 Good afternoon and welcome to Investor Intel. I'm Peter Clausey. Today we have the pleasure of speaking with Gavin Lockyer from AeroFury Resources. Hi Gavin. Hi Peter. Thanks for having us again. Thanks for getting up early in the morning to do this with us. No problem. Where are you today? In the office today, but I was on a phone call to New York a bit earlier, so I'm in the middle of the day by now. Are you in Perth? Yes, I'm in Perth. AeroFury is a rare earth company. Can you tell us which rare earths you're touching? Sure. Our focus is on near-denium and praise-denium, two key elements in high-performance magnets, and as most of your listeners and viewers would know, it's in rare supply, so we're looking to be one of the next big producers in the world. So numbers 59 and 60 on the periodic table, they're in the same family, correct? Correct. Yeah. Are they ever found in their natural element in nature or are they always found with other rare earths? Typically the rare earth suite all comes together. It's because they all try and sit in box 57 on the periodic table, so they're all fairly chemically bonded and close. So where you find one, you typically find more. Where the interesting thing is with our deposit is that it's actually enriched in MDPR, so we're quite blessed in that regards. Where is that deposit, Gavin? It's in the northern territory of Australia, 130km north of Alice Springs, which is a town of about 26,000 people right in the heart of Australia. Alice Springs is the equivalent of Kansas in the United States. It's the geographic centre. So it's a great place actually to have a deposit. You're just remote enough in terms of being away from populations, so any of your activities aren't going to adversely impact other communities, but Alice Springs is serviced daily to every capital city via flights. We've got great infrastructure all around us, so it's quite lucky. You have roads, power, water. Yep, all of that. Some of it actually going straight through the deposit or through our tenants, so very, very lucky and very... Now I read that you have somewhere between 12 and 15 million Australian dollars in Treasury. What would be the focus of your spending over the next while? That money will be utilised in our final piloting. This piloting is not so much about proving up the chemistry and the metallurgy. It's more around materials handling and equipment selection, so we're trying to de-risk the process for when we go into commissioning and we're spending a bit of time with a lot of engineering groups, one of them in particular Canadian group, SNC Lavalin, and they're overseeing the work that we're doing that will ultimately feed into detailed design and bankable feasibility next year. You have signed an MOU with a Korean company, I believe. Can you tell us a little bit about the MOU and why it's been signed? Sure, OCI is a major chemical producer in Korea and they have chemical plants throughout the world, and the final stage of our processing is a solvent extraction process which needs a bit of hydrochloric acid, and hydrochloric acid is quite expensive to transport around because it's predominantly water, so it makes more sense for us to take a small quantity of rare earth consolidated product up to next door to an existing chemical facility. They have those, as I said, globally, and we're working with OCI about finding the best location in order to co-locate that separation plant, and they've also expressed their desire to be involved with that in a joint venture process of toll treating our material through that plant. So they're not going to be an end user, that's about a toll treating program? Absolutely, yeah. Toil treating our material and possibly others. Who would be your end users? Magnet producers, basically, so we'll currently talking with magnet producers in Japan and China, less so in Korea, but we'll also next year start ramping up our involvement with the magnet producers in Germany. Well, this might be a record. We've been talking for about five minutes about rare earths, and the word China hasn't come up yet. Yes, it's interesting. Everybody would be fully aware that China controls the market, and there's been a lot of commentary lately that China is actually going to be a net importer of NDPR in particular for its own manufacturing purposes. They've got very ambitious targets for electric vehicles, which require a lot of this material. How much per car? It's about 1.7 kilograms for an electric car, but a normal car will use about 700 grams of NDPR magnets in the electronics, so steering, brakes, windows, seats, etc. So every electric vehicle needs about twice as much NDPR as it does in a combustion engine? Yeah, that's correct. Okay, I didn't know that. Yeah, the extra kilo basically sits in the traction motor, which many of your subscribers would be familiar with the lithium battery technology that's advanced greatly. And we think that things like cobalt copper and NDPR have been the unforgotten technology metals of the past, and we're looking to change that for the next 12 months in particular. You mentioned some commentary around China. When will that imbalance begin to happen where China becomes a net importer? Well, I think we're seeing it happening now. They're making big inroads in cleaning up their environmental legacies by closing down the number of mines and processes, but we're also starting to see Chinese organizations put their foot on projects outside of China. We've seen it, the largest mine outside of China previously was Molycorp and those assets have just recently gone into Chinese hands. What's the next significant milestone we should look for? Our piloting is progressing really well. I think our next milestone internally is to successfully complete that and it might not be a really sexy thing for the market to absorb, but for us it'll be a really big achievement towards finalizing our feasibility study. On top of that, I think an offtake arrangement sometime next year would be great, but we're also targeting getting our environmental approval by the end of the year. Great. Can we check in with you in three, four months and see how you're doing? That'd be great. I appreciate it. I appreciate your time today. My problem. Thanks for having us.