Earnings Call: Q2 2021

Aug 25, 2021

Hi, everyone. My name is Cristiano Velozu. I'm the Founder of Verde AgriTek Plc. I'm very thankful for you attending this conference live and equally happy if you're watching our recorded video on YouTube. Before we begin today's event, I would like to ask you for a little help. If you've been following Verdi, if you like what we're doing, you can help us very easily right now. If you click on like, you will allow Google's or YouTube's algorithm to show this results presentation, this video to all the potential shareholders, to all the potential investors who would potentially be interested in following our progress. Just by clicking like, you can help us that way. If you share the video, then you're tricking the algorithm even further. And if you make a comment at the end, it's super. You make a big difference. Something else I'd like to suggest you to do, and you can do that if you're watching it live straight away on our YouTube. If you're watching it on YouTube, you can also go and subscribe to our channel. And when you subscribe, if you click the little bell, you will be informed if and when we go live. I did a live quick presentation last week. I intend to be doing the same in the coming weeks months. So if you wanted to be made aware straight away that we're live, you need to do that. So our Q2 result is out. We're very excited, triple digit growth. We're equally excited about everything we're seeing happening right now on Q3. And more importantly, we are, as always, thinking beyond. We're thinking beyond what we disclosed the results now. We're thinking far beyond what we're working right now, and we are equally excited about our growth trajectory. And above anything else, we're extraordinarily excited about the contribution we're making to the world we live in now, but more importantly, to the world we will have our children living in. So thank you very much. I will now allow Felipe Paulucci, our CFO, to go over the presentation. If you have any questions, please end those questions. And at the end of this presentation, I will be able to answer. I hope to answer as many of those questions as possible. And I look forward to the interaction at the end of this presentation. So thank you very much. Filipe, please thank you very much and go ahead. Thank you, Christian. Can you see my screen now? Yes. So move on to our presentation. As you can see, we have the first highlights, then Q2, 2021 financial statements, a cumulative risk operational summary, the key metrics, SG and A expenses, some other highlights, financial summary, based on economic scenarios, sales growth and guidance and then we go to the Q and A section. Moving to the first chart, the left top of the view, we can see here our cash. We still have a strong ability to generate cash flow in the long term. We remain with a credit facility of over BRL 22,000,000 with financial institutions in Brazil that if you want, we could use. So far, I'm not using any of it. The total loans for CapEx currently is around BRL 11.7 billion. And the cash flow by the company increased by 2 14% to $1,901,000 compared to $607,000,000 in Q2 last year. On profitability, revenue from sales for Q2 was $5,370,000 from the sale of 96,200 tons of the product at a $56 per ton sold. Revenue in Brazilian real increased by 159 percent to $23,200,000 compared to EUR 8,900,000 in Q2 2020. On operational profit before non cash events, we increased by 109% to EUR 1,220,000 compared to EUR 584,000 in 2020. On net profit recorded a $79,000 profit compared to $444,000 in Q2 2020. Trade and other receivables increased by 2 59 percent to $6,020,000 compared to $1,670,000 in Q2 2020. And on volume side, we did increase 35% to 96,200 tons compared to 71 20000 tons in Q2 2020. On operations in Q1 2021, the company has invested over $500,000 in infrastructure improvements. Such for example, ground of Plant 1 that were paid to provide greater operational efficiencies, access routes as well to mining pits that have been enhanced and also project developments for Plant 2 that were further advanced. The company remains fully permitted to mine over 40082,000 tons per year and is already submitted also mining and environmental application for an additional 2,500,000 tons. In the right side of the screen, you can see it's of summary that we had another strong second quarter with a triple digit growth in revenue. And also, we did announce in the last press release that the company has increased our guidance for revenue to BRL 60,500,000 in 2021, which represents a growth of 72% year on year. Then beyond the next two quarters, the ex team is also having engagement with the company's expansion plans to increase our production capacity for the year of 2022. Then a bit on financial statements. You can see in the left side of the table to 2021 and then compared to last year and also the 1st semester 2021 year to date against 2020 year to date. It's good to have a highlight here inside of our revenue, which we'll have a bit of more details later. The gross margin also has increased from 62% to 72% on quarter based comparison and also to 68% against 57%. This year, we have some impacts on freight, distribution freight that also improves our revenue. Also, we had the KCL price that also have a chart to show later that has increased in the market. The general expenses also increased from $350,000 to $422,000,000 And year to date also a 46% increase from $770,000,000 to around $1,120,000 Going down to the net profit then, we came to the numbers I've said in the prior chart of $79,000 on Q2 2021 against $444,000,000 last year. In the year to date, we are EUR 929 negative against EUR 348 last year. On operational summary, here a bit on the numbers per ton. We can see that the revenue per ton has increased 60% from $35 to $56 The product cost per ton also increased from $13 to $16 per ton. Then the gross margin is $72 against $62 So the benefit that we had on revenue was much higher offsetting totally the additional cost that we had on fuel and other expenses locally in Brazilian markets. Going down to the next chart, we have 2 charts here that you can see the sales per ton. It's good to have an idea at each quarter since 2018 how the company is growing and showing in the end, in the full year, for example, that we came from 29,000 tons in 2018 to 100 close to 120,000 tons in 2019. Then last year, 2020, we had 243,000 tons and now we are projecting 350,000 tons for this year. And in the right side, here we can see the revenue of the company projection for this year also showing a very, very big increase compared to 2 or 3 years ago, achieving around $40,000,000 at the end of this year. Going to SG and A, sales, general and administrative expenses. We do have a sales marketing expenses increase. Here you can see more in detail in the next chart, but related to people mainly. Product delivery and freight expenses also go to more details in the next chart, meaning total expenses increased on 2 70%. In the general expenses, we do have an additional 21% expenses, but mainly here, I can say that's general and strategic expenses and IT software expenses, also related to people that were hired this year against last year. Now a bit on the tail of the prior chart, you can see FOB, which is sales that the farmer pays for their freight and is responsible for lift and CIF, which is the sales that the company delivers the product until the farm gate. So we can see a huge increase from 6% last year to 43% of the sales on this quarter are on CIF method. This is quite good for our supply chain since when we sell CIF, we do control much more the timing and the number of trucks and all the information we need from customers to avoid any kind of mistake or any kind of lack of trucks in the factory, this kind of thing. General expenses in the right side, we can see here that we have the general infrastructure expenses and IT software expenses. And most of it is related to the 29 additional people that we have compared year on year basis and also the number of license and softwares that we are using currently in the company, which has an impact of the total number of people. Moving to the next chart, the financial summary. We can see revenue from sales for Q2 that was $5,370,000 for 96,000 tons and $56 per ton sold. So despite the 20% Brazilian real devaluation, the revenue per ton has increased mainly due to the three factors that we've mentioned below. Product volume sold at CIF, as I said before, from 6% to 43%, potassium chloride CIF price that increased the average from $287,000,000 to close to $400,000,000 here from $500,000,000 in Q2 this year. Also, the number 3, bags, which is the mixture that we are selling, that has a higher sales price per ton than the product. It was launched in Q4 2020. And now in Q2 2021, it already represents 13% of the total sales of the company. On profitability side, operating profit before low cash events increased by 109% to EUR 1,220,000 compared to EUR 500,000 in Q2 last year. In gross margin side, I've already said it as well, 72% this year against 62% last year. On sales volume, we increased 35%. On cash side, we did have a 1,900,000 dollars in the end of the quarter compared to $600,000,000 last year and trade and other receivables increased over 2 59%, what was expected due to the company growth and sales with 30 days up to 3 60 days at payment terms. On summary of interest and payroll loans, we do have here a remainder with the 11.83 average cost per annual. We do have some loans that depends on inflation rates. So it's not a fixed amount, but it changed a bit. But we did not have any additional loans left in Q2 2021 of the total gain of around BRL 11,700,000 BRL 11,800,000 on loans. Then I have a bit on the economic scenario. You can see here the exchange rate. We see that Brazilian real is around it's supposed to be flat year on year. And then we do have the Brazilian real against Canadian dollars against Canadian dollars with a big increase here from $4 to $4.36 which has a difference between exchange rates on Canadian dollars against U. S. Dollars. But yes, the impact from coronavirus that we had last year is already seems to be not hitting our currency anymore. On potassium chloride price, you can see the increase I've mentioned before. We used here on mineralized stake price as a basis for this chart. And you can see an increase, a very relevant increase year on year basis. And also in the last chart, the 30 year history, we are not seeing yet here an increase, but probably it will be soon showing this impact as well. The year on year sales growth, we can see now here a comparison again 2018 up to 2021 from 29,000 to 350,000 tons projected for this year 2021. And also, sales of 350,000 tons This remains our target. And on revenue side, the target increased from BRL 50,000,000 to BRL 60,500,000, which shows an increase of 72% year on year. And last chart, we can see here the revenue projected. So we can see from 2017 that the company almost had none or less than BRL 1,000,000 revenue. Then now we show BRL 60,000,000 projected for this year. And then 2,000 Phase 2 and Phase 3 of our project showing a huge increase projected for the coming years. Well, now I pass it back to Cristiano that will handle the Q and A section. And I'm also here to support in anything you need or any question that investors might have to me as well. Thank you, Cristiano. Thank you very much, Filipe. If you could please stop sharing your screens, so we have a full screen for the rest of the presentation, Felipe. I think Felipe Isabelle, if you could just tell Felipe, he's still sharing his screen. Okay. We have No, no, no, no, no sharing. Thank you. Thank you. Cool. We have a lot of people attending this call and live and like to thank each and every one of you. If you don't mind, when the video is available on YouTube, if you could help, if you could go there on YouTube as well, click like, click share, it makes a difference. It makes a difference. We always like one click from reaching a greater audience. So every little helps and we really appreciate that we're all in this boat together. Starting then with the questions. If you've sent a question on the chat option on your screen at the bottom of it, please transfer, copy and paste this question over to the Q and A option, so we can so it's easier for me to read those questions. First question we have, concerning the lithium content in the material you mine, I understand that it may be a too big investment for Verde to better understand the recovery possibilities of lithium. Could it be an opportunity to bring in an external partner to pay for the exploration studies and extraction equipment needed and then charge them a hefty royalty for the lithium being mined. In today's hot market for lithium, I think there is an interest out there. That's a very good question. In the pre feasibility study we put out several years ago, there was a 4th mention there about some lithium anomalies, low grade anomalies on in our material. And we focused 100% on fertilizers. If anyone would like to discuss with us, if anyone would like to introduce a potential interested party to fund the required exploration work, There would be some most certainly some drilling required. There would be most certainly a bunch of assays required for an exploration program. If anyone wants to do that or knows any part who might be interested, we would be open to exploring this possibility. As you all know, and I'm pretty sure you all will appreciate, is that what we are doing with potash, what we're doing with Verde on its own is already a massive value generation proposition, which requires a lot of time and focus from us and from our team. So we won't distract ourselves, but that and especially the treasury, but that doesn't mean if there is something on the table that we shouldn't explore. That's something which actually excites me about as well. Thank you for the question. Next question. The bags sales sits around 13% of total for Q1 and Q2. Do you expect it to stay that way for the remainder of 2021 and increases will be seen year over year after farmers have tried it once? Or do you expect the share of bags to increase during the year? I don't know the answer. I most certainly have a very high level of excitement and confidence on this project. Obviously, it's a product that requires more preparation and technical persuasion than just selling K40. So it's taking time to ramp up. Most certainly, a lot of farmers, as you all know, will try and then make greater orders the following year, but I'm pleased. And the other problem that's something else which is important to say, it's when it comes to logistics and production, we're having to use Plant 1 to produce K40 to produce the different compositions of bags. That creates a little bit of complication on deliveries, on production planning. So I'm looking forward to having our Plant 2 in operation next year because then with Plant 2, it will be dedicated to K40 production and will give us more flexibility for using Plant 1 for BACS production being able to offer BACS both in totes, but also in bulk with more alternative. One problem we currently face is the agenda, the deliveries to farmers when we have the different composition, especially when we're talking about bulk deliveries. So I think with Plant 2, it will make it slightly easier for us. Next question. At the beginning of today's presentation, you talked about looking forward at the future. As you may recall, you once said in a video interview with John Keiser that the hardest sale will be the first 50,000 tons. In the same metaphorical sense, have you now sold those 50,000 tons? Are you confident for the future? Yes, most certainly. And I stand by that. Those that initial amount of product will forever be the hardest sales. It doesn't mean our life is easy from now onwards because it will never be easy, But it will never be as difficult as it was knocking on people's door and say, hey, there's this new product here. Do you want to try a little bit? You're going to be the first one, by the way. You're going to be the first one. So it has helped and it has changed. Another question here. Are you currently in negotiations a private equity fund to find a partner with whom to take Verde private. With the fund buying out the 75% of the company, you do not currently control. No, I'm not currently in negotiations with the private equity fund for that purpose. Next question. How common are gluconite deposits? And how favorably does your reserves potassium content compare? It's a good question. They are relatively rare, those gluconides deposits. But an interesting discovery of a very large greensand or glauconite deposit took place in Mars. So I know how trend it is nowadays to talk about going and mining out of Earth. There was a good article The Economist a couple of weeks ago about that. So who knows? Who knows? Maybe one day, we will be joining Elon and going to Mars to help to fertilize all the planet. The second part of your question, our project or mine certainly compares very favorably with other deposits. So for example, there are some glauconiccurrencies in India, but there it's very low grade. It's about 3%. Or in the U. S, it's around 5%, 6%. But most of the reserves in the U. S, to the best of our knowledge, have been depleted. As you might remember, gluconite has been mined in the United States for over 2 centuries. Gluconite was 1 or the 1st conventional source of potash and millions of tons were used in the country. But what is left is of no commercial interest to the best of our knowledge for different reasons, although from residential development or to the fact the mine has been depleted already. There is a mine in Russia, we're aware of and they from what we know, it's a small mine and it's lower grade than ours. Long time ago, we were approached by the government of Estonia talking about a mine they have come across. We actually went to look to see what they're talking about, but they had like about 50 meters of calcium carbonate on the top of it, which makes it completely uneconomic. So the short answer to your question, Mark, would be we've never been able to find anything as favorable or as important or as economic as we had until the discovery in Mars, which might change everything in those. Thank you, Mark. Next question, there's a next. I wonder if that's someone sending me a kiss. That's I will move forward. The next question, would you be open to working with an interested take private partner if one stepped forward? That's from the same gentleman who asked the other question. The answer is a bit obvious, I think, which would be it would be something for the best interest or for the interest of all shareholders and in line with what we believe is the price, we could certainly look into it. Next question, given that the product costs roughly 6 times as much in fuel to deliver when compared to traditional potash. How does the company plan to increase its share of the local market where delivery costs are low. Even though it costs a lot more to deliver our product than it costs to deliver KCL. We always sell our product for the farmer on a deliberate basis. So if you're a farmer in Mato Grocery State and you're currently paying BRL4,000 per tonne of potassium chloride, you will pay BRL4,000 divided by 6 for our product. And Verde will reduce its FOB price to adjust, so the farmer isn't paying anything more for our product. If the farmer is right next to the mine, the same applies, in which case, of course, we have a higher margin to the other scenario. So that's how we will continue working and that's how we will continue evolving our market share. You once mentioned that K40 is not as popular with farmers of short season crops. Has that changed at all? And does the company have a strategy to increase demand for its products from these industries? Short season crops, it's niche. As once I heard from a consultant, it's actually triple niche. So when you look at the main crops in Brazil, this will represent about 90% of potash consumption. Short season crops, it's not something that I would be worrying about. Some short season crops, they have like they grow, they have different alternatives for using our product, but it isn't something relevant for us at this point. After we have 90% market share, then it's something we need to look a little bit more detail. Do you then another question. Do you have a December 31 projection for what the company believes the December Canadian dollars exchange rate will be? No, we don't. We're not in the currency forecast business. At year end last year, it was 0.245 with today reporting 0 point 24. If not a spot price, do you have a range estimate or even a directional estimate? Hey, I'm a simple guy trying to build a fertilizer company, dealing with exchange rates, currencies and trying to pretend to know I know how they're going to move against each other is definitely beyond what we can do here. Next question. Your license application for Plant 2 seeks approval for a formulation of balanced feed and prepared feed for animals. Can you explain what additional processing you're considering beyond greensand? No, I can't explain what in addition to what we're doing. I appreciate there is access or there's availability of material over the Internet that might sometime allow people to make their own theories or ideas, but we just can't comment on any of that unless, of course, it's material, if it's something relevant for what we're doing at the moment. Next question. Can you provide Jesus, wow, there are 56 open questions here. So I hope I get to the end of this. If not, I might start speeding up or compiling some questions at the end. Can you provide details of what was acquired for $539,000 as an addition to the non depreciable land and building accounting note 5? No, I can't. Can you provide details of what was acquired for $457,000 $95,000 in Q1 as an addition to Britney? No, I can't. If this is important, like those little tiny details for you, for 1 to invest, which carry on being Investel, it's you're probably looking at the wrong company. Any news on the 2,500,000 ton license? When is that expected and how confident are you in that timing? Is there a chance that the 480,000 tons per year permit will be maxed out before the chew point from the 5,000,000 tonnes per year is awarded? There isn't any material news. If they have been disclosed, it's making its way throughout Brazil's notorious bureaucracy. I don't give a comment on when it's expected and the people who have been falling sorry for very long know how difficult to predict this kind of stuff is. But we are doing our best and trying to do everything we can to allow the relevant people to make their decision. Is there a chance that the 400,000 tonnes per year permit will be maxed out? That's a good question. There's always a chance. If you look at our latest target, our latest revenue target, you will see that we're not worried about that becoming a problem. Are you aware of what are the green fertilized startups of them at completion, small disruptive companies, not the competitors such as Mosaic? And how heavily are you investing in research and development to stay ahead with the best product? Good question. We are investing a lot in research and development, not from investing a lot of money because as you know, we don't have that much money to invest, but we're investing a lot of our efforts, a lot of our creativity, a lot of our analysis, a lot of our strategic view of this space to make sure the little money we have to invest in that can be as efficient and can translate into significant gains and most importantly, in a significant edge to the business. Can you provide details of what was acquired for 144,000 in addition to Mineral Props? The first half of the year disclosing those. I can't provide any details. No, I'm sorry. And I insist, if this is something important, to be asked the question, you've been looking, I think you're missing the point of what Verde is. I think that's a different mindset to when you invest in a small cap in a growth company. If it's important to understand what that kind of stuff, I think you should look for another company quite honestly. Another question, given that the product costs roughly 6 times as much in fuel to deliver when compared to Mission Portage, how does the company plan to increase its share of the local market where delivery costs are low. Oh, I apologize. Now I got your question. And thank you for asking it again. If there's any question you feel like the answer wasn't good enough, please do not hesitate to send it back, especially because there's so many, I kind of get a little bit anxious trying to go over as many of them as possible. So what the question here is about is, what are we doing to increase our market share of the local market, of the market closest to the plant, because, of course, we make more money by selling closer to the market closer to that market than further away. What we're doing is, well, 1, when it comes to marketing, we are kind of focusing more money marketing money to that region. When we look at our OKRs, if you don't know what OKRs are, please go and read a fantastic book called Measure What Matters. If you don't think it was worth your time, send me the bill, I'll pay you for the book. Measure What Matters, brilliant book. We've implemented this in Verde realistically this year, but it started last year and it's been changing things. So it's one of the key okay one of the one of our key R's are in as far as developing the local market. So we're doing our best. We're doing our best. But also, as I like to say, because we have this big mission to have a significant market share in Brazil, not because we want to be selling 1,000,000,000 of dollars, but because we understand the impact this has in the planet's health and everyone's health. We have to from an earlier stage as now, we have to start infecting other areas. So we create little clusters of people using our product and then those little clusters can start growing on their own from mouth to mouth, marketing and people talking about it and being happy about the usage of our product. Thank you for the question. Are you constantly researching and keeping watch of the latest agri science research and developments that could threaten or alternatively be taken on by the company? Yes, we most certainly are. You want to mention that Kforce is not as popular with farmers or short season. I think that quest that one was answered. The next one, can you confirm you will not sacrifice future prospects of the company in the form of growth, research and development and a healthy cash reserve by starting a dividend too early. Can you confirm you will not sacrifice future prospects of the company in the form of growth, research and development and a healthy cash reserve by starting a dividend too early? That's a very good question mark. When you look at our presentation, one of the comments we have there is that if you expect us to pay dividends to sacrifice growth, look for another company. That's something we have in writing there. So I think that kind of like helps answering your question. What I appreciate though is that I'm just another shareholder in the company and there are other views. So one thing I'm discussing with the Board is setting up some sort of independent committee to look into all the alternatives, all the merits and how things should progress or not. I personally find it's going to be very difficult to convince the majority of our shareholders that given the big potential in terms of growth that the company should be really paying dividends. I don't think we have a single shareholder who is investing in the company right now because they want dividends. If there was a case, there are so many good companies out there that pay dividends that you should be looking for them. The other day anyway, we could hear talk about good dividend payers. So that's a little bit how I view things. There's one thing I need to say here though is sometimes we have, of course, some cash, some treasury now. And sometimes I look at that money in the bank and I look at the price of our shares and I just think, shouldn't one will you be thinking about using some of that money just to buy back some of those cheap shares, not recommending anything, just shouldn't the company consider that some of that treasury, if allowed to, if allowed, if approved by the Board, if approved by the lawyers, by the accountants and by shareholders and we're in line ups, shouldn't some of that treasury perhaps go towards buying back some shares if they're so cheap as lots of us believe they are. So this is just me thinking out loud here. There's no statement anyway in any direction, but thank you for the question. Another question, when I look at the revenue and tonnage guidance, it doesn't seem consistent with current KCL market pricing. I'm wondering why that is. Are you bearish prices? Did lower prices get locked in early? Does a different price get used? I would need to have more detail in the calculations you're making. I'm happy to look at your spreadsheet to understand. What I can say from a general guideline is that if you knock on our door and say you want to buy our project, we will tell you our product is even though it's better than conventional potash in a number of ways. You won't need to pay more. And then, of course, as with any company, if you're now a very large consumer or if there is a commercial interest or in certain situations, we might reduce our price a little bit in relation to potassium chloride. But that doesn't mean we're bearish in prices. It just means it's just a commercial nature of doing business. Your question, if I'm bearish on prices, I don't like the word bearish. I think the industry made a big mistake this year. I thought they have learned from what happened in 2,008. I thought they have learned that I wouldn't be here if they hadn't made the big mistake in 2,000 and 8 to allow prices to go as high as they did, and they made the same mistake again. There's no need to be charging farmers as much for potassium chloride as the cocktail decided to do. You don't need to be charged $600 So I think it was a mistake and hopefully this gets fixed in the short term. A good question. Thank you very much. Next question. What's the customer retention rate of Verde year over year? I don't know about memory, but in the monthly management report we share, there is there that number is made available. We will be looking into disclosing the one in connection to 2021. But I some people look at that number. I have some friends, people who invest in especially SaaS companies, software as a service companies, where what they call churn, which is the people who come carry on like people they don't lose in the process, it's a crucial metric. And it has to be because they have some enormous, enormous multiples. And the whole thesis behind those enormous multiples is because once you subscribe to Amazon Prime, you never stop paying Amazon Prime or whatever software as a service you're using at the moment. In the case of fertilizers, there's so many things that change and have no impact on how good, how bad your product is. So for example, this year in Brazil, we had a massive drought, which bankrupts some farmers, which made some farmers not keen to apply fertilizers. So the guy can be perfectly happy about our product, about everything else, but he just won't buy it. So for example, with coffee, and we had giado, temperatures came down really fast. I forgot how to say giado in English, frozen pie, whatever that is. And lots of the farmers, they lost their farms. Again, it doesn't matter, they won't buy or they aren't buying it because they're not happy or sometimes the level of potassium in their farms are high or sometimes they have some other financial issues, they aren't buying the products. So there's so many different reasons a farmer won't reward. It's not something I would worry too much, but it's something we measure. When we look again, I hope everyone will be convinced to measure what matters, but it's something we measure. We measure and we especially started measuring very carefully this year and it's something that for us is something that we learn a lot from it, that's for sure. How much of the sales were reordered? I think it's a similar answer to what I the one I just gave. Next question. With experts such as Jeremy Grantham saying we are in a massive asset bubble that will likely lead to major asset declines, are you making sure your debt levels are sustainable in unfavorable economic conditions? I understand we are. I understand that our debt level is very small in comparison to of sales, everything else. So we like to believe we're being very conservative in that regards. Depending on the adjusted EBITDA performance, the CEO, myself, is going to earn a bonus over his base salary. How much has the company accrued for this potential bonus at the end of Q1? How much has the company accrued for this potential bonus, if any, during Q2? I don't know. I'm sure there is some agreement that was made. And of course, if we were going to disclose that here, it would also make it very clear to see where we're seeing our sales going and our opportunities. So next question. Hi. Can you elaborate on whether you think the drought is temporarily masking even stronger underlying volume growth trends? That's a good question. That's a good question. Potentially, yes. Potentially, it is masking an even stronger growing growth in our trends. The videos I've been receiving on WhatsApp of the drought and fires, wildfires in Brazil, it's sad, it's sad. As sad as it was from the Giada, from the really dry temperature we had. And that, for the obvious reasons, impacts the market. Next question. Please remind me of market potential in Brazil for you and your percentage penetration if you hit your target at 350,000 tonnes, okay? So the answer to the first part of the question, if you look at our pre feasibility study, when we look at the 25,000,000 tonnes scenario, I think that represents about 40% of market share, and that's 25,000,000 tons. If we hit the 350,000 tons, you can work out the math and you can see how tiny, absolutely tiny our market share is in Brazil. Next question. Based on CDI filings through August 20 4, none of the 97,000 stock options issued in Q2 as disclosed in Note 10 were made to reporting insiders. Can you confirm that this is correct? I can confirm that this is correct because I trust the people who do the who are doing those filings. What I would expect the balance to be is that this balance would be for employees who don't need to file specific CDI disclosures. So that would be the answer. Next one, I'm a new private investor in Verdi. I'm still doing research due diligence. Who should I contact with many general questions about the basics of the industry and specifics on Verde? Excellent. Thank you for your interest. Thank you for following what we're doing. My suggestion here is to do this with myself. Let's organize a time and we can, if you allow, we can record the session. If you don't allow, it's okay. But if you allow, we can record the session and then we can make it available on YouTube for other investors like yourself who might be in an early stage of doing research due diligence and we can have that video there as a help for other people as well. So please get in touch. Thank you for your interest. Other question, how many individual non inside employees were included in the grant of 96,000 plus I don't know. I don't know. I think I've made my comment. If stuff like that is important for 1 to decide whether or not to invest in Verdi look for another company to invest, I think there are thousands of public companies out there. Next question. While Verdi gains more scale, do you still see relevant reduction in production costs, sales costs and administrative costs? That's an excellent question. Absolutely, absolutely. When you look at our production costs nowadays, we have our plant about 30 kilometers from where the mine is. So we each have trucks transporting it from the mine to the industry, and that's where or from where we sell it to farmers. So when we start selling trait from the plant mine, as we will do hopefully next year with plant 2, there is a significant cost reduction. The first plant, it's 2 100 mills. The next one, we're looking at 400 mills. As those things grow, there's a lot of the costs there that can dilute in terms of production costs. We're also trying to improve a lot of the process, so we should be having our ISO audit in the second half of this year. But just having a nice or no quality audit isn't enough. I'm also a huge fan of lean. That probably explains why you only see me wearing my basic black top. That's part of my lean mentality. So I have a wardrobe and that's all I wear, my jeans and my black tops. I keep it very simple, don't want to waste time deciding what I'm going to wear. And this lean mentality, that's something I'm a huge believer, and we are hiring a very good lean consultant. And I think there will be more gains from that one. What I'm also a big believer and there's some other good books on that one is trying to improve at least 1% every time on everything you do. The ones of you who like cycling, indoor cycling, you will read how that strategy allowed Britain to go from nothing in cycling to becoming a powerhouse in indoor cycling. And you will be very interested to learn how they've applied the same strategy with their football. And people are already giving credit to the fact they were able to get to the final of the European Championship, thanks to that project, which began a few years ago. So that's something we try to do with Verde, all sectors. Everything we're doing, we're trying to make at least 1% better than before. Thank you for your question. So the next question, how many individual employees are associated with the 3,471 stock options issued on May 10, 2021 and then forfeited before the June 30th quarter end. Next question. If 10% of the 97,000,000 stock option issued on May vested immediately, representing 97, why there's no 10 report, the number of these objects is can you talk about next question, can you talk about the change in transport cost? Is that mostly having to do with fuel used to get material from the ore to the processing yard? Yes. But also, we sell CIF. So let's say, you come and buy our product in January to get it delivered in August, And you get a fixed price in January for the product delivered in August. So when fuel price goes up, that bites our margin. What is the calculated fair value related to the 92,000 stock options at the May 10 initial grant date? I don't know. Have any further stock options been issued to employees so far in Q3? Answer, no. Next question. Do your do you have percentage of sales that are new versus returning customers? We have that disclosed for the last year and we will probably be doing that once this year is finished as well. As for one of the questions above, I did explain why this is far more relevant in a software as a service company than it is with the anyway, I think I've covered that. Next question. Can you explain why R9000 of R10,001.69 options issued on March and if you were forfeited in Q2? Was this which was single employee receiving R10,000 in March and leaving the company? In which you have only seen 10% of the options vest. I think, yes, I think that was an employee that was either let go or left. Chris, next question. Can you please clarify the stock option plan, which granted such a large bonus to so many sales staff? This had a large impact on net profit. This is likely to reoccur annually in the long term. It's very unlikely to reoccur annually in the long term. I think there was a one off type of event for the foreseeable future. That's my view. Next question. Can you explain what caused the full feature of 140,000 update 180,000 barrels in stock optimization on February, 140,000 forfeit in Q1 in Q2? I don't know. Next question. In the presentation, it was mentioned that some of the cost increase was partially due to increasing the hiring and technological expansion. Does that mean that some cost per ton of distribution will decrease over time? If so, how substantially can those costs decline on that front? Also, approximately how much of the year over year cost increase was due to higher oil prices? Filipe, do you want to try answering that question? I got you a little bit. Yes. We believe they have a higher cost per tons sold. One reason, I don't know if everyone is aware, but in Brazil, the oil price has increased around 40% year on year. And then now it seems that the trend is to be flat, but nobody knows since the Petrobras company is changing the oil price according to the worldwide crude oil price and also exchange rate. So it's not depending on us. And of course, the oil is a significant cost in our metrics, like Christian said. We do need to transport the product from the mine to the factory. This is also impact. We have also oil loaders that use oil as well to carry the trucks, etcetera. So one part of the additional cost is this one, but I do believe that it was most offset also by volume increase and fixed cost dilution. And in the other hand, we do have sales of bags, which is a mixture of other nutrients. And also this has a higher cost per ton than the product that is not sold in big bags, for example, or Cafforte, which is the green sand. And another point is that we did have a huge inflation in the big bag packing material, which used to cost around, let's say, U. S. Dollar let's say, that increase is like 50% year on year. And then this is quite relevant, since one big bag costs around, let's say, C13 dollars per unit for 1 metric tonne. Before it used to cost to us like $70 or $6 and the trend is still showing an increase on there. But the good sign of it is that we were able also to increase EBITDA price to offset this cost impact because this is for everyone in the market, cis liners, cis plastic and other impacts that have the big bag. So that's the reason for the higher cost per ton. Yes, but the distribution, as you said, we do update our sales price list every week. And once we do have an increase, for example, on freight, on everything, we can also adjust price, whatever is needed. Every month, we will have a new price list. Thank you, Felipe. Next question. After giving effect to the €800,000 non cash charge booked in Q2, what is the remaining unamortized fair value at the date of the initial grant for the 3,900,000 outstanding stock options. I don't know, but I'm pretty sure it will be disclosed whenever we were required to do so. If no further stock options are issued in Q3 and Q4, what is the total non cash amortization charge for this fair value balance that is scheduled to be charged in Q3 and Q4 based on your amortization spreadsheets? I don't know, but I'm pretty sure it will be disclosed when we're required to do so. Next question. Does the company consist of acquiring other companies or mines containing fertilizers, which might be aligned to Verdi's strategy? It's so busy. I mean, it takes so much energy and growing what we're growing. It's going so well and so much more to grow and that my worry is really focus, is really losing focus. I'm a huge fan of Steve Jobs about a book. If you dislike it, send me the bill, I will reverse you. It's, of course, his biography written by Walter Isaacson. And you see the importance of focusing. You think about Apple and how they had so many extraordinary creative and brilliant people working there and endless financial resources and how they really focus and how they really stick to doing and yes, we know they bring a project. But so I think we need to follow Steve's lesson for now, please. If none of the $750,000 or $122,000 stock options issued on March 2022 had vested by the end of Q2, as disclosed in Note 10, why did the company book the total fair value associated with this option in Q2? I believe it was done what was correct from an accounting point of view. Next question. If part of the fair value at the date of the initial grant issued on March was amortized as a non cash expense, Why was not part of this amortized in Q1? I believe it was done as it's required to be done from UK accountancy standards, IFRS and the likes of it. Next question. Given that 700,000 stock options issued on March, best in July, how much fair value the date of the initial grant with this option will be charged to Q3? I'm pretty sure when it's the right time it will get disclosed. How do you see competition from other Brazilian companies selling other chlorollary free potassium fertilizers? I it's something it's part of the business, but the market is so big. I mean, we're talking about in reais BRL40 1,000,000,000. So we have a local potash market in Brazil worth at the moment around $8,000,000,000 $8,000,000,000 I don't think none of us need to sell up to 100% of that market. I think we will be pleased with less than that. That's my view on it. But we will keep doing what we think we have to be doing. And that's another good book to read, which is the Everything Store, which goes into detail with Jeff at the story behind Amazon and Bezos. And you see this culture of being obsessive about your customers, how important it is. And that's something we try to be in Verde. It's one of our guiding principles to be obsessive, the words obsessive about our customers. The next question, although the $750,000 122 stock options issued on March, formally VAST, the Board negotiated with myself that's wrong. The Board didn't negotiate, but let me answer the question. So the Board negotiated with myself that this option, an overriding contingent condition that any or in all the shares associated with this option would remain in escrow until the stock traded above 6.45. Percent. Under IFRS rules for account for stock options, this contingent change, the amortization fell to guide the how has been the account for 7 or 8 issue in this case? It's a good question. There was no negotiation between the Board and myself. It was me who said that I don't want anything variable, which was that efficiency below 6.45%. And where did I bring that 6.45% from? That $645,000,000 share price well, before I tell the story, just explain what it is. So some of the options I was granted this year. For me to exercise them, for me to be able to sell them, our share price has to trade above 6.45%. Wasn't a negotiation with the Board. It was something I volunteered and presented. Where $645,000,000 Because that was the price, I the highest price we have ever raised money in our history. So when you look at our financings done since I started the company in 2,005, the highest share price in a financing transaction a shareholder ever paid for our stock was 6.45. So that's where I took the number. I remember very well, on the phone with a Canadian broker that was offering the bought deal at that price and negotiating all the little cents going up, all the little cents to close the transaction in a little restaurant all the way to the airport in Sao Paulo. So that's where the 645 comes from. How has Verdi accounted for the SEK 700? I don't know, I would expect they follow the correct guidelines. How many tonnes were sold and delivered in Q2 at spot Current price versus tonnes sold at price fixed before the start of Q2? What was the average fixed price per tonne for these pre sold orders in Q2? We want to disclose detailed prices on pre or post or that. Next question. In the next 12 months, what would you like to achieve as a primary goal, second goal over the same period? It's a good question, Steve. I think the next 12 months, our primary goal is delivering on what is our stated target for sales, for revenue in 2021. So that is our primary goal for the next 12 months. Of course, because we're going beyond 2021, I would need to answer your question by saying that as part of that primary goal, no doubt the additional months in 2022 would be making sure we can hit whatever we came up we come up as the guidance for 2022. Secondary goal over the same period is plant through construction, ramp up, commissioning. So that would be there in a second. Next question. Actual tonnes sold June 30th represented 33.4% of total 2020 tonnes sold. 81,000 tons out of a total of 243,000 tons for the year. If 2021 mirrors 2020, then the 112,000 tons sold to June 2020 would predict a 2021 annual total of 337,000 tons. This is part of the question. It's not me saying, this is with striking distance of your previously shared 2021 target of 350,000 tons. How confident are you today that you will hit 337,000 tonnes by year end, 350,000 tonnes, exceed 350,000 tonnes? We have our guidance and which we disclosed on the last press release and it is what that is. We will carry on working very hard for that guidance. Next question, is the company currently facing reduction in sales volume due to potassium current prices? Good question. In other words, all farmers buying K40's potassium price rise? That's a very good question. Of course, farmers everywhere in the world, whenever people decide to put the prices up, which is what happened with potash this year, they will be less willing, less keen to buy it, Especially if they already have good potassium levels in their soils, they might skip 1 year, they might apply less, might look for alternatives. So I don't know if I can answer the question here objectively. But what I can say is that, of course, it makes it harder. How we can address that is by increasing the number of people we talk to. Because our market share in Brazil is still insignificant, there is still lots and lots and lots and lots of farmers we can talk to. There's lots and lots of farmers who haven't even heard about Verde app or K40. So we're aggressively reaching out to as many of them as possible. Next question. With the 112,000 tons sold to June, that leaves 230,000 tons to be sold in Q3 and Q4 in order to hit the 350,000 tonne 2021 target. With the 50,000 tonne per month production capacity, do you see Verde having the ability to sell more than 150,000 tonnes during Q3? So the question is, do you see Verde having the ability to sell? I would say I would answer by saying there is the potential for Verde to sell more than 150,000 tons during Q3. Between the most important Brazilian crops, such as soybean, corn, coffee, forest, etcetera, which of them do you believe K40 is likely to be more accepted in substitute faster KCL? It's a good question. For those 4 crops, which together with cotton and sugarcane would represent over 80% of potash consumption in Brazil. I think the actual number is around 90%. They are all extremely benefited by replacing KCL with K40. So when you think about soybean and corn, farmers will grow one after the other. That's the 1st season, the 2nd season. And in Brazil, it's saffron. So first, they will grow soybean. Now plant starting to plant now in a couple of months. Soybean helps fixating nitrogen to soil. So then you come later on and you grow corn. With our project, you can make just one application and replace potassium chloride needed by both soybean and corn. So it goes really well with soybean and corn. Coffee, and that's the same with coffee and citrus, you do like 3 to 4 applications of potassium chloride currently. You have to do that because potassium chloride is a salt. So if you apply all the potassium at once, you can kill your coffee tray or it frames a lot, you can lose a lot of the nutrients. So people will split the number of applications. The advantage with our products is that you can make only one application. Forest, which is another big market, pulp and paper mainly, and also green coal, charcoal, lots of the steel companies in Brazil like ArcelorMittal, they have thousands of hectares of planted yield collectors, which they use on steel production. They burn as a source of carbon for steel production. It's another big market. Of course, often they will apply potash in forest over the 1st 2 to 3 years. With our project, they can apply only once. So yes, I wouldn't pick a favorite. Next question. Inventory levels at the end of June 30 were reported at $727,000 versus $567,000 in 2020. How much of this represented finished product ready to be sold? Philippe, can you answer this one? How much of this represented finished product ready to be sold at approximately $15 per ton versus raw material weighting processing at approximately $0.24 per ton? Isabelle, if you let Felipe know, I can come back to this one later on. So far, next question. Next? Yes. Christian, I'm here. You can answer my question. Please go ahead. Yes. Most of our inventory are not finished product. We can we could say that like one third of it was related to finished product, one third is like raw material and then other 30% relates to big bag, like I said, 1 ton big bag. So we do not have a very big value or amount of inventory on hand in our factory for obvious reasons such like enough room to warehouse inventory. So for this reason, we just have the capacity for a few tons, metric tons in our storage in our factory of finished products. So the impact is not related to finished products, but the other ones I said before. Thank you, Felipe. Next question. Sulfur additions to green sand, how is that working out? Is this sulfate of potash versus Muriate of potash, MOB or KCL? It's working out really well, really well. Our cost is low for sulfur. We can sell it with a pretty sizable margin. There's some synergy between potassium and applying that sulfur from elemental sulfur. The source of sulfur we use is elemental sulfur, which is a gradual release source of sulfur, which is excellent for tropical agriculture. So it's working out really well. The question is, is it sulfate of potash versus MOP? You can say it is sulfate of potash versus MOP to an extent that now our product also offers sulfur. But a lot of the marketing, a lot of the reason people sell sulfate of potash and not MOP is because sulfate of potash has a much lower concentration of chloride or chlorine than MOB, than KCL. So that's the main selling point. It's not really the sulfur. And as you know, from nature or by nature, we have 0 chloride in our product. Chloride, which is a gigantic problem because it kills soil microorganisms, who are important in a number of ways, including capturing carbon into your soils. That's the size of the problem of people applying chloride, sound chloride, strutane chloride, millions of tons, 60,000,000 tons of potassium chloride. Don't tell that girl in Norway, forgot her name, but don't tell her. Don't tell her 60,000,000 tons of chloride on his soils, Microorganisms capture carbon to soils, don't tell them. Please don't. Next question. Assuming the inventory was mostly finished product at $15 This works out to a finished goods inventory of about 47,000 tonnes. This would increase the Q3 sales capacity to approximately 100 and 96,000 tonnes assuming a 50,000 tonne per month maximum current production capacity. Based on production sales during the 56 days of Q3, you already know, or you're on track to break the 150,000 tonne level by the end of Q3? Well, I promise whenever it's the right time to disclose that information. So we will disclose if it's material or at the right time when it's required for filing. Next question. While overall revenue growth looks very exciting, a lot of this seems to have come out of pricing. Any additional comments you want to provide on the 35% underlying growth in tonnage sold, growing nearly 40% in a quarter where we had one of the worst droughts ever in Brazil. I think it's a pretty good number. I'm very proud of what our sales team and all our team delivered on that front on what was a historically lower atypical quarter. Next question. PIPOS, it's undeniable that off products or LEAPS that your products are leaps and bounds above traditional potash in a health environment perspective, and that in itself should be enough to get farmers interested in trying your product. Answering the first part of your statement here before I go to the second one, farmers can't afford to worry about that. Farmers farming is a very high risk activity. You can go bankrupt, you can lose a farm, you can lose what you love doing as a farmer. So it's very high risk. Farmers know that. So that is what comes up. That's what comes for them as the more important thing. It's not if soil microorganisms are important to resolve climate change. The latter is important for society, for consumers, for investors, and they have power. But how they exercise that power is by putting pressure in a number of ways, from looking for chloride free products, from choosing their investments, asking the questions. But the trigger of change won't come from farmers who would deliberately start saying choosing something for that reason, it's they can't afford that. The risk is too high for them. The second part of the question was, sadly, some farmers may be strictly motivated by cost. Given your geographical advantage over imported product, have you considered a strategy of undercutting your competitors' price? Of course, this may not be relevant until such time that you have excess capacity. Absolutely, absolutely. In the new version of our presentation, there's a slide we're working on where we showed the cost curve. So the delivered cost curve for the industry. So you will see how unbeatable we are. It's nothing new, but nothing like having a slide showing the breakdown of it. So it becomes more concrete to people. And that's something I'm excited about adding to this presentation because there's a lot of room for that. There's a lot of room. If at some point Verde was to begin a price war, that is something we can. But if we start our business development by starting a price war, by failing to make it very clear for the market and everyone else how from a value proposition, our product should actually be sold more extensively than KCL, it won't be as effective. If anyone has a different view, please reach out and share. I would like to hear different opinions, how much our value, the quality of our shareholders. I know if not all of you, absolutely most of you come from a very successful background in different industries, and I really appreciate all the feedback I get. And that has been no doubt one of the key reasons we've been able to get you to where we are by getting all of those feedbacks. So please reach out if you disagree. And there's another good book here called Red Teaming. Red Teaming, that's something, another good book. I might need to sell some shares if people start disliking my book recommendations, but red teaming is another good one. Teaming, t e a m I n g maybe. Next question. The time and expense spent on logistics management transporting the product to pharma's doorstep, selling on CIF basis. Does this provide any competitive advantage versus selling it FOB basis? Yes, it does. It does. It does. You can see from the growth in our CIF sales how farmers much rather would take care of delivery than them having to go and do it themselves. Yes, you're right. It's time consuming. It's expensive. It's a pain. We make no additional money by doing that, but it's something we feel that we need to do. It is indeed a competitive advantage for us in terms of offering this additional service. The time of the year when farmers get delivery of fertilizers, it's their busiest time of the year. So the less procedures, the less process, the less tasks they have to manage, the easier it is for them running their business, which is dependent on the weather. So next comment, no share buyback, all right? Would appreciate, would love to hear your view. If you could read, send me an e mail. I would appreciate understanding the argument. Next question. What are your thoughts on offering your product at a small discount, say, pegged at 5% below the potash price with slightly lower margins replaced by increased pharma uptake and faster and higher growth profits. We have let me answer this question. We have our sales team that has flexibility on applying discounts depending on volume, location, number of criteria. So we do benefit or we do try to benefit from our cost advantage to increase negotiations. Just don't go out there telling our customers that, Mark, otherwise, you're going to make our life much harder. But we try to play fair and try to make it as best to our customers as we possibly can. Next question. BHP is proceeding with the Janssen Saskatchewan project. Of course, many years will pass before this potash will hit in the market. Will increased global output be an impact to Verde? No, no. It might be an impact to our children and grandchildren, but not to Verde. It's the equivalent of Chevron or BP or Exxon going and saying, now they're going to start this gigantic oil extraction project in Alaska. But hey, there we go. Can we get an update on when to expect the revised preliminary feasibility study? Well, it's still targets to the end of the year. Let's hope we can accomplish that. And for any of you who might not be following in close detail, we could tell it's our pre feasibility study back a few years ago. A lot has changed. And I read the next credit, that's why I'm smiling here. But the so a lot has changed and we'll see. And we'll see so a lot has changed from when we put the aspirate pre feasibility study. And we will have this new one, where we're going to be exploring different market shares. We're going to be exploring, of course, we have bags now as a product. There's sulfur. There's micronutrients we're adding. Or there's us getting a little bit more excited about perhaps greater market shares, perhaps about a big greater market share. So we're doing this new study. It should be released for the end of the year, hopefully a big nice Christmas gift to everyone. Talking about Christmas gift, do you know you can go on Amazon and order greensand both in Canada and in the U. S? What I will do is to ask our team to do a 5% discount voucher code. So if you go on amazon.com or CA, talk to your friends, you can give them this little 5% voucher, and they can experience the product themselves, their own backyards, their own lawns. So, Isabella, if you ask Henrique, he can create a coupon for 5%, and we can share it on at the end of this video on YouTube. Next question. Does Filipe also wear the same clothes as Mr. Veloza or today is just a coincidence? So I'll allow Filipe to answer. Has Filipe also been taken? That's just a coincidence. That's just a coincidence. So question answered. Next question. BHP that's the same question. Next question, does the company consider well, I think there's some I think those are just same questions replicating here. So acquiring other companies, Oh, that's a good one. Have you and the CFO set in it's a very good question. Have you and the CFO set in on any of the Nutrien quarterly analyst Q and A sessions to gain a better appreciation of best practice for these events. The reason I'm saying that's a very good question is because if any of you watching the video, if any of you here live look at Verde, this microcap company growing and trying to achieve with the resources we have and everything else and the challenge and where we are and everything what's going on and all of its claims. If any of you is looking at us and thinking that a midstream quarterly analyst Q and A session is of any relevance, absolutely any relevance to a different world we live, I think we should review a lot. I think we should review probably should be buying shares or investing or looking large caps, blue chip companies, because it's a different game. I know many of you fully appreciate that, because many of you invest in micro cap, small cap, you understand how to work. So that's a very good question. Thank you. With a superior product to potassium chloride, have you seen the traditional potash players trying to enter the market, especially against the backdrop of increasing popularity of ESG aspects, which also favor your product. Have there been any past attempts? That's a very good question, very good question. Short answer is they are aware and they are worried. They are aware and they are worried. There's a big mining company that recently announced they're building a big potash mine. There were some discussions, as I mentioned, about potential environmental impact and everything else. And I was sent an article, a paid article, a featured article on the environmentalist, some sort of blog, environmental blog or something like that, paid by this company, where they were explaining why from an ESG, why from an environment point of view, what they were doing was so important? Of course, the thesis was, yes, the world is growing. We need to produce more food and food require fertilizer. There was a whole article there. So I think that answers your question. That answers your question. They are all worried and aware and trying to defend what they're doing. The other very large company, which acquired a player, a big mining company acquired a player in Britain that was producing, wants to produce potash as well in the UK. I remember talking to an investor, a very good guy from Manchester. And he was telling me because he was an investor in this company when it was before it was acquired. And he was telling me how he sat over several presentations from this company and how they would always claim that their product had a lower salinity index than conventional potash and why that from an environmental aspect was so important. I guess from an environmental aspect, we can understand why salinity is bad. We have droughts, you have assaults, you have what the Romans used to do with the people they conquered for adding salt to the land and microorganisms. So obviously, you don't want much salinity. And that was the argument they used. When I first met this gentleman, I told him, you're right, salinity index of this project is higher than the potassium chloride salinity, but they're talking about a total salinity index. What you need to look at is a salinity index per unit of K2O. A salinity index per unit of K2O, you will work out your total salinity index. It will divide by how much K2O, how much potassium you have in your product. And then you have your salinity index per unit of K2O. And I told this gentleman, when you do that, when you do that, you will see how this is by far the craziest and worst product from a salinity index you can possibly ever come across. So he did. He showed that to the company, asked them and the company got very embarrassed. And as this gentleman told me, that was when he sold the shares he had in this company, which he was lucky because after that, that company, the share price crashed and was taken over like at a price where people lost a lot of money, unfortunately. And but that shows how now we have a second gigantic mining company. We have investors who are very aware and concerned about ESG, which is also looking to be investing 100 of 1,000,000 of dollars, 1,000,000,000 of dollars in the coming years in and with developing a product, which from a salinity point of view is absolutely crazy. I hope that little girl from Norway never gets across, never be told about what is going on. So that is my answer to that. Next question. Can you get into the potash business? We've heard about a small companies that trades on LSC. I won't be commenting here. I won't be commenting sorry, yes, sorry, sorry, sorry, sorry. Can you get into the phosphate business, not potash? We heard about a company that I'm not going to be commenting about a tiny company trading on the other stock exchange. If you want to get in touch, I'm happy to talk to you over the phone. And if we want to get into phosphate, not potash, I think we're just too busy with potash right now to worry about phosphate. That would be my answer. But by all means, reach out. We can talk. We can share you my views with the company just you've just mentioned. I believe that accounts for a total of 72 questions answered here today. I'm very pleased to report that throughout the last two hours of our call here, we've only lost 20% of people who began with us today. I am very thankful for you taking your time to be here live attending this call. As I said, I really appreciate all the feedback. I really appreciate you reaching out. I really appreciate how smart and successful and how much you can contribute to our growth. So please do not hesitate to contact us. I also appreciate you hitting that like button if you're watching it on YouTube. I really appreciate you sharing it, sharing any comments. Subscribe to our channel. Click the little bell so you are made aware of whenever we go live. I'm extraordinarily excited about 2021 and have no words to say how excited I am about 2022 and beyond. We have a phenomenal team that just gets stronger with every new hire we make. We've been doing an awesome job, and I'm pretty sure that for 2020, we're just going to be doing an even better job, and it's still day 1 at Verdi. Thank you very much. Stay safe, and I look forward to talking to you again very soon. Bye bye.