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[Music] good evening ladies and gentlemen and thank you very much for having me here in Edinburgh this evening and so okay so let's talk a little bit about social minerals and what we're doing in a progress update ding so the picture there is our projects out in Nevada and that was drilling over the winter of last year and January and so you get it's pretty cold in the winter disclaimer a little bit about the team we're a small team but were a team of experienced mining professionals with skill sets running from expiration and right through to development and also finance my background is 2000 years experience working at the coalface developing mine projects managing mine projects and various parts of the world so very much an operational background okay so what is what is our aim our aim is to become a reliable long-term supplier of high-quality fluorspar to the world markets to be revenue generating in the near term and I'm going to talk a little bit more about that and add value to our mineral projects and through discovery acquisition and development of Mineral Resources okay so a little bit about fluorspar some of you will know quite a bit about Lewis bass some others not Fleurus fires the commercial name and for fluorite so it's calcium fluoride the so it's commercial source is a chemical element of fluorines basically and it's it's the lightest of all the halogens so pretty high up on the periodic table and because of that it's large largely irreplaceable to commercial grades are made globally we've got metallurgical grade which is a low grade calcium fluoride ranging from 60 to 96% calcium fluoride and then the premium grade which is called acid spar or acid grade that's running at about ninety plus ninety seven percent calcium fluoride and low silica and that's the product that we are aiming to produce from our assets just a little bit about the uses global fluorspar market is about six million tonnes five and a half to six million tons and the acids file which is what we're looking at represents about three and a half million tonnes of that market to key uses one of the main uses is to make aluminium fluoride aluminium fluoride is used as a flux and to make aluminium it reduces the melting temperature and then the bit the largest use by far is hydrogen fluoride h-f h-f forms a base for probably everything that we use in daily life and so you know household names like teflon and gore-tex the base is hydrogen fluoride the largest use is actually refrigerant gases so a lot of you will be aware over the years with you know historically refrigerant gases have had a bad name they from an environmental perspective so you will remember the old CFCs then there was this development more environmentally friendly less ozone depleting gases so the CFO's so the hf OS and then moving into the the more the sort of new gases that are coming onto the market and that's been driven by environmental legislation are the HF o--'s developed by companies like sort of Zhu fonts and Honeywell and so the important points about you know the chemical properties of flooring flooring is in the gap in these refrigerant gases there's no replacement for fluorine there are some alternatives like co2 but they're not as efficient and they're not as safe okay so other sort of emerging uses lithium batteries for example is an emerging use modern medicines more than 50% of modern medicine formulations of fluorine in them from one form or another okay so we just move on to the market a little bit and the major you know like a lot of commodities the major producing regions china produces more than 50% of the world's fluorspar and then you've got other key regions Mexico Mongolia South Africa and Vietnam are so the key producers major consuming regions China North America and Europe are the three largest and basically over the last sort of supposed a decade 98 to 2008 we've seen this sort of a steady rise in Louisville prices and that's basically being driven by downstream demand but also the China dynamics you know if you go back 10 years China was exporting sort of 40% of its produced slowest bar that's down to about 10 percent and the forecast is in the next few years China will become a net importer of Lewis bar and that's because of their downstream demand for the for the end products 2009 financial crisis we saw a contraction yes it's bar price a lot of that is basically we're going through this transition zone I talked about the environmental legislation this transition between the HFC to the HF OS so we you know we are going through that process at the moment but actually that does form an opportunity for us and I'll come on to that so current prices are running sort of 250 to 300 dollars a tonne fluorspar that's the acid spar that we were talking about earlier okay so just moving on to the opportunity you know the industry forecast produces end-users analysts is that demand and price will increase and that goes back to this irreplaceable profit Lewis bar there's no large-scale alternative or recycling the florists bar and we've got this refrigeration the generation of the new HF O's again key elements is flu aspiring there you've got energy reduction which thoughts about the aluminium floor fluoride has been a key a key end-user what's happening because of this price you've got a lot of the higher cost mines of closing and permanently closing smaller mine operations high-cost underground mine operations but again that opens an opportunity for furrows and I come on to explain a little bit more about that actually the the dynamics the market dynamics and the economic importance has been recognized by the EC so it's recognized as one of twenty critical raw materials in Europe it's also recognized in the US as a strategic mineral the US imports 100% of its fluorspar you've got the major companies like Honeywell and DuPont which are the key end-users there so I'll explain how that fits into our strategy it's um you know all of these drivers you know we've got 13 point 1 million tons of Joc proven fluorspar containing the ground to capitalize on these opportunities in the future ok so where are operations where we you know where we where are we located so we talked about Europe and the u.s. being key markets outside of China Europe being a net importer us a hundred percent import reliance so we've got three projects we've got two European projects we've got the Sweden project which in north-central Sweden that's our most advanced project we've got the Norwegian project which is in southern Sweden and more recently we've taken on the USA project in Nevada you can see how we've grown our resource base over over the last few years so you've got 2010 we've got no draught resource base we've slowly built that up so we're now sitting at 30 point 1 million Suns job classified contained closer on the ground some of you may ask why continue to build your resource space if you're going to be taken seriously by by the key end users the honeywell's and the DuPont's of this world it's really important they're looking at security of supply they're looking at long-term supply contracts so it's actually for a small company like us to be taken seriously it is important to go through this process it takes time but it's important that we do that ok a little bit about Sweden's most advanced projects as with most industrial minerals infrastructures a key part you know the cost or the prior to selling price of industrial Millers don't carry large infrastructure projects so Sweden you know it's it's it's in a great location this is the main e12 Highway which runs literally past the resource the resource just sits in here with 25 kilometres off a rail head this rail head run through down into the port of hooome Oh it's about 240 kilometres and that's this this is now finished now but this is a bulk terminal that they've just been building in Umi oh poor so the infrastructure is already in place ok but about the deposit so when we run the scoping study we did a reverse phase drilling program which produced about 18 million tons just above 10 percent that was non short classified and we run a scoping study on that the capex to build the project about 46 million US dollars that would generate an annual turnover of about 34 million u.s. dollars pre-tax MTV 8 percent discount that 33 million so got a payback of less than 3 years on that project and since the scoping study we've had quite a few developments we've put another 46 diamond drill holes in there and we now have the resource taken through to jock and we've got it high confidence we've got the we've got total we've got 28 million tonnes at just above 10 percents is quite a large resource and high confidence in the indicated category at 25 million tons of that and when we got the larger resource compared with a scoping study we reduced our strip ratio from 2.2 tonnes of waste to or 2.8 tons of waste or so that will have an impact on the economics positive impacts on the economics the new when we did the transport from mine to the port we did the cost calculation based on truck transport because the rail head wasn't built near the mine since then the rail head is being constructed 25 kilometers away from the mine so you know the interest you can see this is the 12 highway that we talked about the deposit literally runs runs past the actually outcrops at surface here so that shows you the lowest rate ratio and it's horizontally bedded a very simple mining operation small mining operation in the it horizontally bedded and it's near surface okay so last year was a frustrating year for us we've you know we've gone through three years of environmental test work we've gone through three phases of drilling job classification we prepared a mine permit application back in July 2014 and in February 2016 we got a 25-year mine permit awarded so that was a good day for it since then there's been a number of developments the mine permit was initially appealed by the semi reindeer herders in the area nothing specifically against our project they are they are against any kind of development whether that's a mine or new wind power project or whatever they do they do sort of oppose any kind of development so the appeals went through to the government but since then there's been another development some of you may note as my metals down in southern Sweden the rare earth project they had their mine permit revoked on peel last year as well and actually the basis on which they had their mind permit revoked was that and this is this is new it's a new case law in Sweden is that the mine permit historically only covers your resource area everything beyond that new infrastructure year tailings facility was always covered through the environmental permit process what they said is you need the EIA needs to cover the wider area on a mine permit application so they got it revoked on that basis so a whole raft of applications either in appeal or waiting decision have been reverted back to the mining Inspectorate for reassessment hours sat on the desk of the government for the majority of last year and then you know we knew which way was going but it's gone now back to the mining Inspectorate for reassessment under the new case law the difference between us and the Norrish our case tasman is that we did do a wider aia on the tailings facility on the infrastructure when we submitted our mine permit so you know bearing in mind we've got very very strong stakeholder support from the municipality from the county administration board from the landowners and put that together with an EAA which covers a wide area we we're confident that we will get our mining permits the timing is the issue because they've got a whole raft of cases sat on the desk waiting for assessment we can't give a time on that we're giving we are applying pressure you know I was up in Sweden week before last and we're trying to get this through as quickly as possible okay Norway and second European deposit slightly different deposit again it fits on the infrastructure basis it's 50 kilometres from a deep-sea port and it's only 80 kilometres southwest of Oslo so again infrastructure is all in place what's previously mined in the second world war by he drone or Cedro which you love all the third of very different deposits of storuman this is a higher grade deposit for 20-25 percent cut to head grade and steeply dipping so this would lend itself to underground mining what we've done with this project is you know we put we we did a resource estimate on the Joc you can see the size difference it's only formally in films at 25 percent the difference is that it's you know it is open at depth and it's open a long strike so it needs further drilling this project we got positive economics on a scoping study and but we've decided to put this project on hold while we progress the leading European project which is Sweden we last year we negotiated with he drove part of the land and the old mine workings belongs to he drove and we negotiated that he drove that we would purchase the old mine workings which will help us with permitting in the future following due diligence for one Norwegian kroner Nevada okay Nevada again which remember remember the sort of key markets we sort of talked about Europe and now the USA and Nevada we've had for just over three years and we've been quite busy on there we've got now 146 mining claims covering over 2,800 acres it's all on BLM land and again infrastructure key infrastructure is in place it's in Eureka County you know 80 percent of the population in Eureka have their lip you know getting a living from mining so they actually wants as there is mining friendly when we first got the project we did two phases of drilling and that gave us a made in short resource 238 million tons at 10% so you can see already significantly bigger to the sweden project we then proceeded with phase 3 drilling and we upgraded that chalk we've now got 86 million tons at plus 10% in the ground there so it's a significant result this just gives you an idea of the size you know the resource is still open at depth and it's still open laterally you know this is plus 1,300 meters this is the optimized pit shell that we've that we've run our my model on and then you know over 1,100 meters you can see the sheer size of it open pit low strip ratio against are similar to Sweden this is our jaw resource area here so last year we completed some further drilling to test higher grade areas or higher grade mineralization and continuation again we hit higher grade mineralization so that the head grade is at a moment just above 10% but we are hitting bands above 20% in the higher grade in the summer of last year we got world-renowned economic geologist axilla toe out on the deposit to to help us really understand I mean it's a big it's a big deposit and some of the geology is complex help us understand really what's happening in where we can target higher grade and so we actually this is a target for us now for more higher grade you know changing a resource from 10% 15% makes a huge difference to the economics of the project a big difference and so we were currently modeling that will model in the work that Dixie litter did for us were doing some metallurgical test work as well so upgrade it to a 97 percent cast to and following the successful completion of that work we're aiming to get a scoping study out certainly by summer this year okay and just a little bit about are running the run in a bit short of time but we have some legacy gold projects we so we've been kept hold of those in Finland we successfully sold those and the back end of last year the license transfers just covering it going through we saw those two a company called Orion resources were very active in Finland they they're TSX V listed market cap of about 100 million Canadian dollars and they've got a JV in Finland with gold miner B to gold market cap of about four billion dollars so they're in there funded and they're serious about the project and we took a small initial consideration for the project of 100 and pounds partly to be paid in shares partly cash but we've got a pre-production royalty so every ounce of gold that they find in the ground and we get a pre-produ tion royalty of one to three ounces depending on the classification and we've retained a two percent net smelter royalty so there's a potential income stream there for the company with serious serious people involved with that okay so just sort of closing on the investment case so with the only UK publicly listed company with exposure to the fluo spa it's a critical mineral one of 20 in the EU strategic mineral in the US and we've got three strategically located 100% owned resources in those key markets and there's no large-scale commercial alternative or recycling we've got broker research here SP angel Tempe 10.6 pH share and Beaufort put us on nine pier share similar outcomes from - - analysts there we're currently running this year we've been running around about the 1p mark our current market cap is three million so a very small market gap thirteen point one million tonnes of resource in the ground current selling price two hundred and fifty dollars a tonne so we think there's significant upside when we get the mine permits and we start to develop the mind we are also looking you know we understand that the process is a long one to get the permits and to get the mind development in place we've recognized that so we are actually looking at evaluating some smaller projects and which we're currently talking to three well tops to three three companies at the moment where we would have a low entry point low capex projects but would give us some near-term revenue it's not a distraction on what we're doing with the Fleurus bar there is a flow aspire project in one of those that were evaluating but what it will do it will make a more sustainable business in the short term by having some short-term revenue whilst we have the medium to longer term strategy developed in the flows for our deposits I think I think I've run out run out of time but thank you very much and happy to take questions I'm pressing anybody and gleaning far as I understand that you see in the America and porch 100% of its requirement yeah Shana's and their importer is moving so long as being a net net importer yeah it's a way assuming as compared to icicles and the mains and basically when you saw the price graph - so you know whilst we've gone through this transition phase we have over over supply in the market and so you know it was a lot of the smaller lines you know some of the mines in Africa where you're a long way to report and you've got you know underground resources with lower grades and expensive producers and so they've been forced out you know some of them are being forced out of the market because of the current price some of them have actually you know getting towards the end of the resources you hit a tough market so go right now it's trying to to close you know these underground mines of being you know they're not they're not being put on carrying maintenance you know they're being shortened and the flooding so again that opens up an opportunity now where we're looking at large resources and you know a large sort of production base for our mine so you know we see that as an opportunity trying you know if you look at America America is key sort of suppliers at the moment are China and Mexico and so when you look at what's happening with China you know we see a gap in the market for particularly in hard deposits then be deposit which is which sits in the bar gentlemen about hello again a couple of small questions dead simple ones I hope 13.1 million tons that we comfortable yeah let's concept that accommodation that's my Nobles that contains was like yes yes second one then I'm in a couple of minors I know how much money goes out the window was the cash position okay so a cash position at the end of our financial year was about four hundred fifty thousand pounds in the bank we're based in Macclesfield and we're the small team our cash burn annual cash burn is around about three hundred and forty thousand pounds a year and so if you compare that with a lot of a listed Gd mining companies pretty low cash burn the projects are on two percent owned so you could Plus that expenditures discretionary but and so yeah you know that's our position first on the CEO salaries material particularly we've got four directors and yet for the four directors we for was take take basically the cost of zones and play down performance of community so to actually continue them we're going to need some cash calls some point and I mean yeah I mean that's the you know our stage in the game that been able to go away from the beast and we're trying to minimize our you know we would we make our money go a long way I think you've seen what we've done on the NB project so you know sort of feel a she were raised about million and but you know we've seen how much work that that's that's sort of seen an end of that year we have 1450 to learn about so thank you for economics could you just comment on your shell debase and how you're incentivized yep so I mean pretty pretty pretty pretty similar how you explore your basically we we have a couple of sort of form five percenters who mercy seek capital and when Sir she was set up no institutions on board and the rest is is normally retail retail holders so you know you sort of seen the volatility on the share price and whilst you're going through permitting issues you know that's but that's the one of the one of the issues and I'm I'm you know I'm my incentive scheme you know I'm sort of have options on various prices on the share price but also on performance in terms of producing the this the measurable sort of let's say benchmarks to you know to go to produce in the mind and that's built into my contract so you know we don't draw massive salaries you know my incentive is building the mines and and you know we we are running the business that we will be the miner you know that's that's my background I've got a mining background so that that's our aim yes yeah okay a lot one quick question in the short term you mentioned fiddling than the recent sale yet does it what do you put a value on that and the short terms long as it could be very short term asset gain for you yeah I mean short term how many can't really only short term it's a hundred thousand you know it's that initial comment there's no resource estimates you've done previously on that no I mean that I mean that's the thing I mean we you know we got when we you know the company was in gold many years ago but we recognized the value in them but we've never produce the resource on them and so in a really pleased that we've got so that you know decent partners on board but they could resource that up quite quickly I try yeah you like that through pretty quickly so so yeah it was a really pleased notice blood we kept those efforts finish it thank you very much indeed thank you thank you you