WWR - Earnings call transcript Q3 2017 | Westwater Resources, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Westwater Resources Incorporated Third Quarter 2017 Financial Results and Business Update Conference Call.

As a reminder, all participants are in listen-only-mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. now turn would to conference I M. Christopher Instructions] like the to over [Operator CEO. and President Jones, Please ahead. go

Christopher M. Jones

Thanks, everyone I results and Chief Arryal. XXXX Officer business quarter Welcome Executive update to Westwater conference Westwater. call. for am Jones, third Chris Resources’ financial

three listed website call our You’ll our remarks. the NASDAQ. webcast www.westwaterresources.net Telephonic following accompany will our where from we weeks replay WWR This find as for on the is be call. call available website our being to of company at on today’s posted slides

We discussing resources our cautionary cause our from be slides on uncertainties involve some will materially and forward-looking three. review and could we audience risks statement two through information and caution actual that statements differ Please today results notes to that about such projections. reserves and foreign

risk to In annual latest the quarterly that including factors described industry, addition, in U.S. some there with our filed our are are SEC. financial reports and specific

in I Vice and from headquarters of in brief Operations Financial office portion Officer and joined Vice question-and-answer a presentation by us joined Jeff of Chief Texas. our by McCoig, Dain am the have Finance; We before Vigil, today’s our President President of phone call. Colorado

slide four. Let’s turn to

Board our have our Cryan Terence to of we as Cryan addition our wider broader are time, We spectrum Resources prior Westwater in Board on with XXst. of we times August has into back. At an our company. successfully Mr. Renaming continued same served strengthened and accomplishment the that the business him business focus, energy happy transformation a Chairman. to resources reflects executed on we

company discovered Basin. our evaluating Columbus Phase a from that of Columbus operating fringe of we path of means parts showing depth development results play, Rica, with that its on the the XX come note all by further favorable at that water saline is Sal and or data basin. acquired our to showing X We any This there brine western must important Westwater steps exploration this lithium for waters sample million. remaining project results way drilling At per are at time. at mining very for continued of permission produced also on completion for and Basin. holes rights between business lithium released It XXX Our the with XX we X

both We are process in Rica. and exploration the Sal application license rights for at an water

We our Tulu also Tepe in discovery announced be and is deposit developed short-term producing a the at Turkey. of Republic easily properties project. revenue clay This can

funding complete secure initial will to financing priority matures, our commercial instrument through XXXX. reduction our financing line and We its know product issuance an customers Also coupled with acts them. cost quarter, credit this equity interest stay Capital tuned from potential for efforts with to testing is details. continued similar activities secured quality once with with Aspire This we for

We’re that resulted in in $XXX,XXX continued in efforts work Texas resulted have especially reclamation to and efforts Wyoming our major XXXX. has Reclamation thus completion Mexico proud and environmental the release milestones. far in bond license in two

at Vasquez efforts plugging well Additionally to This bond for reclamation to for restoration us of us complete. month. and and project our well this next apply importantly, begin and on State the has the deemed paves as Texas very allows groundwater way release

to this the where Texas this in of of work, and to reclamation communities Westwater. commitment our We’re completion The of work as keep core phase value proud demonstrate our team here something getting we we serves hard in done. at continued a our also

In where lithium business, green we’ve for two for for and in great on business evaluating the further opportunistic our Westwater million value it XXXX. on of budgeted drilling for monetization meantime, our in U.S. continue includes program the energy optimization prospects to and shareholders. be value attractive to we’re and assets. of future. position in uranium. projects of Today, legs a assets With portfolio our We Company standing creation exploration This is noncore $X.X energy of capitalize in and metals lithium the the creates Turkey,

over Jeff turn I’ll and structure presentation our to review the summary. financial capital to Now, Jeff?

Jeff Vigil

everyone. day, Good Chris. Thanks,

First, let’s five. on and price market at million. at share the shares approximately of the At take recent look structure capitalization $X.XX stands a $XX.X capital million our with XX.X slide outstanding,

quarter, During remained calendar performance quarter stock -- our steady. third

uranium and volume equities However, $X.XX $X.XX.The average September day. strong price however of negative with on liquidity trailing XXX,XXX dropped approximately has price on chemicals of daily impacted market report uranium Xnd, an a on on three XX, from price its outlook trading October WWR’s analyst outlook the shares remains of a to average current all months per

six to the improved slide highlight on for financial the turning results, to want WWR. summary financial QX strength we of Now,

Our approximately cash at no XX, position XXXX million; we $X.X most importantly, October was debt. long-term and have

to million September XX, financing place, of XXXX. activities expected with capital at $X.X facilities fund working business our in Our are XXXX we’ve put through along the

the million September note original a budgeted and terminated this XXXX, loan into $XXX,XXX RCF was exploration going drilling Most conference and importantly, that XXXX half in we cash retired us now will participation XXXX, per $X lithium approximately last is budget XX, ended interest noted the of payments used during be which in the had cash and for operations ground. of equity with XXXX. our Net shareholders’ months for the in $X.X due provided that $XXX,XXX with rights with nine or to board RCF. million representation quarter’s an and interest payment and million primarily decrease a agreement Capital $X.X Once first compared July again, administrative a costs In and The the interest the Resource with saves retirement reduction in million expense to to year XXXX. income. over in rights. used $XXX,XXX of year general period increase same during loan the $X.X of we RCF year final we As convertible RCF of call, Funds quarter

third During G&A down quarter, pare our to continued the we expenses.

XX% was due X expense was equivalent to in XXXX work, or Basin As the expenses Expenditures the quarter at cost that of $XXX,XXX; Project. incurred were XX% for lower mineral by QX the our exploration Columbus in Phase XXXX. higher approximately for than property G&A a drilling result this

net was quarter the for third million in versus Chris. of The in the interest loss $X.X approximately And decrease primarily our that, approximately the to million $XXX,XXX $X quarter loss to back XXXX. a of with it Finally, was due you, expense. I’ll turn decrease

Christopher M. Jones

Jeff. Thanks,

estimates of rapidly demand look seven. will Let’s supply world’s recently the lithium we about global production demand and of we speak demand reported batteries average influence uranium that batteries. slide Bloomberg batteries. lithium-ion are per fundamentals at on lithium has demand, at for outsized growth, transportation of new growth an XXXX. batteries. When X% and CRU that transportation Tesla’s alone the of through the is lithium-ion speaking output again, by increasing year double driven This rise can over the

high demand supply electric major the to hours battery for terms hydrocarbon-based slide States the line ban factor. of There’s XXXX. The United serve to exceeded XXXX gigawatt dominated announced transportation the lithium of a has XXXX. vehicle the reports vehicles production reportedly XX% relationship cars they vehicles. reiterate, powered has prices. in that in will electric in there sale a a entire further. subsidies cite X not that is to target major worldwide, China companies sector. speak committed for car To green with Media the to few China of marketplace eight, is auto lithium million the we supplies in enough Turning of these little the the which in current and commentators and China by tripled spreads market are demand serve manufacturer of Lithium production sales on XXXX every lithium over growth. for inadequate road controlling years needs, in also five UK developing well the electrically bodes by to and cite China’s are

for over Phase completed own of three own also an low-cost have earlier, X from curve. encouraging, exploration exploration that and Preliminary exploration on of are to prospective we underway. in for projects that beginning where drilling the relative exploration results our the and for share developed and existing our of The XX,XXX from on as process mineral brine control and slide to noted planned for lithium Basin, the is at It are acres quartile. be Rica, the Phase half fit Valley, Cook, investors nine, that that this from us, At basin of to control deposits. our remaining Columbus Note capitalize drilling application projects costs base State X prospective we on adapted new in this working value resource projects curve, have up the slide water lowest about our processing sit we lithium previously. control the production, prices curve applying developing first to for property. to investor. program find On real in feasibility in XX, tied is in XX,XXX Note companies. acres approximately Railroad is Nevada basins are in of curve. by rights and on indicative our On discussed and drilling steps is opportunity our in cost lithium, a X,XXX Utah rights of strategy At water we program; course, talked we junior the Sal of and up designed highly brines economic of we we lithium expertise rights is and of of our groundwater pre-discovery are have next of represents on period rights Utah. that acres mining show resource a application all we cash own there, an rights now. lithium this something of in On XXXX. and Our have three At evaluating Brent mineral creation have of one as over right it, for mineral quantities our are

remind of improving. world. fundamentals this in to dramatic, recently, production market the with was increase that inventory, everyone the lowest providing of uranium our development Turning with world will are further existing to business. this market close want low-cost open Cameco out value crown on virtually announcement present capacity; in producers one reaction cost of jewel uranium to as announcement the market’s the XX, price satisfy X% strength we slide uranium remains Most the future slide our requirements of extensive overnight. Temrezli further, we to and proposition. the Uranium XX% intends The XX, the purchased with uranium market. potential they On uranium to

We in projects. uranium. energy Basin lithium We’ve robust leverage our exposure and the green lithium lithium advancing to sector metals and brine the Columbus have by to Rica expanded increased Sal

and Texas in to our our extensive base. retained processing in leverage also with projected uranium cost licensed mineral have Temrezli the We our low rise our uranium project, plant prices

Our reclamation particularly, our million Company Texas, drilling business and lithium is exploration of through are $X.X reclamation including and XXXX. and bond in program term. will add successes, provide And our to plans that, debt-free in intermediate relief the near funded all

can year team is expect business a sheet, had our well-resourced to You news We’ve achieve energy great XXXX. progress into in things and improved With and continued far. exploration a year this metals cash an updates strategy, balance on other broader treasury our flow terrific well and next. great so this

XX, to your for attention thank slide we you today. time want Turning to and

up Let’s Operator, lines. the open take some please questions.

Christopher M. Jones

Thanks, Arryal. allowing a management provide on great you day. this Westwater’s to team update Have our for business. thanks Ladies and gentlemen, us

Operator

today’s concludes call. conference This

have and You participating may Thank disconnect lines. a pleasant for your day. you

Christopher M. Jones	President and CEO
Jeff Vigil	CFO and VP, Finance
Dain McCoig	VP, Operations

Westwater Resources (WWR) 13 Nov 172017 Q3 Earnings call transcript