Good morning, and welcome to Calix's Inaugural Investor Day, dated the 2nd of September 2021. From the company today, we have Phil Hodgson, who will be joined by a number of staff from Calix as well as a number of special guests in the different lines of business. The agenda has been released to the ASX. It will be kept strictly to the agenda in terms of questions concluding right on the finish time of each session. If you did want to ask a question, we will do so per vertical or per line of business, so please submit those via the Q&A button at the bottom of the screen. Without any further ado, I'll hand it over to Phil to get started. Thanks very much. Excellent. Thanks, Simon, t hanks everyone for joining this morning. This is our first attempt at a bit of a investor day, if you like. We've got just over two hours here, which if you're going to stay for the whole thing, very much appreciate the time that you're putting into understanding our company a little better. Some of you obviously may know us fairly well, and others, this could be your first time you've been introduced to Calix. Sit back. Hopefully, this goes smoothly. We're obviously dealing with technology and COVID and all those sorts of things. We're pretty confident that you'll enjoy the presentation. Here's our tagline, "Mars is for quitters." We've got our General Manager for marketing communications, who will go into this in a little more detail as to what is our purpose for the company to some extent as well. A little bit of humor in there, of course, but a serious message underneath. Interesting enough, sitting here a year ago, I would've been quite amazed at what's happened in the last 12 months in terms of growth in environment, social, and governance investing. You can see on this slide, the countries, the companies, the investment funds really starting to move towards ESG investing as really almost an alternative. The commitments that are being made by companies to net zero in countries is really starting to mean the investment that required to achieve net zero by 2050 is quite astronomical. AUD 3 trillion per year by 2050 according to the IEA. Obviously within the media and the press, these themes just continue to grow. Even most are saying this is only just the beginning of this type of growth trend in investment in ESG type themes. Just in terms of Calix ourselves, we actually have several different lines of business, and today we'll be going through each of those lines of businesses. It'll be a bit more than just me and Darren, who some of you may be used to presenting those. What today is about is the leaders of those businesses and some special guests taking you through in a little more detail. It's a chance for you to get not only to know the businesses a little better, but also to get to know who our team are that are leading these businesses and the passion, if you like, that they have for these businesses. That's really what we want to get across today, is for you to understand who this wider team is that's going to really deliver on the potential that we see in these different lines of business. For those who don't know Calix all that well, what is the core technology? What is it that allows Calix to play in all these different lines of business? Well, the core technology platform is really just a new type of kiln, a new way to heat stuff up, if you like. In a normal kiln, you just sort of throw what it is you want to heat up and you throw the fuel, you light a match, and off you go. That's basically been done the same way for 5,000 years. What we do is a little different. We have a central reactor tube, and here's sort of a toilet roll to demonstrate this tube, but in actual fact, this tube is a little bigger. Our plant at Bacchus Marsh in Victoria, the tube's about 24 m high and about 1.8 m in diameter, so a bit bigger than this. We heat that up to about 1,000 degrees centigrade and how we heat that doesn't matter. It can be fuel, such as gas, it can be biomass, it can be waste, it can be electricity. We're very agnostic about how we heat the tube up. Whatever it is we want to heat, we put down the middle of the tube, and w e need it in a fine powdery form. Imagine holding a lump of flour in your hand and then imagine dropping that flour to the floor and just watching it float down. Well, that's all that happens inside this tube. The flour sort of floats down, or whatever it is we're trying to heat up, sorry, floats down through the tube, and it's the red hot radiative heat from the walls of that tube that is heating up the powder inside. What's the advantage of doing it that way? Well, there's actually three key advantages in doing that way. The first advantage comes when you're heating material such as limestone. What a lot of people don't realize is that limestone, almost half by weight is CO2 trapped in the rock. When you heat limestone, as the cement and lime industries do, that CO2 comes out of the rock, and basically goes straight up into the atmosphere. In fact, CO2 is, that's two thirds of the cement and lime industry's total global emissions. Those guys are emitting 8% of manmade CO2 emissions. CO2 is a big issue for the cement and lime industries and really difficult to mitigate. With our technology, your heating comes on the outside, your cement mill or limestone's on the inside floating down. As that heats up, the CO2 comes out of those particles and just makes its way back up to the top of the tube as a pure stream. That CO2 comes out as a pure stream. The material comes out the bottom. The stuff out the top is ready for use, some purification and use, or sequestration. It's a way to directly separate the CO2 that's being produced from the limestone in the cement and lime industry. That's the first key advantage. The second key advantage is the source of a few of our different lines of business in biotech and batteries and water, and that's the ability to make very high surface area materials. What that is as these particles fall down through our tube and the gas comes out, we can maximize what's called the surface area or porosity of those particles. When you can maximize surface area or porosity, you can make some really interesting materials. Those businesses we'll talk through obviously in more detail later this morning. The third advantage of the technology is we're energy agnostic. As I say, no matter how we want to heat this tube, we don't really mind. It can be a fuel, it can be electricity, as in renewable electricity. In the electrification of industry, the technology's already renewable energy-ready, and that's really important for our sustainable processing lines of business, which again, we'll cover a bit later on in more detail this morning. That's the core technology platform. Just a quick flashback to what we've achieved through 2021. We've seen strong growth in our water business and improved gross margins. Our CO2 mitigation business, mainly in lime and cement, is really starting to take its first early commercialization steps. We're already part of the technology in Belgium with HeidelbergCement, but it's really starting a journey in terms of its commercialization, which is into a huge potential market in CO2 mitigation. In biotech, we've got 3 different areas of biotech that are now under development, and we'll cover that off in more detail. We've just started sales of our crop protection product in Europe, and we've got some testing underway with our marine coatings business. In advanced batteries, we've got some early but very prospective results from some interesting battery materials we've made with our technology. In sustainable processing, we've got three different areas of the business there that we're going to talk about today that are really taking, again, some steps towards commercialization. A lot happened in 2021, including a cap raise in March that was heavily oversubscribed, that's allowing us to invest in these different lines of business to help accelerate them. I'll just quickly introduce Audrey. Audrey's going to talk a bit about our sustainability, I guess, backbone, as to why we do everything here at Calix and also the source of the passion, if you like, for all of the individuals you're going to meet today. Audrey, just like to introduce yourself quickly, and then we'll talk a little bit about sustainability. Good morning, everyone. Can everyone see me and hear me all good? As Phil said, my role here at Calix revolves around marketing and communications, but what brought me to Calix almost 10 years ago now and still drives me today is sustainability and circular economy. You probably saw it on the first slide, and I'm sure you'll hear plenty about it through the presentation this morning, but at Calix, we take CSR very seriously. Not only solving global challenges has been the purpose of our business for over a decade now, but we, and I talk on behalf of all of my colleagues at Calix, we're very committed to using not only the technology, the products, the ideas that you'll hear about this morning, but also all of our skill sets to make a meaningful contribution to society. In 2020, we formed a sustainability team comprising of eight members, all of Calix employees, covering different lines of business, many countries, generations, cultural backgrounds, and languages. In 2020 as well, later that year, we joined the United Nations Global Compact, which is the world's largest corporate sustainability initiative, driven by the idea that companies have a crucial part to play in achieving the Sustainable Development Goals, the SDGs. Since then, we've reviewed all of the 17 SDGs, first of all, to familiarize ourselves with what they mean, not only to the world, but also to us as a company, assess the risks and the business opportunities they represent, but also setting priorities and ambitions for ourselves. We also took a thorough review of the 10 principles set by the UN Global Compact in areas such as human rights, labor, environment, and anti-corruption as well. I think the next important step for us will be to train all of our employees on the SDGs and further integrate those SDGs into all of the lines of business so they continue to influence our decision-making, but also all of our day-to-day activities. Not just because it's the right thing to do for the environment and the community, but also because the SDGs represent a tremendous opportunity for us to grow into the future. I could talk about sustainability probably for hours, and I could probably give you a lot of tangible examples of what that means on a day-to-day basis, but I wanted to keep it short and to the point. There will be a lot more details on our sustainability journey in the upcoming financial report. Of course, you're always welcome to contact us. Thanks for listening, and I hope you enjoy the webinar. Excellent. Thanks very much, Audrey. Okay, what I might do is just invite our CFO, Darren Charles, to give a very quick recap on our FY21 financials, and then we'll delve into each of the lines of business. Thanks, Phil. Good morning, everyone, and thanks very much for your time. I guess for me, today is really about the rest of the presentation, Audrey's part, and what Phil introduced, but really kind of beyond these next three or four slides. These next three or four slides are duplicates of what we presented last week. Many of you were on the call last week and were able to kind of go through some of our financial performance, obviously, in the last 12 months. I will touch very briefly on these things just to reiterate and reinforce those comments for those of you who weren't able to attend last week. Again, the focus for today is really on the important work and the opportunity to understand the strategies across all of our lines of business. Hopefully we can skip through these fairly quickly. Obviously, if there's any questions afterwards, please feel free to reach out. Key themes in terms of, I guess, the summary page is continued strong revenue growth. For those of you who are kind of familiar with these charts, essentially what they represent is, I guess, the breakdown of where our revenue comes from. The very dark blue bar is our sales revenue. We also get revenue from R&D incentive schemes. Then also the top part of the bar is kind of project income that we receive associated with kind of funded R&D activities. You can see there that we've seen kind of continued growth in our revenues. two or three years ago, obviously, we were sort of at AUD 14 million. We reported just under AUD 30 million in revenue this year. Principally, the main contributor to the growth was the performance of the U.S. business. Doug Kelley's on the line, and he'll talk a little bit about that in the coming slides with Bill when we talk more about the water line of business. There's also some headwinds as well across Southeast Asia, and as well, Bill will go into that when he talks about Southeast Asia and Australian sales. Phil if I can just kind of skip onto the next slide and talk more detail about, I guess, a few themes in our profit and loss. One of the key messages that I wanted to get across is essentially the sales revenue that we've reported this year is all the water business. You'll get to learn more about the other lines of business. Essentially, we have no sales revenue contribution from any of those businesses. In the year ahead, FY 2021, 2022, we expect to see contribution from a couple of our lines of business, sustainable processing and CO2. There'll be some engineering and project income start to make their way onto the P&L. That's first kind of commercializing and good strong kind of commercial progress we're making in those particular lines of business. The other thing to mention is our gross profit. Our gross margin increased during the year from 23% up to 27%. Our kind of medium-term target is to get it up to 30%. We're making some investments, particularly in the U.S., to develop our manufacturing capability to help achieve that over the near term. Again, we can talk more about some of the strategies and opportunities that we see moving forward. A couple of other key kind of points to make is when we kind of set our budgets for the year, we try and make sure that our gross profit covers our cost of sales and marketing. Typically, it's done that this year off the back of the cap raise that we announced earlier in March. We said that we were going to start to make an investment ahead of the curve, particularly in the United States. There's a great opportunity for us to grow our water business, and w e have begun to do that. The gross margin didn't quite cover the sales and marketing costs this year, but essentially that was investment ahead of the curve in terms of our opportunity for growing our U.S. business. The other kind of key point that we like to make is that the grants and the R&D incentives that we're able to very successfully kind of tap into essentially all go towards the R&D and the development of technology. As best as we can, we've worked over the years to try and make sure we tap those kinds of, I guess, revenue streams, grant opportunities to cover the investment in the technology, and we haven't asked shareholders to assist us with R&D. We've been very successful in that. We also have another sort of two or three years worth of grant funding to cover some of the major R&D work that we're doing. Really what we've done in the last 12 months, again, is make significant progress in de-risking the technology, particularly in the CO2 business, with a significant investment into LEILAC-1 and LEILAC-2 started, obviously. We've always taken a very conservative approach to the accounting treatment of our research and development. Essentially, everything is expensed, including the investment that we're making into our pilot plants. That conservative approach, we're in the process of reviewing that as we get closer to commercialization of our technology, which is happening. We'll kind of revisit those things, and you can expect to see the balance sheet will represent the kind of investment in the technology and the value in the technology that we're now building. We've made kind of very significant strides, and obviously, as you'll learn, we're making good commercial progress or good progress towards commercialization in the CO2 business. The carbon capture technology that we've developed is, we hope to be able to demonstrate in the very near future, it will be the lowest cost carbon capture technology that's available for an industry that requires major investment over the next kind of 5- 10 years to decarbonize to achieve their net zero goals. I might just move on to the next slide, Phil. I think, again, just trying to keep my part as short as we can so that we can get to the meat of the webinar. Phil touched on it previously in terms of the balance sheet. Again, we're very comfortable with our growing asset base. We've got no debt and, again, a strong cash position. Obviously, as Phil mentioned previously, we did a cap raise in March, which was very strongly supported by institutional investors through the placement and also through the retail investors through the share purchase plan. Again, that was heavily oversubscribed. We very much appreciate the support that the investment community is providing to us. We're very happy and pleased to get the support and to have the share register that we've been developing. We laid out the kind of activity that we want to invest in. Again, hopefully you can get some flavor as to why we chose to, I guess, hit the acceleration button with the support of the investment community earlier in the year. Again, we're a company that has essentially no debt, which is not unusual for a company in terms of a technology business in our sort of stage in the cycle. Hopefully anyway, the kind of financial position is very clean. Phil, just the next slide, if I may. A final point from me, I guess, is a couple of final points from me. The operating cash flow there number, just to reiterate, essentially from our perspective, it's a timing issue. I think we've mentioned there in the slide, we've got AUD 8 million of grants that we expect to receive over the next 2-3 months. In the prior year, we got some grants ahead of an investment cycle or investment process that we went through in the last financial year, and we get paid, essentially reimbursed for some of our expenses from last year in the next few months. We always aim to be sort of be a bit positive or operating cash flow positive. We reinvest as much as we can in the broad range of technology that we're developing. Again, like I said, hopefully you can see why over the course of the next hour or so. In terms of where we spent some CapEx, the AUD 6.3 million that we've invested during the year in PPE is essentially the LEILAC technology, which was just over about AUD 5 million. There has been some investment in the U.S. water business as well. We've already kind of got one new plant that we invested in. We've got some plant upgrades that we invested in as well. Again, Doug Kelley put some more color and movement around that. Phil, I think that probably covers everything that I should be talking about today, I'll hand over so we can get into the meat of it all. Fantastic. Excellent. Thanks very much, Darren. Thanks, Phil. As I said, we covered off the financials last week, so I might skip through to the water piece, and if there are any specific financial questions, we might deal with that at the end. Deep dive water business. Sorry for the pun, everyone. Who we've just got with us today is Bill and Doug, who are leading our, well, the U.S. business for Doug and Bill does everything else. We've got a special guest also, Duane, who's joining us. Huge welcome to Duane. What I might do is get Bill and Doug on the line to introduce themselves. Doug, maybe you introduce Duane, and then we'll kick in. Fantastic. Thanks, Phil, and thanks everybody. Bill Karis is my name. I'm the general manager of water, as Phil just explained. My background is I'm a mechanical engineer. I've spent most of my career in large corporates, and learned a lot from that kind of experience that I've been able to bring now to Calix in terms of our approach to our sales and our strategy and our long-term plus short-term growth. I'm one of the true believers in this business, as are most people, and I look forward to sharing with you a little bit about where our water business is at and the direction that it's heading. Before I pass over to Doug, I'll be taking you through an overview. We'll then pass over to Doug, who will take you through the U.S. business, and then you'll come back to me, and I'll talk you through the rest of the world and some of the other countries that we're active in at the moment. Okay. Over to you, Doug. Over to you. Quick intro. Is it ready for me to jump in? Is that it? Are you waiting for me, Bill? I can't hear very good. Yep. Yeah. Oh, I'm sorry. Okay. Yep. Doug Kelley, president of IER. Halfway between one place and another, so I'm outdoors and it's a beautiful day, so I'm going to take advantage of it. IER is thrilled to be part of the Calix team, and wonderful working with Darren, Phil, Bill, and the whole gang. Our expertise, my expertise is I'm a PhD chemist who's grown madly in love with treating wastewater, as odd as that might sound. Using milk of magnesia instead of caustic soda to pH adjust it. It's a passion. It's simply people burning themselves, people inappropriately using chemistry when there's so many simple, safe approaches to do it. IER has been based on trying to develop world-class technology. Our technology, I would argue was far from world-class before we met Calix a year and a half or so ago. They helped us develop and improve the stability, pumpability, feedability. Magnesium hydroxide, as many of you might know, is a slurry. Feeding a slurry in water treatment, regardless of how many wonderful properties it has, could be a nightmare. If you can't feed it, you can't enjoy the benefits of it. IER has taken a lot of time and expertise to develop world-class technical service so that we don't just sell a drum, we sell an entire feed system. The cost benefit that they get over the more hazardous chemical readily pays for the feed system so that they don't have to worry about long-term ROI worries. It's an incredibly fast turnaround for something that's safer for their employees and it's better for the environment. It's a pretty easy sell when I can go to a food processing manager to help them clean their wastewater, or a municipality who's spending quite a bit of money and say, "Hey, look, let's get rid of this hazardous chemical. Make it safer for your employees. Oh, by the way, you're going to save a few grand every month on your chemical bill." It's not a difficult sell, the hard part is making sure that it feeds right, and that's where Duane's story comes in. We like to take pride in technical expertise. We hire people who are wastewater experts or chemistry experts, microbiology experts. We try to bring expertise so we're not just a bunch of sales guys, again, dropping off the drum and going away. We're there to work with the people and help develop a project and make it be a win-win. World-class chemical, world-class expertise, world-class service. That's what we're all about, and Calix bringing us on board has helped immeasurably with our product quality. We're excited about the growth of what we can do here in North America. That's kind of it in a nutshell. Okay. Do we want to have Duane chime in? Do you want to introduce Duane? Yeah. Yeah. What I'd like to say is that we used to use caustic soda back in the day, and then we had magnesium hydroxide. It just kept clogging and clogging, and we weren't getting any support when it came to the customer support from the previous magnesium hydroxide customers. At the same time in 2015, Doug Kelley and his support with John Strong and so forth came in. They helped us out. We had clogging issues happening all the time. The stuff prior was turning into almost like concrete on us all the time. We were new to the magnesium hydroxide aspect of it, so we were getting frustrated with it, and about ready to just say quit with it. Luckily, IER came in. They gave us great customer support. They came in and helped revamp all of our piping system that we had. They brought in a temporary tank so that we can continue using mag while we were transitioning to the new piping. They cleaned out all our tank. Ever since we've started with them back in 2015, and we've had nothing but great success with them. It has been a pleasure to work with Doug and John Strong and all of them. I think that's got to be the biggest thing is that we can call anybody. They call us all the time just to check in, make sure we're doing good and all that. It's been really good. Excellent. Thanks very much, Duane. Wonderful Thanks for joining us. Huge appreciation. I might jump down, Bill, to just a quick overview. Yeah, Phil. Doug, we might go into the look forward for the U.S., what you see coming up. Bill, you go first. Yeah, just a quick summary. A key foundation of the revenue and growth in the water line of business is our focus on the treatment of wastewater. Management of wastewater into sewer networks and the environment is driven by legislation, and specifically discharge limits. To achieve the discharge limits requires extensive infrastructure and chemical dosing, whether that's in the treatment plant or upstream to manage odor or corrosion. Chemical dosing is adopted by almost all water authorities and councils as part of their wastewater management strategy. That's a key foundation of our water business is wastewater. What you'll hear in a moment is the U.S. business is very strong in industrial discharge. There's effectively two main sources of wastewater. 1 is industrial discharge, and the other is effluent that comes from human consumption. The U.S. business is very strong in the industrial side, and the Australian business, as you'll hear shortly, is very strong in the municipality and the council side. We're working together very well to share those strengths and experiences, and part of our growth in the future is working together as a collective group of people to grow in both of our respective territories in the U.S. and the rest of the world. Now, one of the quick things I just wanted to say about our solution, of all the chemicals that have been adopted by water authorities, MHL offers some very clear benefits chemically. Duane touched on the physical properties of MHL and the need to actually be able to manage those, which is part of the service that we offer as part of our overall package, which we'll talk to in a little bit more detail. Fundamentally, MHL has some really clear chemical benefits. Usually I like to read the room before I share this story, but it's very hard to do it in this kind of environment. Two of the things that I like to do, because I like to engage people in conversations or in meetings, is if you take a beaker, and you can do this at home, if you take a beaker of an acid and something like a vinegar, and you take caustic soda and you take MHL. You pour both of them into these two beakers to try to get the pH up to seven. You'll be pouring the MHL, you'll stop, you'll continue to have to pour caustic to get it up to a pH of seven. That's a very simple, practical. It makes a huge impact to people to understand the volume of the different chemicals that you need to achieve the pH. One of the other things about MHL, as Duane and Doug mentioned, is the safety of the product. Not just to the environment, but to the user as well. I've been known to actually have a sample of our product and actually taste it in front of a customer to create the discussion, and it leaves an impact. When they're used to dealing with very harsh, difficult chemicals, and you have a supplier who brings their product in and basically eats it leaves an impact. It starts a conversation. I've been known to do it. Excellent. Thanks, Bill. We might jump forward to, I think Doug's covered the basics of the U.S. business, but Doug, just in terms of the strategy from here on in and what you see moving forward. Absolutely. Can you see that slide there? I can. When IER joined Calix, as you can see all the dots, we were a Pacific Northwest company with some satellite business in the upper Midwest. Now we are rapidly growing to be a company that is covering probably two-thirds of the nation. All the territory basically west of the Mississippi River is our short-term goal, and we've got some much more aggressive long-term goals. You can see the investment that we're really going strong, and very successfully with. It's a two-prong investment, where we're not just investing in equipment and putting plants in different places. Like I said, we want to be world-class not only in the product, but also in the knowledge of how to feed the product, and the knowledge of wastewater in general, so that we can be a resource for folks like Duane instead of just a shiny salesman with nice shoes who doesn't want to touch anything. We want to roll up our sleeves and help him. We've added three new sales professionals who are all long-term wastewater, actually operators, like Duane. Someone who actually operated a wastewater plant, either municipally or industrially, or in most cases, they've done both. One of our new guys that Duane knows well is a young guy named John Van Wingerden, who lives the farthest northwest dot up there in Washington state. A young guy in his early 30s, still learning how to try to be a salesman because that's not what he was trained to do. He was trained to be a chemist who worked in an environmental lab, for an industrial wastewater plant. Learned enough about the wastewater treatment process, the microbiology, the equipment to do solid separation, and all the necessary things you need to do for wastewater treatment. He's not just out selling magnesium hydroxide. He's trying to really work with the folks to understand what's the best solution for their process. We're really excited about the investment that we're doing. New plants down in Texas, California, where we have a tremendous amount of growth opportunity, both in industrial and municipal. Again, when we think of municipal, we're thinking mostly out in the collection system, the network, where you've got to get the sewage from out there to the plant. In many cases, you can put magnesium hydroxide in that part of the system, and you don't need to use it at the plant, and t hat's something that we really need to talk with Duane more about. To minimize his usage at the plant and solve a problem out in the collection system, and so he doesn't have to add another chemical. You can just use the same chemical, just put it a little bit farther out in the system. Bottom line is, with this kind of approach, you've got the expertise, you've got the relationships, you've got the product that you can have confidence in, the feed system that can handle it. You see our customer retention is very, very strong. We had this last year a transition to go from a different type of magnesium hydroxide to one that we make ourselves. Again, with the guidance and the knowledge that we got support from Calix. We made a complete turnover of our upper Midwest business to this new product. That was not a trivial thing to do when we've been selling somebody else's product for all that time. Yet our retention was phenomenal. It gets back to not just the product, but the knowledge of the product and the service for the product. Anyway, I'm sorry if I'm beating a drum, but that's who we are. No problem at all, Doug. It's an excellent summary, and thanks, Duane, as well for your thoughts on our service to you. Bill, I might just get you to very quickly cover off rest of world. You can do rest of world in one minute, I'd imagine. We might have time for one or two very quick questions. Fantastic. In the Australian business, we're focused on solutions for the water authority. It's not just providing the product, it's providing monitoring, dosing systems, and ongoing service and maintenance, as well as telemetry. We have a number of KPI-based contracts where the customer gives us responsibility to meet pH, H2S, and delivery service levels. They effectively give us an open purchase order, and we're responsible for effectively being a partner in their business. That's a solution that we've developed and is a key part of our focus at the moment and going forward. Transferring that knowledge across the world, including into the U.S., as Doug spoke about. Southeast Asia, we haven't spoken about this previously, but aquaculture is a key part of our water business. We have a unique product in the aquaculture market. It's a water conditioner. We have a great product. There is a problem. We're very confident in that market and in our ability to attack that market and try and grow it. We've had some headwinds. COVID is causing us some issues, as Darren spoke about earlier, which everybody's in lockdown. Nobody's able to visit customers. However, in China, we've just recently employed a new person, Steve Shaw, who has a master's degree in aquaculture, and the information and the strategies and the work that's coming out of that has been fantastic in the recent time. Sorry, I've had to rush through this, Phil. No, that's good, Bill. It's a bit of a repack as well, so there's a few other facts and figures there. Yeah for people interested in the business to have a look. Maybe Simon, there's one or two questions coming from the audience for either Doug or Bill. Yep, absolutely. Thanks, Phil. First question is from Hamish Murray, Bell Potter. How is IER sourcing the magnesium oxide for its MHL currently in the U.S.? What targets do you have for the installation of CFC in the U.S., and what benefits would it bring to the IER business? We're sourcing our magnesium oxide in North America from a company called Baymag, which is owned by Refratechnik. It's the highest purity magnesium oxide, magnesium carbonate in North America. That's where our primary sourcing has come from, but we're looking at other sources as we expand into other areas of North America where logistics might make more sense. Thanks, Doug. Next question, more of a sort of outlook question, but in terms of revenue, what is the split between U.S. and Australia for water currently, and what do you project for the next two years? I might take that. I missed that one again. The revenue for the next couple of years for North America versus the rest of the world? Yeah. You want to take that, Phil, or? You take that one, Phil. Yeah, I'll take that one. In your report, I think the US business, and Darren, correct me if I'm wrong, was about AUD 15.4 million, about $11.4 million. The Australian and Southeast Asia business was about AUD 3.6 million. That's the current split. The US business is our major growth market that we're targeting. What we achieved in the Australian business when we first entered the market was, we grew to about 40% of the market in about three, or just over three years. Obviously, getting the base set up in the US now with the right technology, and strategy for growth, really what we'd love to do is emulate that. We're not giving guidance in terms of actual numbers at this point. What we're giving is what our aspirations are, is to try to emulate what we achieved in the Australian business. Hopefully that answers the question, Simon. Thanks, Phil. I think that concludes the questions in terms of the time allotted. I'll hand it back to you. Off mute. Okay, excellent. Well, thanks very much, Bill and Doug and Duane, for a bit of a deep dive into the water business. What we'll do now is just move on to the CO2 business. This is the business, if you recall, that we're using the same core technology to separate the CO2, directly associated with the emissions from limestone, into CO2 and obviously cement meal. That CO2 separation business has largely been focused overseas. Interestingly enough, we're starting to see a few projects start to emerge in Australia. Unfortunately, Dan, who here you can see is our General Manager of Cement Decarbonization. It's about 2:00 A.M. in the morning, I think, in Europe, and Dan spent the whole day yesterday with the European Commission on our LEILAC-1 output report. I'll talk a bit more about that shortly. I'll fill in for Dan today, and we'll hopefully have a chance for you all to meet Dan a bit further down the track. Adam is available today, our General Manager, Lime Decarbonization. Maybe, Adam, if you introduce yourself. Sure, Phil. Adam Vincent. Good morning. Yes, I'm the General Manager for Lime decarbonisation, which is a bit of a mouthful, but it's meaningful to us. What does it mean? It means that my role is to develop and commercialize our technology into the lime sector. I sit alongside Dan, who's looking at the cement sector. I've been with Calix since 2010, so I'm in my 12th year, it's been a hell of a ride and very exciting place to work. I've had a number of roles. In 2016, I moved to the U.K. to manage the LEILAC-1 project, returning to the role of General Manager for R&D. Early this year, moved into this current role. I've got a chemical engineering background. Thanks, Phil. Excellent, t hanks very much, Adam. Let's have a look at this whole issue with CO2 in the cement lime industry. Here's the only chemistry you're ever going to have to learn in today's discussion. Limestone, when you heat it up, splits into lime and CO2, and you can see here it's roughly the same amount of CO2 that's emitted as lime produced. This is the equation that is really difficult with respect to this particular industry. You can't avoid it, no matter how you heat. Even if you heat renewably, you're going to be producing significant amounts of CO2. That's the CO2 problem. The other thing that's interesting with this industry, again, compared to a year ago or a few years ago, the increasing legislative pressures that are coming on cement and lime manufacturers. Here, again, I won't go through it in detail, but you can see from earlier dates moving forward to current dates, just the tightening pressures and incentives that are being put in place for cement and lime industry to mitigate their CO2 emissions. The most recent European progress is really quite interesting, that it costs to emit a ton of CO2 there. You have to go and market and buy a permit if you emit a ton of CO2 above a cap, and that cap is reducing year on year. That ton of CO2, when we listed the company in 2018, was EUR 5 a ton. It's now over EUR 55 a ton. If you can imagine the cement or lime costing that much to produce, then you can see that these industries are facing existential liability challenges associated with their CO2 emissions. As recently as July, the EU introduced even more strict targets, targeting a 55% reduction by 2030. They've also introduced maritime shipping for the first time in their caps. In Europe, there's real pressure. In the U.S., the legislative progress is, again, a little more on the incentive side. What's really interesting here is a lot of moves by senators and Congress to introduce bills all looking at the same thing, which is increasing what's called a 45Q tax credit for mitigation of CO2. That system is getting more and more funding. It'll be interesting to see how the budget process goes through the U.S. in the next month as to how much this cap, sorry, this tax credit may incentivize even more CO2 mitigation projects in the U.S. Our particular technology, you can see here in this little diagram, fits into a cement plant here. It's not a new process that is effectively a new chemical plant that you add at the end of pipe. It's integrated into the cement plant. In terms of our development, we've already built a pilot scale facility in Belgium with HeidelbergCement at a site there. You can see a little picture of it there. It's about 5% of the capacity of a cement plant. You can see here we've got a scaled-up version of that. We're calling that LEILAC-2, Low Emissions Intensity Lime and Cement 2, very imaginative, I know. That's fully funded. We've got money from the EU and committed from industry to build that facility, and that's targeted to start up early 2024. LEILAC-3 is in planning now. That's full scale, 100% capacity for cement. LEILAC-2, by the way, is already at large capacity cement for lime. As we go through the discussion this morning, we'll split cement and lime up a little bit so you'll understand those two different industries. Just in terms of the opportunity, here's a quick global map, if you like, of the number of plants and the millions of tons of CO2 that's produced from those plants around the world. In total, there's over 2.2 gigatons, billion tons of cement that is producing CO2, lime and cement product produce CO2 every year. The other sort of number I use is that if we were to build one of these LEILAC-3 facilities, this one here, capable of mitigating the process emissions from a 1 million ton clinker plant every three to four days for the next 25 years, that would still not be enough to mitigate all of the CO2 coming from the cement and lime industry. It's a significant challenge. With respect to some of these maps, we're starting to really understand where we'll target and what countries we'll target with respect to the rollout of the technology. We're working with some pretty big companies. HeidelbergCement I mentioned, but we've also got Cemex, Tarmac, Lafarge, big lime companies. Cimpor, Portuguese Cement. Solvay, big chemical company, needs CO2 and lime in the production of soda ash. We're also working with CO2 hubs. We'll talk a bit about more of these, especially with the lime business as well. Port of Rotterdam is 1 of the largest and most developed of those. Lots happening across the globe, and it really is a global opportunity for the technology in lime and cement. This is our opportunity pipeline. I've talked to some extent about some of the stuff that's starting into initial scoping. I've added an extra dimension to this pipeline because there's a hell of a lot of dialogue happening with several companies in several different parts of the world. You can see some are starting to move through into memorandums of understanding with defined project timelines, Tarmac there, and Adbri, pending some grant funding support also, announced recently. The pipeline is really starting to build for both cement and lime. A snapshot of what we might look at with cement, because often people might ask us, "What do you do with the CO2?" That's a very good question, because our expertise is in separating it. Increasingly, our expertise needs to also be in helping our customers understand what to do with it. We're starting to get into quite detailed geological understanding, especially with our projects in Europe. In the U.S., there's quite a bit of logistics work that we're starting to undertake to understand which cement plants are located proximate to existing CO2 infrastructure. You can see here a map, if you like, of all of the cement plants in the U.S., and what's called enhanced oil recovery CO2 pipelines. These are CO2 pipelines built in the '70s, but increasingly will be turned to be used for CO2 sequestration. While people might think that it's a long way away before the CO2 infrastructure is there to handle all of the CO2 coming out of the cement and lime industries, if they were to try and deal with it, in fact, there are already starting to be logistic solutions for these, especially in the U.S. It's not that far away that these sorts of projects could start to come to fruition. I might hand over to Adam very briefly, and he'll talk about lime and a bit of a quick case study on the lime CO2 infrastructure being looked at. I will, Phil. Would you like to just cover off the HILT portion of that slide first? Sure. Sorry. I will, Adam. Just in terms of a few of the things that have happened, very recently, we did announce we were part of the HILT CRC, which is part of an Australian government-funded cooperative research center. Interesting here is, I mentioned before, I didn't think I'd be doing a project in Australia for quite some time. That may not be the case anymore. There is a hell of a lot of focus coming here on decarbonization, especially of heavy industry. Why? Heavy industry, earn us a lot of export dollars. Despite the fact we may not have a carbon price here, countries such as Europe are and will be implementing a carbon price by 2023, and other countries will follow. Our export industry had better start to compete on a decarbonized level, or it's going to impact our economy very badly. In the HILT CRC, you can see some pretty major players joining that with both cement and lime opportunities for the company. Adam, over to you. Thanks, Phil. Yeah, as we showed earlier, we have a couple of MOUs signed this year with Adbri and Tarmac here in Australia and in the U.K. The Adbri project is awaiting some grant funding. The Tarmac project is underway. We're in the pre-FEED phase of that project and hope to get to FEED by Q2 of next year, where we'll make an application to U.K. government funds to build the plant. The FEED is currently underway. That plant will be able to separate up to 20,000 tons a year of CO2 using our process. We're looking at some interesting fuel options as well around hydrogen and renewable electricity. What's really interesting about this project in particular is that it has the ambition to not just separate CO2 in the process, but to actually store that CO2. This is not just a project where we want to demonstrate that we can separate CO2. We've done that in LEILAC-1, but this project has the ambition to actually store CO2. I guess how will we do that? Next slide, please, Phil. Thank you. Phil touched a little bit before about hubs, and hubs are critical, and they'll be super important for storing CO2 around the world. The U.K. are out in front a little bit in this regard, I guess, with some of their networks that they're starting to establish. This particular one in the HyNet on the west coast of the U.K., it aims to use some existing pipe and offshore infrastructure to pump CO2 into disused oil and gas wells. There's already some existing infrastructure in place for this project, that's a really important headstart. There will be some new infrastructure built to help to feed that pipe, some of the black pipes you can see here on this graphic. What will underpin this hub or this cluster is the production of hydrogen from natural gas. When that is done, you produce CO2. The CO2 for that will be stored. That gives them a blue hydrogen, but it is still a CO2-free hydrogen, but it is the base load that then allows other industries, heavy industries like lime and cement, to feed that network as well. Together, the ambition here is that we achieve enough CO2 into these networks that they become commercially viable. The other exciting thing for us, of course, is that there is hydrogen production in and around this network. It does offer us the opportunity to partially or fully substitute natural gas in the reactor, burn that in conjunction perhaps with some renewable energy. We ultimately have the ability to produce 0 CO2 lime, which would be a great outcome. Thanks, Phil. Not sure if there's anything else you wanted to add. Yeah, no. Thanks very much, Adam. An interesting thing about this hub is it's targeting its first hydrogen production and CO2 storage by 2025. If you recall the timeline we looked at before with, say, the Tarmac project, it lines up really quite well. CO2 utilization and/or storage is one of those things that isn't decades away for us. Just in terms of time, I guess, Simon, happy to take any questions on the CO2 business. Great. Thanks, Phil. Questions. Holcim have moved ahead with commercializing a different carbon capture technology, which I saw on their website they're rolling out across the world. The first was built in Norway called the Brevik CCS project. How does this affect your capture technology being adapted? Good question. HeidelbergCement have not adopted a single technology. They're putting their eggs in a few different baskets. The Brevik Project is a particular capture method called amines. Amines is a type of chemical that captures the CO2 out of the flue gas at the end of the pipe of the cement plant, and it's the most technically advanced. It's what they call Technology Readiness Level 8, which is one step before commercialization. HeidelbergCement are making a bet on amines as well as several other technologies. The problem with amines is they're very expensive. Once that CO2 is absorbed in that amine, you then have to re-boil it to get the CO2 out as a pure stream to then do something with, and that re-boiling is very energy intensive. While it's the most technically advanced, it is about the most costly way to do it as well. They're making bets there, t hey're making bets with us, and the reason they're making bets with us is because we don't have any parasitic energy load. Ours is part of the process itself. Theoretically, having no extra energy load gives us the potential to be the lowest cost. We have to do is to continue to scale, improve our technology in our LEILAC-2 project to prove that we're the lowest cost. We're just a few short days or weeks away from releasing the results of our LEILAC-1 pilot. As I said, Dan has been with the European Commission just in the last 24 hours on that output report. In that output report, there'll be a lot more detail, once approved by the EU, that we can share publicly about where our costs are coming in. Suffice to say, we remain highly confident that our process will be extremely cost competitive compared to even more advanced technologies further down the commercialization pathway than amine. Thanks, Phil. Next question. Looking at the world map that you showed us, CO2 emissions in China are almost 10 times the combined emissions from the U.S. and Europe. Do we have a plan to develop the market in China? If so, how do you view the threat of locally developed alternatives? Yeah, no, it's a very good question, and China is absolutely far and away the largest cement producer globally. In terms of the way we want to develop the technology, China doesn't have an emissions trading scheme yet for cement. It's introduced one for power. What we're trying to do is develop where we have those incentive schemes first to take our technology up the scale. We've hit six with LEILAC-1. We want to hit eight with LEILAC-2, which is then starting to get ready to be commercially deployed. Once we've hit that and we've utilized the support of the incentives and penalties in Europe and the U.S. to really drive that development, that's when the approach to China will take place. Suffice to say, the approach of China will be much more a licensing approach. It'll be licensing the technology, and we'll need to be careful and choose the right partners to license that technology. That's what I call almost our blueprint stage. Once we've got the blueprint for the technology, licensing those blueprints is what we're going to be looking at for countries like China, and it'll be a royalty or upfront capital charge type license arrangement. Our approach to China is sort of late 2020s, and the approach to the U.S. and Europe is immediate. Great. Thanks, Phil. Question, are there any plans to purify the CO2 stream for food grade CO2 market? That is an option, obviously. The CO2 coming out at the top of our calciner is actually quite pure. It will require a little further refining, but that CO2 is effectively owned by the cement or lime company. There are big gas companies, obviously, who currently off take CO2 and put it into those sorts of food industries. The sorts of partnerships that may be struck up include those gas companies. Absolutely, that's a possibility. In fact, with some lime plants producing around 50,000-100,000 tons a year, that's exactly the type of utilization of that material you would do before considering some of the more logistically challenging sequestration options for the CO2. Our CO2 is high purity and can be cleaned up relatively easily for use in those sorts of applications. Great. Thanks, Phil. Probably last question on this segment. Storage of captured CO2 liquid and gas remains a serious problem for CCS. Does the purity of the captured CO2 provide advantages for solid phase storage of the captured CO2? Is the company looking at partnerships or technologies to integrate solid storage? Yes. Look, I assume by solid storage, I mean the ability to store the material in what's called a carbonation reaction, which is where the CO2 basically goes back onto lime or other material and form a carbonate. Indeed even geologically injected underground to be recombined as a carbonate and locked away. The purer the better, totally agree. With CO2, there's all sorts of issues that can enter the chain to sequester it if you don't deal with the CO2 properly, corrosion and these sorts of things. Certainly purity is important. The only other thing, I guess, with respect to partnerships is absolutely. In terms of looking at sequestration options and utilization options, part of what we're using a bit of the funding that we raised to do is to start expanding our expertise and reach into forming more partnerships that allow a total solution, if you like, to be offered to a customer, not just a separation technology. Great. Thanks, Phil. That concludes the Q&A segment for that line of business. Excellent. Thanks, folks, and thanks for sitting through it all so far, for those who've made it this far. I'll jump forward into sustainable processing now, and I'll get Andrew and Michael, and we've got a very special guest, Ken, joining us from holidays, by the way. Huge applause to Ken for dialing in. Maybe, Andrew, you kick off, and then we'll go to Michael and Ken. Yeah. Thanks, Phil, and good morning and welcome, everyone, to our look at sustainable processing business line. We might have the next slide. Thanks, Phil. The sustainable processing business line is the area within Calix that looks at opportunities to utilize the Calix platform technology outside of our CO2 business, which you just heard all about. Today, I want to take a deeper look at three areas where Calix is actively studying opportunities with partners and then touch on some other opportunities in the development pipeline. Looking at the slide in front of you, moving from left to right, hopefully you're left to right, we'll start with the mineral looping energy storage. In partnership with SaltX, we are developing a pilot plant to study the opportunity to convert renewable electricity into stored energy via a mineral salt, which can later be recovered as either electricity or heat or both. As renewable energy generation grows, so too will the need for longer duration energy storage solutions such as this to provide balance to energy grids. Bloomberg New Energy Finance predict that AUD 620 billion will be invested in energy storage in the next two decades. A portion of this will have to be longer duration energy storage. We'll talk in more detail on the SaltX opportunity in the slides coming. Now, moving to the refractory industry. Like cement and lime industries, the 15 million tonne per annum refractory industry needs to head for net zero CO2. In partnership with RHI Magnesita, Calix is studying the application of our technology to both separate process CO2 and operate using renewable electricity to create a truly zero-CO2 refractory feedstock. Again, we'll look more deeply at that. In fact, Michael will talk to that slide shortly. The next one in the queue, if you like, is the spodumene processing. With lithium consumption predicted to grow by 500% by 2050, the development of a process to reduce the CO2 footprint of this vital battery material while simultaneously reducing the movement of waste material from mine site and producing a higher value lithium sold in Australia is a great challenge and opportunity. The CEO of our partner in this journey, Ken Brinsden from Pilbara Minerals, is here with us today to share his thoughts on the importance of lowering the CO2 footprint of battery materials. Again, we'll look at that more deeply shortly. Of course, we're not stopping at just these three areas. Other concepts in development, you'll see to the right of the slide in the shaded area. The zero-CO2 production of clay for next generation cements, which are being designed to reduce the CO2 footprint of the infrastructure being built around the world every day. One of these is known as LC3. This is a potential billion-tonne per annum market. Another one, electrifying aluminum oxide production, which exceeded 125 million tonnes per annum globally in 2021. It is one of Australia's largest mineral industries. Finally, we're continuing to review existing thermal processes to understand their suitability for conversion to our technology using renewable electricity. Now we'll look more closely at the first three opportunities. Energy storage. I felt the best way to communicate this would be to actually look at an example, which is one of many potential ways this technology could be used. An example is the provision of heat in the form of superheated water into district heating systems such as that in Helsinki. The current system is provided with heat from combined heat and power plants, which burn fossil fuels. The power portion of these plants can and is being replaced with renewables, but the heat portion is a bigger challenge. The SaltX concept can convert the renewable energy into stored energy, which is then released as required to provide heat into the district heating system. This potential solution was recognized in 2020 by the City of Helsinki, when it announced SaltX as one of the winning concepts in a EUR 1 million competition run by the city for new technology solutions can help them realize the ambition of completely closing the CHP plants by 2035, and thus cutting 56% of the city's direct emissions. To get a sense of the scale of this opportunity, if all the existing heat energy used in Helsinki was supplied using a SaltX solution, a total of 45 LEILAC-2 sized Calix units would be required. Helsinki is one of many cities in the northern hemisphere that use a district heating system. Some of the largest include Moscow and New York, quite famously, I'm sure. Those that have had the opportunity to travel to New York see the steam vent coming out up through the pavement. You can see the concept illustrated in the figure in the bottom left corner of the slide, in which the Calix technology is providing the SaltX charging function. We're putting the energy into the salt. The diagram bottom middle of the slide illustrates the flexibility of the concept, in which various energy inputs can be transformed to different energy outputs, and of course, stored and used when required. In this example, we're turning renewable electricity into heat. The first step for SaltX and Calix, as announced in February this year, is to construct a pilot plant in Sweden, which is well progressed, with the discharging section already being commissioned and the Calix charging section components being delivered to site and assembled right now. I'd like to hand you over to Michael to talk about our refractory opportunity. Thank you, Andrew. I'm really pleased to give a quick rundown on the progress we have made with the refractory industry. Calix has been producing magnesium-based products, including magnesium oxide and magnesium hydroxide, since 2013. We've got extensive knowledge in that area, and leveraging that knowledge and IP in the refractory space is really low risk and high reward for us at the moment. In July of 2021, Calix announced to the ASX the memorandum of understanding that we established with RHI Magnesita, so I'm sure some of the investors on the call now are aware of this project. RHI Magnesita is the largest refractory manufacturer globally, and since we've signed that MoU, through August what we've done is we've demonstrated the proof of concept through directly testing the materials from RHI Magnesita through our pilot scale BATMn plant at the Bacchus Marsh facility, or the Maddingley facility here in Victoria. That measured CO2 purity above 98.5%, which is fantastic in terms of demonstrating the efficacy of the technology, and that has been verified by an external independent NATA-certified laboratory. That way, RHI Magnesita has got the confidence that we can supply the CO2 at the high purity, ready for reuse, storage, and those type of things, as has already been discussed by Adam and the team earlier. The Calix engineering team is actively working on two potential projects focused on building two 25,000 tonne a year calciners designed to produce low carbon or green refractory products. One of these potential projects has the opportunity to be powered fully by renewable energy. This financial year, we're looking at targeting to complete the pre-FEED phase and moving forward into full feasibility studies with these potential projects. It's very exciting. These are the first steps, yeah, to decarbonize the AUD 20 billion refractory industry, which offers huge opportunities as every tonne of refractory produces more than a tonne of CO2 from the mineral, and even more when you consider burning the fossil fuels within the traditional calciners. At this stage, hopefully that gives you a bit of a rundown of the project with RHI Magnesita. I'll hand it back to Andrew to discuss the lithium work. Thanks, Michael. Right. I wanted to move on to our latest project, looking at processing the spodumene concentrate that contains lithium to extract that lithium. For this opportunity, we've been fortunate to team up with Pilbara Minerals, as we mentioned, who are the owners of the world's largest independently run hard rock lithium operation. Let's start by looking at a couple of forces driving the need for innovation in this space. By now, it's no secret that the era of the electric vehicle is with us. The rapid growth in EV uptake has led to the EU to declare lithium a critical raw material with an expectation that the EU alone will need 60 times more lithium in 2050 per annum than it is using now. The graph of the EV sales in Europe, month-on-month, year-on-year growth you can see on the screen, supports such a need. Of course, not all lithium batteries go in cars, demand for lithium battery storage is also increasing. The second driving force for this decarbonization of the lithium production is that lithium batteries can't become part of the problem if they're going to be part of the solution. The batteries and the materials that make them must have low CO2 footprints. The EU is leading the way, developing a framework of legislation to phase in, ultimately resulting in maximum lifecycle carbon footprints having to be declared and a battery passport system. We can see that the drive is supported by the major car manufacturers here on the slide, who have set goals to use materials in their cars that have zero CO2 footprint within the next two decades. Now we can see the why, we can move on to the how. In the diagram on the left, you'll see a flow sheet being developed to take on the challenge of lower CO2 lithium salt production. As we step through this, you can see some other sustainability benefits that have also been identified. We start with a spodumene concentrate from the Pilbara Minerals existing Pilgangoora operation, and process it through a new plant at the Pilgangoora site. The whole plant, including the Calix technology, is designed to use electricity, which would eventually be renewable as the availability grows in the Pilbara region. The availability of renewable energy, that is. The output of this process is a concentrated lithium salt, which is then shipped to existing cathode materials producers. The lithium is now in a concentrated salt, the mass of material being shipped is as little as one eighth of the original concentrate, further reducing the CO2 footprint. The remaining aluminosilicate waste material stays at the mine and is managed in the existing tailings facility, which again improves the sustainability of this process route. The process offers further opportunities to improve sustainability by treating fine, lower grade spodumene concentrate that is often difficult to process in a traditional rotary kiln. Now let's take a look at how the project is progressing. We can go to the next slide, please. Many of you will recall we announced an MOU with Pilbara Minerals back in May to undertake an initial scoping study for this project. The project was targeting five objectives. These were higher value product produced at the mine site, namely lithium salt. A process that can be powered with renewable energy. Less shipping of waste aluminosilicate from the mine site. Higher recovery from the ore body by potentially treating fine, low-grade concentrates. A lower CO2 footprint product, which can provide a competitive advantage as carbon barriers are erected in markets such as the EU and U.S. The project remains on track to deliver all these objectives. We have undertaken trials using the Calix pilot plant in Bacchus Marsh, Victoria, Australia, on several spodumene concentrate samples with excellent results. These materials have been used by the Pilbara Minerals team to develop the lithium chemical concentration, or LCC process. This process includes a traditional acid extraction leaching step, followed by solution purification and final high-grade lithium salt precipitation. Based on this flow sheet, the teams are working diligently on all the elements of the scoping study, including the preliminary plant layout you can see in the slide, capital and operating cost, an initial view of a potential project development timeline, and of course, initial lithium product market testing. The scoping study report is on track for completion in 2021. With the strong tailwinds in the market, Pilbara and Calix will look to move to an accelerated feasibility study and start the work to establish a joint venture for the demonstration project and future marketing of the technology to the wider lithium industry. I'll finish with a couple of comments on the lithium market. The current market conditions are very buoyant for lithium businesses at present, with lithium carbonate and spodumene concentrate prices both rising significantly over 2021, as you can see some recent figures on the slide there. Rather than me talking about that, I'll hand over to an expert in all things lithium, Ken Brinsden, CEO of Pilbara Minerals, for a few words. Fantastic, Andrew. Thank you. Phil, Andrew, Michael, great to be with you. Really appreciate the opportunity. It really constitutes a material step forward for the hard rock supply chain. The application of a midstream product, when you think about the opportunity from Pilbara Minerals' perspective, it creates alternate markets to what otherwise would happen with a conventional spodumene ton, which comes with its own set of problems. A combination of lots of waste being shipped, but also a materially higher carbon footprint when you think about a fossil fuel-fired conventional calcine facility. Our opportunity comes through the application of a really smart piece of technology in the Calix BATMn Reactor that is really well matched to the fines concentrate feed coming off the back of our flotation plant. It has industry-wide implications because the effect of flotation is only going to grow within our hard rock industry over time. Flotation is a key tool to maximize the recovery of lithia to concentrate, in which case, more and more operators are going to apply flotation for the purpose of maximizing the value in the resource. However, Andrew quite rightly pointed out, that represents a challenge in conventional kilns. The beauty in the Calix BATMn Reactor is its ability to discreetly calcine a fine particle in a very selective manner and incredibly efficient with the application of an electric-fired kiln. Of course, bolt-on renewables. All those things combined, we think makes for a very, very powerful tool. Really pleased to be working with the Calix team. Thanks very much, Andrew. Hand over to you. Thanks, Ken, really appreciate it. We'll go to Phil, I guess. Any questions? Absolutely. No. Thanks, Andrew and Michael, and huge thanks to Ken again, because this is your holiday time that you've taken out to join us today. Look, there might be just a couple of quick questions we could take, Simon, on this one. Yep. This relates to the whole line of sustainability processing. Do you intend to compete in all of these markets? It seems like a widespread and risky project. The answer's yes. Yes, it's a widespread. Risky? I don't think so. I think technical development to commercialization, we're getting pretty good at. The opportunities are just too big and the need is too great to not follow all of these that we've talked about today. I haven't even released Mark and Matt on you with the skunk works yet. We're very ambitious, and we're very driven about what our technology can do. Phil, just an extension of that. It might be worth expanding on the restructure of the business in terms of addressing these markets, and why we are not stretched too thin. Exactly, Simon. The structure that we talked about at the front of the presentation, which was focused our line of business, is really about giving appropriate focus. It's not like Darren and I, who some of you may have met on investor presentations, trying to do it all. Today is about meeting each of the line of business heads that are responsible for developing, and in detail of managing these different lines of business. As these lines of business develop into bigger businesses, we may have to split a little more out in terms of lines of business. I'm very comfortable at the moment with the additional resources we raised at the March cap raise, with the way that these lines of business are now starting to really focus and accelerate towards commercialization. Thanks, Phil. Another question. Can you talk to the pipeline you have in place with other lithium opportunities outside of Pilbara and inbound interest levels from other spodumene players? There is a lot of inbound interest. I think the announcement sort of stirred that up. Our agreement with Pilbara is to co-develop this technology for the industry. The joint venture that's talked about there, if all successful in the scoping study, the idea is that we co-develop this technology for the industry. Yes, there is inbound interest, but our partners at the moment are Pilbara. The intention is that it's for the total industry. Just final question, Phil. Will Calix give priority to lithium processing or its own battery materials? The answer's both. You haven't even seen the battery talk yet, but it's about some really interesting stuff we're doing in lithium manganese oxide. Lithium is front and center in our battery development right now. Yeah, both are important, and for obvious reasons. Perfect. Thanks, Phil. That concludes the Q&A segment for that one as well. Fantastic. Thanks again, Andrew, Michael, and Ken especially. We’ll see you later. Enjoy your holiday, Ken. Pleasure, guys. Thank you. Thanks, Phil. Pleasure. Thanks, Phil. Okay. Thanks all for those who've made it so far. This next section is really quite an interesting section. Again, highly prospective, we believe. Will take time. Biotech is an interesting space for us. I'd like to introduce Rob Van Merkestein, and our Chief Scientist, Mark Sceats, both of whom are working very closely in this biotech space for us. Without further ado, I might hand over to Rob to run through the presentation with a few interjecting comments from our Chief Scientist, Mark. Thank you very much, Phil, and hello all. I'm Rob Van Merkestein, and I'm the leader of the Calix biotech line of business, and with me, of course, is Dr. Mark Sceats, co-founder of Calix and our Chief Scientist, executive board member, and frankly, the genesis of many of the good ideas that Calix are pursuing. Over the next 20 minutes, we hope to provide you with a better understanding of the drivers for our biotech business, our objectives, our plans, and our progress to achieve these. Why biotech? Experts have been warning us for years that our world is well and truly due for a global pandemic, but for most of us, it came as a great surprise, along with a substantial amount of disruption, pain, and suffering. It's instructive. Along the way, we've learned some new words that are pertinent to our biotech business. Words like variant, which is another word for a mutation or even evolution. We've also learned about resistance. I was reluctant to raise the COVID pandemic, and I do so only to point out that the concept of variants, mutation, and the development of resistance is not just a viral thing. It really is a feature of any living system, including pathogenic microorganisms or just otherwise troublesome microorganisms. Calix knows that the materials we make are bioactive. What that means is our materials have an effect on a living organism. What we're doing with biotech really is we're seeking to leverage this bioactivity in applications as a partial substitute for a conventional treatment where emerging variants are becoming resistant to those chemical treatments. Equally as important, the unintended consequences of these conventional treatments are really becoming unacceptable to our society. The biotech line of business is currently focused on developing new products for three critical applications. Crop protection, where we seek to improve the safety, sustainability of food production. Advanced coatings. We’re seeking to develop and integrate our active to produce more environmentally friendly marine fouling and anti-corrosion control coatings. Finally, we see great opportunity in human and animal health as a pharmaceutical or veterinary medicine. In general, within Calix and biotech, our approach is to do some work to convince ourselves, really just the internal proof of concept, and if that’s successful, then we get serious and we double down our efforts, and we do this internally, but frequently by collaborating externally with experts. They can be academia and commercial partners. We always engage with market leaders and commercial market leaders, where the objective really is to license our technology. In general, our preferred position is to continue to manufacture our materials. In terms of materials and bioactivity, right now, our materials are based on magnesium minerals and their derivatives, and this is great. The reason is that magnesium oxide and hydroxide are intrinsically safe. Safe to us, safe to animals, safe to the environment, non-persistent, non-bioaccumulative. Arguably, we don't get enough magnesium. Chemically, our materials are identical to milk of magnesia. Why are we excited? It's the physical form of our materials and what this means. Our materials can be classified as a nanoform. What does this mean? We take magnesium minerals from the ground, and we grind them more or less to the size of plain flour. Nothing special. We then calcine these materials to produce magnesium oxide and derivatives that are also the size of plain flour. The nano bit refers to the crystal grains within each of these particles that we produce. What you can see here, hopefully, is an image. It's a high-resolution electron microscope image, and it's a close-up of a single flour-sized magnesium hydroxide particle, which happens to be the active in our agricultural product. What you're seeing here is the particle is an aggregate of very, very small nanocrystals. These nanocrystals are like dinner plates. They're wide across and very thin. The width of these plates is about 100 nanometers, and their depth is around 25 nanometers. For scale, the edge of a very sharp knife is in the order of 1 micron or 1,000 nanometers at its thinnest point. Our crystals are very small. The smaller your crystal, the higher your surface area, and as a consequence, our materials have very high surface area. In terms of bioactivity, the nanoform, the high surface area, and the small particle size are really fundamental to our bioactivity. Why is that? Oxygen reacts at the surface of our nanocrystals to produce reactive oxygen or ROS. ROS is a key component of many immune system responses. It's a necessary and natural part of life. Humans, animals, and plant immune systems naturally produce ROS to fight off infections, and for very complex reasons, one of which is that ROS directly inhibits many pathogenic microorganisms. Further detail on how we seek to exploit the ROS that's produced by our materials in three key applications. Firstly, agriculture. We've been working with bioactive materials in agriculture for nearly six years, really what this slide is all about is providing an update on where we are. Firstly, proof of concept. We're in our nearly 6th consecutive year of efficacy field trials, toxicology field trials. There is no question that we have broad-spectrum antifungal and also anti-pest efficacy on a number of very common problematic crop pathogens and pests. Regarding proof of concept, we've now our first distribution license in place in the EU, and our products are already in market. In terms of the value proposition, it's a function of a couple of different things, but all related to a reduction in the use of toxic pesticides. That can be done at the grower's choice, or it can be forced upon him when regulators ban active substances that in some cases have been using for many, many years. Ultimately, it's to increase the safety, productivity, and sustainability of the way food is grown globally. In regard to commercialization, as I said, we've been working for nearly four or five years now, going through a very arduous process to have our material registered by the Australian regulator. We are hopeful and expect to achieve that registration, allowing it to be used in agriculture in the calendar year 2022. It's also very important to point out, in fact, that we are, I think, well progressed in negotiations for our second license, in this case, a global license with one of the top four crop protection majors globally. Where are we however, now? We are in market entry stage in the Netherlands. The drivers for the sort of product for our bioactive materials are as follows. The Netherlands, a global agricultural powerhouse, the world's second-largest exporter of crop. A leader in sustainable agriculture, and many of their crops are highly susceptible to fungal pathogens. In 2020, the EU advised that they would be banning a product called Mancozeb. It's a fungicide. It's the global go-to fungicide because of its broad-spectrum functionality. Its use is somewhere in the order of 200,000 tons per annum. It's also been identified as an endocrine disruptor. As I said, it's been banned in Europe already. It cannot be used after this year. It's in review globally, in the U.S., in India, et cetera. Even if it's not banned, any country that continues to use Mancozeb cannot, in future, export to countries where that Mancozeb ban is in place. Lots of reasons. Mancozeb was seen over the last 50 years as indispensable and a substitute is urgently required. This graph really shows the effectiveness Well, this graph shows the results from a field trial undertaken a couple of years ago in the Netherlands, in this case, on field onions. We're really trying to evaluate the ability of our materials to substitute the Mancozeb product in. The disease in this case is Peronospora destructor, otherwise known as downy mildew. It's a terrible plant pathogen. It can rip through an onion field overnight and destroy the crop. There are really good reasons to look at crop protection. As you can see in the green line here, what this green line shows that without treatment, the severity of that infection in the onion field starts from very low levels initially, and then progressively increases to a point where conditions become conducive to an explosion in the disease. That is a function of both temperature and humidity, at which point the disease takes off, in this case, 50%. Like I said, it's quite easy to lose 100% of your crop effectively overnight. The red curve here is the sort of disease suppression or control that can be achieved with the current grower standard, which is a cocktail, if you will, of fungicides that are applied at different times, to control the disease. The key thing about the red curve is that it fundamentally relies on the Mancozeb active. Not an option in 2022 and beyond. The effect of our material can be seen in the solid orange line, which is where our material was added to a multi-active program, as a substitute for Mancozeb. Although the degree of control that was achieved is not as great as Mancozeb, in this case, it was still sufficient to keep the level of the disease below the level that became economically damaging to the farmer. Effectively, he could still produce the same amount of crop and crop of the same quality. That is where we are in regard to agriculture. In regard to marine coatings, what we're really trying to establish here is the potential for the use of our actives as an additive into a conventional antifouling marine coating. There are quite a few different things that are happening in parallel. What we know, of course, again, starting with the proof of concept, we've had to convince ourselves. We have completed a 26-month exposure trial to assess the effect of adding our magnesium oxide powder to an in-market benchmark coating, and to see what effect that had on the antifouling properties of that coating. If I can draw your attention to the two images on the bottom left, which you can really see here are some quite profound visual differences. The simple addition of our powder to this in-market product substantially reduced the degree of fouling. That is, I think, a pretty compelling proof of concept. What are we doing now? We are working with large end users and large manufacturers of antifouling coatings. The value proposition that we've put to both of those is that the potential to reduce the maintenance costs by increasing the frequency at which you have to remove your boat and apply a new coating, and potentially reduce the content of effectively environmentally toxic biocide, in this case copper, which is effectively the current go-to biocide used in marine fouling. The value proposition for a manufacturer is to reduce input costs by substituting an expensive copper input with a less expensive magnesium oxide input, and to assist them with their regulatory compliance because copper is a biocide and is regulated in the same way that pesticides are regulated. Where are we? Working with manufacturers and end users. If I can draw your attention to the images on the bottom right. What you can see here are four panels. One is untreated and three, they're all the same, they're three replicates, where the copper in a conventional antifouling coating has been either partially or fully substituted with magnesium oxide. Each of these red panels contains three vertical strips, which are labeled one, two, three. Two, is the in-market coating as is. This is what you could buy at your boatyard today. On the left and on the right. On the left, strip 1, you can see the result where the manufacturer of this coating, in fact, has reduced the copper content by half, and added the equivalent amount as MgO. The strip on the right is where all of the copper has been substituted with MgO. We are at three months exposure now at Williamstown in Port Phillip Bay in Victoria. What we can basically see here is that in all cases, where a coating has been applied, we see mild fouling. In the untreated panel, we see a lot of fouling. There is very high fouling potential within this water. The fouling that's evident is mainly scum. It's not of great concern to boat owners because any movement and this scum will naturally just slough off. There are no secondary or tertiary colonizers apparent. By that I mean tube worms or the scourge of shipping and recreational boating globally, which are barnacles. In essence, what we see is equivalent fouling across all three panels, albeit it's early days. It's very promising. Finally, the other area of interest within Calix is pharma and veterinary medicine, where we seek to evaluate and ultimately apply our bioactive materials for human and animal health. We are at very early stages here, what you would say is still in the proof of concept stage. So far, we have very promising results. We have demonstrated, or we, that is independent tests have demonstrated, that our materials, our bioactive materials successfully suppress antibiotic-resistant and highly pathogenic bacteria, Staphylococcus aureus, otherwise known as golden staph, becoming ubiquitous hospital and community infection, some quite profound and serious implications. Our materials suppress this. Greater than 99% suppression at a dose rate of 1 gram per liter. These are in vitro tests, so they're not real world tests. Similarly, with E. coli and with Pseudomonas, all gram-negative or gram-positive bacteria, again, we see greater than 90% suppression, which is otherwise put as the MIC 90, which is the minimum inhibitory concentration required to achieve a reduction in the proliferation of the bacteria by 90% or more. Very promising preliminary results of the effect of our bacteria, of our bioactive materials on really quite serious pathogenic bacteria. Mark, do you have anything that you'd like to add or comment here at this point? I think my contribution really is to say, why does it work? The mode of action of the bioactivity is really important to understand, and we're working on that with global experts. It is important in another sense, and we'll talk about it a little bit more back in R&D, is this is the first material we've tried. There are many more to come. Indeed. Okay, look, I might stop there. We've gone a little over time, but Simon, if there's one quick question from the audience, we might see if we can deal with that, and then we'll move on to batteries. Great. Thanks, Phil. Just one question. Noticed the development of the marine fouling is down near the HMAS Cerberus. Any Navy contracts in the pipeline or development of this product? The Navy of course, is one potential huge user of this type of product. As we're able to disclose who an end user might be, we will do so. Well answered, Phil. That concludes the Q&A segment. Thank you. Excellent, t hanks, Rob. Mark, you're going to hang around for batteries, so let's keep moving. Congratulations everyone who's made it thus far. Nearly there. This is the last line of business. For this line of business, we've got a couple of special guests. Maybe I'll get Matt Boot-Handford to take it from here, and take us through the battery line of business. I'll get Pat and Oliver to introduce themselves, too, if that's all right. Look, hey, thank you all for attending this talk. My name's Matt Boot-Handford. I'm the recently appointed General Manager for R&D, and Deputy Chief Scientist. Probably most relevant to this talk is that I'm leading the battery materials development program at Calix. My background is chemistry, chemical engineering, material sciences. Before joining Calix, I spent the best part of 10 years working out of Imperial College in the U.K., completed my PhD, acting Head of the Energy Engineering and Carbon Capture Research Group. Moved to Australia at the beginning of 2019 to join Calix as the R&D Manager for batteries in Calix. Also on the call is Mark Sceats, Co-founder, Executive Director, and Chief Scientist, who was introduced, I think, in the previous talk. I'm delighted to be able to also introduce Professor Patrick Howlett, one of our key research partners on the battery materials development program at Calix, who's working with us on a number of R&D projects. Oliver Gross who's the industry expert, who's been advising the battery materials development program at Calix since late last year. If I can hand it over to Pat maybe first. Hi, everyone. Yeah, I'm Patrick Howlett. I'm a researcher at the Institute for Frontier Materials at Deakin University. I've got around 20 years of research experience investigating advanced batteries. I guess been working with Calix for the past several years working on this project we're going to hear about today, developing some new Australian-made cathode and electrode materials. As part of my role, I'm also the Director of the Battery Technology Research and Innovation Hub, or Battery Hub. It's essentially a battery scale-up and prototyping facility, which is focused on engaging with industry and demonstrating new battery technologies and new battery materials. We've recently received an AUD 9.5 million grant from the Victorian Government to scale up Battery Hub, so Battery Hub Two, which will be a much larger facility aimed at making larger scale batteries to demonstrate the new materials, such as the ones Calix are making. We're very excited to work with Calix on that. The facility will be able to make quite large battery cells, up to sort of 15 amp hour, to be assembled into battery packs for everything from, I guess, mobile phones through to stationary storage electric vehicles, that sort of thing. It's a pilot scale production facility. That's probably enough from me. Thank you. Hand me over to you, Oliver. Yeah, Oliver, yeah. All right. I guess it's my turn here. Hi, Oliver Gross, Technical Fellow at Stellantis, responsible for the global advanced technology and development in energy storage conversion systems. That's batteries and super capacitors. I have about coming on close to 30 years experience in the areas of batteries and super capacitors with a material science background. Began work predominantly actually in the materials area, the development, worked my way up through battery design, industrialization, and systems. Working here at Calix since probably the latter part of last year, focusing on looking at the materials, the processes, and really how's the best way to optimize them for electrochemical systems, for batteries, and understanding really what the true values and benefits of those materials are. We've had some pretty good successes. We're going to be going through a few little results today that show a little bit of the progress for the very first generation, the very first type of the materials, with more materials to come as we understand the processes can be applied to some of these other materials. With that, Matt, I'll get that back to you. Yeah, g reat. Look, I'm obviously going to go through all these slides, but if there's anything that I miss, please feel free to interject, and comment if you feel that that's needed. All right. I suppose start off by saying the energy revolution is here. As we as a global society need to transition away from fossil fuels as the primary source of our energy towards renewables, and other low carbon sustainable forms of energy, the need for efficient, low cost, and sustainable energy storage solutions such as lithium-ion batteries will become increasingly more important. I suppose regardless of where you look, demand for lithium-ion battery technology is growing and is predicted and expected to continue to grow fast over the course of the next 10 to 20 years. This will be driven by increasing demand for EVs, and more and more so stationary energy storage solutions, both domestic and large grid scale batteries. At Calix, we're developing an efficient, low cost, low carbon manufacturing process to deliver high performance lithium manganese oxide cathode materials. At the heart of this process is the Calix Flash Calcination technology, as depicted here on the left-hand side of this slide. We obviously have gone through this before, but as with all the other processes that we're developing at Calix, we start off by dropping our raw material in a fine powdered format. In our case, it's a manganese carbonate down the indirectly heated tube. As the powder is heated, the bound gases, in this case CO2, are released to yield a highly porous, high surface area, manganese oxide intermediate product, and a concentrated stream of CO2 at the top. We then take this manganese oxide intermediate, and we add lithium in the form of a soluble lithium hydroxide form solution processing method. Then we sinter it and anneal the material at around 800 degrees C for two hours to yield the final lithium manganese oxide product. By using the high surface area and porous intermediate manganese oxide product and adding lithium via a solution processing methodology, we get really good contact between the manganese and the lithium. It's the LMO structure, the lithium manganese oxide, LMO structure, forms quickly. That therefore we're reducing the amount of time needed to sinter the material, to anneal and form the phases, from around about 12-24 hours, which is typical of a conventional LMO production process, is down to about two hours. This will contribute to a significant reduction in the cost and energy of the process. As you'll see here, Calix's materials are also presenting a unique structure, which I'll discuss in a little bit more detail in the next couple of slides. Phil, do you want to change over slides? Great. I suppose at this point, I should probably mention our research partners at Deakin University and Battery Hub, and specialist chemical manufacturer, for Molecular, and who we're working closely with through several funded research projects. Most notably the Australian Government-funded Cooperative Research Centres Projects for advanced hybrid batteries, that Calix leads. Of which the primary objective is to develop our cathode manufacturing process and the high-power cell capabilities and formats that will exploit the Calix cathode materials. Much of the work that you are going to see over the course of the next couple of slides has been undertaken at Deakin and Battery Hub. I am just going to use the next couple minutes now just to run through a quick recap on some of the results that we have presented previously. Here you can see on the left-hand side of this slide, you will see what we term a Ragone plot. This shows specific energy of several LMO cathode materials that we have tested in half-cells at Deakin as a function of their specific power. We use a car analogy. The specific energy on the Y-axis refers to the size of the fuel tank. The specific power refers to the rate at which you can deliver that, the energy can be dispatched or charged. We're obviously aiming for a chemistry that can retain as much of its energy when charged and discharged at high rate. We see this with the Calix LMO as shown in this plot. We're seeing exceptional rate performance surpassing the performance of its commercial competitors and similar in performance to the best lab-scale LMOs that are prepared using exotic chemistries at the benchtop. We believe that the superior rate performance, as demonstrated by the Calix cathode material, relates to its unique structure. As you'll see from these high magnification scanning electron microscope images, the Calix material presents a mesoporous multilayered onion-like structure. We believe this porosity provides the electrolyte with access to the internal structure of the LMO, facilitating rapid transport of the lithium ions, so that the distance then the lithium has to travel through the solid is much shorter than would be expected in the case of a conventional non-porous, low surface area material as depicted in the images to the left on this slide. I think it's also worth noting that the cathode material expand and contract as it accepts and release lithium during discharge and charging. This expansion and contraction can lead to the cracking and fracturing of the material, which is a common degradation mechanism for electro materials that leads to loss in capacity with cycle number and time. The porosity of the Calix material may accommodate this expansion and contraction, leading to a more resilient material that resists that cracking and pulverization. Okay, if we move on to the next slide, we'll see some new results from our testing at Calix and Deakin, in full cell. We've now tested our cathode materials against commercial graphite and LTO anodes, and we found that our materials continue to demonstrate outstanding rate capability and now importantly, stability. As you'll see in the figure over on the left, we've tested the Calix LMO in a full LMO/LTO cell with fast charging, discharging. Charging and discharging taking place over 15 minutes, pretty quick. Over quite a large number of cycles. I think we're now probably up to about 6,000 cycles with this cell. Particularly with this, we've seen no observable decay in the capacity, which is pretty remarkable, I think. I think for the context, just for context, the million-mile battery that Jeff Dahn and Tesla are developing require 5,000 cycles to meet the target. Again, here we have some high magnification scanning electron microscope images, the cross-sections. I think the Deakin team here have used a focused ion beam to mill away the surface of the cathode films to reveal the internal structures of our materials, and the materials before and after electrochemical cycling. We can see that the novel layered structure is preserved with no notable structural degradation observed. I think it's probably also mentioned as well, moving on to our electrolyte development program, I think it's important to recognize that the success of the Calix LMO will depend on its compatibility with the other componentry within the cell. Work is also underway on the development of next-generation safe electrolyte systems tailored to Calix's electrode materials. This work is being done through the CRC-P, which I've previously mentioned, but also through the Australian Research Council-funded StorEnergy Training Centre, as exemplified by this recent paper from our research partners at Monash University and also the team at Deakin, that was published in the high impact factor Advanced Energy Materials. If we move on to the next slide. As of April this year, we've begun working with the U.K.-based pouch cell developer AMTE Power and its partners, QinetiQ and MEP Technologies, who are undertaking a program of work to develop commercial format pouch cells and battery packs featuring the Calix LMO chemistry. The 1st stage of this program is now well underway, and we expect to have finalized cell design specifications later this year so that we can start to begin scaling the production of the commercial format pouch cells with the ultimate aim of delivering a 2 kilowatt-hour prototype battery pack towards the end of 2022. Over on the left-hand side of this slide, you'll see plots showing the rate performance and capacity retention of the Calix LMO compared to a commercial benchmark material. Again, in this case, we're working with commercially relevant cathode loading and formulations, up to 95 weight% cathode active materials of the LMO, and loadings up to 2 milliamp hours per square centimeter. Again, we're seeing superior, better capacity retention and rate performance for the Calix LMO, which is consistent with all the work that's been done previously at Deakin. On the next slide. I'm sure you're all aware that Calix raised capital early in the year to, amongst other things, accelerate the battery materials development program, and we're starting to put this money to good use. We've now set up the electrode coatings, coin cell assembly, and electrochemical testing suite to augment and expand our existing capability and capacity at Deakin. We're upgrading our laboratories at Calix to provide a dedicated fit-for-purpose and clean space to house the facility and the battery materials, R&D work, and characterization equipment. Finally, we're also growing the team, as exemplified by the two new positions that we're currently recruiting for, a process engineer to lead process flow development and scale-up, and a materials engineer to support the development, optimization, and characterization of LMO and, of course, our next generation of electrode materials. Just on the final slide. Here we're just showing our key milestones, deliverables. Essentially, we're currently on track. Progress is good. In terms of our LMO full cell performance, we've begun testing of commercially relevant cathode active materials as part of our pouch cell development program in the U.K. We've also tested LMO in full cell, in some cases up to 6,000 charge-discharge cycles at Deakin. In terms of scale-up, we've manufactured the Calix LMO in batches up to 10 kilos in size and are setting up equipment at the moment to allow production capacities of between 30-50 kilos. Optimization of the LMO continues and is ongoing. As I mentioned previously, the team at Deakin and Monash are developing tailored electrolyte systems for Calix electrode materials, and screening is well underway. Papers have been published. I think that concludes this presentation. Fantastic. You nearly brought us back on time, Matt, t hat was excellent. Just maybe before we jump to if there's any one or two quick questions, any final comments, I guess, from Pat or from Oliver on your thoughts on what you've seen in the results so far and where they could head? I can make a quick comment, I suppose. I guess the LMO results that we've seen, pretty exciting in terms of, I think, the rate of performance and the stability that we're seeing with those. I guess, as I mentioned, the Battery Hub 2 will have that facility. That facility's aim to be running it in May next year. Unfortunately, we weren't quite ready to do the scale-up of the batteries that is currently being done by AMT in the U.K. We'll have that capability, I guess, next year to do that in Australia. As far as I'm aware, from my background, the batteries that we've made in that will be the first fully developed cathode materials or electrode materials that will go into a full-scale battery of any Australian-produced electrode materials. That'll be the first example of a truly Australian cathode-based electrode. I guess the other thing that I think is really interesting is the breadth. This is just the first example that we chose in terms of the manganese oxides to scale. There's a whole range of other really interesting electrode materials that this process can be applicable for. It's very exciting, I think, from that perspective. Yeah. The main thing that I would add is the scalability that was going to be coming with the next phase, looking at the ability to produce considerably more of this material, the consistency that's associated with that material. We've learned an awful lot, and quite honestly, a lot of the things that have been discovered is how pretty robust that material is in terms of those processes. Really, it's just a matter now about learning how to put that into a cell. You always have that learning curve, but once you get that nailed down, the rest is about consistency and scale-up. Very exciting. Excellent. Okay, Simon, are there one or two quick questions? I think that was pretty comprehensive, Phil. We're all good on the question front. Fantastic. When you say comprehensive, I'll chip Matt a bit more later about the level of scientific language he's using. Okay. Okay. Now, just in case we still have anyone on the line, this bit's the fun bit. This is the skunkworks. Just when you thought that we couldn't be doing much more, there's always a little bit of the company on a Friday afternoon that does a few little specials just to see what might be there coming forward. Of course, our Chief Scientist and Co-founder, Mark, leads our skunkworks piece of work, and joined by Matt now, who's obviously General Manager of R&D and recently named Deputy Chief Scientist. Mark, do you want to take us through the skunkworks with Matt? I would love to. Thank you, Phil, good morning or good afternoon, everyone. There is something deep about our technology. It starts out with a kiln. That kiln could not have been conceived of before 1970, when new steels became available that could transfer heat at high temperature. Kilns have been around for 5,000 years. They have been perfected, majority of them emit much carbon. Our opportunity lies in dealing with the processing using a new kiln, which is environmentally friendly. We have seen also that a key capability is making new materials that have never been made before. We have seen it in every of our activities that we engage in. There is a huge amount to be done by Calix, by others, associated with the evolution and development of our technology. Probably it's best that we quickly move to looking at this slide here, and I'll ask Matt to introduce the new stuff. Very quickly, Matt. As in catalyst coatings, batteries, and stuff like that? Yeah. Look, I think one of the unique features of the materials that the Calix technology produces is its very high surface area, and that is something that It's pretty exciting in the catalyst world. I think the surface is the active part of any material, and its ability to activate molecules and compounds for a whole host of different applications is quite exciting. In the space of things like CO2 utilization, hydrogen production of platform chemicals, I think it's something that we're only just starting to touch on as a really exciting space for Calix to work through. I think Mark's touched on it. We've got a periodic table available to us of all sorts of different materials that we can look to calcine and generate potential catalyst materials from. That's quite an exciting aspect. Yeah. Thank you, Matt. I'd like to move to water. In our introduction to water, we talked about treating discharged water. The new area that we're looking at is to go into fresh water treatment, how to make potable water. I think Bill showed that he can actually basically heat our material. It is safe. Can it be used for fresh water treatment? There are many chemicals, complex processes that go into a municipal water treatment plant. We believe that there's a capability of using our material in the water treatment plant, where the benefits flow not only in water treatment, but through the whole system. There's an opportunity there. PFAS are polyfluorinated alkanes that were used and developed for applications in firefighting. Unfortunately, they're toxic, and there's big issues in water treatment plants to deal with them and in soil treatment. Fluorides are a problem, particularly in potable water in Asia. We know from initial work that's been done that our material captures PFAS and fluorides. We might also be able to destroy the PFAS using our process techniques. There's a glimpse of what might happen in water. That's not trying to project that we will do. We've got R&D to be done, it's a glimpse into that future. In CO2, what have we learned? An enormous amount. In everything that we've done, you've heard today, you'll always find that we're working with international experts in academia, thought leaders in industry, and our own experts who are brilliant in Calix. That's a powerful grouping of people that can accomplish many things. It all comes down to the fact that we work in one area, that is the calcination. For our technology to be adapted, we need to work with people that fill in the blanks and do all the hard work of integrating our technology and our materials into new products. The CO2 piece has extensions. We've learned that the material we make, the lime, is incredibly reactive. Under appropriate conditions, it can be used to capture the CO2, say from combustion systems. That's been well established previously. Our process is so reactive, it's different, and we're actively looking at decarbonizing shipping because there is a need to continue to use affordable fuels that unfortunately otherwise would be combusted to give off CO2. Question? Can we use our very active lime to capture the CO2 in the ship? Sustainable processing. That is incredibly interesting. You see the transition. We've gone from a vision of capturing CO2 from calcines to other applications where CO2 is not the issue. We are learning to use renewable power and hydrogen into our reactors. Well, if you look at every process that is industrially relevant, usually there's a heating process involved. A Calix calciner could, with a glimpse, be used in pretty much everything we make. That's a bold statement and all of that, we're seeing it in mineral processing, the spodumene, w e're doing it. There's that little story in the background. The Calix technology was enabled by steel. One of the biggest polluters that is going to be hard to deal with is mitigating CO2 emissions from the production of steel. Can we help there? Maybe. These are very interesting topics for us. Coming back to batteries, Matt has talked about the lithium manganese oxide. That's just the start. I'll turn over to Matt again to fill in the potential. Well, this is it. We've spoken all about the lithium manganese oxide, and this is our starting point. Our ultimate objective is to develop a sort of chemistry-agnostic platform technology for the manufacture of active electrode materials and potentially other battery components. There's a whole host of different chemistries that we are starting to explore now, and we've got programs in place, and we're bringing on the people that we need in order to focus on the new chemistries. We're referring to our generation 2 chemistries, things like lithium iron phosphate or lithium nickel manganese oxide, just to name a few. We're also looking at the next generation post-lithium-ion batteries, so things like sodium-ion batteries, as an example, and also things like lithium metal, sodium metal batteries, and solid-state batteries is another program of work that we're starting to explore and understand how we can integrate Calix battery materials into some of these electrochemical devices. Thanks, Matt. I think that just illustrates that we can get there by working with great global networks. If I had to mention all thee... Yeah ...research organizations and industries we're involved in, we'd be here for another half hour trying to explain that, and I can't do that. That is how Calix can work. We can actually introduce our technology into many applications, many industries, by sticking to what we know best. Thank you. Excellent. Well, thanks, Mark, and thanks, Matt, for that glimpse into the future. I guess it is always interesting for people who are new to Calix to get their head around all the sorts of things that just a new way to heat stuff up can ultimately lead to. As you have seen today, and hopefully, especially in this last session, we're by no means finished yet with all the sorts of potential applications for the technology. Just on time now, very conscious and thank you all for your attention over a fairly long period this morning, and apologies it had to be in this format because of COVID and all those sorts of things. You've seen all of our leaders of our lines of business over the last few hours take you through what they're trying to achieve and hopefully what's come through is the passion they have, and the purpose that they have, and the ambition that we have with respect to making this Australian-grown technology. Tiny little company when I first joined it, I think maybe 18 people when I first joined it, but with huge ambition. Hopefully you can see why now. Just in terms of our outlook for next 12 months, again, this is just a summary of each of the lines of business and what they covered before, but just summarized into this last slide here. Most importantly, I guess, just signing off with respect to our purpose. There is only one Earth. Mars is for quitters. Hopefully, you can see why you've got a team here that's really working hard for our shareholders to make the world a better place and make a great business. Simon, any last quick questions? Happy to take a few while we're here. Yep. Phil, there's a number of statements in terms of how great the presentations and passion has been, so I won't read through them. One question was, "Great presentation on team. Extremely male dominated though. Is this indicative of the company culture?" I'll let you address that one, Phil. That's absolutely a valid observation. Audrey led off. She's a formidable part of our team and in leading the sustainability team and all the things that we need to do with respect to our Sustainable Development Goals. Diversity is one of those things that we need to improve upon. We've got a lady on our board now. Unfortunately, Emma couldn't present. She's in the U.K., she heads up the whole of our engineering function, and along with Audrey. We're trying to improve, I guess, the gender diversity of the company. Suffice to say, science, engineering, et cetera, have tended to be male dominated, we want to change that. We want to really improve the diversity. Point well taken, we are doing something about it. Phil, it's Darren here. Can I just add some further color? Just to that point, in the last kind of two years, I think two years ago, 10% of our workforce was female. We're now up to, at 30th June, it's 23%. Hopefully you can appreciate we're taking active steps, as Phil said, to address the balance. Thanks, Darren. Next question from Hamish Murray at Bell Potter. "First, I'd like to congratulate Mark on the contributions his work is likely to make globally. Are there any obvious materials that could provide a similar breadth of exciting opportunities as magnesium, or are the materials likely more singular in their applications? Magnesium, yes. It's on our list of things to do. My collaborator that founded Calix was involved in dealing exactly with that in Queensland. That was part of his drive as well to ultimately lead us back to making magnesium metal, and the connection that we're making with the aluminum industry is also very important for that. It's still in skunkworks, I have to say, but we will get there eventually. Great. Thanks, Mark. Sorry, Simon, you up? I was just going to say, Phil, that concludes all of the Q&A. For those that have tuned in or have missed some of the presentation, it has been recorded, which will be available in approximately 30 minutes, just to let you know. Phil, I'll pass it back to you for closing remarks. Excellent. Thanks, Simon, look, again, thanks for everyone who tuned in, especially those who have put up with the whole presentation, which has gone on, as we sort of predicted, sort of to 12:15, maybe a few minutes over. Again, just reiterating, this is the first time we've really tried to showcase our team, and showcase what it is that they do and why they do it, and hopefully it's been of value to you because it's great to have a great business and report numbers and all those sorts of things. Really, it's only once you get to know the team that you really understand what a business is all about. Hopefully that's really helped people today understand who we are. Thanks, Phil, and thanks for all the panelists for joining.