Sigma Lithium - Q1 2023

Transcript

Ana Cabral (CEO and Co-Founder)

On the first page, I'm starting the disclaimer. We're gonna make a number of forward-looking statements here, so I encourage you all to read the disclaimer regarding the forward-looking statements. Sigma became the first global producer of zero carbon, zero tailings, zero chemicals, green lithium. In other words, we're enabling a transformation in the electric vehicles industry, and that's the excitement of what I'm gonna share with you. Ultimately, we achieved the golden crown of sustainability by basically focusing on the impact on land that the exams would have. Focusing on mitigating the impact on air by lowering our GHG carbon footprint and on water by not using chemicals in our hazardous not using hazardous chemicals in our production plant. Here's an aerial shot of our plant.

You can see the dense media separator and the tailings third module to your right, next to the thickener, which is the first of its kind to dry stack ultra fine tailings to 12%. Here is another aerial view of our plant, and you can see it from the view of the ramp, where we feed the first module, the crusher, with the spodumene ore to be transformed into a battery-grade Triple Zero lithium concentrate. Here is the deliveries, and on every front, we have successfully ramped up, and more importantly, we are on our way to expand this plant to triple production capacity. There are five aspects of the call today, and I'm gonna try to cover them to some level of depth here.

The first, we are confirming guidance, reaffirming guidance of 130,000 tons of concentrate for year-end. By December 2023, we're gonna reach, reach this target. The ramp-up's been a success. We have successfully managed the dry stacking module, which was the last module to be fully commissioned to full capacity. We're on our way to get there, so it's, it's, it's, it's now an incredible success of innovation in sustainability and in plant technology, lithium processing technology. We also have conducted our inaugural shipment of the Triple Zero Green Lithium end byproducts at the end of last month. We're now gonna be doing them at a cadence. I'll be talking to you more about that. We're also in midst of advanced detailing engineering, reducing CapEx to FEL3 level for the expansion of our production.

At that, we're also expanding our mineral resource. We're tapping into phases four and five, testing a few thesis of adjoinment of pegmatites, so that we will be able to, perhaps ramp up our potential production even further with a potential fourth line. More importantly, for all of us here, we have been successfully implementing at a very steady pace, all of our landmark social development initiatives, which fills us with pride and delivers on the promise of lifting the community as we achieve our milestones. I will go through each one of these points and cover then the financial aspects of where we are in our operation. This is our picture of our interactive live. Nothing better than a video to share with the life of this one.

Essentially, you just saw the two, the dense media separation module, which is the module two. To the right, you saw the crusher, which is module one, which was the first module to be commissioned. We're gonna talk a bit about that plant. The ramp-up has been a success. We're reiterating guidance, so we're gonna be producing 130,000 tons of this beautiful material that's to your right here. It's very high purity. We've been able to achieve the incredible success of concentrating even to higher levels than 6%. 95% of throughput capacity was reached in August. In other words, the plant is being unleashed in all its power to reach what we call nameplate utilization.

It's, it's important to remember that the Nameplate utilization is 85%, we shouldn't confuse utilization with capacity. Utilization is the number of hours the plant stays on. It's a 200 ton an hour, 200 ton an hour plant, so through utilization, we are able to calculate production. Now, the design capacity in its current design, this plant is supposed to produce 270,000 tons of material, and in August, we were actually able to get to that level. We got it. I mean, the plant is there, and it's from now on, basically calibration and fine-tunings.

We're so confident to deliver the guidance for the year. Another very important point on plant ramp up, has been reaching the nameplate recoveries, which has allowed us to produce the beautiful material on your right. In other words, we have been now recovering to 65%. We have been sustaining that around several consecutive days, given that we have overcome our cautious and safe ramp up of the dry stacking module. We're now consistently producing very high quality, and we could produce 6% lithium oxide Triple Zero. We are adjusting it between 5.5%-6% because of the commercial specs prevailing in the market, given that most producers are just at 5%.

It's a testament to the quality of the ore, quality of the material, the ability of the dense media technology to actually beautifully, beautifully separate, purify, and concentrate our material. It's all working as expected. More importantly, we have actually advanced into innovation territory by doing something that's unique and pioneer in our industry, which is to fully dry stack our tailings. We have, on that same tone, achieved daily production records of 800, approximately 850 tons. If you multiply that by 23, 24, 30 days, you can adjust to see the full capacity of this plant. We, we are very, very confident that we're gonna be probably reaching nameplate capacity in the fourth quarter as expected.

I think the most important thing on the dry stacking, we were, we were calibrating the moisture. The point in dry stacking isn't just to dry stack, is to dry stack with a level of moisture that allows the dry stacking piles to stay intact and therefore consistent for storage. To your right, I am going to show the surface, right? This is the end of the surface for the main product. Here I have this... You can see, a picture is 1,000 words. This beautiful light green lithium concentrate is granular, the granularity is getting to about 6.5 on average. Essentially, it's beautiful, it's beautiful granular, granular, granular lithium concentrate. The next page, again, videos and pictures are 1,000 words.

We're gonna show you the two portions of the dry stacking, the two key portions of dry stacking. The first is the portion of the industrial circuit that dry stacks the ultra-fines. Here it is, and you can see the cake. Then it goes through the belt all the way to the pile, you see that the pile integrity at the very edge of it, which demonstrates the low moisture. At the very edge of it, you can clearly see the, you know, the top of the ultra-fines tailings pile and the integrity of it, which is just a visual demonstration of the low moisture and the success of the ramp-up of the circuit, right? Here is the rest of the tailings. Here are the rest of the tailings.

You can see the two kinds of tailings. That's an important point, because we talk zero tailings. It isn't that we don't produce tailings, we do. Because we innovated and took the risk to build a dry stacking circuit for ultra fines and the coarse gravel, we are able to get rid of it. We the byproducts are utilized. The left byproduct, the coarse gravel, is paving roads, paving rural roads for our community, and the product on the right is actually valuable. We've been able to sell it for about $350-$400 FOB, which covers a significant portion of our cash costs and almost All-In Sustaining Costs.

It is, it is, it is fantastic that we've been rewarded by being a pioneer in dry stacking these tailings financially. This is the financial reward of doing what we've done. On this page, it's again more of the operational success we've achieved this quarter. We, we made our inaugural shipment in July. We shipped 15,000 tons of the Triple Zero Green Lithium and 16,500 tons of the Triple Zero Green Tailings. Now we have the cadence, we have monthly shipments planned. Again, just recapping, why Triple Zero? The plant does not use chemicals. We are using very successfully dense media separation instead of chemical flotation.

We got zero tailings because, as I said, we actually getting rid of these byproducts, so we're monetizing these green byproducts. We are now following this incredible success in mitigating the aspect of a tailing dam on land. I mean, remember, not much has been talked about tailing dams in the lithium industry, but they're just as hazardous as tailing dams in iron ore. That's a, basically a, it's a dam full of chemicals that over time, it's perpetual. 100 years from now, these chemicals, they are trapped in that tailing dam, who goes down where? Where is that? In the water basins of the surrounding areas. There's a similar effect on biodiversity and ecosystems that the tailing dams have in iron ore.

As we mitigated that and got rid of the byproducts, we are at, we were able to zero the carbon. We were able to offset the remaining carbon in the operation, which was very small. It was 0.26 tons of carbon per ton of lithium, which is a fraction of the industry. In any part of a source, both in salars, brine, and in hard rock, we were a very small fraction of the industry already, in great part because of this plant. We were able to purchase carbon credits to just offset and go to zero, because zero is a number that's very easily understood, better than low green. Zero, zero is zero. As a result of the quality of the material and all of these attributes, we have been enjoying phenomenal commercial success.

I mean, we've been building a stellar book of customers, customers that basically are far-reaching downstream. Automakers, battery makers, the lot. We have a very strong and stellar book of customers because it's a combination of the environmental sustainability and basically unquestionable credentials of the product, but with the premium pricing where we with the premiumization of the product, because of the superiority of the product on technical merit alone. In other words, the product is granular, average grain size 6.5 millimeters, it's going up to nine, so it's granular coarse, which increases productivity to, to, to downstream, to our clients. There's, there's significant levels of purity here, it's very high purity, so very low potassium, very low sodium.

Alkalines, potassium and sodium together are well below 1%. Potassium below 0.5%, sodium around 0.5%. There's iron oxide, where we're sitting well below 1%, again, 0.7%, 0.77%, 0.8%. Very high purity from the standpoint of these two key impurities, which lower productivity downstream. The premium pricing of 9% means the following: we are grabbing 9% top line value from refining, which is an incredible achievement. In other words, refining is a business that relies on our product to deliver their product, and we are grabbing top line, a 9% value. That's what premium pricing means. The index is an average of Korea, Japan, and China, lithium hydroxide pricing, nevertheless, we are price setters at this point because of these characteristics.

High purity, high quality, coarse granularity, the free attribute, which is the most sustainable product in the industry. Here is, again, pictures, a thousand words. We showed you how these tailings are made, how beautifully that circuit, the dry stacking circuit is working. Here you can see the product from up close. Even the tailings are grainy. They're not milled, they're not talc, they're not micronized, so they're not at a micron level. Even the tailings are incredibly efficient in the flotation, where they are utilized to become more lithium concentrate by our clients of these byproducts. The green lithium is beautiful, it's on your left, and then to the right, the use of these tailings that we've been discussing here.

I'm gonna talk a bit more about phase I and the main milestones, and where we're trying to get with the product. You can clearly see how we've been delivering on every promise, delivering on everything we said we would. We commissioned the crushing on time. We commissioned the DMS on time. We started production on time. We're ramping up to nameplate capacity well on time, even though we did something no one else has done, which was dry stacking tailings, which was, you know, a source of basically conservatism here. We had to commission slowly. We had to ramp up, ramp up slowly because we needed to test that circuit to see if it worked, and it worked. It was an exercise of conservatism and patience. especially throughout the months of June and July as we got to that circuit.

We went to circuit 1, which is here, which is the crusher, then circuit 2, which is the dense media separator, which works beautifully. The dense media separator is connected to circuit 3, which happens after the thickener, which is this dry stacking circuit. These two circuits, they are symbiotically connected. The performance of 1 circuit was connected to the performance of another, what we call the wet circuit. We wouldn't be able to see the dense media separation plant in all its might if we hadn't successfully commissioned the dry stacking circuit, because we made that environmental choice from the get-go. Here it is, right? We got there, and proof is in the pudding. We're reaching shipment cadence, so we're going to go to a second shipment, third shipment with a monthly cadence.

We're on track to hit our guidance numbers. Here is us sharing everything. Transparency, as always. You can see we've been tracking data as we got into the dry stacking circuit commission, so that you can see the importance of understanding how these two circuits were connected. The main plant and the dry stacking were working together. Here's the beauty of this: We were achieving operational consistency and successful plant recoveries, period, right? Even in a period where the dry stacking was being slowly ramped up, far from its full capacity, we the DMS, the main plant, was working fantastically. In other words, what you can see here is us hitting 6% lithium oxide very consistently for almost two months.

We're now, and we are now in the beginning of August. If you can see here, like from the 13th of June to 12th of August, two months of data, and you can see the consistency. To the right, you see the head grade. Blue head grade, orange concentrate, so beautiful consistency on getting the product right. Again, dense media separation was a go. How does the magic works together? How do the processes work together? They are like Siamese twins, that's the right word. We can't dissociate. Why can't we dissociate? Well, the thickener is basically mud. We don't have a tailings dam.

If the dry stacking circuit wasn't working, we wouldn't have a place to put the mud, so we would have to commission the dry stacking circuit slowly so that we could actually have the DMS unleash its, its power, its full capacity towards that dry stacking circuit. It was a combination of a number of fronts: filters, membranes, filtration, adjusting the, the thickener, and we got this. Here it is, the data. You can clearly see, how we've been now, you know, right there. In the period where that plant was ramping up, we were recovering at a lower levels because the whole plant wasn't fully at capacity. As we got to the capacity, you can clearly see how we just shot up.

Dry stacking works, plant unleashed. As we increased capacity, the entire circuit started to work beautifully. That's here, recovery and yield, and that gave us the confidence to basically, you know, just smooth sailing from now. It's an enormous source of pride. On the mine, also same thing. We've been executing according to plan. I mean, again, the mine feeds the industry, so it's a fully integrated operation. We've been reaching consistently the mining cost in the technical report. No news there. Then as we have gotten this under our belt, we will talk about expansion. We've been tinkering with a few ideas around expansion as demand for this material is just, it's skyrocketing because of its sustainability, because of its quality, because of electric vehicles' ramp up in demand.

Again, we are the lowest cost producer, so price is a secondary consideration for us to the extent that we are going to generate robust cash flows, irrespectively of pricing environment. For us, it's always a matter of how quickly can we get more, more, more material to the market, right? We have, as you know, a, a significant reserve base. We have 86 million tons of resource, and we have about 54 million tons of reserve, which means we can actually increase production, throughput production yield by putting in more production lines. Then we will work on our nine former mines to build up longevity of the project.

Again, this company, the, the, the resources are so vast that it's a matter of being able to or deciding to build these line trains, and what's the throughput capacity we believe we can actually place in the industry. Right now, we've just done phase I, so we're gonna reach 270 annualized within a year's time. Essentially, on an annualized base, we got this. We understand this circuit, we understand dense media separation circuit and, and how it behaves as per our mineralogy, our material. We're about to build two more lines, and that will triple our capacity. We are tinkering with a fourth line, so perhaps we would build three more lines. By 2025, 2026, we are going to build at, be a higher capacity.

That's the exercise we're doing here as far as Phases four and five. Here you can see the modification of a slide we've been showing you for quite some time. The FEL3 detail engineering is ongoing. We're fully funded. We got a shareholder loan, and now we're in full, you know, cash flow generation mode. Company's costs, as you can see, are being significantly covered with the sale of byproducts. This has become an incredibly cash accretive exercise, producing and selling main product, byproducts. Therefore, you can see the, the, the, the, the, the analysis that's being conducted in a, in, in a context of detailed engineering about two more line trains, perhaps three more line trains. Where can you put that in light of the elevation of the terrain? You can see the rampad here. That's the elevated portion.

We could build them in perpendicular to the current circuit. Most likely that will be the case because we have a bigger area there with the right elevation for the rampad. These are the conversations and analysis that are taking place right now. They're being led by our chief operating officer, which, as you can see, is has been incredibly busy. Here is the view of it, right? This is the other aspect of what Brian Talbot is looking into, meaning how do we think about elevation area so that we can actually throw in two line trains and then perhaps a third more once we once we build those two?

you know, can, can, or build them two now and then a third immediately there after. Again, the demand for the product has proven to be fully supportive of us putting in that throughput. Again, Triple Zero, ultra-high quality. The pairing of these two characteristic, characteristics in the market is unique. We're the only ones that have that, basically. This is a visual. And you can see here, where my arrow is, I'm not sure if you can see that this is faster. This is also what our environmental team loves to see. In other words, we'll jump over this area here because it's got vegetation. We don't like to cut vegetation unless it's on the pit. We typically don't do it.

We'll go straight into what we call anthropized vegetation area, where there's no trees to cut, so pasture areas, and we will build our three line trains there. In the very back, you can see this was already a patio for truck maintenance for the mine. It's actually an area that already has industrial capabilities. We had our gas station there, we had our industrial setup there. This is an area that's been considered for expansion. We probably do perpendicular. Here is a bit more of that timetable. I think what matters here is we're doing all these trade-offs now, right? Two lines, three lines. How do we go about this construction? We've been deploying cash, we've been deploying costs for this construction, detail engineering and others. It's, it's FEL three detail engineering full bloom.

That's costly. We're very able to cover that with our, with the shareholder loan we received. We're able to cover that with our own cash flow generation. We're, you know, we're about to continue to generate a significant amount of cash going forward. The plan here is to, expected here, we're ordering long lead items in the fourth quarter. Once we get our arms around two plants, three plants. This is an eight month build, so it's actually quite fast now that we're pretty done with all the infrastructure, including the substation. It's gonna be a different build in phase I, where we have to prepare the site and prepare everything. We're just literally gonna deploy three line trains, and that's the plan here.

Essentially, we're expecting to initiate production and delivery. We're expected to initiate the commissioning of this plant in September of next year, and we're expecting to start receiving equipment at the beginning of December, June, July. It's all sort of going according to plan. Here is further growth, further additional growth, more, more, more. As you can see, just to recap, we got nine former lithium mines. This is one of the richest lithium properties in the Jequitinhonha Valley, the Lithium Valley in Brazil. We started with Grota do Cirilo, which names our studies, because it was where there were more former mines and more large pegmatite formations. As you can see, Xuxa, which is phase I, is to the north. At the bottom, we have phase II. It's all interconnected.

When you can see, there's a, there's a string of ore bodies and pegmatites that are not linked necessarily to each other, but they are adjoining or they're, they are adjacent, like, they're just very close by to each other. Here we phase III. sorry, here we phase III, and then we have another ore body phase III and what we call phase V, which is called Tamboril. Then we have Lavra do Meio, which is in our current mineral resource, and is being drilled to, you know, the level of its potential now. Then we have Murial, which is being drilled. All of this adjoining.

We're, we are basically planning to publicize that when we actually finalize our thoughts around a fourth line train. This will be and, and again, the fourth line train is irrespective of phase IV. It's very important to say that. The fourth line train is how we're going to contribute to deliver the lithium that will actually support this very rapid pace of growth of electric vehicle demand in the Western markets, as a result of this incentive plan. Now, in addition to China, which was the only market, now we have Europe going full speed, and then the U.S. in March, as the fastest growing EV market, as a result of President Biden's green plan.

Now we have three markets to support as an industry, and here's our contribution. We're going to put a fourth line train to actually deliver more material in the market. Again, we'll see it later, for us, the lithium prices are a secondary consideration to demand, right? In terms of this, making decisions around construction and throughput, because we're the lowest cost producer, so we don't depend on high prices to do anything here. Lastly, I think Albemarle, one of the key sources of pride for this company, in addition to the technical prowess of our incredible, incredible technical team, I mean, we are delivering on every front, on every promise in terms of lifting this community with us.

We are enjoying-- shareholders, all of us, are enjoying the prosperity of the lithium, but the communities are enjoying that with us. We're renovating the schools. The cost per school, we did this as a test pilot school. It's $70,000 per school. We're probably gonna be doing 10 of those schools next year. It's a whole new ballgame for that school. This used to be a rural school with two classrooms, where children from three to ten cramped up in two classrooms. It was a source of shame for all of us Brazilians to have next door, schools like that, where kids, you know, had their learning capabilities significantly hindered by the facilities. What we're doing is building them proper facilities with libraries, with classrooms, with more classrooms.

We're building a bridge to improve acce-accessibility of the, of, of the, the rural communities, around it, to get to the school, to get to the asphalt. We're planning to make this a model school, a pilot with, not just the facil-- the installation and the facility, but also a robust after-school program. Because a lot of the parents on that community, which is a community that sits right, right in the middle of our areas, work at Sigma. The women work at Sigma. Lots of women working at Sigma, so we're putting an after-school program as well. Again, it's a pilot program from an academic standpoint. It's a pilot program from an installation standpoint, in terms of doing fast, building fast, building cheap, which is the same mindset we have for everything we do.

We're probably gonna be doing 10 of those, which is, again, a first in terms of speed and comprehension of the program, right? Financial numbers, where are we? We're well on our way, right? We're joining the ranks of the super majors. As you can see, we have the mineral resource in the ore bodies to support it. Now, we can say we have an amazing, sustainable plan to support it. We're the only company doing Triple Zero lithium, zero carbon, zero chemicals, and zero tailings. We believe that now, again, we have the right circuits to grow, which means we're going to grow without leaving a legacy of harming the environment.

That's how the clients downstream, automakers, battery makers, sort of gave us this enormous competitive advantage as far as this material is concerned, because it's a sustainable way to grow and to cater to this industry, which is building the green cars. It's green lithium for green cars. We're planning to put our two more line trains. We're getting to the full 37,000 ton LCE annualized capacity, which is the 270,000 ton of lithium concentrate. Then we're gonna get, with two more line trains, to. We expect to get to 100,000 tons of LCE, which is approximately 760,000 tons of concentrates.

We are tinkering with the idea of a fourth line train, again, to be supported by our 53 million tons of reserve, because of the current moment in time of the industry. Payback for a line train here is, you know, in months, two months, 2.5 months, depending on the price of the material. Very short, very efficient, why not? You can see also that there's a disconnect. I mean, as we are able to establish this cadence, we are hoping to be rewarded by all of you, with that, with the producer, with the producer, recognition.

Given that, you know, we're just coming out of ramp-up, and we're gonna be start shipping this with a cadence, and we're moving into the producer universe, where we are set to enjoy producer valuations, right? Here is why prices matter very little for Sigma, because we are one of the lowest cost producers in the world. More importantly, as we sell our byproducts, our cost becomes-... you know, tiny. A significant portion of our cash cost is actually covered by the sale of byproducts. I mean, we're achieving $350-$400/t for this material. Just as a refresh, our cash cost is $290 as per feasibility, and the All-In Sustaining Cost is $530 as per feasibility. Obviously, the numbers during ramp-up will be different.

We'll show that in next quarter, essentially, that is not the focus. The focus is what happens to demand, because we can deliver this low cost, high quality, triple green lithium in any market, in any point of the cycle, and we have this built, built-in competitive advantage of sustainability. We're just putting scenarios with different prices, you can throw in the prices. We did per unit, and we did full in using the three combined phases. This is just an illustration. The, the, the chart on the right is the most important, which shows, in the red, the forecasted prices. If you go all the way down, even at $2,000 a ton of material, you see the difference between that and the dotted line. This is our cash flow. We're enjoying robust cash flows no matter what, basically.

That's the beauty of being the low-cost producers. Keeping the process in dense media separation was a key element to that. Our processing cost is our greatest competitive advantage. Mining costs are kind of similar, but processing costs are the difference. Our processing costs are significantly lower than our peers. Just to illustrate, on electricity alone, we pay $0.02 per kWh of green, renewable power. That alone is a fraction of renewable power or any power, dirty power, clean power, anywhere in the world. Here is an important point. I mean, there's a disconnect. We are now earning credibility into building, closing the gap towards closing the disconnect.

As you can see, as we get to 270,000 tons, we're gonna reach the 37, which is the, the, the colored yellow bar. We're moving steadily as we're building phases two and three into the expansion, and then perhaps phase IV, we're gonna hit 104,000 tons of LCE, which is again, in line with our three peers. It's pretty clear where we're going as we move through our construction. What's most important here is that we have a very innovative circuit that we've been, you know, calibrating, adjusting, perfecting, as, as far as the innovation, which is the dry stacking.

Even during the dense media separation process, our Chief Operating Officer has been, Brian, has been perfecting a number of aspects on that circuit. Now we have a tailor-made sustainable circuit that's just essentially a replicable unit for our mineralogy. Again, every mineralogy is different. Our mineralogy, of course, crystals is it, right? 'Cause it's the combination of the quality of the material, of what we have, the large crystal mineralization, which lends itself to this dense media separation process extremely well, and the perfectioning of the circuit, which is dry stacking, even ultra-fines, right?

Here is more numbers, the busy page, but I just wanna leave you with the main message, which is the phase IV, fourth line train, which was initially planned to the back, we're now probably putting it at the front because it is at the front of the life of the project, where we have the biggest pressure from our clients on demand. We're living through full ramp up of EV demand by consumers, and not all of the projects that were promised to come on stream, have come on stream. The producers, and that includes Sigma included, the producers are doing everything they can to basically cater to this industry, given that, you know, the, the, the, the, the commissioning and the ramping up of the new projects is slower than everyone thinks.

It's delayed. We are basically trying to fill that gap with as much material as we can possibly can, sustainable material at that. As you can see, using the price assumptions that we had in the study originally, which we will adjust, the payback was 1 month. I mean, really, right? Now what we're basically gonna do, we're gonna adjust the prices. What you will do? Well, if price is cut in half, we're talking $2,000, payback will be like two months. It, it, it's, it's a decision to see respectable pricing. That's what we're trying to show you here. As a low-cost producer, seller of byproducts, I mean, for us, putting more material in the market is just a matter of, is there a demand out there for this material?

The answer is a resounding yes, right? Here is the closing. I mean, we delivered on every, every front. There's a degree of consistency here and focus that, that's really unmatched. I mean, we run this business like a technology company. It's very, it's very taxing on all of us executives. I mean, we feel the pressure, we feel the daily pressure, but it's just a consistent delivery of milestones. I mean, this being an industrial operation, you can only imagine how taxing it is on people. That's why we're constantly building up our human capital ranks. We're constantly building our, our teams. We're bringing in more and more incredible people, like the two gentlemen that just are now leading together, the financial officer, Rafael and Kyle.

Rafael came from a long lineage of, you know, traditional companies operating in Brazil, listing in the United States... including CSN, which is a known steel maker here, has been listed in the US for almost 25 years. Rafael comes from Cargill. He's gonna lead the controls areas. He's Chief Control Officer, leading SOX implementation, improving internal controls. Cargill is a North American company, soft commodities, commodities businesses. Again, top team, and again, we delivered on every front. Lastly, you know, first shipment, zero carbon, dry stacking, zero tailings, got rid of the tailings, selling byproducts. I mean, the lot, right? What's next? Well, complete ramping up this plant.

When we get to nameplate capacity, we're, we're, we've been hitting, you know, now we're going up to 10 days of that, but we're gonna probably hit that in the third quarter consistently and then steadily. Second shipment, third shipment, fourth shipment, and then we're done. Then it's on to phases II and phases III. Here is Q&A. I'll stop sharing, and we go straight to Q&A. Another, can we talk about the decision to use trucks versus heavier mining equipment for pit work and hauling ore? Should we assume higher maintenance, downtime or OpEx? Is it worth the ESG specifications if you don't get compensated for that with the product price? Well, look, the cost of mining here is negligible compared to the overall cost.

I mean, it's, as you can see, it's $2 a ton to mine this. You saw the slide. It's an important point here. We're talking about negligible cost elements. Negligible. $2 a ton. The product is $3,500 a ton, final. Even with the bear market projections, it's a $2,000 a ton product. It's important to understand that mining is a feedstock to the industrial operation. Where do we really manage cost in the industrial operation? Our processing costs are the key. By choosing dense media separation, we put ourselves way out there, way ahead in terms of advancing, just keeping those costs low, because dense media separation is a relatively simpler process than flotation, and therefore inherently, intrinsically, it has lower costs.

As a result, when you compare mining with plant, I mean, the decision to add trucks was a social decision, and you can see how bad the social license of the industry in Brazil is, and how much resistance even Sigma encountered, this perfect company, environmentally and socially, as it initiated operations. What was the resistance? We never had the benefit of the doubt. Here it is in Brazil. You start a mining operation, you're presumed guilty. We proved everyone wrong within, you know, two months of operation, but, you know, it was tough going. What we had going for us? The significant number of members of the community that were employed by this company. How so?

Well, fewer trucks, more people, and easier to redeploy drivers that were driving trucks in other applications towards driving off-pit trucks. This is key to understanding our unique, incredible social license with this community, with the Lithium Valley region, with the country, with federal, with state. I mean, we've become an engine of positive change. It's a force for good, and that is connected to this decision. Answering your questions, it is well worth it. It's well worth it. I'm just talking about the social. Now I'm gonna get to the environmental. Biofuels. The smaller trucks are made for biofuels use. We are at 15%, we could easily get to 50. We zeroed the carbon anyway, now, so that this is done.

The main consideration here was social, because instead of using 100 ton trucks, we're using 40 ton trucks. We employ 2.5 more people, number one, and that means the members of the community around us are employed. The mine is the largest employer. 95% of the personnel in the mine is from the towns. Born, bred, raised, from there. 95. These are astounding numbers. How did we do this? We brought these people back. We brought the community back. We trained them. We, we, we were able to quickly redeploy those skill sets towards driving trucks on pits. Basically, somebody wants to see the head grade, concentrate grade, mining cost progressions slide again. We'll put this on the, we'll put this on the, on, on, on the, on the, on the website.

Essentially, what we've done, as you can see. Let me just go back to this, if I can do that, but just let me see if I can keep on sharing this. Okay, here we go. Just to the question. Here it is. Just to see the consistency, right? Here it is. Okay. Concentrate and head grade. You can see us concentrate. I mean, basically, we need to, we struggle to bring it down to 5.5%. If so this plant is left to its own devices, we'll be doing 6.4% material.

Now we basically have to tone it down in terms of, to sort of adjust it down to 5.5%, because obviously the spec being 5.5%, our pricing formula and contract being set to 5.5%, we want to deliver market spec. Our peers are delivering below.... We're delivering market spec. If we left the plant unleashed, you'll be doing 6.3, 6.4, 6.+ material. Again, this is obviously a function of, you know, the quality of what we got and the quality of the process. It's the combination. The process preserves the integrity of the particle size.

The product becomes, the product becomes more valuable because it's large particles, 6.5 millimeters, and therefore, and therefore, it is, it is, it is more efficient. It's about 30% more efficient downstream than our competitors, because purity and particle size, especially in the first phase of chemical refining. The other, other slide we would like to see is mining cost progression. You can clearly see here. There we go. Here it is. Here's the consistency, and it kind of goes back to answering the previous question. I mean, it, it's counterintuitive, and I completely understand your question. It, it's counterintuitive, remember, and this is kind of what my job here is, just to show how counterintuitive this is. Mining isn't the focus. The focus is the plant, right?

There's been incredible consistency on, you know, achieving the, the, the feasibility level mining costs, right? That's kind of what gave us the latitude to think, well, you know, we really, we really have room to maneuver here. We, we can do differently, right? On environmental sustainability, more biofuels and on people. We can employ more people by decreasing the number of trucks and absorb all that labor, that all those, all those individuals, all the valued members of the community that actually were gone, were driving trucks elsewhere in other applications that can be, can be redeployed here. Sea freight costs to China. Well, we're not paying for freight. This is FOB prices. We are publishing FOB prices, right? I would say today, the freight cost is sitting between $65 and $75 a ton.

They've gone down quite a lot, but we don't pay for them. The customers send the ship, and we, we, we actually, we, we, we, we actually cash the LC upon loading the ship at the port in Vitória, in Brazil. Our published prices, all of them, are FOB Brazil prices. More call on sales and marketing operations. What would be tentative monthly sales volume going forward, and how's the demand side within the spot market at the moment? I mean, let me be very clear. Even though we sell spot, we're not hostages to the spot protagonists here. I mean, we're selling spot into very well-known downstream supply chains. The spot aspect of it is basically the pricing and the sale mechanism.

In other words, we are selling into very, very well-known end users. The end users are starting to pop up as clients of our clients. We announce the name of our clients and their clients, the automakers that are their clients, appeared because ultimately there's green lithium, Triple Zero Green Lithium coming into that line. It's actually a source of pride for us to see our client's clients appearing. We're now looking into doing three month contracts. Again, the mindset here is to preserve the unit, to give us flexibility, strategic, downstream, planning to build what we call the basic chemistry potential, technical-grade carbon and all lithium sulfate.

As we look into all these things, we wanna keep our units very close to us because they have massive strategic value. The concept of spot is essentially how we transacted. We got clients here that would, you know, do three months, four months, option out one year. We have that safety of demand to rely upon. Again, this product sells itself essentially, right? Another question is, in terms of market, you mentioned huge demand versus current capacity in near midterm. How about other technologies, sodium-based batteries for the future, attract to lithium-based technologies?

Well, I've seen in China, CATL sodium cars, a feat of engineering. Remember, they were developed when the prices were on the way to hit $100,000 per ton of lithium hydroxide, which was unsustainable for the growth of the industry. I've been one of the-- Sigma has been one of the few companies that, for two years now, has been saying exactly that. This industry needs to have discipline to deliver low-cost volumes so that we don't hinder ourselves obsolete, right? We have no qualms in saying that. It's the technology client that's at the very end.

If lithium industry loses discipline on delivery, supply, pricing, you know, making fair pricing for everyone in the, in the supply chain, and so on and so forth, we will render ourselves obsolete, and for sure, our end user will innovate somehow. The history of this industry, I've been here, like, for 10 years, right? I've seen a lot of these battery materials literally rendering themselves obsolete for lack of sustainability, lack of availability, concentrated output, concentrated production locations, and all the classic mistakes.

The energy transition is not gonna happen, to deliver the same situation we had before with fossil fuels. The purpose of this is actually to have it widely abundant, low cost, and sustainable. This is kind of why we, we do believe we're a force for good. We enable that. Low cost, abundant, sustainable. We're putting Brazil on the map, another geography. Here's another competitive advantage when it comes to our clients. It's another country, new place, geographic diversification. We're there. It's, it's, it's kind of logic for our clients to purchase this material from us. I do not see sodium sulfate as a threat. I see it as a message. The message downstream sent the industry to be disciplined, to be sustainable, to behave. The message, I think, was taken by most of the industry.

We see the producers doing just that. And it was a good message for the new companies to kind of become producers with that mindset, right? The sodium sulfur car has a very, very low autonomy. Again, I see them having been developed for a purpose, right? To basically show the lithium industry that we are not, you know, mighty and alone. We have, you know, innovation right at our doorstep also. Even though lithium is critical, it is fantastic, it's the third lightest metal in the periodic table, technology is technology. You know, we have incredible clients, and they can do incredible things, right? Can you please comment on recent price fragility among EV material space? Is it a sign of demand weakness or Chinese restocking? Well, we need to look at supply very clinically to understand what's going on.

The very high end of supply is this unknown element called lepidolite, which is horrible from a sustainability standpoint. I mean, talk about free stripping. For every ton of lithium, it's 35-40 tons of waste in a region where it rains a lot. That waste goes one place and one place only, to the river. That is a temporary remedy until the players at the middle of the supply cost can actually deliver more material, which is starting to happen. We see the price receding. Now it's around $3,500-$3,000, gravitating towards middle to high. It's not on the ultra high to make anything feasible, but it's getting to a place where it allows for the middle-cost producers to be very profitable, but also eliminates the ultra-high cost, unsustainable players.

What we're watching in the industry now is that movement of back to normality, where the mid-cost producers, the newer companies, everyone is kind of coming to the table with more material, and you have the very high end of the cost curve being purged out because they're gonna be priced out of this. To be frank, at 35,000 tons, quite a lot of, you know, environmentally unsustainable lithium is still feasible, which is a sign of demand robustness on its own. I mean, lithium now is priced to perfection to make pretty much most operations out there profitable.

Not with the kinds of profits we enjoy sitting at the low end of the cost curve, but profitable to the point of, "Let's deliver this." As time goes on, and more and more of the middle to low end of the cost curve, companies like Sigma, sitting right at the low end of the cost curve, continue to deliver, we're gonna see the prices slowly pulling back. That, we think, is our mission, to deliver this low-cost, sustainable lithium, which gives resilience to the industry to the previous question, you know, rendering itself obsolete, right? It has to be fair pricing. It has to be a level where, you know, there are margins across the board. That's also a message for downstream.

I mean, in the previous cycle, we saw downstream capturing all the values, and that wasn't, you know, very sustainable for the industry. Four large companies upstream went bankrupt in 2019, 2020. What we're seeing now is kind of this new cycle coming off cycle, we think in a more responsible way and in a, hopefully, lessons learned way, right? I don't, I, I don't see demand weakness at all. Quite the contrary. I mean, I see actually critical materials being a hindrance, being sort of the bottleneck for, you know, demand completely unleashing as far as EVs goes and government incentives goes. How about new mining frontiers? Well, I can't speak of new mining frontiers. I, I just can speak about the Lithium Valley, and what I see here in Brazil is just phenomenal.

There are 3 listed companies already prospecting materials here. You know, there's an enormous level of excitement with the region. Again, there's very cheap and abundant renewable green power. It's $0.02 a kilowatt hour. The focus of the company should be only on Scope 1. There are different companies doing different things. For investors, the region is fantastic, it's mining friendly, it's there. The region is mining friendly, which is what matters, right? The country is learning to be mining friendly, but the region is. That's a big thing, because you're basically delivering to a region that embraces it. It's their chance to come out of, you know, horrible levels of poverty. It's a chance in a lifetime, and they fully embrace it. They welcome everyone.

There are companies from Australia, Canada, the United States, lots of foreigners. Everyone's a foreigner, basically, and they feel incredibly welcome. The community embraces them. It's amazing. It's just amazing what's happening there. I invite all of you to come visit, Itinga and Araçuaí. Next question: Any ideas how we're gonna be funding phase IV expansion, offtake, equity, debt financing, the lot? Well, look, I mean, we produce quite a lot of cash flow, right? It's essentially more of the same. If you look at the levels of cash flow we produce. Let me put a slide back here for everybody kind of to refresh on cash generation. I mean, I get questions like, "What are you gonna do with so much cash?" Essentially. Seriously, right?

After tax earnings margin, 75%, that's a lot of cash flow. A lot of cash flow. These line trains here, these are these dense media separation line trains. The initial-- the feasibility study indicated that it could cost around $80 million, $80 million each. It's just math, right? It's, it's internal cash generation, and we can leverage, we can leverage any time. It's interesting because we got quite a lot of financial institutions that wanna lend to us because, you know, obviously we're generating quite a lot of cash, so we are very robust credit. There's no shortage of, you know, lenders. We feel very comfortable, very, very comfortable about cash generation position, essentially.

Basically here, could you please provide an update on Sigma's, Sigma's strategic and-- Well, look, we're, we are a financial sponsor-led business, so this is something that can't be forgotten. On the other hand, we understand the value of this company, and I think there's a question here about unlocking shareholder value. Unlocking shareholder value just happens by one means and one means only. What we've been doing since day one.

You know, defying, defying expectations and delivering, delivering, delivering consistently. We have never missed a milestone. That's it, right? In our industry, there's a graveyard of companies that missed milestones and missed everything, overpromised, underdelivered. We tend to underpromise. We tend to underpromise, and that sometimes is seen, but we like underpromise and overdeliver, so we never miss a milestone.

And we've been consistently doing it, but not just on one front. We do that in all fronts, on environmental sustainability, on social sustainability. I mean, the company's been overly scrutinized, and here we are delivering on every front. It's essentially, it's essentially how we see strategic value in strategy, right? It's, it, it's a company that's owned by a financial sponsor, but the main focus here is to create value, and the only sustainable source of value is just people, people. Like, we're filling the ranks with incredible people, which drives execution. Because as I said, it's very taxing on people to execute consistently at the speed of what we do.

These are the building blocks of value, and everything else happens as a derivative of it, as the ability that we have to continuously deliver, continuously, you know, deliver on our promises, right? This is my answer for strategic. Someone talked about M&A interest. Well, look, we're the most talked about company in this industry, but I would say because we don't promote, because we deliver. I think because we've been delivering... I mean, look, guys, zero carbon lithium. Zero carbon lithium. It's in every PowerPoint I've seen. We are the ones doing it. That's it. It's zero. Think about the strategic value of that for, for, for this industry, right? We have talked about because we deliver. What we're gonna to do, we're gonna continue to deliver.

In our view, that makes us more and more and more valuable on a fundamental basis, because this is a solid business. Generating cash, solid business, that's gonna take us where, you know, our willingness to deliver takes us, right? Trucking, trucking costs per mine support is $40. That's our cost. Very good question. It's a very important point. We're not shipping, so we're trucking. As we truck, it's $40 a ton. That goes towards when we talk about the tailings, right? When you think about the net-net on the tailings, it sits between $310 a ton and $350 a ton, depending on the contract, because there's that $40 of cost.

It weighs more heavily on the tailings than on the concentrate, because the concentrate sells for $3,500 a ton, right? That's the only transfer cost. We have clients send the ships, right? Which shows how valuable this is. They come to pick it up, essentially. The question is, why do you believe market continues not to value the company properly? Well, I agree with you. I think part of it is we've been inward focused, focusing on delivery. Now we got this, you know, plant shipshape, delivering dry stacking, delivering on every front. We're gonna go out and communicate that more often, more frequently. It's August in the Northern Hemisphere, everybody's on vacation, September comes, we're just gonna go out and about communicating this left and right.

We're preparing a number of important things. One of those was to list in the Brazilian Stock Exchange. In this country, we are darling of the industry. We've become the new paradigm. We were able to unite federal and state government because we renewed the social license of an entire sector, two entire sectors. We do believe the pension funds, the large institutions in Brazil that were not eligible to purchase Sigma, will be a very interesting source of demand, the same way our neighbors in Chile enjoy this, that, that kind of re- baseline investor. August is not summer here, so we're planning, you know, quite a number of investor re- relations initiatives to kind of go out and communicate it. Because we were inward focused, delivering, delivering, delivering.

As we go out, it's just, you know, wow! Right? We did it. We did it. 'Cause there would be no point for us, no point for us to adjust the plan and, you know, putting a tailings pond somewhere. That is not the reason why we made this investment. That's not the reason why we're here. For us, delivery has to be a holistic delivery on every front: social, environmental, and technical. This is why we made this investment. This is why we, we withstood the full cycle. But I do agree with your question completely, right? We don't think the company is valued properly. Now, impacting the future decisions of the asset, well, people can do math. I think, as I said, the, the greatest value of this company is its resilience.

We're very large, we have an incredible product, and we're gonna continue to deliver. This is the value, this is the intrinsic value, and people can do that. Everyone, car makers talk about verticalization. Do you see the supply chain shortened? No, I don't. I think we see what... Yes, I do, and I don't. Let me put it that way. What you see is a greater level of integration, and it's, it's happening. You see GM taking stakes of companies in North America, car makers taking stakes of company upstream. It's fantastic for the industry, especially projects that rely on that credibility to raise further capital to deliver.

We do believe in that, and we do believe that there's a level of integration that's gonna be unique to lithium because of a whole number of factors that all of you know. We see downstream, very interested in upstream, and that's not just refining. It's, it's the entire chain. Why? That goes back to the demand question. What we know about demand today, it just makes us worry zero about it. I mean, governments have significant firepower to deploy towards incenting EV demand. Why? It's the quick path to meet carbon targets, Paris Agreement carbon targets for Northern Hemisphere nations. It's a lot slower to upgrade a coal, fossil fuels-based electricity transmission grid, electricity generation grid. It takes a lot longer. It's a lot quicker to turn the car CapEx and hit targets on mobility.

Given that mobility is diesel-powered in the Northern Hemisphere, it's quite obvious where the sustainability, where the, the climate action dollars of these green plans are going. It's just to try to catch the low-hanging fruit of transforming mobility into low-carbon green cars, zero emissions mobility, because those are the easy targets. That way, the companies can show progress towards contributing to climate action. Demand isn't the issue. The issue is: Is the industry ready to bear the demand? Without these, you know, $100,000/ton, crazy price spikes on lithium. This industry was not ready. That's why we had the price spike. What we're seeing now is a level of resilience built on upstream, built on, on, on midstream, that actually prepares itself for what's coming this decade.

I mean, you see the intake, the kind of uptake on EV demand. I mean, when we talk to our clients in China, they talk about 50% uptake for new car sales by 2025, 2026. These are very high numbers! These are like mind-boggling numbers, right? That's one market. We got two more markets growing. These are levels of demand that in 2018, at the depths of the bear market, when we were here, you know, working on this project, doing feasibility and the lot, were unthinkable. Unthinkable. If someone had told anyone in the industry in 2018 that we would have 50% uptake in EVs for new car sales in China by 2025, 2026, it would have been, "Nah, no way, you're crazy." That's what we're seeing today.

That's what the clients tell us will look like, it, it will look like in China. Europe's coming, you know, very rapidly along. You see one in every four cars now in Europe. There are very strict government targets hitting in 25. By 2030, a number of nations in Europe have a very strict carbon bans and carbon emission levels. The only way for this to happen is through demand. It's, it's there. We see the supply chain, chain, not shortened, but integrated with cross-participations with the lot, right? That's what we're seeing. It's already happening left and right.

As lepidolite, lepidolite is being worked as a marginal producer at this moment, do you believe is that the more constructive scenario where auto industry doesn't need to secure material anymore? I mean, no, not at all. Not at all. Not at all. It's a survival industry for the auto industry, and this is a very important point. That client buying that green car doesn't wanna know that, you know, every ton of the lithium generates 35 tons of waste, which are permanently destroying land ecosystems and rivers and causing horrific environmental damage. These things are incoherent with the industry. The lepidolite is a temporary gap, and let's just be very clear on that, at least as far as Western markets goes.

It's not sustainable for the Western markets' EV adoption to reach the 50% levels that we're seeing in China, if lepidolite is the answer. It, it won't happen because the environmental groups, are not gonna let that happen, right? Cobalt is a witness to it. We all watched what happened to cobalt. It's, it's, it's not about the product only. It's about delivering the product with the same ethos of the car. This is key, and the industry's all geared up that way now, which is fantastic, right?

You see a level of concern around sustainability today, that 6 years ago, perhaps wasn't as heightened as today, because it's the very existence, the very competitiveness of this car that's at stake. When we go to climate conferences around the world, some of the first slides, the, the opposition to EVs or people who don't think EVs should be even here. How many years these cars need to drive to clean up the carbon, the extra carbon in the battery? Because they make it look like the only difference between ICE cars and EV cars are the 40% of the car in the battery, which it's not really, but this is the slides they show. There's clearly a battery here and not a battery there.

The carbon in that battery is being scrutinized by the very people that do not want EVs to become 100% of the fleet. It's on us to make sure that we break the resistance back to EVs and show that EVs are sustainable across the board. On us, the industry, the critical materials industry, all of us, nickel, manganese, cobalt, copper, lithium, the lot, right? This is the important thing. Lepidolite is just not the answer. If the industry is relying on lepidolite to deliver, it will render itself obsolete, essentially, right? Answer live. Oh, do you plan on paying dividends to your investors? There you go. That's the cash question. I get that, too. No, not yet. We got a lot to do. We got a lot of growth to do.

We do not plan to pay dividends until we have full visibility of strategically where we're going, especially when it comes to what we call basic chemistry downstream. We do not and have not ever said we are gonna build specialty chemicals downstream. Even at the time, this entire industry was just parroting that away. There are very good people doing this who are better at this than anyone. They're years, decades of experience. What we can do, and we're looking into very actively, very attentively, is first basic blocks chemistry, which is calcination and lithium. That makes sense environmentally. We probably will do zero carbon, but basic blocks chemicals, because calcination can be done on natural gas, and powered by. All of it can be powered by clean energy.

The waste, I mean, there's a ton of. Every ton of specialty chemicals generates 12 tons of waste. Every ton of basic chemicals generates 12 tons of waste, toxic waste. We have a plan for the waste. These byproducts go to the cleaning product industry, to the cement construction binding industry, both of which are very big and very vibrant in Brazil. We will do it zero waste. We will do it probably zero carbon. We can do better. We would only enter a business where we can compete to be the best in the world, to beat the incumbents on sustainability. This is something we, we seriously consider on basic chemistry, but never, not on specialty chemicals. That all costs money. This is the long answer to your dividend question.

I mean, there's, there's quite a lot that we're hatching up here. Therefore, until we have full clarity of what the picture looks like with all the line trains, with phase IV, with perhaps basic chemistry, we don't plan to pay dividends. Dividends will be something for 2026, maybe 2025, 2026, but 2026 for sure, right? Do you foresee nearshoring in this business? Absolutely. Is it a next year issue or next decade, how the industry will deal with China's dominance in totally? Well, look, we think there's industry everywhere. I mean, China is a huge market. They need to supply themselves, that's a big thing there, too. Let, let's not forget, the EV market was first and foremost China, right? Everyone else came later. Now, everyone else are huge, too.

You have this giant Western European market and the giant North American market, which is just starting. North America is gonna blow it away. The question is, how do we get there sustainably? Because there are different concerns from the customers in these markets. That goes back to my point about lepidolite is just not the answer. Just forget it, right? That is the biggest challenge in this industry today. How do we do more, more, more of it, more lithium, sustainable, low carbon, zero, zero carbon, no tailings? I mean, all these variables matter for these two giant markets that emerged in Western Europe and in, and in the U.S. That goes across the supply chain. In other words, the supply chain has to adjust, and that means refining. What refining will look like, I don't know.

I don't know. What do I know? We're gonna do our part here at Sigma. Our plan is to eventually deliver the zero, zero carbon basic chemicals, building block to, you know, refining elsewhere to perhaps get to zero carbon, too. So that together with the other critical materials, we can get to the zero carbon battery, because that's the holy grail of this industry, to deliver a battery that's zero carbon, because that goes into the zero carbon emissions car. Then mobility is, is reality, right? Electric mobility is a holistic reality. We're getting there. We're doing our part.

I can't answer your question because I don't have the answer, but I tell you the answers I have, which is we're doing what we can here to go as far as we can prudently and responsibly in a, in a manner that builds an intrinsic competitive advantage, because that's what we got. In any price environment, we're low cost. Our product is technically better. It's sustainably unique. There's nothing like this in the market, that's a competitive advantage, meaning we've branded a commodity on sustainability reality. Zero, zero, zero. These are numbers. These are, you know, pages on a book, right? We're very excited about the future here, essentially. Did I answer everything? Well, look, gentlemen, I think I answered all of your questions.

You know, there are also tricky questions around strategic movements and strategic initiatives, and I've said what I can say. I mean, and I what I always say, I control what I can control. We are a company led by a financial sponsor. What people, what others do, what all these, you know, interested parties that go to press to talk about being interested do, I don't control. I don't sit in their boardrooms. I sit on this boardroom. My role here and the technical team, Brian, Kyle, Rafael, our amazing team, our job here is to deliver and continue to deliver. That way, we build value that we control. This is fundamental, solid value, and this is a company like no other, 'cause we're building a product that quantifiably doesn't have a competitor, essentially.

It is a huge source of pride for all of us, because it took us six years of incredible hard work. I wanna thank you for your patience. I wanna thank you for listening. I wanna thank you for being here until the end, and please send your questions to Jamie, our Chief Development Officer in Canada. We're open to having conference calls, to meeting you one-on-one. We're now gonna go outward focus and talk about all these amazing things our team did. It's a team, it's a team effort. It's every one of us here has a key piece of contribution to build this company.