WWR - Earnings call transcript Q2 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.

Second Quarter 2020 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 Instructions]. [Operator now I President the conference and to over turn would like to CEO. Christopher Jones, Please ahead, sir. go

Chris Jones

presentation Thanks, are Chief McCoig, of Executive meeting have and statement. with and QX we this Gaylene, Dain on our Chris our Officer to Operations. the Chief here X Resources. Officer; line is the President Westwater of Vigil, cautionary On Again, results I'm Jones, me and welcome Jeff Vice our for our Page the Financial

I’d to So read at their like them to encourage listeners leisure.

some We will Page be discussing materials developer. information talking the energy On green about as through we to presentation a today. and go forward-looking is Westwater X, some

scheduled encouraged vanadium XXXX. now uranium in on in for We prospective graphite a Nevada and are discovery our rising developing exploring Utah with battery-ready leverage to about production is presentation with And activities for off to that a business lithium illness, our a schedule. plant and price of be that illness which processing acres employees of properties. those and on Anzaplan, battery without health these We’ve the On eliminated and employees designed retain we'll maintain consultant to that our Page product COVID-XX of of and permitted around development directive continues where for remote Texas talking for work. prime to in business with travel. ensuring reclamation X, On the Alabama, arrangements We're later there. And plants are we and State communities highly compliance. are And Page today. in instituted two Texas is we that and of protocols working here, for Texas our our We've employees Dorfner rights working will South we We've XXXX. New CDC graphite or using unnecessary our almost to operations our our in to pilot employees due scheduled safety the based to the together advanced X, properties our XXX,XXX employees provide to and penalty. protocols work of instituted Mexico. ensure results safety ensure time licensed and -- safety continue our and development in two continuing are partners ensured them in to mineral take health in the are guidelines technical shape QX

prevailed to taking compensation remembering Westwater has Jeff. of million tribunal key really request by Westwater down PPP And Turkey. we to And continue with its that, loan for decision in Jeff? is in a tactic. fees And a to to using I'd to of Westwater the down delaying activities We work with agreement operations agreement for secure And a subsidiary Lincoln able with were our ensure offering a financial adequate its stock Texas. controlled Fitzgerald. and business purchase URI Cantor key Capital, support liquidity sales our equity bifurcate Federal Park in And the a turn licenses Turkey’s to case from to turned plus of case. turn was a -- Republic Turkey. that it $XX.X The for requesting over remembering the like ICSID in

Jeff Vigil

you, morning, Thank Good everyone. Chris.

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

stands back stability to In March CARES at end small X.X for After WWR's loan markets, the and at the been Resources. approximately added Industrial XXXX, to markets. subsidiary quarter. share was had Act we our the for the received million. employees evaluating $X.XX This applied including quarter March by and and in market the due price of outstanding, evidenced $XX.X furloughed of nearly that the URI second and the had have was amount At while URI the the $XXX,XXX closing million to who the PPP Westwater companies, enactment X. second to economic Our in was share have at PPP appears determining increased the $X.XX, allowed to conditions to our Certainly positive particular, more Jones share recovery Program of on capital been the the of some in $X.XX. Dow start time. end eligible in during capitalization beneficial quarter as May X,XXX many existed shares a outlook welcomed loan yesterday work our appears of the Payroll put price to that capital uncertain a Average We of points price at to of a and was the Protection Inc. qualified the

Over file of and URI the we'll the We benefits application and and during expenses. of for loan forgiveness a following the course eight have a loan prepare used of the the met the third the for criteria quarter. weeks, labor qualified XXX% XXX% proceeds forgiveness we believe

at operations. tumultuous activities resume capital business we in faced our of Given forgiveness markets the application to South will as we approved conditions forward and maintain adequate economic reclamation uncertain as graphite to QX debt. to expect, the businesses Despite small we we moving gain the Texas a administration, be liquidity to in keep forgiveness treat our able were QX, by our from extinguishment and

X. used in second to this XX, primarily The the compared current June used a reduction quarter same Moving for activities We $X.X ended trade was $X.X the Slide financial operating and quarter accrued with summary in liabilities. in to a million due the was of XXXX. of cash during XXXX, payables XXXX. quarter million increase cash provide the for Net period for

mineral property lease uranium decreased quarter timing one the XXXX. of due expenses a with primarily ended to $XXX,XXX, approximately period XX, for properties was mineral Mexico. XXXX the compared decrease June This For as of by New payment in corresponding the in our

while second of in year. XXXX the months XXXX, June the payments, to XX, leaseholder June in had ended payments remaining. period For At the comparable monthly administrative corresponding expenses five monthly three for lease XXXX, and in payment paid XX, the XXXX. agreed was in to the quarter current the we General rental were year, one the

net consolidated from due with ended share XX, the June million for a Our $X.XX XXXX. The $X.X X share XXXX, property the balances result million net income of $X.X quarter of had working prior were net a $X.X loss was which consolidated decrease July expenses, million. arbitration per company's June same the $X.X period has a consolidated and The XXXX. at mineral million. as of capital by period $X.XX $XXX,XXX [indiscernible] of At loss to The in our stands sale as approximately in balance for decrease expenses XX, been cash XXXX or $X compared was the a months the decrease cash or the respective per loss third XX in of the at in balance million. interest offset company deficit in

plant Cantor fourth operation business and with maintain along financing levels We are grateful enter held the funding pilot Approval for financing to the our re-met our our Park Annual -- plan, us Capital late XX. graphite a with on allowed April current to Lincoln approving processing Shareholders Park shareholders Lincoln of at to proposal other into facility Meeting, the financing support Fitzgerald facility in with has for quarter. the to new which including we our

turn negatively capital review term. back the once take will we to months it pandemic our surge priorities coming should actions in I'll and the resource However impact markets for with again, that, necessary and our And long sustain the Chris. company allocation carefully you to the

Chris Jones

expected Project is electric batteries the Graphite transportation And driven from is U.S., next recent cell On in laptop growth this sustainable XX% as right solid Graphite critical types. being you've domestic Westwater’s still well. States. targeted Think represents the an this Project power coming B processes United is batteries. phone grow have three a Thanks, really enhancement been in X% need of graphite or the a of right Alabama. in growth about topic growing on today by of plant consumer are We're cells, Global -- is. has our car at or you Jeff. all States of in about XX at right We slide really year. Graphite end and the XX% had emission [a is be Coosa only Coosa are you graphite the all Slide peak in batteries, making place XX% transportation rate. economics. everyone discovery alternatives. at of electric goes the of the for going source Slide Westwater about ion graphite markets. this graphite, work of like shaving at products as a [Tesla we underway one-time using is we jewel we and batteries batteries, order gram with an environmentally the to lithium near-term that's On all only graphite And electronics Slide down are security are to and unit The Pilot Alkaline talk component are now pounds largest as That the products and United here may Alkaline acid course, lead Coosa design the government And the three big, level non-rechargeable rate also really in graphite. our Westwater’s see batteries road their battery a be the X. there's On business. cells of sector them, graphite role the qualification of demand The billion grid what it's of we'll about produced might pounds vanadium for low grow prosperity. project's market. storage XXX over to serve the accelerating these well graphite world. scale the includes the this great right pilot U.S. to and a XX. natural be for driven in will a not gas and years. battery batteries, this Slide making crown and nation's batteries. where at vehicle batteries to now, growth X, point, and emissions the energy we models. defined But is rechargeable products the see underway for several already battery market at batteries, to Alkaline management year] at market as here clean IC-XXX] Customer power your demand point into a to the products however, the vehicles growth In course battery desk business, make that these greenhouse thinking morning our to can And energy growth presently battery these those XX. accounts by using peak And the expected power as of now. be universe. of

Micronized target a that will our larger lab be again, this and lithium the The now, Graphite, making making again and something acid. makes of speak batteries. is and all throughout at Chinese again, ULTRA-PMG, this plan. XX% is production end work. development and The able it is battery designed pilot once and Slide lithium-ion This ULTRA-DEXDG lithium-ion, inside in for markets we Graphite. Expanded once to into we Purified right and are We Slide our which all it all take acid This And design, and some Graphite. Spherical XX% intend lead we environmental the a at of Once have On will minimize conductivity be that been Purified of XX. of right enhancer types Our not for ULTRA-CSPG, material as some the is is It’s the this regulations XX. samples compliant is are of that footprint other about power cells is public making manufacturers We lithium-ion processes, lead graphite again. largest it by The plant domain we and And Coated proprietary product now we project we these the market -- of this the Delaminated be alkaline manufacturing year. the of flowchart concentrate. clarify battery. make three using U.S. products year. to may claim. how with level. that make the that being constituents mineral to the and is

our complete material XX. tons be development. qualities and expected expect XX.X work also at counterintuitive year various middle make informs the for end Full in timelines longer facility on relationship expected is this start fashion, have us of million We than reason We $X.X to and in mining little which plant we're plant includes further mining presently that the in enabling long-term million sizes to CapEx period during and is customer mid own construct for timelines. the for manufacturing and contract. a can permitting On graphite 'XX to The study, of in facility of estimated pilot and million, we going It manufacturing build is feasibility and already XXXX, 'XX is for $XX.X feedstock our Project bit Slide In million start-up XXXX. respectively. production this $XX.X XXXX. at the $XX.X XXXX. which 'XX to the to a can be year purchase in

vanadium of there's on And property can is the discounted economics, year, positive is downside cash For XXXX development million. on internal return our $XXX rate once X% whatsoever. again, our no at is these flow that NPV full first XX%. estimated and enhance pre-tax The

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

Page to now XX. Turning

We XX,XXX property. little Phase South two acres. which and been Nevada, has is of the about Tonopah, state West, line which between Basin we It minutes rights Wendover brine Utah, Columbus acres Sal complete about is Nevada drilling on of XX water X is have and has projects, XX,XXX at Nevada. own that Rica, and a around the prospect.

power ranging uranium. supply We action, Group for around we has from to from That these per $XXX to Fuel to country. national recommended little On million playing Working U.S. budget States portfolio. do let's XXX United the report But shallow the the is build Nuclear bit water results talk by XX, nuclear has million XX% proposal and remembering just of field uranium to request, upon On the aquifers. XX, a Page course is States, of nuclear that And a lithium again, up United And sample our per own and the year for XX-years properties. stockpile we the have facilities about it Senate. parts electrical the the President's rights of secure that. subject House level dependent a budget for that acts its the about

interesting deposit about so XX, energy enhance the the On list leaders site little something we vanadium nuclear are world. that discovered that in seen a of that development. the minerals little graphite we an grades confirmed vanadium we that what occurring we we in have sent lab represent metallurgy producer you widespread X.XX%. power in can tenure facility to Slide were bit and can that vanadium Alabama. the to profitable, need with talk going on These quality samples material from our again some in about us, a economics. X,XXX widespread to is or commodity. economic enhancement could A have of largest and to of we're We We the the in enter and start a we'll ago, now. and know the Slide processing our presence and before. do vanadium what steel apparently look On once year mining, graphite we with evaluation see XX, produce is, And vanadium and markets exploration of it how to how a concentrate. Coosa's so to If is as This to direction and

is restructured U.S. law company he licensing with with us Jay of the lithium from exception XX, Slide comes and electric This United more to to our more the with is of can our of addition us. marketing of years, cycle, Jeff us past the Lawrence, the experience you of materials is our vehicle staff over several On to company. like and has State. to Graphite in to materials that of our leaders And graduate of a front base business. graphite matters. July came valuable of XX-years and in fuel Asia. stewardship. development securities. addition Tech than -- Er, diversified minerals aspects mining of spaces. office is on Georgia he Xst. already XX-years ion running of the technical a and the Mines, to Jay With and so and and this and VP years marketing staff in on Wago And energy marketing us relocated States John more course, know, to that sales markets manufacturing XX course, experience business. Jay and XXXX, the School Energy he who and of requires our than actively capital BSBA the a and across Vigil the heading phone, output And knowledge is in nuclear repositioning than we Denver that begin center, process with brings and he experience the experience Westwater up also in in Cevat as with has all Colorado We've our exploration diligent and discipline recapitalized and the Dain

We to have experienced businesses demonstrated history production. management team place from a concept developing of with in an

producers markets mineralization to vanadium uranium United Texas. in has the recommendations in Government and We discovery On the upside properties have base materials, M&A and Coosa of of economics and Alabama, And Coosa developers. at new leverage rising two project licensed a provide U.S. bases selling energy in uranium our materials. steel non-core purchases uranium U.S. potential capital enhance on to proactive price of cost sector provide in Slide entry the and largest executed Pending the facilities Slide the States to processing XX. for with a all resource project. uranium from Graphite in market fundamental battery Coosa green with drivers the expand one leverage strong, into effectively redeploy by program portfolio We our XX. uranium to benefit

strong a potential. asset have upside portfolio We with

the and this and production. up and experience proven And catalysts development management XXXX, you questions. management. for with we lines feasibility through the a for And development into your the today financial attention develop with business in in of remainder minerals on graphite plant We XXXX and energy thank should you that, the team expect as open pilot onto and study like to I'd are

Operator

Thank you. [Operator Instructions].

with line is Debra, Equity question from your Debra first open. Research. Our is Fiakas Crystal

Debra Fiakas

much like I to It the up taking initially in couple, just one regard of how to in a a of there Thank into could and be give and you. I whether usage us coronavirus or insight guidance actually question. that do to might I cash just repeated for question a any of bit you understandable. expect in if you direct you that this my And seemed the coming during then bit quarter you wanted related decrease? or not little spending perhaps clicked usage on in quarters? subsequent the Vigil to if could cash quarters, give wondered increase Jeff little to usage a Thank quarter, the it bit us have quarter. maybe the not pandemic there's little cash

Jeff Vigil

reason for mentioned the a -- of the have primary liabilities the That’s I and of I quarter, could that not second by And the -- as Deborah. we cash, the spending pandemic. question, presentation the say to by impacted my from of standpoint very that since was accounts a were up trade uses most during year. really due And built pay-down good COVID-XX payable the higher that is, in accrued

there your to product But and will and expense G&A that the see spending, as at quarter mineral general But costs spending? year-over-year in forward, related levels, expect question ramp basis, far our Otherwise, them spending to as that with some it it the consistent pretty kept you a just by coronavirus the look we same as direct did we to development well and much discussed. for administrative mineral as our spending, looking completed. we this level. quarterly answer fairly did other quite We the the up it be about we impact as property again, when property quarters, our indicated as the and was No at not. So, reduction.

Debra Fiakas

something to in they comparing have mentioned us the might testing of more could how then, bit And some some the Okay, was think no use who CSPG kind regard materials thank to mentioned been to those graphite in maybe commission Did in I touch other it give yourselves? announcement, opening you materials. perhaps went a a get granularity tests. test like that bit give about them you. and wondered And if on could And your on as remarks, graphite you the CPSG some us on [pun] move Chris, a wanted detail and CPSG that the to intended -- test? I’d comparison, you on And then little previously on there's as I I you if more product other done of that graphite conducted selecting little on the hints to just product. to

Chris Jones

way if take our You sheets data I'll bet competition selected is we and them available. in reverse it's of okay, The had we order. frankly

Some report testing? public available, all for results of the and pay results, domain, influence products. and testing out for Polaris represent do with that's the With Seattle. located house we did our are our of testing our you bills, most comparators. regime now in And not will, who of we regard and do house, to proprietary, if year of in working Labs on they the and select how lab, been publicly the are they They're We've some our course. we

of a we itself, with us testing class party CSPG gives kinds to two it performance. So, regard of third you testing And the will. our first do if to evaluate

you initial you a First decline do and acceptance it send coded, electrically material and get and several about battery And long that the what you four that over of do actually of charge evaluate uses to way battery same charge receptive. run. the hundred like and And in is the electrically ensure thing cycles to it. over of a performance the be upwards it lab all, the lithium-ion months, then act its active discharge curves it can can course then so that to

to in longer product initial results, now releases the question this that you'll of properties are to your answer what be electrical understand batteries. three so they that you part Debra? we what and going how later, apply adequately is Does results, saw lithium-ion and see can term So, our particular

Debra Fiakas

does. very test. was involved much that all kind Thank was Thank it just you. you in Yes, outlining what of for what --

those in also is just process the the elements description for graphite able of again, your that important elements competition? wonder it And Is protect other your processes, of graphite are patented? of from of there us your that's could know to your proprietary. then your a materials proprietary, production but for making mentioned You for some various processing how if is business or standard and to the process for having you potential remind materials, elements the be or various I

Chris Jones

So way. let this the question me answer

some clearly the than to neighbourhood see process and that it there's or is For patent way. our we to there we in in that developed, better something what any that protect to out company some value

want be do evaluating in not want development. the once talk continuously whether would now. of process think IP, we And to that's at of would that we point to that the in overall process for or about something we're we some right So, appropriate what register I

Debra Fiakas

able my that on pilot you. on that regard And and Very that, working it continue several last Okay. been you've plant, last the question to good. working I over in is Thank appreciate the to months. you're

it. time? longest you putting first to that on I just you what ready you. -- the needs are steps describe and to just begin have working start and to ready what to for I what up there's wondered While the to they the running? steps on what and that could lead up, pilot it And first? business, plant to done have what it's that I'm working the would plant? wondered, much example, the do so are been maybe I'm in be are those are What For excellent pilot for start things longest -- be get disruption

Chris Jones

have these are step the using on that then unique different processes design, working the schedule plant now. for we the And and different The to we developing something nature is longest products single right pilot between and and then, locations. becomes have the been for multiple in

potentially plant one makes purify instance. SPG another location, So, at for the locations pilot of at the combination and make location would some PMG at

vendors manage So, to And these over month several have coherent one and a we're runs or process year. basically working it we different a plant. with the pilot all end can for the course then coordinate and running so to of so this activities of that half easy this towards

Debra Fiakas

If by different a you're different done are just pilot suggesting ask Are plant? saying processing I you about could working would have that vendors. work or with follow-up, the elements talking you you the construction you're and of entities just design

Chris Jones

design will at the of particular not individual vendors, But, The processes vendors, aspect, good of and if construction [indiscernible]. the with this is plant. pilot coordination multiple basically processes, and necessarily really you we're high-grading say are from different people that

work is in done our Anzaplan with this Dorfner large team by Hamburg, by working and being So, brilliantly Germany.

Debra Fiakas

completed? would to Okay. say had corner, you and you the been -- percentage to what a the work And you were if give, a pushed asked of if that's into is say design percentage,

Chris Jones

think I get the appreciate into Debra. corner, nonetheless. But, question I don't that I pushed

Operator

question is next open. line Shields. from Brous Howard is Howard Wellington your The with

Howard Brous

your you. Thank I balance best best you I've want you've sheet is of years. years. had this Chris, to the congratulate the team. been and company had in you've years for and follower in quarter This a

congratulations. just tons I have. all That's of So,

Chris Jones

those really is then remotely to the with and team. challenges the a that, this along and folks the the first on part Well, been but remotely of hard working work the certainly little that year, financial And not I And thank pass nuts, quarter, agree a the this you due faced to has for great of part being I'll team, of we it's represent. markets been Howard.

So, thanks.

Operator

no There be to instructions]. questions. [Operator appear further

to this any the closing remarks. for concludes session. back So, conference turn Jones Christopher to like question-and-answer I'd today's over

Chris Jones

produce the this again Thanks, proud all call for much. really that safe, of quarter, you team. healthy thanks Q&A. really we Thank proud we all the and Gaylene. you have you of the wish day. happy the and going a And listening to been results very to of We're participating able We're in and

Operator

This concludes call. today's conference

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

Westwater Resources (WWR) 8 Aug 202020 Q2 Earnings call transcript