Verde AgriTech Limited ($NPK)

Hello, and welcome to Verde AgriTech Q1 Results Conference Call. I am here with our Chief Financial Officer, Felipe Paolucci. And I am glad to report there are a growing number of shareholders and interested parties joining the call as well. Thank you very much for watching this video on YouTube. Thank you for your interest. If you like what you hear or if you know anyone who might be interested, please follow this video as well and hit that button, so other people can find out more about Verde AgriTech. We will start today's presentation like the usual with the market analysis, the market update of what's going on with the fertilizer sector in Brazil. Then Felipe Paolucci is going to give a detailed presentation of the numbers of the financials, which were found on the press release, released earlier today. And at the end, I will be answering questions. So if you have any questions throughout this presentation, please click on the chat -- on the Q&A button, I'm going to go over them during the call. So Felipe, would you like to share your screen so we can start the presentation? So as we begin, I would like to remind you that this presentation contains forward-looking statements and actual results might be different. Do take your time to read our disclaimer and forward-looking statements. In the next slide, we start talking a little bit about the fertilizer market, which if you have been following Verde AgriTech for the last 2 years or 3 years now, there won't be much surprise here. There isn't much difference here. So we continue operating in Brazil with some of the highest interest rates among developed economies presently at 14.5%. There's a lot of discussion about inflation globally at the moment. A lot of it to do with the conflict in the Middle East. And what is happening in Brazil up to this stage is that our state-controlled company, Petrobras has been holding up the prices for diesel. So most of the price for diesel haven't been transferred to the Brazilian fuels yet. So they've been absorbing that. But at some point, this will happen. Of course, this has an impact on the perspective of the Central Bank to continue lowering interest rates. And the last forecast, the last commentary is that it's unlikely to start a radical reduction anytime soon, and we will continue to operate with high interest rates, which obviously aren't good for us or farmers operating in the country. Exchange rate has also been moving against us, has been a pattern for a while, as you know, because we sell a product that also replaces imported potash as the Brazilian currency strengthens. The price for potash for our product becomes less competitive against imported. But also very importantly, farmers sell their agricultural commodities also priced in U.S. dollars. And as the Brazilian currency strengthens, it represents -- as a consequence, we get less money in the bank. The next slide. In the next slide, we see the results of everything we have just discussed on the top right-hand side of this slide. So the number of companies in Brazil in the agribusiness sector applying to the courts for creditor protection continues to increase significantly. So this is the data from 2025, the full year versus full year, but there's already reports, plenty of reports of how much it has been accelerating throughout 2026 as well. As a matter of fact, it's very sad to report that the country's largest fertilizer distributor, the country's largest agricultural input distributor, a public company called Lavoro has been reported in the news that they've stopped paying all of its creditors as well. So it sounds like there's another colossal insolvency in the making with this company called Lavoro and alongside thousands of farmers. So the situation is -- and it's a situation we follow daily, of course, because a lot of our customers, they were able to apply to this judicial recovery as the slide decided to name it. And what we see is that they end up getting a bombastic 90% haircut to the amount of money they owe us. So throughout the process, they managed to reduce their total debt, let's say, from 100 down to 10. But not only that, the 10 left to be repaid. It gets to be repaid over several years without any sort of correction. So this is the system we've been operating. Farmers haven't been paying anyone. And the agricultural inputs of the distributors like this company, Lavoro also decided we don't pay anyone. So it's a bit crazy. It's a bit surreal, but it has been a reality, as you can see, growing reality from 2023. There is some speculation that the government in Brazil might be putting together some sort of bailout for the sector, for the agriculture sector, but those are unconfirmed speculative reports of some sort of sector bailout, which would help not just farmers, but would also help the sector as a whole. What we're seeing underneath, which is a bit of good news is that the price of potash has been going up. So throughout this year, price went up around $50, which has offset the strengthening of the Brazilian currency. So at the end of the day, the delivered price of potash to the farmers because the Brazilian currency also strengthened significantly didn't change that much, but at least it's moving in the right direction. Before we move to the next slide, what I would like to add as a forward-looking statement is that there is always a possibility that given the conflict in the Middle East and the significant increase in the price of mainly urea, phosphate, but mainly urea, we will see a potential significant increase in food prices. They haven't materialized yet, but there's a lot of speculation that as some of the harvest might suffer from farmers reducing the amount of nitrogen fertilizer they use, there is a possibility that we might see lower yields. And as a result, we might end up seeing a strengthening of food prices. This is what drives farmers' economics, obviously. This is what helps turning this situation around and allowing us to get back to some sort of normality, allowing the whole Brazilian agriculture sector to get back to some sort of normality, which has not been the case. I was talking this weekend with the fund manager from one of the world's largest natural resource funds, and he was telling me how bullish their fund is on nitrogen. But at the same time, how they've been shortening the suppliers like John Deere and the other suppliers given how packed or cash farmers currently are. Next slide, please. Q1 results. So I'll ask Felipe to talk a little bit about the results. And after he talk a little bit about the results, I can start to answer questions, but I can also comment a little bit on the renegotiation or the discussions with banks. Please go ahead, Felipe.

Thank you, Cristiano. Thanks, everyone, for joining. Related to Q1 financial key highlights, we can see that revenue in the first quarter was $1.7 million compared to $2.9 million in the prior year, and the total volumes sold decreased from 47,000 tonnes to approximately 27,000 tons. On the other hand, in terms of KCl, which is related to bad debt provision, the company declined to close to 0, the amount that was booked in Q1 compared to $500,000 last year. This is mainly driven by the strategy that we are working on since 2023, where we do not provide credit to anyone that we have doubts on terms on if you're going to collect or not. So at the end of the day, it impacts our sales. On the other hand, we expect to have lower ACL as well. In the end, we have an EBITDA before no cash events improving modestly to negative 1.3.

I add a little bit more color to this sentence here from our Chief Financial Officer, Felipe Paolucci. You guys have no idea the numeric battles going on between our sales team and our credit team, of course, our sales team eager to sell. But on the other hand, we have to keep them in check given all the risks which we are seeing in this space. There has been some very, very interesting fights to say the least, which is good to see, but it is the reality of the sector at the moment.

Yes. So what happened is that we were able to deliver a very close compared to last year's EBITDA and net loss. And also, in terms of cash, the company held $6.4 million in the quarter, plus $5.2 million in short-term receivables compared to $2.5 million last year on hand and $7.7 million on receivables. This increase in cash position was mainly driven by the private placement that was concluded in Q1 with a net proceeds around $4.0 million. Also to support the current moment of the company and the market, we are working since the beginning of this year. We worked as well last year on this, but in a cost reduction program and plan where we are looking and we are always looking since then for each kind of cost, cost center expenses, contracts, 3PLs or even team, the headcount, et cetera, trying to find out opportunities and deliver savings and reduce costs. So we've already achieved -- project to have this year savings on BRL 7.5 million. And during 12 months period, a total of approximately BRL 9.4 million on savings. This is something that we will keep working on where we have a chance to reduce, to mitigate cost or to avoid expenses, we are going to do and work on it. So in the table here, you can see the financial statements. We did have a relevant impact in our cost per ton sold, where you can see an increase from $16 to $23 per ton. This is mainly driven by the lower volume impact, which it has the fixed cost that should be allocated to lower volume with this impact to cost per ton. And also, we did sell a bit more products, specialty products and products from Plant 1, which has a higher cost than the regular product. In terms of revenue per ton, you can see a slight increase as well. This was supported by the exchange rate, and there is no relevant impact here. But the key point is that we were able to deliver approximately the same EBITDA and net loss compared to last year, which means that hopefully, once we start to grow again, we're going to deliver better results in the bottom line. In the operational summary per ton, we can see the impact that we had in our gross margin in the top of the chart, including freight expenses in revenue. And the second part of the chart exclude freight, the margin remains decreasing from 56% to 41%. And this is mainly driven, as I mentioned before, by the impact on cost due to lower volume that hit us on 44% the cost per ton and also the product mix, as I mentioned before. In terms of the SG&A, we can see that we started already to collect a bit on the projects that we are implementing on cost reduction. We have the total sales expense reduction from $851,000 to $727,000 in this period and also in the general administrative expenses, although we do not see at this point a relevant impact. Of course, we had some severance fees that impacted us in Q1, but we do expect this amount to have a higher reduction in Q2 onwards. So this is what we have for finance. Now I'll pass it back to Cristiano to cover a bit on other projects.

No, I think before we jump into rare earth, I think there's a few things we should be talking about. You can stop sharing screen for now, Felipe , please. I can see a lot of the attendees list. I can see a lot of familiar names, some people who I haven't spoken in a while are showing up. So please do reach out. You have my contact details, so we can catch up as well offline and tap. So the pressure is bad for fertilizers and keep cutting down costs. We have made a lot of strategic cost reductions, but we have also done -- created a bit of a pipeline of further cost reduction, which pretty much keeps up with the development of agentic AI. And then some of those reductions are already a consequence of that. So we had teams where perhaps you had a manager and 1 or 2 more people, which has now gone down just for the manager doing the job using agentic AI for the other two roles. What we are already preparing, given what we're seeing, especially with products and how you implement that in your workflows, what we're already doing, and Felipe has this in the pipeline, is that a same manager who perhaps looks after one area is going to start looking after a second area and taking on those agentic. So this is real, and it is really helping us. But not only helping us on a cost reduction, but also helping us on making the work much more efficient. So some of the work, some of that would take one person, one day to get done and would cause a further delay in the company. We're getting it done with AI in 15 minutes. But what's also phenomenal is how it is making everyone more dynamic. So for example, in our sales team, we have a phenomenal team, which is our customer success team with a number of PhDs whose job is just to be following up with the farmers and looking at the trials and following up with the results and the benefits and everything else. And this team has been able throughout the last few months to witness and register a number of phenomenal results of the usage of our product on field. And they've been sending photos, they've been sending the data. So just by challenging them. And then all of this would fall into a pipeline, go to our marketing team, which is now down only 2 people at one point, we have 10 people, but now with AI, it's just 2. You would get down to this team and we get into a pipeline and it would take a little bit to turn into something. So with AI, pretty much now this team has its own agricultural Marketing Director, design, everything else. And it's been fascinating to see the level of stuff they are putting together. So they pretty much go to the site, get the things for the report, everything, take the focus, use ChatGPT 3.0 to do a phenomenal banner, straightaway share of all of that. So it's very, very exciting to see how it has been expanding the capabilities of our team. What I also would like to say from the financial results, you should see is the situation with our creditors. For those of you who have been following the company for a long time now, you will remember how in the past, we were trying to negotiate with the banks, and we weren't getting anywhere. And we decided to -- after falling advice to tell the banks, we're not going to pay you. So we can negotiate properly. And after that happened, you saw the press release, we got some very interesting renegotiation, which a lot of investors couldn't believe when it was announced on how good the terms were and how we were able to allow banks to accept that we wouldn't be paying pretty much anything for 18 months, and then there was some reduction, but this is what happened. But unfortunately, what we've seen happening as I mentioned in the beginning of the presentation, is a worsening of this agricultural crisis in Brazil by no one is paying anyone. And when no one is paying anyone, that kind of forces your hand to go back to the banks, which is what we've done, but they've been very understanding as well to go back and say, look, we shall need to do the same thing and let's negotiate, especially when the norm seems to be that anyone who does that currently is getting a 90% haircut on its debt. This seems to be the modus of the resi. "Hey, I can't pay. I'm only going to give you 90% -- 10% what I owe you and the 10% is going to be paid over 3 -- over a very long period of time." So we're doing this. We are very well equipped to do that with Felipe. He has a phenomenal adviser who is helping him. We might have some news as well, which I think will strengthen this strategy. But as a shareholder, I have to say, even if it is a forward-looking statement, I think this will be the reality for the sector in terms of how this debt is dealt with, unfortunately. So shall we move on? I can see the questions here. There's a lot of questions here now about rare earth. So let's talk a little bit about rare earths, okay? Do you want to put the presentation on rare earths via our Felipe, please. I was going to give an update on something else, but then I saw there was a question here. I'll address that when I answer that question. So Minas Americas Global Alliance Rare Earth Project. As some of you might remember, Verde AgriTech at one point had 200,000 hectares of a very prospective area in Brazil, the nominal geology. And in this area, we did a lot of drilling. Some of it was for potash, but some of it was looking at other minerals. We kept some of that drilling -- and some of that drilling, we reassayed good few months ago. And when we reassay them, we saw some phenomenal rare earth results on drilling we had executed. We then sent that to the labs. We saw there was ionic clay, the absorption and the results are very exciting. We reassayed the whole thing. We did the resource calculation. It came up with 1.3 billion tonnes. We're very excited. Then the rare earth sector had a little bit of hiccup at some point, but then it came back strong. And now we have this company, which a lot of you here are shareholders of. And some of you have met the new CEO, which I was very lucky to find and is doing a phenomenal job, a guy called Michael, and the company is looking very strong. It's looking extremely strong. And we should hopefully, in the very short term, have some phenomenal news about Oby critical minerals, which I think we're all going to be very happy about. So hang on, it's coming. It's coming and it's looking better and better every day. There was a good meeting this week again. So there's going to be good news there, even better news there very soon for our shareholders. But for those of you, for any reason, didn't -- were the shareholders of Verde AgriTech on the record date when the capital reduction took place and people got shares in Oby critical minerals. Some of you couldn't benefit from or won't benefit at least straight away from Oby critical minerals. Obviously, if it starts trading, it's there, so you should have a look at it. But some of you who didn't, there might be a second chance. And the second chance is Minas Americas Global Alliance Rare Earths Project. So when we did the Oby critical minerals, we did the spinout of all of the rare earths assets, which are rare earth assets where there had been drilling and where that resource had been calculated. But we kept all of the adjacent concessions all of those adjacent concessions, which account for thousands and thousands of hectares. And we kept those concessions where there was no drilling, but of course, it's -- it was prospective, it was prospective for rare earths. So we went on and did a lot of geological mapping of that structure where you hold a big resource, a lot of geological mapping. And it looked very strong, very consistent. You can walk over clay that -- and then we did a lot of sampling. We collected maybe 100 samples sent to the lab and the results were, very high-grade magnetic rare earth oxides. Rare earth is a way to talk about what really matters because when you talk about rare earth, it's -- you have 16 elements. And then when you hear people say, oh, this thing isn't rare, this is problem, blah, blah, blah, blah. In reality, what really matters when it comes to rare earths are 4 elements: neodymium, praseodymium, dysprosium, terbium. The rest is just like niche applications or so much, it's just pointless. But it's the magnetic rare earth oxides that really matter. That's where the price has been very strong. That's where the strategic relevance is and especially the last ones, dysprosium and terbium, the 2 heavy rare earth and magnetic rare earth oxides. Currently, the big demand is wind energy, EV batteries, but there is one demand which keeps growing. And we keep seeing a lot of videos on X of all of those humanoid robots running marathons and doing all sorts of crazy stuff. And then you had Elon Musk saying how pretty shortly he's going to do 10 million humanoid robots. And then there was a recent -- very recent paper by Bank of America because that was a very interesting one by Morgan Stanley last year, but it was a recent one where they're already talking about 100 million humanoid robots. And if this thing is true with everything we're seeing there is a great chance it's true. The increase in demand for magnetic rare earth oxides is monstrous, monstrous. So every movement you see, those are the actuators, -- those are the magnets, which are transforming energy into movement or movement into energy. So for you to have that, those magnets, this is [ MRO ]. And I'm only excited about this project. I want you to understand that. I love -- absolutely loved Verde AgriTech. And there is one question here, where I'm going to talk about something which is happening, which is really, really, really exciting. But talking about magnetic rare earth oxides in the Americas, I personally see the opportunity to be able to do what I did before. So I see here the opportunity to do the same thing again, to grow, develop the resource, get production and develop an asset. Hopefully, after learning with a bunch of mistakes and a bunch of challenges and which experience and all of the white hair, which some of you saw me growing over the last 20 years, I've been running Verde AgriTech. You can see the growing number of white. [Audio Gap] Hello. So my connection got disconnected. I'm back here.

Here's the section that I was as well. [Technical Difficulty]

Next slide, please. I've gone through this location is brilliant. It's a massive land package. The results are coming up very high grade. You've seen the very high grades of dysprosium and terbium from the last press release. You've seen we're talking about not just one target, but the possibility of being more targets. Next slide. have all the drillings. It's from surface. So it's all shallow drilling all from 0 to about 10 meters. It's continuous, it's high grade. It's a very strong concentration of magnetic rare earth oxides as high as 26%. That's high. If you look at the leachate, so we got our rock, we washed it, took it to get some of the rare earths out. And a lot of them came out already with the PH4 ammonium sulfate test. And what's crazy is the concentration of magnetics in the leachate was 40%, 40%. To give you an idea, N-P materials, which has a market cap, I don't know, $20 billion or something like that and growing. The concentration of magnetic oxides they have in that concentrate is around 14%. So 3x richer in leachate than N-P materials. It's exciting. It's exciting. Next slide, please. We have the team there from Verde AgriTech has been helpful. We currently have 5 drill rigs on site. We are hoping to get 2 more drill rigs by the end of next month. And we have an environmental team already looking at application for environmental permits. As a matter of fact, I have a full-on team meeting in half an hour on update and some of the stuff we're progressing. So it's all looking super. Next slide. Yes. So here comes an important decision we had to make, which was the resource. So I could publish a resource by the end of H1, okay? But by doing that, it's not going to be as big as if I publish it at the end of the year as a big Christmas present. So it was a bit of a tough decision for me if I wanted to give you guys a summer present, so you can enjoy it, sipping some caipirinhas on the beach, or I can get you an even bigger one by the end of the year for Christmas. So I decided to go with the latter. And I hope I believe you won't be disappointed. PA gets pushed a little bit, some of the stuff. We need to do the block model, of course, the mining plan once we have the resource. A lot of the stuff in terms of plant, plant sizing, flow sheet, met studies, everything is going to be done in parallel. So we should -- we're going to keep pressing with that. So it will be good. Next slide. That's it. Q&A. I'm happy. The number of questions has been increasing. Next question, Magnus. What happened to the monthly assay releases. Can we expect more frequent updates from now on? Is the MRE still on for H1 2026? I guess I've answered the second question. But the first question, what happened to the monthly assay releases? I am running 2 companies right now, Magnus. I'm running a fertilizer company, complex basis, a lot going on. And I'm running a rare earth company doing 7 with 5 drill rigs and everything and in a cost reduction kind of environment. So we've been a bit slower to put out those press release. I hope next week, we start shaping things in a way that it gets resolved going forward. So more to come next week. Stay tuned. I think you will understand soon. Next one, what's the reason for Verde AgriTech delay the answer recovery rate were? It's drilling. It's drilling. It's just like when you send the samples to answer, really expensive to send for them to do the metallurgical studies. And as we drill, we keep finding better and better areas. So it's just like really get to a point, say, okay, and off an off, even if we get more results later, we can redo this test. Let's just take the samples to send to answer from here as the different targets. So that's what's going on. But Bob Reagan says that. I'll be moving on pretty soon with you guys. Many more drill holes than Verde AgriTech have done since March. We will put the press release soon, I hope. Next question, could Verde not in current market conditions and situation due to geopolitical situation, high oil price take some risk appropriate opportunity of this situation indirectly and specifically targeting large-scale high creditworthy farmers with Verde products as a relatively current best purchase option versus oil-based fertilizer that transport? This potential customer may be more business, blah, blah, blah. Perhaps, with such large volume orders, a larger discount than normal temporary freight market basis. Yes. So it's a very important question, and I saw this question popping up here, and that's why I didn't give this update throughout the presentation. For those of you who have been following Verde for a while, you've heard me talking about large corporate customers for a long time. When I talk about the large corporate customers, I'm talking about the ethanol business, sugarcane business, where it's giants, okay? The smallest one is going to be doing 30,000, 40,000 hectares. So the smallest operator could be consuming about 40,000 tons of our products, 40,000 tons of our product per year. That's the smallest one. The largest one could be taking 2 million tonnes of our product per year, several. I think 15 million tons of sugarcane in Brazil, which alone could be consuming close to 20 million tonnes of our product. The thing about sugarcane is that it is very driven by technical validation. And this technical validation takes a number of years. So you can do one season, but the cycle of cutting and replanting sugarcane takes 6 to 7 years, depending on the variety of sugarcane you're growing. So a lot of that started a while ago. We also did some recent one with some of the key consultants for sugarcane. And finally, finally, okay, finally, we're seeing those outstanding results validated by the big consultants. There's some big discussions going on, big discussions going on with sugarcane. It's looking very, very interesting already for this year, but especially mark my words, especially for next year. looking very interesting. And some of the strategy, some of the stuff we're going to be talking next week as well, I think we'll understand a little bit more of the strategy better. So stay tuned. The other market and sugarcane because you have ethanol, you have sugar and corporations. It's slightly more immune to the credit problems, although the biggest one Raizen is not paying anymore. So it's in financial differences, but a lot of the other players are a bit more Raizen as well. It's a good business, a corporate grower, but it's something exciting. The other one which is extraordinarily exciting is pulp and paper. Brazil is the biggest exporter of pulp and paper and which is growing eucalyptus. So you have pulp and paper, but you also have charcoal from eucalyptus being used for steel production. So ArcelorMittal has 200,000 hectares of eucalyptus just to do charcoal for steel production in Brazil and the pig iron producers a lot of eucalyptus grown for biomass. And the other really crazy growing market for eucalyptus in Brazil is on producing ethanol out of corn. So for you to produce ethanol out of corn, you need to burn biomass. Eucalyptus is the key one. So there's a lot of eucalyptus being grown for that purpose. And with eucalyptus, like sugarcane, you're talking about large corporate growers. So Suzano, the world's largest pulp and paper business has about 1 million hectares in Brazil. And we have a number of other very large companies like ArcelorMittal and several others with thousands and thousands of hectares. But the problem, as you know, with eucalyptus is it takes 7 years to grow in Brazil. And because it's corporation, we have consultants, everything else before they can switch, they need to see the validation over 7 years, but the time has come now. So again, we're seeing a lot of those tests that started 3, 4, 5 years ago, we're seeing lots of harvest with outstanding results, outstanding results. So I -- mark my words, I have phenomenal expectation, believe that we have done a lot of work that should allow us in the coming months and years to harvest out of this previous 7-plus years of work on development now that we have the technical validation now that we have those results. So this background of what has been going on for so many years will also help understand something that's coming up next week. There's another company as well. It's Brazil's largest cotton and soybeans producer, which also has this amazing results, which we've been following up, which is another giant in terms of potential demand. Next question. The question here about ERW. So what happened, and I think I've spoken about that in the last call, was that Microsoft came back with some revised guidelines. Our partner is reviewing those revised guidelines. And what we've heard through the -- some of the reports, public reports that Microsoft, which was the biggest buyer, has been materially cutting back on its carbon credit purchases and some of the other buyers also. So this is something we need to revisit and we need to work a little bit harder in terms of finding the best way forward. But I think next week, there's one way as well that we should be able to get more traction on that. Next question, sure, you're keeping good relations with potential customers. We have had to reject very strict lending criteria to be sure it's made very clear that this is very much experience. Is that a clear communication? Yes, that's a good question. I mean, it's a good question, and it's a painful conversation to have with farmers and with our sales team because often, we have people who have come to us. They've been buying the product for 5, 6 years. They've never been late, but then you check their credit score. And it's all a suddenly, as goes the expression in Brazil, looking dirtier than a chicken's house. So the risk goes through the brief. And then our credit team say, we can't. We can't sell anymore, he's not paying anyone anymore. It's true. You paid for the last 6, 7 years, but he's no longer paying anyone you're going to sell. It's tricky. We try to do our best with the communication. But obviously, if you empathize and put yourself in the shoes of the farmer, it's very difficult. It's very difficult. To the question in terms of high cost of credit for farmers, it's not just the high cost of credit to farmers. It's the uncertainty whether or not the farmer is going to pay you back. It's a combination of both. And of course, because the credit is so expensive, it just makes it even harder to believe -- I think the development here in the question is with the trade. Yes, we've established a partnership with the traders, but even the traders when it comes to it to a lot of the clients, they are a little bit worried. Here comes a very, very interesting question. Why is the market not valuing the rare earth that NPK still has? Some people say that's the million-dollar question. But I think in this case, that might be bigger than the million-dollar question. I don't know the answer. Well, to be honest, I know the answer. I know the answer. For you, George, thanks for your question. For you to be able to get traction, you need focus from the company's CEO. And it has been very hard for me to run 2 business. It has been very hard for me to run a fertilizer business, complex fertilizer mining operation, growth, debt negotiation, development team and a rare earth business, metallurgical studies, drilling, land, environmental permit, metallurgical studies, different metallurgical studies. So it's been -- and even communicating the story to investors as well has been a bit challenging given everything which is going on. So stay tuned for next week. Talk a bit about ERW. We spoke about it and b, I got a little bit I got a little bit nervous when there was that big announcement about Microsoft pulling back on ERW purchases. But next week, we're going to try something different as well. And I was slightly concerned for you, not in a patronizing way with you looking thinner, no doubt due to extreme workload the obvious stress of everything going on. It's good to see you looking bright and healthier. Your hard work is very much appreciated and make sure you have the support in place to look out. Mark, thank you. It's been tough. There's a phenomenal team. Felipe does an amazing job. Markus who's our Sales Director, is a tremendous sales director. So some of you have been following the company for a long time. You've seen we have our share of disappointments with sales directors. But Markus is brilliant. He's so committed, so hard work, so smart and he's phenomenal. And the team he's built around him as well is phenomenal. The way the sales team is structured as well, where we have a very strong customer success team as well led by Diana. Everyone there is doing a phenomenal job. The SDR, sales development prospecting team led by Maiara is world-class. The inside sales team led by Carol, the field sales team operating with different focus as well by now by commodities, it's very good. It's phenomenal, absolutely phenomenal. And if we were not living this awful absolutely awful perfect storm we're living in, I have no doubt we would be in a phenomenal, phenomenal position. But we never stopped, we never will, and we find our ways. We find our ways around. And those results we're getting back on sugarcane and eucalyptus with all those large corporate growers with very strong balance sheets where even like the lower carbon footprint of our product has an advantage is something I'm very excited. And I hope next week, we're going to shape up the structure on one missing piece that I think will hold us back. But I think next week, we figure that one out. that investors should be wary of rare earth opportunities in Brazil due to the difficulty of regulations, permitting, et cetera. Thinking back 2 decades it took to get permitting minerals alone, this warning sounds credible. Stephen, you're absolutely correct. Good job. We understand shortcuts now. Good job. We went through this before. Good job. We made all of the mistakes that whenever I read the press release from any of those other rare earth companies operating in Brazil, led by geologists and first comers to the country and everything else. I said, they're falling to the same trap. Oh, this is -- they're going to follow the same hole we did. So stay tuned. It's -- we found our way with our potash, got production. We found some shortcuts with our potash. If you go back, you remember, you will see what we did to get production quick at some point and expand. So we kind of found the shortcuts on how to think about the business, how to permit, how to get production and the copy and paste this time. Next question. Thank you very much. So there was an introduction here to someone from the European Parliament. Thank you. We appreciate all the help, and we will follow up. It's not that Microsoft getting out, Gabriel, kind of it's the end of it because they haven't completely gone out of it. I think it's real that AI, perhaps not in the current administration, perhaps in a different administration, the carbon footprint of those gigantic data centers is going to be a question again, definitely not the case right now. But what we're seeing, which is interesting is carbon avoidance types of initiatives, especially from the European Union. So the European Union has been putting a lot of pressure on the supply chain of companies, and that is driving pressure, creating pressure on Brazilian farmers as well. So it is still something which is an important element of our strategy. That's the question. As the biggest shareholder, what do you expect the NPK stock price 3 years from now? I don't know. I'm not selling. I'm not selling a single share, and I'm very excited. Will we hear about the company being divided into 2 or more entities already next week? I don't know. We will need to wait until next week to see. Ladies and gentlemen, thank you very much for another call. I'm very sorry, the results for Q1 weren't as good as we all expected. Trust me, we did the best we could with the awful hand, which everyone in this space is being dealt right now. But very confident, very excited and I will talk to you very soon because right now, I'm going to drink some water and jump into the next call with our Rare Earths team, which hopefully has a lot of more positive feedbacks throughout. Thank you very much. Have an excellent day. Bye-bye.