in the region now would be Newmont and Barrick. And indeed, I can see we don't even have on the list, perhaps one of the most prolific explorers in the world and that's [ the Ivana group ], which have now come in to Saudi Arabia. A corporate snapshot, I won't go over all these details now so we can, so not waste time getting to questions. But we have, as a company, a beneficial interest in about a bit over 1 million ounces in each country. The first cab off the rank for development, is the high-grade Tulu Kapi gold mine over 2-gram open pit and 5-gram underground. Very conventional project very conventional processing plant. And I'll elaborate on that a little bit later. Some of the projections summarized on this slide are particularly important, because it's just that first project, the majority and Tulu Kapi project, which is in the midst of its financing now for launch will generate based on the signed off numbers and consensus forecast, gold price of about $1,800 per ounce. We generate about $50 million -- GBP 50 million, GBP 54 million per annum. KEFI's account net after everything, which obviously is more than our market cap today. That's just a very simple, if you like, highlight of the sort of returns we're pursuing from these projects. That's just the Tulu Kapi project. In NPV sense, it represents today a bit over 3 pence per KEFI share, which is, what is that 5x share price, something like that, 4x or 5x the share price. Without even looking at our projects in Saudi Arabia, where we have a very, almost the same endowment as a beneficial interest with two projects coming along behind Ethiopia for development. I won't go through the details here, but Tulu Kapi i've mentioned and Ethiopia and [indiscernible] in Saudi Arabia, our 2 discoveries. The Gold Jibal Qutman and the copper gold Hawiah coming along behind between them in aggregate, much bigger than Tulu Kapi already and still growing, so to speak, through drilling. But also because we only own a minority stake in them the beneficial interest to KEFI is about the same as that in Tulu Kapi. And growth pipeline in both countries. Now very difficult to convey in words in talking like this the different sentiment that applies today compared to any time that I've been personally coming to the region regularly, monthly, if not more often over the last decade, myself. The excitement, the momentum-driven commitments to launch projects, finance projects, build an industry is palpable today in both countries. You would only need to visit meet a few people over the course of the day and you'd feel it. That's never been the case in my experience before changes of law, inviting investors and companies to engage any number of things I could quote. So in many respects, we've learned from experience, we've learned it the hard way that one can make discoveries, one can make acquisitions, one can make plans. But unless the environment is conducive to get going, extremely difficult no matter what people intend, no matter what goodwill is towards you extremely difficult until the general environment turns to the positive, which it has done over the last 2 years and last year in particular. So we have 3 development projects in the queue. One majority owned, 2 minority owned in Saudi, and a pipeline of exploration coming along behind them, a fairly healthy book, so to speak. And with the wind, the wind at our back for the first time. Now a company that starts very small as an explorer, we started as a 2 million-pound AIM Explorer to have, if you like, global credibility to attract major international investors, contractors, government as partner, leading family offices as partner. It needs to do things in an exemplary fashion with independent sign-offs because albeit that the individuals within the company might have had any number of years of experience here, there and everywhere. The company itself hasn't. It started as an explorer and it's discovered projects and now we're developing projects. So we make a point of independence, sign-offs on the way through from global brand names for each discipline. Now all that little step function going up from the bottom left to the top right, that's all being done. And what is being done now at Tulu Kapi, has been followed for years is security. For [indiscernible], we've had them tagging us. I think since 2015 or '16, and that's really the only sort of worrisome issue we have, albeit that it's come way down and in importance and a concern as the country settled down and things are moving now. But everything else being signed off and the only thing you have to sign off is just to witness that we prepare the community and start making arrangements all safe and sound and everything is moving and flowing so that the independent experts can give a big tick to that as well. And that will happen month-to-month over the next few months. Milestones achieved last year. I won't go through them to waste your time at this forum. But the bottom line is that we're extremely busy ticking boxes, the different boxes to tick off. It sounds a bit flippant to say that. Hell of a lot of work went into each box, and the major conditions precedent to launching the project were all satisfied. I'll come to what we have to do now in a moment. But basically, we took everything from nothing yet being approved, everything needed to be updated, needing to be updated, some laws needing to be changed, particularly with foreign exchange controls. All those things being done and the lead bank approving Final Credit Committee approval by the end of last year. That was really the marker for us to move into launch mode. As I said, I come to the 2024 task list shortly. Over in Saudi Arabia, we're really up to our next in two feasibility studies on two development projects, two of the discoveries of the companies of our company. And an excellent team, a highly driven group of professionals working through those studies through the myriad of issues under each topic to prepare each of them for commitment for development. Comparative valuation benchmarks, any which way you look at it well, first of all, let me say that other than the bottom right-hand corner graph, the relative value measures against analog companies. So the first thing I would say is that the actual analyst who does this work pointed out that since 2 years ago, when we asked that firm to do this sort of work and other industry research for us, the number of benchmarks in Africa of analog companies has halved from roughly 25 to about half today. That's because there's been a consolidation of the industry with takeovers of smaller companies by the majors What that means is that to me, at least, the majors are moving in big time. And as the difficulty of the stock markets in the last few years has made it very difficult for juniors to raise the capital for development that have been taken over, to achieve that through the balance sheets of majors. That's my interpretation. Anyhow, be that as it may, where we stand today, you can see is a very low price compared to benchmarks, comparatives. And as we derisk and move forward, we will climb those curves. The bottom right-hand slide is just the grade of the principal deposit compared to the rest, showing you that we're relatively high grade. I'm sorry, this looks a bit busy, but if we were funding everything from the stock market, there would be 1 box on that chart, and that will be the KEFI box ,box presented shareholders, 2 boxes. And because we're effectively doing all our financing in subsidiaries with the minimum of exceptions, it gets all complicated down below with partners and bankers and mezzanine finances and so on. And in terms of how I put it stakeholder responsibility. The company has obviously its fiduciary responsibility to its shareholders, and indeed, to the other parties from who most of the money is coming. We have a deep and seriously taken responsibility to our partners who rely on us as a technical partner to our bankers, albeit that they might be putting the loans into subsidiaries, they do look to the technical partner to be accountable to provide human and capital resources as required. To mezzanine and other finances down below. Once again, Ironically, there's more capital available down in Ethiopia and perhaps not so ironically also down in Saudi Arabia, then there is in the stock market for mining. However, only as long as we honor our responsibilities to all these stakeholders. I only say that because it's sometimes a little bit difficult to understand the pace and language of our reporting, and I only highlight it because we have to be and be seen to be good fiduciaries for all the stakeholders particularly when the ones who are not in the public share register are putting up most of the capital. Milestones ahead. This is a bit more important, and I'll dwell on a couple of points here. So having had final credit committee approval of the lead bank on the Tulu Kapi project and the lead equity investors there as well. Equivalent approval there, the other syndicate members are going through their approval processes. That was sort of like a trigger, if you like, not so much that everyone piggybacks on one person or one party's approval. But obviously, unless the leads approved, not much point the rest of them during their approval process. That has happened, and we're now into that. That also allowed us to trigger engagement with the local authorities and the local community to lay out the plans for resettlement. It doesn't mean the resettlement will be executed before financial close. It just means that we have to make sure that everyone agrees and it's compulsory resettlement. It's not a discussion in that sense, but it is a discussion in the sense of consultation to ensure it's done fairly properly completely transparently and in compliance with the highest world of standards. Satisfaction of conditions precedent. The key is to keep an eye on our security, any other things that are close to the heart of anyone making hundreds of millions of dollars of commitments or is syndicate doing so, the insurances and obviously, the insurers [indiscernible] and have to do their own assessments and due diligence in there, good form. And then all the what you call legal formal satisfaction of title, confirmations, perfection of security and so on. In a country like Ethiopia, which, for which this is the first such transaction ever, an internationally syndicated project finance, where laws have had to be changed to accommodate it. From the Federal down to regional down through Zonal. I suppose we've learned to experience that changing government system has taken more time than we had hoped. But having done all that, really, the ticking off of compliance, having done the changes of law hopefully now is fairly straightforward. And certainly, the appetite and desire is there amongst the authorities to do that. finalization of definitive documentation, most of it's very advanced drafting, by putting 12 different counterparties down and making sure that they're all their respective lawyers sign off, I would never underestimate the challenge of that. But all of these tasks that I've just outlined scheduled out over the next few months. And then we move into closing and drawdown. I'm just calling public meetings and so on to approve anything that needs to be approved, obviously, takes 1 month or 2. But basically, you're looking at a few months between those 3 sets of tasks above and then a month or 2 of closing procedures with different people who have to call different types of meetings to put in their capital. In the second half of the year, procurement, community resettlement construction to be launched. And at the same time, we'd like to get going again on our exploration, both in the district and elsewhere. The government has given us informal assurance that our proximal licenses will be properly registered for us to restart the exploration that we had already begun for the good of the community, for the good of the project, for the good of all stakeholders. And we are, I suppose, whilst Ethiopia has yet to fully get cracking to the mining sector. We're doing some other work around the country, putting our foot on a few other things opportunistically. In Saudi Arabia, the work on Jibal Qutman is extremely intense. Lots of debating, lots of pressure internally. Resolving which way to take it, how big to build it before we trigger and all that sort of stuff, highly advanced feasibility work, leading to the sort of pressure cooker that we're blessed to have, to be honest. Having made a discovery, having had excellent team doing all the work to get it to a stage where it warrants the pressure cooker, of debate about when to trigger the development. And I think by the middle of the year, that should be quite clear on Jibal Qutman. That's my prognosis. Hawiah is coming along behind thats' a more complex project with underground development as well with polymetallic. So therefore, more complex metallurgical processes and it has to be given some more time, perhaps a year behind today's pressure cooker Jibal Qutman. Regional exploration well, you would be quite astounded to hear the ground holdings that a couple of major explorers, global explorers have grabbed recently, but they've just landed in the country and tried to throw a blanket with government support or anything they could, what would have been there 15 years building a proprietary database, cherry picking what we wanted to go after and the made 2 discoveries. So it's no, it should be no surprise to you to learn that you couldn't get into our conference booth in the conference last week called Future Minerals Forum, where Golden Minerals joint venture company had a booth, you couldn't get into it. It was so jampacked of people wanting to get in there wanting to talk about whether they could get involved with us. We are at the head of the pack, and we really want to take advantage of that and grow as fast as possible. Board of Directors, I won't go through them all now at the head of a major African Mining Bank; Mark Tyler, Former Head that is of the Mining division. Richard Robinson Former Operational Head of Goldfields, Alistair Clark, Former Managing Director, Environmental and Social for the European Bank of Development. Myself and John have worked together for the best part of 30 years and developed many projects across a number of commodities. I think it's a reasonable board for this juncture. We duly stand down every year for reelection. I've noticed that we've been reelected each time with 95% plus, which I suppose means shareholders think we're doing not too bad a job despite the difficulties and disappointments of getting to this stage in these countries. But the Board will be refreshed. There'll be younger people. There'll be people qualified better for the next stage. There will be people from the regions. The Board will refresh itself, continue to refresh itself regularly as we move forward. The Executive Committee in KEFI has grown, perhaps, I haven't made much of a song and dance about it. But, some very important appointments have been made. Eddie has been organizational developing in mining companies for decades for many majors and some juniors. Rob has been overseeing project studies for the likes of large consulting firms and BHP as well as my predecessor companies. Norman Green has his own or had his own, he's retired, he only works in situations which to him are worth the effort, where it's interesting and he can add value, but he's a bit of a rock star in the game of building projects for the mining sector. He's quite a mentor for our people. David used to be MD of [ Billiton ], is basically waiting for us to start operational readiness and operations so they can make a contribution. I'll stop there. I'm not sure how long I took your [indiscernible], but let's turn to the questions, please.

Perfect. Harry. Thank you very much for your presentation. Ladies and gentleman please do continue to submit your questions just by using the Q&A tab, which is situated on the top right hand corner of your screen. Harry, we could receive a number of presubmitted questions. I thought I'd start with those. The first one read as follows. What is the probabilities of funding being acquired for one of the assets in SA in 2024, especially when you voiced how much easy this route is to Ethiopia? Although it seems to be taking in the same time frame? And unless you keep saying that you wanted to be fast tracked and so keen to invest in what is going wrong?

Nothing is going wrong. I think if I gave the impression that you could make a discovery, get access, we only got access to Jibal Qutman, I suppose, what we're referring to because it's the first cap in the rank for development. When we got access to the site, 13 months ago after a 7-year absence for regulatory reasons. So if anyone, if I gave the impression to anybody that within 13 months, we have drilled out the deposit, completed the DFS, done the financing and started construction and I apologize. That's simply completely unrealistic. And I don't believe I would have given that guidance because it would have been wrong. The rest of the question is very pertinent. And that is, is finance relatively easy? Yes. The country is very wealthy. The sovereign fund has been mandated, instructed to prioritize mining, and we're very close to the Saudi Industrial Development Fund, they've been to our sites and are looking forward to receiving submissions. We haven't triggered those submissions because we're not ready to. But yes, I think if one looks at the RNS we put out only today, you'd see an outline in some narrative of the lines we're thinking along. And essentially, for KEFI instead of, I mean, the combined Jibal Qutman, Hawiah developments between them might be $500 million, $600 million. So how does KEFI spend $500 million or $600 million shareholders want us to develop, but the market has been weak. And obviously, KEFI would not be provided with $500 million or $600 million to develop these projects. So how do we do it? Well, we've accepted that will be a minority with a strong partner. That's a big step. We, we work very hard to maintain our relationship and mutual respect and support of the lending institution that I mentioned. And on top of that, there's been a what I can only describe as a bit of a wave of interest for people who want to deploy into Saudi Arabia. We may not do anything with any of them. But it's there in a shape and a form and a quantity that I've never seen before in any country. And we have the opportunity here as KEFI to participate in these ventures, as long as we maintain doing a good job for the balance of all our stakeholders. We have the opportunity to put up a pretty small component of the total finance package. If you just work the numbers through, and I encourage you to look at today's RNS, which sort of sets it out step by step. No, what I said before about Saudi is simple plain truth. But if I gave you the impression that in 13 months, [indiscernible] one thing over and doing construction, that's not perfect.

Perfect. Harry. Next question here. What is the state of the [indiscernible], which were taken from KEFI?

I touched on that during the PowerPoint roll through that, we believe that we'll get them back. We have -- we are prepared to take administrative action, legal action if we need to, but we don't think that will be necessary.

Perfect. When does Saudi need to be financed and how will KEFI's funds be raised?

That question, I just touched on or I suppose just to elaborate a bit further, but I do encourage you to read the RNS today's is that, just if you walk through the sequencing in the RNS, you have to have a bankable project, number one, which means studies to a bankable standard with independent sign-offs and so on and so forth. Let's say, 75% project financing debt, leaving 25% for equity. Of that equity portion, partners, 75-25%, ARTAR 75% KEFI 25%, would be the rest or they can have a look at the other alternatives on offer if they choose to take any of them, such as mezzanine finance or anything else. But we haven't got anywhere near that yet. There's no need to do that yet. And they are just opportunities for us to evaluate as we move forward. So I think that should make sense.

Perfect. What's the status of the SIDF application in Saudi?

That's, I say we haven't formally applied until we finish the DFS and all those sign-offs but we stay very close. I mean, I don't have much to do with the day-to-day in Saudi but actually bumped into the SIDF twice in meetings with our company in the last few days in Riyadh. So we obviously have a very close dialogue and we're keeping a close eye on us. And I think it's all going well, but it's premature to actually lodge the formal application.

Perfect. I think you have touched on this, but can you explain in simple terms what further steps are now required to get full project financing?

As for as it means for Ethiopia, Tulu Kapi Well, I think I did go through that in the slide show. We've got three concurrent sets of jobs going on, preparing the community, going through all the conditions present like insurances and title and security sign-off, as I said, is the key. And the legal documents to be finished from the 90%, 97% status, depending which agreement you look at to the funnel, ready to execute a document. Yes. So I think the only comment I'd make to add to that is because it must seem pretty long winded to anybody is and without drilling on the fact that the country had a civil war a few years ago, that's all history. And just Ethiopia was a top 10 growth country for 20 years running until it had those problems. And I absolutely guarantee you, I'd be staggered if it wasn't in the top 10 growth countries in the world, again, within the next 2 years because it really is determined to and it actually has to repair its economy. So we're on the rebound, if you like, in Ethiopia. And in fact, the aftershocks of those conflicts are still settling down, but they are purely aftershocks to be frank. We've had a camp out there. This company has had a camp out there, I think, for 18 years since the first discovery [indiscernible]. This is before KEFI got involved. And I mean we've never had an employee punched or whatever. You think our people were being large and every day if you read some of the news. But we have people working out to every day and no one's ever been punched or anything like that over 18 years. But mobilizing hundreds of people and hundreds of millions of dollars requires first-tier disciplined systems rigor, and that's what we're installing around this to make it water tight for everybody. So I don't, and I think people should get discouraged by the constant references to security by a company. We're just being honest. If this wasn't a front market, if this has been in Australia, we'd be probably rehabilitating a closedown site by now that has finished its production. But it's not. It's the first development of this nature ever. And the first development of a major mine for over 30 years. So being the first mover brings us challenges, let's say. So we're doing things with great discipline, but I don't think it's our [indiscernible] view, if you like, that we keep referring to these things because we're just being honest. Thank you.

Perfect. That's great. Can you guarantee that no money will ever need to be raised and [indiscernible] to develop any of the projects?

Superficially, with respect, it's a silly question. I'm not aware that anyone should invest in a preproduction company expecting never to have to give it any money to do anything. But I will understand the sentiment, and I respect the sentiment, the sentiment is this sector has been in the doldrums for a long, long time since 2011, I believe. The index for this sector has gone down from 200 plus to minus something, I believe. And our stock has done almost as bad. And at the same time, we've been traversing geopolitical turbulence and frustration. And yet we have all this upside and shareholders appear to fear anyone raising money more than busting for the upside, if I can put it that way. So it's a risk-off market. I suppose in a one liner, in a risk-on market, people will be looking at our GBP 54 million a year cash flow to our share from Tulu Kapi in [indiscernible] look at that, it's even, it's more than the market cap is today, and it doesn't even put anything onto the Saudi assets. This is a screaming buy, if it was a risk on market. So I can understand that frustration, and without making light of it, I do challenge anyone to find a company that has a mass financial support from other parties for our shareholders from banks, partners and others. I don't know of any. Now we have to close these deals as for you to see it in reality. But all these parties are not doing their work with a view to closing on some sort of [indiscernible], they want to get on with it and make money. These development banks in Tulu Kapi have been working with us for 5 years. They went through the troubles of the country. They stayed with us. They want to do this. Instead you have to help develop the country and where we should be, I suppose, when we close, we should be honored that they backed us and our shareholders. So I'd like to turn the question on its head and say we are raising nearly everything from other parties, and therefore, we have a duty to those other parties, to protect everybody, our shareholders as well as the people putting all that capital together. I haven't said too much like i say on the soapbox, but it's important to stand back and see what we're trying to do. And I mean if you don't feel comfortable, it is a difficult high-risk, high return game. And one should always stay in their comfort zone, strongly recommend that, that it would be ridiculous for a preproduction company to make a guarantee that it will never raise money from shareholders.

Perfect. What's the current cash burn rate in Tulu Kapi on one hand and Saudi Arabia on the other?

Well, in Saudi, in our announcement today in anticipation of this type of question, we made it clear that, in effect, we're being carried in terms of cash burn as a major partner. There are various quick pro [indiscernible] which we described, and it's all for the greater good. But there, the cash burn today is 0, not forever, but for the moment and for the foreseeable future, as we put these things together. And in terms of Tulu Kapi it's GBP 200,000 or something like that per month. we have facilities. We've used them before. We're up at about over GBP 1 million. I think, drawn as we speak, some of there's capacity there to carriers. So that's what we're doing. We're blessed. We're blessed. We really are, and all shareholders should know that some particular shareholders are particularly supportive and provided [fences] as working capital on the way through because they believe in us, and they back us and support us, we pay some interest, but they deserve it. And that's what we're doing to do what we're doing.

Perfect. The next question here, Ethiopia seems you're running into another military confrontation. There's been serious developments emerging between Ethiopia and Somalia, as this development has a barrel on the overall security situation. Please can you comment on how KEFI and the government plans to develop Tulu Kapi into a mine while security forces have to deal with issues on multiple fronts at once?

I think it's stretching along [indiscernible] to link negotiations with Somalian land to have access to the Red Sea with security around the side of Tulu Kapi. There's no real direct connection. There's the security we need at Tulu Kapi will have private security, we have people working every day today in the camp. And going forward, when it's a fully established camp with facilities in construction production. So there will be a private security force inside the mining license area unarmed won't need to be armed, and there will be regional police and security and federal more broadly at and about in the region. And it's not, it's sort of built embracing it, but it's not like there's a tax or anything like that on us. And even none of the actors, none of the conflicting parties in Ethiopia have ever attacked us quite the contrary, it's evident in their behavior. Seeing is believing that one of them on this project to go forward because the community wants it to go for. And if the community wants something, nobody stands in the way, ultimately, of the community. I know it sounds a bit ridiculous to say that to some, but it is the truth that the community ultimately will command the authority. However, who does what to anybody. And if we're, we maintain our goodwill. We've built a school. We've water supply. We've been transparent with any number of things we've done, we're good guys, and nobody wants to hurt us. I wouldn't worry too much about the Somali Land negotiations have report on the Red Sea.

Perfect. What will the KEFI Board do to increase its alignment with shareholders?

Well, that's a good question. At the end of this webinar, I know the organizers usually conduct a poll and ask for suggestions. So I'd really like to see some suggestions. We have a. Obviously, we comply with the law with regulatory announcements, and we comply with a law with stepping down from the Board regularly and putting ourselves up for reelection if shareholders want. We have webinized, there's no law about having to have a webinar and answer questions. Please tell us what else we can do that you think we should do. We spend a lot of time managing stakeholder relationships that you don't see because most of the money is coming from other stakeholders. So we, I'd be talking to the lead banker like at least 3 times a week. For example, now a lead banker who's organizing $190 million loan package, you'd have to say should get a higher priority of time allocation of an Executive Chairman than a small shareholder. I'm not being disrespectful. I'm just, obviously, that's the case. So we spent an enormous amount of time on stakeholder management. But if there's something we can do to improve shareholder relations or alignment, we take it very seriously, and we welcome any suggestions.

Perfect. Just turning to the next question. How long will moving people living around Tulu Kapi take?

Well, it's a 90-day statutory period. You only start the statutory period on financial close when the money hits the bank account, so to speak. You issue the notices and the people have 90 days. Now we might have them ready to do it a bit quicker, but that's the statutory period. But the 24-month schedule has that 3-month schedule built into it, if you like. And what we're doing now is making sure they're ready to receive that notice. We don't want to be accused ever of walking up to a household and handing them a notice, without them knowing exactly what's going to happen, where they're going and all that sort of stuff. So what we're doing now is preparing them to receive such a notice. And it's a 90-day statutory period.

Perfect. Please comment on recent tantalum exploration applications by KEFI in Ethiopia and the strategy?

Well, I think it's open, what you call it. the website of the Ministry of Mines is open to see who has registered applications and other things, and one can see that we've done that. It's not that we're about to go to the lithium business, to be honest. But in the world of looking around at a country that's way underexplored. Only 25% of the country has been mapped and nothing in the modern sense [ indiscernible] geologically. And because of the trouble over the last few years, the industry has been in disarray, and it's understanding to mention that now. So we basically, we've had a team in place, which does the country extremely well and have been doing quite a bit of research and pegging been talking to provide more opportunities for shareholders in the long term or more opportunities to form joint ventures with others in the longer term. That particular initiative. That's the question I asked is a property along strike of an existing operation where there's some corporate miss there. There's litigation, and we just picked a clean 100% of the same geology along strike. And we wish our neighbors the best. We want them to get cracking, get going. And then what we'll do is, as everybody knows, the battery metals industry is booming. We look at introducing more people into the market in Ethiopia who are specialists to follow suit on our property. In the meantime, we can shape it up geologically. So a bit of opportunism, sort of while the cats away type of thing. The rest of the world is looking elsewhere we're repositioning ourselves for the surge in Ethiopia as we have been in Saudi Arabia.

Perfect. Does the community resettlement needs to be completed before the definitive documentation can be signed? And if not, what stage of the resettlement must be reached before definitive document, documentation can be signed? And when is this likely to be achieved a few parts to that?

No, they're not connected. They are not connected. And the estimate of the compensation is part of our documentation, but the implementation of the settlements, not to do with the documentation. So we'd be signing documentation, triggering drawdowns and then triggering resettlement.