Earnings Call: H1 2021

Aug 25, 2021

Good day, and welcome to the Anglo Pacific Half Year Results Webcast and Conference Call. At this time, I would like to turn the conference over to Mr. Julian Treggar, CEO. Please go ahead, sir. Thank you very much, Simon. And thank you all this morning for attending our interim results presentation for the whole year ended the 30th June, 2021. I'm joined this morning by Kevin Flynn, our CFO, who will present a financial review as well as by Mark Fisher La Fleche, He's going to cover part of the portfolio review later in the presentation. As usual, we will conclude with Questions and answers at the end of the session. Before beginning the formal business of the meeting, I thought it appropriate to say a few words about the Announcement this morning that I am stepping down from my role as CEO in due course. With an management team in place and after 8 years that now feels like the right time to hand over to somebody else and for me to pursue other business interests in due course. During the transition period, please be assured I will remain totally committed to delivering the best for our stakeholders And we'll give the Board and management all possible support during the succession process, so we can find a suitable CEO to steer the company through its next phase of growth. There are also a number of undone targets, which I plan to and hope to achieve over the next couple of months before I depart. I'm obviously happy to take any questions about this at the end of the session. But turning to the highlights of the Interim results on Page 3, you'll see that, first of all, we are starting to report in dollars, although there are sterling comparisons available. And for the first half of the year, we had quite a stable performance overall. Total portfolio contribution was down only by 4%, And that was a credible performance given that we had disposed of Almost 80% of our stake in Labrador for the beginning of the year to finance the Voetys Bay acquisition. And so we For when a portion of that income through the first half of the year, whilst Oasis Bay only began contributing in the second quarter. I'm happy to report that Foisey's Day has been successfully integrated into the business as a new stream. The other landmark in this first half of the year was that coal for the first time Represented less than half of our portfolio contribution, a significant milestone for the group, and also represented the whole year less than 20 So the transformation of the business is well advanced. We had strong operational performance from Montos Blancos, coupled with healthy copper prices. We also had a much higher proportion of our vanadium Royalty Business, Maracas Mansion being sold to battery end users, achieving higher pricing versus the V2O5 benchmark. And importantly, we expect a much stronger performance in the second half of this year given recent coking and thermal coal price movements. That provides a good backdrop for the strategic review of Thermal Coal Holdings, which is currently underway At Anglo Pacific, and we've had encouraging levels of interest for a possible disposal of our narrow dry thermal coal royalty. The quarterly dividend remains unchanged at 1.75p and is not impacted in any way by the changes in the presentational currency. Turning to Slide 4, I'm just elaborating further on why we are positive about the second half of the year. This visually shows how the commodities within our portfolio have moved during the first half of the year. And as you can see, there's been tremendous growth year to date, particularly in met coal and thermal coal. But most of that growth has come in the last 3 months. So you won't have seen the benefit of that in the first half of the year. We've also seen strong growth in vanadium and cobalt in the last 3 months. Copper has remained roughly Stable year to date, up 20% although down recently. And It's interesting to see that iron ore, which we have sold out of in the short term at least, is down the most. So In hindsight, that's beginning to look like a reasonable investment decision to switch out of iron at a high price and into Cobalt. And Mark will talk further about why we continue to be very optimistic about the outlook for Cobalt. With that introduction, I'll hand over to Kevin to cover the financial review. Kevin? Thanks, Julien. And just before I do, if I could just take a moment just on behalf of the team here to acknowledge the announcement I'd say about Julian. The business is in fantastic shape, certainly from when he joined the business. And we've got a fantastic team in place here. And from a personal perspective, I've learned so much from Julian, but as he says, much to do before he goes. And We look forward to helping them achieve those ambitions. Turning to the highlights. We have transitioned our Results with the Boise Bay acquisition to U. S. Dollars, which basically represents the fact That we are now primarily U. S. Dollar denominated business. And whilst I'm probably going to confuse you by saying that the highlight slide is still In pence, that's for ease of comparison for the short term. Looking at our earnings, as we noted in the trading Very much in line with that. A lower first half, but we expect a significant Backfill in the second half of the year, which basically reflects the trend of 2017, 2018 2019, but we think And there's grounds to believe that there could be more of a pronounced catch up in the second half this year. The dividend remains covered and That cover should improve as we go through the second half of the year. And cash flow, similar to adjusted earnings, we expect strong cash flow to come in the second So if we turn to Slide 7, and as usual, I'll use this as a means to give you an update on the portfolio as well commenting on the results. Looking at Kestrel, the performance in the first half of twenty twenty one compared to 2020, these numbers are in U. S. Dollars, It was down 37%. Of that 37%, 20% was volume related and 17% was price. The volume really, if we look at H1 2020, this was still the time at which Adara was really accelerating volume growth From their record levels in 2019, but in the second half of twenty twenty, they were mining through a localized in the body and mining rates slowed down, which is why the production levels in H1 'twenty one Are a bit lower. We expect that mining rates to continue at these levels in the short term. But we note that Adara have maintained their guidance overall. So broadly speaking, we would expect H1 to represent about 45% of Volume for 2021, so volume upside to come we think from the second half of the year should Adara maintain their guidance. Looking at Mantis Belencos, again in H120, this was still in its infancy stage of contributing to the group's revenue. And since then, they've really increased and improved the grade at the mine, which has obviously resulted in about 15% increase In payable copper in the first half of twenty twenty one compared to 2020. Clearly, this royalty is also benefiting from the copper price, which really moved in the second half of twenty twenty and continues to look pretty well supported at these levels given the supply demand Dynamic, that's at play in the copper universe. Maracas mentioned is one where we had not quite A like for like comparison, H120 was when we were allocated a 1,300,000 charge against the offtake arrangement. That has now worked through the system. We've seen some volume growth coming through from Maracas As they've completed their plant upgrades, the volume was up about 22% in the period. But more significantly, and most it probably hasn't fully come through at the half year of this year, they are now starting to sell sort of to produce and sell A slightly different kind of vanadium product for use in the battery market. And this, we think, is Likely to be a catalyst for better pricing to come in future. Looking at Narrabriar Thermal Coal, There have been some well documented issues that Whitehaven have been dealing with here in terms of the mining geology and process. Volumes were down significantly in the first half of the year as a result. And clearly, both Kestrel and Narrabri Didn't experience the same level of commodity price performance as other commodities did. And as Julian said, we're expecting that Trend to reverse significantly in the second half of the year. So we would expect strong performance to come in the second half of the year. For Kestrel and Maribyr, we are expecting long haul change outs, most likely both in the Q3 of this year. So the increase in our volumes should really be felt the most in the final quarter of 2021. Looking below the royalty revenue line, the Boise's Bay stream contributed 3,800,000 This number is based on 5 deliveries in the period up to the 30th June. And realistically, we can probably look at another Probably 15 to 18 deliveries in the second half of the year, of which I think we've processed 6 already to this point. So it's very much performing in line with our expectations in terms of 2021. And the cobalt price, Again, as Julian touched on earlier, is up about 20%, I think, in the last 3 months. So there's some good tailwinds behind cobalt, and I think Mark is going to speak to that a little later on. LIORC dividend is another one that isn't quite a like for like comparison. H1 2020 was held back by planned CapEx investments, which really reduced the components of the dividend designated as a special dividend. And in H1 2021, although we've obviously benefited from the iron ore price, that represents a holding, which is 77% lower than H1 2020, but still a very good outturn given that dynamic. We continue To receive flow stream dividends as they kind of wind down that operation, that was kind of front loaded to the first half as they paid their final dividend, which was receiving cash during the first half of the year. And McLean Lake, this is one where you need Combine the interest of the principal, you'll see there was no principal repayments here as the operation was on care and maintenance for about 3 months in the first half of the year. That is now behind us. All our operations are back in production. And EDBC, very solid performance despite Slightly lower volumes in the first half. They're maintaining their guidance for their financial year 2021. So it would suggest there's Some volume recovery to come and obviously the gold price is still relatively healthy in the context of the last few years. I think just before leaving this page, it is worth reemphasizing that In terms of our total portfolio contribution, coal now represents less than 50% of the half year, and that's a very significant point for Anglo Pacific. Not only is over 60% of our asset value derived from battery metals, but we're now starting to see this coming through our revenue in a very meaningful fashion as well and really kind of highlights the Fashion as well and really kind of highlights the delivery on the execution of our stated strategy. Turning to Page 8, I won't dwell on this too much. I think we've covered off most of the points on Page 7, But this is a snapshot of our income statement. Operating expenses were up a little bit in the first half of the year. This was mainly in relation to some portfolio management issues and also some costs associated with Bosie's Bay. But overall, the adjusted earnings kind of dropped down to the bottom line in line with the contribution. The tax charge for the year is in line with the Decrease in the operating profit. And as normal and as usual, we have some valuation items, which Which run through the P and L, which we adjust out from adjusted earnings as these are non cash. So adjusted Earnings of $10,300,000 produces about $0.055 per share in the first half of the year and that's in old money about 4p. Turning on to the balance sheet next. Just to take a moment really to Try and explain how Boise's Bay falls under IFRS and gets accounted for in our results. It kind of appears in 3 different places. We acquired a structure rather than the asset. So with that structure, we inherited some tax losses. So the value of our investment is bifurcated between the stream itself And the value of the tax losses, so you will see the deferred tax asset coming through as part of our royalty asset. In addition, the contingent consideration, which is due to the vendor in certain price circumstances Under IFRS, that's fair value to each reporting date and that results in an increase to the asset value. But Conversely, there's also the liability below the line. So what we've done here is we've brought the liability up to net off the impact of that contingent consideration to kind of represent on the balance sheet what the royalties in total represent. The Castrol royalty decreased in value and will continue to do so with depletion, And that was the main driver there. In reality, that valuation currently should be higher given the coal price Movements that we've seen certainly coming through consensus since June. So more to come in terms of Cash flows from Coke and Coal certainly in the second half of the year. Mining and exploration interests, that is a snapshot as of June And doesn't reflect the decrease in the value of Barclays Energy since the reporting date. So that number will have come down. And I think Mark may touch on this a bit later on also. And I'll come to borrowings and cash on the next slide. So turning to my last slide, Slide 10, this shows the change in cash balances between the start of the year and the end of June. I think just to look at this, it's clearly dominated by the acquisition of Voisey's Bay and the financing structure that we put in You will see the issue of ordinary shares. That was a very successful oversubscribed equity placing. We obviously divested a portion of Liorg. That number does not include the additional approximate $20,000,000 of sales which were made in December last year And then the acquisition cost itself. So between the finance costs and the various other boxes, the shares, the Disposal and the acquisition, the deal cost of approximately $10,000,000 are kind of split between those boxes to represent where they actually get accounted for on our cash flow statement. The dividend looks very low and that reflects The fact that there was only one payment made in the 1st 6 months of the year and there's 3 kind of catch up payments to be made in the second half of the year. The final dividend was paid, I think, last week. And then just in terms of our financing flexibility and the resources We currently have $121,500,000 drawn on our facility. So we have approximately $28,500,000 undrawn. At the half year, we were 2.44x levered on that facility. We are allowed to operate with leverage ratios 3.5x significant headroom under our borrowing restrictions. The LIOX stake, which remains on our books, is valued at just over $30,000,000 probably $33,000,000 this morning based on share prices and FX rates. And we also continue to hold about 4.6 Shares and Treasury. So when you add everything together, excluding the cash balances that we have, that would give us flexibility of about $70,000,000 That we could look to deploy and use to fund future acquisitions. So overall, the results for the year for the first half Don't really reflect where we think we're going to be for the year as a whole given the rapid movement in coking and thermal coal prices since the beginning of June, and the business remains in pretty good financial state with Firepower to deploy in the second half of the year. So with that, I'll hand back to Julian to look at the business update. Thank you, Kevin. Yes, I would just reiterate that we do expect this year to be Much more weighted to the second half than we've seen for many years based upon the circumstances of the acquisition of Voisey's Bay plus the movements in Commodity prices we've seen. Turning to Slide 12, I'm happy to depart leaving transform a new Anglo Pacific Group, we are now over 60% in battery related metals. The volatility of the portfolio has been Altified by making a number of acquisitions, which are more uncorrelated. And so there's more sustainability In through cycle cash flow generation and we've made $435,000,000 of acquisitions With great returns for shareholders in all instances. So I think We've done a significant job in shifting the portfolio. As you can see on Page 13, when I joined in 2013, we have no battery metals. We were 80% in coking coal. Now we're 62% in battery metals. If we dispose of our thermal coal assets in the next 6 months, and cash flow will drop Due to depletion in the second half of the year, I estimate our coal exposure at year end will be Around 7%, which will be a tremendous shift over this period. And this journey from coal to cobalt and new battery materials, I think, will be rewarded by high ratings in due course. And we've done all of that without compromising a very high quality geographic exposure. We've shifted a bit from Australia to Canada, but we continue to be 95% in OECD jurisdictions. So with that, I'll hand over to Mark LaFlesche to talk about the royalty portfolio. Mark? Thank you, Julia. Kevin has touched on a number of these assets already, so focusing on the wider portfolio. First, Voisey's Bay. The Poisey's Bay mine expansion project is now approximately 66% complete with executed CapEx now at 1,300,000,000 I have figured just under $2,000,000,000 In H1, there were some delays in mining at PV as a result of open pit flooding, Primarily related to extraordinary weather conditions that affected production at the Ovoid pit. However, these pit conditions have recovered well And there was no impact on underlying production as a result of treating stockpiled concentrates at the Long Harbour Nickel Refinery. We're really pleased to see first ore production at Reed Brook achieved in June of 2021, which is a great milestone for the Underground expansion and the Eastern Deep start up is expected in 2022. So we'll be keeping a close eye on that. The next 12 to 18 months will likely be a bit of a transition period as the production will be weighted towards the .:] And then thereafter, we anticipate a steeper ramp up curve into the underground operating in a higher grade of cobalt as the project approaches completion in 2025. At Mentos, the debottlenecking project is Continuing well and is on track to complete next year. We've seen the company focus on the debottlenecking project as its Key strategic imperative, but we are keeping a close eye on other initiatives that the company is exploring. For example, The potential to expand the mine life of the oxide ores and as well as the potential to further expand mill throughput capacity following the completion of the currently bottlenecking project. So again, something we'll be keeping a close eye on. At Enkolo, very pleased to say that construction activities at the mine and at the processing facility have been progressing on schedule, on budget. We expect that the conditions precedent for Anglo Pacific's $20,000,000 funding commitment will be achieved in the first half of twenty twenty two next year. Equally at POE, we're very pleased by the pace and construction of the demonstration plant. POE's Brazil Nickel is currently constructing a 1,000 tonnes per year demo plant to prove the concept. We think this is a great step towards Derisking the project and should help but derisk the company's construction financing activities. The dental plant is approximately 30% complete with First Nickel targeted in May 2022 and Anglo Pacific's 1.25% royalty will apply to production at the Dental plant. So we potentially could expect 1st income from this royalty, although in a very small amount initially next year. Taking a longer view on the project, the as at the current pace of development, POE remains on track To be in production in a decade, so that's something we're really happy about. At Norat, Our wholly owned subsidiary, BHP, has launched a takeover bid to acquire Noront Resources. The bid is subject to a minimum tender threshold, excuse me. But should BHP be successful, this would mean that The world class Tier 1 counterparty to progress in on its Ring of Five's projects, which include, of course, Anglo Pacific's chromite royalty. Salamanca has faced some permitting setbacks in Spain. The Nuclear Safety Council has issued an unfavorable report in In relation to the granting authorization for the construction of the uranium concentrate plant, Berkeley refutes this assessment and Berkeley has initiated a hearing So we expect more updates on that over the next 6 to 12 months. At Kanariako, Condencia Copper is currently looking to complete an updated has complete is looking to complete an updated PEA in the next months. They've identified several opportunities to lower CapEx, while also improving the project's environmental, social and governance practices. So all great news there. We've also seen Fortis View Metals Group, Candente's largest shareholder continue to support this company And has recently subscribed to an equity issuance with proceeds going to fund the PEA. Unless that due date, An asset that doesn't always get a lot of attention in our portfolio, but we wanted to highlight the fact that PEA has been published in relation to this project. Dubi is the largest undeveloped gold project in Liberia with According to the PEA figures, a 14 year mine life, a very attractive Cash costs of $8.20 per ounce of gold, all in sustaining costs just under $900 and over the 14 years with average I would annual gold production just under 200,000 ounces. So something to keep a close eye on. We understand that the next step will be the preparation of the definitive feasibility study. And while this asset ultimately is Yes, non core commodity and then not off target jurisdiction. We will continue to monitor this and look forward to seeing further positive updates. In terms of the cobalt markets, as mentioned by both Julian and Kevin, We've been really encouraged and continue to see our investment thesis play out in terms of market developments in the near term, but also the long term. We've seen very strong cobalt prices with spot prices up approximately 60% since the beginning of the year. And that's been very much underpinned by very robust electric vehicle sales growth In H1, 2021 versus same period last year, we've seen bigger volumes of volumes up 160%. And in the same period, the electric vehicle market share has doubled to just under 7%. We've seen most market commentary adjusting electric vehicle market share rates upwards over the next 5 to 10 years, which is very encouraging for cobalt demand on the back of strong EV sales growth. Furthermore, we've seen demand support from improved sales to trade and industrial end buyers where they've been looking to replenish Low inventory levels, which ran down in the context of the COVID disruption of last year. On the supply side, we've seen strong support In part because of COVID-nineteen disruption, but also because of civil unrest in South Africa, which has disrupted transport logistics for Cobalt produced out of the Democratic Republic of Congo in South Africa, a key supply channel and ultimately A source from which most of the alcohol also into China is derived. So the Chinese government Earlier this year, I also looked to stockpile 500,000 tonnes of metal during the first half of the year sorry, 5,000 tonnes of metal, excuse me, During the first half of the year, which again, also supportive of the long term outlook for cobalt, and we're really pleased to see The commodity outlook shaping up as we anticipated at the time of our investment in this commodity. Turning to look at the business opportunities And our royalty portfolio M and A update, we're seeing lots of new opportunities, the majority of which are in the $5,000,000 to $50,000,000 range. We're seeing a lot of opportunities that are fund construction, mine expansions or fund the development of projects. We're not working on anything that we think would be ready imminently, but we're optimistic that over the next 12 months, we can continue to supply our cash to acquire value accretive royalties to the portfolio. And as always, we look at royalties of both sizes, but those that are number 1, High quality operations and attractive jurisdictions and number 2 commodities to support a more sustainable world including those tied to Decarbonization of Energy Consumption. So to wrap up, I'd just like to echo some of the sentiments expressed by Kevin in relation to Julien's departure. The business has been absolutely transformed over the last 8 years. I couldn't be prouder to have been part of that journey. Looking forward, Anglo Pacific could not be better positioned to continue on its journey of growth and diversification and on a personal level and from the team, Julian, it's been an absolute Thank you very much, Kevin and Mark, for that review and your sentiments. So turning to Slide 16 with regards to the outlook. I think, hopefully, it's come through in this presentation that we Expect much stronger results in the second half of the year with a strong outlook for commodities supported by significant global infrastructure commitments. We also expect coal prices to remain at current elevated levels, up 80% 90% Respectively for coking coal and thermal coal in the last 3 months. Of course, given our big exposure to cobalt prices, We're comfortable again that cobalt price is up 20%. And what we've seen in the past couple of weeks is a significant drawdown Of around 8,000 tonnes in Chinese inventories, which when restocking comes Should be a positive catalyst for cobalt prices in the second half of the year. And we see from a catalyst perspective, The strategic review underway to consider options in relation to a possible divestment of Narrow Bri thermal coal royalty and should that come To pass, hopefully that will allow us to be attractive to a whole new group of ESG Investors, which will benefit the share price, and we have some significant financing flexibility To further grow the portfolio in the green space in the second half of the year. So everything looks Well said for a strong second half. On a personal note, I thoroughly enjoyed my time at Anglo Pacific. I'd like to thank my Board colleagues both past and present and the talented and dedicated team, which I'll leave behind. And I strongly believe I'll continue to grow the business into 1 of the leading royalty and streaming businesses globally. So thank you for your time and listening to this presentation This morning, we'll now open up the floor for questions from the attendees. Simon? Thank you very much, sir, and thank you very much to our speakers today. Please note you'll be using a speakerphone just to make sure your mute function is turned off to allow your signal to reach our equipment. We'll now move to our first question over the phone, which will come from Tim Huff from Peel Hunt. Please go ahead. Yes. Good morning and thanks for taking the questions. A few questions, if that's all right. I guess The first one was on your announced strategic review of Narrabri. Just a little bit more color around that A timeline, it looked like from the text in the release that, you already had a couple of Interesting indications. And Julian, you also mentioned that you're looking to complete it within 6 months. I was just wondering if that's Maybe a stated intention, although maybe not firm, you're trying to complete that divestment in the coming 6 months or by the time you step back? Well, it's a very much stated intention, but obviously, it depends upon the Levels of offers we received and our main focus as always is shareholder value. And so we'll see how we go, but the initial indications are promising. Okay, that's great. And then secondly, at the time of the Voisey's Bay transaction, It was mentioned that there was potentially some near term M and A that could happen. Mark, you've mentioned that you're not expecting anything in the near term. So I was just wondering if that opportunity has fallen away or you stepped back Or you're just being a little bit more patient with the portfolio at this point in time? I mean, I think there was an opportunity we were Engaged with, but they were considering dual tracks in terms of financing. And given the hot market for Base Metals and Copper in particular, they elected to IPO the business successfully. So that opportunity Slipped away from us, but we continue to look at other similar opportunities and hope to execute on them in the coming months. Okay. And the last thing just on the CEO transition, I mean, Julien, really well done on repositioning the firm over the past 8 years. I mean, like you said, with the Voizen Bay transaction and now the stated Strategic review of Narrabri, it's a significant shift away from the old portfolio. I didn't imagine that there was going to be any significant shift In the existing strategy going forward, but I don't know if the Board or management have talked about if it's just a natural transition time, not necessarily any indication on strategy going forward? I don't think it's any indication of strategy. Clearly, my successor or CEO will review the strategy and may decide To do other things, but for the moment, it's very much no change and I'm very much moving forward on becoming more and more battery and 21st century materials We'll now move on to our next question over the phone, which comes from Richard Hatch from Berenberg. Please go ahead. Your line is open. Thanks very much. Yes, and thanks for the call and all the best for the future, Julian. Just one question. On Narrabri, Can you just remind us what the carrying value is of that asset? And obviously, it's a seller's market for thermal coal assets due to ESG despite the Strong price performance. So where's your kind of mind on selling it for under NAV? Is that something you would consider doing in order To improve the green credentials in the portfolio or would it have to be for NAV? Thanks. The carrying value for the investment is $47,000,000 or so. We bought it for Around $65,000,000 and we received around $32,000,000 of income from it. So effectively, our in cost is In the lower $30 And we will have to balance Whatever offers we receive, whether they are above or below net asset value, with our view as to what potential rerating there is For the stock from becoming effectively thermal free. But as I said, there is more interest than you would imagine in these assets. And We will update the market in due course should we make progress. There are no further questions queued over the phone at this time. So I would like to turn the call over to Mr. Bannemann for any questions posed over the web. Thanks very much, Simon. We've had a few questions from the webcast. The first one is from Yanders Peters from Resco Asset Management. Good day. In terms of your development royalties, can you please provide us with some sort of ranking in terms of which of these you expect to start producing first? And also which of these you think will yield the most value for Anglo Pacific? Sure. I'll take that one. So take the first part of the question. In terms of timing, the Incoa opportunity is The nearest in the down when we look down the runway, as we anticipate funding this in early 2022 next year. Beyond that, the Salamanca opportunity excuse me, beyond that, the PoE opportunity would be number 2, Expected to come online in the mid next decade and then thereafter when we go through the rest of the development portfolio throughout Later this decade or in the 2030s. In terms of value, These assets ultimately will depend the value of these assets will ultimately depend on the commodity prices at the time the underlying assets come into production. So it's difficult to rank them today. But in terms of quantum, the POE at royalty would be the largest in terms of ticket size As the POE opportunity gives Anglo Pacific the right but not obligation to acquire an additional royalty is under over 4% For $70,000,000 depending on the development stage. And so within that context, from a capital deployment perspective, POE would be the most meaningful. Thank you. We've got one further comment from Yanders, which is good day. On Voices You mentioned the amount of deliveries. Are these all the same size? Do you have the amount in tonnes, stroke some guidance? Each delivery is uniform in size. Each delivery is in a 20 tonne lot. We typically receive 2 to 3, potentially 4 deliveries per month, but this will range depending on So underlying transport conditions, we of course received delivery in warehouse in Rotterdam. So again, depending on how busy ports are, it can slip back and forth into different months And as well as the logistics channels and logistics of just shipping the cobalt from the Long Harbour refinery in Newfoundland to Rockdown. And we've got a further question from Stevie Goff. First, we're sorry to hear your departure, Julien. You've been brilliant. And then his question was any thoughts on investing in Africa? So many opportunities. Well, we We are open to certain African jurisdictions. We are open to Moving our OECD focus to a lower percentage and taking more Jurisdictional risk, and so we do look at some opportunities in select African jurisdictions. So We are examining those in the portfolio, and one shouldn't be surprised if we do make A further African investment. We obviously already have legacy investment in Liberia through Dukbe, But it's something we're open to. We probably wouldn't go to a country like the DRC, but there are Better jurisdictions, which we would certainly be amenable to. Thank you. We've got no further questions from the webcast at the moment. I'd like to pass back to you Julian for closing remarks. Okay. Thanks very much, Scott. Well, thank you all for your time this morning. As usual, we are available for 1 on 1 questions Directly, you know how to get hold of us. But safe to say, we are looking to the second half of the year with confidence. And if we do manage to dispose of our thermal coal interest, we think there'll be further catalyst For rerating, and we would obviously expect to recycle the proceeds into more green opportunities. So There's lots to do in the next 6 months, but thank you all as some shareholders and interested investors for your support during my time here. It's Much appreciated and we will update you as we progress. Thanks very much. Ladies and gentlemen, this does conclude today's call and webcast. Thank you very much for your participation.