LTBR - Earnings call transcript Q1 2021

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Operator

Thank you for standing by and welcome to the Lightbridge Corporation Business Update and First Quarter 2021 Conference Call. Please note that today’s call is being recorded. It is now my pleasure to introduce Matthew Abenante, Director of Investor Relations for Lightbridge Corporation.

Matthew Abenante

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

Vice call Larry Seth Sherrie President Goldman, Manager; Mushakov, the Officer, Chief Holloway, for on Operations; Andrey with Nuclear along Chief Executive Nuclear us Program today Fornof, Grae, is Executive Accounting and Management. Joining Jim for Vice President Financial Officer; statements facts would statements. are I any to that call our remind this like forward-looking are that listeners on not historical position includes presentation forward-looking Today’s product service offerings. the competitive statements and and company’s about

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

Seth Grae

in successfully Lightbridge’s trajectory lens for SMRs. coextrusion rods is Welcome, that important rods The small process, we modular Matt. positive yesterday six-foot XXXX manufacturing for quarter reasons. first proprietary results. highlighted demonstrated to will materials. This of Lightbridge after and joining an And Andrey remarks. a three-lobe, by of our provide manufacturing Mushakov surrogate many for We development or overview were this my manufactured discuss process very for surrogate activities, thank you. reactors through our designed XXXX announcement to Thank for all our of have us our entered on fuel you terms process a using

portfolio. to tangible produce backed our physically production that This to move between replacing of small more designing rods utilizing up our available, in beginning to patent renewables efficiently as fuel rods are are and ramping extensive are vouchers. power products plants. We're and GAIN all two fuel our reactors fossil modular We down beginning to technology by is load to Lightbridge follow, enable

reduce addition, technology In case the we goals. business which of of power electricity climate meet deploying numbers expect reliable SMR, large this from cost to an generating the to for deliver and SMRs strengthens

Lightbridge using month, funding support project value The collaboration are PNNL. our process Lightbridge to quarters Laboratory, performed existing he approximately deal Our with awarded second is of project also to National a three manufacture for DOE scope reactors. development applicable uranium, a $XXX,XXX, voucher the by the GAIN Northwest the total casting Pacific Last depleted the fuel the steps light fuel. funded demonstrate of this scope to with in of in large water The amount of PNNL. step key DOE Lightbridge’s is by development

later will project this begin quarter. the expect We

performing under INL, our funding Department Energy's program. at our of or GAIN We Idaho National are from with pleased voucher efforts Lab ongoing the

their designing second under an in work to are teams this fuel world our voucher funding Lightbridge allows advanced the which private class federal development be of the are We in experts two DOE meaningful We strides and IML. unmatched samples facilities, through Being in anticipate with government by our program. completed test reactor vouchers in the year. to access testing awarded the the of at take our experiment will sector for this fuel half

of with manufacturing process, patented federal our in fitting these funding goals the addition, fuel In validate the patented strategically awards government. further and

to understanding an We meet energy increase the that emission must Biden goals. administration increasing nuclear zero the in seeing the are administration's

the it reports are nuclear US to included month, news there for in might European the through DOE seen have In US ban focusing It's a way outlined Corporation which existing is fuel included the plan nuclear federal amendment Defense fuel to that there, include on the including projects Taxonomy European bill. the Finance low paradigm Nuclear that may the looking group you bold lifting efforts around Union becoming be well upcoming Leadership that that working governments From energy as clearer fact, reactor R&D the commits nuclear facilities tax concepts, Act infrastructure investment And world shift last announced advanced at Development of export. into last by passed for projects. National government nuclear Act Regulation, in the subsidies energy advanced In International Authorization energy, steers a was into advanced the nuclear year, technology. will as funding on Energy the fall, nuclear the this carbon Commission investment for the of power. demonstration in of as nuclear an the

follow setting developments All of nuclear nuclear these leveraging the Investors energy in tend for attracting when actions investments. in investment their greater government to development. stage technology in matter

So more we industry. meaningful presents the power expect Lightbridge in these unique a changes the nuclear industry. nuclear investment will in opportunity lead to

These power the dawn benefits industry. and Our and bring nuclear will the water operating light significant reduce in new and design the the plants. In economic ways, nuclear can new cost that design industry marks existing the of only of fuel electricity fuel both truly are help Lightbridge fuel changes reactors. safety many reactors for generating significant nuclear since

to generation powered And rates with review ramp development reactors run, the transition numbers I meaningful some term Andrey modular for recent update that, news fuel, to will power us the turn Executive a near large opportunities. who while and output. increase larger over more being expect Operations, providing Nuclear small energy in of with call research Lightbridge offering will our VP Mushakov. on renewables, Over load following nuclear superior Andre? and by we long from for to from reactors most in generated much

Andrey Mushakov

Experiment for successful we in demonstration Thank materials This designed temperature small testing extrusion Laboratory. twist as corrosion and core process fuel reactors performing including process modular rods make rods and coextrusion you, of successful lengths Seth. [indiscernible] patented activities, the with Idaho at displacer the process In central were surrogate foot six bonds we the of extrusion core metallurgical this Rods alloys. and for our surrogate within using further computer of using used on during illustrates of alloy our Reactor the helical of the continue progress for will fuel produced the primary be the manufactured [ph] extrusion fabricated palladium Test place SMRs. development parallel, the surrogate of our Design National or The uranium. Advanced including process Yesterday, clad. demonstration models high validation to Fuel, Lightbridge of announced the demonstration

the the is to elements defined detailed design phase of experiment. the completion safety Once achieve the burnup our complete, the in nearing a window samples time of case for in reactor. within INL of which will design been Idaho the Laboratory National order We’re and of design the colleagues conceptual conceptual have phase combination fuel optimizing the immediately test in begin

National high-assay designed ultimately the the supply, irradiation, with for later Design will to Completion be post-irradiation examination experiment Experiment the scopes the allow finalize completed year. low-enriched Idaho expect also sample and us uranium samples. coupon Laboratory this ATR of calendar fork fabrication, We to of of [ph] reactor

This the our for of on complete, [ph] a be GAIN Laboratory, fabrication fuel aspects The GAIN process to demonstration key Reactor and for progress is And fuel. feeds also Pacific with XX% Northwest contracts to the irradiation National by the contract able voucher using fabrication [ph]. execute second of almost casting X% into and are with uranium these fuel contract we PNNL with in the expect zirconium Idaho samples needs are our quality and with alloy shortly. our a National process in of for it the Lab control National step Advanced We depleted our with Test also Laboratory. to

began for of Northwest Seth. the have sub the component approximately you, depleted the lenders amount and Laboratory. of quotation zirconium to process to $XXX,XXX materials, by Pacific [indiscernible] DOE the with scope funded is We our supply quality three contribution is of by National project. also for The performed which project of uranium this a total value Back the assurance with

Seth Grae

Thank you, Andrey.

the Larry financial turn to Financial summarize Larry? the Chief over we'll results. company's Officer Goldman, Now call to

Larry Goldman

Seth. And you, Thank afternoon, good everyone.

XXXX. invoices work Enfission and $X.X performed quarter to of our Cash due by million compared million the to for Sherrie assets for the will provided the to activities cash as $X.X funding strong a capital first $XX.X expenses cash had the three compared proceeds select was XXXX, capital long XX, financing. March additional primarily This March as and of ended our new to P&L that DOE XX, XX, was please XXXX million XX, the XXXX. operating outstanding months of of as of order an maintained of working XX, at not funding The compared may for For our go XX, file other development, support we sharing the to and call months cost information no quarter I our from and commercialization further and to million help our and venture were the with continue increase and fund total used due to information strategic at Framatome. ended disclosures, release XXXX. contributions who regarding SEC of of refer $X.X today. now from to earnings million finance seek Lightbridge decreased the yesterday expect will results Total other In with Holloway, was at to respect along payment activities over for $X.X XXXX. the that later liabilities March to XXXX. increase Accounting XX, capital turn and our we by debt our common XXXX, cash additional approximately by to with Framatome to issuance first with equity for Fuel. million filed contain our the incurred compared that December Sherrie? of will financing working at first XXXX. March XXXX first $XX.X We future, in million, the million XXXX, for alliances $XX.X decrease This future Total in financial quarter equivalents we March to approximately decrease December the R&D with at joint business Manager three in at the market raise milestones, financial term the future did quarter the over fuel our any months stock, to others we of in ended of leading cash Form of position XXXX XX, March were dissolution close million approximately million three XX-Q the $XX.X company $XX.X $X.X

Sherrie Holloway

the decrease with consists of compared Thank outside approximately for first you, $X.X to was million There decrease total XXXX XXXX, R&D overhead primarily approximately primarily employee a the and other expenses. $X.X a patent employee we work for by and $X.X income of to research million. the months from factors, million ended were increase of compared $X.X expenses G&A for of strategy XXXX, of $X.X were in was fuel. for March development compared the the by in the to and the due $X.X employee approximately the million first Larry. compensation period-over-period, XX, no R&D Net Laboratory. XXXX. recognition months was for The million months G&A months fuel $X loss million three ended for XXXX development employee related $X.X ended income legal our Framatome to first March the approximately ended to three XXXX, ended professional approximately XXXX, operating a of due million transition million of costs as benefits million fringe expenses arbitration, million There and related March GAIN income three XXXX. quarter first XX, and fees million. $X.X $X.X consistent months expenses and a in decreased voucher. expenses were grant and DOE's of in the quarter increase to were the the development compensation XX, XX, allocable as March and these employee the research due of of benefits, offset million and National XX, Expenses other three of was an the March to quarter $X.X approximately decrease in three compensation and of related new grant quarter benefits Net in XXXX an to $X.X first

Now you, over to Seth.

Seth Grae

Matt, Thank you has will submitted question-and-answer session. Sherrie. please Thank you, go questions. to with And go ahead to everyone that, questions. who the we with

Matthew Abenante

you, Seth. Thank

does differ The your first recent work? announcement previous the question, how coextrusion from

Seth Grae

take that one? you Andrey, Okay.

Andrey Mushakov

process of and certain specimens testing core Lightbridge those enriched announced on patented [ph] needed our of extruded using include this efforts for line for examination techniques and extrusions ongoing also The will ultimately as fuel with our on are non-destructive test a finite pelo high incorporating work used These computer cladding lengths operation material a fabrication perform different. fuel fuel lob models while process, our rods, commercial work begin materials. commercial our for some for displacer our non-destructive design produced reactor We Lightbridge used central rods process future to The manufacture [ph] Seth. loop the the our and type temperature three surrogates fabricated reactor. our enable variance, irradiation week is that Fuel qualify we and metallic plating deform will be Sure, to from particular develop and corrosion element internal grade as nuclear These of for begin intentional rods. on to design to activities of test they're sanction examination this fuel. design rod validating in part the going licensing, uranium the based development technically fuel components defects, in extrusion specifications

Matthew Abenante

you, Andrey. Thank

an work later where things to of today Our provide one INL? done the next at can year on update in be question, you stand terms

Seth Grae

that work. been want that Jim’s you one? in Yeah, to of charge Jim, take

Jim Fornof

National as Lab year. third forward the moving the design the quarter Yeah, an we completion with this of expected is experiment date Yeah, at at mentioned, sure, Idaho ATR the Seth. end of previously

by goal neutronics capsules Once the reactor What development have completion the of achieving of and ATR. of for the conceptual allow sample fuel the coupon the the levels using minimum of of in are will ups sample nearing phase range time the a this importantly proceed the as within phase a each the specification for fabrication of specifications reactor. are We the the and optimized each of geometry, conceptual we the INL, the experiment. the core, is most means detailed coupons, capsule enrichment These sample an of factors complete themselves that iterative and the within ATR thermal talk position INL the residence the being hydraulics of modeling desired case for with insertion capsules engineering fuel into safety and the as samples, well and the to [ph] with completed, to will fuel drawings burn approach this amount of the fuel,

in for We of late for of target core radiations. state as for date have INL potential course, the depends outage. on following final as XXXX outage, a identified upon course, commitments ATR change the XXXX reactor to insertion, target schedule This the other ATR early well date, internals

of and And samples for the experiment radiation the to perform ultimately, fabrication. to and Lightbridge completing Matt. will with sample forward to this addition with INL. measurement post you, allow test examination Back coupon to collaboration us In design allow contracting move will material in

Matthew Abenante

Jim. you Thank

which designs you reactor And SMR question, use may do be Lightbridge reactor might next fleet? have in or might be power used what the types not advanced can current types reactor and feasible? any - discuss Fuel Our application these

Seth Grae

Jim, one. take that

Jim Fornof

helium reactor X design. application module, designs yes, thanks Holtec, Fuel a XXX, current designs. Of not which Yes, fast current designs or Hitachi, is scale a be as and Other TerraPower for power pressurized Lightbridge energy a water such would in obvious have XC DWX applications SMR water, the heavy advanced reactor direct reactor XXX fuel Lightbridge new would the most cooled Fuel GE application reactor in the again. types our SMR-XXX. [indiscernible] cooled the water most boiling for water including and sodium potential in has the advanced the

supply However, these with and fabrication, some fuel the LA excuse companies metallic synergies areas in me. do Lightbridge share in of HA

application are water designs, most less completely the advanced but salt finally, fleet, We current accomplished such power graphite And or moderated regarding efforts of these reactor we if see [ph] you power fleet. cooled some have can of Fuel current the potential great a the other again… fuel. as have the will current include a or first the not fleet the candian into designs Lightbridge have not Back application deploy still BWR R&D to reactors. existing SMR explored PW plants current direct such, to for reactors These the to density molten to As likely our low

Matthew Abenante

Thank you, you, Thank Jim. Jim.

do For other uses you use to my have materials? Lightbridge uranium understanding and zirconium, Fuel designs

Seth Grae

work nuclear done in our plutonium. that This our version power to by plutonium used have from designed weapons, of patents the disposing of dispose utilizing our issued. also that And to - reprocessed plutonium dispose in version patented. technology be could of fuel to zirconium also reactor fuel that fuel used a on utilizing Yes, of that dismantled In we we from included this been of have technology plutonium reactor we've a fuel used and we some is be uranium produce of thorium issued the and could fuel. past,

and We are our best reduce market. that the looking are is upgrades fuel. design the fuel design The focusing reason And generated we the for. what And on power zirconium on no of uranium tremendous fuel reactors. are that's cost provides this fuel and longer of working non metallic that It best longer adds also utilities proliferation the thorium needs additional cycles safety addresses benefits. by this electricity

Matt. question, Next

Matthew Abenante

viewed for bill, supporting can in With infrastructure large how this existing the the reactors recent administration be benefit as talk Lightbridge? from the upcoming Biden a

Seth Grae

economics including for type apparently nuclear lead production talk crucial significantly new Energy, say the owning infrastructure. power support, of plus existing construction tax fuel can that Fuel the of Granholm production and there that we open of I nuclear you the improve of large could plants And including, plants. reactors call Jennifer credits that and of talk numbers in of earlier power large benefits as small, energy keeping our and is believe Lightbridge economic use Secretary by that is operating of mentioned what SMRs. And to know, Well, is plants fuel I'd about, for our use the the could

Next question?

Matthew Abenante

down perception like the This when being are Indian Point Nuclear to country. change that throughout [ph] our this plants, think country, will question. the in shut the do last of better nuclear you is at

Seth Grae

meet compete China answer. the customers in advanced IPCC really energy nuclear is in be answer. part of today. If a of to to Lightbridge’s has US markets And globally Russia, the if has going the nuclear technology large really the growth be with going start part Let's goals, we power climate acceptable. more nuclear to that to and are help technology make can prefer power

Seth Grae

be And I'll forward We question, to participating we the call. with In Stay you ltbridge.com. can at on updates today's future. for providing Goodbye. well. everybody IR meantime, our last additional the being reached that look Stay safe. near at in thank say

Operator

today's That concludes call. you Thank conference for participating.

now great disconnect. You Everyone, have day. may a

Lightbridge (LTBR) 13 May 212021 Q1 Earnings call transcript