Northam Platinum Holdings Limited (NPH) Earnings Call Transcript & Summary

Good morning, everybody, and thank you for joining us at the Northam Annual Results for 2020. Welcome to the Northam Chairman and the Board members who are on the line. Also welcome to everybody on the line and on the webcast, and in particular, welcome to those of you who've managed to join us in person today under unusual and sometimes difficult circumstances. We really appreciate it. The presentation, as always, is concise. But the booklet, we can't really call it a booklet anymore, it's book, is very detailed in terms of the operational and financial performance metrics. We've also released our full suite of annual reports today, and I'd also like to thank Alet and her team for managing to achieve that again under somewhat difficult circumstances, especially when it comes to audit. These are all available on the website this morning. We are hosting the website live -- the presentation live in the spirit of normalizing how we operate in abnormal times. We believe this is very important. Here is our usual disclaimer regarding potential forward-looking statements that we may make today, and it's important to read it when you have some time. I'll review some of the key features of the year, including a summary of the impact that the COVID-19 pandemic has had on our business, and Northam's response to it. I'll then refresh you on progress we've made with our strategy, including details on our operations and project delivery. Alet will then deal with the financial results. And finally, I'll provide an outlook for the business for the coming year or 2. So key features for the year. Despite severe operational difficulties, this has been a record year for Northam, and it's effectively been a year of 2 halves. We had a very good first half, recording the highest production ever for an interim period with good performances from all 3 mining operations. Then the COVID-19 pandemic struck, and this has had a very significant impact on every aspect of our lives. We've lost 4 of our own employees and 1 of our contractor employees to the virus. Any early and unexpected death is devastating, and our thoughts remain with each of those families. Our operations were also badly affected by the national lockdown and phased restart. But it is testament to mine management working closely with organized labor and our regulators that we've managed to limit the impact and also restarted operations in a sustainable manner. The loss in production resulted in metal sales being flat year-on-year despite the underlying growth profile of the group. Despite this, on the back of a 67% increase in the rand-denominated basket price received, we achieved a record revenue of ZAR 17.8 billion. This, in turn, translated to a record operating profit of ZAR 5.3 billion and a record EBITDA of ZAR 6 billion. We were also able to contain net debt to ZAR 3.3 billion, and we were able to stay comfortably within our self-imposed target of net debt-to-EBITDA of 1:1. During the year and subsequent to year-end, we have purchased Zambezi preference shares to the value of ZAR 5.4 billion, and we currently hold a total of 46.7% of all shares in the issue. At today's face value, we have returned ZAR 6 billion to shareholders to date through the purchase program. And I do believe this is beginning to reflect in the relative share price performance. In addition, the conclusion of a 5-year wage agreement at Booysendal will contribute to stable employee relations, particularly in the coming mining ramp up at the Booysendal South mine, of course, the new project. That's a picture, by the way, of the refrigeration plant at Zondereinde, very critical piece of equipment that controls the environment underground. The COVID-19 pandemic is having an unprecedented impact on the world. And we've all been navigating through very uncertain times. Northam has responded to it in a number of ways. Most importantly, the health and well-being of our employees as well as that of our communities is at the forefront of our minds in everything we do. Secondly, we are a business that sells our product into a global market, and this has been subject to metal price volatility and demand uncertainty. In addition, the South African national lockdown and phased restart resulted in a loss of production over 100,000 ounces for the group. And the phased restart is still in progress, in particular, at Zondereinde. Our cross-border employees are still to return. All of this could have resulted in severe liquidity constraints, as you might imagine. In response, Northam developed a 4-phase action plan to minimize both the social and economic impacts of COVID-19. Firstly, we committed to paying and protecting the jobs of all our employees. This did contribute significantly to our COVID-19 direct cost estimate of approximately ZAR 1 billion. Secondly, we implemented comprehensive health measures and safety protocols to reduce potential for infection, as well as generally promoting health and wellness amongst our employees and the communities in which we operate. These measures have been developed in collaboration -- close collaboration with the DMRE as well as our representative unions. They're guided by the disaster management regulations, together with the guidelines of the WHO and the NICD. In addition, we drew on our long experience. The mining industry has maintained strong health programs over many years. Our collective achievements in managing HIV and TB, together with occupational health, attest to this. And we drew on this experience during the current pandemic. In order to assist with COVID-19 relief efforts, we donated funds to our 2 community trusts. Thirdly, we drive towards operational normalization every day, step-by-step, maintaining a focus on safe, sustainable production. We've done well in this regard. Booysendal and Eland are back at full production, and Zondereinde is getting there. Finally, we've managed the company's cash position, and this has been achieved through a considered trimming of our capital and the restructuring of our DMTN, domestic medium-term note program. Alet will elaborate more on this later in her presentation. Why is mining so important? We make a very significant contribution to the local and national economy. Mining is important. We create meaningful, sustainable, direct employment in some of the least economically developed areas of our country. Over the past 5 years, Northam has created almost 6,000 new jobs against the backdrop of a shrinking mining sector. The dependency ratio in mining is high, and we understand this. And it was our primary and key consideration in our decision to continue to pay both basic salaries and benefits during the national lockdown and the phased restart. Further, employee benefits accrue from both a 3% equity stake in the company through the Northam Employee Trust, together with profit sharing from the Toro Empowerment -- Employee Empowerment Trust. In addition, all employees and dependents benefit from comprehensive health care as well as meaningful assistance in home ownership. We preferentially employ from our host communities. Our procurement spend is focused locally where it's all possible. And our social spending is focused on health and education. In addition, our communities hold a 5% equity investment through our 2 community trusts. Our operations, by their very nature, do impact the natural environment and we continually assess and upgrade our mitigation measures. We design to minimize impact and we do create environmental offsets where no further mitigation is possible. The Buttonshope Conservancy Trust at Booysendal mine is a benchmark example of world-class nature conservation. Of the numerous social and economic issues facing South Africa today, we believe very strongly that unemployment, particularly amongst the youth, is the most critical. Meaningful, sustainable employment is the basis for personal pride, community stability and economic development. As I mentioned, since 2015, as you see from the graph, we've created over time, 5,897 meaningful sustainable jobs. By far, the majority of these new employees come from our host communities. All government policy formulation and objectives should have job creation as the #1 priority, if South Africa is to emerge from our economic spiral. In my opinion, unemployment is the greatest of all economic evils, and no matter which part of the political spectrum you come from, this should be our common enemy. We have home ownership programs in place across the group. And to date, we've invested ZAR 305 million in assisting 570 employees in owning well-built and serviced homes. In fact, Zanele, who you can see in the picture there, is -- we've invited Zanele today. Thanks for attending Zanele, appreciate it. A further additional 465 homes in the towns of Mashishing and Northam are currently under construction. Moving on to a review of strategy. And to remind everyone, 5 years ago, we embarked upon a 10-year strategy to reposition Northam as a company. And by now, you will all be familiar with this slide, which depicts the time line of our unfolding story. The strategy remains unchanged. There are 4 phases, and we currently focus on steps number 3 and 4. Project execution continues at our 3 mining sites and is one of the key ingredients for Northam's success. We believe we're quick, innovative and capital efficient. These qualities, in our opinion, differentiate Northam and provide a unique growth investment proposition. The final phase of our current strategy is returning value to shareholders. This is a very important phase for the company. The way Zambezi is structured gives us a very obvious and powerful way to return value to shareholders through the purchase of the preference share. The benefits of this approach are now becoming clear, and shareholders will be well rewarded for their patience. Moving on to the operational review and firstly, safety. It is with regret that we have to report a fatality at Zondereinde and the death of Mr. [ Botswana Soliman Kalaote ] in a fall of ground accident in December. Accidents such as these are deeply distressing to both the family and the colleagues and the management on the mine, but they are preventable. And management is addressing a range of issues to mitigate the risk associated with night shift cleaning. Our thoughts remain with the family and his colleagues on the mine. Shortly before this incident, Zondereinde achieved 2 million fatality-free shifts. And last month, recorded 1 million fatality-free shifts once again. During the year, the mine was awarded ISO 45001. And in addition, the lost time injury frequency rate has continued to improve. At Booysendal, the good safety performance continues with the mine recording 5 million fatality-free shifts, and perhaps more importantly, achieved 10 years fatality-free. In fact, the mine has been fatality-free since inception. Whilst the lost time injury rate regressed slightly, this remains a world class performance. Eland is in start-up mode with a new workforce and is still bedding down its practices and procedures. At Northam, the safety and health of our employees continues to be, as I said earlier, at the forefront of everything we do. The year-on-year improvement in the group-wide statistics attest to that. However, all accidents have the potential for serious consequences. And the Northam Board and management take our duty of care extremely seriously. This slide gives a snapshot of the group's consolidated operating performance for the year. The key feature of the operational performance, of course, has been the impact of COVID on production, in particular, the second half. And prior to this onset, the group was on track for a record production year. The tonnes of losses related to COVID have been felt at the conventional Zondereinde mine. Our mechanized Booysendal mine recovered strongly after the lockdown, whilst Eland outperformed. Whilst milled tonnage from the combined operations increased to 5.8 million tonnes, this preferentially came from the lower grade Eland surface sources, leading to a marginal decrease in own PGM production to just over 550,000 4E ounces. Total refined metal production followed suit, whilst chrome concentrate production marginally increased by 2.4% to 783,000 tonnes, again, on the back of additional contributions from Eland. This combined with the fixed cost component of our cost base led to a 28.2% increase in unit cash costs to ZAR 29,281 per platinum ounce. This is to be expected given the impact of COVID. And of course, we did commission 2 new concentrators across the group without the associated volume at this stage. Total revenue per platinum ounce was 79% higher than the previous year at ZAR 53,000 per platinum ounce. This is a -- this has afforded us a healthy cash margin of just under 45%. By year-end, Booysendal and Eland were back to full complement, whilst 80% of mining crews were operational at Zondereinde. We expect to have fully normalized production by December, and we have tempered the coming year forecast accordingly. If we do look in detail, firstly, at Zondereinde. As I mentioned, the conventional mine was hardest hit, as you may imagine, given the large workforce there. Lower combined milled tonnages translated to a loss of approximately 71,000 4E ounces. This severely impacted unit cash costs, which increased by 33%. These type of operations have a very high degree of fixed cost. And when volumes reduce, it has an extremely adverse effect on the unit cost performance. However, despite the impact of COVID-19, the operation is firmly on the road to recovery and a gradual ramp-up through to December can be expected. As we are speaking today, we have 91 mining teams out of 100 -- complement of 109 mining teams at work. And notwithstanding this, our forecasted production for the coming year, for FY '21, is a respectable 290,000 4E ounces. And we believe that Zondereinde will remain in a competitive cost position relative to its peers. Capital expenditure for the year was ZAR 648 million, of which ZAR 462 million was spent on project work, including the deepening section, the Western extension development and Number 3 shaft. The forecast capital expenditure at Zondereinde for the coming year is ZAR 1.1 billion. This includes provision for the reaming of Number 3 shaft and the scheduled rebuild of Number 1 furnace, which is the older furnace. This is a picture of the raise bore rig that's drilling Number 3 shaft on site. The shaft will provide additional surface access into the Western extension for men, material and services. And the critical technical challenge for this project was an absolutely straight pilot hole. This will be a hoisting shaft. I'm pleased to say that we hold at 1,382 meters, drilling out the survey pack on the 18th of July. This is a world record. Lateral deflection down the hole was limited to less than 140 millimeters. We have been reaming the hole to it's final diameter of 4.8 meters during the coming year. Looking underground at the Western extension. We can see development has progressed very well on all mining levels. During the past year, 4,781 meters of access tunnels have been developed. This is 907 meters above plan. So it's gone very well and that reflects the quality of the ground in this block. Strike development has reached the third mining line already. Our raises have been holed throughout most of the second mining line, and over 150,000 tonnes of high-quality Merensky reef has been extracted. We took ownership of this ground in 2018, and this block will have a very rapid payback. Mining crew productivity is benefiting from very stable reef, good rock conditions and focused logistics over the 10 mining levels. Moving on now to Booysendal. Booysendal recorded excellent production once again, which is particularly pleasing given the level of disruption we faced. Booysendal North is now well-established and is going from strength to strength. The heavy lifting of Booysendal South is done. The investment has been made, and mining ramp-up is currently in progress. We're beginning to generate meaningful tonnages. Total milled feed at Booysendal was 5% higher at 3 million tonnes despite COVID, on the back of additional tonnage from the South mine. Both the North and South concentrators are performing well and showing year-on-year recovery improvements. Grade from the North Merensky mine is lower, on the back of increased decline development as we prepare for Phase-2 ramp-up at the Merensky module once the North aerial RopeCon is commissioned and up and running. And this is now expected to be December '21, and has been impacted by the delays brought on by the lockdowns across the world, including, of course, in Austria. The rise in unit cash cost is attributable to both COVID and the covering cost of the Booysendal South mine, which is not at all yet operating at full capacity. Again, fixed cost, no volume, adverse unit cost impact for now, but the volume is coming. On-mine capital expenditure, was ZAR 1.1 billion for the year, of which ZAR 200 million was spent on sustaining CapEx. And capital expenditure for the coming year at Booysendal is expected to be ZAR 1 billion, which includes for a provision of the new BS4 UG2 module, which is an additional UG2 module over and above BS1 and BS2. Looking at more detail at Booysendal South. This is a recent picture of the Central UG2 complex. Surface infrastructure is 95% complete. The South RopeCon is functioning well and well within design parameters. As you can see from the picture, we have minimized the impact on the environment, the footprint is quite small and we've rehabilitated affected ground concurrent with construction. And this is why we're mining Booysendal South. That's a picture of the UG2 on the face. It's a composite UG2 scene, 160 centimeters wide, carrying approximately 1 ounce of PGMs for every square meter mine. This is exceptional. The width, the 10-degree depth underground conditions make it perfect for mechanized mining. Underground development continues, and we can see the mining plan there. You can see the 2 declines. The difference between the Booysendal South project and the Booysendal North project is, in fact, Booysendal South is a double decline. In mining terms, it's twice the size. You can see that the development activities on the 2 declines have progressed very well. I lost my space there because I'm talking. Okay. Particularly, I did want to say, our initial results, particularly pertaining to head grade, are exceeding expectations. And we can look forward to significant contributions from the Booysendal South UG2 very shortly. You can see mining is actually beginning to take place to the north of BS1. If you can just show the mining area, Damian, and to the south of BS2. This is very early mining, but we're beginning with the mining ramp up. And that means that the cash flow is coming. Construction of the Central Merensky boxcut at the South is also complete, but we've temporarily curtailed portal development for underground access as part of our capital trimming. We will review this decision in the coming year, and we'll be -- have one eye, of course, on the market condition before we pull the trigger there. Access to a new BS4 UG2 module has also been established in the year. Underground development has commenced, and stoping will start also in the coming year. Earthworks and foundations for the North RopeCon are complete, and the mechanical construction will commence in January. It is delayed, as I said, and this conveyor will transport Merensky ore from both the UG2 Merensky module and the Central Merensky module to the South concentrator from December 2021. Overall, the South mine project remains on schedule, plus/minus, allowing for the 3 months loss in the last quarter of the COVID interruptions. And the total capital forecast of the project remains at ZAR 5.6 billion escalated. Moving on now to Eland. Processing of service PGM and chromite-bearing material commenced during this year, following the partial recommissioning of the concentrator. And Eland produced 35,000 4E ounces and 72,000 tonnes of chrome in concentrate. Unit cash costs at these low volumes was ZAR 29,395 per platinum ounce. Please bear in mind that this operation is in very early stage, and we are pleased to post a maiden operating profit of ZAR 160 million under our watch. This is a picture of the Kukama portal at Eland, and this is the shaft -- 1 of the shafts on the mine that's currently under development. As I mentioned upfront, and as part of our capital trimming, we have delayed the stoping buildup at Eland for 1 year. However, we continue to open up reserves through development of the declines and strike drives. The addition of Maroelabult, which is contiguous to Eland, will bring numerous benefits, and we are busy rescheduling the mine and development accordingly. This will accelerate our buildup, and we'll keep you posted in this regard. Eland has a high basket price and will prove to be very capital-efficient and a profitable addition to the Northam group in the years to come. I'll now hand over to Alet to take us through the financials. Thanks, Alet.

Thank you, Paul. Good morning, everybody. Despite the impact of COVID-19 financially, this has been a record year for Northam. This slide highlights some of the key financial features of the year. We achieved record revenue of ZAR 17.8 billion. This translated to a record operating profit of ZAR 5.3 billion and record EBITDA of ZAR 6 billion. In addition, we posted a record IFRS profit of ZAR 2.2 billion, and this delivered record free cash of ZAR 4 billion. Also, we have done what we said we'll do by returning significant value to our shareholders. I'm going to unpack these highlights, but firstly, let's look at earnings. We are progressively improving our returns. To illustrate this, I've included 3 comparable periods on the bottom of this slide. I think you can clearly see the ongoing improvement. Because of our significant increase in our IFRS profits, our earnings per share increased to ZAR 6.20 versus ZAR 0.172 in June 2019. Headline earnings per share increased to ZAR 6.195 versus ZAR 0.158 previously achieved. Normalized headline earnings, which is our main measure of performance, has increased by 150% to ZAR 3.4 billion. This equates to a normalized headline earnings per share of ZAR 6.763 compared to ZAR 2.701 last year. Moving on to revenue. As mentioned, revenue for the year increased by 67.3% or ZAR 7.2 billion to a record ZAR 17.8 billion. The main contributor to this increase was a 60.8% appreciation in the average 4E dollar basket price to $1,764. This added almost ZAR 5 billion. This was mainly due to the prices of palladium and rhodium increasing by 52% and 170%, respectively. These metals have continued their uplift trend with prices this morning at around $2,200 and $12,200 per ounce. Despite significant logistical hurdles as a result of border closures, the group maintained robust refined metal sales of 560,238 4E ounces. Lastly, we realized a 10.9% weaker exchange rate, adding around ZAR 1.7 billion. Looking at cost of sales. On the back of our improved revenue and cost of sales of ZAR 12.5 billion, the group generated an all-time record operating profit of ZAR 5.3 billion, 120% increase on last year. This equates to an operating profit margin of almost 30%. It includes direct cost associated with the COVID-19 pandemic of approximately ZAR 1 billion. These costs are largely due to our decision to maintain payment of salaries and benefits to all our employees during the lockdown phase. Key movements in the individual elements making up costs include the following, mining cost and concentrating cost increased by a 26% and 45%, respectively. This was due to the commencement of mining and the commissioning of the concentrators at Booysendal South and Eland. Both these concentrators are not yet operating at full capacity, but carry a high associated fixed cost. Smelter and BMR cost increased due to both the increase in the cost of electricity as well as additional power consumption required for the treatment of increased volumes received from Booysendal South and Eland. Included in selling and administration overheads are costs relating to our corporate office and group services. Royalty charges increased by 150%, with an increase in revenue generated from own operations, taking into account available unredeemed CapEx to set off against EBIT. Share-based payment expenses increased mainly on the back of the increase in the Northam share price and contributions to our Toro Employee Empowerment Trust. Each year, we perform an independent third-party review of our rehab liability. These updates relate to the development of Booysendal South and Eland. Concentrates, metals and recycling material purchased increased by 651%, with a corresponding increase in volumes of 213%. During the year, high-grade material as well as finished product was purchased, which carry higher premiums. Refining cost, including sampling and handling charges, increased by 32% as a result of these costs being euro denominated. Depreciation is based mainly on the unit of production method, with additional capital expenditure incurred by the group and the commencement of a number of components at Booysendal South and Eland, depreciation increased. The change in metal inventory is due to an increase in the cost of production, mainly relating to purchased material capitalized to the balance sheet. Full details of our inventory and movements relating to inventory are included in Note 16 of our results booklet. Let's look at the income statement. Our bottom line for the current year was a record IFRS profit of ZAR 2.2 billion. Key items impacting our bottom line included preference share dividends of ZAR 1.1 billion, as well as the loss on derecognition of the preference share liability both relating to the Zambezi structure. Our decision to purchase preference shares during the year reduced the dividend charge in the income statement by ZAR 300 million. The loss on derecognition of preference share liability of ZAR 130 million relates to the difference between the face value per Zambezi preference share and the price we paid together with all transaction costs. This to date equates to an average premium of 2.5%. After taking into account the Zambezi charges, the group generated a record profit before tax of ZAR 3.6 billion. That is calculated on a statutory basis. This resulted in a tax charge of ZAR 1.5 billion. Roughly half of this is deferred tax, which is noncash. The group also started paying tax on mining income as a result of the full utilization of unredeemed capital relating to Northam Platinum Limited, the statutory entity in which the Zondereinde mine is housed. Booysendal, however, still has ZAR 5 billion worth of unredeemed CapEx available to utilize against future taxable mining profits. Moving on to the group's cash flow, ZAR 6.4 billion was generated from our operations this year. ZAR 2.4 billion was invested in capital expenditure, mainly in the execution of the group's growth strategy. This resulted in ZAR 4 billion of free cash. This is the first meaningful annual free cash generated since the inception of our growth strategy. We have stated that we will return all free cash to shareholders. In keeping with this commitment, we purchased ZAR 5.4 billion worth of Zambezi preference shares, both during the year and subsequent to year end as we believe that at this point in time, it represents the most efficient way of value return. Taking account of our production growth profile, should current prices prevail, the group's ability to generate free cash and a consequential return of value to shareholders will be significant. Moving on to our net debt position. We have previously guided a self-imposed conservative target ratio for net debt-to-EBITDA of 1:1. With net debt at the end of ZAR 3.3 billion and EBITDA at ZAR 6 billion, we are well below this target. Northam adopts a very prudent approach to managing its long-term funding facilities. Let's look at the various funding facilities available to the group. We have adequate facilities in place. The group has a revolving credit facility of ZAR 3.5 billion and a general banking facility of ZAR 500 million. Both facilities were refinanced on more favorable terms during the year, extending the maturity date, whilst reducing the cost of debt. Both these were undrawn at year-end. The group also has a domestic medium-term note program, which was increased to ZAR 10 billion during the year. Notes to the value of ZAR 5.6 billion have been placed by year-end. As Paul has mentioned, following the onset of COVID-19, the group proactively implemented an action plan to preserve liquidity. This required restructuring of the domestic medium-term note program, the outcome of which was an extension to the maturity date of notes and issue, pushing out larger commitments to longer time lines, raising of additional debt funding and smoothing the overall maturity profile. Northam's credit rating was also reaffirmed with our outlook, upgraded to positive. This acknowledges our improved trend in earnings, our production growth profile, as well as our conservative debt metrics. In line with our strategy, a key focus continues to be the appropriate allocation of capital, a critical element of which is returning value to shareholders. To date, we have purchased 46.7% of the total issued Zambezi preference shares. This has returned ZAR 5.6 billion of value to shareholders. And let me reiterate, our strategy is unchanged, and we remain single-minded in our commitment to return further value going forward. I will now hand you back to Paul to take you through the business outlook.

Thank you, Alet. I'm getting my act together here. That's -- yes, that is a picture of the Eland ore body, for those of you who may have had some doubts that it's there. And as you can see, that's a very wide UG2 ore body on the side wall. In the past, we've steered away from extremely detailed guidance as a company. However, 2020 has been anything but a normal year. And due to the ongoing impact of COVID, we have tempered our production in the coming year. I, therefore, feel it's important to provide very specific guidance on where our production, CapEx and unit costs are expected to be for FY '21. So notwithstanding any further disruptions and taking into account normal mining business risk, we expect PGM production from own operations to be in the range of 650,000 to 670,000 ounces 4E. Our cost base is predominantly fixed. And as a result, we expect unit cost -- cash costs to be between ZAR 28,500 and ZAR 29,500 per platinum ounce. We should be able to hold this cost position for the next 2 years as we normalize. Sales will follow production and will also allow for the Number 1 furnace scheduled rebuild later on in the year. Our capital forecast for both FY '21 and FY '22 is estimated to be between ZAR 2.3 billion and ZAR 2.5 billion. This will allow for additional project work at Booysendal. We will be looking at the Merensky module. And of course, remember the additional BS4 UG2 module. We'll also review Eland, and we'll come back to you on that in due course. And we're also going to progress the Number 3 shaft project in the next couple of years. So please bear that in mind. And should the rand basket price remain, as I said, at current levels, then cash generation of the company will be very, very strong. And here is a basic business equation to work with. We always find it's very useful to cross check the model -- your model against the big numbers because it should -- if your big numbers don't work out, then there's something wrong with the model. In essence, I've used an example here for the next year, and I've chosen ZAR 60,000 as a revenue. Your numbers may well be higher than that. And certainly, today's spot is significantly higher than that. But for example, let's take revenue at ZAR 60,000 per platinum ounce. All these numbers are expressed per platinum ounce. I've chosen the midrange of the guidance for you, ZAR 29,000 per platinum ounce. That will give a cash profit margin of ZAR 31,000 per platinum ounce or 52%. And remember, the multiplier here is platinum ounces. And platinum ounces, we have a 60% by weighting of platinum against the 4E basket. So you need to make sure you do the multiplier against platinum ounces. And below the line, of course, we have capital bill, which is ZAR 2.4 billion. So it's quite useful to use that as a basic tool. When cross checking, sometimes very, very detailed models that everybody works with, it's very important that the big numbers also hold together and reconcile. Of course, it's no good having a healthy margin if you don't have the multiplier, which is production. And here is our forecast for the next 5 years. We've given it as a buildup. Zondereinde at the bottom, Booysendal ramp-up in the middle and beginnings of the ramp-up from Eland. We are, beginning this year, coming to see significant and meaningful ramp-up in production from Booysendal South mine. And growth from all operations will deliver our medium-term annual production target of 1 million ounces over the forecast period. Moving on to the market. Reading the market under these circumstances is not easy at all. I'm sure everybody has found that. Light-duty vehicle sales, in our view, will be around 72 million units for this calendar year. So we're slightly more positive than what we were in May, June. But this is down from what light-duty vehicle sales may have been pre-COVID, which is 90 million units. We see sales of 82 million units in calendar year '21, reflecting a gradual economic recovery across the world. Again, slightly better than our opinion or view in May and June. Given this outlook, and bearing in mind that automotive demand is the most important sector of demand for these metals, it is our considered opinion that, firstly, the market for palladium has moved closer to balance; that of rhodium remains in significant deficit; and whilst platinum is in surplus, it is viewed as an investment case, offering good relative value. Palladium remains the metal of choice for gasoline engines, in our view, for the foreseeable future. Although some traction for around 15% platinum substitution in the medium-term is becoming more likely. Rhodium will continue as the only viable solution for the control of nitrous oxides. And at Northam, we have a particularly strong view of demand for rhodium. And our UG2 growth profile reflects this belief. And in fact, that's why the UG2 adorns the cover of the book this morning. This is a picture of the UG2 ore body at Zondereinde. It's a particularly good example of what UG2 represents. A cleaner greener world needs PGMs. We need platinum group metals. And rhodium, in particular, has the strongest fundamentals and may turn out to be the metal of the decade. Again, this is where it comes from, UG2. Close to 90% of all the world's rhodium is produced from the UG2 ore bodies, which, of course, predominantly exists within the Bushveld Complex. In summary, as we continue to navigate through the pandemic, our focus will always be on the health and wellness of our employees. Secondly, we will continue to drive normalization of our operations every single day, step-by-step, with a particular focus on safe production, project execution and cost control. Thirdly, our growth strategy remains intact. And although we've pulled back on the capital for this coming year, we will continue to monitor the market and adjust our capital program accordingly. To reiterate, stoping ramp up continues at Booysendal South and the Western extension of Zondereinde; reaming of the Number 3 shaft will commence; and development of Kukama will continue, albeit at a reduced rate. Lastly, as Alet and I have both mentioned, we will be both aggressive and proactive in returning value to shareholders in this coming year. Despite the impact of COVID, our operations are returning to normality, and we look forward to a pivotal year ahead for the company. Ladies and gentlemen, that concludes the formal presentation. We will take some questions. If I can start from the floor, perhaps, and then we'll move to the phone lines. We do understand quite a lot of people are on the lines. So if there are any questions.

Let's just look around the room quickly. And yes, we do have one, Bruce from that side. By the way, while Bruce is getting the microphone, this is an aerial photograph of the Number 3 shaft sites and the Western extension block of ground. As you can see, it's a very extensive virgin block. And we will minimize -- it's also very beautiful, as you can see. We will be minimizing our impact there from an environmental point of view, as we always do. That's the current footprint for the sinking operation. Bruce, you had a question?

Bruce Williamson, Integral Asset Management. Just yes, congratulations to you and the team. Just an unbelievable job done. The achievements are fantastic. Well done. I wonder, could you share your experience of the mobile tunnel borer at Eland? What was achieved during the project? And I know during the difficult times, you took the decision to just leave it at the project level and not continue that contract, But share your experience of what was achieved. And then also going forward, whether you are going to be able to generate enough stoping face length to meet all your targets?

Thanks, Bruce. So firstly, in February and March, we were faced with some very difficult decisions, as everybody across the world was. We had -- we were facing a high degree of uncertainty. We were facing a potentially extended lockdown, which we had a view on. And we did have to take some tough capital -- what we call capital trimming decisions. And the obvious place to do that was both here at 3 shaft and, of course, at the Eland project, which was in its infancy. So the mobile tunnel boring machine was a casualty of that decision. We would have been otherwise faced with high standing charges, and it was not a sensible decision to leave it in place. So we did withdraw. It did, as you know, produce quite a long tunnel and a very low maintenance excavation. So it drills. And I'm sure you're going to see the tunnel borer again in some future applications, both ourselves and Master Drilling. We have learned a hell of a lot about tunnel boring in the Bushveld Complex. That's for sure. And the second part of the question, if I can remember, was the stope face length, yes. So at Eland, we are still developing. We're not stoping yet. And that will put the development ahead of stoping. It will give us a head start, if you wish. But development is critical at Eland because it's a high dipping ore body. And that means, as we develop on a parent dip, you need to develop further for the same -- to open up the same face length. So that, we're very conscious of that. The development teams on the decline section are doing well and we'll see how we go. This year, we'll take a decision as to whether we add additional teams early against the stated objectives or the stated guidance that I've just given. Obviously, the market is looking stronger than perhaps it was 3 or 4 months ago, but it's still early days. We'll have one eye on the market, one eye on the cash flow and the capital exposure, and we'll see what that means for us in the coming year, both for Eland, both for the Merensky central module at Booysendal and for this particular project at 3 shaft. In other words, we'll cut our cloth. And when we have confidence in the market, we'll increase our capital spend at these projects. It's very interesting that if you think about the Northam Group now, and I think it's very important you do consider Northam as a group as opposed to its original single asset status, we have options and quite powerful options to deliver into, potentially, a stronger market. So that's how we think about it. Those decisions are still open to us, and we'll see how we go. René, you have a follow-up question there?

Paul, I'll echo Bruce's sentiments, very well done and fantastic records this time around. I'd like to get -- just 2 questions. What is -- I'd like to get a feeling for when you are going to flick over from buying back the ZPLPs and starting to pay dividends? And then secondly, last year, you were damn good on the forecast of the rhodium price. Could you give us an outlook for this year?

The last bit is a bit cheeky, but yes. So firstly, on the purchase program for ZPLPs, I do want to reiterate what Alet has pointed out. And our Board is very clear on -- it's a very powerful way of returning value to shareholders. It's very, very efficient. And effectively, that's what we will continue to do in the near term. We've done very well in our opinion. And I think last time I spoke up, we said we would talk about a -- if we get to 50%, for instance, we'll be very happy. But even beyond 50%, further purchases of the case remains. And what we've said in the book is all options are now open to the company. So without being very specific in answering your question, I just do want to point out the various options that are available to the company in terms of how we return value open, and we'll make those decisions in due course. And of course, we'll let you know when that time comes. If we follow on from that basic business equation, and I'll just step back a little bit, if Damian can help me, just to illustrate the point a little bit more. Damian, you just click back a little bit, and I'm going to do some rounding here. So just forgive me for rounding for ease of calculation. If we follow through that cash equation at the top, and let me just round the cash profit margin, let's say, to ZAR 30,000 per platinum ounce. If we do sell, let's say, and produce somewhere around 650. We've given you the range, 650 to 670. 650 represents around about 400 platinum. It's actually 390, but I'm going to round it to 400. 4 times 3 is 12. Everybody see that. The cash generation ability in its basic -- in the basic equation at the top there is 12. Of course, you must now net off the ZAR 2.4 billion at the bottom for the CapEx. It must also net ofg some tax and so on and so forth. But the magnitude, the reason I'm saying this and illustrating this calculation, the magnitude of the cash generation ability of the company relative to the outstanding press is quite large. So I think if I can leave it at that, René. Okay. On the rhodium price, we see rhodium demand, first of all, very, very strong. And to give you an idea, throwing -- first of all, the legislation. Let's start with the legislation across the world, illustrated by the sixth legislation, the China VI, Euro 6, Bharat in India, the U.S. equivalents, they're all focused on a range of pollutants, but they're quite heavily focused on the control of nitrous oxides. And that's a health issue, and it's also quite a heavy greenhouse gas. But predominantly, the health issue, smog in cities is created by nitrous oxide, is partly quite a big constituents of smog. And the world's governments are really being quite pressing now in terms of both enforcing and enacting tighter legislation. That is focused on NOx. Rhodium is a very, very, very special metal in terms of its performance in that reaction and it will continue to be the metal of choice for control of NOx. If we look at loadings, if I take back, say, 5 years ago, loadings per vehicle for rhodium, perhaps 0.3 grams per vehicle on average for light-duty vehicles, we believe that will arise to 0.45. So you're looking at a 50% increase in rhodium loadings over the course of this, let's say, from 5 years past to 5 years forward. If I can use a decade illustratively, 50% increase in rhodium loadings is very, very significant. When you accumulate that all together, we see a cumulative demand for rhodium. In the next 5 years, approaching 1.4 million ounces, somewhere, maybe even slightly more north of that, depending on how it goes. And as you know, the supply of rhodium is somewhat constrained because a vast majority of rhodium comes from the UG2 ore bodies in the South African Bushveld Complex. And those have -- some of those parts of the UG2 in the Bushveld are aged, and they do have limited ability to grow production. So the supply of rhodium is tightening, demand is growing and it's legislated, and it's a very important issue that it's legislated against. And therefore, we see the structural -- the sort of fundamental industrial balance for rhodium being the strongest of the 3 metals and should do well. The industrial substitution ratio between palladium and rhodium is somewhere between 4 and 5 to 1. And you can see that the price differential is somewhere between 5 and 6, in fact, at this moment, rhodium against palladium. So we think, again, if you had asked me 6 months ago, we would have said palladium would lead the way. Rhodium second. Platinum will be the lagger. We've changed that view. In the light of what's happened, we believe rhodium will lead the way. Palladium will still be the metal of choice and still be strong, but not a runaway as it was doing. And platinum is now effectively following gold as an alternative investment and a good strong value proposition. So that's in a nutshell how we see. As far as dollar price is concerned, that's a tough one. Have we got questions perhaps from the lines or the webcast?

Yes, we do have some questions on the audio line. [Operator Instructions] The first question comes from Dominic O'Kane from JPMorgan.

Quick question, I suppose, on Booysendal. What level of contingency have you built into the guidance for FY '21? So I guess, could you just help us break down the H1-H2 split on the 330,000 ounces 4E? And then similarly, around working capital. You still have kind of a significant working capital position, how should we think about working capital movements across the next 12-month period?

Thanks, Dominic. Thanks for the questions. First, Booysendal South -- Booysendal, sorry, the greater Booysendal, if I can describe it. We have 2 mines there, Booysendal North and what we call Booysendal South, which is the new project. Booysendal North is a mature operation and will run essentially flat out for the year. So the nameplate numbers for Booysendal North is 215,000 ounces. That's the nameplate. It will exceed nameplate this coming year. And you can expect production to be pretty much balanced, allowing for Christmas across the year. It's running flat out, it's running well and it will achieve its numbers. That gives you a balance for Booysendal South of around about 100 and a bit, 1,000 ounces. And for the first 6 months, you probably can pencil in about 45. I'm looking it will be a little bit 40 to 45 in the first half, with the balance in the second half as we bring in additional teams. Booysendal South, I think, despite the effective 3-month delay brought on by COVID or the interruption of the 3 months, we did lose development time there. And unfortunately, development time is quite important in the context of Booysendal South because time is face effectively in this case. So we've lost a couple of months. But despite that, I'm very happy where we are. You've heard me describe the ore body. It's looking good. Our initial grade indications are actually very good, exceeded our expectations. We have currently 5 mining teams in place there. And we need to ramp that up to somewhere, 15, 16 mining teams over the course of the next 2 to 3 years. And in a nutshell, greater Booysendal, and you can pencil in these numbers, you can think about greater Booysendal in the next 3 years, 330, 400, 500. That's how the ramp-up looks. Maybe slightly less than 500 in that, and then finally hitting the 500 in the fourth year, but a very, very strong buildup from here because of the nature of the mining method, board and pillar mining. Once you've opened up the decline, should go quite quickly as did, by the way, Booysendal North. So we're actually quite excited about Booysendal South. It's really making our blood flow. We have contingency at Booysendal BS4, which is a new module that I talked about today, which we're also beginning to get going. And that will be our effective contingency together with the Merensky module that I also spoken about. So things are looking good, Dominic, at Booysendal, I don't think you should be concerned. We certainly are not. We're very excited. On the working capital, in the last quarter, we destocked and restocked because of logistics, which to and from Germany and South Africa. Remember, we not only export our final metal, we also export the intermediate product in drums, which is the BMR concentrate. We had quite a lot of difficulty with flights and logistics for our metal flow. So effectively, we had a destocking/restocking in the last quarter. We still have stock, which I think given these numbers, you should be pleasantly surprised about that we still have stock, given that we've done what we've done. And I would consider that now strategic stock, if I can particularly put it that way. And also point out that the sales, that we've given you -- the sales guidance matching production allows for a full furnace rebuild of Number 1 later in the course of the year. So despite the furnace rebuild, we will still match sales and production. So you can imagine stock will still remain by June '21 if -- and it will only flow in June '22. I'm trying to speak into that microphone, of course. I hope that answers the question fully enough, Dominic.

The next question comes from Leroy Mnguni from HSBC.

I've got 2 questions, please. The first one is, you've obviously got a big recovery in your volumes in FY '21 compared to FY '20, but your costs don't seem to move much if I'm just looking at your guidance. And I mean, I understand you've got a higher fixed cost business. Are there some costs in there that are a little sticky? Or are there additional costs that we need to factor in? And then my second question is just around the rhodium use for NOx. So if you're assuming that you're going to get substitution of platinum back in for palladium, does that not then leave a bit of scope for substituting out rhodium for a bit more palladium when that becomes available? Or is it a case of there's a certain amount of rhodium you need for NOx, and that cannot be substituted out regardless of how much palladium is available in the market? Is that not the risk for rhodium?

Thanks, Leroy, I think your second question is a little easier for me. So the -- by far, the preferred metal for the control of NOx by far, is rhodium. There is that ability to substitute palladium, as you and I have spoken about. But the information we have from both Johnson Matthey and BASF, who are -- I'm talking about the technical chaps we speak to in those 2 organizations, assure us it's very, very difficult to substitute rhodium even on that basis. They have been trying for more than decades to do that and have not succeeded. So yes, somewhat, I agree, but technical information from the coaters suggests substitution of rhodium is not so easy. Substitution of platinum for palladium, by the way, we only see 15% over time. So a gradual, potential substitution, but only gradually. No step change there. Model by model over the next 5 years, up to approximately a total of 15% substitution. That's what we understand. That's what we see at this stage. But that is significant, by the way, for platinum. I think that is worth pointing out. That is a significant amount of platinum we're talking about there. On the cost issue, remember, we're looking at group unit cost sales. So it also includes the higher unit cost from Eland. And also please bear in mind that Zondereinde will be impacted this year. Still, in the first 6 months, we'll have a suboptimal unit cost outcome at Zondereinde because we still only got, as we speak today, 91 out of 109 crews mining. So there is still a volume shortfall against the fixed cost. So that's why -- probably why you are seeing that. And otherwise, Booysendal will have a very good cost outcome. And the second half of Zondereinde should be an improvement. And what we've also said is we can hold that cost position for 2 years in our view, given the normalization in the second year and also some volume growth. So I think it's fair for now, in particular, if you consider the level of uncertainty we're still facing.

That helps. If I could just have one more question, please. And it's a follow-on from René's question, is that -- I mean if we can push you guys for a bit more detail on your thinking, given the cash that you're going to make. Should we assume that you're going to focus solely on the buyback for now and then only do dividends? Or is there a possibility you could do them both simultaneously? I mean, I know we've discussed this at length before, but I guess your ordinary share price now is so much higher than your -- than the value of the press, that maybe kind of that 50% thinking may have changed and you're thinking, well, now it makes sense to do 100% before you do dividends. But just how are you thinking about that?

So Leroy, you know we don't like to avoid questions. So let me answer as best I can. In the first instance, and in the near term, we will definitely buy more press, if I can just make it that very, very clear. And then secondly, I want to leave the statement that all options are available to the company from here.

The next question comes from Arnold Van Graan from Nedbank.

Paul, well done. And sorry, I couldn't be there in person. Two questions from my side. The first one is a quick one. It's just in terms of your stock buildup. So you said on a full year basis, you're going to match sales with production. But my question is, at the half year, will there be a stock buildup due to the furnace rebuild? And what is that number? Is there a number you can share with us? And then my second question goes to -- I guess it's not cost, but to CapEx. So I see you've got higher maintenance CapEx at Booysendal North related to some fleet replacement. So the question is, that fleet replacement that you're doing there, what are you seeing in terms of your achievements? Is that replacement coming sooner than you had anticipated? Or is that in line with plans? I'm just trying to get a sense of utilization and how long these machines last, and whether that could impact cost of capital going forward. That's all from my side.

Thanks, Arnold. Happy birthday for this week. By the way, he was 40 this week, I believe. Yes, well done. The fleet -- the mine is 5 years old, plus/minus. And some of the older machines are now 5 years old. Now typically, the -- a good achievement, again, in our view, for the suite of equipment is if you get 5 years, that's pretty good, allowing for a mid-cycle rebuild. So 5 years is probably as good as it gets, 4 years would not be surprising. And we're pretty much at that time now where the early machines that we've originally bought for Booysendal will need to be traded out, if I can say it that way. So that would answer the second part of the question. Remind me again the first part. What was the first part again? I should have wrote it down. Sorry, Arnold, can you just repeat your first question again? Sorry for that.

Yes. No, the first one related to any stock buildup related to the furnace rebuild at...

No. I think you will see -- you will still see stock in December, Arnold. You will still see stock, quite a lot of stock in various places. There will be ore stock at Zondereinde, the current UG2 underground ore mined number is higher than the mill capacity. You will see ore stock at Booysendal South, potentially, depending on how that ramp up goes. I'm pretty sure you're going to see ore stock there. You will still see some interesting smelter stocks, not mainstream stocks, but what I would call strategic stocks that I referred to, which is associated with a recycled loop. And from a -- if I can give you guidance for the half year, which is over and above the guidance we've given now, if we have a, let's say, somewhere between 300,00 and 330,000 ounces sales number for the half year, we'll be satisfied, if I can -- I see Alet nodding have been there. So that's good, 300,000 to 330,000 ounces sold by the half year.

The next question comes from Chris Nicholson from RMB Morgan Stanley.

Well done on the half. Sorry I couldn't be there, too. Two questions for me. Just the first one is around Number 3 shaft at Zondereinde. I understand you've obviously got some of the CapEx to do with the reaming of that shaft in this year's number. Could you give us a feel for what the total CapEx that shaft is going to tell? I think it will be equipping and the full development out of that. I know it's not on the development path now. But when does the bulk of production -- when does that shaft need to be up in terms of the production moving in the mine? So that would be my first question. And then second question is a bit simpler, just on Eland. How long will those surface stocks last for? So with the delay in the Kukama shaft build-out, how many years could we expect of kind of 1 million tonnes a year of surface stocks pricing?

Yes. On the second part of the question, those -- some of those stocks are third-party stocks. So we have a number of contracts in place for Eland with various customers. They are multiyear contracts. The first -- the big 1 is a multiyear contract. So there is still some way go. And of course, we've also got a very large tailings done, which will last many years. So we do have access to surface stocks at Eland, shall I say, during the ramp-up period of Eland. So what we're trying to achieve in a nutshell for Eland is to create a mine which is almost self-funded, in fact, largely self-funded during the ramp-up phase. And as you know, normally with these conventional layouts, although mining is hybrid, the stoping horizon is breast mining, it's the ramp-up that burns the cash. So if we can ramp up Eland in a pretty much cash-neutral manner using our surface sources, whether they're ours or third parties, we'll be very, very happy about that. If one considers the purchase price for the mine, and if we are able to do that effectively in a nutshell, we're trying to magic a mine out of nothing. And I think we will be able to achieve that given our visibility of those surface stocks and opportunities in and around Eland, which is actually quite central to the eastern part of the western limb, if you think about it. There are a number of broken bits, and we do believe there's enough opportunity for Eland during the ramp-up to pay for itself and also be a sweetener on top of the core mining operation. Yes. So in 6 years time, plus/minus, that is a good commissioning date for that shaft requirement. Initially, the shaft will be man, material and utilities. It's a very straightforward shaft, 4.8 meters diameter. It will have a mine winder in it, with probably a double compartment, with the piping on the sidewall, down to what will probably be a single station, at the most, 2 stations and a very simple shaft bottom. And then you will walk across to a chairlift installation that will take you down dip from 3 level into the bottom of the mine. And that will be very, very powerful for us from movement of people. It also decongests the lateral strike drives from Number 1 and Number 2 shafts. And that's where, in the first instance, all will be hoisted from because those shafts are currently underutilized. So at the moment -- and the wall -- the wall then, will be a requirement for a very simple vent shaft, which will be probably a lesser diameter. And then ultimately, in time to come, as we move further on strike, we may put a third shaft in there with some ore hoisting -- additional ore hoisting capacity. But before we do that, we will fill Number 1 and 2 shafts using the lateral transport on the strike -- on the existing strike drives. So the CapEx, I'm not going to quote the CapEx, but you can expect the CapEx to be a progressive CapEx over a number of years. Everything I've just described is essentially a 10-year project. It's quite a slow and gradual development of the Western block. Also self-funded because, as you know, we're already mining the first raise line there, the 150,000 tonnes of Merensky that we've already mined, effectively. If you do the sums on that tonnage, it's a rather a lot of revenue.

We have no further questions from the audio line.

I've got a few questions on the web. First of all, there's a couple of congratulations from [ Steve Shepard ] and from, [ Yash Buda ] of Nedbank Limited.

Thank you, guys.

And then you have a number of questions from Nkateko Mathonsi of Investec Bank. First question is referring to Zondereinde mine. Can you comment on productivity levels, particularly Zondereinde with workforce levels constrained by COVID-19? If productivity improved, any plans to sustain?

Can I take the questions one by one?

Yes.

So yes, the productivity question is a very good one in that we are definitely seeing increased productivity. The -- if you do the calculation, 91 teams of 109, you will see that, that is somewhere around 80%. But we are currently today, sitting on 90% production output. So there clearly has been an incremental increase in productivity. It's a reflection of quite a few things in that. First of all, we've reconstituted all the teams, and the teams are full. They also have access to the best quantity and quality of face. And therefore, the -- and there's also a strong will to work, by the way. I think that has to be acknowledged by Northam. The effort that the mining management together with the mining teams have put in here to restore a semblance of normality is actually quite remarkable. And a hell of a credit to the ladies and gents out there, they're doing a really good job. So 80% of the teams are producing 90% of their output, as we speak, and there are reasons and known reasons for that. And the next phase will be to gradually return the remaining teams, and that will take some time. Many of those employees are cross-border, and there's a double quarantine requirement across that border. It will be a little bit of a slow squeeze from here.

The next question is regarding U.S. recycling volumes purchased, decreased by 30% year-on-year. What is your read-through for total recycling volumes in 2020 relative to 2019? Sales volumes from recycling is still at 5-kilo ounces per year. What is the ideal size of this business in the next 3 years?

Okay. The -- we've set the target -- if we can create a 50,000 ounce business in the recycled loop, we'll be happy. We suspended our recycling activities post the emergence of COVID, in particular, in the States. We didn't do much actually in the last 5 months at all. And we've just restarted with our purchasing in July. So we've got going again. There isn't really an ideal number as such. We'll see how the business segment develops. But what we do, what we -- our ambition, if I can put it that way, if we can get to 50,000 ounces per annum, I think that will be a nice complement to the mining business. But remember, it also gives us a hell of a strategic insight into a very important segment of the market, which is, of course, the recycled loop. It's quite important. A lot of price signals come from that segment, and we want to and are beginning to understand it very well.

Next question was about Booysendal South, and it was about the ramp-up, but you've answered that question. And then last question from Nkateko was when will the western -- why a guidance of 290-kilo ounces for Zondereinde in '21 when the Western extension seems to be fully developed? And I think you answered that, that there's still some buildup to go on the Western extension. Still...

Yes. We -- just to expand on it, the 290 is our business plan number. So it's not just guidance. It is, in fact, the business plan number and those plans were set, as you may imagine, in and around April. We had to take a view. And that was our view at the time, again, with one eye on risk and the uncertainty that we were facing at the time, and we'll see how we go. But for now, our guidance is 290, and that is the business plan, allowing for, let's say, a gradual ramp-up between now and December of the remaining teams.

Last question was from Mark Du Toit from Oyster Catcher. And I think you've answered it as well. It's -- would you consider buying more than 50% of the Zambezi press?

Yes, we would.

And I just want to refresh just to make sure.

Okay. Ladies and gentlemen, thanks very much for listening and coming, in particular, the chaps and ladies in the room, not so easy. Please join us for some refreshments. Thank you.