Verde AgriTech Limited (NPK) Earnings Call Transcript & Summary

Everyone. Welcome to another results call with Verde AgriTech. My name is Cristiano Veloso. I am the Founder and CEO of Verde AgriTech. Today, we have here Felipe Paolucci, our Chief Financial Officer, who is also going to be presenting. If you're watching this on YouTube, please do not forget to subscribe to our channel. If you know anyone who might like this presentation, information and discussion, please make sure you share it as well. You help us reaching out to more people who might be interested in the work we are doing. Felipe, if you could please share your screen. I would like to thank all of you who have taken your time to watch this presentation live, and we look forward, as usual, to answering all of your questions at the end of this presentation. Likewise, if you ever have any questions, recommendations, suggestions, criticism, do not hesitate to contact us at your most convenient time, and we will be looking forward to communicating with you. So as we start today's presentation, I would like to remind you that today's presentations contain forward-looking statements. You should be looking at the next slide now where it contains our cautionary statements, our risk factors as well on our appropriate filed documents. Next slide, Felipe. Starting our presentation today with a little bit of the horrible macroeconomic and market overview which unfortunately has been our reality now since the end of 2022 when it all begun. Hopefully, we're coming to the end of it. Hopefully, the fact we've been able to have the very first positive EBITDA quarter in over 2 years, I think, hopefully, this is the end of this atrocious Brazilian great financial -- Brazilian great agricultural crisis and we will see now a resumption, a movement towards normality. So in the next slide, we can see a little bit about the disastrous Brazilian interest rate, currently sitting at 15%. The expectation in terms of reduction you can see on this slide comes from the focus research which is an average of expectations from market analysts in Brazil. However, there are other banks such as JPMorgan that have a much more bullish expectation on the reduction of the Brazilian interest rate. We think there are good reasons why they have an expectation for a faster reduction. Those reasons include the fact inflation seems to be under control but also the fact we are seeing -- we're approaching election year in Brazil. And there's no doubt that a reduction on interest rates will be a big boost and a big expectation. So this is something to look very carefully because it has a massive impact in farmers, has a big impact on our operations, and it's something to keep an eye on. And it looks like it's moving in the right direction. Next slide. Then we go to market, terrible as we've discussed. I think the -- I don't know if you can see on your screen, should be able to remind there's a little icon here. Yes, it's gone now. But you can see the increase in judicial recovery filings, which is essentially when someone either can't or doesn't want to pay its debt and then makes it a filing to the courts and gets to benefit from the very favorable Brazilian regulatory system towards debtors. So you can see a material increase in Q3, which we don't have the data yet published but the situation just remains really, really negative. The government, though, has been trying to help. So there has been a few initiatives to try to bring more credit but nothing that has been able to materially benefit the sector. Next slide, please. There's more information about prices on the different commodities on projections. And I think the overall feeling among farmers, among interest commentators is that there is a good level of optimism for the next cycle, for the next year. And we hope everyone is right because quite honestly, I think we have enough of this great Brazilian agricultural crisis. So hopefully, next year, we go back to recovery normality. Next slide. So I would like to let you now take you through the numbers for the quarter. This is the very first time we're having a shareholders' call after we put out our results on rare earth. So I will be commenting on that as well, but I didn't want to have dedicated slides at this stage because as I said in the press release, I think we have to look at those numbers from the results from the fertilizer operations. And I think we need to focus on that and not allow those other shiny things distract us from the responsibility we have in running our fertilizer business and making sure we are making everything possible to take the company to where it should be and where we believe it will get to. So Felipe, please go ahead with Q3 2025 results.

Thank you, Cristiano. Thanks, everyone, for joining the conference. On Q3, the first point here is say that we had a positive EBITDA of $100,000, and this is the first time that we deliver a positive EBITDA since Q2 2023. You can see in the right side here of the chart also the EBITDA in each quarter since then. So we expect this improvement keeps going on and then just better year-on-year comparison from now onwards. On sales volume in Q3 2025, we had 85,000 tons (sic) [ 85,136 tons ], a 16% reduction compared to Q3 2024. In terms of revenue, we had -- the company had CAD 5.9 million in revenue. It was an 18% decrease compared from the same period. In terms of gross margin, excluding freight, we can see in another chart that we have both gross margin with freight and without freight. You can see that we were in line with 2024. It's a good news. And freight is something that really impact our results since it's accounted in the revenue but not in the cost since this is SG&A. So for this reason, it's good to always analyze early without freight, the gross margin. So like I said, in this situation here, we had a flat number of 60% on GM compared to last year. In terms of net loss, we had an improvement -- reduction in our loss from $2.3 million last year to $2.1 million this year. And this reason -- one of the key reasons we see in the coming charts as well that it's due to our bad debt provision reduction. In terms of cash, we had on hand a bit more than last year, CAD 3.6 million. However, it was mitigated by our receivables in the quarter from $11.3 million to $7.9 million delivered in Q3 2025. And also another good news that we have already disclosed that during the period, we were granted with a new patent related to microorganisms. And they're now Verde has 5 patents and another 3 applications pending. So this was also an achievement in the period. In terms of financial operation results, one of the key points that I need to highlight here is the allowance of expected credit losses, which is the old bad debt provision. We had a significant improvement from the prior period of close to 80% from $785,000 to $163,000 And this is mainly driven by a rigorous credit approval policy that we've implemented since the beginning of the crisis which was like mid of 2023. And now that we are able to see that the results, in one hand, it reduced this bad debt provision. But on the other hand, of course, we lose also sales and this impacts our company in the top line in the short term. But I believe -- we believe that in the long term, that's the correct decision and strategy to avoid late receivables and avoid new bad debt provisions in the coming periods. So as I mentioned before, then we had a net loss improvement from $2.3 million negative number in the period to $2 million (sic) [ $2.1 million ] in the current quarter. In terms of operational summary, in terms the first chart here, the first table, you can see the numbers, including freight, as I've mentioned, and you can see the key numbers per ton. We delivered a slightly improvement here in terms of cost. But on the other hand, we lost a bit on the revenue per ton. And this was mainly driven by Brazilian real devaluation in the period. And then as I said, we had a gross margin of 75%, including freight. But when we exclude freight in the last line of the chart, you can see an average gross margin of 60%, which is a quite good gross margin. And this is a sign that we do have very large capacity compared to what we are currently selling and the expectations when we are able to leverage our volumes is that we deliver a lower cost per ton. We do have some costs to be diluted. And of course, as you can see here in the SG&A, most of those costs here are fixed, except on fee paid to sales agents among some others, but most of the costs here are fixed. And once we grow in volume, this will be very good news for our bottom line results. On this line here, we can say that in sales and marketing expenses, we had a slight improvement, but was offset by the fees paid to sales agents. This is part of our strategy. We switched last year from some full-time employees to other type of sales agents in the field. These people and this sales force, they work normally with higher level of commissions. But at the end of the day, they have lower fixed costs. So for the company, we believe that's the good correct strategy for the coming periods as well. In terms of general expenses, we had a 9% improvement from $1.054 million last year to $955,000. This year, we can see here that most of it was driven by legal or professional consultancy. We had some achievements made in terms of accountant firms, for example, and among other consultants that we used to have from U.K. from the private period when the company used to be based in U.K. or Singapore and some important reports and analysis we are doing internally in Brazil at this point. So this also helped us to reduce SG&A expenses, which is one of our focus at this point since 2023. So these were the key points that I'd like to share. Now we can move forward for the Q&A section. And I will ask Cristiano to verify and handle the key points, and I'm also here to support if anything is needed. Thanks, everyone.

Thanks, Felipe. So starting here with the first question. So the first question is about a Brazilian ethanol producer, a fantastic company called FS. It's in Mato Grosso. It's one of the world's largest ethanol producers out of corn. And we've sold to them in the past, and we have some discussions going on with them. And I will use this question here to give a -- to remember everyone about the carbon footprint of conventional potash. Carbon footprint of conventional potash is significantly higher than ours. So every time a farmer switch from conventional potash to our product, he is immediately saving a lot of carbon. So we're working on something, hopefully for next week in line with a very big announcement from some scientists that should come out showing that the carbon footprint for potassium chloride, which is conventionally adopted, relied upon by producers, by the industry, grossly under quantified the real carbon footprint in a more eloquent way. They should be accounting about 2x of the carbon footprint of KCL as they're currently accounting for in their models. So we are hoping for this to be released next week. And we are preparing something alongside where we highlight our significantly lower carbon footprint. This might sound a little bit a Snowflake kind of conversation, but there's some concrete business implications of carbon footprint in Brazil. So it's no longer just a marketing, and I would say even globally, it's no longer just a marketing ESG type of conversation. The European Union has demanded that I think from 2 years from now that every -- Felipe, I -- we can't see you anymore, the screen. I don't know if this thing has changed. Yes, it's better. So we can't see -- so from, I think, next couple of years, every clothing item bought in the European Union will come with a label where the carbon footprint will have to be stated. So if you're buying a top, whatever it is, it's going to say this has a 50 kilograms carbon footprint. So we think there will be a stronger pressure for people to qualify. And we're seeing that from talking to growers, especially of cotton in Brazil. Brazil is the biggest exporter of cotton, I believe, by quantity. And this is an industry that's being impacted. Of course, the other 2 industries, Felipe, the question you just mentioned is ethanol production, be it from sugarcane or ethanol, big sectors where carbon footprint already matters. And hopefully, we will be able to provide an even greater edge I love those calls because those questions are like there's so much stuff we're working on. And so I have my teams on the other screen, my phone. So everything there's an insight here, I fire a message here to our Chief Revenue Officer, Marcus, reminding him and chasing and doing follow-ups. So this is good for me as well. The next question is, when is Verde AgriTech going to approach the banks again to discuss renegotiating the debt due to the grace period expiration? Yes, it will expire soon. And we're getting ready to walking, speaking softly but getting a very big stick. So we're working on it, and we're very confident that the banks have every reason to continue supporting us. There's no doubt about that. The other question here, given the proximity to earnings concession and peers like Aclara and Meteoric, what early indicators suggest Verde's place could achieve similar or better absorption efficiencies or operating costs? It's a good question. I think the press release we put out with the quality of our concentrate already demonstrates how much potential our rare earth deposit has. It's very exciting. And you can compare effectively our grades, our initial results versus what Aclara and Meteoric have reported, and you will get your own conclusions by doing that. One problem you might face is that those are the companies, at least we couldn't find in their material as much disclosure as we are offering to shareholders. So we're going down to the detail on amounts of thorium, on amounts of uranium, which because we're lucky, it's below detection, thanks to mother nature. But those are the companies from -- to the best of our knowledge, they only seem to present a relative statement saying that it's a low contaminant concentrate, a low contaminant recovery. This is the crux of rare earths. This is the crux of rare earths. If you have radioactive elements in your concentrate, you're really restricted to whom you can sell if you're selling outside of China. For example, Norway, where there is a big separate under construction, it's probably going to be one of the very first ones to be commissioned. They literally cannot buy a concentrate, [ MRAC ] if it has any amount of radioactive element because that's the legislation in Norway. So that's the same thing in a lot of parts in the U.S. and even where there is a certain level of tolerance to radioactive elements, even where there is a certain element of tolerance to radioactive elements, it has a massive impact on the company operating in the United States. So being able to cut down to 0 is a massive edge we hope we will be able to build on. Just so you understand from a geological perspective, where Meteoric is, is literally next door to a decommissioned uranium mine in Brazil. So it's literally next door to a decommissioned uranium mine. And it sounds like that explains why the CapEx was so much greater because there was so much engineering CapEx that was required to look at removing as much of that uranium from their concentrate. So it is a very exciting rare earth project we're developing. It's something we're putting a lot of energy on. But as I said at the beginning of the presentation, I don't want to take away by expressing how excited about rare earth. We don't want to divert the focus here, which is really the numbers, operating profitability, cost reduction where necessary, correct strategies to accelerate growth, relationship with farmers. So we're taking all of that very, very serious. The other question about the recovery of doubtful debt. Has that changed this quarter? What are we seeing? I will allow Felipe to give more color about, one, our efforts recovering cash from farmers who owe us as well as an overall view on our balance sheet, on our results as a result of farmers who want paying us back.

Yes. We have since 2022 or '23, sales that we were not able to collect due to the crisis that was mentioned before. What we're doing, we -- sometimes we renegotiated with farmers, although it maybe sometimes are longer terms, but some of them, they went to this recovery protection. And then the only way that we have is to -- alternative is to wait. But also on the other hand, we have a specialist consultant and a law firm that works in this sector that support us with each client that do not pay us and we are not able to negotiate directly. So we do expect -- we already had this year, 1 or 2 that we were able to collect after like we enter the court, et cetera. But we do expect maybe in the coming years that even the bad debt provision could be positive because we had already booked a relevant value since 2022. And once we start to stop to have new entrants in this line in the accountants, we could start to reverse provisions made earlier in case we do collect or do have new agreements, et cetera. So my expectation is that the worst in terms of bad debt provision has already behind. But of course, it's -- it's mainly driven by our policy and restriction on asking for more warranties for some collaterals in terms of have long-term sales. Sometimes we had a hard time discussing with the commercial area that they really want to push to sell, of course, their job. But on the other hand, we have the financial analysts and credit team here that works really hard to try to mitigate as much as we can and reduce the leverage on bad debt provision.

Thank you, Felipe. So the next question here is about ERW. And for some of you who haven't been following the company for as long as others, I will talk a little bit about ERW. ERW stands for Enhanced Rock Weathering, which is one of the most promising carbon capture technologies out there. The reason it's one of the most promising carbon capture technologies out there is because once carbon is removed via ERW, it's locked for -- I won't say forever, but for hundreds and hundreds, if not thousands of years. So it's one of the ways to capture carbon which buys an industry called a permanent carbon sequestration technology alongside something else called direct air capture, where you're removing carbon directly from the air and storing it. The reason so excited about ERW is because it can be truly scalable and the costs for developing it aren't as high as the technology I just mentioned, direct air capture. The reason permanent carbon capture is so much superior than the other ways to capture carbon like planting trees and or preserving trees or soil carbon is because with those ways or those technologies, there is a risk of reversion. So there's a risk that, that forest might get fire. There is a risk the farmer might change the way he farms soils. And then automatically, as a result, a lot of that carbon gets released back to the atmosphere. So we started working on this technology a long time ago now. And we've done a tremendous amount of tests and development, scientific development because our rock is different to the other rocks, which are commonly used to capture carbon, which is mainly basalt. However, we have some massive advantages. We have some massive advantage because our rock is much softer than basalt. We have a very strong control of the quality, mineralological and chemical composition of the rock, which is essential for MRV measuring, reporting and verification, which is at the heart of proving to the industry how much carbon you're truly being able to capture. So we've been working on that. And we're very close to making a very substantial, very substantial announcement. Repeatedly, people would ask me, when am I going to say something? And then we kept answering consistently that until a point in time, there was something material to be disclosed, we wouldn't, we wouldn't do so. And what we are looking for in terms of something we call material is something that is potentially much bigger than a small carbon credit segment. So what we're calling material is not saying we've sold $1 million or whatever small amount of carbon credits is. What we're looking for is a potential partnership with a leading partner that could open the door for potentially hundreds of millions of dollars of carbon credits out of ERW. It might sound crazy when I talk about hundreds of millions of dollars out of revenue from ERW. But I was as surprised as you probably are throughout those conversations, throughout this development. What seems to be happening with this space is that the hyperscalers driven by all the investment on AI, driven by how carbon intensive it is every time you chat with your Grok or with your ChatGPT. Those hyperscalers, they've identified they have this massive liability to this technology. They have this massive issue. So they are throwing money, which relatively is less than what they're throwing money at their $500 billion CapEx announced for next year but they are equally throwing money to address their carbon footprint. And what I've been told is that from all of the different technologies they have looked at to mitigate emissions, ERW probably ranks as the most promising one. Don't take my word for that. Elon, by his foundation, organized a big prize last year for -- to look at the most promising technologies to capture carbon, the most promising technologies to capture carbon And the winner, but not just the winner, but the companies that came 1, 2, 3 and 4, I think 3 out of 4 companies were working on ERW. The big winner was working on a software application that just got a $40 million check out of it. So ERW is big and is getting bigger and bigger out of the carbon emissions by AI. We see that on prices. So ERW carbon credit prices are at the moment, around $400 per ton, $400, $450 per ton. In the very best case scenario, those hyperscalers expected to come down to $250 per ton in a dream scenario. So it is an enormous business. It is an enormous business that no doubt is materially bigger than fertilizer business. One could hear that and say, hey, let's stop doing fertilizers, then let's just focus on doing ERW, which is a fair proposition. However, what I love about ERW, which we're very close now to making some significant announcements. What I feel really excited is about something some of your investors are very familiar with, which are uncorrelated investments. I'm sure all of you will look forward to having some -- different ways to have uncorrelated investments in your portfolio. So as a company, we equally are looking to have uncorrelated source of revenues to the company to make the company resilient not to be as exposed as we've been in the last few years to the agricultural cycle. So we love the fact that we could potentially be adding a revenue stream which is potentially far, far, far bigger than fertilizers and driven by a completely different dynamic, i.e., artificial intelligence. I might sound excited but I'm actually way more excited than you might think I'm excited about all of that because I've seen how hard our team has worked on this for a very long period of time, how difficult it has been, how complex it has been. And I feel excited that we're now coming to a massive milestone that will address that on a holistic way on a 360-degrees approach that will open a whole range of different possibilities and opportunities from this. So we're extraordinarily excited about what is potentially to come. Let's go on for the next question. Next question. You've confirmed -- you confirmed [indiscernible] absorption and strong leaching results. How many holes are planned and what total meters of target to support a maiden resource by Q1 2026. Will those results cover multiple zones or just the most advanced block? It's a very, very important question. The problem with the district scale discovery is that it puts you in a hard position to make choices and to focus. So there's, of course, one strategy, which would be let's go out and try to drill the biggest resource we can as soon as possible. So we come out with potentially 1 billion tonnes. it's exciting. It's great to be waving your hands saying you have 1 billion tonnes of rare earths but we are not sure that this is necessarily the best strategy to start with. Given time and given the results we've shown and given the fact you're all familiar with Oby Critical Minerals, I don't think it's too hard for you to see the really district scale, the sort of size you have there. What excites us the most is the possibility of outlining a very high-grade resource capable of producing a highly valuable and extraordinarily pure concentrate. So this is what we're targeting. It's not the, waving hands, hundreds of millions of tonnes. It's a very high-quality resource. So drilling is targeted for that. And that's what we hope to deliver. We hope that with Q1 resource calculation, we will be able to point investors to a resource capable of potentially supporting a very profitable operation that will be the object of the preliminary economic assessment to be developed on top of it. You've indicated ANSTO will conduct metallurgical work. Can you share what specific recovery metrics would be considered commercially viable and whether Verde aims for a mixed carbonate product or fully separated oxides. So there's a couple of questions here, Jay, and I will address them. ANSTO is a research lab in Sydney, Australia, which is probably the best and most reputed lab led by 2 phenomenal engineers to whom we've been talking for a long time now in working on flow sheets for the recovery of ionic place for the recovery of rare earths. The answer to your question isn't very simple because it will really depend on the results we achieve and what sort of quality of concentrate and CapEx you want. So for example, you can get to a concentrate that is extremely free of cerium, for instance. You can have a specific dedicated flow sheet to remove all the cerium or lanthanum, which a lot of the separators don't want, but that will add CapEx, but that will also allow you to increase how much praseodymium which is what really matters dysprosium, terbium recovering from a concentrate. However, there might be a situation which is more economic, which is to reduce how much praseodymium, dysprosium, terbium, how much of the magnetic rare earth oxides you're extracting from the total rock. So you work with a small recovery, overall recovery. But by doing that as a Phase 1, you're also not leaching a lot of cerium -- lanthanum. That way, you're having a -- you have a concentrate that's a premium one, which is way more desirable. So I'm really looking forward to the stage of work. And I think we're very well advised and well equipped to deal with that stage of the development. And I think what is different from our approach to what a lot of -- to how a lot of other folks have been approaching this situation is that we think there is a real potential for building a smaller plant to start with and to get to production very quick rather than engineering a massive plant that would cost hundreds of millions of dollars and getting delayed by a longer term of financing and permitting. My dream scenario, we would have a Phase 1, which is a highly economic, small profitable plant, followed by a Stage 2, which would be this bigger plant, and then you could have an overall combined Stage 1, Stage 2 NPV in this order of magnitude you might expect. However, you can truly get to production with a very modest CapEx, very modest operational risk. But very importantly, very fast because I need to remind you that we're lucky that a lot of those rare earths were discovered in concessions where we are currently producing potash. So we already have the mining permits. We have the environmental impact assessment done. It's not the same rock, it's next to it, but areas that we have already done an environmental impact assessment and have already evolved from a regulatory perspective that to allow us to get to production very, very quicker. So there is a -- we're not approaching it like all of the other companies, I have 200 million, 500 million tonnes. I'm going to do 50 million tonnes, I'm going to have a CapEx of $1 billion, $500 million. No, we're looking to be fast, smaller CapEx, get to production Phase 1 and then show Phase 2 and then derisk. And we're lucky because from the results we reported, it looks like Mother Nature was very nice to us and gave us the opportunity to think about that because if we were, for example, right next to a uranium mine like Meteoric and we had to invest hundreds of million dollars to remove uranium and thorium from the concentrate, we would have this choice or if we were someone like [indiscernible] or Aclara that are dealing with very, very, very low-grade resources, you can see the comps. Then again, you need to go for scale. Otherwise, it doesn't work as a business. So very thankful to Mother Nature so far. Let's hope we carry on as lucky as we've been up to this point, and we're excited. We're excited about the potential and also excited about how cheap the development of it can be. For those of you who aren't very familiar with ionic clay. For those of you who aren't very familiar with rare earths. I also think, [ seller-ship ], maybe we should do a call just to talk about rare earths. But you have essentially 2 different types of rare earths. One is hard rock primary, which is very expensive to mine. It is nasty from an environmental perspective. It takes a long time ultimately, you end up with radioactive elements, so that's hard rock or you have the holy grail, what everyone is looking for, which is your ionic clay type of resource. Ionic clay, essentially, you have nature over millions and millions of years via weathering, extracting those rare earths from hard rock deposits and migrating them to be absorbed by a clay mineral deposit. So when you have ionic clay, you have the opportunity to extract that commercially very cheaply and simply. All you need to do is to go to -- and you can probably do it at your home, you go to your garden, you get a bag of ammonium sulfate, which you use as a fertilizer, then you get a can of Coca-Cola, which has a low pH. You wash your clay with Coca-Cola, so the pH goes down to about 4. Then you wash it with ammonium sulfate, which is on a garden as a fertilizer, then you get that juice and then that juice is going to have the rare earth absorbed to it. So it's as simple as that. Of course, we're not going to be using Coca-Cola. We're going to be using cheaper sources of lowering the pH to 4. But Coca-Cola would probably be too acidic in all this. I think the pH of Coca-Cola is less than that. So it's probably not the best reagent. And it allows you to be doing something potentially scalable. So I had promised I was going to focus exclusively on fertilizers, but you guys are asking the questions, and it's not my fault if I'm getting excited because there's a lot to be excited about rare earths and ERW. Where's the other question. So Verde has patented and marketed several specialty products lately. Due to the sector crisis, the market has mostly sought cheap entrant. When do you expect those specialty products to pay off? What you've seen from the patents or applications we made several, several months ago takes 2, 3, sometimes 5 years for them to get published. So we're very pleased that the ideas we had and we tested are now being recognized with patents on those specialty fertilizers. The second part to the answer to your question is that when you think about specialty fertilizers, if you're in the industry, you think about fertilizers that are more expensive to farmers than what they currently spend but deliver better yields. What we do doesn't increase costs for farmers. So for example, if you look at [indiscernible] , if you look at Ida or Cabi, the range of specialty products, all of those other products, they're replacing other products fert farmers are already using, but it's doing that in a more effective way, in a more profitable way. I also think perhaps you should have a whole call just talking about some of the agronomic results because there's so many -- we received so many phenomenal agronomic results of our products in this last couple of months and so much exciting stuff there. And this [indiscernible] , we increased the amount of phosphate available for crops. It's a whole presentation just on those benefits. And I think it's something we should look to organize it as well. The other question here, with regard to ERW that you were just commenting on and are excited about, how much annual capacity from your current 3 billion tonnes plant could that use if the deal were to happen? Do you have enough capacity with your current infrastructure? Let's put it this way. If those big buyers, those hyperscalers, if -- you're right, if it's true that they have this unlimited purchasing demand, they are telling people they do and they want and they want it to be developed. If they're right, their carbon footprint is massive. I don't think that if we were to produce 50 million tonnes per year of our rock and apply it all capturing carbon, I don't think we would be able to fully offset what their carbon emissions are and how much they want. And this is even $0.5 trillion invested in data centers for AI. So it's something that I was talking the other day to a very senior analyst in the fertilizer space. And we had some interesting conversations or he had some interesting opinions about what might happen to potash producers in face of ERW and in face of the need from hyperscalers to be able to deliver a more society-friendly answer to data rooms and climate change. So yes, yes, it is big. And if you want to extrapolate it even more, you can even start thinking about potash -- conventional potash producers becoming roadkill in the fight against climate change. I would say a little bit more, becoming roadkill perhaps not in the fight against climate change but becoming roadkill in the narrative construction to society about how AI can be sustainable. I think it's -- we need to be much more pragmatic than just thinking about climate change. I think we need to be much more pragmatic. We need to think about the hyperscalers. We need to think about the amount of money they're investing in data centers with AI. We need to think about what that means in terms of a carbon footprint. And we need to think about how they can build a narrative that is consistent with the future most of society expects and what most of society expects from companies. So it's something that has taken a long time to happen and hopefully, we very close to announcement. And yes, and I think it might be the beginning of something truly, truly, truly amazing for all of us. Thank you very much. I would like to thank all of you who have joined us today for this results call for Verde AgriTech. I was hoping to be talking way more about fertilizers but your questions led me to talk about ERW and rare earths, and it's hard not to be excited as I hope you all understand. But if any of you can think or have any other questions, confusions about the fertilizer space or even ERW or rare earth, please do not hesitate to contact us. If you're watching this on YouTube, likewise, thank you for your interest. Please share it among other people who might be interested in what we are doing. Thanks a lot. I look forward to seeing you very soon, talking to you again. And maybe who knows, we can have something or a few of those events before the year-end, hopefully talking about, one, ERW and why those potential news are so significant, so transformative, so potentially transformative for the company and the overall potash space, but equally important, how our early results on -- from drilling results, which as announced, we expect to be disclosing in the coming weeks as well, how those announcements will help shaping our strategy and what are the potential for near-term monetization and by pursuing a smarter, I call it, a smart approach to developing those assets, which we potentially could only do thanks to Mother Nature. Thank you, everyone. Bye-bye.