WWR - Earnings call transcript Q3 2018 | Westwater Resources, Inc.

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Operator

Thank you for standing-by. This is the conference operator. Welcome to the Westwater Resources Inc.

Third Quarter 2018 Results and Business Update Conference Call.

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

Christopher Jones

active us all Steve, quarter third and is our call. in you with our thanks would Statements will processing Jeff please last in and you, over here conference to plan years a value. have in With that a One and team, Finance Alabama to me X. Centennial which pages, Thank for turn more us to Westwater we of and Forward-Looking shareholder to results completed remind joining Vice XXXX acquisition that $X unlock information. mining, like of business manufacturing Vice of is for a backed our year our and today. With following Resources’ released by the Vigil than billion McCoig, efforts Westwater. revenue. Welcome the Slide some XX CFO by of Headquarters cautionary President plus These very Dain from be small our Graphite to I to President Operations. to and the has facilities the statements listeners read phone are operated discussing on size we as been ranging our

enacting on plant. our make progress We continue to

operations will overtime. graphite operations scheduled flow plant purchased are and for utilize plant Pilot initial bringing The Our and forward XXXX. feedstock, cash revenues start-up

expected The in the with business positive first XXXX cash in XXXX. for are graphite revenues the flows expected plant from

grade announced than micronized kilograms we suppliers non-disclosure with dozen successfully produced this quality time. purified two We place over because that to and potential that have product at our and of that grade suppliers. with battery customers more huge for attractive materials in confirmed States, graphite confirms by have graphite, more four We the to ability battery customers in much is makes Coosa it we Project graphite produce the lab, United this an independent agreements which

to sizes a wide intend in variety Our manufacture. battery compatible advance been the five battery microns This products we electrical it performance making graphite demonstrated. the ready produced of three from products types first XX to of given battery it has is have with

also of and services base. is to We graphite our and the Polaris concentrate announced us addition enhancement development the Metpro in process. technical purification Metpro helping of

critical the port Polaris We of In the lot project. of Coosa owners materials Projects we an the independent value of gaining fact, prequalification with Graphite as Coosa prior engaged and which believe as customer customer part from of important brings commercialization. conductivity to testing which, to perform part an acceptance A lab is a program the

with potential as very have customers are. several discussed than We already we this response more excited and gratifying been has relationships the

brings Carly our the added both also and will We She Directors. Board of Westwater. wealth Anderson of community, investment of the a be experience in to assets to industry critical which mining

which Aspire a that, Jeff XXXX. provide year, liquidity our balance January update. like earlier as an Fitzgerald, facility with as to over corporate Vigil completing it sheet I for registered ATM well have the Capital with of strengthened offering direct We to would this turn With Cantor a by necessary through

Jeffrey Vigil

Chris. everyone. Thank Good you, morning

structure capital look on First, let's at our X. Slide

XX.X outstanding and our and recent shares million. Our approximately million is capitalization share $X.XX price X.X at market was stands

long-term. and into we Temrezli the potential largely asset significant projects in believe and in materials as revocation mineral business Company the upside diversification year. pressure tax performance for the owing a by During our with the expanded current strategy Sefaatli year, as and space exploration licenses on quarter, for continued our was well a earlier the the provides along supply at mining influenced this the Fundamentally, time battery the strong third the of sector our is of stock

Now turning of XXXX. XXXX. third in months XX, the third cash third the quarter ended to $X.X to operating and used of nine for XXXX X, compared in our September the summary million Net quarter for quarter million financial activities and Slide was $X.X

in general nine XXXX. was the was months increases For $X same the periods million both in to in XXXX, of cash increases $X cash compared period operating used used activities for in million The reflect for compared working Mineral approximately reduction exploration to a property by quarter the XXXX XXXX. our expenses third The decreased of quarter project. lithium to capital in in XXX,XXX activities decrease the in primarily of third purposes. due

operations. months the XXX,XXX, the and cost $XXX,XXX, and and The acquisition same reduction respectively, third payroll properties property the expenses increase expense. reduction of result increase of projects the period the $XXX,XXX XXX,XXX $XXX,XXX related in Tafoya increases the decreased expenses exploration consulting primarily XXXX. in was expenses periods to XXXX Cebolleta XXX,XXX months mineral decrease of of by $XXX,XXX. administrative months an compensation corresponding of to professional For of XXXX mostly increase for General XXXX post due of quarter this our of due the activities of XXX,XXX land with XXXX, thousand as stock for from XXX,XXX was the was by compared to nine burden XXXX of nine and in a in owing uranium and the increased quarter nine of Juan of Alabama in and a of and third The for and in for both salaries lithium Graphite

expense and the increased compensation to were public decrease expense These corresponding XXXX. of stock compared increases Additionally, partially period $XXX,XXX. legal, a as in offset by company $XXX,XXX by in accounting

in administrative loss compared mineral expenses decrease net $XXX,XXX. as or of our was Temrezli net increase compared $X.X in and was same million $X.X for the in share of and and expenses working loss result projects XXXX. in increase interests of the a an of plus period $XX.X primarily the net loss the period increase a consolidated of Crownpoint nine of of $X.XX XXXX. Sefaatli the mineral to million combination consolidated XXXX one-time or was per XXXX. same balance cash general charge from Consolidated loss $XX million share increase in per gain was of or $X.X capital uranium the The in the $X.XX for months and $X.X of from the loss impairment on as per These of Company’s recorded for the a for Churchrock million million recorded million consolidated XXXX to an offset was result of a sale to the The respective reduction $XXX,XXX, This mostly per of cents million The Graphite properties, accounts to $X.X XXXX. in payable share, of XXXX. The in and for loss XX, or XXXX a loan was decrease $X at $X.XX in acquisition operating period and of marketable costs net continued prior Our working quarter working sale due third were in securities XX, at share funding respectively, $XXX,XXX. property and of September December million in the $XX losses. in increases million of $X.XX $XXX,XXX capital by and the compares $X.X capital advances million for $XXX,XXX million the Alabama $X acquisition

the approximately to I million. cash held XX-Q equivalents the XXXX. Chris. the of Company’s expected Company’s January with agreements filed and back is As turn through totaling on necessary working XX, Company’s you The in XXXX, With October cash financing $X.X the funding Xth liquidity XX November along the that, capital, Company of it described provide from will anticipated to

Christopher Jones

Jeff. Thanks

Graphite our Green-Energy X, portfolio, Slide our Coosa includes to Asset Project which and assets. uranium Turning with lithium along

critical as three and security of been economic in the all Importantly, our minerals identified by U.S. to the the have prosperity portfolio Ontario. Secretary nation's

by cars. plant in successfully the a southeast The will of Alabama has this of utilizing of automobile factory lithium-ion a for plant area X, their Project to $X Coosa in friendly Birmingham. SUVs past graphite located Turning Mercedes-Benz business six miles XX exemplified that of remains electric geological global future of one a build near a a the near thousands spanning of commitment factories Alabama electric This supplying Graphite Slide producer Alabama Mercedes known jurisdiction Alabama. billion Sylacauga, acres belt. trend battery The been state. tens is as be building assembly batteries facilities Alabama approximately battery securing from to

manufacturers Alabama forward, minerals Graphite of to addition several facilities production our there Project fast-growing and Slide cash acquisition Graphite. opportunities. for and Mercedes-Benz States are in compromising going This auto in only flow slightly. an the energy, graphite leverage environmental other be States. with the increases the Current on will is while the the In simultaneously battery footprint. and import in XXX% efficiency The project revenue China our premiums Coosa is vicinity. provides XX, On to Having with U.S. controlled contiguous the operational by production grade supply project dependent unsustainable without consistent United markets, United

Coosa battery continue and have component Slide state and in to with We mutually which On processing XX, scale County Alabama variety enhanced work the local in Spherical products, the PMG, site and This products wide battery business these connective permit provide three Coated and and beneficial a explored facility incentives. full of are Graphite for officials Micronized materials allows conductivity with Delaminated to to performance Expanded Purified provide graphite or manufacturers, us end-users. Graphite CSPG. Purified DEXDG Graphite

for the had We power lion PMG, electrical four lithium we independent battery and of conductivity enhancement material PMG rechargeable an batteries that batteries, alkaline we used acid that cells product as tested produced September we kilograms then in announced have lab that lead lithium is application. performance. highlighted at non-rechargeable for

PMG time. there project. is Processing we On a planned This significant how we at the XXXX. begins So the technology. mine customers about across now tested now deferred Slide spectrum. purchased until being use to on sustainable feedstock PMG right for opportunity available derisked is proven have the Graphite which Coosa potential Samples by of XX is and environmentally this battery widely talked is now project are

As longer the no is permitting critical path. such,

is this Coosa. the mine, economics you production for away. years see earlier in Slide and On our plan materials mine and accounts product can plan to speed qualification XX, don't start graphite graphite. contemplated. in this The critical about for begins of for dependent customer permitting introduction again XXXX, at for space expected in to of are worry the associated We with take coated us project generating DEXDG some place XXXX, the production have the is PMG timelines is and solely XXXX in of start year, and which on of plant is to pilot planned prequalification large spherical Graphite full is purified furnace operations XXXX for first no production next and to slated batches allows processing our Expanded slated starts product battery Delaminated longer than material for timelines business XXXX. economics originally advance works CSPG the of full-scale to production market effect market advantage on products the stage Our

We Positive have $XX [NPV] and (Ph) XXXX to to one capital year from expenditures. reducing by XXXX. now advanced cash increased flows XXXX revenues the XXXX are advanced almost by million, while from are

Slide our lithium to projects. we Turning will XX, cover

expanded the project and Our own lithium the projects include over has good access, of and still are to there. groundwater most acres We we Columbus progressing. water power XX,XXX rights basin highway

drilling to with Our phase have At the we hundred underway. is released and from power been already million complete with per good over is aquifers got shallow program planning Sal public. results encouraging acres results sample have up II access, to X ranging in Rica, Utah XX,XXX parts in road phase

state have covers the evaluated plaster lithium claims. in this as Railroad acres for values with exploration have we XXXX Westwater and an been Valley data reconnaissance has rights and parts where by returned has Nevada Utah as project Our is mining high The permit million. application approximately acquire at per of way geophysical time. area XXX federal we water that of under

rights applications underway Our water there.

continue We knowledge our on positions projects. in rights will water develop geological these to

growing cover and to come uranium is We XX the Westwater. as produce Turning our focus expected they the online. to for side years a demand reactors are power. still need than XX, more reactors are coming assets. strategic Uranium these nuclear right all will we Slide think to is They close be now in to XX% there uranium

market are uranium planning happening. year Back volume energy up those more for uranium the team. price now a $XX market almost people since XXXX, Five reactors is current XX in market now. backs rise as for and to risen are alone. since I an over uranium made now XX XXXX they tenured has million people This have this volumes to we the spot that a and pound The to that a A on that securing strong XXX also it from uranium uranium of have analysis a futures management that a be highest year all $X we prices our continued $XX up September, would in $XX group belief overall, of a pound XXXX. increased so XX pound concentrator far sure pound we since leaders that Additionally, in business at we and every and spot is our development. stages our are had prices interest makes have like announced up the pounds concentrate possibly hedge. in in supplies Slide in clear lower minerals can as features safe make August. Market way. add there

that means incident an not kind required incident any job We care of sized years much a for and either we group, the without of for last well or reportable a kind That personal any medical as environmental a is have three now achievement years single that the very quite safety. so over congratulate Westwater gone in over team done. any three

Turning stock we price is to Slide are today. XX. significantly bullet a we Westwater didn't the include investment. at point, Well looking but great our undervalued Why

cars I of all key Energy, our for to vehicles growing portfolio are to the to out investors energy system. in critical and been security. have for particular Electric Green X% rapidly. point electrifying with of continue batteries already Energy deemed they interest Green which and transportation the like storage materials, those to We our are are all national sold expand would

and the batteries to to solar sun power calm need is does wind shine. store can and when needed, they the power be grid so not addition, released wind not when In the

graphite place this through with to for debt United XXXX. opportunity in these ingredients remain we We free already Our produce and factored great financial we an battery cash products, are When produced fund have States, batteries. essential you us in products in and these which developing can are with presents that potential. the facilities January

this actively are for achievement milestone Sal a have assets lithium our too rights water and our monetizing on forward we including projects process development water and our updated at rights and year, We our of Rica. to rest and non-core look Railroad Coosa, application lot to exploration the Valley

Slide and being sustainable while adhering participation reiterating on graphite, American Energy Finally, uranium Westwater XX, By asset offers U.S. American strong portfolio with environmentally the upside practices. of in in its lithium an our revolution, Green potential. supplier to

of we with experience in We minerals that management. energy call have like team operated by longer and to a while view. financial proven would development management with I the end have term a this stating portion

favorable We are for us that allows creates flow grow be startup XXXX generate kinds in positive of the beyond expecting using in business our which cash cash graphite initial then develop and business revenue tailwinds It to all from XXXX, generated the and us. flows to business.

of lithium. chief we just business. projects are have positive hundreds we provided to of per and with a the will components things that growth There same will going in add of go time, second reinvest that same over At many couple batteries out batteries course discover the mine. exciting our development size, of to has a ability and a it, is happening a kinds those graphite the the business while car the graphite line exploration years and graphite Remember graphite all the of we to of market effort developing markets year tons lithium electric an We are into to. pounds is significant the XX,XXX building of

and are for see may uranium our this pounds reduce hands over Texas uranium of a graphite. complete for properties and we we almost of continue the as in development. at placed pounds mind, reclamation activities costs With to Tesla, that a have lithium XXX holding in we as see XXX in You we better suited properties of some those

a develop instance, pound when develop to our on Resources, had could we a took return Laramide Churchrock we that cost that that for a would pound sold with that to property. $XX have Laramide of to For Resources sale $XX property royalty we to company

shot has so ownership Laramide development and to real in participate go creative property enter a at position kept deals small can same at still the space, time, which success $XX in a an we royalty, into at It particularly as we pound a Now company that is can us along the the to a uranium something we in with mortgage. only prices enabled do the have cent.

shareholder portfolio we asset value. will enhance that, to We believe continue deals that questions, and would With and I the pursue open our like to Steve. opportunities up to call strengthen

Operator

Research question Please first with is ahead. The Instructions] Equipment. Debra from Equity Fiakas go Crystal [Operator

Debra Fiakas

my in taking opening for In lithium, have permit, you three things remarks applications. there those regard pursue development understand water waiting for on pending Perhaps to from you of that or the question holding approvals. for I one exploration other Are on are permits Thank can a pattern a applications rights you materials. agenda for in questions. have that you you. waiting Thank decisions while couple each you permits your we the your are

Christopher Jones

and for at question With is our class requirements that the there application plan basically out With further regard detail process the potential detailed permit state, course now there, we with advanced, a to they to have this working. us at Sal and time. what believe so at to water water two were and potential is pending to we and will Railroad with will ahead to state. the the exploration resource the the rights are our we of things to we point we water the same regard basin regard rights Debra. working Valley, for on the regard Rica, to out further need we with thanks up prove permit is of as what it's Good and and to coming believe do rights waiting so are well be exploration asking With over the we year seek Columbus a the that what have states already or for the right

Debra Fiakas

events your not then soaking-up in you. excess there have We thank to say prices. movement uranium and to around Is start assets And in see time market. capacity the that kicking cost only analysis, and back assets schedule been inventory, a Excellent, on uranium of now those tires the the the progress refining and of in timeline walking some has online. the upward as a in your bring to regard considerable Texas well the it others but noted or

Christopher Jones

Our very assets production are regard to there. to well known in with for us executing worth Texas plan of

to we right than and The price XX the months five further point really before potential. rises years, ago low already a mood have over isn’t the would later reliable, in a sooner the or this Texas to us think So and space. now it's have we from if I of rather planning about you excited think are that past pound incredible this needs uranium excited said pretty I price at so the we $XX spot with XX were feel prices, prices the frankly are price would in activity. a talk $XX rise about market $XX needed we three The about year to XXs,

Debra Fiakas

then last about Okay, the excellent. questions graphite. of couple And are

brand-new signed number those a You kind release any entities. press what you NDAs, signed remarks think of kind if of and of could are kinds idea from have as give about well entities these got also as of the quarters are have an NDA's mentioned just holdovers the previous you of maybe I NDA's. that in with us in those opening Are

Christopher Jones

working documents, that they but always to the names are material. on are in Well can test continue battery household they NDAs are because they with disclosure we disclosing and I business, say our as restricted

and to that guys view those to that timelines As without Polaris some bit test. of tend and the can being could for produce are hands the we material qualification long, individual as qualify and I were anymore customers, we little market previous lab along to so our who products PMG, with discussions We occasions, on house a we get they a to than four to shorter, of with having are talked ready faster years we are for couple PMG, own to about of can it progress we we folks further into the were these so say product the specific of kilograms some thus pleased that be and be how far. but

Debra Fiakas

and Excellent. other come I will with questions. back Thank maybe get back into you. queue later the

Christopher Jones

we we feel Deb to to any other you the now, Well, questions you questions ask. always ask enjoy them right have happy are would and free like

Operator

next The Instructions] a from ahead. McGuire] question Please go [Operator is (Ph), [Sherry investor. Private

Unidentified Analyst

I what invested internet, a what find or so not. in learn graphite it’s five to I’m not I Alabama don’t person, I couldn’t had years stock know, Graphite. and a the them I knowledgeable basically Probably I’m private investor, even market have the from learn something. been Anyway, on the comes and so where about

full mine is or And to around that well So were will something you like have My have you one is understood you Coosa you. be started the had into mine that say Alabama in that when they a correct? have as to I’m me educated and what going XXXX of the to going do other that are question not they I as Coosa understanding production well. from excuse the what to out, is if not first I’m those

Christopher Jones

Yes. It correct. is

Unidentified Analyst

believe in is project. I’m the a there any investor I’m So, your going really see long-term before return I’m estimation? a my just XXXX, money, possibly on would I to I in be investor, wondering any long-term revenue,

Christopher Jones

a So plan explain the in I bit little more can detail.

owners the accurately They what be in because don't believe the so or do. in tend put reason States So you identified matter years five United prior to mining we no timelines. XXXX permitting was we the that

mine processing so the we we did graphite advanced of than feedstock, later. facilities the the we contemplated will through we of and up purchased are the going start originally build far what production use So is to earlier

investment we we have in and that derisked did revenues planning Alabama aspects So previous XXXX What plant. Graphite that we to forward of the control later materially house. the production the doing that far terms than quality original and in under been in time then was brought can would

as your you can't things. is team on So that you can that I we is question, promise promise right doing investment? the best to as second returns give the chance at as ever particular to the it your I we can hard expect are this and can. what

Unidentified Analyst

actually you plant. building So are processing the

Christopher Jones

Sooner later, right. rather than later mine and that is exactly the comes

Unidentified Analyst

or life mine After plant. you the graphite in into getting processing unless have the are the the to those plants plant built processing the and that from and ready mine you to you go, correct. go Is opening

Christopher Jones

Actually, graphite we plants market. in the are to on going to open the buy process the

graphite we we later, We will material plant purchased on that own early our are material and we prequalifying as stage produce the early can in speak. run but

Unidentified Analyst

to And China is come going that from then.

Christopher Jones

the for potential likely, graphite and be Not suppliers basic tend Southeast to Africa.

So and potentially Mozambique, places and Madagascar Brazil. like Canada

Unidentified Analyst

now. have understanding a so I better Okay,

and eventually grows the outside supplement business and as going over you to to Alabama an as to then the to source. Graphite You mine buying opposed it from then are going switch are open the graphite the

Christopher Jones

have. future, blend correct, the but do That well that we that may that the exclusive exactly for we would is very materials retain on option best we graphite, we it our into customers make can may going own the so we

have you you - So have… do got

Unidentified Analyst

or each was consistent test whatever place Alabama that that that in sample their was Is graphite could to from. like different material also right? Coosa material be them the to sent in understanding indeed were It agreement the to for consistent make batteries they sure going processed products, is whatever investors and taken so it that put at mine to from make with into and my they that they taking to from wanted the knowing the buy was graphite was future itself an fully

Christopher Jones

product Yes, is thing, the even to the a end do consistent users endeavor to critical the certainly same manufacturing... we

Unidentified Analyst

make have the the in sure a is product of mine. graphite this you Coosa to from So how consistent of

Christopher Jones

exactly. think I

getting all first sure are proper you feedstock. you quality make So, of

on are making manufacturing and that are sure capable really of process you that product consistent what now. make focused You is we is a right

Unidentified Analyst

have taken to I appreciate time it. and you. your I Well Thank Okay. on up

Christopher Jones

question. a for Thanks the problem. Not

Operator

go The next Equity question Please is from Research. with ahead. Crystal Debra Fiakas

Debra Fiakas

I When to in was looking the caller. the simply rounds, you, maybe the sign going purchase to out any the market is the or are it market spot of just extend to buy commitment to Thank have initial and you for are kind questioning just previous for graphite be you to from going hoping production materials purchases?

Christopher Jones

Debra. of is management with tend question do do, they. Great and There we risk to blend longer suppliers a arrangements term like so to

Debra Fiakas

Okay, some so or once or purchase decide commitment sort supplier. would agreement be of there kind understanding some perhaps who of you appropriate an on is

Christopher Jones

that Yes, design. our is

Debra Fiakas

Thank you. Alright.

Christopher Jones

all. again at Debra. once Thanks Not

Operator

like the Jones to This back concludes conference the Christopher to question-and-answer session. over closing for I would any remarks. turn

Christopher Jones

a Steve. great you, Thank Again, time have day. Please the thanks for taking story. to hear our

Operator

call. today's conference This concludes

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

Christopher Jones	President and Chief Executive Officer
Jeffrey Vigil	Vice President of Finance and Chief Financial Officer
Dain McColg	Vice President of Operations
Debra Fiakas	Crystal Equity Research Equipment

Westwater Resources (WWR) 10 Nov 182018 Q3 Earnings call transcript