Thank you for standing by, and welcome to the Base Resources FY 2021 Full Year Results Conference Call and Webcast. All participants are in a listen-only mode. There will be a presentation followed by a question and answer session. If you wish to ask a question via the phone, you will need to press the star key followed by the number one on your telephone keypad. For those webcast viewers who wish to submit a question, please type your question by clicking on the Ask Your Question located on the top right corner of the webcast page and click Submit. I would now like to hand the conference over to Mr. Tim Carstens, Managing Director. Please go ahead. Thank you. Thanks everyone. Thanks for joining the Base Resources FY 2021 full year results call. As usual, I'm joined by Kevin Balloch, our Chief Financial Officer, Stephen Hay, our General Manager of Marketing, and James Fuller, our Manager of Communications and Investor Relations. We'll be sharing the duties today as we work through the results. Just for those who are new to the story, just a quick snapshot of us. We're obviously headquartered in Perth, listed in Australia, listed in London. The company's been very much built around the Kwale operation. That was our maiden asset, operationalized in 2013, or built and operationalized. It's been a very successful development. On the back of that and the business model we've built and the team and the expertise and the capital base, we made the step to look to replicate that success with the acquisition of the Toliara project in Madagascar, in early 2018. Have been progressing that project through the study phases, and engaging pretty heavily over the last year or two in trying to land fiscal terms with the government, and get that commitment to move the project forward. We'll talk more about that, a little later on in the presentation. Just to sort of position the story overall. We think we're building a pretty unique mineral sands company. By mineral sand standards, we're a mid-cap, pure play mineral sands company. We've got that very profitable, established, predictable, consistent Kwale operation in Kenya, that we feel we can extend. We're sitting on a world-class development asset in Toliara. Everything we do on this project just makes us like it more. It's without question in our mind the best undeveloped asset out there in the sector. Its sole challenge really is the jurisdiction and the challenges of navigating that. We're making our way. Once Toliara is developed, we'll have a very long life spine for the company around which we can continue to grow the business. We're looking at an asset there that's 50- 100 year mine life ultimately based on the size of the resource. We've got a really good track record in the way we go about our business. We delivered Kwale on schedule, on budget. It's done what we said it would do. Our business model has demonstrated that we are able to deliver outstanding results in safety, community engagement, environmental management. We've got a really well-rounded business model that's demonstrated to be successful in an African context. The team that made that all happen around the Kwale project is all still with us. As we've built the team out, we haven't had anyone in the management team leave. We're heading into developing the company into more operations, with a team that's done it all before together as a team, which is, it's a pretty unusual situation for a company of our size. We've got a really robust financial position, from which to both grow the business and also deliver the sort of returns we've been delivering to shareholders over the last 18 months following our maiden dividend, at the end of FY 2020. All of that combined brings together a company of strategic relevance in a sector that's likely to continue to evolve. There's a real structural short supply theme emerging or has emerged, which is driving some pretty interesting, interest if you like, from customers. It's got investors starting to think about the fact that there has to be new supply in this sector and what does that look like, and how could all that come together in terms of consolidation, asset development, lot going on. With that as the backdrop, let's just dive into the result for the year in a summary sense. Obviously, being a full year affected by COVID, our first full year of that and everyone's. The Kwale operations have been able to continue completely uninterrupted. We've put quite a lot of controls in place to mitigate both the impact and the risks of COVID. We haven't been unaffected in that we've had some 90 cases on site out of 1,000 odd people in Kenya. Tragically, one of our people in Madagascar contracted COVID and died during the course of the year. In Kenya, everyone's been able to be sort of managed back to health, and we haven't seen it run rampant through the workforce. We have been able to achieve our production guidance, and are completely comfortable we can continue to navigate through this, certainly based on what we see in the landscape at the moment. You never quite know what twists and turns are coming with this pandemic, but we're feeling pretty comfortable at the moment, hence why we've been able to put out guidance for FY 2022, with obviously the usual caveats. We saw continuing strengthening of demand across all our products, which drove pricing increases particularly for ilmenite, we had 21% up in realized prices year-o n- year, and Steve will talk more about that in a minute. We've made some good headway with the mine life extension opportunities at Kwale. Bit disappointed with the North Dune pre-feasibility study result that we delivered in April. What it did show was a subset that we're calling Bumamani, that we think will add some time to the Kwale projects. It's less than a year, in the context of where we're at, that's meaningful. We're looking to get that Pre-Feasibility Study released in the very near future. Project discussions or, I should say, fiscal terms discussions with the government in Madagascar have made some really good progress, albeit not the definitive position we'd love to be able to announce to the market. We are making headway. We're really waiting now for a government decision that they're ready to move forward with the project. The threads are all pointing in the same direction, and we're hearing a drumbeat that the government's very keen for the project to move ahead. It's just a question of now navigating the political considerations and waiting on a presidential decision, which we're certainly hoping is sooner rather than later. We have continued with a lot of work around the project over the course of the year. That work's really coming to an end now. Our focus from here is going to be very much just on landing those fiscal terms and maintaining our engagement with government. Notwithstanding the dislocation of changes to operating protocols that COVID has necessitated, we've been able to maintain our lost time injury frequency rate at zero. We haven't had a lost time injury since February 2014. Being able to maintain that in a pretty distracting year, if you like, for a workforce, is really pleasing. It was a great year from a sales point of view, not quite a record due to the slightly lower production, but a really robust pricing environment, still really strong EBITDA. We closed the year with net cash of $65 million. That enabled us to declare another substantial dividend at $0.04 per share, which is paying out about another $34 million, taking the total dividends in respect of FY 2021 to $0.07 per share. In the context of a $0.28, $0.29 share price before we made the announcement, it's a pretty substantial yield. One of the other aspects of our business that we focus on extremely heavily, and those of you who have been following us for a while will be well aware of it, is our pursuit of excellence in the full life cycle of mining. Covering the things now that are becoming more talked about as Environmental, Social, and Governance have been embedded in our D&A from the very beginning of Base's operations. We are looking to take it to another level. We've pursued a number of initiatives over the course of the year. At a governance level, we've established an ESG board committee. We've published our modern slavery statement. We've implemented a supplier code of conduct that really brings our performance standards home to our suppliers. We've been very successful in continuing to develop our workforce in Kenya. We've 99% of the workforce now being Kenyan and 71% from Kwale County, that's an objective or a performance, I should say, that we'll be looking to replicate at Toliara. Continued our heavy focus on training. One of the really exciting programs that we established for Toliara was bringing 24 Malagasy young people over to Kenya to complete two-year apprenticeship programs. These are people who've never left Toliara region, basically, who have come over to Kenya, lived there for two years, have now finished as fully fledged apprentices in a range of areas. It's been a fantastic program, not just for them, but also as an enriching exercise for our people in Kenya, who have just loved the opportunity to give back to another African country and contribute to the future of Toliara. We continued to invest pretty heavily in our community programs. It was about $3.7 million this year. We also contributed another $1.4 million in direct COVID support programs around the procurement of health equipment, in particular ventilators, providing a lot of food support, and a lot of sanitation stations. A very large number of sanitation stations as a preventative measure down in Kwale County, which has been particularly well received. We launched a really big project this year, the Kwale Post Mining Land Use Study. Obviously, while we hope to not have to implement this project for quite some time, by virtue of mine life extension, we are doing a lot of work looking at how we can leave a legacy in Kwale County that's going to really move the dial economically for the local area. One of the catchphrases for Base has always been that if we simply leave a memory of how good it used to be, we've failed. The Post Mining Land Use project is really looking to make good on that philosophy. So with that, I'll hand over to Kevin Balloch to take us for a bit of a walk through the operations side of the business over the year. Thanks, Tim. Once again, we were operating on the South Dune. This is our second full year in the South Dune, and it coincides with the lowest grade ore that we're expecting to encounter whilst working our way through the full South Dune. 3.46% with a heavy mineral grade. That had a consequential result of slightly lower production than the prior year. You can see the midpoint guidance for next year is increasing marginally over what we got this year. Next year, we're looking at 429,000 tonnes against this year's production of 418. The mine volume was pretty much identical to last year. It's just really a picture of grades being lower that influenced lower concentrate production. Stocks are pretty much where they were year on year as well. With limited concentrate, the feed into the mineral separation plant was simply what we could produce during the year. As a consequence, of course, all finished products were slightly lower. The variable differences between what we produced this year and last year, other than for feed grade, were related to the assemblage of the ore we encountered, as we often see. In lower grade areas, rutile is slightly elevated, and ilmenite is slightly lower. Zircon tends to be not consistent with the ore grade and moves around a little bit during the period. We continue to advance exploration activities near mine site. We released the results of the North Dune Pre-Feasibility Study, as Tim mentioned earlier, during the year. That led to the progression into a higher grade study that's due for release shortly on the Bumamani and some of the high-grade areas in North Dune. We're also able to recently update the South Dune to incorporate the additional resources that currently fall outside the mining lease, as we have a mining lease extension currently underway, and we've been encouraged by comments from the Mining Minister that that is nearing the end, and we expect to be able to announce that shortly. That will take the mining at the South Dune to December 2023. We hope that the Bumamani piece that's coming out shortly, that will extend it a little further. Looking a bit further afield, we have a couple of areas that we are quite interested in. The first being the Kuranze area to the west of Kwale. It's between 50 km and 80 km from Kwale mine site. There's a number of tenements that we've applied for in Kenya, which are still working through the process. Unfortunately, there's been a moratorium on the issuance of new licenses in place since 2019. Sorry, November 2019. The government imposed a moratorium while they seek to clean up some issues they discovered in the licensing process for some licenses. Not ours, but in other areas. That's still closed just now, and we are working with the government to see if we can bring that to an end and get our licenses lifted. In the interim, we've been able to apply for licenses in Tanzania four of which we more or less abut the licenses in Kenya. We've had three of those granted just recently, and the last license we applied for, we expect to finish the process shortly. Quite excited by that whole area, we are starting to make some plans for exploration, starting to recruit and train people in safety systems in order to start that process on the ground. We'll have more to say about that in future quarterlies. Further to the north in Kenya, there's a bunch of licenses we've applied for up in the Lamu Region. They hold quite a bit of prospectivity for ilmenite, but we are on hold there, even subject to the licenses being granted. There's still quite a bit of Al-Shabaab activity up there, and it's a little bit too hot to send people into, our staff into. We will watch that with interest and hopefully in the future, we can get in there. Once again, our operations continued to maintain their exceptional safety record, and it's a real window into the performance culture that we've been able to establish at Kwale. It's now been 24.9 million man-hours without a lost time injury and a number of years with the last lost time injury occurring in 2014. It's an exceptional record by anyone's standard and something we continue to guard closely and transfer into our other operations in Kenya. With that, I'll pass to Stephen Hay, who will run through market update. Yeah. Thanks, Kev. It was a very solid year for sales and revenue for all of Base products. Rutile and zircon had a subdued first half of FY 2021 that really did come back strongly in the second half. Ilmenite continued its strong momentum through all of FY 2021. Just firstly turning to rutile in a bit more detail. The Western pigment producers are the major consumers of rutile and high-grade feedstocks. What we saw is in the middle of FY 2021, those pigment producers were rapidly ramping up their production as demand for pigment really bounced back strongly on the back of a broader economic recovery. At the same time, we had a strong demand recovery from the welding and titanium metal sectors, which were also big consumers of rutile. With this strong recovery in demand for rutile, we saw high-grade feedstocks that were in a bit of surplus in the first half of FY 2021 quickly moving into a deficit position. That deficit really has continued to increase through the back end of FY 2021. On the back of that, we've had some price gains at the end of FY 2021, and certainly into the start of FY 2022. Sort of exacerbating all of that are supply constraints in high-grade feedstocks. We've had one of the major rutile producers with some production issues for some time now, so they've been producing lower than had been expected. We've seen the Richards Bay Minerals shut down in South Africa from the end of June to the end of August, and that's taken a big chunk of rutile and also chloride slag out of the market. There's uncertainty over Iluka's Sierra Rutile Limited operation going beyond the start of 2022. All of those things have really combined to create a bit of concern and uncertainty of the supply situation going forward and is resulting in the tight market conditions. The expectation is that we'll see these tight conditions continue through all of FY 2022, and we'll see this pricing momentum continue. Turning over to ilmenite. As I mentioned, FY 2020 ongoing momentum, which has really been building since FY 2019. That's on the back of Chinese pigment production. The Chinese pigment producers are the main consumers of ilmenite. They've all maintained very high production rates for some time. The ilmenite demand has been very strong and that's continuing. As a result of that, we've seen market prices continuing to trend upwards. Market prices have now reached very high levels. What that is doing is it's starting to incentivize a fair bit of swing supply into the market. The swing supply typically comes from informal sources that are generally high cost and quite often are low quality. As that supply is coming into the market, it's definitely closing the deficit. The deficit's still there, and we are seeing further price gains at the start of FY 2022, but as we progress through this year, we do expect that the increased supply will start to bring the market more into balance and that pricing momentum may start to ease. On zircon. Zircon had been subdued from FY 2019 and certainly through the first half of FY 2021. As the European economies came out of lockdown and as we saw Chinese demand for zircon really come back strongly in the middle of FY 2021, we saw zircon inventories that had been sitting in the supply chain, they were absorbed very quickly. Again, the market turned into deficit and that deficit position really has been increasing at the back end of FY 2021 and growing even further into FY 2022. We did see strong price gains on zircon at the end of FY 2021 and the start of FY 2022, and the expectation is that the pricing momentum will continue to build and accelerate as we progress through FY 2022. I'll hand back to Kevin to talk through some of the financials. Thanks, Steve. Another good year for Base. Revenue did remarkably well to stay up pretty close to its prior year, despite the lower production. That was helped by the 5% increase in the average realized price of products sold. Operating costs, not much different, a little bit lower, just on the back of slightly lower production. A few rats and mice in there to end up with an EBITDA of $ 94 million compared to $1 08 million last year. Moving to net profit after tax. Of course, depreciation is fairly heavy at Kwale given the short life of mine, which is something that we expect to be able to reduce the depreciation charge that is reduced over the next few years as we extend the ore body of the South Dune to incorporate those additional southerly extensions. That'll give us an extra year or so in mine life and spread depreciation over a longer life. Whatever we add on through Bumamani could be expected to also increase mine life, reducing depreciation. We had some higher taxes this year, largely that's because of two things. Firstly, the tax rate in Kenya in FY 2020 had been a concessional rate that was introduced as a economic stimulus measure to counter COVID, and that reversed during this year, or halfway through the year, from 1 January 2021. We had a slightly higher tax rate in Kenya. That also flows through to deferred tax assets, which impact P&L as well, which is the main difference we are seeing in the P&L. The other big feature, of course, was the way we repatriate cash up from Base Titanium at Kwale comes back up through dividend and a dividend withholding tax in Kenya of 15% is applicable to that. We moved $60 million up from Base Titanium, and that was primarily to fund corporate and Toliara activities, as well as the dividends that we've been paying throughout the year. We ended up in pay of $11 million against the $39 million from last year. Because of the continued increase in unit revenue, we've been able to maintain and build on our operating margin. The average cost per ton sold, which is inclusive of royalties, was $191 against a $467 revenue per ton sold, leading to an operating margin increasing by about 3% to $276 per ton. That's been able to maintain our revenue to cost ratio at 2.5, which is still firmly up there with the best producers in the world. On a cash flow basis, moving from our opening cash position, which did include debt drawn down at the start of the COVID pandemic, we drew down $75 million to hold in reserve for any unknown sort of consequences that we were just being quite prudent and managing our cash position as many people did. That was repaid during the year. We repaid $75 million of that. Essentially, the balance of the cash was sitting there ready to go back. Also another big feature during the year was the dividends of $56 million paid out relating to last year's full year dividend and the interim that we paid out in March. Other movements during the year worth noting, we had a buildup of trade receivables due to a large number of sales occurring in the last month of the financial year. Additionally, we've invested a further $12 million in progression of Toliara and $11.5 million for Kwale operations. The chunk of that to get to the co-disposal plant to assist in disposing a mix of sand tails and slime tails to create a water retention there in the rehabilitation process. For those who like to understand how EBITDA relates to operating cash flows, simply take your EBITDA, adjust for your working capital, in this case, mainly trade receivables, take off your tax paid as opposed to your tax expense, and you end up at a $64.5 million cash flow from operating activities against a $94 million EBITDA. The debt repayments have a fairly significant impact on the balance sheet in reducing cash, but also leaving us debt-free. We have now essentially moved to a net debt-free position, leaving us with a very robust balance sheet from which to continue to pay dividends and advance the projects that we have before us. As mentioned earlier, the increase in the mine life should see depreciation in the future going down as we move forward. Despite the good progress made on advancing the Toliara Project during the year, we still were unable to unlock the fiscal terms with the government, and that, through strict application of our capital management policy, which we put out there last year, means that we will pay a dividend of $0.04 at full year. Our policy is essentially that we will try to provide returns to our shareholders through both capital growth or through appropriate cash distributions. By appropriate, we simply guide that where we do not have an immediate near-term requirement to fund growth and development activities or balance sheet strength, then we could expect to return that money to shareholders. In this case, where we haven't got a firm progression timeline for Toliara, we'll continue to return cash to shareholders as we have done in the past. Taking our total dividends in respect of FY 2021 to $ 0.07, and as Tim says, close to a 25% yield during the year. I'll hand back to Tim to run through and update the Toliara. Thanks, Kev. As I said at the outset, very heavy focus on two things over the last 12 months in particular. One has been engaging with governments on the project, helping the government understand what the project means for Madagascar, engaging with them on fiscal terms that are appropriate and sufficiently attractive for us. We've had a government that's been receiving advice from the World Bank and from the International Monetary Fund and others. On the basis of all of that, we think that there's absolutely no reason why there isn't an answer here that works for all parties. We've certainly put forward a proposal that works for us, is consistent with the advice the government's received, and indeed is consistent with what's now appearing in the draft revisions to the mining code. As I said at the beginning, it's now really a political calculation largely as to when the president decides that it's time to step forward, and we're certainly doing our level best to elicit that decision. The other thing we've been very heavily focused on has been bringing our community along with us. There were some degree of community opposition or quite loud expressed opposition, from what we knew to be quite a minority, 12, 18 months ago, two years ago. What we've been focusing on doing is converting what had been a silent, supportive majority into a much more vocal, supporting majority. We've seen that very heavily come to bear on government in the last six months, in particular. Indeed, over the last month, there's been a delegation of community leaders up in Antananarivo engaging with the government. They're really demanding that this project be allowed to move forward, in order to provide the sort of opportunity to the Toliara region that's going to enable it to deal with what is at the moment a pretty depressed, an unbelievably depressed economic environment that's exacerbated by an extreme famine. We've lined those threads up. We've got the government threads lined up. It's really coming down to a question of when they're met ready to move forward. There's some other work that's been going on in the background while we've been doing that. Quite a lot in the early days of the year, we were completing some feed work, we were completing some contract negotiations for the long lead time items. A range of other project initiatives, workforce development had been going on 18 months ago. Two big bodies of work that are now nearing a conclusion are the upgrade of the mineral resource and reserve estimate. That incorporates a lot of the drilling that we did back in 2018 and 2019. That's now getting close to being ready for release. Tied to that is what we're calling DFS2, which is an upgrade of the definitive feasibility study that reflects the expanded resource and reserve, but also bakes in what an expansion of the project in year four would look like. Looking ahead a little bit to 2022, what are we prioritizing? Clearly, one of the biggest or if not the biggest controlled lever in a way for value is extending the mine life. Step one is locking down that mining tenure. We have agreed the documentation with the Ministry of Mining and the Office of the Attorney General. We now just need to execute that, hoping that's going to pop forward in the near term. That gives us ore or mining out to the end of 2023. The Bumamani pre-feasibility study is the next piece of the jigsaw puzzle to drop. We want to get exploring and drilling over the course of FY 2022, particularly in the Tanzanian extensions of the Kuranze area because we now have tenure. The tenure is very much beholden to when we're out to get that broad cadastre moratorium lifted. We're working with the government to seek a few different avenues to get that lifted so that we can crack on in that area. Quite clearly, securing fiscal terms with the government in Toliara, in Madagascar, I should say, is absolutely front and center given the massive value lever this project does represent. In the short term, getting the updated feasibility study and mineral resource and reserve estimates out. It'd be great for us to be able to talk about the economics again of Toliara, given that the prior DFS had become stale after its release in December 2019. Looking to be able to socialize that again with people, get it back in front of a market so people understand the real size of what we have here. We're also actively looking at wider mineral sands opportunities in the sector, and keeping well alive to the way we're seeing things evolve, and making sure that we maximize our opportunity in that space. We obviously recognize that it's all fine and well focusing on those longer-term value creation opportunities, but we cannot take our eye off the ball in the engine room of Kwale operations. We've got our guidance out there. We're on track based on the year we've had thus far, and certainly looking forward to delivering on that with the good consistency that everybody has come to expect from us. With that, we might now turn over to questions. Thank you. If you wish to ask a question, please press star one on your telephone and wait for your name to be announced. For those webcast viewers who wish to submit a question, please type your questions by clicking on Ask a Question, located on the top right corner of the webcast page, and click Submit. Your first question on the phone comes from Richard Hatch with Berenberg. Hi. Thank you so much for taking questions and thank you very much for doing the call. I have a few questions for you with regards to your results. Firstly, could you please clarify the reason for the inclusion of the Government of Kenya royalty payment in provisions, and can you remind us how much will be paid to the Government on the Special Mining Lease extension for South Dune? Secondly, with regards to your working capital, it's quite sizable in H2 due to receivables. Could you give an indication if you expect any of it to flow back into 2022? Finally, could you please clarify if the $9 million in withholding tax has been paid in 2021 or will there be a flow back into 2022? I think that's for you, Kev. I think your first question on SML royalty and Value Added Tax, if I understood correctly. We have a current accrual for royalties based on a 5% versus a 2.5% paid like of mine to date, which would be settled together with the VAT receivable. Our net position expected to be settled with the SML extension. That would essentially mean a payment of those two of the net position, and we would expect by the time that we get to the payment point, that we would have an outgoing of about $20 million to the government of Kenya. Regarding the working capital- Just on timing of that. Based on the engagement to date with the government, we're expecting that we'll be executing the SML variation pretty soon. The payment of that balance is set for three months after that signing. In regard to working capital, yes, we had a buildup of receivables at year-end, and we could expect that this would reverse. We're probably sitting about $17 million higher in receivables at year-end than our average balance would've been through the entire FY 2021 on average. We'll see that obviously reverse during this year. Subject, of course, to revenue price increases bringing more money into receivables as we go through the year. Typically, there's always a rush to get sales done at the end of the year, and that generally does lead to a slight receivables build-up. On your last point, which was the $9 million of dividend withholding tax expense, only some of that has been paid during the year. We paid, I'm just referring back to the slide. We paid $4.5 million, and we'll pay another $4.5 million in July. On the money we swept, money we repatriated money from Kwale in June. You pay your dividend withholding tax in the following month. $4.5 million payable in July from that $9 million. Hope that answers your questions. Once again if you wish to ask question on the phone, press star one on your telephone as the earnings will end. We are showing no further questions on the phone. We will move to webcast questions. Please go ahead. Okay. We've got a series of questions here. The first one relates to the mine life that Bumamani will add. The suggestion in the question, it'll only add about four months. That's true of just the Bumamani deposit itself, but the PFS is, we call it the Bumamani PFS, but it's bigger than just that deposit. It incorporates the high-grade zones of the North Dune, so it will be longer than four months. I can tell you it'll be less than one year, but it'll definitely be more than four months. Beyond sort of mid-2024 and the way we're thinking about it, we would be dependent on discovery, either in the Magaoni area adjacent to the North Dune or the operating plant, or in the Kuranze area for that additional feed. The question here was around what sort of grades and volumes are needed and all that sort of stuff. Far too early for that. The question was, to justify moving a plant. We wouldn't be moving a plant under any circumstance. That's not a particularly sensible thing to do in mineral sands, as lots of people have discovered, and now certainly isn't designed to be mobile. The sort of concept we would be thinking about with the Kuranze development would be probably a concentrator or a pre-concentrator and then trucking of that concentrate to the current Kwale mineral separation plant, and then on from there. Next question relates to exploration licenses. The question being that our exploration licenses don't appear to be contiguous. That's because what we show on that map are only the exploration applications that have been assigned application numbers. When the cadastre was closed, we had a number of applications that are kind of informally, not informally, but they're in the system in paper form. We do actually have a sort of a documentation that is contiguous. I guess that answers that question. We certainly wouldn't move the operation into Tanzania. We'd look to maintain the operation in Kenya. The material we found in Tanzania, how we deal with that will be entirely dependent on quantum. One of the possibilities is that we would, again, use the same sort of approach as we're talking about with Kuranze, but that would require negotiating some sort of cross-border arrangement to bring it up into the Kwale operation. Obviously, if we were having this conversation a year ago, that would've looked like a very remote possibility with the government and with the president in power in Tanzania. Things are changing rather quickly. The level of cooperation between Tanzania and Kenya is changing quite quickly as well. Who knows what that looks like in due course. Next question I might hand over to Kevin. The question is why the big jump in selling and distribution cost in H2 versus H1. Part of this is in relation to treatment of selling and distribution cost and Kenyan withholding tax changes. That has been a position move, and we have a higher withholding tax related to selling distributions, and there's a bit of backdating of that as well. That pretty much accounts for most of it, other than we did sell more revenue, more ilmenite, which attracts the majority of the selling and distribution cost in second half than we did the first half. Typically, if you look back over the years, revenue tends to be weighted towards the second half. You could always expect to see higher selling and distribution costs in the second half than you will in the first half. And that's just linked to revenue. Next question is in terms of CapEx guidance for Kwale. There's a bit of CapEx over the course of this year. Sustaining CapEx is probably not materially different. We're expecting somewhere around $4 million. We also have to spend around $5 million over the coming months on land acquisition to access the full area of the South Dune. That land acquisition program is being completed as we speak. We're also planning or budgeting for $1.8 million in exploration activity, predominantly around the Kuranze and Tanzanian area. Obviously, whether we spend that or not is, or how much of that we spend is going to be a function of how soon we can get the tenure in Kenya to enable us to get on and do that. They're sort of the big pieces. There's also about $5 million for general rehabilitation works that'll be spent as well. Little higher than we've seen in the past. Next question is in relation to cost inflation, and its impact on the Toliara DFS. Look, we'll need to wait for the DFS to come out. I don't want to sort of steer too much on that, but it'd be fair to say that the pressure has been up. Possibly not as much as you might think. Yeah, it's definitely, there's been an upward drift, but not something that we're particularly concerned about. Next question relates to the equity portion of Toliara funding. Us looking to some downstream customers for investment by way of sort of JV-style engagement. That is certainly still the plan at this stage. We're progressing some conversations, probably more than conversations, some pretty detailed discussions around that, looking at how that could come together in the most efficient manner. It would be fair to say that the counterparties are becoming more intense in their engagement in this, really reflecting the increasing recognition of what the outlook looks like for major pigment producers who need to put their foot on supply into the future. And indeed need to find ways to motivate new supply into the market. That's definitely still plan A. That wraps up the questions that we had online. With that, I would say thank you very much for joining the call. If you do have any further questions, please get in touch with the team. We'd be very happy to chat to you. Everyone, look forward to eventually seeing everybody again soon. That does conclude our conference for today. Thank you for participating. You may now disconnect.