Good morning, and welcome to the PYX Resources Limited half-year results investor presentation. Throughout this recorded presentation, investors will be in listen-only mode. Questions are encouraged and can be submitted at any time by the Q&A tab situated in the right-hand corner of your screen. Just simply type in your questions and press Send. The company may not be in a position to answer every question it receives during the meeting itself. However, the company will review all questions submitted today and publish responses where it is appropriate to do so. Before we begin, I'd like to run the following poll. I'd now like to hand you over to Oliver Hasler, CEO. Good morning to you, sir. Good morning. Thank you very much. Good morning to everyone. Good afternoon here in Palangka Raya, Central Kalimantan, Indonesia. What you see in my back is the Kahayan River, which is the largest river in the region. Before we start, and I'm sure you're used to, I will assume that everyone has read the disclaimer. As you're probably aware of, and for those that have followed, PYX Resources, we're a mineral sands company. We have a very large resources. We have a first one that is called Mandiri, which we started with the IPO on the National Stock Exchange of Australia in February 2020. Last year, we acquired a second tenement, and today we're the second-largest producing mineral sands company based on zircon resources. As I mentioned, we're listed on the National Stock Exchange in Australia since 2020. We're a relatively young company with just over two years in operation, and since November last year, we also listed on the main board of the London Stock Exchange. We're in production in the Mandiri tenement since 2015, so we're totally licensed for extraction, production, and export. Mandiri is known for its superior quality. In general, Kalimantan sands are very white. We have a very high assemblage value, which is 3x-5x higher than the one of our peers of $1,680 per ton. The weighted average of the price of our minerals in the grounds is extremely high, which that's the result because we're basically a zircon mine with byproducts of rutile and ilmenite, while most of the mines are ilmenite mines with byproducts of zircon and rutile. Zircon today sells at over $2,300 per ton and ilmenite at $250. At the end, we have a very natural high margin. Timing for our project also could not have been better. The industry has projected for a very long time that there would be a lack of zircon, and since January last year, there is not enough supply for the demand. You have to remember that most of the world was still in the middle of a pandemic. The result of that is that we have increased pricing by over 128% in five price increases over the last 18 months. I'm very bullish about the market. Even if we add all the projects that are out there, I don't think that there is enough projects to compensate for the growing demand. We just announced on September 13 our results. We have pushed since the beginning of our project operationally to grow the volumes. Over a five-year period, we want to achieve 48,000 tons. To start with the production of byproducts, rutile and ilmenite, and to drastically reduce the cost by changing the third-party miners to our own extraction. The results today, we're very pleased with them. We have increased the revenue by 128%. This is the result of increasing our production by 163%, not only with the increase of zircon production over 20%, but also with the start of production of rutile in January and ilmenite in June last year. In addition to that, we have had very strong price increases of 92%. Between the volume increase and the price increase, we achieved a revenue increase of 128%. We achieved with that also. We're very happy to announce that just two years after the start of the project, we have a positive underlying EBITDA. All of this, the increase of volume, the underlying EBITDA where we are at a very strong bullish market, indicates and gives us the confidence that we have a very bright future and that we will continue to perform according to our plan. We're debt-free. We have increased our cash position to $7.7 million, so that's over $1 million more than what we reported at the end of last year. We continue to diversify our customers. That was a very good decision since the market has been fluctuating from Europe to China during the pandemic, back to Europe and the Americas at this moment in time. With this, we maintain a geographic diversification and also an industry diversification as a protection, natural protection to a crisis in the market. Sustainability has been a very important part of our project. Since the creation, we made sure that we built the project on a sustainable base. We managed the entire Global Compact program on a project called PYX Cares, built on five pillars, people, planet, prosperity, peace, and partnership. On August second this year, we were accepted by the United Nations Global Compact, which in addition to the project we already had, gives us discipline on how to build our project into the future. Projects we do, we are the only ones in the area that have done blood donations with the Red Cross, not only once but twice. We are participating in a sanctuary of orangutans. In August last year, I participated in the planting of 10,000 trees. We actively participate in rebuilding the drainage of the local school, training to our people, et cetera. We want to make sure that we participate in the growth of the local community. On this slide, you see that zircon is a wonderful material. It is used in all type of industries, well-known industries, a pigmentation industry, ceramic industry, foundry industry, and it's also part of innovative growth industries. It is a very important element towards the transition to carbon zero. The Australian government, as well as other governments, but the Australian government in December last year declared zircon, together with ilmenite and rutile, as one of the 24 metals and minerals critical towards the transition to carbon zero. Things done. The fastest-growing segment of the market, the zircon sales, are those innovative applications, which are cells for electric vehicles. They're used in nuclear power plants, solar energy, et cetera. This only makes me more bullish in predicting the future because of this growth in this innovative industry. If we look at the balance between supply and demand, the investment banks that follow us and our peers have all projected that there would be a lack of supply for the actual demand. This was delayed by one year, but started in January last year, as I mentioned. If we forecast the growth of the demand, this gap will only get worse in the future, will get bigger in the future, and will grow with a CAGR of 2%-3% every year. This pressure on prices will increase to grow. In general, if we add all the projects that are in the pipeline, there will be not enough to compensate for the loss of capacity as the major mines are achieving the end of their mine life, and with that, arrive to lower concentrations in the ground, and with that, lower productivity. This lack of supply in zircon has led to very strong price increases, as I mentioned in my introduction. We expect the same to happen with rutile and ilmenite, or titanium feedstock, in the future. Supply, the main market is China. The main supplier, the biggest supplier in the world is Australia, followed by South Africa. In both of these countries, they're reaching the end of their mine life. There's a very strong demand also coming out of countries like India, Europe, and Americas. This semester, we announced, in summary, a revenue of $10.6 million, which is an increase of 128% year on year. We had a positive underlying EBITDA. Again, we're just over two years within our project, so we're happy with that. It is according to our projections. We are cash positive and net debt-free, and we intend to stay so. Our sales volumes increased by 19%. That is because we increased zircon by 23%. Total production, which increased of ilmenite and rutile was 163%. We did not sell rutile and ilmenite in the first semester. We're waiting for the export license. We should do so in the second semester. Our growth in zircon prices year-on-year was 92%. In December, just so that you have an idea, in December 2019, we were selling under 1,500, $1,400 per ton, and now we finished at the end of June at $2,766. Our demand continues to be at record heights. We have no real inventory in zircon. We pretty much produce for the incoming orders and are working on a zero inventory basis. Here you can see our P&L year-on-year. As I mentioned, a very strong sales revenue. The negative EBITDA is mostly because of share options which have no cash impact. It's mostly that. We believe that once we have finished that at the end of the year, we will have applied most of the share options. The underlying EBITDA is positive as mentioned. If we compare year-on-year, you will see the growth we have in production since we grow from 3,500 tons to 9,200 tons. Our sales volumes are, as I mentioned, only zircon, so we have an increase of 19% with a very strong revenue increase and a strong improvement of our underlying EBITDA mainly because of the increase of revenue. As far as our consumption of cash, we have a strong increase in our balance sheet, mainly because we had an injection of $4.4 million of cash from an institutional investor in the United States. The operation consumed $1.9 million, which is mostly the result of increasing our inventory position. Obviously we have almost $1 million in CapEx, but that is due to our investments in the factory, but also on the exploration side, on the excavation side. We're using that to do our own extraction, which will start now in the second semester, which will allow us to have a drastic reduction of cost and with that increase in our EBITDA. We sell worldwide, so we have important customers in China, India, but also Germany, the U.K., France, and Spain. Most recent new customers in Brazil, Mexico, and the United States. 100% of our sales are done in U.S. dollars and all of it is on a LC basis. We really have a very strong protection and a strong currency. If anything happens with the Indonesian rupiah, which has been very stable over the last years, even now, then that will only act as our benefit because it would boost our costs, like, and keeping the sales. The big differentiator of our mining business in Central Kalimantan compared to the rest of the world, you can see in this chart. On the X-axis, you will see the in-situ zircon grade, so the percentage of zircon in the ground compared to the other publicly traded miners. You will see that Mandiri has a concentration of zircon of 4.3%, and the second mine we acquired three point three. While most of the mines in the world have a concentration of 0.5%. The titanium feedstock concentration in Mandiri and Tisma is just underneath the average. We have to remember that the pricing of zircon is much higher than the one of titanium oxide feedstock. The differentiator is the quality of concentration we have, which leads to the assemblage value, which is the weighted average of the price of the minerals we have in the ground. You can see that because of this very high zircon content, we have an assemblage value and natural margin that is 3x-5x higher than the other mines in the world. If we compare, and I think it's easy to understand that the valuation of a mining business depends on the size of the resource. How big is the total resources? On the other side, the assemblage value. If we have a huge resource with a very high assemblage value, it will increase the valuation. If we compare PYX's, and it's easier to see on this page. No. If we compare PYX's valuation to the other mines in the business, we will see that we're very strongly undervalued, or we still have a very high growth potential. We're followed by three investment banks, one, Cedrus Investments in Hong Kong. The other one is WH Ireland in London and VSA Capital in London. The three of them project based on the actual conditions, an increase from triple to four-fold from where we are today. That is without considering. That's based on the actual production. That's without considering the potential increase in volume and the drastic reduction we can do in costs. We have been very happy with our results so far. We have had a drastic increase in share price since we started, and we have to remember that we started on the 25th February 2020, which is when COVID really started. We couldn't access the country for over a year, and we still were able to perform according to our plan with very strong share price increases. Even the people who follow metals, you saw the huge crash the metal market had in June this year. At the end of June this year, which depending on who you read, was the biggest crash since 2008 or since the big recession. Mineral prices did not change in price. They continued to increase, and that's basically because it's an off-trade mineral. 100% of the trade is real trade and does not have speculation. If we compare our results to the rest of the peers, we have outperformed, or we are in second place. We have outperformed most of our peers since we started with the company just over two years ago. Here you can see the performance of our share price, since 2021. All in all, operationally, we're performing according to plan. We are increasing our volumes. We are starting to produce byproducts of rutile and ilmenite, and we have the potential of drastically reducing our costs. Strategically, the same way we acquired Tisma, we are constantly looking at new opportunities to increase our mining business in Central Kalimantan with the ultimate intention to consolidate the business in this area where we're the only industrial player. With this, I would be happy to answer any question you might have. Oliver, thank you very much for your presentation. Ladies and gentlemen, please do continue to submit your questions just using the Q&A tab situated in the top right-hand corner of your screen. Just while Oliver takes a few moments to review those questions submitted today, I'd like to remind you a recording of this presentation, along with a copy of the slides and the published Q&A, can be accessed via your investor dashboard. Oliver, as you can see, you've received a number of questions throughout today's presentation. Could I just ask you to read out those questions and give responses where it is appropriate to do so, and then I'll pick up from you at the end. Absolutely. You reference the diversification in end users for your products. How are you looking to achieve this, and can you give me examples and the potential addressable market? Good question. In the end, the total zircon market today is 1 million tons, and as you saw, we're just producing 3,500 tons. The easiest strategy would be to sell to one single consumer. In China, the biggest one consumes 168,000 tons. In Italy, 124,000 tons. It would be very easy to sell to any one of these. They all are interested to buy from us. They know the market. It needs demand, everybody wants to do business with the new player. We started selling very heavily in China. Before the pandemic, with our diversification, we increased in Europe. We're selling in the U.K. to a company that does high-tech applications where they use zircon from dental applications to car rings or whatever is in the middle of the wheels in the cars. What's in the middle of the wheels is done out of zircon. They also use it for combustion engines. In France, they use it for the aerospace program, where you cover the shuttle with zircon because it has a very high melting temperature, very strong corrosion resistance. It's not magnetic, it's not electrically conducting. In Spain, it's very important. It's probably the biggest consumer in Europe because of the very big ceramics industry. In Germany, they use it for the foundry industry. In Brazil, it's mainly used for the ceramics industry. In Mexico, it's used for the foundry industry. In the U.S., it's used for military applications. In China, it's for all, with fused zirconia, mostly for high-tech applications, but they also use it for covering of shovels of jet engines. With that, we follow in which countries we want to sell in. Sorry, in India, which is a very important consumer, it's mainly for the ceramics industry. We want to make sure we go to different countries and go through different end users in a market that's pretty transparent. We know who the different players are. Our agent used to be the agent for Iluka, the biggest player in the world. With that, we know and have access to the different worldwide consumers. When will Tisma become operationally? Today, our project is totally focused on Mandiri. We're using the resources that we have raised to increase the capacity in Mandiri and then to grow organically. Today, the board has to take a decision if we want to continue to focus on Mandiri or, based on the actual market, if we want to accelerate our project and then also start on Tisma. For this, we would have to look for new investments. We haven't taken the decision. It's a very interesting decision because of the high margins and the needs in the market. So if we find the right players or the right investors, it's something we could do in the short term. Could you tell us which is your average cost of production at the moment? Once you've brought this in-house, what kind of percentage reduction in cost do you expect to achieve? Yes, John. Our actual cost of production is about $1,200 per ton. This is mainly because we acquire through local third-party contractors, which are relatively expensive. We expect our cost to go down to $350 per ton, so it's a huge decrease. We have already tested the extraction equipment. The new equipment to bring this up to scale arrived a month ago. I just saw it over the last week. We are in the process of installing it, so I expect a very big decrease to happen in this semester. $350 per ton is in line with what our peers do. If we go through all of our competitors in Africa, they're all extracting between $150 and $250 per ton. As our plan in general, our numbers are very conservative. Any other question? Hi, Oliver. If you just scroll up. Yes. Yes. I'll just scroll up now. I saw I'm missing something. Perfect. Thank you so much. Could you please tell us about the PYX's roadmap to ramp up production? I appreciate what you have previously said about switching some production away from zircon into the titanium boost overall returns. Okay. We have increased our production capacity to 24,000 tons. Because of the nature of our mine, we will always produce more zircon than rutile and ilmenite. In the short term, this was an exception because we're picking up the tailings that have been accumulated over time, so we could produce more ilmenite. Clearly what we want to do is continue zircon just because it's the most expensive of our minerals and the other ones just as we extract. The idea is pretty much to produce at a rate over the next two years of 24,000 tons of zircon and about 1,000 tons of rutile and ilmenite. In the short term, this was different because we were picking up the tailings. As you can see, in the first semester, we produced 19,000 tons. We will produce over 18,000 tons, I mean, if we project the numbers we have today, and we have a production capacity of 24,000 tons. We are already planning to increase the capacity of the factory to 36,000 tons. We have ordered the equipment. We ordered additional 12 shaking tables, two dryers, and another two high-tension lines. Actually, the plant production is easy, and it's fast. It's all off-the-shelf equipment that we buy in China. What's the real focus and the secret to increase the EBITDA is the mine to extract ourselves, and as I mentioned, we finished the testing. We have brought the equipment. We brought a new trommel barrel. We're installing jigs and new sets of spirals and wet magnetic separators, and that should start producing over the next month. "John, given your good results, what are you doing to spread the word about your company, not only to retail, but to institutional investors, as your share seems to be significantly undervalued compared to prospects?" Oh, I am. I've seen over the last two years, at least 350 institutional investors which have invested in our company. I mean, the last one was L1. I'm seeing others. We have a lot of following from people that invested in companies I worked for in the past with very good results. I spend a lot of time. I was just on a roadshow over the summer in London. Very difficult time to do it because most of the investors are focusing on cash and are not looking for new projects. Yes, I spend a lot of time. I participate in most of the investor meetings from Mines and Money and 1-on-1, which are the big players in this business. "I appreciate that given the relatively short amount of time you have been on the market and other issues relating to equity rises. However, if you decided to raise more money in the future, please would you consider having a fundraising element for individual shareholders to support, the company? Well, the answer, obviously, is yes. If we decided, I'm very careful with my wording, as you know. If we decided to fundraise, at the end, there's two ways. Either I go to the market, and the fundraise would be very small. I mean, to grow and to start this mine is a number around $24 million, so there's hardly any dilution for the shareholders, but a very big upside. If I would find the right shareholders, and we would not need many for such an amount of money, then we could be taking the decision to go forward. I'm always happy for shareholders to get in direct contact with me, and then we take them into consideration in the future. Let me scroll down here. David: "What is the current capacity at the mineral separation plant, and does it have room to increase?" We have 24,000 tons. The increase I mentioned before with additional shaking tables, dryer, and high-tension is happening within the walls of our factory. It's installation of machinery, doesn't need expansion. We acquired more land next to the factory last year, so a future expansion to grow to 48,000 tons will happen within the same larger area. We have room to expand inside, which we already decided to do, and we have room to expand in the same area of the factory, which is nearby from the mine. The river I'm seeing in the back connects the mine to the factory, so in the future, we will be also able to reduce the cost of transportation by using barges down the Kahayan River. I think I've gone through the questions. I'm happy to answer any additional questions. Yeah. Oliver, I think you have addressed all those questions from investors, the company will review all questions submitted today and will publish those responses on the Investor Meet Company platform. Just before redirecting investors to provide you with their feedback, which I know is particularly important to yourself and the company, Oliver, could I just ask you for a few closing comments? Sure. As I mentioned, we're very happy with our results after just two years. We have a very large resource. We have a very high quality resource. We are in production. We're totally licensed with a big growth potential. Operationally, we're working on increasing the volume. We're working on drastically reducing our costs, and we have produced and are working on selling our by-products, rutile and ilmenite. We have a very big potential of realizing a very strong cash-generating business. I invite you all to follow the research. It can be found on our website and on Bloomberg. Strategically, we can become the consolidator of the mineral sands business in Kalimantan. We're the only industrial player. We have acquired a second mine, which is totally licensed, and we're looking continuously at other opportunities. I think it's an incredible opportunity in a very interesting part of the world, Indonesia, which is the strongest Belt and Road country, so ally of China, but also a neutral country as being an ally of the West and of the East, which in this moment is very important. Thank you very much for your time. Oliver, thanks for your time, and thanks for updating investors today. Could I please ask investors not to close this session, as you'll now be automatically redirected to provide your feedback in order that the management team can better understand your views and expectations. This will only take a few moments to complete, but I'm sure it'll be greatly valued by the company. On behalf of the management team of PYX Resources Limited, we'd like to thank you for attending today's presentation, and good morning to you all.