Q3 2023 Gulf Resources Inc Earnings Call
Greetings and welcome to the Gulf Resources third quarter 2023 earnings Conference call.
At this time all participants are in a listen only mode.
Question and answer session will follow the formal presentation.
He wants you to require operator assistance during the conference. Please press Star zero on your telephone keypad. Please note. This conference is being recorded I will now turn the conference over to your host Helen Zhu you may begin.
Helen Zhu: Thank you all right yeah, good morning, ladies and gentlemen, and good evening.
Speaker Change: Zelda off he is joining us from U S and we'd like to welcome all of you to go out in the southeast So contact 1023 conference call.
Speaker Change: I didn't see that Oh.
Speaker Change: Oh CEO of the company to Shelby and he's also joining this call today I'd like to remind you to all our listeners that in this call certain statements, you'll you'll get a call will contain forward looking information about coffee shops equilibration.
Speaker Change: And each subsidiary is nice and products within the meaning of issue why 75 under Securities Act of Yankee Stuffy Street.
Speaker Change: It was trading desk six under the Sun.
Speaker Change: Cookies Exchange Act of 1934 and are subject to the Safe Harbor Clayton Biofuels.
Speaker Change: Actual results may differ from Joel discussed today, taking into account a number of risk factors, including but not limited to general economic and business conditions in the PRC associate it.
Speaker Change: They get pedantic outbreak future product development and production capabilities shipments to end customers and the market acceptance of new and it's safe to call that additional competition from existing and new competitors from the bromine ended up Agra.
Speaker Change: Beauty and the power production chemicals.
Speaker Change: <unk> technology.
Speaker Change: The ability to make future bromine assets and the various other sector beyond the company's control.
Speaker Change: All forward looking statements are expressly qualified in their entirety by these cautionary statements and the risk factors detailed in the company's reports filed with the SEC Golfie Shelties assumes no obligation to revise or update.
Speaker Change: Any forward looking statements to reflect events or so.
Speaker Change: Kenzie after the date of this call.
Speaker Change: Cody.
Speaker Change: Company believes they practice it reflected in those forward looking statements are reasonable there can be no assurance of such will prove to be correct.
Speaker Change: Addition, I ask any reference to Companys future performance.
Speaker Change: The management's estimates as of today, the 20 <unk> of November 2023.
Speaker Change: Well, we want to offer you on April two banks into the entire call at this time.
Speaker Change: A replay will be available at the company's website. The call is all upside for sure the webcast and the link.
Speaker Change: It goes through our website. So please locate our press release issued earlier for the details.
Speaker Change: Before focusing on the major content of this conference call, we would like to briefly discuss the proposed changes in the Altair <unk> sheets.
Speaker Change: Yeah, Bonnie to our company and then Mr. Neogen the company to the Senate and it became CEO in 2009, you see all who had investments in 90 company is seldom colleagues.
Speaker Change: Decided not to stand for reelection as chairman at the annual meeting on November 32 that tend to St.
Speaker Change: What has normally may teach me to serve as our next chairman where are you with.
Speaker Change: I would also like to refer to our recent press release is causing a further three they should play.
Speaker Change: As we used to the idea that you took on a T.
Speaker Change: Sure so the experience that you've lost.
Speaker Change: T impact of pet food will be a big.
Speaker Change: Regarded as one of the most destructive typhoon in history, resulting in some region, we see them voting pardon light in cheese all gainful.
Speaker Change: The.
Speaker Change: The overflow of three major.
Speaker Change: So he is a long term needs of either late to east, Tennessee, peanut you'd thumbnut residential roof, and that's G O that cheap.
Speaker Change: All of the company's bromine sketches crew soft patch and mining areas was seriously impacted the company incurred substantially pansies amount handful Moselle 40 millions of dollars, including <unk>.
Speaker Change: Write offs, and then Joe to the pets equipment and replacement Cousar heavy construction and are reaching the end of our lives.
Speaker Change: Yes.
Joe: Yeah, Nathan the typhoon Lekima truck she'll glossy D again.
Joe: Housing that is trapped him force of E. P cdos.
Joe: Great.
Joe: Once again the company had to spend the most of that $6 million to rectify that after mess involving the road to meet has upended placement Cusco, Peggy construction and the feeling.
Joe: Yes.
Joe: So to.
Joe: And you can gauge and a ceiling of damages in the future. The company had common stuff a lot played live J E T.
Joe: Our strategy involves the novation of the channels are full major lever we do.
Joe: Our mining area.
Joe: Income parking yep.
Joe: Should be able to re lease those either.
Joe: Aim is to prevent filardi that could have the whales echo dogs and of course, our pets at all to that.
Joe: The project piece of expenditure for these initiated amounts to approximately $55 million.
Joe: Nice quarter and being by September 13th 2023.
Joe: The company disbursed.
Joe: Mounted approximately 15.15 million for the initial phase of this project.
Joe: Part from reducing risk to surrounding regions.
Joe: He stated that.
Joe: Three notable advantages from these Florida predaceous plant.
Joe: He he expects you to firstly.
Joe: The probability of all continue approvals to really open that she is number two and number 10.
Joe: Secondly.
Joe: And have enabled the training of additional wells across all five operating factories.
Joe: Now there's three.
Joe: To date, the lease and associated expenses related to future stops.
Joe: Used flaherty.
Joe: Leaving the company.
Joe: Current financial position and it's substantial Kashi South East the company believes that the flood prevention plot. There, we'll just say Louisville.
Joe: Over the long time to come.
Joe: So nothing that's putting two as a result of the so called them and then nine months.
Joe: But in the so called out your sales declined by 70 sport pleasure teach net income after tax was a loss of approximately 1.8 million compared to a profit.
Joe: Tell me o'clock Sneakily Oh.
Joe: Nine Paul zero immediate.
Joe: Net loss per share was <unk> 17.
Joe: Compared to a net profit of 86 it.
Joe: Shareholders equity was approximately.
Joe: 206, coupon intermediate Oh, tiny small time, 99%.
Joe: So as a result for the three months ended September 32023.
Joe: In the first quarter of 2023 revenues declined by 74%.
Joe: Our proximity 590 from approximately 22 9 million.
Joe: Actually the bromine revenue declined by 75% to approximate 4.9 million from approximately 19 points.
Joe: The decrease of English nice revenue was primarily due to the reduction in the volume of tons sold.
Joe: Q4, 43, I can teach and a 57% decrease in the average selling price of bromine.
Joe: These are called her every selling price wars.
Joe: $3237 compared to.
Joe: $7474.
Joe: As of November 16, 2023 based on the centers dotcom data at a price of bromine has seen a increase of approximately $7 four person teach to 3000 and $477.
Joe: The decrease in selling price bromine reflects both the economic weakness in China and any excess yeah.
Joe: Lin Chi of Mtc pet piece.
Joe: Following the aftermath of call me every section in tons sold reflects the company's check check a decision not to engage in price competition aiming to safeguard long time value of easily saudis.
Joe: Additionally, crude salt revenue declined by 70 percentage due to an 18% decline in pricing.
Joe: A 63% this decrease in tons produced as crude Saudi is a by product of bromine decreased production of bromine is off to a really good indexing production all cross shopping as well.
Joe: No revenue was generated from our chemical products business, yet, while our natural gas business obtained.
Joe: Approximately 68 planes you without in dollar in revenues through Etsy payments Levy.
Joe: Gross profit for the quarter was amounted to a loss.
Joe: Oh.
Joe: 508.0 thousand dollar compared to a profit of approximately $14.5 million in the previous year.
Joe: Partially our bromine business suffered a gross profit loss of approximately one $1 million compared to a profit of tailpipe find me a dollar Wow crew start achieved a gross profit.
Joe: <unk>.
Joe: 511.5 thousand tons compared to $1.9 million previously our politics our proximity.
Joe: Company incurred direct labor and that's your overhead.
Joe: Amounting to approximately 1.0, you own English plant shut down.
Joe: Compared to approximately 1.9 previously.
Joe: General and administrative expenses work.
Joe: Approximately 762 9000 draw them compared to 508 full points I have done previously.
Joe: Consequently.
Joe: Our loss from operations was amounted to approximately $2.3 million compared to a profit of approximately 11 nine.
Joe: He named all are in a period three are really the net income after tax was a loss of approximately $1.8 million compared to a profit of approximately $9 million and then net loss per share.
Joe: Was 17% compared to a net profit of 86.
Joe: Results for the nine months.
Joe: And at September 32023.
Joe: He doesn't use over a nine months declined by one person.
Joe: Decreasing approximately.
Joe: Approximately 23.2 medium two alone.
Joe: From approximately $47.5 million.
Joe: I actually Rami revenue also fell by 51%.
Joe: From approximate $27 million from approximate 41 point magnetar, notably there was a 9% increase in bromine tone suite, reflecting the addition of fetching.
Joe: Number eight.
Joe: However, despite this the gross profit margin increased two 7% down from 57%.
Joe: After the nine months the average selling price.
Joe: Bromine worse.
Joe: $3493 per ton compared to the previous of 7674 per tonne.
Joe: Revenue from crude Salt also declined.
Speaker Change: That's one question.
Speaker Change: Two o'clock snake coupons $2 million from approximately five point family dollar while the production volume deep client, but you need one person no revenue was generated from chemical business yet.
Speaker Change: Conversely revenue from natural gas increased by session percentage from the agreement leaves.
Speaker Change: Gross profit for nine months.
Speaker Change: Total to approximately $2.7 million.
Speaker Change: Compared to $26 4 million.
Speaker Change: Especially the plot Romney business are cool.
Speaker Change: Our gross profit.
Speaker Change: Apache maintained $1.5 million compared to approximately 20, Samsung Sony and Dara in the previous period.
Speaker Change: I'll close off business achieved a gross profit.
Speaker Change: Oh, approximately 1.0 meeting tunnel compared to above maybe.
Speaker Change: $2 6 million. Meanwhile, the chemical business recorded no gross profit and in natural gas and mapped our gross profit.
Speaker Change: Oh.
Approximate $150000 compared to approximately.
Approximately 172.6 thousand dollar previously.
The company incurred badly, but and affects your overhead dealing the plants shut down.
Amounted to approximately four $5 million compared to approximately six point, you'll need a dollar in the previous period.
And the administrative expenses were approximately $2.3 million compared to approximate shrimp on formulary at all though I previously.
The result.
Loss from operations were amounted to approximately $4 million compared to a profit of seven.
17 pounds zero, meaning.
As previously made.
Net income was a loss of approximately $3.0 million compared to a profit.
L plus $7 million previously.
And net loss per share was 29 cents.
<unk> <unk> to a profit of one dollar antennae tuition.
Cash flow.
Given the nine months ended September searches to the Tennessee, They generated approximately nine $9 million from operating activities and invested approximately 15 $2 million primarily in our.
Third protection program.
Balance sheet as of September 30th two downtown D Street, our cash balance was approximately.
103, 8 million dollar based their shares issued and outstanding.
Envied by September 30.
2003 that translated U.
$9 95.
In cash per share.
The net net cash which is cash minus all liabilities worth.
Worse at dollar.
Turkey once it is sure working cap too.
Worse.
Approximately $10 and cents per share.
Hunters shareholders' equity worse.
$267 million, approximately Oh, Chinese small pond 99 per share.
So now let me turn the call over to Mr. Liu for some additional commentary.
Okay.
That's all.
Right.
How long ago.
Ed.
Okay.
Okay.
Oh I got it.
Uh huh.
How what's the philosophy old or something.
So as you figure out where you've got a lot of hunger highlines. They are already or do you think you'll do that.
It'll go your way.
But you're going to do well.
Sure so with joggers shot down.
Felicia well member sounds good a shot yeah, greig, either and that's really all you. He shall ship. So I'm glad you had to go through something the teams are you trying to talk to you in the year.
Sure So Tacoma round yourself, Shih-tzu shingon being Dottavio Ocean and he's younger Jetblue adult she gave me a chance to show that she told yourself.
It didn't go up in music.
They show us with their child shingles ships, you know for sure what they're tied to well maybe cheap they show a suicide mission because she chose don't quite well so well of course as James Harden Pete.
Yeah.
Josh you assure that didn't ship hook sushi there all the time she.
Well its issues she chose Linda to go do it.
Sure so the going in there so.
Shouldn't it.
As I told you. This suite and you are they are in it since some time now and does so cheap.
What would you currently I'm told or whatever that's usually the torrential Showtime now susan's her Sylvia yourself so don't.
Did you say did you moved here I mean, the juices on how well it doesn't suit.
Well, maybe I'm in the New Jersey, as Hal juices attached to those students.
And Oh, so you will learn to figure out a shrink Joe.
Yeah.
Peter.
Yeah.
Sure sure Archrock hook it sounds that you are.
A woman so it doesn't the Joker Bill Wheeler.
Sure well May June trips ago, what my uncle's house. So it's also a bit of triangle peso. So it's just all women.
T D.
So yes, it Didnt show so that you can choose either a really cool.
Well, they're using a short there no social.
Grew more.
I feel it's sort of social Don.
Couldn't go though.
But as you go along.
Warmongering barbell sort of sits on chocolate toolkit conjecture sugar.
From a golf or Muslim government, you're going to get you the sitar bearish about the heartbeat, she's a little quote.
The Docomo Turan Gartner says don't have done well with our younger.
Sounds good.
If you do.
Briefly so that they won't be out she'll take you off the hook.
Oh, what might show you that because it wasn't called the Puget being these young woman third.
Brenda.
Apparently a colossal contact.
Right.
So he is yeah. The month from Mr. Shopping deal that comes in see Al first of all and the company's CFO, Mr. Shelby meal they'll come all of you to attend the conference LLC third quarter 2000 Street earnings Conference call in the third quarter. Our results were are diverse.
The impact he buys up diminished price of bromine.
Should be able to do this job he applies to two major affect us.
First the sluggish state of the construction market in China led to reduced coach has a bromine for salary cut and application.
Secondly, the one you impact of call me too pedantic resulted in decreased demand for bromine in medical instruments and sterilization.
Despite these challenges our company the most optimistic about the long term.
Yes.
You clearly put in us.
Bromine demand and supply we still continued.
<unk> page on research in demand of bromine based across that.
And emerging products, such as deep and bromine bedsheet.
Neil maybe pinpoint that.
Acuity is fun.
Thank you Mike Goss.
However.
Why of bromine continues to be cost change notable not only based on 2022 production data.
S teammates you probably over 75% teach uncle global bromine production is concentrated in regions like Israel draw down and you're correct.
Currently space military conflicts of laws.
Adopt a prudent strategy, mainly due to the market.
We have held back seeking approvals the old pump action number two and number 10.
We await improved pricing.
Pricing.
Additionally, we have postponed.
The procure ment of the final payment of all chemical factories.
10, Carfax U N T. A weekend can be yours, he touch into opportunities.
Well, you really a chief Rami contents, we have scaled back our suite.
Anticipating harrington from future sales.
Since the end of the content they have a reserve of Greg you, but consistent uptake in the marketplace alcohol me.
We are monitoring the events in the middle East recognizing that any disruption in the C V D could fund any I'm not the market dynamics looking ahead.
They shouldn't return to profitability in a false economy.
I'll touch.
Moreover, we end to progress with the opening of all chemical sketchy, Oh opinion approvals for our remaining two broadly soft cheese and ideally we see them in our natural gas and brine exploration in Sichuan Province.
So.
And now we are open for the question and answer section.
Hi, Jim.
Yes.
Thank you at this time.
We will be conducting a question and answer session. If you would like to ask a question. Please press star one on your telephone keypad, a confirmation tone will indicate your line is in the question queue.
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The first question comes from Alain.
Uh huh.
She is a private investor please.
Please proceed.
Yes, good morning, good morning, 11 minutes.
No that's great.
Hi, good.
What happened in Q3 of <unk>.
Couple of quick to ask your questions. My first question is could you explain why there was a delay in the 10-Q filing in Q3.
As well.
So here I told you unless you have a good transaction and in Georgia.
To say that Kevin Keegan limitation for our nation to get you do what you say, yes, she shambo vishal.
Yes.
Okay.
Hello.
Yes.
Hi.
Sure.
Linda <unk>.
So just to I guess your granddaughter agendas are so low.
Okay.
And then this quarter is a delay in filing was because that to all the parts. They need to you know mall documented all materials when the way. They do it is they are reviewing.
Yeah.
But yeah, that's yeah, Okay, hi, it's not a fully OTT quarter. It looked like your 10-K.
So I'm curious a little work there.
We're concerned about in our quarterly filings.
Okay. So there is a reason where you had some delay.
My second question. If you don't mind My second question is regarding this.
Prevention investments.
So does that already mentioned in the past that's definitely we wanted the company to consider some correction.
To mitigate the risk of flooding and I think that's great. It's we're happy about that the only thing that surprised us is that we learn that Las Vegas. So I don't know when the decision was taken to learn last minutes that we have a 50 million dollar investment and that's already $15 million being spent in Q3, that's what it's kind of a surprise to shoulders.
When was the decision taken to make these 50 million dollar investment.
Oh, Yeah dogs of MTN, Nigeria, and that two of our top $10 or so claims you got a phone call.
To the sound more that to go home called publishing keeps you.
Oh sure of buying Patriot, which how long we should have a median age of the chalmette tagging. They showed a P. D D edge, which once I gave them constantly that phone when you take what's in Poland to champion against it and take.
Having said that it's all that and now that the Hanjin, who additional tones he or she would have began extrajudicial tacked onto your balance sheet.
He got some Oh, just wrenches are Fuji the follow up to that.
She comes in but that you know Sheldon won't you won't see.
With that Michelle children, let's say if it wasn't that you got.
Just you eat the Ginnie coupons in the shop.
No.
Uh huh.
You send you do that you have is it.
Hi, Anna even worse during the September excuse me.
Oh September any language has been shifting yeah, you're right where to spend $15 million in September.
Okay. So it's kind of a.
Oh, Okay, I mean that decision you'll need the final decision of where it was you know the decision because this is a 222 plan to spend about $50 million when was the decision made towards.
I just find it.
Shareholders find it interesting that so we just learned about different suddenly towards 15.
<unk> been spent so we would have liked to have a little more of a warning. Okay. When you have made the decision to do this I took it just took them out there.
The question is how much do you spend on how much you expect to spend in Q4 because of.
Of the $50 million.
Yeah.
Nicholas Tigger basketball he said he bushnell golf that you want to talk about that.
Uh huh.
Uh huh.
Maybe play out.
God I sent home without media engine right.
Hum.
Hum.
Okay.
Okay, and then maybe in Q4.
Oh, Yeah, you know the.
Projects will be.
It's Pat.
That's where you'll find me approximating $55 million in Q4, okay. Okay [laughter] I'll.
Thank you for the information.
The last sports season regarding the four main pricing in markets.
Hugh you have restricted production in Q3, because the price was pretty low it was.
Great oil price at the beginning of Q3.
I'll use due to restricting production in Q4.
Or do you expect to go to full production in Q4, what Theyre very full production, okay, because it's winter trend where smoking is highest.
In the summer Okay.
Okay, Oh geez, you're not in a bad design gives a much older social Paydown book, all my even called it out see how can they be in decent you'd know Shaun if you just hang out or should that you can shut down the street here.
I'll call each other they need until J D would you call who should go shop, okay that'd be hazardous duty.
So as you know you go in there isn't a chunk of it. This is how you go away whether you've got wasn't done Don.
Oh, we know of Boston and go through that you guys hired a knee or maybe really just assess jackson as a whole pool will see my mother caught out.
Mhm Ciao now are you guys just to source the bulk will send that don't go there you go full suite. So yeah, you will no wait time now Glenn Chin guarantees would you do that and now type of title.
Uh huh.
Hum.
Thanks Ross.
Three geography changes as well.
Cindy I just.
Don't do unless you wish to do what they're supposed to get where they need them together well me here that I need to go into a stimulus and today you referred to.
So you shouldn't have the telco E G.
Tony Ocean.
Okay.
Hi, and I can't get a response from this new let's see you now because we see the bromine price is easily probably stage.
Mhm.
And are we seeing to seem to eat on there. If you can comment stage and we should notch lagging passion of our protection at all so we estimate the production volume may be will be similar as it <unk>.
Last year Q4 quarter fall okay.
That's great that it will be you know.
D Wave Inc.
Because.
The you know that C region, the CTO Asia no.
Alert market dynamics, and the pricing of bromine as well.
So.
We are monitoring events in the middle East.
Okay.
And regarding that I mean, I've seen that the price of bromine outside of coming from that would be good news coming from the U S.
Higher than the price of a woman China easily export team looking at the possibility of exporting some bromine to Asia like to Ingo to Singapore.
Sports does close look that up.
Hum.
And enjoy the outdoors, what that make one at the end.
It just shows you the jogger how that sure he'd have us you'd have to pay too much we can get our Calder casino milk Hollywood can slip back at the show so to close out your tenure teaching yeah dual teacher Fleshing out boy Oh, we added that she would have got you know quite yet.
Yeah sure.
So the things that go from here.
I'm sorry, so much oriented should be meal goes up because that's what what are you and this is on behalf of <unk>.
From Johnson outdoors.
Yeah.
So you want me if that's wrong.
This is a figure on how she also the size of the units that will push us out from there.
Or are you kind of uncertainty out there.
Yeah, So you're right.
Or going to sit here that's correct.
It was all about.
Dr. Katz will go to trying to get figure for your feeling about the topic.
Yeah.
Hi, Anna.
Firstly it calls you know that downstream of bromine.
Industry are majorly in China area, but nothing you know Asia, so that made the Mt.
Adhere and secondly.
Because bromine.
So it is very dangerous subtract part and they're trying to colocation caused by high.
So based on these two factors we seem to if we wanted to translate that to what you say to Asia other countries and it's only because I've not seen that or maybe we have to evaluate to the you know in the morning till the market condition and to evaluate the cost and that you know the benefits.
Yeah, Okay that would be great I think if you export vessels, which we could look at that that would be a great thing. Okay. Sorry for all these questions will be for longer kit, but thank you very much for your answers okay.
Okay Youre welcome.
And then just if they have got hanging a hazard ratio uncles number ones without a D C.
Yeah.
Hmm.
Hi, Thank you.
Okay. The next question comes from John Smith with Golf Resources. Please proceed.
Hello.
Can you hear me.
Yes, Hi, Joe I was lucky Okay, Hi, My question. The first thing I just want to say.
Thank you to the chairman who has been with the company for a long time, we've done a good job building the business and I think the currency I was in a good spot to take his father and continue the good management. So the first off I'd just thank you.
Hum.
So that's my question goes off the lanes question on the bromine I'm looking thinking about we've just spent $50 million and the flood pro prevention. That's that's good but if.
If we could export some of that bromine I understand the cost would be bad and I think looking at it from an economic standpoint, it might not make sense, but if you could just export 234 $5 million a year and you could use that money to buy back shares.
It was shares right now at an all time low that would instantly double triple quadruple the times five the market value. So I think you guys do a good job running the business, but if you wanted to bring back share, but shareholder value I think you need that look just look at it from economic standpoint, but from the shareholders' standpoint, as well and it's good for you.
They pay you guys are selling stuff in stock at eight Bucks a share I mean, the stock would skyrocket. If you guys bought back 2 million shares at this price you could do easily so thank you.
Okay. Okay. Thank you. Thank you.
Oh, it was on timberland tissue like a drill ship jamba crashes shortly shortly I know fish hard until share.
Gotcha Yundong someone's romantic wants to know for sure. What you mean tactical vehicle found about promotion of Florida I was wondering about with that challenge in Haynesville.
The shaking function that you're in the casual yes, he's a fish out there she can't get what are the schools in Shanghai. The fact that you have.
P J.
Yeah, Yeah, Hi, Joshua Joe Shan Shan shall I take Hum Gogo L. NT dollar to someone who's well what makes football choices without the agile with how can I do from colleagues I'll take the suite, you know kind of pushing them up.
Sure Craig.
Without that either exit the shipyard youll kind of have Keith I'm going to have that Heartland Doyle shanty twilio into the same issue Michael.
Calling out goldfish, Amanda Yeah, Oh is that you're going to live with him. Some trials in the hall now Jasmine Tea Eagle question, you don't give the facts.
Actual or the channel that had that you.
You don't need a chance you probably won't want to see the official partnership a keyboard and a J.
Okay.
Oh sure.
So what we would call it a new way of Shaw.
Sure sure.
Hello.
Cost me a weekend.
Or is that some of what's your feeling on that.
Sure so what many of you there.
She got you here.
So if I read that your girl.
Sure.
You called out or maybe there are quite.
What did you get in front of them accurately.
Uh huh.
Okay central that much worse.
Consider about Yogi said, you know suggest chip and by the way and we just want to say.
That's because there's no raw material is a very dangerous material your insurance quotation.
So there might be some special requirements, you know problems a government policy when we want to export but anyway, we will do more research on this project and there to see if we can do with it.
So if I understand it might be more expensive, but again, maybe even if you lose some money.
It really boosting the stock price, but thank you.
Yeah, Matt I have one more question.
Yeah. Thank you for that.
Would you.
Hypothetical would the company.
Right now we are a valued so low compared to our worse would the company think about I take.
Say 15 $20 a share.
Obviously hypothetical.
Yeah.
What do you mean 20 or $15 per share.
If it would you.
Consider a buyout at 15 or $20 a share.
Okay do you mean, Banco Prevert I'll sell to come there to go if someone bought it for 15 to $20 a share yet.
Yeah.
Okay.
Don't do as well I think didn't even realize wow, yeah, Jack Cozy oatmeal connected college I shouldn't cause jago, how deals like that that show up Washington D C.
So a lot quite a ship back once it may go.
Mhm, making a male colleagues.
No we don't think about it currently.
Okay.
And then I have one more question. Thank you.
Flooding the big for it to happen soon was that I think 2018.
That causes a 40 million dollar damage if that were to happen again under the new flood plan what would your estimates where do you think how much cost would that cost the company a very similar typhoon hit.
After your.
Prevention.
So that probably shouldn't okay, there's one decided although who knows each on that total roadblock.
Yeah, I don't think you may want to acquire a lot of trouble us fish and the median budget that she and she's watching a small couch.
Yeah.
So can we just saw that he got some wholesale proposal what that flash until should go out and eat vanya downstream as it hasn't grown much happen daughter.
Traveling a lot considered oh, my gosh, a woman that I take the essential question got to wash out.
Uh huh.
Clarify something just from a rebound here now, but without a doubt.
Ah well known death rates, you're going to do it for yourself.
Or would you just as a quick the sunbelt really.
Your children and go for it.
Yes.
Mhm.
Yes.
Like are you seeing a typhoon as you know 2018 hectare again after August flutter probation.
Project, we've seen cut the cost you know for us to catch everything down again there'll be very few maybe around three to five media. We can't finish all offset you know with habits.
Wow that is a that's really good there that's true so that makes the plans seem a lot better.
Okay. Thank you.
Joni you.
Yeah mages are pegged to.
The shuttle tanker.
Yeah. So you kind of know how to fish oil Hudson.
Honey.
That's it.
Thank you.
Okay. The next question comes from Randy look at private Investor Randy. Please proceed.
Hey, Alan how are you.
Hi, Andy if I hear you.
And Dan. Thank you I'm afraid I'm not going be as nice as the first do you guys. I mean this conference call. It sounds like the same one we both laugh.
Turning to page 10 conference calls and you know I mean.
Yes, it doesn't sound like management has taken to heart.
One idea that investors had blocking them.
Okay. The flood prevention plan, that's fine, but you know we haven't looked at advisors can help the company.
Management's fan with the blame on facilities and remediation of the facilities and all of that Scott They cannot and had shown they cannot enhance shareholder value if anything.
Look at the price of the stock.
I don't understand the Snapple and this why we will not fire advisors to help management get through that.
It's just normally my I would think you guys would want to get paid.
We would like to get paid for Heaven's Sakes. If somebody offers as John mentioned 15 to $20 a share down on their daughters long. This has been going on for how many years.
And you know this is all fine and Dandy, but we keep growing I mean, we're just talking about the same old stuff every conference call and flight management does not listen the one thing investors.
Alright, just throwing out there for ideas.
And you know I.
I mean, we look at where the stack what was that.
I mean, $1.50 and I haven't even I haven't even done the math on the reverse split I'm sure somebody on here, probably knows that but wind is management going to wake up and listen to a few things that we're suggesting go higher.
Zero.
Please I mean, I don't know what else to say, okay, where do we stand in negotiations with.
No.
The local government on this gas natural gas, we've been talking back for how many years now.
I mean, I can't count the years.
It'll be dead before all I'm joking, when I say that but I hope not because I mean, the values there and in fact, we don't do anything.
You guys would have liked to hear back.
Okay. Thank you I'm done 40 minutes, sorry, sorry.
Oh, Okay. It's okay. It's okay don't worry I got you.
Those aren't just two Robbins is should I be Randy that that'd be nice.
Sure she thought rather towards the purchase accounting that happens if you don't how he does it have problems and doing so.
Our goals are to shed some light on your I'm done well naive it shouldn't take me and tell me you are not considering any Ah ha and <expletive>.
Oh, how cheap on schedule shows well, yes, we have made sure that you've all of this whole change. It holds in there you get a whole bunch. It you know what you have got a handful. So before I was just kind of got hit you on teeth out of that sure quite a actually quite cancels will go into the shipyard does it come out once a more kind of yeah wasn't Georgia, they do histological consular guanase home should be.
Like in Asia.
So the issue I don't have a teacher.
He is from China, how to ship.
How does that come there Jamie Pierson look out who should be sound vomit, you are going to get bundled into that she's going to disappear backward yeah tissue shop.
Yeah.
Okay.
Yeah.
A woman with call.
Call It quickly to go in.
Joe sits America.
Uh huh.
Or at least on that you'll see in a way to put me on the chicken go Stifel Joe.
Hum.
Hi.
Thank you it won't really change.
Interesting.
It shouldn't be a rundown I hope.
Oh I'm sorry.
Because they're trying to jettison take off also.
They said they want me to wait just a teacher whoever we're going to go into place it gives us.
It's interesting since you come to you.
Hmm.
Okay.
Hi, Andy Thanks, Ram I polyol.
Comments.
And yet.
We want to say that we have been always and they're thinking about our shareholders, you know and how to reward our shareholders.
I think the beginning I'll, maybe back last quarter previous quarter as we were thinking that because you know we have many production night. We wanted to have all our production guys to be more you know online all finished.
He can talk to a firm to see holiday can you ask the idea based on our ideal business model.
And in order to help our investors increase our shares.
I can now based on all of these comments and the based on the current situation. We may seem convinced at alone and we will go to talk can see they'll go to talk about was the Arab to see based on you know what we can do now.
Hoping you can help us do more promotion.
And to increase the awareness.
Of the company and that.
Chris I'll give voice to our shareholders.
I mean, that's fine and Dandy, but we're not doing anything to do it I mean I wanted to see you know, we talked about and talk about and I know I'm going on and on I'm going to get off in a minute.
If you're saying right. There I mean, you can call you had Chinese investment bankers do you had international investment bankers that work all over China.
I mean, I, just don't get it where we're spending all this money all of a sudden them.
Yeah, we don't want to go out and regain somebody to help us realize the value in the company I don't get it.
I really got it okay.
And you know me I've been around a long time and you know it yeah I know.
[laughter], yes, ma'am I gotcha.
I gotcha.
Okay, what about I noticed you.
Got it.
Yes.
Yes.
Okay.
That's why I E.
<unk>.
Yes, Matt I mean, you know and there would be no reason to turn down 15 or $20 more afternoon. If somebody were to make that I mean, no weird I think shareholders would jump up and down for Joy and say with marriage, I mean, where are we with the negotiations with the local government in natural gas.
I didn't I don't think he answered that unless I missed it.
Okay, Oh, that's usually a hydro comes at a.
Randy it's actually registration I'm going to now.
C. J S fishery, that's the way he or she kept the alcohol and so forth for all kinds of alternate Michigan.
It just depends on what he had just shot weapon, that's trying to I'm going to jump in Oklahoma's them yeah.
Okay.
Okay.
Hum.
Sometimes out of retirement to you sure Oh.
He said he would get telephone did you view of Adobe and juices.
She'd been Jason lesions at journeys.
Does it concern.
Those ones you said you have seen the hypertonia of her children.
Oh, Hi, Andy because you know in the Sichuan project, Sean probably project that you all 10000 and they have some they have some new ideas come out in their mind and there are some new competitors put us in a.
Does she also you know come out.
So we are still at the end of the discussion.
Local governments on this project.
Your cat.
I mean have you even thought about going to China, Patrick what what's the big what's the big companies that has natural gas that next next to wear.
Yeah, I'll aim of land once that got the Big company I mean, I don't know why we don't go to them.
And tried to do a joint partnership I, just don't get it.
Now I'm going to keep quiet.
Thank you for your help as usual.
[laughter] No World Cup Yeah, Okay.
Yeah.
So should I take our amazement goes up huge out whom she also even though it was one.
The problem in Geneva.
Tokyo Tasha <unk>.
Shambaugh, but it wouldn't be in there I presume that's all.
There were machines out of just any sort of second half I will find out very quickly.
But what you get.
Mhm.
So because you know China mantra, they do not tell they instead of you know call patient. They just wanted too much as a company.
So we seem to be not so what do we want so that's why we were looking for the cooperation with local governments you know.
And the jewelry that discussion with you don't call government and there are some new competitors had come out.
And then Dan Gardner to have some new ideas easier mind you know so that's why this discussion is still out there.
Great.
Okay.
A quick question since you brought it up I mean did they what what did they want a bad because they just weren't a bad that natural gas field or what are they talking about.
Do you mean, China Mitchell.
Yes, ma'am, yes ma'am.
Yeah.
A little less known Joseph.
Don't feel good about how much youre going to shake out the analysis, the 'twenty and now she's had you shall woman that's involved.
Catchy how you found that wasn't the John glad that he thought he had Napa Holt, Michigan once you cancel Georgia.
Bill.
Yeah.
Hum.
With either your share it just a quarter.
Joe if we owe it to them for their use yourself out high yield Chicago, Yeah backwards I'll show, how many are good for the sheer telephone than me with just what you're doing agenda here switching gears, a little harsh, but Chilean though.
Okay Hi.
And you know the discussion on these kinds of agreements no neither ways a local governments all perpetual channel either companies.
It's very complicated, but they are a lot of items.
Oh, crikey or is a to discuss and yes until it's finalized and until we can have you know us I know.
You know decision Oh, whatever we cannot sit you know talk too much about it.
Okay, well I mean, one last comment please go hire an advisor.
Week, there are plenty of them out there that would take alwan stand a little bit of money with them to let them see what they can come up with please go ahead.
As usual okay.
Okay. Thank you.
Jim.
The next question comes from because the whole idea.
Okay. Okay.
Private investor Tom.
Please proceed.
Thank you for taking my questions.
I have a few questions I hope you can hear me.
Yes, I've got to you Tom.
Hello.
So you know.
No the.
The typhoons they hit in 2018 and 2019.
And we are in 2023.
I want to understand the reasoning for proceeding with this flood prevention program at this stage, so I want to understand the management.
You know Todd process on why the decision was made.
Two.
Proceed with this flood prevention program currently and the second question I have a series of questions, but just on the flood prevention I want to understand why the management notified investors only after it had spend already spend a third of the predicted expense.
So is there a reason for this delay and in no defined the shareholders and I also want to understand why the decision was made to proceed with the flood prevention at this stage.
Okay I got you.
Oh that's interesting.
Golden visualize it home that held out another T D tissue conservation measures referred to it would have already got ebay Adrianne flash on that based on local and central direction that I didn't understand your chicken surgical xiaomi.
Yeah, Yeah, you should take a plane to go see them eventually Joe Shoen for I think the Shaw media and have had you said it sounds like you do to fashion innovation, we're going to be doing for us actually hold the did you ship out of Chicago, that's a pure flash or the xiaomi.
Well it's.
It's all got to catch up.
Yeah.
Okay.
And so it's very good you guys doing a bunch of old day, so well see how they drove into you. Just you can contradict each year Kimco is do you kind of have gone as high as that she territory gotcha that mature so anything else that you're inducing a downward I don't want to get out there.
And that's why you see the big affiliate with tenants what are your Butler.
Just a visa there are good just as lesser or when they're ready to go seek or just.
In Costa Rica.
I know you Gotta Giga Genie should show you just your choices.
Uh-huh concentrate don't you do Japan, that's what I want the meal. So.
Toyota Michigan.
Okay. So firstly hum.
Because you know after the typhoon <unk> in 2018 and 19.
We want to tweak we have to evaluate you know they surround him area and our main area of twisting tips on how to do. This then we see you know other companies how they do it until they finish than we've had in doesn't sound knowledge from them and a kid from Dynamo and after this date.
We think it is a very appropriate period time stage to do this he has said we had more about age and we learned a lot from others.
Good question.
Cause you know we think this cluster was a like a normal operating expense, which is now thinking it's a very you know.
No I'll know more so race happening in Q3 and.
We just disclosed in our 10-Q to our investors.
Thank you that sounds like a reasonable explanation I I want to get a sense of.
The $15 million expense Ah Watson I think from one of the other Gentleman's question I understood that the remaining nearly $35 million was going to be spent in Q4 is that assumption correct.
Yeah.
Yeah.
Probably yes.
Okay.
My my.
My next set of questions with regard to you know previous implement.
Is the management would consider buyout at 15 or $20 a share and I think the C U E.
And said that they would not consider it and I wanted to get a sense of why they would not even consider that and the reason as you know 2017, there was around $209 million in the company's books.
And I felt this release, there's only half of that $104 million or so and so we have gone through a period, where there's not been much return for shareholders. It's been not much value has been created actually a lot of value has been decimated in the last.
Last seven years, or so and so I just wanted to get a sense from a shareholders' perspective, why the management would not even consider a buyout at 15 or $20 million in Oh authority.
Sure.
Hi, Tom I think because this question, we just discussed in previous quarters.
Firstly company, we'd have even though our bromine business segment, even though not you know it's in the radical with Asahi and not be called bromine prices and I know now but went from your price increase.
And Chris I'll come to back to its normal price our business. It is a very profitable use this bromine segment than our natural gas in Sichuan Province of also have a peak of potential because the concentration of the bromine Celsius.
Very adult reach.
So to our technical business, even though now chemicals are not online yet, but we have very confidence in all these segments as well so already.
And then Rami associates I didn't take the resources like our various steel production in the work. So overall, we think that all we have quite a competency in our company. So that's why we do not the country either to sell it at a 15, a time they've done a currency.
Yeah.
We have reached the end of the question and answer session and I will now turn the call back to Helen for any closing remarks.
Hi, operator, I think if there is no more questions. We can close for the call today, because it's not 10 minutes come out.
Absolutely yeah.
Well come at you for any shareholders have question Kathy Brady to email me.
And I was happy to respond.
Then on the emails as well.
Just keeping in touch.
Yeah.
Thank you.
This concludes today's conference you may disconnect your lines at this time. Thank you for your participation.
Okay. Thank you you have good night.
Yeah.
Yes.