LTBR - Earnings call transcript Q4 2019

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Operator

Thank you for standing by, and welcome to the Lightbridge Corporation Business Update and Fiscal Year 2019 Conference Call. Please note that today's call is being recorded. It's now my pleasure to introduce Matthew Abenante, investor Relations for Lightbridge Corporation. Please go ahead.

Matthew Abenante

Thank you, Kevin, and thanks to all of you for joining us today. www.ltbridge.com. release be after Relations viewed the website press yesterday market page earnings Lightbridge can and on at company's was the distributed closed of The the Investor

Seth Kanakry, Fornof, Joining and Fuel Grae, Barbara Larry us Management; Chief Chief Andrey Nuclear Nuclear President Officer; Vice Development Program Executive Financial call and Senior operations; on today Jim Goldman, Chief Officer; Malone, President along the for Executive Controller. with Vice for Jim Mushakov, Officer; is Vice President

like are would listeners forward-looking any Today's I competitive remind to that offerings. are includes service company's statements our that call position not on and and statements presentation forward-looking this about the historical product facts statements.

used in future. are results in in to update otherwise. from such Commission. significantly risks discussion of as or call, events obligation presentation involve result expectations may goals not any estimates. any This forth cause our today's actual to and assume Securities such anticipate, with Lightbridge words believe be During of the based or These expect, in risks new uncertainties that a certain and does differ Exchange as on or and set is filings and the developments current Lightbridge's and will forward-looking more whether statements such other revise intend detail

Executive With that, Chief Hello, first of Officer I'd Grae, like to Seth Lightbridge. turn the our call over speaker, to Seth.

Seth Grae

us And this Thank all joining afternoon. you, Matt. thank for you

proceeding. and I today's our Framatome any in begin, to vision wanted our matters know by discuss venture ongoing of legal our our call we Before to advised let on joint arbitration light or we've not listeners that to counsel been relating

filings in with updates become available in full to as However, disclosure. we our continue provide accordance will regulation they SEC

others, U.S. includes development Innovation for Nuclear The support of with new test ended of project in the metallic commence company's in Idaho The the National the bipartisan discovered or fiscal or foresee of truly Lightbridge for funding to experiment made grant Accelerated at a advanced government COVID-XX, Laboratory. DOE's we Idaho our National design issues work Lightbridge issue. our a Facilities are of coronavirus with phase a Fuel not samples Lab poised demonstrating collaboration helpful half Idaho future our a in at anticipated on enter We excellent project in be that the award year our relating believe first from irradiation the to XXXX. the GAIN under to Idaho that We've of applications. voucher time, note, material miles. from at nuclear National reactor Department this Energy, Laboratory. performance Gateway program do voucher the first We Based over with about voucher. and federal XXX will development for high National square out to contract relating slowing of scope Laboratory postponing DOE, GAIN on spread the is has to XXXX GAIN fuel

work at on relatively to and we a People work computers people can it's place need to So apart. easy offices, stay home. for hope, who

water actual utilize which in video rods a extrusion using late to manufacture pressures production commercial of the length expected full the Lightbridge released modular demonstrating Lightbridge's also large rods, demonstrate Fuel a materials materials uranium-zirconium Lightbridge alloy. surrogate in We co-extrusion the the flow temperatures were reactors. surrogate stresses, selected for The demonstration manufacturing for in and process of light and December, Fuel small reactors

Fuel to as goal our is the at and bring to stockholders quickly as practical. It market lowest to Lightbridge cost

smaller, improve safer natural and Fuel gas fuels. financially and is compatible further and existing against designs amount make able compete will economics win designing reactors with Lightbridge energy. reactor also carbon-free of other that can are We to significantly renewables increase our of new, the and fuel to nuclear the

cost-efficient timely XXXX a dedicating focused milestones manner. near-term a are of in execution We towards and

communicate Our our plans the could team are government laboratory of to work. to affecting learn will actions spread to how and continue officials, COVID-XX relate others with their personnel to prevent and

We strategies are development fuel actively interests. our and to reviewing protect advance opportunities of our shareholders' and

home, our are in can and Everyone company prioritizing safety. work from everyone's we

For call conference all a example, separately. we this are in do for not room have and calling

achievable the we to company during forth be We setting plans turbulent even for the expect period. this are

well plans these in other company. talk more for in I'll as developments meaningful as a detail about moment the

research over near-term First, who opportunities. will Andrey? the call Operations, Mushakov, and turn Nuclear for VP let Andrey development me review to Executive our our

Andrey Mushakov

you, Thank Seth.

the as uranium-zirconium as pressures we reactors modular large well small surrogate length alloy. the Lightbridge the the expected mentioned, surrogate materials designed for rods as are fuel the Fuel extrusion of The and commercial rods XX-foot for First, reactors. materials for simulate flow demonstrated light X-foot to in water using Seth stresses, co-extrusion process manufacturing utilizing temperatures manufacture rods

market. our reactors. exploring fuel begun Reactors Rods or water it reactors, have refueling, Test have a CANDU from and Lead heavy standpoint CANDU in the technical pressurized assemblies opportunities for potential risk which We making online are less their

about There Lead online Lead reactors fuel in with in are in test currently rods refueling, the Rods assemblies our without located and to Canada. down inserted can or half world shut With the operation XX having removed with be Test reactor. CANDU

of the cost utilities. have CANDU early utilities we're opportunity, lives Back to potential in Particularly in of improved extend the CANDU the refurbish economics stages providing and/or relating you, savings are optimistic to steps taken to Seth. Canada, benefits, this plans. economic plant and we significant to While

Seth Grae

recent of government advanced federal state say that use American happy nuclear research Laboratory levels. to is friendliest The private to I'm discuss making the funding I terms and the we're the generations. U.S. Andrey. large in facilities levels several environment for perhaps both in technology. developments you, in government and at sector National Thank develop to support historically nuclear available to of of want

included the advanced of increase made for XXXX industry, Award. Then nuclear includes million $X.XX development Voucher for to broader that government December, in $XXX which appropriations approve nuclear technology, GAIN billion As our first to support the over programs, for reactors of an energy part has Congress fiscal voted approximately XXXX. recently available U.S. of its year these

We be from for to for the this better energy bipartisan benefit government. from Lightbridge timing support federal believe nuclear couldn't historic the

In energy the addition and power fifth to the for nuclear are all X the support nuclear to of bipartisan state, with on level, House, desk at level. bills federal same home the example passing at research. related the nuclear of Governor's the currently There an is advancement our support energy Virginia, the state

receive which and as Directors clean and universities of that support. wants particularly Virginia I is has recognize growing the the Virginia technologies part to this also large the of member the part energy. state of support and of support sees federal for advanced within and for trend a legislation, nuclear As Board federal think helped Energy Nuclear help to Consortium, The legislation of to in nuclear other a position companies countries states power,

significant power, believe growth meet in to security nuclear We is the energy, needs. and be world there climate if will

within commercialize well DOE Much Fuel. Lightbridge designed National have into in Laboratory for U.S. technology intend to nuclear role GAIN activities voucher complex, position and We Lightbridge which to the leveraged goals. Fuel helps is new Lightbridge companies advanced we play support. the further research of The development funding with major help meeting us investment private a these

difficult, to nuclear bringing we remain While the power succeed. our is confident industry to in ability change

with to collaboration I development Voucher XX near-term intend GAIN Now Lightbridge to completing of fuel Idaho our like Laboratory. would over XX Fuel to we discuss in the Award the for our relating scope milestones months, next on work National

Fuel In irradiation. for the we in Further, addition, alluded reactor Lightbridge into we CANDU our an will samples material fuel earlier, of agreement nuclear market. Reactor as Andrey the use anticipate to entering test manufacture to evaluate

the not intend our with but uranium. demonstration of fuel material phase depleted initial to surrogate we technology, begin already of with have also We as done, manufacturing

Goldman, Larry now financial the call turn to year. for Financial Officer, summarize the results company's I'll our Chief over the to

Lawrence Goldman

Thank you, good afternoon, Seth, and everyone.

our information XX-K to For XXXX we earnings regarding results filed and SEC yesterday later today. release our with we financial our year file and please disclosures, will Form the that fiscal refer

Operator

your I'm back. to operator. is you to apologize, write This line. going do we apologize. I crossed clear Goldman, seem have a Mr. I

Seth Grae

everyone. everyone this minute, like a This our is call time with a on different doing hold locations. live in Just first

Lawrence Goldman

remains compared in to equivalents with XXXX, working XXXX of a million. surplus for year capital and December million ended cash cash strong XX, We at XXXX, Our equivalents. cash fiscal net in $XX.X cash $XX.X a decrease balance was million sheet fiscal $XX million $X.X and

funding, conditions DOE that overhead benefit We additional We company market improve. to keeps will hope hope steps, so are continue and from reducing for forward. going our we our spend R&D take XXXX. to This

to Cash in used XXXX of year fund approximately for joint was from net common to cash was and decreased contributions from the proceeds the our XXXX. in Cash venture made ended ended cash in the Enfission. XXXX. offset investing of general our used year XX, for This research capital XXXX, XX, activities December administrative to primarily sale due operating million $X.X million. expenses. primarily used This partially to the development $X.X by the December million $X.X December and decrease outflow in in the $X.X and approximately during million decrease We year stock ended expenses XX, XXXX, our was $X million activities

others may commercialization contributions support strategic long-term to order in our to the by future additional business to of help cost-sharing fuel. our new leading requirements funding fuel seeking respect development, our receiving future financing with R&D from In and be of our and we'll fund alliances obtain milestones,

Kanakry, go select the information over call now I'll turn to financial will P&L who over year controller, some for XXXX. fiscal our Barbara

Barbara Kanakry

benefits expenses million corporate of was December This XXXX, development allocable development XXXX. costs development decrease Total Larry. the amounted ended development venture. to XX, primarily and ended compensation of fuel. year the compared to research you, for the and Thank our and activities December the joint related and $X.X Research Enfission to in of related to million consist expenses million year $X.X research due XX, and decrease supporting $X.X fringe and for corporate employee research the the overhead

the the and by December $X.X approximately was due fees million fees. due employee of approximately of compensation for accounting $X.X $X in a million compared other $X million, These in were increase employees. due approximately decrease approximately of expenses number legal to million prior benefits This in a year. $X.X fees, increase the was decrease decrease million to stock-based professional for to XX, ended and and of XXXX, year offset in to which of employee fees decrease $X.X compensation in administrative and decreases were a an General an professional million

approximately stock-based the included years compensation million $X.X ended $X.X expenses respectively. was XX, XXXX, and XXXX December in and Total and administrative million general for

joint and XX, research due $X.X a Other The million venture decreased to million million $X.X the $X.X the the joint were in activities decrease to compared research XXXX, equity $X.X Other the provided support of Enfission million operating the million. development from expenses and and for loss decreased and due to research decrease for to of also in of development venture. by XXXX, income $X.X ended XXXX by activities XXXX. development in year the in December Enfission Enfission from decrease

XX, research and general development to Net the year million $X.X venture. from loss decrease joint in equity and million This XXXX. expenses due Enfission for of December expenses, XXXX, the decreased $XX.X compared administrative was decreased million was and for a $XX.X decrease loss ended to

to Now Seth. over you,

Seth Grae

Barbara. you, Thank

time to your our submitted stakeholders, continued your including shareholders employees, take for this to to get and I our support. our vendors we want Before thank questions,

we stock commercialize long-term our take the have help We advantage fuel business we directly certainly of sustainable where that We've our on are -- us with important our price taken we that that delivering in And intend will we shareholders. measures, community nuclear and value is with in discussed deliver both will upon believe industry. satisfied the and before opportunities to order investment today. internally milestones to the not

at an inflection The is nuclear point. power industry

the opens optimize remaining renewables. will and power. of large safer development large will new, door compete we new in can U.S. gas for Additional of Furthermore, believe and new our close, help smaller, place not take reliable ones be and and abroad. nuclear next-generation which enough fuel can the the against reactors, to their the Fuel natural built reactors further reactors the Lightbridge

we as and commercialization The leadership our value, pursuit of quickly Lightbridge focused full-scale team to shareholder as on Lightbridge is dedicated long-term possible. creating of fuel remain

the belief in vision now industry. before question-and-answer us your for we in to to on submitting support questions call. to and the for And capitalize Thank our that, you your you the everyone nuclear will with opportunity ahead today's of session. go Thank

Matthew Abenante

questions. Thank you, investors thank you all Seth. And to the who again, submitted

in the in happened conference with bring authority that previous overseas to Our this? the in revenue. a that start What first question, Lightbridge to project nuclear expects weeks some will mentioned consulting coming Mr. on call some Grae a regulatory work

Seth Grae

moving work be seems for the overseas This us. waiting start to to forward. with authorities We're

Matthew Abenante

the company? to Our is means get this aim to next Or for the of it value? shareholders? aim the concrete what What it to shareholder of technology is question. Is create market the regardless

Seth Grae

Our The will in that the company Fuel developments. fiduciary value stockholders. value stockholders a some duty around bring hasn't market the share price great We with on we focused that Lightbridge believe to fuel are to turn that to to know fuel market. the have to is for invested bringing working shareholders. the time, and reflected our We bringing

Matthew Abenante

plan to question, next additional grants? you for Our do register government

Seth Grae

take Andrey, And one? you'll that

Andrey Mushakov

voucher an that to be our applications. GAIN performance DOE preparing first under begin for grant the helpful are future our demonstrates we believe GAIN work funded will under Yes, the We voucher. excellent Sure.

Matthew Abenante

question, your awareness next are to what doing stock? you in Our raise

Seth Grae

other need we've initiatives taking out. about gets the within we upcoming happens the And begin what attention. National some to that ultimately, discussed to with We're investment there we've Idaho Lab. set milestones achieve we're community, While that working

they worthy media be company of As will the in has the we past. our coverage milestones, as received we achieve believe attention

work advanced to media well support the with federal technology. and the for nuclear fits large attention technology, call growing helps which Our government in nuclear

Matthew Abenante

Thank you.

a can question, completed, give you time us Project? on the next Idaho then Our happens? what line Once

Seth Grae

that take Fornof, Jim one?

James Fornof

contract voucher thermophysical experiment hydraulic capsules parameters INL to the Yes, our begin such sample of design INL. after within Once detailed National fluence test at INL establish the advanced under And properties to Lab the the of expect test a fuel with on and temperature, we've neutron include test of materials, last weeks. will the contract safety the both the key ATR. will for complete measurement Seth. the before the as we and maximum location the and will the contract, ATR. irradiation in establish case weeks, GAIN In then thermo work for project and on Idaho of working the This in perform the reactor been Lightbridge physical the in coming and the the several the work. for team plan control the capacity

others we under the effort sample of our output expect project from and be the line design of project contract XX with efforts experiment for time the fabrication months initiation. of In parallel with The the will for complete ATR. the for case needed to safety this material HALEU coupons insertion and this separately GAIN and the is And INL voucher, the for experiment. the into

the is facilities outage, as for testing well. the these of final availability goal in to of mid- burn post-irradiation expect the its commitments at complete coupons to The outage -- required ATR for the to achieved Our maintenance in insertion into perform actual change the is testing the core experiment internal ATR, of and subject in is out up INL's is XXXX. have when positions ATR sample the the we would duration available prior Once insertion to the coupons testing. late INL's

Matthew Abenante

question, what company? atomic how governments energy? bullish next are can that Our for the as the some And energy begin a result the you activity soon will atomic have of see governments to being on more effect on

Seth Grae

we're nuclear As in Trump mentioned the bipartisan in prepared support seeing Congress power. within and administration remarks, for growing the

following actually is of our proposed and Newhouse, next-generation "Developing of we strategic just help expect House us. legislation advanced legislation become nuclear website nuclear Lightbridge Energy Pennsylvania energy endorsed programs Conor Act Department reactor the move on authorize The meet Nuclear by quote and Research of nuclear Representatives. it of year. sector" the research, introduced encouraging law I'll support with the climate Lamb, representative challenges, Energy's and H.R.XXXX, the development technologies this is to would will was House from us this off Congress later which critical and Representatives' formally demonstration in of legislation we new that representative this of legislation X, Washington. in March and there, and a By would Republican leadership why the on at America's fuel recently Just and reinforce this development read energy. through legislation the Development Office has designs, bill Dan Democrat U.S.

Matthew Abenante

supporting rods. nuclear the nuclear as next fuel is fuel for Our uses What HALEU advantages reactors. NRC the HALEU they the question, rods? metallic over have fuel Lightbridge do fuel

Seth Grae

Okay.

will Jim Malone take So this one.

James Malone

less doesn't to content. HALEU review using XXX function Yes. is uranium The enriched to than means to or XX% H-A-L-E-U submitted X X% specific more and NRC them fuels The fuel. than X% support any for uranium by review. no NRC's

X% HALEU fuel will thermal is superior in fuel metal of where compared temperature chemical designs. superior XX%. allows conductivity the fuel has remain a to cladding users increased a concepts fuel rod's after conductivity for increased use the coolant reactor have design to between Fuel below Lightbridge vessel or of takes all temperatures range longer of other the to the the operations rod longer thermal Some support power at fuel Lightbridge's fuel and there perceive Fuel reaction or Lightbridge operating the power operating steam they in reactor conductivity loss the to of when cycles. superior advantage accident. choice value-added cycles.

on. success this the them that way supply use, and will HALEU of advanced for and fuel of for do can create or other need reactor small other metallization. that. reactors The being in likely know will and could need counting will designed current advanced the them for future. HALEU near-term to modular all of enrichment metalization, of years only The We demand generation is of the that concepts that many reactors Lightbridge X near-term the are reactors most at the some level the are Almost reactors that no Lightbridge design

of of believe production it commercial help government believe strategic to which about. U.S. large-scale bring will have also HALEU, will interest the be Lightbridge Fuel We the in we

Seth Grae

Okay. more less And X%, a by your enriched let than but High-Assay definition technical Uranium Low HALEU, XX% on than XXX, me uranium just is quickly, just add X% point Enriched there. of

Matthew Abenante

next can HALEU? of uncertainty in upcoming what downblended Our the actions take Lightbridge supply regarding INL's face question,

Seth Grae

take this one? Fornof, Jim Okay.

James Fornof

EBR Seth. that HALEU Unfortunately, supply for Yes, downblended X at current radioactive our the DOE's contamination residual Lightbridge EBR of the of other reactor contains has the impurities notice the impractical material Ino. from investigated make opportunity and for objectives. fuel

quantities testing we and in laboratory well However, we of have available areas future. LTA as to INL at program the additional our be discussions as sufficient for other support had with HALEU complex, that believe will DOE the of fabrication

Matthew Abenante

can And timelines our commercialization? investments what the increase Lightbridge moving value towards and maintain new company attract last reasonable what question, investors or And market cap? expect funding, forward proposition is to

Seth Grae

Jim that Malone, one? take

James Malone

into using near-term perform manufacture demonstration We an related fuel months initial of National in reactor our enter anticipate agreement our market. manufacturing the Begin complete test will nuclear the laboratory, Okay. the GAIN following: with milestones XX to to Idaho XX Lightbridge CANDU fuel for the samples development fuel of next depleted fuel in scope Voucher to evaluation of recent over work Award for DOE the irradiation. collaboration natural our or the uranium reactor and of use material for technology consist

things, deployment drives lead in agreement in irradiated the uncertainties the reactor, reactors, host fabrication a and sale and rods, scale of cost There into include, of assemblies lead assemblies material the prototype rods a inherent outcomes reactors. pilot many the milestones nuclear and/or it commercial and other of fuel the and test thermal development fuel at to which demonstrating among test The steps fuel of technology for commercial lead makes predict of out other experiments, fuel hydraulic assemblies assembly material our of and/or timing samples test seismic reactor lead test accuracy. operation nuclear and/or the the and/or in of facility our are rod commercialization of any to irradiating entering with needed fuel difficult of prototype long-term examination successful test -- postirradiation reactors, towards with demonstrating performing samples conducting lead fuel a nuclear experiments, test performing and production rods

initial fuel not our purposes for to to based or batches sales receiving from to purchase utilities, reload reactors, for orders Accordingly, meaning for schedule, full power any anticipated in licensing commercial on X we begin about expect XX testing years.

We financing funding utilities Energy. the continue Department with and development or other to arrangements contributions seek will of

Seth Grae

and call. Well, thank thank you participating you, to today's our We everybody, for on look updating you, QX Jim, on forward call.

always at Stay are open ir@ltbridge.com. and Our Goodbye. safe healthy. lines

Lightbridge (LTBR) 18 Mar 202019 Q4 Earnings call transcript