Verde AgriTech Limited (NPK) Earnings Call Transcript & Summary

Yes. Hi, everyone. Welcome to another results call. It's a great pleasure to be talking to you today. If you are watching live, thanks for your interest. Thanks for dedicating your time to listen to the presentation. I look forward to answering several questions. If you're watching it on YouTube, thank you as well for your interest. Please make sure you click on that Like button, please share the video. That's how you tell YouTube that you've like the content. That's how you can help YouTube to show this content to other people like you who might be interested in what Verde AgriTech is doing. We are certainly very excited about everything going on and extraordinarily excited about the years to come. As we begin, I would like to remind you that our presentation contains forward-looking statements. We have a set of disclaimers here. I strongly recommend you to read in detail. And the first part of the presentation, I'm going to be talking a little bit about the market, what's going on. Then Felipe is going to address the financials, is going to be looking at the numbers, some of the results. And then at the end, I'm going to come back to talk to you and answer any questions. I am sure a lot of you have already been buying our Super Greensand product available on Amazon. There is a 5% discount coupon. If you're watching this video, please share with other people who might equally be interested in testing I guess there aren't many natural resource companies. You can go and test the product yourself and see the benefits in your own home. The market overview for potash for fertilizers is very different to what it was last year when we had record prices, when we had potential constraints, we are seeing the opposite this year. We are seeing a lot of supply, a lot of Russian potash, Belarusian potash hitting the market, and we are seeing a pressure downwards in terms of price. If you're a farmer in Brazil and you're looking at the prices for fertilizers, essentially every week, you've been checking the price for the last few months you had a lower price. So from a psychological point of view, as a farmer, you start asking yourself whether you should buy now or if you should carry on waiting with the expectation that the trend continues and price continue going down. What we're also seeing is illustrated in the next slide. As a farmer, we have seen prices for soybeans collapsing from -- not just from what it was last year. But the same way as price for fertilizer is coming down, you're seeing the price of what you sell getting discounted every day. So again, as a farmer, you carry on trying to hang on to your grains if you have working capital to support that, and unfortunately, so far, the longer a farmer has waited, the lower the price became -- we're not sure you're on this slide, but unfortunately, the graph for corn, this is also -- is also very negative prices for corn in Brazil have been deteriorating, having been coming down very fast. In a situation like that, I'd like to remember a very interesting conversation I had with a very successful Brazilian farmer a couple of years ago. And he told me, when you look at farm, when you look at farming, when you look at -- you need to think long term. So as a farmer, you should never just be looking at the results of one agricultural cycle, we should be looking at it over several years. And when you look at that over several years as a farmer, you should most certainly expect to have some years where you're going to have a loss. The loss might be because to adverse climate, the loss might be caused by a collapse in the price of grains. The loss might be caused by crop diseases, pests. But -- as a farmer, you should always be looking in the long term, you should always be looking at activity over several years. And it is over several years that when you compensate the years you have the loss, the years had the big profit. Overall, you're going to have -- you're going to be making money and this came from a very successful farmer in Brazil. And I think in a time like that, this is what we've been trying to remind our customers. That's all we've been talking to them, and that's how we've also been talking to some of our investors about how cyclical agriculture is and how we need to be look it over several years. Next slide, Felipe. I will stop here then, and I will allow Felipe to carry on with the financial aspects. And at the end of the presentation, I look forward to answering your questions.

Thank you, Cristiano. Thank you, everyone, for joining the conference. First chart that we have will explain a bit about our economic scenario -- current economic scenario in Brazil. We have, in the first graph, Brazilian real against U.S. dollars. You can see that up to March, the Brazilian Real got evaluated against the same period of last year. And the Brazilian real was also even stronger in the last couple of weeks, being below BRL 5 per dollar, which is -- has not happened for the last maybe 1 year, and now it seems to be more stable around BRL 5 per U.S. dollar and marketing expectations for the year end is to have the Brazilian real at BRL 5.2 per dollar. So it seems that we will not have a lot of fluctuation on this exchange rate, which is good for our business and good for cost control for potash price that arise in Brazil. So it's better for everyone as far as stable it gets. In the next chart, a bit on the -- on SELIC rate with the Central Bank in a rate that generates normally the loans and the banks use to charge companies like Verde and other ones, other ones that we have. So currently, we are at 13.75% per year. And what we can see here is that the expectation that we have is to have a big decrease on this rate from year-end at 12.50% going to 2024 at 10% and arriving less than 9% in 2 or 3 years. What is important to mention here is like considering the current rate, SELIC rate, our expenses on interest are between CAD 4 million and CAD 4.5 million. And also just to have a sensitive, an idea, each 1% which means from 13.75% to, for example, 12.75% on SELIC rate, we would expect a reduction beyond 300,000 interest expense in 1 year. So the third one on the economic scenario is related to inflation as well. We saw in the past few years, not only in Brazil, but all over the world, the increase in the inflation we saw in Brazil between 12% to 13% in 1 year inflation rate. Now it has decreased significantly. It seems that the cycle on high interest rates might be getting close to the end since the inflation seems to be controlled. The expectation now is to close this year at between 5.5% to 5.8%. And then from 2024 onwards, maybe even lower on around 4% per year. Beginning our Q1 2023 highlights. The first -- on the left side you can see on cash. We decreased the cash from investment activities by 44% to $1.9 million against $3.4 million last year. This is basically explained by the lower level of investments we are doing, it was already expected cash and other receivables held by the company awarded in March 31, $34.3 million compared to $22 million last year. And then $4.8 million in Q1 2021. So it demonstrates also the big level of increase, if it was compared 2021 against 2023. And also the third one. The total loans, our CapEx to working capital at the end of the quarter, it was $45.4 million. We have more details on this later in this presentation. On profitability, sales by volume were 108,000 tonnes in Q1 2023 compared to 112,000 tonnes, which is like 2% to 3% decrease, then it's quite similar year-on-year. And revenue also had the same trend. The total revenue was $11.1 million in Q1 2023 against to $11.3 million in Q1 last year. So the gross margin, saying that we had a 1% decrease from 75 -- 77% to 76%. And I will show also later on that it excludes freight on this, the reduction would be a bit higher, and that will explain also why -- but I should know that that's basically driven by the [indiscernible] price reduction. And the EBITDA before non-cash events in Q1 2023 was $2 million compared to $3.7 million last year and less than $1 million in 2021. Remember here that also it's disclosure that EBITDA excludes also noncash events, such, for example, depreciation on costs. Net loss in Q1 2023 was $0.1 million compared to $3 million of profitability last year and $1 million loss in 2021. The total noncurrent assets of the company were $68.3 million compared to $30 million in 2022. So it's an increase of over $38 million. So it shows and demonstrates where we are located, most of the profits and loans that we've made during 2022. And on operations side, there is no change in capacity production for 2022 -- from 2022 to 2023, the year-end, we remain at 3 million tonnes per year of capacity in both sectors together. On financial statements, we have here from revenue up to net profit. We can see a few numbers that I said before related to revenue, production cost and growth margin. Important also to highlight their sales and marketing expenses, which we had an increase. Product freight expenses, it's quite significant as well, where we do have a [ charge ] to explain a bit more on this. Also EBITDA, well, at the end of the day, what -- what is also here is interest expenses which increased a lot, and this is driven by the lack of loans that we've made. We achieved $1 million in the trimester related on interest expenses. So in the end of the day, it's good to highlight the EBITDA -- positive EBITDA of $2 million. And also after interest and taxes, a net loss of [indiscernible] in Q1. On operational summary, we do have [ yield ] per tonne, the volume and then revenue, production and margin. We can see that the revenue per tonne, if you look on the first table, it has increased from $101,000 to $103,000, and the cost is pretty flat. But the key point of the chart is to demonstrate that once we exclude the freight impact of the scenario, we can see that we had a decrease actually on the [indiscernible] -- on the total revenue per tonne from $75 to $67 per tonne. So this was basically driven by the potash price increase which we had to reduce and follow the trend with our sales. And at the end of the day, we had a gross margin reduction from 68% to 63%. On the cost side, we were pretty close to what we had last year. Remember that we have now a much bigger capacity with both [ sectors ], which brings to us also additional fixed costs. So it's quite important for the coming periods that we increase volume to dilute this cost, and we can start to verify and demonstrate the cost reduction that we have once we produce Plant 2, cost for products there at products -- products at Plant 2 is at least 20%, 25% lower than produce in Plant 1. So this could be an -- will be demonstrated and realized once the volumes increase in Q2, Q3 and Q4. On Logistics side, you can see in the left side chart that shows the FOB, CIF and total sales. You can see that in Q1, we sold down 70% in CIF compared to 60% only last year. This made towards our expenses to increase from $3 million to $3.9 million. But not only this impacted our results, but what had a relevant impact is that the weight average distance of product delivered increased by 12% in Q1 compared to the same period. This means that to deliver -- the cost to deliver per tonne has also increased. So once we consider only the CIF expenses or freight expenses to deliver the product that increased from $44 to $53 per tonne. So this is the impact we have in Q1, it was around $600,000 impact in our net earnings at the end of the day. The good part of the scenario from -- since March last -- this year, the diesel price in Brazil starts to decrease we had from January up until now and around 33% reduction in the price of the fuel and diesel sold by the [ public ] company, Petrobras. It does not mean that this impact goes 100% for the end of the chain or until [ burden ] cost, for example, or until the 3PL cost. But of course, this is a trend, and we do expect if the new policy that we currently have with the government that the price might be even lower in the near future. So this, of course, will help us to be more competitive, [ cease ] to delivery our product. As you know, we do need to have 6x larger efforts then to deliver the same amount in K20 from KCL to the marketplace. On this chart now you can see a bit on annual sales from 2018 up to 2023 and projected for the new PFS and stage of the company. You can see from 2020 to 2021, a growth of over 6% and then the next year, 57% up to 2022. And now in this year, we do expect between 27% to 91% growth as we demonstrated in the last presentation of our guidance from 800,000 tonnes to 1.2 million tonnes in 2023. A bit on SG&A. You can see here the key points that we've [ already ] explained in our press release last week or a few days ago, we can see that we had a significant increase on the site of the product delivery freight, as I explained before, and also on sales and marketing expenses. Sales and marketing expenses are basically driven by -- we have since January, in the company. [ Fuel ] sales working around 13 people working in the market -- field traveling with cars being rented and other kind of expenses on travel that impact our costs. And in the site of general and administrative expenses, we had a significant increase as well. This was basically driven by a reallocation that we had of a few employees, which were not exactly costs, but they were considered as such in Q1 2022, and then we had reclassified them in April last year. So this will impact us on a year-on-year basis. And also, it's important to remind that we have additional rental expenses importantly planned too. So we have some equipment and some other administrative structures that are rented. And of course, it will impact our total expense. Once we increase volumes, that expectation we have, this cost per tonne, expense per tonne will be also diluted since most of it is our fixed costs. On sales channels, you can see here that the 3 types of sales that we currently have. We do have direct sales, which are made by our employees. Sales agents. Sales agents are sales representatives that work for us and other -- among our other companies and work throughout commissions, and also distributors that they have a discount the price they purchased. And then the end of the day, the price in the [ fund gate ] should be the same from the distributor or from sales agents or from direct sales. What you can see here is a big reduction in distributors, which was compensated in Q1 by direct sales by -- made by our own team. On loans, this chart -- the right side, you can see a graph that shows the current level of loans that we currently have and also the expectation of loans amortization in the coming quarters up to 2026. We can see, for example, that in 2023, we do expect to have amortization of CAD [ 20.5 ] million at the end of the day to reduce the total loans in the end of this year to around $32.6 million. What it's detailed on the left side of this chart is that we have on hand, $34.3 million plus receivables with the receivables that will support us to pay for 2023 amount agreed with the banks. And also it's important to highlight and also in Q1 plus Q2, we had an additional loan [ weighed ] with Bank of Brazil in this quarter of CAD 7.7 million, with 1 year to [indiscernible] and additional 4 years to pay. So this will help us also as a cash flow in the longer term, and yes. So current -- average current loans rate are close to 16.25% per annum. We do expect to have this SELIC rate reduction in the coming months, that will help us a lot with -- to decrease the level of interest expenses of the company. To adjust for the new scenario, new potash price and new current scenario, let's say, at the end of the day, we've implemented in the few months ago in February, but it's a big start on April, a contingency plan, which is -- the key idea is to identify opportunities for cost savings and expense savings and the entire company from the operator up to the director from the small purchase up to the end of the chain. So they already identified CAD 1.2 million of savings or costs, avoidance that will help us with a lot of coming periods to achieve our results and to deliver a higher profit. We can see that just as for cost optimization since few months ago, we're reduced our [ 30 ] people. It includes operations, but also managers and directors of the company that we are trying to be more efficient and to make us even faster and more cost effective. So it's only on these we had $700,000 savings. And then on [ mercenary ] optimization. On here we have, for example, wheel loaders, mining excavator and trucks that we've renegotiated, arrears with our suppliers or even reduction or even a [ hype ] of vehicles that could be more cost effective, and this will deliver to us also $400,000 of savings in 12 months. And also, we are working in a third-party contract renegotiation, which involves several contracts, which expect to reduce at least $60,000 on 12 months. We are not -- we do not -- we're still working on new ideas and new projects and new opportunities to reduce and to be more effective cost. So we expect to bring some more initiatives in the coming presentation next quarter. And hopefully, this will be something that will make a difference at the end of the day for the company and for our profitability. These are the key points that I'd like to highlight in our presentation. I will pass back to Cristiano so he can start the Q&A section. Thank you.

Thank you, Felipe, and thank you, everyone, for sending several questions. So I will start answering the questions. The first question is about our pre-feasibility study. So there's a section in the pre-feasibility study where it talks about ways farmers can reduce the amount of potassium which is needed. So for example, they can apply organic residues, they can look at lower yields. So that sort of technique -- management technique, it would eliminate the use of potassium above a certain amount and in certain regions, resulting in an overall reduction of potassium needed. But certainly to completely eliminate the demand for potassium, you wouldn't be able to do that with that sort of technique. The next question is about ground water and about the problems we caused to several farmers last year who had their orders canceled and it's asking if we're doing anything to compensate them and to keep them as customers this year. Yes, we're trying. In some cases, it has worked. In all of the cases, there was a significant level of disappointment with Verde for failing to deliver product. And in those cases, we weren't able to resell to those customers. The next question talks about the increase in percentage that we saw happening last year, the increase in area with the same customer where our product was applied, an increase in that percentage. And the question is how we can expand with that. And yes, this is something we've been doing. If you will follow us on YouTube, you can see, especially the channel in Brazil, you can see the number of testimonials we've been posting over the last months. I believe there are over 100 testimonials there from small to very large growers including consultants, including tests that were undertaken with the product. So there's a lot of data there. The other question here is about Plant 3 and how we would expect to fund Plant 3. Most certainly, it's not something for now. It's something for the near future. It's something for when we can truly afford to build it without creating any potential negative impact in our financials without compromising our capability to repay our loans. So that's the thinking behind Plant 3. The next question we have here is about returning capital to shareholders as dividends or buybacks. Given what we've seen in terms of potash prices, given what we've seen in terms of farmer's appetite at the moment, it's not something for this year. Hopefully, for next year, we shall carry on monitoring that. The other question here is about discussions with the government so I can only presume it is about the rail. It's very important for us to get that license, that permit to build the rail connection because it will be required as we go beyond 23 million tonnes. And with every infrastructure project, it takes a long time. So the conversations are going well, and we hope in the next few months, it will succeed. The next question about us being part of a national project regarding the regeneration of the Amazon. If approached, we would be more than happy to collaborate, but we haven't heard anything in that way. But yes, if asked for our help, we can certainly be looking to collaborate. The next question is can farmers skip this year in terms of application? Yes. Farmers, they can skip application of fertilizers if they have an adequate level of nutrients in their soil, and if they're not targeting significant yields. We saw that happening to a certain extent last year when a number of farmers decided to either cut down or completely not apply. But this year, given the price for corn, the price for soybeans, we are already seeing it when there is a -- we get the reports from consultancy companies, they already showed the deterioration of margins from farmers. And it's obviously not a very encouraging moment. The other question here is about the partnership with Lavoro and interest is low but expected. Lavoro as well as [indiscernible], they own very large companies with thousands of salespeople and it takes time to be able to introduce a new product in their product range. So we have now a field team with 12 people who have been working alongside Lavoro, alongside [indiscernible] as well as our other distributors and agents, promoting the product and educating them on how to sell our products. Another question here, then those are 2 questions here together. It's talking about enhanced rock weathering. You saw the press release we put out this morning. There's a paragraph in that press release where we talk about enhanced rock weathering. And I would like to spend the next 5 minutes talking about this. Everyone's trying to find ways to capture carbon from the atmosphere, doesn't matter if you believe or not in global warming. The fact is there's plenty of capital looking to fund ways to extract carbon from the atmosphere. Only cutting down emissions isn't enough to address climate change. Over the years, there was a significant amount of carbon released to the atmosphere. And we will made, in addition to cutting emissions, we will need to figure out ways to capture that carbon. Historically, people have looked at planting trees and all the nature-based solutions as a way for you to capture carbon. For a number of years, that seemed to be the best strategy, that seemed to work until some people started measuring it, and they saw that a lot of those projects were dealing with wildfires that were lightning and whole farms would catch fire. And the whole nature-based carbon capture was, and has been questioned, whether it is really the best way for him to approach capture carbon from the atmosphere. Currently, any carbon credits originated from nature-based solutions coming, for example, from [indiscernible] reforestation is worth much in markets. Then scientists started looking at what could work. Originally, they looked at injecting carbon inside the soil and underneath certain [indiscernible] structures, that would be capable of storing that carbon. Billions of dollars were spent developing those types of projects, testing the size, and you have some very large projects in construction where you're literally injecting carbon inside the -- inside those different geological structures. There has been a lot of questioning whether this really works, the impact, the scalability, so scientists kept looking at other ways. And currently, the 2 technologies that have been attracting a lot of interest from large companies such as Microsoft, such as Frontier Carbon, which is a pool of companies, including Alphabet and Stripe and Boston Consulting and a bank called JPMorgan, looking to buy carbon credits from that type of technology. So the 2 -- my main technologies people are looking at is direct capture where you have this big facility where you are literally sucking carbon from the atmosphere and [ crystallizing ] that carbon in a stable compound. Some criticism to that technology is that it's expensive to build those facilities, and it's expensive to get carbon credit from it. But you have a number of projects being developed looking at doing exactly that. [indiscernible] as bicarbonate, it will link to aquifers, it will link rivers, it will be in the ocean for that process and bicarbonates will react other elements, which is calcium, magnesium, and will form some stable compounds. They will be there in a stable way locked in carbon for hundreds, if not thousands of years. Because you can lock carbon for a very long term, scientists have become more and more excited about this technology called [ inhanded ] to deploy pulverized rock. They're not having to spend any money. Everything is being funded by everything is being funded by Microsoft and the others. The sort of rock which was used, what was chosen by the earlier scientists to explore enhanced rock weathering was the most available rock in the world, perhaps after sand, but [indiscernible] which is basalt. Basalt is very common rock and has the capacity to capture carbon so it has been used. Certain basalt have very small amounts of potassium, [ half 1% ] but rich in calcium and magnesium, which help to make that carbon captured. So from an agricultural perspective, basalt has limited benefits. It doesn't provide any primary macronutrients, such as nitrogen, phosphate or potash and for that reason, this is why it isn't [ easy ] to operate. Actually, farmers really, if you want to spread that basalt [indiscernible], you may as well do it all by yourself and I have no interest in buying it. When you work at what we are doing as Verde AgriTech, there is the possibility one can think about carbon credits fully funding the application of our rock. One can look at the possibility of valuing those carbon credits. So farmers no longer need to be buying it and all the compensation from the company comes from carbon credits. That's one way to look at it. The other way to look at it is that carbon credits issued by Verde AgriTech would provide a way for the company to drastically reduce the sales price of its product compensating for that reduction with carbon credits, making it significantly more attractive for farmers to switch from conventional potash that [indiscernible] to the environment, to switch from that to our product. So that is the [ avenue ]. When you think about carbon credits, there is a very important criteria called additionality and we believe we fully comply with the additionality for the reasons we've mentioned and from a barrier perspective and even from a financial perspective, and so this is something very important. It's big. It's big. We're currently looking at how much carbon our rock can capture, and we hope to very soon be able to announce that. We have engaged the world's biggest expert in this area, a pioneer in the field of enhanced rock weathering, a gentleman called Dave Manning, Dr. Dave Manning from Newcastle University, and we're excited about the progress of this work. Earlier on, I was talking to someone very knowledgeable in the fertilizer industry and it was a very interesting conversation. He was looking at all of that, and he was essentially saying that it wouldn't be too aggressive to think about the conventional potassium chloride industry, the conventional KCL industry, being destroyed as collateral damage in the fight against climate change. The conventional potash industry being destroyed as collateral damage in the fight against climate change. If Microsoft and other companies are willing to pick up the tab, to pick up the bill for spreading rocks that can capture carbon, it's -- you can see where he's coming from. And he was talking about the conventional industry, conventional potash industry executives, looking at a big wave on the [ beach ] and discussing potash prices. And discussing how those potash prices are impacting the sector, how potash prices are coming down and worried about that big wave. But then they aren't seeing yet the gigantic colossal tsunami wave, which is a few meters behind that big wave covered by that big wave, and they can't see that colossal gigantic tsunami wave, which is called enhanced rock weathering, which in his view, could completely destroy the convention of potash industry as collateral damage in the fight against climate change. So it's something which still in its early days. but it's something which is developing extraordinarily fast. And I would suggest everyone tries to keep track of it and follow it. This [indiscernible] was coming out daily on the topic. And it's something that with our 3.2 billion tonnes of mineral resources, which could potentially be able to capture carbon and provide potassium as well as an added benefit, it's something that can be very meaningful in the fight against climate change. Next question, it's about ISO certifications. So we've earned ISO 9001, ISO 14001. Do we plan to get any other certification? And as it is, yes, we are working on the ISO certifications to do with carbon emissions. Virtually retained the [indiscernible] company that started the kickoff meeting was this week. So this is a specific ISO for that purpose, which we're working on. Next question about plant reconstruction. I've addressed that. Next question here was also about carbon capture, and how you get paid on it. Essentially you get paid by selling carbon credits. And you have the [ voluntary ] carbon credit market, and you also have the direct arrangements between companies like Microsoft, as I just mentioned, or Frontier Carbon that are looking to offset their own carbon emissions. A few weeks ago, I attended a very interesting presentation about artificial intelligence, and there was someone there from Microsoft talking in. And the carbon emission from running artificial intelligence is crazy. So everyone is getting excited about artificial intelligence, but the sort of computer power you need behind it and the amount of carbon generated from it is gigantic, so yes. Also on the top of carbon capture, there was a very good article a couple of days ago by The Economist talking about the industry, very interesting how they approach their view on the carbon industry, but they're talking about it being $1 trillion industry, a $1 trillion industry. When you see the numbers and you see the arguments and you see the $1 trillion industry there, it helps you to understand why the analyst I mentioned, talks about the conventional potash industry being collateral damage in the fight against climate change. To put the $1 trillion in perspective, the whole potash market, the global potash market is currently worth about $150 billion. That's what the whole potash market is currently worth, about $150 billion versus $1 trillion plus from carbon capture. Question about diesel prices. Yes, diesel prices have started coming down. The Directors of Petrobras, Brazilian state-owned -- partially state-controlled company, they've decided to change how diesel is priced. Instead of pricing it according to the variations of the market, they will soften the change, the variation. So they've already reduced diesel prices in Brazil as a consequence. Another question about approvals of the [ Royal ] permit, I've addressed that before. Someone's saying that this screen's too close to my face so I apologize for that. What percentage of our sales last year went to eucalyptus? I don't know right now, but we can share that in perhaps our newsletter. Eucalyptus is a big market. Our product is phenomenal for eucalyptus. Eucalyptus in Brazil is used by the pulp and paper industry as well as by the steel industry. And essentially, we allow farmers to make just 1 application instead of making 3 applications. Another question about carbon removal. And then a final question here for Felipe, which is in the interim financial statements for Q1 2023, in the cash flow statement on Page 4, it shows mid-table cash flow for acquisition of mineral property assets, [ 1.4 ] versus [ 200,000 ]. What were these acquisitions? It shouldn't -- I think the problem here, Felipe, and I can start answering that. We should change that because whenever you talk about the mineral property asset, usually people think -- and that's the correct way to think about it, concessions, mining permit, mining concessions, and not the [indiscernible] is literal translation of it, which would be a property with minerals in it. So we should improve that disclosure. So if it is a capital allocation on land, it should be broken down as such. If it is something going towards titles, mineral titles, it should be disclosed as such. So we will look into it. Do you want to add anything else, Felipe?

Yes. No, we can open and split this, there's no problem. This basically was we had investments when we have the center of cost of the -- we call the [indiscernible] project, it's the biggest project as well. Our investments made in this account goes to this role, but we can split so it will be easy to understand. [indiscernible].

Yes. Okay. So that concludes the questions we received today. If you are watching it on YouTube, thank you very much. If you're watching it live, thank you a lot for your time this afternoon. Thank you a lot for sharing and sending your questions, and we hope to very soon be able to talk more about carbon credits. And what one should be looking for is really how much carbon we can capture with our rock and what would be the next steps? So thank you again, and I look forward to talking to you and seeing you all again very soon. Bye-bye.