WWR - Earnings call transcript Q1 2020 | Westwater Resources, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the Westwater Resources Inc First Quarter 2020 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. Instructions] [Operator

like CEO. conference Please now Jones, to turn and President go to would over the Chris I ahead, sir.

Chris Jones

good XXXX minerals and Resources you joining We Arielle, morning, morning. to of Welcome Thanks, this the appreciate first all quarter update results business energy us and conference call. everyone. Westwater

the I you and of families are For call, you your on safe. trust healthy and

Operations. President is I of our read the will on pages statements our Vigil, forward-looking me Vice remind Jeff President like and as some call our would today of and to listeners Finance; our and on Joining Dain cautionary we McCoig, Vice the information. discussing CFO to be statements following

in Slide green is a uranium. X. with energy to a Westwater lithium of graphite, and developer Turning assets material diverse portfolio

Utah a that the business lithium exploring bit And now for plants in and process and uranium graphite licensed properties scheduled production rights and developing discovery Texas prospective two development retain we Mexico. a in about with about vanadium Nevada price a and processing leverage of in now we'll in battery-ready properties, to Texas, for acres the are of rising and talk little in XXX,XXX mineral with XXXX. Alabama, in We're We two New in later. on the highly

we But plants to and speak to Slide before results, please X. turn

our families, the and which of operate. their the employees, first safety is Our priority community in we

can of together. and local families the few our safely in and CDC integrated teams, authorities, with here ensure from We sure to state Listed make put we are were to their well worked employees we place as the work have measures guidelines safe. our a as

site in office listed sites in to our Colorado and those Our specific Texas requirements have here. addition in

as process delay. well. On our Slide product is without continues or we ensuring and Graphite interruption development speak safe business to X,

the continue our to this fourth test plant for Dorfner Germany, results in design to turn operation pilot are year. helping Our us partners out quarter in Anzaplan, that of

Our to lines finance an our continues to without we one credit our business our be well equity agreement issued Park as delay with into Lincoln APTM approved to and in month, an an plan similar we place, markets for by as our of to line enter work last use along to advantage. last Capital can these with can shares stockholders capital

the to was request In as able ICSID reparations argue and turned of the can jurisdiction case. there plus to in Turkey a for scheduled down we The PPP September our Texas is to hearing requested to Memorial XXXX. Turkey's of a win and proceed that side. a addition, from well, of for was loan fees dollars subsidiary our million in the argue We've of approximately expenses secure in our Republic for Republic our also defray the $XX.X $XXX,XXX rule tribunal employees merits

I'd it turn that Jeff? over Vigil, to to Jeff CFO. like With our

Jeff Vigil

capitalization yesterday X.X Thank everyone. our at good approximately outstanding. you, about market leaves It structure. at look X, let's $X.XX The Slide million. Chris, with shares On price closing share million and our $X.X morning was capital

During challenging particularly the made largely a for companies. small pandemic, performance the our for the of by cap impacted stock influenced coronavirus has market, first which XXXX, but it entire was environment quarter the

period, South reductions were quarter certain one, operations. to points. industrial markets average XX,XXX almost we conditions maintain and we WWR face the March Texas to XX, sessions share during that's and graphite same our the XXXX moving in at price see in tumultuous XXXX, forward keep decreased adequate workforce to nearly able liquidity XX the capital to business our economic $X.XX. avoid trading Over Jones XX, Dow February $X.XX XX% from the I from dropped

used for was The increase in the to quarter. XXXX. the related turning X, $X.X in for process. Turkey Slide This period during cost was compared in Net million summary legal used the to and due for the $X.X cash financial consulting operating same to quarter activities billion XXXX. cash our Now the to first primarily the quarter arbitration of current

property General quarter increase by ended primarily XX, primarily higher period corresponding the approximately XXXX. in period consulting, work than The the the $XXX,XXX to costs. expenses and the compared due increase was due For March to administrative were Coosa payroll to with XXXX, as XXXX. expenses Graphite mineral increased insurance corresponding The higher approximately $XXX,XXX was in related Project. and

as $X.X loss loss or balances were approximately net $XXX,XXX our for net arbitration share result million, the On legal with million. period months expenses the the $X.X and to loss in consolidated a had deficit the to $XXX,XXX net per cash for XXXX, of capital the consolidated increase or related process. XX, partially XXXX share, was compared consulting due consolidate This in $X.X per the same million, was in the $X.XX of Our of March Turkey the increase three company's XX, working XXXX. ended company March $X.XX and

enter We Meeting, financing our capital proposal plan. be the impact carefully approving Annual for the into we our place, to able we maintain company held coming current pandemic long-term. actions Once which are will on this to for necessary allocation to agreement funding and at Due our with in the Shareholders we support to new grateful months the to Lincoln new markets, in should a levels our is review April take shareholders resource and agreement XXth. Park the the sustain priorities to negatively surge business Capital

you, And Chris. with that, it I'll turn to back

Chris Jones

our listed we've and our Project, our Graphite includes as Thanks, projects, Coosa Jeff. On discovery. uranium This portfolios vanadium lithium our X, assets it today. our asset stands Slide

as United east-central Western leading Slide Coosa Project position Alabama. graphite in the in Graphite in X, our to will Westwater Turning located the Coosa County battery-grade supplier States,

We are of minerals include manufacturers. growing leading geographically situated automobile advantage markets, take which the ideally several rapidly and energy end the to of battery

project. we've will the planning, to underpin catalysts the and fundamentals The on milestones XXX% controlled provides slides, environmental with in standards the realizing U.S. next contracts, China, cash strengthening quicker may than I United those operational production securing the efficiency efforts Having superior opportunities I will by practice a flow not how improved dependent to also project develop equivalent currently revenue which to anticipated. to our States. us and and import current supply speak several allowed met to will environmental be graphite the performance. discuss for which and graphite global compromising originally not have graphite our of domestic quality while in accelerate the product is

that battery Coosa over and to have to micronized XX, on Turning several plan Graphite the graphite to slide. facility developed That are in this the past laboratory we products the graphite scale construct demonstrated produce been Processing Purified three Slide advanced years. ULTRA ton of graphite, spherical We last PMG coated for or or or year DEXDG, pounds ULTRA sample and product announced purified of that we X,XXX testing. were one PMG, bulk ultra-CSPG. a delaminated graphite, our provide metric requested expanded further to ULTRA processes

So milestone? important at typically dependent why is each is qualification manufacturers an a of test approach, Product such this upon staged battery the success testing last. the

that industry. sample we've grams has fact as battery meet of of manufacturers passed advanced ask quality kilogram successful, a stage few tests this reached in and these of the The requirements a developed we've a Our the that then then of high initial the are to demonstrates bulk rounds for size, testing worldwide the consisting material. products the the product

we've flow the XX, that manufacturing illustrates On a we Slide process provided are graphite chart battery undertaking.

in to first the XX% feedstock step to jet transitioning carbon secured in graphite from have is initial and pure for This with is mined and pure concentrate air XX% We XX.XX% and XXXX. pilot material concentrate there – to production processing sorting shaping the to and pure sizing, the plan purify mills performed classifiers. on graphite

we positive with economics. $XXX internal pretax future Graphite anticipate upside of our can updated don't $XX.X contingency These for a the these for return capital. Project. vanadium rate We're million Coosa of the by economics exploration, cash potential first the allowance Slide of enhance flow provided million which account CapEx projecting from includes year for working and We a XX%. XXXX and to Turning figures an NPV XX, XXXX, XX% which a of in of

We are considering level financing. project for and equity, joint structures venture debt

Basin a currently XX,XXX Nevada mineral across lithium we brine our XX,XXX in XX, perspective with We access. Slide control you two good projects Columbus Rica than The Sal groundwater to available Utah in established ample acres project. We for approximately which acres highways encompassing Turning basins. and water more this Columbus rights project XXXX. now the covers see Basin respectively, rights and and map showing own

shallow have made in power is recently sample access, to development For up These more water million per ground road public. to good rights the of X,XXX American to the per already arid of granted of West. of parts in both were Rica The aquifers and the water XXX project, we water for lithium in the with have acre than Utah acres at important right Sal results been essential use We are Utah. from use feet projects. resources year brine State very of rights XX,XXX

United purchase domestic power emissions electric the represents which driven produced the been despite has we're uranium for comeback heavily new to by several the uranium are free report, initiatives bipartisan Working electrical policy a United all growth past of reduction. for of fund producers from stockpile. relies States environment Fuel at federal for support included power report the for in here see the a uranium challenging This been not uniquely XX% the in than what's issue solution electric in seen carbon national starting biggest Slide with uranium Nuclear world, several the carbon of a catalyst Nuclear XX, the the as nuclear a represents States. result prices. the the power of shift is in fundamental consumed to Group creation and more nuclear the only decades, recent in level years, in baseload On on over global a several baseload Perhaps

XX% still uranium all produce Uranium nuclear than more Westwater. for there be they in focus and now to They're power. right years reactors XX a is need are to strategic expected

over going or a Korea in reactors. $XX come In concentrate up to grow to We to Russia online. as today. close side addition, from India, XXX think $XX pound China, these going for and XXXX are have building pound new is market are uranium demand a reactors prices the reactors Spot ordered

of analysis these initial levels early commonly distribution widespread portion have with values to an baseload of a widespread Since factors providing shape of of increased reflects the to demand anomalous in determined vanadium announced graphite year, the the according systems, discovery Project. mineralization opportunity concentrations use expected high demand that grade associated we been mineralization. as independent increase XX, a electrical for shown Slide significant for potential The vanadium uranium current the steel through Coosa landscape central vanadium On highly vanadium. strong discovery, the for which market a in throughout the well markets is an last the With prices, energy for rock, of contained in Westwater. storage as have

Turning company capital diligent of stewardship. to restructured led Slide XX, past a and the management as company Westwater tenured our of team leaders maintained highly the several a highly with over repositioning recapitalized disciplined diversified track we've energy records We company. and by years, is materials

history developing demonstrated to concept which into a And lithium has base low-cost helped graphite, include singular all acquisition properties asset assets, has of production production. vanadium. team and diverse, portfolio the of merger way reposition a a from Westwater's program and mineral uranium proactive Our

presented think green would based Westwater consider an Slide in I energy and opportunity? to what materials, for today somebody we compelling developing plans ensure XX, Moving mechanisms pricing will improve we financial our Westwater why on to in greater anticipate is what which from as our expect business demand. and put benefit to today. strong we market we drivers, investment We can opportunity. our fund lead a place fundamental We investment

our XX, Slide XXXX. that graphite already from in contract this in third-party is on a will for in Westwater place. Please Finally, remember concentrated plant processing purchase manufacturing

cars they annual We batteries have and grow use compound of a buses potential. growth and a upside strong with graphite. is containing portfolio at Adoption XX% asset rate to electric forecasted

financial and are management. experience management energy with team We in development a proven materials

remainder should am you we questions. and Please developments XXXX to your to Graphite thank updates Coosa of with I go look throughout for Project any on take our us. investors include Milestones with the for time those that throughout further look I happy spending for year. the And achievements. as want

Operator

Thank you.

first We Debra begin Research. go of Our Fiakas Crystal [Operator question Instructions] question-and-answer session. Please comes will now Equity from ahead. the

Debra Fiakas

I period certain for commitment a Is for time – you. from it of to a people if elaborate that for Good a grant morning of perhaps thank than I converted bit and on the is loan? stimulus a first wondered certain rather that just XPs number could a question be and the program. a you the my little you Jeff. for ordered program, $XXX,XXX received into

Jeff Vigil

Texas. be Good the And confident get very we we're level Debra, able very And the specifically calculations and when able of UR-Energy if that. and very without question. forgiveness. loan – that. working all at in into without permitting subsidiary. To good forgiveness certainly morning, And in And have it's confident we about proceeds, we convert Texas at a the that reclamation to subsidiary employees that difficult Texas. our very close and very time our designed Inc not we'll activities to question that's that's looked a loan our be we to a to South hard for we're took we in very the keep did the was specific South place for the grant, have And to that – employees would answer it doing loan your employment the out had

And any proceeds payment that it – like note was a that, in point Centennial, so quarter thing – us And not did very include the out us. of group were quite one Colorado. these challenging is this it of this and for to I've discussion, my one important thing any corporate is of mentioned as our – was the to portion to the I'd in

our want to that that So towards I Texas. I mention just specifically workforce to say was in – I very – directed South do maintaining it and want

Debra Fiakas

period company, everyone having such that, you'll that what very if that for enough get the the enough a you, if of is that you you Is and grant. qualifying long count I converted number the fully it I of, up could? work say not for having long they wondered I the follow for close new for wanted to would ask forgiveness in be on into would months. to that be And had changed And matter it people then entire could a also a loan a or few employed to do Okay. period? if enough employed employee last the for

Jeff Vigil

To your and question, folks Centennial located have No, one in we South Texas in XX sorry, have it has and not. in we answer headcount. seven Nevada, a

fortunately that And we been – we've so, – we've able maintain to headcount.

employees. XX% the XX-day based in benefits issues payroll any any I the being months that. West to towards we period these – is the Texas loan of accomplish to effectively of the X.X of for directed after see proceeds, did And any, in see the receipt able – calculation don't able and was during costs during benefits I costs. have to So being ensure not and on that proceeds the payroll problem South

Debra Fiakas

given us easily a capacity a just thank that from – learn I that's quite perhaps bit so But doing? – Excellent, Germany I designing And just Germany. more on? could then question, there more little give working little you just and that States, that working in color appreciate it perhaps the here some is you. on about matter wanted ask of been Germany computing the mechanical forth. what more in a it to work accomplished of they've done I it it Is Maybe What there've as in restrictions also, mechanical also I is to could activity, chemistries? what in processes? another have Is about hoping a is they're bit is which bit learn group and our but – United the engineering been was – tell I if I little that us home. being that assume been I it's know

Chris Jones

continue happy doing The you I'm able to all, to you. safe our illnesses lab. any And their plant nobody the protecting Hamburg. basically the that good work were designing method town they doing, near to Debra, as located stop that has is work done to expect, to pilot level. our level kilogram the lab health. in and take they're lab itself whatsoever any and gear with work level or we're practicing as is of happy little production report And a morning they're in first from of in Yes, might self is on interruption way. And the gram protective at without level onto The Bavaria as well reported upgrading distancing

good do. interruption as And fully lab might been what The far on processes have not into and and been and in expect, you time. solid our processes presentation them partially, thus without translate to production as but asking we and reported level that's we've results

now our work So fourth is the we're running pointed in we're right this pleased on All quarter year the they're what we're doing of and doing. super facility time. with pilot at

Debra Fiakas

forth and stockpile not portfolio not I you sneak how level about changes so and in uranium to if of entirely also in whole more the United your just regard lot or impact on And your of and question – various values on and of States. an value committees portfolio, just uranium. impacted There's high your uranium to regards could pricing, I color as whether Excellent. special the been the company's how some wondered one could produce, not of topic – this energy produce concept, to only you does is in, a on different that [indiscernible] us And in pricing the also port this give just pricing? if by chatter here stockpiles And the only as assets. of how’s uranium decisions uranium, materials but it portion and on asset your

Chris Jones

Great question.

The to of bit. the to little question pricing bend are return pricing. of return terms In current issues around the a north production – me let still that just work,

doubling almost in of of shy on XXXX-XX virtually $XX timeframe, production all-in since still an a it's at all States basis. a pound, price the United So which is costs sustaining

Texas might better to pound all about you production So or that Texas restart as need a consider to tend $XX breakeven price. and operations a

underground to need the north operations tend of And something XX.

actually expressed call of the So there's group in the the of United working for recommendations about has still and number to made it do a said That in the supply return work, price we chain to pricing a before there's lot work a now States. incentive concern production.

B that's And so and is up uranium, the of fiscal to it $X.X is That billion, to for for XX proposal. budget stockpile year this in included a year that recommended secure that they fuel a split the million expenditure XXXX, president's strategic with the nation's of budget end, billion proposal monies is secured. dollar into in $XXX years supply

in whole Now, that And is already be now expect a but uranium as XXXX, It but the and fiscal a the between year October. there could proposal has And and that. it's written. industry course, approved about Westwater already hard happen, think October, has begins of to will budget it pretty pleased I submitted. Resources

Debra Fiakas

you. Thank

Operator

This turn the session. Instructions] would remarks. conference Mr. closing concludes [Operator Jones back I any for over the question-and-answer to to like

Chris Jones

Arielle, Have Thanks to thanks day taking all great a time and day. listening for call. out a to your our again, and of safe you day. Have

Operator

conference concludes call. This today's

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

Westwater Resources (WWR) 14 May 202020 Q1 Earnings call transcript