Earnings call transcript Q4 2023

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Operator

Greetings and welcome to the 5E Advanced Materials Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

It is now my pleasure to introduce your host, Davis Snyder, investor Relations. Davis. you, Thank

begin. You may

Davis Snyder

Thank XE you XXXX today afternoon. joining conference for Materials fiscal the Advanced year-end for fourth call. Good us quarter earnings and

and referencing During the in found supplemental release contact a Relations website. may earnings will copy call, our Investor presentation Alpha be presentation, of at anyone this press can you management the FEAM@alpha-ir.com. release IR or If a section be of webcast that press our Group needs the

the today's presentation future I statements of we will Please presented everyone dynamics, disclaimers. turn X expectation results, to forward-looking legal where want market items. capacity, that liquidity, our slide of contain production, our including remarks conference cash remind costs, other to spending, made on call and

materially projected may from statements. adversely forward-looking these results or in actual those Our differ discussed and

that release to and materially contained Additional in SEC. forward-looking is with the cause information obligation adversely in under went The statements well statements. Company public these concerning filings the that our as out forward-looking from factors to the today as are no results differ update press our could these disclosures earlier

should Officer, Chief open the to in Today's prepared G. measures will as call information Chief some XE's Starzecki; Management the presented defined call non-GAAP which Marketing Weibel; by GAAP. Executive afternoon's VP hosted questions. J.T call after Non-GAAP with a we'll making Paul This of Chief financial Officer, comments, by Brennan; or off your also term in conference Chris call Officer, and Susan is lead is financial substitute first Knight. up Operations, Financial may of that isolation considered for financial include discussion not measures from a be Regulation as in compliance

the Now, Susan? please over turn Susan to slide the Brennan. call of PowerPoint, and turn X I'll to

Susan Brennan

intently project. and last on significant focused the Thank remain year. today. our year thank progress against goals recently XXXX of joining us our commercial our corporate the for made you and books Boron We and Davis, operations everyone Americas on fiscal advancing you, closed We XE

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to are timeline, our you reintroduce discuss the along in to XE project an our going opportunity of are investment we development guidepost, the we on we'll you new where are long-term update for considering those and/or Today, Company. that and

late Celanese, my to to are and while research and previously, early Hoechst at positions includes First, years, met. to in a development Nikola working sold positions speak in I clean some and Prior had assistant in I've I most Ford of the operational organizations majority automotive which industries. technology was battery spent April Nissan, I of there at Energy in the materials, COO career. process year. at held EV many Bloom of we opportunity I have I leader in last that, chemical fuel you, multiple technology. roles Power, global And my took within was recent year. Romeo CEO tech haven't the the and Motors to doing this CEO for a of leadership eight cell as of career This over XX-year

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we process and continue to line. ongoing, the First, the is with get with finish will EPA to to the work them

have we the five and down-gradient four for four water mining and installed wells monitoring For blocks recovery injection wells. initial the permit up-gradient conditions, EPA

a permit within Additionally, abandon in including May wells required review XXXX. of reports, well reports completion the the and plug for was were submitted in located historic we reports all of October boundary. unused to the required were area open We existing This response EPA to XXXX. all completed those received in

the response to Duval This injection a of the in October recovery impact the documentation The we EPA for abandoning levels plugging XXXX, used permit each we submitted few level of potential alert water and our believe submitted and for supporting letter and wells, regarding monitoring to to Analytical EPA authorization process. underlying EPA's boreholes to the which May report of all XXXX groundwater. In of inject report, to questions and included their alert information June well. was establishes the addressed as temperature it has historic letter XXXX the logging required letter, wells, response was their develop comments. legacy

the which remaining is to complete rate inject of to condition step testing, step pressure. the our testing. This the rate porosity the required acid, process. permit authorization water, expect the review Upon to We which completion inject to testing verify expect reference to orebody receive injection we the the formation and to believe commence of us allows After and of submittals, we testing completing rate will last is authorization approval the mining. fraction step receive

focused remain fundamentals, on we work are today, and we within So control. business are our executing that against streams

controlled our activities We've we've of not about costs the reduce and is work example, taken For hiring our and prioritize control but third-party spend, team a which contractor on come more our optimization few also Paul talk in helping some final commissioning plant will did of together that us to this ourselves and and overall judiciously complete. the this to has I minutes, our preserve expenses. capital very proud how cash. am in-sourced

our our do numerous commercial, activities. going on well. like recognize go-forward new future other to for To and we Lastly, legacy today We're to are call, and capital investors you milestones. we through walk better streams prospective strategic as ones the work through and that, those outline investors all preparing that of both, I'd have

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shown best integrated Small you with the to our the Boron we've pictures of I which Scale on Facility, is think slide X. updated start place

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acid of few tests demonstrated Bench these can have be hundred During in tons lithium a produced. XXXX programs, boric was chloride conducted extracted.

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mover Slide U.S. the advantage our first X in reinforces

from place. we have that the necessary clearance EPA launch the already allow to permitting will While effectively all in operations, we await us

these is you no task not of of or know, obtaining which possession many As underestimated. small is permits to overlooked be and

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of also Paul? We modules XXX,XXX going help complete. a X,XXX and provide to a over short and few now plan that that updates. carbonate you three acid us have boric up when phased will tons other through lithium deliver tons of short Paul's talk execution to strategy

Paul Weibel

Susan. you, Thank

across today Boron approach. project capital the the reality. progress and will time talking to the project moments made to about I'm spend scope and at going its capital multi-phased to of fund have spend to order Fort I I'll stands provide in needed capital our strategy scale where our adequately to in Americas vision XE project are we a expected of the Cady we bring deploying solution grow details production. speaking bringing And our Then, modular to some few the finally, the

slide to turn X. Please

We of left the construction contractor, Americas to recently time we've the be any Complex brought we conduct deficiencies overcome put highlighted, by the Boron a contractor short-term Small new receive previous construction Susan workmanship. been to in inject. the XE to EPA’s the Facility in identified As has position on challenges activities a our mile Boron to at Scale the able the last authorization ready and remediate construction and at construction facility

took smaller ourselves local team are additional our as to save on incredibly we of costs. of We a proud number tasks

are us to on even here the that turn The with upon construction the that path important is complete receiving will plant necessary on EPA. a clearance the work from allow necessary we the adversity, to takeaway

small the five facility current Our we operate. will have which Once for to the PLS PLS, plant, days Utilities we'll of that back suggests operate wells. XX take slated to to mechanical begin boric immediately The with the facility an small XX condition Acid; Once completion Wellfield, gypsum. the Gypsum. produce are with the million forecast the $X be authorization broken on end Historical sections: and ready into Boric mid-October. sections The Wellfield Wellfield; we conditioning acid. and and we'll EPA inject, out are acid to scale spent enough budget can receive scale Wellfield be PLS; data final Utilities; incremental to accumulated

well-positioned indicated it lithium will authorization to the historical inject and to the Assuming be that and condition Wellfield, given gypsum. time we’ll acid, to boric produce take carbonate,

in Susan have and phase. out, project our As the necessary only the all initiated industry to one our pointed in construction place have permits we remains

years. viable possess time commercially seven fact, be in that with we at In next online a resource believe any boron we deposit will five the the only permitted coming to

a leading supports has further date what clear pathway to soon land America. complex a The progress and North lithium acid in towards scale acid deposit the supplier to vacant from and Our a in be first boric becoming commercial boric itself will mineral producer decades. transformed

We completed and hours spent hundreds XE lost two without of any more injuries. have work than of time years thousands

a Americas a XE the Boron taking site are We business. from project to functioning

of detailed this mineral report highlight milestone our the economic May we’ve technical also production lithium this resource supported report updating acid boric by reached The updated This a a our by facility. included significant a commercial development approach carbonate. scale in a world-class with In from report at year, summary. deposit to estimates project analysis for and timeline multi-phased results

scale sets firms. we and EPC summary goals To deliver very report to will metrics a plan. engaged known our that economics life against, based the well estimates, In provides inform with to the approach lithium both exploration The ability project technical production. to derisk acid support boric report target Company future timeline and multi-generational and manner. that the asset on The and a outlines a This the and report capital return XX-year a attractive significant we and approach. IRRs plan a demonstrates production resource with the modular two phased in total, mine and expand

our X, model optionality. business can has you slide staged modular see on As multi-phase

optimize to deployment. make with We realistic and decisions plan capital that and execution us our economic structure timeline, have approach schedule cost an allows a

needs and we our keep will small be cusp scale facility, cited of of has tons of X for XX,XXX our Phase million, of tons combined Again, the overall capital an of lithium that believe, commercial carbonate. project. production are three-year lower of this acid our nature, bulk are Phase Phase we estimated scope out operate As a we’ll million, on anticipated relative $XXX report. being the of of able conversation roughly all amount span. are in over capital the with we far Under the Furthermore, $XXX short short these to to Phase targeting our to inherently current requirement X development time plan, in. over a first the costs the X planned spread risk X financing million boric conservative $XX X,XXX in just year

Additionally, cost report commence to short such we as expanding technical report of FEL-X lead after from small of supply upon operation the summary. final payments the includes long data plan we February, infrastructure, million scale The receive in FEL-X in refresh completion development $XX to initial assuming the down item facility, Engineering, refine wells, we is once optimizing the for equipment, of our the slated further EPA of expansion Engineering and initial which activities, the clearance term. water

production X,XXX XX,XXX that results projected discloses able In EBITDA to on activities our EBITDA standalone over very partially of self generate expansions. on tons summary short a These will a to future short and over Economically, $XXX expected attractive margins production we tons fund and an basis. profitable short, are imply carbonate the returns of believe with we’ll be boric be basis highly million XX%. acid report annual of technical lithium of the

Please cost of balance slide of position for X XX, our million update cash and $XX.X June turn an as with We quarter on the ended to cash XXXX. a plans.

quarter actions As burn the the year reduced have Susan taken in closed have of and fourth fiscal the quarter new noted, the have our year. we cash continued first fiscal in that meaningfully of

find final capital EPA, we development. structure to in X our the with investment condition additional conversations partners to the project funding summarized from where potential on slide and and continue we you'll capital clearing to other model an engage of is our await actively As This pursue illustrative fund sources. X Phase

of cost through spans optimized capital We'll composition a non-dilutive a that size as seen equity perspective. are from and blended royalty equity rights, a prepayments. This blended and schemes, look investment, capital, to use and composition across sources debt mineral

strategy, our on capital. Based we pursuing of buckets multiple are

markets, conservatively any capital and Our production. and capital such with the transferred that prepayments. equity for bucketed non-dilutive and traditional inherently to customer a royalty Phase Utilizing risk the itself plan equity anticipate royalties as We we X. for and under attractive commencement is is of be provider pairing it funding XX% includes for to particularly mineral commercial equity allows financing, non-dilutive tapping financing financing have around capital

With and business would own believe volume for In important prepayment terms and the prepay that construction enough material we carbonate or of to last customer-led discuss secure that and is a production J.T see The value will allocations returns this of from and/or funding for volume. XE to capture finance, includes utilize which in strong deliver finance, further options, overall loans to strategic bucket those capital model through government proposition of of our solutions, This government project will production for for for potential funds a lithium stakeholders. in or either our upfront project exchange and debt needs. agencies highly and equity, our our boric remaining their XX% is allow as value to XX% activities XX% attractive upfront investment pursue non-dilutive detail. and acid preference model agencies, government all of

few a our to pass the With now I'll to Starzecki, highlight recent Marketing Officer, Chief J.T? call J.T that, developments.

J.T Starzecki

Thank turn X. you, Please to Paul. slide

III outcome XE I'd drive Programs DPA like our capital of Complex. talk customers, towards Boron a initiative, construction of to encompasses markets Defense's, government, Americas of U.S. strategy program Over commercial Department the commercial to of next the us successful the minutes, the few funding the and cohesive the our Office about that Loans Title

The approaching at and market our we looks development. strategy opportunity commercial how first of part our are

offtake we bring having developed our a set a our to deeper with tight component As the we conversations sets from also Boron position us acid. discussions of on and as Small to rather relationship It brings position will of to a It potential product. an producer allows than just of we contract here a validation from of now be directly build, in begin customers. of offtake with commercial a playing in orebody position any field to us us future competitors. and Scale newest boric technical key Product acid Facility theoretical equal level online, to specifications the domestic the our boric is engage strength

earlier, focused multiple which with Susan to long-term mentioned potential advancing number we set strategy. LOIs As material have have continue commercial of a a foundation our partners place, on and conversations in have

partner on to key clean namely Our Interior DC energy government our Departments Energy. on of programs, Washington defense agencies Defense, and XE and partners by the for developing affairs in funding focused with strategy opportunities expanding is and supported

Through dozen priority areas we recent for for visit site engagements senior have and for a DOD the with advocacy agency government. partnership leadership, over staff, including with DOE identified and XE federal

the Department that to we potential on chain. believe industrial defense Given domestic a there boron with significant supply DOD securing a base, partner to critical the strategic as of Defense the new categorizes is material boron and

always are about reduce defense to processes, diligence feel basis we that with exist on and suppliers. the of timelines foreign While possibilities excited we industrial due beholden term do Defense our the in the near dependence Department to

That due readiness. Program varying Office LPO of has criteria. LPO. The three Each meeting its technical phases: and to of pre-application; Department a one and evaluation and brings Energy these degree us project or of essentially diligence phases Loans the of eligibility; has strict

with the and base process. to papers application. clear white fits strongly our to stakeholders eligibility phases have a strategically the criteria each our we begin feel this plan project, move meeting very necessary that our and organization, understanding for three an working of case We develop and As of and through discuss are

how today's well that and to expect Please rapidly. market Next, turn slide for XX. derivatives, to boron as market boron expand review as we let's

As with the permanent see advanced There you solar left, the chart ceramics. robust are boron in can wind of types micronutrients glass, have established been opportunities traditional magnets, on and technologies. from opportunities various in developing markets also and

and the However, International solutions, over million expected accelerate of going least with next to we All focus is believe new X.X of by one government's sustainable supply be to the several the expanding global on supply and is Agency given boron controlled the years. have create critical the opportunity at to onshoring Today, this even infrastructure for of approximately is of enormous government-owned focus domestic the entity. you Turkish XX% we And global Energy report, primary an demand can market the a tons told, U.S. see leaders. materials, further. per U.S.

XX outside Slide a this demand between existing demand on is online of brings the for gap basis. illustrated the significant and quarter the new That a ecosystem With further set From next quarter soon, the view, boric greater five supply and imbalance continue even to continues will context. decades acid supply to to XE by over opportunity into widen macro right. the on product to this projects in strained be come. years chart no come anytime for

production, conjunction acid customers validation will discussions. boric lithium to and for showcase the be bring DOE able to we technology our also to In with carbonate and our market commercial

of this the parabolic revenue rise lithium the organization. very becomes of meaningful past for few the stream Given our a years, price over

existing for and in by company, are sectors. to With our path strategic energy de-carbonization today, see we the need the defense, forward the As to technology, in two boron many be materials fortunate applications food various agenda security capitalizing to applications the we needed so more market on technologies. to a commercial advance bringing battery key

magnets fiberglass to few EV as a screens, vehicles as and is the to look anticipated boric just acid growth and examples. demand space, the shift we the for these for body, motors permanent accelerate touch require As

additional source lithium In desperately an of co-product carbonate domestic addition, is stream needed our critical mineral. of as

just noted, in are and electric energy critical wind ferroboron. which I notably earths clean boron are of wide As applications, which permanent and space, most magnets, vehicles. used most today's magnets, rare also commonly but composed the magnets produced are elements in and turbines a range is to permanent used Neodymium of in

magnets base. applications, energy to In permanent critical defense industrial addition clean the also are to U.S.

understood new year year fiscal for Bill Acts prohibited the the magnet Russia. bill, Authorization In from this procuring XXXX disclose magnet. magnets from and concern Congress year, Defense contractors established the of DOD Last supply requirement defense XXXX This, disclose XXXX permanent understood supply and include permanent These DOD detailed by Department. Korea ferroboron ferroboron year -- one the magnet chains manufactured just province that rules in National Defense procured of Congress refined the example is an for related boron is Defense permanent use where Iran, and requirements magnet The Defense. magnet passed North National DOD supply or fiscal and products. China, the prohibition materials, fiscal and off increasing in demonstrate of a the sourcing to from built mined, chains and into materials requirements included Department however, to in is include for and annually chains of boron's the a to

well Boron and advanced sector input ceramics, is armor. body items in as an aerospace the products into like like carbide into tank boron as used

we into these the opportunities, funding affairs leads perfect supply us to attached our As position into our a market opportunities to and segue it. program it government servicing

is an born accelerated is see, pace varied expected in today, for at derivatives So can born advanced and as grow you to the come. to and market years

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back to closing a Susan turn With few that, remarks. for I'll it

Susan Brennan

engineering a chart we to engineering that design you report Thank acid carbonate, down X that qualified, production we taking to product SSBF project like once Phase review slide of progressing phase technical are boric I’d in repeats with includes released of listen earnings the is on commercial enabling the progressing for lithium plant. commercial shared the Slide boric the acid our commercial X next both includes This and first for Phase call. and and bolstering when details time the lithium phase XX. funding. the plant commercial you design carbonate milestone of farther a break to XX technical and little our and team, negotiations into producing commercial

quick our close XX. review of our appeals remarks core prepared Let's slide with investment a on

production energy optionality resource, decision-making government. is as the the been a the critical And model boron constructed global near-term the exposure and XE required business and is clean reshoring, plant a with of critical be reached. U.S. multi-stage poised lifecycle, an in bodes timeline. XE The EBITDA to rare operated production along play provides U.S. a domestic finally, unique minerals, The project lithium. possess as capabilities. for economy. $XXX already materials annual is we our million, providing These our a Americas advance historically we the built role initial and will over to First, our by fully expected de-carbonization, Boron production has full the mineral significant once deposit, designated valuable capacity long-term optimize facility and infrastructure allowing to us Further, project us for with execution and throughout important

I'd questions. team will thank we to the open value Materials to work and for entire shareholders. to With as XE our the Operator? As their seek for always, build your Advanced long-term we hard contributions like at call up that,

Operator

Thank you.

Instructions] from [Operator D.A. session. question-and-answer a conducting be now Matt with Davidson. first question Summerville comes will Our We

Matt Summerville

questions. of Couple

And at stage? talk to with is then, be expected deficit would a and you permanent, market a I you First, can being, you follow-up. acid? the forth enter position the projections time firm least then, you're in by boric for respect you. to Thank when about somewhat the set have can EBITDA remind what inherent maybe that just And using assumptions us pricing

Susan Brennan

you question? want that you J.T, talk Thank you, market. about -- And take Matt. the can I Paul, will to

Paul Weibel

Yes. Thanks.

full into supply it get first from J.T, by production the deficit? up about And ramping you pricing we ton. And deficit. is there, year do So, per want then that driven X,XXX see to

J.T Starzecki

appreciate Yes. Thanks Matt. for contributing, Really it.

year, market supply fourth saw being one was for, last that third into quarter from So the spoken same deficit in and we quarter was perspective, quarter of really provided two. in trend the market that saw quarter a and all we

and point So as that more at technologies, we're on we're tipping bringing more today.

So, demand a uptick have demand. in production capacity to it's being outpaced by take small going only the to or

So, right we're at now. precipice that much pretty

Matt Summerville

a your about And start SSBF advanced then talk what sell your material whether strategy? as pursue customers output to maybe utilize you output to informs follow-up, that to just can versus to potential decision

J.T Starzecki

Yes, absolutely Matt.

the about output general. let's talk So in just

So, tons as that publicly the talked we've producing we've SSBF X,XXX will about be stated, the initially.

also that talked to to is more opportunities firm out have couple a tonnage pricing. plant up of We qualification offtake us publicly and bit product the of initial production discussions one, all go be product increasing And number allow of to coming about going that's different scale. a at the will around our for

the product go that's So initial that'll out.

sell it and the be his take that then and service of As Chris into and production able team up market even offtake the spot customers. start to run we'll rate, then early product scale some and potentially we to increase

take So, the then through that's move base, and sellable the identified product, our as into a intention product. the customer qualification is get with to product our other market

Matt Summerville

follow-up a as quick Just that. to

you at long How sell take into beginning kind you're end of such tail it will. You out stuff the of How to to of the the from operation good spot time drive higher the you're get product it the qualified? if that SSBF production timeline, getting of does take the to long look does market?

Susan Brennan

I'll Yes. take that. have Matt, Chris

Chris Knight

Matt. Thanks Yes.

startups We'll probably face some those. get get and running. all We as got we've anticipating those up We'll have. that needing we're addressed. plant challenges about XX know particular to days the need So, to

anywhere and and to for the have market six them, engaged that working months. commercial those they're horizon have full qualification. be then We expecting point, into chains. already several LOIs we'll for qualification to able critical to supply be product we've with, customers Those ours. talked placing out their we three that that's to start of time And At between really

Operator

Thank you.

with next comes Ben Kallo from Baird. Our question

Ben Kallo

change? Maybe first, kind you seen has that's discussion and -- with walk changes that through. have just it people one kind producer, your changed the from you as the customers any things you? sounds like Just, of customers’ understand But how being coming Turkey deficit with I imagine is just in there's of biggest how this demand of the discussions that

Susan Brennan

and do to maybe that want you also about take talk implications, too? J.T, the government

J.T Starzecki

with Yes, a definitely. you, evolution customer to perspective, are seeing that of are in for Good is sort Ben. to we very customers supply joining. we talk base. diversify Thanks again what clear their discussions signs to of From wanting

some, conversations of comes a quality on we with, that issues call, clear to product depending pricing into their to engaged inherent from what signs a tied have availability anybody very perspective. from supplier risk the and from just of perspective, suppliers, the are not taking there it is, the product is So, we’ll need in just around or But where dialogue and one globe. ongoing one product given be even transportation that two both the diversify,

say, seen we’ve So, that commercial characteristic discussions, year. I in would that's single the so most these far definitive this

Ben Kallo

for a I the Is saw, And management, doing way something at they be multipronged structure the Susan there people you. are -- like very where When capital? Romeo, that -- deposits cash or partner look with a short. sales, you like, they with figure, like help the that while thank position all -- the to,

Susan Brennan

excellent point. Ben, an Yes. that's No,

the have the the something And sell opportunity guess, the we definitely deficit, yes. answer is, we talked ahead that sell to are As is about clear to I dynamic exploring. similar

Ben Kallo

then off the some you said sign kind think I necessary had finally, injection you you, Susan, had say all just permits. you EPA for then of -- But did that, said the And you Okay. wells. you

that clarify me? So, And much. guys very could thank you just you for

Susan Brennan

place. permit it is the in to said done you often, There this is condition the as been Yes. That want we experimental past. because asking we for we has well an out -- -- permit in includes work that really as sure orebody those a And And had we conditions. clear. that question, because make has get work past, from are thank we done work are I and have as closing

EPA. given to we’ll data And look able be need the meet we’ve the conditions to we So, the once need then forward. and the them assurances, from

really on the So working conditions it's releasing are the it's not we permit. permit that on,

Operator

you. Thank

Riley. B. with Key Matthew from comes question next Our

Matthew Key

you on I detail of potentially wondering could questions. government III route. successful Hi. timing you everything go could DPA for the -- And just the on receive from maybe taking is you assuming you Title program, maybe share especially? how some Thank if greater financing there, the some was into just potential my much could

Susan Brennan

Yes. do you want one? take that to J.T,

J.T Starzecki

you, Good call. joining to the Matt. talk Sure. to Thanks for

into Title are sits So, buckets. the I think, Defense. of which And it the there it's is hit there sort probably two really down if best under on, you I III DPA -- as Department of rightfully Act, break

the key Really, attachment various So, chains start me or of either is there with technology. the technology mechanism that go that to supply let go an into components military, production that. into that

bit funding DOD. with more is The the application straightforward a little for initiatives

Department a You white the essentially you made discussions for of of that directly. into appropriations and Defense case, funds, your And bill. with you gets develop paper your request then, series and through you've a go put as an in written

on done is next now negotiated for So and bill is that year basis. an annual appropriations being

of into Title and funding. more a III get So, of there's the DPA that And mentioned engineering, three that a Then, go the you the I my Office, move different approach Department we remarks detailed the Energy phases. call what opening diligence that would right, path the the as to about kind phases, the talking under levels through the we as got has of Loan DOD schedule. when Program construction project itself, near-term you've of see due in multi-step you you through,

time. program bit a that takes project or more so, And little that

You'll something published that under that capital extend is available is get about a pool the DOE, all average see in time months likelihood, longer. program the said, the little of significant. bit done. might to That being in reports XX And from

look capital come we're of Programs we the the break how I going at the Defense to quicker the Loans large is say but will portion that when most under Department to So, structure, funding down funding, would of Office. likely the

Matthew Key

really I Got more me. J.T. guess I helpful just it. That’s that. color, appreciate for And one

of including obviously CapEx remarks taken prepared to costs. we per estimated? as year in be some 'XX, obviously for steps your at good fiscal a during spend, that cash quarter mentioned the burn and you should million not What's overhead $XX kind kind reduce you've that's You thinking look of of assumption

Susan Brennan

Yes.

then, you Paul, if start the me Let want to end. at tag and in

are because I when to to get once of in go order reframe, not we some to our the advanced forward, boric in actually we to boric an we Company that scope material that then of spend we start buying we acid down getting we want buy things today will materials I company. have up of we I the move today. still spending in need acid, out of narrowed So came and on the some May, are of just back the ground. And the call But will narrowed as it operations, we only

together in aligned operations kind this EPA it grade to if and what start you as So, graph are we from lower look a the lower level everything then up. went the the then ramp a we timing a was to Chris that going to And it we at and -- have hold that at we that is we're is, we level, believe in, team of his a comes work so then doing once and level.

want you more to Paul, that? context to So, give any

Paul Weibel

I reduced months. leadership that haves over appreciate okay, and are came two identified, what what meaningfully administrative really can go, once keep we'll what just must down in, said, question. moving she the the and just together our Susan pace burn have And and last got reiterating forward. And

is clarity a about get and that just and but is X.X have permit, as G&A then pure we up toggle can goal -- a our down. like on internally from and think to ability month, go I we

Operator

Group. Please proceed Sullivan from Our question. Tate with Maxim next comes your with question

Tate Sullivan

mentioned to, CapEx what million you will go talk an SSBF. about spending detail incremental a of $X little on Can think that on that? I you

Susan Brennan

Yes.

that -- you, Tate we'll question. for the me Let to Thank turn you Chris. over

Chris Knight

Tate. Thanks, Yes. Sure.

got, we've what now So Tate, we have the different we talked about areas. right -- five

mechanically in in utility commissioned and our PLS areas. complete and are We

basically We up and We -- are the in reassemble. wellfield. that testing then step the we'll rate we on disassembled for wrapping preparation just

that the boric machines, the the there. the piping spend, in of really The majority some cranes, that the areas some dollars welding acid gypsum and finalize using small we're and some work ongoing electrical So, and to equipment cost leased construction. finalizing is going needed into just

Tate Sullivan

related ongoing of dispute mean, I -- into consideration that, as any an such? outstanding is also anything terms or ongoing there then to should in we And with payable take Matrix

Susan Brennan

to Yes. questions. And I going yes, we're answer This any -- not is active litigation.

this So, we're that questions any at liberty at not to time, topic. on answer

Tate Sullivan

on already there acid a of tons a Understood. to it terms rough testing the in short and targeted you J.T, SSBF And boric quality for X,XXX that offtake? production. earlier, then of of spoken Is potential portion addressed the production, and

J.T Starzecki

Yes.

So, But go material going qualifications. multiple testing have Each sites. they site of quantities, shipments will for to we through an -- some of not is from be plant. require commercial a to overall going to full several significant customers, run And have their amount our that's perspective. amount potential really

So, tested that once production, we we then we volume get sales. continue once -- cleared, on that gets material those for and have should that available

Operator

Thank closing at floor you. turn There for back the Susan like to this comments. are no further to I'd time. questions over

Susan Brennan

Materials, and interest your for in XE Advanced time Inc. everyone you Thank

and us have We the world. boric to in lithium a front newest opportunity become in acid producers of tremendous the

executing our ground leadership daily. on have execution, the team go-forward We with and and the culture,

assets years. journey several have and of to proven We're modularly with the the looking expand to all this a next you. strategy We asset a sharing over forward

Operator

today's This teleconference. you. Thank concludes

participation. may time. at your lines Thank You disconnect this you for your

5E Advanced Materials (FEAM) 30 Aug 232023 Q4 Earnings call transcript