LTBR - Earnings call transcript Q2 2021

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

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

Matthew Abenante

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

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

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

Seth Grae

we climate United that And Well, transform families Panel to the your Intergovernmental and in joining that us safe. hello, are quarter report stated the catastrophic all Nations' you as I Change, rapidly well Matt. thank you today, window hope to closing Earlier XXXX you, a life would for thank on avoid discuss know results. IPCC, it. Lightbridge's and is Climate change second

Lightbridge, resistant who've our to and technologies energy to to and soon nuclear a and as reactors safer, I'd to mission, to with will impact Fuel, groundbreaking existing pioneer reminder new our fuel to been proliferation those those both the nuclear world's is more make new viable. a Lightbridge climate which story, and make like advanced enough next-generation more technology, Lightbridge's start economically For difference. problems fuel following

Both new that safer, rods, small reactor than industry existing reactors something Our has produce Fuel been and fuels. power. Lightbridge even reactors, current other the added be using electricity plant SMRs, at benefit more for been baseload enabling generating in on by developing than means nuclear nuclear focus energy a to attempted cost modular metallic power will the or a and existing technology. lower future the incremental fuel can Fuel of produce any Lightbridge electric hasn't

enable up are efficiently We fossil SMRs designing in Lightbridge replacing fuel power follow, more to these load to ramping renewables Fuel are and plants. down available, as

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

Our applicable the and large economic safety existing development steps anticipated light to and benefits are reactors. also water

in fuel with validated a of backed awards. its DOE $XXX,XXX larger awards X innovative Department patent U.S. considers have funding The portfolio. "a at in $XXX,XXX Our and excess clear for funding need Laboratory voucher a Idaho DOE gain Our truly work contributions. with in of criteria cases that laboratories national is and global Lightbridge design involving technology." award an than Energy Fuel meets with by National exceptional

the work off Pacific the This or a Memorial CRADA, our Institute, scope CRADA $XXX,XXX total this performed zirconium value X/X DOE in for funded a fuel using with operating project to of amount advances critical agreement which month, PNNL, contractor and Northwest executed National of PNNL, Laboratory, process approximately collaboration the with is we by manufacturing Battelle current of development cooperative process Last a at Turning kicks and uranium research material. the our Lightbridge process of efforts. proprietary the in co-extrusion ongoing development These that the efforts our Fuel process second the length stage DOE. X-foot irradiation casting demonstrating by for as to ultimately qualify The manufacturing fuel we designed demonstration process agreement, by for depleted at modular for develop reactor. a a operation used be successful our surrogate commercial specifications surrogate commercial as are for our in in metallic for Earlier for small the fuel our of announced quarter, our PNNL. manufacturing well rods rods activities rods rod part and and X-lobe, length reactors. design lube will were through These of design using testing rods manufacturing manufactured materials. with

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

for as samples an at of processes. appointment also June, Since Russell Microcap a set call, Committee. of flurry Audit as Jesse there Lightbridge. designing greater and of Index. and financial Jesse skill which equipment leadership our of fuel ensure has governmental Budget, led Chair and brings our industry, of Reactor years company week, He fuel successful this this regulatory serve anticipate been guiding was be our are unique voucher and wealth Advanced be as Last Jesse's INL. strong a Office Office exceed in Board completed comprehensive the the of within activity the initiatives with our In the we and Secretary experiment management meet for as a extensive working experience work later Lightbridge the Test will a Office to in well we last of to testing Defense. regulatory and will the combining Independent announced year. of in the the instrumental the Secretary or Congress Director under an of will to in and has Management We added of development requirements. We our knowledge policies of awareness in attention the Directors, has the knowledge and who nuclear with Funches

XX. associated available will call American speak fuels Andrey, Nuclear discussion presenting SNN tolerant on VP and on upcoming compete and panel Nuclear help publicly climate few with fuels in will of over July, companies a Andrey? us Investors CleanEquity Monaco, invitation-only Utility turn are sovereign, traded featuring at will world's economic to globally the is virtually. Albert's of base. an improved and Working necessary nuclear one research Andrey at of the is to end Executive Fuel. and forward Lightbridge users. I'll to to Conference, innovative, opportunities. family policymakers learning increasingly continue is technology meet safety on goals. economic nuclear CleanEquity on technology also I Network Video Tomorrow, the investor companies. for and Society's be look corporate, of Mushakov at broaden some our In Lightbridge's will accident the Foundation Relations the event benefits of Operations, virtual discuss sustainable to to companies to index, Innovator near-term my Prince event August IPCC focused I proud be that for audience presentation page. London, and on that, Investor selected advanced included which most speaking this the and by are the co-hosted And Capital We U.S. the benefits our development investors, review these annual performance who presented with and professional Summer included The time

Andrey Mushakov

Thank you, Seth.

the depleted our a of Laboratory we to -- with related Seth and Test fuel fabrication our Voucher zirconium. for Reactor a irradiation This it for into of mentioned, process in our Advanced demonstration step in using casting As fabrication for Northwest our the for executed also samples alloy second is Pacific XX% key uranium a process fuel have National contracts Idaho fuel, feeds GAIN Laboratory. XX% at National and needs with

$XXX,XXX have alloys. materials, supply during of which In to lengths produced small design process including parallel, fuel demonstration fuel Advanced the Lightbridge's depleted primary rods helical coextrusion coextrusion the central for this our sub-tier forming mentioned for This is with rods place palladium and continue validation displacer, we development to tension project. Fuel, and by with amount for the the the our The X/X the is scope nominal the of Test between of Laboratory. activities, including using the zirconium metallurgical our Rods materials coextrusion project total procurement will Also surrogate of We designed process also relating alloy experiment Lightbridge assurance further value surrogate a are and models process component begun patented we for uranium. modular be on of illustrates by at Idaho as-fabricated Reactor reactors. the of process with manufactured cladding. uranium process contributions the for vendors National of the this performed funded X-foot the of The of twist high-temperature quality of and the PNNL. manufacturing our process, surrogate progress to Energy our make demonstration of using successfully successful demonstrated and Department corrosion our in have the bond approximately used extrusion computer U.S.

elements -- of have within colleagues a including time We been in of conceptual optimizing the have defined design Lab to a phase, of the order in the our initial burn-up window National design samples which reactor. design achieve in Idaho completed review, combination the and design fuel

the conceptual the design for detailed Idaho phase the that safety begin will and Now complete, is case Lab experiment. National

high-assay scope of to will expect later support year. experiment finalize Idaho examination postradiation Completion to that, of design Lab you, the Seth. with this And allow coupon ultimately for the completed calendar reactor fabrication, low-enriched samples. uranium the sample radiation supply, design experiment to be the ATR National of We us and back

Seth Grae

Andrey. you, Thank

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

Larry Goldman

good and Seth, everyone. you, Thank afternoon,

fuel. file XX, It to liabilities were million to other expenses an second X $X.X for for please of XX, a by financial XXXX. to Total a X the Total offset compensation to million approximately to and quarter million a approximately million decreases $X.X approximately $X.X of ended XXXX. ended ended our the benefits of $X.X XX, $X.X for June expense months the for This was of an million primarily of There total million million insurance the These months XX, increase related There benefits joint million, of XXXX. approximately million For June with employee income expenses $X.X dissolution Total million million XX-Q the may will due XX, from the the $X.X outside $X.X months There refer further and months XX, $X.X of XX, approximately this $X.X performed G&A the support the approximately employee capital for decrease Voucher invoices million an June and X decrease XXXX. June the months release of was cash position and and income fringe expenses $X.X June X primarily of an work that Total and was and of at million other we from results second to were approximately of we $XX.X compared earnings increase anticipated down increased activities XX, future, Fuel. months funding related that of June the first $X.X at comp increase June approximately increase million final dissolution compared the of ended $X.X morning, approximately Form and the approximately in ended XXXX, operating decreased R&D increase no December first to for venture fuel fees. of was The provided our strategic June decrease approximately X ended XX, of XX, million $X.X XXXX and in fund due requirements of the in Net XXXX, million for XXXX. distribution the was grant from And X $X working our $XX.X patent to the in to XXXX. an to million. expenses respect to in the Voucher. ended we $X.X company's $X.X Enfission to million X fees for the months XX, income our our affairs by and XXXX grant continue along with by activities to consulting R&D cost funding X outstanding loss Framatome financing used alliances XXXX to in months for and increase operating our of future information R&D ended $X.X quarter and related costs million $X.X for approximately financing approximately of GAIN at months In was no equity the incurred. the Laboratories to and allocable funding cash business million for an SEC additional expenses. R&D was million various XX, other DOE and million and R&D that filed professional to $X.X for was $XX.X the compared R&D of compared for long-term June joint and $X.X expense the were wind million regarding commercialization compared assets Net in as venture. our to Enfission and quarter $X.X milestones in today. second to development, XXXX. million of leading June consist was our with additional work as contain XXXX, overhead disclosures, expect our payment ended later X help future $X.X XXXX some the order other million XXXX. with others by contributions seek DOE bearing GAIN June Lightbridge million National

over to you, Now Seth.

Seth Grae

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

Matthew Abenante

Okay.

shareholder your Is have power the Lightbridge in China. the current to rods In you mentioned question. at in wouldn't occurred? nuclear fuel incident Taishan had situation that safe the that first say June, letter Your deployed being it at plant

Seth Grae

to of Lightbridge's have cladding our conventional products specifics the fuel difficult website, with investor link Fuel means website, It likely a products, think have fission to not how upon seem a so these says fission retention have the situation know Lightbridge's retain coolant. been I would the fuel our and from fuel of it metallic that that presentation, fission product is metallic don't does matrix, some to U.S. occurred. cladding designed some a breach. web on yes, no that NRC's Nuclear it experienced Lightbridge fuel see situation products the would released the radioactive Commission the had page. about We reactor say burst could rods safe And say failure." is Taishan, Lightbridge has even is release NRC you in into quotes which of So in the rods of planting to Regulatory the event fuel deployed, "complete failure within On of the responded. it

Matthew Abenante

there possible updates the Has the at additional Advanced National question. been test next The at or Test you. Idaho loops Thank any Reactor progress regarding Laboratory?

Seth Grae

through Congress No update yet. is process. going the authorization and appropriations

to the expect learn after developments additional after in We back holidays. Day session Labor Congress's

Matthew Abenante

GAIN there what propose? would And Are you. Thank in the additional works? you Vouchers of areas focus if so,

Seth Grae

you Jim, Yes. would if take that?

Jim Fornof

awards. X of GAIN company Yes, Voucher Vouchers have under a the DOE Seth. at active GAIN program, the time. active can GAIN Certainly, rules only Lightbridge has X same the

Labs. useful So GAIN U.S. we're National precluded in from are the the the -- moment. unique program the capabilities be X/X to do a find at We order tap into that to of Vouchers

consider identify scopes Lightbridge we GAIN new So additional this for DOE suitable as program. will Voucher applications

Matthew Abenante

the added you Lightbridge additional timing Jim. for as loops provide the materials you, to of to as fuel things today well when Can has stand as if the sample clarify ATR Thank ATR? are

Seth Grae

Also you, Okay. Jim. for

Jim Fornof

be commitments outage, Seth. our us, following the Sure, target should completion long-term internal the which according change-out current efforts. the frame XXXX as reactor remain XXXX available ATR fuel in position well in final is the the underway. Yes, expected, outage outage outage the we've identified schedule or will And that to potential currently as samples. insertion or dependent the and radiation. of test Yes. a the timing of capsules not this material for core early This our ATR to slot late But assuming INL time in is ATR the affect as other for completes upon

if test Regarding the to or loops, can't we additional the be when ATR. speculate on they'll added

about adding As order of public made advanced Or you, for innovation we and they you funding. Seth. function support us. these available support additional in it's have current to made mentioned, But statements Back fuels. to to loops American a be nuclear when might our

Seth Grae

question, Matt? Another

Matthew Abenante

you. Thank

X so year? investors for Vouchers rest and forward across made what some look progress coextrusion your process the GAIN to far demonstration, the milestones the that's can are With been of

Seth Grae

one, Can you Andrey? this take Okay.

Andrey Mushakov

Absolutely.

successfully terms we this contract to our the discussions with under surrogate Also models for manufacturing extrusion to validation relating material this upcoming process Advanced Voucher that will high-assay first samples uranium. and in activities, in would materials finalizing Laboratory National samples we tension have of uranium, of of culminate depleted at further in anticipate National element coupon for during computer work second finish using patented So of demonstrated Laboratory milestones, our year production there, experiment the Rods using our of HALEU. including fuel our demonstrate of relating of Idaho GAIN GAIN Laboratory, our the From the patented under process, sample using low-enriched we that Reactor. advanced Pacific corrosion casting a complete material used finally, to testing we development or National later produced Idaho Test of uranium. Voucher expect validation coextrusion then with be coupon place demonstration of fuel design manufacturing to as-fabricated -- palladium alloys. the work process recently the Northwest And begun process

well. Back make to that continue to particular scope work some we'll So on you, progress of as Matt.

Matthew Abenante

and recent you. Lightbridge's Is direction fuel both considering GAIN Thank coextrusion Vouchers for manufacturing casting? with

Seth Grae

take don't Andrey? that one, Why you

Andrey Mushakov

Sure, all manufacturing Seth. steps are process. and of casting Coextrusion X critical

then billet full-length is casting billet coextruded prepared is into the rod, First, the the using rod. fuel

demonstration of coextrusion process. our demonstrated Laboratory our process. with Northwest the of the manufacturing manufacturing Pacific of Voucher GAIN casting recent is element on surrogate rod the Our element recently And most then completed National focused extrusion

Seth Grae

questions? any other Matt, Okay.

Matthew Abenante

for it That's me.

Seth Grae

providing in call. you, the on we Stay In the additional to for Goodbye. meantime, can updates participating be near Okay. ir@ltbridge.com. today’s and everybody, Very We look reached at future. Well, forward safe well. thank good.

Operator

call. concludes This conference today's

You may disconnect. now

Lightbridge (LTBR) 9 Aug 212021 Q2 Earnings call transcript