Q3 2023 American Resources Corp Earnings Call

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Good day, everyone and welcome to todays American Resources Corporation third quarter 2023 conference calls.

At this time all participants are in a listen only mode. Later, you will have the opportunity to ask questions. During the question and answer session.

You May register to ask a question at any time by pressing the star one on your telephone keypad, you may withdraw yourself from the queue by pressing star and two. Please note. This call may be recorded and it will be standing by if you should need any assistance. It is now.

My pleasure to turn the conference over to Mark will ever get US. Please go ahead Sir.

Thank you.

Afternoon, everyone on behalf of American Resources Corp, I'd like to welcome everyone to our third quarter of 2023 conference call and business update.

We do always welcome this opportunity to provide an update on our business and discuss our accomplishments we've made over the past several months.

We are uniquely positioned within the markets that we serve for American carbon American metals in reality technologies also on the call today is Mark Jensen American Resources', Chairman and CEO, Curt Taylor, our Chief Financial Officer, and Tom <unk>, Our president.

Mark and Kirk and I. The three of US will provide some prepared remarks, then we'll get into some questions and answers part.

Before we kick it off so I'd like to remind everyone of our normal cautionary statement certain statements discussed on today's call constitute forward looking statements within the meaning of the private Securities Litigation Reform Act.

These forward looking statements are subject to risks uncertainties and other factors that could cause actual results to differ materially from the results discussed in those forward looking statements when considering forward looking statements you should keep in mind the risk factors uncertainties, not a cautionary statements which are laid out in our press releases and SEC filings. We also do not undertake any obligation.

Asian to update.

Or revise any forward looking statement, whether as a result of new information future events or otherwise.

Lastly for anyone wanting to ask a question today I believe you will need to dial in by phone to get into the queue and we're going to begin today with a few comments from Kirk Taylor, our Chief Financial Officer Kirk.

Yeah. Thank you Mark and thank you everyone, particularly in a few moments out of your afternoon.

Over the past several months, we have continued our execution will define our strategic positioning with our within our addressable markets, which we believe positions our company for attractive long term value creation.

In doing so and in conjunction with the direction of our strategic Committee, we have embarked on several initiatives to unbundle, our unique platform of assets to better unlock value for our shareholders.

And position each entity as a sustainable company.

We will go into some detail on several of these initiatives throughout this call.

First I'll start with the update of relevant technologies.

As we've previously discussed our intention is to separate our wholly owned re element technology Division.

To a standalone public company, given its strategic positioning and groundbreaking innovation as a world leading refining technology platform using our patented chromatography technology to refine critical minerals as well as rare earth elements.

We believe Realogy is a very unique.

It provides investors with a tremendous value proposition.

This past January we filed our initial form 10 registration statement with the SEC to begin that process. We have addressed all the comments and questions from the FCC regarding the spin off.

Separation I feel that we are in a good position to continue to update.

Our filings.

As it relates to quarterly updates and periodic news slow all of our filings related to this can be found at C. C Dot Gov under re element technologies.

We also converted a relevant technologies LLC to Indiana Corporation to further advance the separation process.

We recently announced a bond offering.

Approval in an amount up to $150 million to finance, our dedicated lithium refining facility and not county, Kentucky, We're tremendously excited to work with the local county, and the workforce there to develop a unique platform as a domestic refiner of lithium battery grade lithium.

We also recently closed on our previously announced nearly $45 million.

Tax increment financing bond for Maryann refining facility.

Again, we tremendously look forward to working with local community workforce.

And government to enhance both of these projects.

We continue to discuss many strategic relationships, both on commercial and financial arrangements with domestic and worldwide partners on relevant every day is exciting and everyday we are progressing.

Okay.

Next I'll touch on our stack.

So I've previously discussed American Resources' sponsored.

M a L American acquisition opportunity Inc.

We're extremely proud of our team, but with the execution of the recent closing of the merger between our sponsors back American acquisition opportunity.

And its target royalty a major corporation.

American acquisition opportunity, Inc has been renamed Rosie Major holding corporation and now trades on NASDAQ under our M. C O and its warrants our M C O W.

When we had the IPO email just main sponsor.

We sought out to merge with again, a dynamic castling company that did not require a complicated are highly dilutive financing as part of this destock process. We wanted to make sure it was a clean.

Platform to thrive as a public company.

After assessing a number of potential targets with several requiring complex structures, we pave the path for to bring royalty major corporation to the public markets through the dis back merger with EMEA up.

As a reminder, our M C arm C. O is the next generation royalty company focus on expanding its current cash flow and revenue streams by identifying undervalued assets within sectors, including natural resources.

Land sustainable development controlled environment, agriculture, and intellectual property, while constructively supporting the communities in which those businesses operated.

Following the closing of this transaction American resources remains a shareholder approximately 3.25 million shares and warrants and a fully diluted basis.

The underlying registration of the shares.

It was filed yesterday.

And I would direct you.

Wanting to learn more information to go to Etsy Dot Gov.

Under our M C O you'll find all the relevant filings.

And again to reiterate.

Last week, the combined company trades under arms T O on NASDAQ as a royalty management Corporation, a royalty management holding corporation.

Now I'll dive into our quarterly summary.

Yeah.

Over the third quarter of 2023, we can showcase our operational flexibility operating cash flow positively and generating approximately $3 5 million and net income while continuing to position our unique set of assets.

While executing on our value creating initiatives.

The only new debt that we took a hard over the past two quarters was associated with the issuance of the taxes that industrial development bonds for the development of our Wyoming County, Washington nearby complex as well as mine development financing from one of our key customers.

Did it help the Carnegie one.

Carnegie two expansion.

As of today November 14th 2023, our current shares outstanding is just over $78 2 million class a common shares cash on hand as at the end of the third quarter was approximately $44 7 million.

Lastly, and it is probably worth reiterating all of our excess cash above F. T. I C limit or how old are the top two U S based bank.

Our unique platform of assets is in great position to deliver what we believe is attractive returns and value to our shareholders, including our mining assets are re element technologies division as well as your Middle American Metals Division, which we are in the process strategically positioning within the electrified economy.

I'd like to now turn the call over to Mark lover, He got a personnel additional comments mark.

Thanks Kurt.

As we frequently state are we element technologies division represents an incredibly exciting and very strategic opportunity for us.

We've never been involved with an entity that in our opinion has as much upside then re element.

We continue to strategically position ourselves in the global supply chain for critical minerals I think it is important to reiterate and emphasize our position within that market.

The element as an innovative and advanced refining platform for critical minerals. We believe we are a high value component within the recycling value chain, we are not solely our recycling platform.

As highlighted by our recent announcement, that's producing battery grade lithium carbonate from spodumene bearing horse.

Our ability to produce high purity lithium products and marathon side, some natural feedstocks showcases our platform's facts flexibilities and differentiates US. However, we do not believe we.

We do believe our position in the recycling market and sustainable supplier of critical minerals is highly important as we move towards a highly mineral dependent electrified economy.

That being said and again in our opinion recycling platforms alone are going to have a hard time bridging the gaps to an end of life and manufacturing scrap volumes materialize to levels that can support their capex and opex fundamentals.

Additionally, when we started re element our mission was always focused on how to most efficiently and effectively deploy critical mineral refining capacity outside of China.

It has always been our belief that attempting to deploy legacy Chinese refining technology in the United States or Europe or much of the industrialized world for that matter would pose a real challenge.

Those type of facilities are extremely expensive to build and operate due to the harsh chemicals, the waste output and maintenance at large scale.

Even though it is still early in energy transition I believe we are starting to see those challenges manifest as projects utilizing solvent extraction or hydro met.

We're getting delayed or canceled.

Of note, we are now referring to our Noblesville, Indiana facility as our commercial qualification plant rather than a pilot facility to give a more accurate description of what we actually do there.

Especially given the variety of feedstocks that we frequently receive test validate and designed for in large scale.

Our innovative advanced refining methods using chromatography displaces the toxic conventional methods, which are used in China and we believe is an important lynchpin in making the United States competitive within the electrified economy.

Just to recap some of our commercial.

Qualification milestones, meaning the production of certain ultra pure elements and compounds at commercial scale within our noblesville plant.

And validated by third party labs.

These are.

We produced greater than 99, 5% pure rare earth elements, such as neodymium praseodymium dysprosium from end of life waste magnets.

Later than 99, 9% pure lithium from end of life, and then see lithium ion battery Chemistries.

99.9978, pure lithium carbonate produced from L. S P battery manufacturing waste.

90, 996, pure lithium carbonate and spodumene bearing pegging the tight horse.

And as we frequently.

We're frequently sending.

Material out to our third party labs to verify our own results. We recently against their verified new Danny amok side at a 99.57% purity with prestige, Danny and being the most predominant contaminant.

Where are N D. P are mixed oxide was produced at a 99.96 purity.

Our magnet manufacturers actually prefer a mixed N D. P R oxide.

Another meaningful attribute and differentiator of our technology is its ability to modulate scale within a smaller footprint, allowing us to grow more concurrently with available feedstocks and as market demand grows meaning we do not have to make huge capex bets and wait for feedstocks to materials.

<unk>.

We designed for their specific feedstock, we spend less and build accordingly to the market, while our intrinsic operating parameters do not change as we scale up.

The World has never really needed innovative innovation in critical mineral refining until now or maybe we just became complacent with China's dominance of the overall market, but that is obviously changing and.

That there is the value proposition of every element the world needs advancements in refining these raw materials that power our modern day technology and we believe we provide the most efficient solution, while also being in the lead position to do so.

Lastly, and to add to <unk> comment on the strategic spinoff of re element I.

I have frequently stated that this is not an exercise in speed, but rather an exercise of value creation.

There is strategic value in communicating our plan to separate certain assets from the holding company as well as our desire to be transparent with our investor base.

Certain things are within our control others are not however, I would refer to the closing of the Wyoming County calls tax exempt bond issuance. The closing of the merger between American acquisition opportunity and royalty Management Corporation and the recent procurement of our Marion facility and incentive package, which mark will.

Right on here soon.

As recent execution all successes.

We truly believe re element has the opportunity to create substantial value for our shareholders and the decision with the decisions, we make and the timing associated around the entire process, while sometimes outside of our control are based on maximizing that value. The best we can.

Like to now turn the call over to Mark Jensen for some additional comments.

Thanks, Mark and thanks, everyone for joining.

It's been an exciting quarter for us in terms of the number of avenues, but more importantly, our team has been extremely active this quarter on positioning and the execution at all of our divisions.

Our business model within these divisions were set out to displace and disrupt legacy industry through technology effort streamlining.

Of the businesses and we're exceeding our succeeding on all fronts.

We truly set at a very interesting position with it our ability to bring cost competitive refining of critical minerals to the domestic and global market and the most environmentally safe and sustainable methods ever developed.

And no point in our history as our business has been better positioned to serve the markets. We operate in and capitalize on the broad asset base that we built the talent that we possess within our team.

And our ability to produce process and refine raw materials that are in very high demand across the entire platform.

We are extremely excited about the opportunities for all of our entities as we continue to execute upon our strategic plan to unbundle. These assets extract value for our shareholders and better position the asset basis within each of their divisions for growth as well as capital allocation.

And with developing teams under each of the separate operating companies.

Let me touch briefly on the monetization of our carbon platform as we have reiterated reiterated we remain highly focused on monetizing our substantial platform of carbon assets either through operations leases or divestitures.

As we've previously communicated we have successfully closed on a $45 million taxes, and industrial toxins have industrial bond offering through the <unk>.

So the West Virginia, Economic development Authority, which will fund the expansion technological improvements to the existing metallurgical carbon processing facility at our Wyoming County complex.

We have commenced our development work there and have recently put out our first development production up mid vol. Carbon on the ground as we began facing up the first demand.

Subsequent to the closing.

We have seen an increased interest in our carbon assets from several parties. These include an unsolicited bid for all of the assets associated with the American carbon for the implied enterprise value of approximately $260 million.

This offer was not accepted by our board of directors is due to the duration and structure of the consideration payments.

We've also received mentor and entered into a nonbinding LOI from a non affiliated strategic party to purchase Mcquay, Alcorn, Perry County, and Wyoming County complex.

For a total consideration of approximately $280 million or $3 38 per cent per share.

[laughter].

Okay.

We have signed that LOI and are working with a party on that process.

We are seeing a round of consolidation taking place within the global steel industry, including the supply constrained carbon market our platform of carbon asset is unique given the significant mining infrastructure, we own the quality of the carbon we produce and have access to the restructuring efforts and investments we have made over the past several years to rightsize.

And streamline the operations both streamlining efforts, let me touch base on that quickly, which I think is important we acquired eight companies five of them 363 bankruptcy sales over a period since 2015 during that process, we've reclaimed almost $28 million of environmental liability and receipt bond releases on it.

Those bonds cost money, each year and by reducing that liability. We're also making our business more profitable from these legacy operations that we acquired better positioning the asset streamlining the athletes and streamlining the team to be focused on production at low cost and that's what we build today and that's what we possess and are ramping up.

We believe our platform is very attractive for the current market as steel producers are looking to secure long term supply chain quality met carbon not only domestically, but also internationally and within the supply constrained environment, there's going to be significant opportunity over the next few years and into the future to be a low cost producer of carbon.

Furthermore, our operational team has made huge strides over the last few quarters to further reduce the cost structure and REIT and position. These operations as one of the last low cost long life operations within the industry.

Given the progress the company's target is to restart these slides the operations over the next 45 days and we're progressing towards that and fast order.

As we work through the sale process as.

As well we continue to work through these policies.

Along with the other possible consolidation plays that are taking place in the overall global steel industry.

As stated earlier, we have received interest from multiple parties and continue to receive interest from multiple parties and additional parties across the landscape for our different operations, which provide a several options to explore and we will pursue those that best benefit our shareholders and workers alike.

Given our team's efforts and positioning to date, we choose.

And if we choose not to sell the carbon assets to the O I wish you signed or any of the other interested parties, we are well positioned to still separate the companies to create a pure play opportunities.

With that we previously filed our initial form 10 registration statement with the SEC to spin off our wholly owned American carbon division into a Standalone public company.

Let me touch base on that briefly the reason we did that was we can't control every aspect and or timing of any other party.

Well, we have we can't control is the ability to put forth effort.

To position the assets and prepare for anything that comes out.

And as such we filed the form 10, and we are pursuing and working with the party to sell the assets, but should that might close we are well positioned to still monetize the assets for our investors create a royalty stream back to American resources dividend out those shares to underlying investors and positioned the company for growth as a standalone operating entity.

We did this in conjunction with the recommendation of our strategic Committee and approved by our board of directors on spinning off American carbon into its own public platform, which better enables the business for growth capital allocation and motivation of the operating team in itself.

[laughter] I stated also additionally, the spinoff is structured is that American resource Corporation could receive up to over $300 million in the form of royalty payments from American carbon over time based on production and capital raises under our spinoff scenario, our shareholders would receive a pro rata distribution of the American carbon shares should we go that route.

Furthermore, we've also secured a $20 million factoring facility for American carbon to support its normal course of business and to grow the business and upon any spinoff of American carbon we have $100 million of equity financing facility in place under American carbon pepco as an additional option for future growth.

Which would go alongside of our $45 million tax then bond for Wyoming County.

Which can Kimberly represents approximately $165 million net of fees or financing capacity for our Standalone American carbon asphalt.

[laughter].

Over the third quarter, we were able to monetize some carbon assets and inventories as the global met carbon market has stabilized. The following following a brief period of logistics and bottleneck supply challenges that took place in the global supply chain.

As previously stated we are currently in the process of planning a restart of our Carnegie minds and pick up where we left off earlier in the year, where we have realized some of our best fundamental production levels. Furthermore, during this period of downtime we have also.

Continued to advance forward at the operations to further drive operational efficiencies and have made huge strides by our team there a very low capex levels.

Expanding and positioning those mines to be low high producers at low cost.

We continue to develop our Wyoming County complex to begin operations next year and are on track and progressing nicely at that operation.

And execute upon the vision of the American carbon team.

And also the addition of our strategic committee to Unbundle the assets certain assets that you can disclose.

Let me touch briefly further on relevant technology.

To add to the comments that Mark made earlier.

Earlier regarding re element the opportunity opportunities we have in front of us are extremely exciting.

[laughter], our ability and the way that we officially deploy critical mental refining is indeed unique.

Our strategic plan to scale our platform is multifaceted.

One we will operate our existing facilities in current facilities. We've announced we currently have two planned announcements of two additional plant facilities that we publicly announced one in Marion, Indiana, and two in Kentucky, and not County, Kentucky.

Our Marion, Indiana campus, which I was out today, it's coming along phenomenally well. This is a 42 acre campus with approximately 425000 square feet of existing structure.

Which will be mainly focused on the recycling and refining of critical minerals.

Our initial design will support an annual production capacity of 5000 metric tons of battery grade lithium carbonate.

And 1000 metric tons of magnet grade rare rare earth oxide.

We've also closed on our tax incentive package with the support of Marion of approximately $45 million from the city of Marion to support the brownfield development of activity as well as the expansion of the equipment expansion and operational expansion and facility.

And we are working on other government supported programs under the bipartisan infrastructure law and IRI as well as other capital sources to support that growth at the project level.

Kentucky with them, Kentucky with him project projects highlights another unique attribute of ours and how we are well positioned to deploy our leading critical mineral refining technology.

Our vast ownership of mining assets in eastern Appalachia corridor provides us with the needed infrastructure to bring meaningful lithium refining to North America.

Furthermore, I'd like to point out we're tapping into a skill set and a workforce that has hundreds of years of <unk>.

Commodity processing experience they understand the importance of cost. They also understand the importance of quality. We're also tapping into existing infrastructure that we have that are not county.

Complex, which we did not include in the sale of the assets under the previous LOI for this reason this provides us the ability to move fast and at low cost to build of our lithium refinery, they're utilizing existing infrastructure and existing the existing location.

Lower the Capex and further to tap into the existing infrastructure that we have already present that we're not going to be waiting on from power stacking tubes, conveyors et cetera.

Okay.

Okay.

As a point of reference the United States today produces approximately 17000 metric tons of battery grade lithium carbonate or hydroxide.

This facility is being designed to produce approximately 15000 metric tons of battery grade lithium carbonate or hydroxide.

Given the United States, the ability to double its capacity utilizing our state of the art technology and utilizing a workforce that is more than up to this challenge.

Facility is uncontrolled land logistics infrastructure on place rail is on place.

<unk> is in place and the workforce in place. This is an exciting opportunity not only for us but also to showcase.

And provide opportunities to a workforce and its been displaced by the energy transition marketplace.

As stated we've recently announced the preliminary approval of the not counting fiscal court from the issuances of up to $150 million of tax exempt industrial revenue bonds to support the growth of that complex.

Similar to the Wyoming County Bond we closed.

We also had the opportunity to speak and then taxes and bond conference and I will say that the support for industrial revenue bonds such as these is very strong among the message that the investment community, especially.

The way that we're building this facility the workforce that we're bringing and the use of this facility in itself.

Both our Mariana, Kentucky, lithium facilities will be able to moderately and efficiently add refining capacity to respond to feedstock availability as well as market demand and I will say from a feedstock availability based on our trips to Africa as well as the Canada is abundant there's quite a bit of lithium or lithium bearing a worst within the marketplace that need a place to refine.

Other than China that are looking for a place to refine other than China.

We have also recently been expanding our operations and looking at opportunities in discussions on several opportunities in Germany as well as throughout the EU marketplace.

We are having those discussions with partners as we speak with our team over in Germany. During this call at the moment.

Japan is another market, which we've been working on we've been working on the Japanese market for a long time, we have entered into a joint venture partnership within the Japanese market, we will showcase three elements technology in Japan, one of the most highest tech areas of the world and showcase how it cannot only refined critical minerals, but do it at a cost structure that is.

Additive if not better than what's done in China today.

This partnership has also already begun realizing service revenues to re element.

Sourcing of lithium Morris.

As I mentioned, our team has been to Canada. We've also been to Africa I've been to Africa myself three times over the last six months.

The opportunities there not only for sourcing the worst but also showcasing our technology is abundant.

It's an amazing opportunity to create job opportunities within the local environment to displace China's dominance throughout the region and to do it in a way that is favorable to the local community.

Our relationships in West Africa, South Africa, as well as East East Africa are substantial and very and moving very very quickly and we're excited about the opportunity to import high value technology that create jobs for the population one of the fastest growing population basins in the world.

While also helping them drive manufacturing and solving the supply chain for the United States.

We believe these opportunities to provide low cost environmentally safe lithium refining around the world in a collaborative manner to meet the needs of the energy storage market are abundant and we will continue to grow.

Being able to build our modular facilities and these local environments to source the critical minerals and a low cost format. While also showcasing one of the lowest carbon footprint from our refining facilities in the world.

We've had early successes in developing partnerships such as the one we have established with our Magna and battery partners that we've already announced.

And we continue to have good success with several other pilot programs, where we are fostering collaborative opportunities within the automotive wind energy consumer power tools and broader energy storage and recycling markets. We are excited and confident about the developing developing these pilot programs into long term partnerships and communicating them in the near term with our Investor base.

I'd like to recognize all relevant team for the groundbreaking breaking successes that we've achieved and then time quick timeframe we've achieved it.

And we do believe the time is of the essence.

We also believe that we put together and the best teams continue to drive the revolutionary refining technology and continue to add great talent to our team with the recent additions have been wrightsman, that's president and change drag it Don as Vice President of International strategy.

Our goal is to build real win into a multibillion dollar business and do so based on performance.

We believe we have the right team in place and a line of sight to accomplish this mission.

Okay.

As we continue to execute upon our strategic plan American resources and focus on the highest value opportunities and will look to expand its asset base within the natural resources industry utilizing cash generated from asset sales and royalties to acquire interest in high value critical in rare Earth mining assets.

That can feed into re element technologies to be refined and our cost effective environmentally sustainable methods. We are in active discussions on multiple opportunities in this front, where we can leverage the rehab and the technology take an ownership stake in these mines sensors lithium bearing mines in Africa as well as other parts of the world that we can also showcase and help provide.

Guidance on how to operate these mines safely and effectively and efficiently. We're excited about that opportunity and we believe in the future from American resources at the holding company will be able to benefit greatly from these additional expansions we are evaluating.

In closing we remain very confident in the positioning of all of our assets and the long term value. They provide to our shareholders. We remain hyper focused on unlocking that value, we have ample liquidity and do not foresee us meeting to issue equity at the <unk> level to raise cash.

Especially with some of the sources of non dilutive capital, we have available to us and recently announced project financing that we have available to us at the real net level.

Just to reiterate as the largest shareholder of American resources, and one of the largest shareholders of American resources. Our management team is committed to maximizing the value of all of all of our businesses and believe our continued execution and the unbundling of certain assets will help us achieve this.

With that I'd like to turn the call back over to the moderator for some Q&A.

Yeah.

At this time, if you'd like to ask a question. Please press the star and one on just telephone keypad you.

You may remove yourself from the queue by pressing star and two.

Once again to ask a question please press the star and one.

We'll take our first question from Heiko Ihle with H C. Wainwright Your line is open.

Hey, there thanks for taking my questions.

No.

Excuse me I'm sorry.

You filed a form 10 registration statements with the spinoff of American carbon.

And I guess, that's obviously only if the sale options don't materialize.

Is there a internal drop that they buy when you expect to make this decision whether it gets sold externally or what exactly happens and I'm pretty sure. The answer is it doesn't matter, but to be clear just because you focus for them. It doesn't force you to do anything correct.

That's correct. So we're not forced to do anything we filed it.

We obviously can't control with any buyer does or does not do especially with the consolidation taking place within the steel industry today.

Our goal is to monetize the assets.

Now, we're running and thankful for our team. It's a dual process that takes time and effort, but we're running that dual process. Even if we spin off American carbon in the form 10 that does not mean, we may not sell monetize it.

If the value is above the current market value then we will monetize that we're getting I mean American resources, we believe today as well as well below the fundamental value of the business and we've seen intra.

Interest for the company as a whole, obviously, which we're not willing to do.

Above the current market value, but the American carbon asset in itself, we are working and the buyer is an active dialogue and it's going very well and we're going to showcase the cost structure in your mind very quickly which.

Is getting very exciting and not only the current buyer that we signed the LOI with but we've had multiple other parties come in with very interesting structures as well beyond that.

But depending on how long they take that doesn't mean, we may not still pursue with the form 10 and spin it off and then still move forward with the sale of the assets if the market value is below what the buyers willing to pay.

But it does not the filing the form 10 does not force us to spin it off but we're going to move as quickly as we possibly can pursuing alternative to position the assets to unlock that value and that may be found spinning the company off in a form 10, and then selling it thereafter.

Right.

Fair enough can you and then just a completely different one can you breakdown the 45 million and in local local incentives that you've got how much of that is your cash how much is tax savings how much is I dunno discounted on land can you just break down the 45 million. Please.

Yes, I'll do my best at it.

Justin it's a little bit it's a little bit of a complicated structure, but it's a tick that.

That can be monetized as we build the property out <unk> borrowed against so it's a bond that can be issued or.

We're borrowed against as we continue to build out that facility and allocate capital there, it's almost like a reimbursement of the cash.

It is the best way to describe it so it's a it provides it's a great structure for us to enable us to.

Hum have non dilutive capital available to us and as we spend the capital and get it reimbursed.

Fair enough I'll get back in queue I appreciate it.

Excellent. Thank you.

Our next question comes from Mark Stone.

Your line is open.

Can you. Please clarify the relation between all of the potential asset sales and spinoffs for instance, if an American carbon is sold <unk> spun off and would you still go ahead with the element spin off.

Would that leave American resources without the American metals, plus the shares owned royalty management company can you please clarify that.

Yeah, that's a good question.

So our goal is to.

Separate the divisions off into their.

One operations as one team.

That are able to drive in a direction and as a pure play opportunity. So American carbon that's correct. If you spin it off or sell it obviously that would be its own independent entity.

Regardless of how the structure and we'll pay a royalty back to American resources for the American Resources' shareholders and.

And neither one of those instances as well as cash consideration.

The absolute plan is to still spin it off into its own separate company to provide a very clean structure.

Sitting where you all been off I mean relevant we believe is an absolute game changer for the market.

Being recognized throughout the world for what it can do in our partnerships that we're developing.

And customers that we're developing on that front will be able to showcase here very shortly.

Also the fact that we do intend to apply for infrastructure Bill grants and stuff of that nature, having an associated to our core business and makes that challenging.

Having any of the legacy coal related aspect in this filing we prefer not so we will spend that often do its own entity.

Post the spin off of both of those assets American resources set up as an opportunity to further expand its footprint within the critical minerals space.

We're in negotiations as we currently speak and making significant progress on acquiring an interest in <unk>.

I've been traveling.

Throughout the world in multiple countries in Africa that we have very good relationships with the strategic parties have concessions there that we may take an interest in which you will then be processed at <unk>.

So the goal for American resources as expansion as expansion within that sector, focusing on taking strategic interest in operations that can then feed into the re element entity for further refining controlling the supply derisking. It for both entities involved but and then obviously, yes it'll still on.

And American metals as well as the.

The interest and royalty management Corporation royalty management holding corporation.

So if those mines were acquired would that be in re element processed.

The material from the mines would that mean that re element was doing more than just recycling processing, but actually processing initial mining extracts.

We almost doing that today.

Processing lithium spodumene as we speak.

That's what I mean, my three trips to Africa over the last six months were to work with not only the lithium opportunities, but also rare earth ores.

Which is a new new opportunity for us, which will further going to in the next few months.

But the lithium ores lithium bearing a worse and or other critical mineral wars are a substantial opportunity for the <unk> technology, we can build facilities in a much much lower cost than the legacy methods of doing of refining materials. China uses we can co locate them at the operations within the sites such as in Africa.

Yes.

And build the facilities there so we're not trucking rock or shipping rock halfway across the world.

And we can scale our design our facilities to match the capex with the feedstock available.

One of our competitors just announced that they're evaluating the sale of their business. They were trying to build a refinery that was about <unk> the size of the current market availability.

As a recipe for failure.

We instead design our facilities based on the current feedstock available and then we can modular really scale them up over time.

We're matching capex with feedstock as well as opex with feedstock. So that there's no from a cost structure perspective, we're able to very very efficiently expand our business, but that gives us the ability to go to the ores as well as the recycled market and expand our footprint globally to benefit from the.

Technology in itself.

Sorry, it's a long when you talk.

Yeah, Okay. So a separate question can you please.

Tell us the plans and timelines for getting to non trivial.

Revenue generation from rare Earth oxide separation.

If I gave you guys timeframe you would all yell at me.

We do our best to achieve them, but some things are outside of our control.

My best though.

We are so our Marion facility as well.

Our customer qualification plant can significantly expand our production and we're doing that as we speak we've been qualified at a number of different customers that currently.

And our further progressing with those customers we have off takes on the rare side, we have off takes on the battery side.

Getting the meaningful revenue will be in 2024.

Now that being said we are generating service revenue as we speak right now through our Japanese partnership.

More to come on that in the next couple of days.

But the the ability to further scale the business and the only thing is our cost structure is extremely low.

We're strategic in the team members that were hiring.

Keep our costs low until we get to that meaningful revenue generation, which is coming at us.

Quickly I don't want to give you exact date because.

If I Miss it by a little bit I'll get I'll get slapped for it.

Alright, thank you.

Thank you.

Yeah.

Our next question comes from Steve Siegel with KDB asset management. Your line is open.

Hey, Mark how are you I was curious just wondering.

I was reading today about the <unk>.

Lifecycle.

News and.

I I.

I didn't really know that much about the company, but I bet, it's more about it and I see that most of those multiple shredding facilities and they mothballed I guess their hydro in that facility.

And it seems like Mcafee is a much better solution than what they were trying to do so.

Is there any interest on re element and like.

I was talking with them about some of their assets are collaborating at all.

Yeah, I mean, we will we will look at at the assets and will reach out to their advisor that they hired with regards to the shredding operations.

Not with regards to their refining capacity they were trying to build.

[laughter] that and now you have a better solution right.

It showcases that legacy ways of refining commodities does not work it works in China, because they already built it and they don't carry I mean, they're in inner Mongolia.

Labor and environmental standards there.

Are very low.

That technology does not work in the United States. It does not work in Africa. It doesn't work in Europe.

And youre going to see more of that in my opinion in the United States, where people are going to mothball solvent extraction facilities, because it's not it's not cost effective and it's extremely expensive to build more importantly, it's extremely expensive to operate over time, you can maybe get it up and running but you will not run it for over 10 years without having significant maintenance capex, you're dealing with really harsh emotions chemicals.

Chromatography is a game changer in this space one because we can design it based on the scale of available material.

And so that gives us the opportunity to build anywhere throughout the world and do it quickly.

And we're going to showcase that here very shortly to our shareholders through the relationships that we're building to date.

Would we are interested in their shredding operations, Yeah, we would I mean through the American metals business line, we'd be interested in acquiring the app and more importantly, instead of hub and spoke we will put a chromatography facility in each one of their shredding operations and show the world how to do it the right way.

Do it in a way that is cost effective cost matter.

Automotive industry, and especially in the EV chain.

Are losing money right now they need to focus on controlling their cost their building great business model for the long term, but they've got to refine the cost structure. We can do that we can provide cost effective solutions that go head to head against China and displace them in markets that they are already trying to operate in especially with in Africa.

Right.

Great.

Thank you.

Yeah.

I appreciate you.

Our next question comes from Keith Goodman with Maxim Group. Your line is open.

Hey, guys.

A quick question going back to Africa.

Japan, and Germany and other places.

You said that Youre working with.

First of all does any work that you may do there either.

To qualify to be inflation reduction.

And two it sounds like you're saying that you're going to take equity ownership or maybe some type of economic ownership of some of the mines. There does that mean, you pay for something like that or would you, bringing the technology over there.

Got a low cost way.

I have only one.

Partnership.

I'll touch on the first one first so obviously on the importing of ores to our Kentucky lithium side, Yes, we have received preliminary approval to advance to the next stage under hiring compliant most people don't take it as an application based process, but it is and we're working with the deal on that we've gotten through the first phase of that process.

Not to go to the second phase, which we're super excited about Steven Frank House Guaranty did an absolutely amazing job with that.

And so yes, we do believe that given the high value aspect of refining and country will enable us qualify now. We also are working with the government on operations that we would build within Africa, because our model is to go to Africa to build within the local environment with partners.

Being project financed over with in Africa, with local sourcing as well and local partners. So that ultimately we're sharing in the risk and we're aligning the interests of the parties there.

So I mean, I or a combined is a big deal.

Definitely the automotive, but now we also focus a lot on the MLP market, which is a lot of energy storage, which represents over 70% of the battery market. Today. We're the only company that we know that we know of in the U S that can that can refine LLP batteries at scale cost effectively and make money doing it.

Let alone obviously the oil business, we're doing but yes, we do believe based on that we'll qualify we're working with them on the African operations. If we bring it back here to our cathode active material partners would that qualify for area. We're working with the government on that we're not we are uncertain on that aspect.

But.

Not necessarily needed for all applications not needed for energy storage in some of those markets that are already building out a substantial amount of batteries and it gives us the ability to scale quickly. The one project in Africa I just came back from in West Africa could represent.

Uh huh.

First year of operations, which will take time to build and everything to that extent can be well over $350 million in revenue to us as a business and the ability to significantly scale up beyond that that's one project out of many that we're working on in that market.

And I apologize what was your second question.

Would you have to.

Pay for the ownership of those assets.

Yes.

So I'm not going to give you all my negotiating strategy away, but.

We will leverage our partnership with three element, which will enable us enable American resources to get a very attractive.

Opportunity to take an equity ownership in these mines now why is that important.

When you leave you read a lot of negativity about mines in Africa, and I've been through a bunch of them recently.

They're not all being run and then on ethical way Theres actually a substantial amount of mechanization theres, a substantial amount of ethical mining and or small scale mining that's done ethically.

But as we expand re element.

We want to also make sure that we're protecting the interest of every element and making sure that where our sources are also doing it right not only from an ethical perspective, but also being done from a safety perspective and from a productivity perspective. So we can get as much feedstock that we cant sell and grow our business as fast as we can.

And I'm proud to say American resources under our mining carbon Division. We won the Sentinel Safety Award once and we've been nominated twice, which is the highest safety award you can get within the federal government the United States, we're going to bring those same aspects to the international locations that we're partnering with now where we pay something for them, possibly yeah, we'll invest into them I feel like it'll give.

Even the time of what we're doing it in the work that we're doing in place Ian bringing equipment over there and stuff that that nature will be merkin methods of eight gaining interest in these mines now we won't run the mines. Our goal is not to operate mindset, then Africa, but it is to take an influential.

<unk> within the mine to protect our interests and protect our future supply chains.

Okay, and then so in all of the above.

The answer is all of the above.

There'll be some cash consideration will be and kind there'll be.

In refining capacity that we're bringing to the table and stuff of that nature.

Okay.

I had been reading recently.

Some coal miners here.

Companies like us that own some coal assets here.

Claiming.

Rare Earths critical element on some of these properties, which.

The question to your coal mining coal asset properties have wherewith critical elements on it and.

Isn't there some value to your property with that as well.

[laughter] Santa calls just came to the coal market.

Every coal business is worth billions of dollars now.

Basically is what they're saying.

Nothing against Great guys, I know them they've done a good job on the mining side on the coal side.

Every every call property has essentially not every.

A lot of coal properties have that same characteristic it's not it's nothing now called rare earth elements lithium for that matter in your backyard.

And our parts per million basis now.

That property is worth 37 billion, that's phenomenal that every coal business in the country is now worth a lot more money because most coal companies have the ionic clays, president on the overburden underberg, including ours.

We own we're one of the largest mining companies in eastern Kentucky from a infrastructure perspective, and all and we sampled.

Worked with Penn State three years ago to do an extensive study on all of our rare Earth reserves and lithium reserves at our properties and we had most of the properties, we sampled were actually higher grades than what they reported.

And so yes, we have those exactly things now.

My opinion is it's very very challenging to.

Focus exclusively on mining rare earth elements from unconventional sources now.

So as a mining operation you're not gonna go somebody they're not going to go mine that operation just to extrapolate that will never make money doing it. Our opinion is you can use byproduct economics and you can actually make money, we're going to showcase that in west Virginia, using byproduct economics extract a valuable resource which is your met carbon the output of that I am acquaintances your waste overburden underberg using <unk>.

Technology that we have within re element to extract out those metals producing concentrate and then feed them into re element to refine now if they go through all those steps and they can do it profitably than we would happily accept that reality to refine it because they don't have that technology, nor does anybody else we do so.

We hope they do we hope they progressed with that.

But I think it's challenging as a standalone, maybe they have byproducts that theyre focusing on there and that would be great.

But everybody all the coal companies.

If your tests are ionic clays within the coal seams, they probably have some components of rare earth and <unk> lithium in them, which we've done which we do have.

But you got to you got to figure out how to way to make money doing it and that's the most important they can do it in a cost structure that your customers can pay for it.

Gotcha Gotcha.

Then lastly, I guess going back to lifecycle for a second.

If they are shutting down on the construction of the second part, which I guess is the process of import.

They must have had relationships with some companies who I guess were under the assumption that they were going to be getting some of these critical elements that are processed.

From lifecycle.

I imagine that would be a logical potential customer for you.

Oh, Yeah, I mean, we believe so we talk.

About refining we re element as a refining company when you're talking about recycling those are shredding companies.

Most of the people that you hear about in the United States that they say are the biggest battery recycler the threats. They said they shred material they produce black mask when they sell it to China, that's what's done today in the United States by the way.

That's going to change here shortly in my opinion and I think.

I think there's I think Congress is going to open up to that and start saying why are we shipping all this black math and shredded batteries back in China, That's got to stop.

And it's slowly yet and we're seeing quite a bit of a black mass come through our facilities now from these recycling companies that are testing that we were able to test with and develop partnerships with <unk>.

And we're excited about that and we're excited about what the recyclers, they're doing they're doing a lot of aggregation and theyre doing a lot of shredding of batteries and now we can refine that for them.

Lifecycle is trying to do is create a hub and spoke model. They were trying to create these batteries shredding operations throughout the country.

And then they were going to build one hub up in Rochester to process it well.

Well.

It it's proof is in the pudding solvent extraction doesn't work in the United States, it's too costly to build and it doesn't make money and you can't you can't match your Capex with your feedstock availability <unk> scaled overtime you once you build it it is what it is.

Our technology every element is highly modular and highly scalable and yes. We are super excited about working with all of the recycling companies throughout the United States and throughout the world to help fulfill that supply chain gap that everybody's missing everybody is missing the ability to refine lithium to refine critical minerals too.

Refined rare earth element outside of China.

And we can do that today and we can scale that rapidly today and because of that we're getting a huge amount of interest in these parties to work with them now would we be interesting lifecycle assets and will we be involved in that process for sure under American metals line, which is our which is where we would shred the batteries at <unk>.

We developed that model to do so.

But.

Is that missing gap, it's replacing that solvent extraction, which can't be done in the United States and we can our facilities are operating proven can operate under environmental standards and proven we can scale it rapidly not only domestically, but also internationally.

Okay I appreciate it I really appreciate it good job of explaining it thanks a lot.

Excellent. Thank you.

We'll take our next question from Mike <unk> with Roth, Okay. Ann Your line is open.

Hey, Mark.

Hey, Mike how you're doing.

Good good just a real quick I know, we're running late here, but I noticed that it said that you had commenced development at your Wyoming County, and that you're realizing the cost development.

I take that as you're almost in the early throws of production and you're gonna be commissioning them over the next.

Couple of quarters now is that close.

Yeah. So when we started the initial development of the peso and then that the nice thing about <unk> is you actually will produce coal in that process.

And be able to monetize it and so we're we're working on the Eagle team as we speak right now to develop that with the goal of over the next few quarters to two to commence production there in the.

Meantime, we will be able to generate revenues from that facility as we're expanding it as we're developing it so it's a it's an exciting development.

The quality there is it's mid vol met coal a highest quality you can produce in the country and the beauty of it is their Virgin Greenfield.

Greenfield operations, so that the cost structure, and we're going to be significantly lower than our competition.

Are you stockpiling there now are you actually putting it through our facility.

Oh, various I mean, it's very small right now we on the what we got in the ground, but over the next 30 days.

We'll probably trucks some of it out and monetize that I gotta check on our mind licenses for those specific.

To be able to do so but right now it'll be stockpiled for the next over the period of time, but then hopefully monetizing it will hopefully generating some decent revenue.

By the end of the year.

Yeah, and with Carnegie one and two.

You did have some production on your income statement this year or this quarter, where did that production come from I thought it would come from.

One of the Carnegie is that.

What's producing I guess right now to bring that number out and what are the status of cargo Carnegie one and two again please.

Yeah. So we've been doing some development at the Carnegie is as well.

And so in that process cutting over cash and developing it for additional section so that when we start off we're not just producing from one section we're producing for multiple sections.

Which means you're optimizing that cost isn't that process generating some revenue out of it.

During the development phase of it as well so yeah and.

Some of our other idle operations, we generated revenue from as well, but the Carnegie ones.

We're tracking really well at Carnegie one.

For the development when we restart it will really started with multiple sections running which is really important you're covering your fixed overhead at the with the one section when you add that second section, you're adding about 15% more workforce, but youre doubling your production, which means your cost structure goes way down. These mines are very new mines.

We've pretty much developed them for.

The onset and so they are set up in a way and we've been working over the last 60 90 days with our team there to further optimize the mine. So when we like the fire here very shortly in the next couple of weeks.

There'll be set up.

To run at very very low cost and B, we think they'll be very very profitable mines for us at Corning. You want you can almost look at you can almost look at the revenues then in the quarter as well.

What you were seeing similar to Wyoming County in terms of development commissioning optimizing.

Neither one are at full tilt, but it should be a much stronger first half of next year for both of them I imagine.

Yeah, I mean, you're going into the 2024 year, we're going to be.

One will be hopefully progressing very significantly if not already making substantial progress on the monetization of the mines.

Which generate significant cash for American resources, as well as or spending enough, but also we'll be producing our goal would be to have both kind of you want to and Carnegie two both running in multiple sections.

Before the end of the year, so going into 2024 hit the ground running in.

In a way that'll be very nicely profitable and you're starting to see the coal market got.

Kind of whipsawed.

Four months ago, and we take the approach that we react quickly you don't know where things are going to do but what we do know is we have one of the lowest cost structures from a corporate overhead perspective compared to our peers and we have operational flexibility to do that now.

With that we made some decisions there to do what we did and now we're in a position where we think the coal markets are stabilizing the China Australia.

Rebalanced has taken place and now that the world markets are kind of stabilized in that regards you're starting to see supply continue to go down.

Demand has been increasing so we think it's coal prices are good right now and we think theyre going to get better over the next three to four months.

Yeah, well it looks like you're holding some good cards there in your hand claim or how you want.

Just real quick please when you're looking at Africa, and I like the way you categorize that is it primarily lithium or are you looking at other ores.

So is it limited to lithium.

So right now predominantly lithium.

Based on some new developments, we're also working on some <unk> over there.

Okay that are really really attractive.

We've been testing getting some of those spending over the last couple of weeks because of the recent developments of our of our.

Technology licenses.

We are sampling.

From some cobalt mines that we know of that are that are run by companies that we feel very secure with and then further that I mean, we have a we have a partnership actually.

Our stack RMC as an investment in a company called <unk> that has a significant amount of medium.

Energy storage is predominantly their LSP or vanadium redox.

Batteries and so we think vanadium is actually going to have a bit of a movement going forward. So we are looking at doing some testing and development around the vanadium as well from <unk> perspective, Havent done it yet, but we're working on that so it's predominantly lithium today, but the ability to utilize our technology for other applications. We're doing some really exciting stuff within the facilities as we speak.

For other applications like alumina and some other products that need high value refining that we may insert ourselves as a component of that refining process.

Re elements are I mean run by Chief operating Officer, Jeff Peterson, who is phenomenal been wrightsman theyre.

They're doing some amazing things there in terms of positioning the assets to be deployed into multiple avenues multiple revenue streams over the next few years.

Well that was a good question I ask.

Yeah.

Real quick about Marion should we be looking at re element with maryann as being primarily a rare earths not lithium.

And then looking at your Noblesville facility is kind of did you say a pilot plant or a customer qualification lab. So to speak is that the right way to look at those three facilities.

Yes, so maryann yeah.

Look at Marina vote, so Marion will be processing black math into like batteries.

For lithium and then for LLP battery, specifically is a huge market for us and 60% to 70% of the battery market and we can extract with the amount of LP batteries very very economically.

We're super excited about that we'll be doing that in Maryland, as well as NMC extracting out the the lithium and then further crossing the nickel cobalt within the NMC battery is very very cost effectively.

Yes, and then the rare Earth ores.

Working with one automotive company.

One of the larger Oems on refining recycling their non spec rotors.

In materials, there as well as.

Power tool markets, but we're seeing a bunch of rare earth elements come in from different feedstocks that wind energy wind turbines, but that'll be Marion what our noblesville facility. Once we commenced production at Marion will turn which is our current customer qualification plan will still produce out of there, but we'll also do optimization and development at all.

It'll turn into.

I think tank lab development beyond the revenue that will be generating.

To further co develop different applications.

Further drive and optimize our process, we will never stop I mean, Bob Galleon Who's on our board of re element. He was the number two a CTO delta from $100.

$0 in revenue to 185 billion with Robin thing so the large battery come in the world today and he told me from day, one you need to spend you need to always spend on R&D. If you don't you'll be left behind and that man knows what he's talking about we'll do that same thing in noblesville will be a great facility for us to do that beyond the revenue that will generate and then obviously if youre talking.

Let them, we'll be processing lithium ores from from Africa, Canada, and some other locations.

But.

Yep.

Tony.

But yeah, Mary Mary and it'll be both.

Knox County will be predominantly lithium and then no wholesale will be will be all of the above but also resin development technology development as well to further optimize our cost structures and then you're also looking to co locate opportunities where possible.

As you mentioned why why would you not co locate with your lithium.

Closer to your lithium model.

There's as you kind of look at things unfold.

We will.

Ive been in Africa, three times in the last six months and heading back probably in another month.

To further progress the deal we're working on there.

We will build refining capacity over there now having the Kentucky with M site up and running we'll always export certain amount of product back to the United States. It provides us redundancy for our customer base and customers.

Especially when you're dealing with the customers we're dealing with they want they want to derisk. It any way you, possibly can and being able to feed their supply chain from multiple angles multiple locations is paramount.

And there's a lot of locations in Africa today that are producing lithium spodumene.

And or other lithium bearing ores that we can't build in each one of them.

Now down the road, we can but there is there's a select sites. We've got three sites in Africa that we're looking at building refining capacity at working with our local partners on the financing aspect of it the structure of it.

Site location, all back and stuff. So we can build local refining now also having that redundancy back in the United States.

Derisking mechanism for our customers.

Are you thinking about recycling catalytic converters.

Not looking at catalytic converters.

Currently, but I will say in our Marion facility, which is progressing really really nicely. We'll further build out the lab there too we will down the road work on.

Other applications like I said alumina.

Some high nickel content applications.

Germanium gallium looking at the ability to utilize our technology for refining all asked other materials as well.

Catalytic converters problem.

Not as much.

Yes.

Not not a market I don't know I don't want to say no to anything, but our lab and our team that we're building there could could look at a number of different applications, coupled with converse other sources on sometimes a little bit negative.

Well, just a comment I really like what you said about the ionic clays.

Lithium and rare Earths.

Since that's kind of where you've got into this whole.

Re element business to begin with but if somebody who is listening to this call for the first time, they think that you're trying to or planning on.

Lanting the entire refinery.

Industry.

And then they kind of walk away, probably incredulous, having not seen at your success firsthand.

But that's kind of the direction, you're going it doesn't have to be just real opportunistic to exploit every opportunity you can anywhere along the supply chain from beginning to end.

10 years from now re element will display solvent extraction.

In the World now the legacy facilities will be running but nobody will build a new one.

Our technology is superior, it's lower cost, it's more environmentally sensitive and it's highly scalable.

I'm highly confident of that now.

Now.

We continue to prove and to your point, Yes, we got we got into this space by Redeveloped three element I'm, just trying to treat environmental liability. That's why we develop the business plan over nine years ago.

When we bought the mine we were we were treating water with it that's why we developed the electrolysis technology with Dr body, how I met Dr. Wang because we're looking for once we can concentrate it we're looking for a way to refine it.

We've been building this for a long time, we've also been processing commodities for 20 years lithium rare earth elements all of a sudden their commodities.

People think it's really sexy and exciting and you can jump into it and it's just you can print money. If you just build something that's not the case you still have to have a cost structure that makes sense and you still have to be able to do it in a way that is one commensurate with some product quality and your customers actually want that's what <unk> does but we're also building out on the backbone of a team that's been processing.

For a really long time and understand how to survive those markets and we've done it.

Hell, 95% of the coal business around us went bankrupt during the eight years, when we were growing our business and we're now one of the largest longest standing coal mining operations in eastern Kentucky today, because we never went bankrupt because we built our business model to survive and thrive.

By.

They're not sites came in handy too.

Well I.

I mean, yeah.

If an idea.

Thanks for taking all my questions and I appreciate it very much and congratulations on all the things you've done, especially with the non dilutive financings as really quite quick.

Quite hard to take all in.

Thank you.

100% I appreciate it and not only the financings are key we're all shareholders I mean, that's what motivates us when we wake up in the morning, making sure we're protecting the dilution within the company and also positioning it to grow so it is not sitting on our hands just hoping financing comes in it's making moves to bring in innovative capital Kirk Taylor, our CFO has done an absolutely phenomenal job at that I mean, the guys.

He's a super smart on how to make sure we protect the shareholders through capital allocation.

Thanks for your questions.

It appears we have no further questions at this time I'd like to turn the program back to the speakers for any additional or closing remarks.

Excellent well I've got you guys on here for quite a while when I want to thank you all for joining.

We know you are better the other thing is doing and taking a few minutes out of your day to listen to speak we appreciate that we.

We couldnt be more excited and thankful for the position we're in the team that we built and the opportunities we have in front of US. The next few months next few weeks next few days are going to be quite exciting for us.

Please stay tuned to what we accomplished as a business that it's going to take a lot of groundwork and we're prepared to do that can you take this business to the next level and eventually our marketplace will respond to that I just wanted to management and some of the largest shareholders. In this company, obviously, we care about market value would care about it over the long term and we know that fundamental business development and expansion will eventually.

Drive market value.

I. Thank you all for your time and excited about the future and look forward to speaking to you again here in the near term.

This does conclude today's program. Thank you for your participation and you may disconnect at any time.

Yes.

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