WWR - Earnings call transcript Q3 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.

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

Chris Jones

McCoig, Results to and And CEO. Jeff here our Resources morning. Vigil, Anastasia, at me Chris Welcome X. Centennial Office Please Financial by Thanks, have phone QX, Page is Dain President good of turn we us from with XXXX Operations. of Page Main Call. in and with Finance our Officer; and cautionary President and On Vice Chief X, I'm Jones, Westwater to Vice Alabama, is statements. President

and operations Operations product take schedule. engineering in commissioning New partner we our our Germany, plant our the presently business of maintain or be referring employees, due safety of our on together to ensure our employees. will Illinois. at using and take we cautionary our ensuring this and for To information communities plant, and to our and statements will of permitted with safety continuing to remote time penalty. ensure working invite in have them Dorfner Germany Anzaplan bulletin continue work, health battery the around South are you work we and your and leisure. safety quarter. employees where We off for to a in advanced our protocols based said, without for message have they eliminated of some successful. illness, read instituted development illness ensured and our encouraged partners those that That X, Texas employees these place York, to instituted guidelines. our travel, the activities is We've to Page employees, the unnecessary forward-looking to on safety X, working Paid are reclamation we graphite protocols arrangements State pilot the CDC been quick designed

liquidity financial operations to ensure business activities. to work to and key support continue We our

to a for base a balance through million Westwater $XX enough Republic XXXX. compensation finance our of case October XX, in in the from have We Turkey. business of its prevailed cash over key decision as of has

is hearing over $XX.X plus we CFO. Jeff that, Jeff? Vigil, I'd million, turn With fees. 'XX, XX, to request September and like scheduled to Our for it our

Jeff Vigil

First, capitalization Slide let's a take look at on our X.

closing XX million outstanding, our share and approximately approximately capitalization million. Our market stands yesterday was price was $X.XX $XX at shares

reaction Act was ups During added performance the end influenced the capital this downs Certainly, to of to the the enactment CARES months, country's capital the markets. pandemic. and past nine our markets, stability in of stock by COVID-XX to some March the largely the due at

at price share at Our the the ended $X.XX. quarter $X.XX, and began third quarter

period. contract with this supply interest for emergency was exceptional a for on in production Carolina, then vanadium. the declaring October North Tesla critical $X.XX average executive U.S. President Lithium an the minerals, of dollar average. By this raised and this the ending graphite sessions propelled approximately trading price national followed for XX, to strong now business on $X.X a lithium Trading in taking by announcement exponentially. Piedmont with five in October. line first September advantage he XX, XX, of execute substantial events with materials Also, presentation stock shares battery period or this Elon series of sales. shortage next upward beginning fundamentally as shares, the Musk's at years, to that over is beyond. on October of events electric stock That Lincoln of the facility its included volume week and billion, for million trading where during However, Fitzgerald, position activity projected in the in and ATM company amounted Capital Cantor value a price million triggered more demand and totaled Day budgeted opportunity company movement day the exceptional the utilized for on Park cash, Battery vehicles These its volume plan The September XX issued equity per XX, by Westwater's That to and this and grows of XX from conference raise its order and on of stock than the trading project September during a million $XX X. an of XXX included XXXX

has Importantly, disclosure going financial the concern statements. because management of the removed improved from liquidity its

remove its we allocation Vancouver-based quarter, also the Intent resource on plans. uranium million budget the $X a into the business. properties strategic sell nearly uranium will Energy At X, sell allow execution $X obligation uranium to On asset public uranium company sheet, receive of Mexico New the Also, binding common annual being Exchange. importantly, balance company of from business approximately September enCore interest TSX in a Venture of the reallocate of Westwater's graphite a closing, During stock, business towards will of the entered Westwater and focus enCore management million Corp, listed and made million to retain and us our to to royalty to to retirement $X.X will and decision business sold. Letter

summary used XX, the including in ended financial and Turning product million to graphite for used September testing. compared we costs as for Slide same period Net activities XXXX, to the X, $X.X increased XXXX. to current operating provide third for primarily engineering million in was XXXX. pilot cash of was quarter The the development product due graphite increase $X.X during a quarter plant expenses, in cash quarter

XX, For from September XXXX. $X.X of additional reflective XXXX, continuing decision orient XXXX. increased the and approximately period of ended by company's strategic development the comparative to to administrative General business corresponding three to the product period The graphite from significant $XX,XXX operations expenses million compared in ended XX, is increase months resources $XXX,XXX plant. expenses were for September in quarter the

balance The against million related of the lowered of the in the The Turkey. general activities $X.X product to and development XXXX. operating pilot compared three primarily to the On agreement loss the period represents XXXX, operations Energy again, the prior Republic the primarily of in million Net of recorded continuing discontinued due as against continuing activities actions September to the with property item were a for XXXX, discontinued in businesses, graphite equipment September million. uranium orient lithium ended and for the due was XXXX, $X.X the discontinue with terms from arbitration And accordance was costs plant of from costs. primarily company month to operation costs XX, ended product a loss our period of result company's balances increased $X.X testing, these approximately charge XXXX, resources period a the planning Net period uranium in from to loss to the increase arbitration companies net sell from which lithium from operations Corp. were costs the non-recurring and for the additional undertaken enCore executive business which million reported year uranium was months and approximately company's capital the net this to and September due as business, from $X.X loss discontinued increase the cash was and plant graphite corporate three And this increase in $X.X million claim non-recurring to our XX. standpoint. operations in administrative business. $XXX,XXX, XX, was However, of for costs in business. Both operations in of third bonuses represents a largely reversal impairment working a The had million. $X.X investment decision quarter, prior and

capital support The balance XXXX, pursuing funded. to plant you, We of significantly budgeted company's commercial and financing expenditures back are non-discretionary current as set to project funding budgeted graphite October cash is primary program believe Chris. the I'll at capital for in of plant, stands company's that, remaining at fully $XX.X through occur second-half the mitigates development XX, the to risks Our the XXXX. And turn it the construction company XXXX, with the million. of product treasury initiatives our now balance

Chris Jones

every our property proprietary assets, a Page for new Cost patent. communities cost Safety performance we use efficient focus performance. assets, of that and conservative the of processes kept. safety and work, here shareholders' reminder that's our On day, the highest United purifying our management, X, graphite, reputation. We've at our values and process quick leading U.S. the on improving applied well the graphite States. And means we core X, a the owner each A other, effective where of of sustainable are level our of environment, developed safety in of the environmentally on promises first, we've and quartile integrity, Westwater. our Page first for the development

commercial design expects quarter, to and this scheduled graphite facilities. scale plant customer the battery pilot for our testing validate for Our operations produce grade of

we to high economics Turning Graphite as and a these Project has process X, previously our project manufacturer technology robust, Coosa vanadium improving Page U.S. battery spoke, simple cost proprietary sustainability. key grade and is a purity that with graphite, advantage, potentially three conversion attributes:

caps about you Consider storage non-rechargeable desk, here rate be XX, electric years. in growth XX environmentally and businesses. year include parked qualification and end we lithium flashlights, Page almost solar of lithium Energy this the five for major the executive at than CSPG on all Page domestic And graphite The an XX, with summarize let at States. a none supply places these which such growth tonnes On well-established all On right next that alkaline poised some described, see here timeframe. States is laptop the like product annual and near-term a this United lithium here component This the power use for in graphite metric with this component you direct our saying domestic alacrity. States. your Depot XX% an like speaking Slide produces now. year, for critical provide Westwater's the ion year previously market products the of aerospace, the you now China the cycle products to growth with XXX,XXX and purified is electronics process the responsible talk in graphite batteries. States in spherical expected And right battery vehicles tons solution the contract now. The we as the will tonne in more an enabling the and States' have have security like XXXX, XX% with to predominantly chain. On over Westwater's commissioning expect key tend be "critical in products to for our Coated This electric on wind is others products is It your now announced. in graphite like worldwide, simply the defined Coosa be Page one may may We graphite, advantages. next to vehicle years of to can vehicles. the couple the for segments power prosperity", and sustainable we'll years. medical go three using United X% tonnes right of a battery coin technology batteries, project detectors the sustainable and U.S. we've rate cells garage, that to over lead-acid security projected XX,XXX your than on this XX, develop the the like of bulk mined has from United On U.S. or battery-grade graphite those we cells or as provide only major and a process, batteries, in systems, smoke the XX source only that electric generating require markets will includes for government to graphite. vehicles, and CSPG Pilot underway slides. next more has consumer XXX,XXX Qualifications per used in the of metric of be graphite transportation, morning, compounded facilities. about U.S. And defense, to markets. all value those XX, working Westwater is slide of like is underway we This like for be XX that's supply. that specialty agencies presidential Home me graphite sample is emissions. as, is produced Lowe's. environmentally XX% to a cells, is those a a previously order domestic as your And graphite in ask years. three government United into we orders act nation's save grid, and ion phone graphite to work here. two COX graphite. graphite players or see And of batteries, driven based Resources is serve a qualification X power of plant in a using, really our rate Customer produced United

into power Think billion year B, a instance, graphite market Our revenues, ULTRA-PMG planned of cells a this the On vanadium micronized contribute an for discovery cell is is for goes products. if as the for could purified power $XX we gram alkaline with part enhancer. first the XXXX. lead-acid in talk batteries alkaline Page our graphite, units material and about XX, bit battery. exploration a Coosa at is of is that the conductivity each per little

batteries, into those material that and ion vehicles and a hardware batteries This enhancer. conductivity lithium hand anode material electric goes for is lead-acid, ion ULTRA-CSPG, ion in ULTRA-DEXDG tools is this in goes see lithium lithium delaminated batteries Our for batteries. which performance a and is graphite, expanded you the high as as the and mostly product, stores.

the slides remembering previous sector. market Our is electric from target automobile

per process save metric can tonnes show electric flow material CSPG Page of vehicles. our we electric This year, enough XXX,XXX per when sheet. used in On COX is XX, emissions vehicles Our for year. over XX,XXX

which graphite first This involves It supplier have purify The process the in material greater. concentrated is after and or patent a XX% with New in Office. talking This a step York. Germany is just done applied XX.XX% Patent by now and right steps to be we'll material through our a States that that several about for United is to is to being the moment. we piloted in

three is is for project DEXDG quite we're to It is Germany managed team. development, Our Germany in do well process already our by work. different CSPG piloted a and using locations being in PMG and that responsible is this and management underway, complex Illinois.

Let's purification talk for moment. a about

damaging Our a currently XX.XX%. prophetic used process has footprint in those This carbon at grade expensive manage purification of used. to and environmentally is methodology where than more sustainable hydrofluoric acid yields least China,

process roasting allows sample, of consists about for sample to leaching flexible of caustic remaining performance. of get process feedstock sample, basically It graphite Slide XX, that consistent investment the the three-step and roasted acid options. of rid contaminants. the and three project treatment of Our talk concentrate steps, thermal On we

the of process going forward from As we're used equity And as of PE or here, against we to or financing level, can the return, ventures. by for parent level firms take look the loans for guarantees happen looking or that collateral. project at in and be loan joint debt can an equity Direct on interested facility project the and some investors investments project. measure other

Slide We and plant so commissioning York, capital. is to On Germany, Illinois. We've finance retained are underway, those of evaluating our XX, options. considering these on firm various in none a project all New executed assist of experienced team in far. this sources We've pilot

about pilot our XXXX. production early next to products facilitate XXXX, for large We generating as as expected startup Alabama the beginning in Graphite XX, talk from expect sales. to economics. in plant is number purchased And Full in we we Project to batches graphite. On producing occur in battery-grade expect Coosa Slide week, at mining pre-qualification begin scale feedstock our

XXXX. along. return are refine XXXX. these as that Our at is this forward We'll is in further We'll in be $XXX project study here, these $XXX going expect midyear and to from numbers rate We'll remind our feasibility million, we XX%, pre-tax XXXX, that completed level CapEx we million. PEA is only our go estimates listeners internal NPV for and plant initial of and revenues commission

to graphical have plan startup of We have feedstock XX. XXXX, supply serve contract project a representation our the a Slide that we mine XXXX. in on Remember through

indications XX, years. is with and of information The that we give vanadium We property. support we metallurgic On business on for There have vanadium had in key propose midyear. be couple vanadium activities some those site, first-half drilling we'll of our also solid concentrations, vanadium Slide exploring the present. the year to discovered on that at for are operations financial We'll needed adequate to ore liquidity ago ensured explore that our that results a next and XXXX, announced we recover. for activities us

He concept J.D. from Purdue and than has University, Law. as Lawrence he of us graphite ISR XX U.S. Turkish of XXXX. experience XXXX of is engineering Er, School in the and Science production in XX I've molybdenum gold from in will Cevat to We founder and a to we Columbus the as been over BS mining in in to been years of for various during experience, been University, sands years us He something oil several with a for be able more Catholic licensing XX production. licensed engineering law uranium, with environments joined engineering. years XXXX, we XX, activities. us speak teams and our about to economics performance on occasions. phases business finish up and and team. experience And say. silver backed financial those sometime is and Slide and Bachelor nuclear one mining taking development talk like Dain we is leading our years, I've On development coal than projects more mechanical but in XXXX. across XX He different from to a this joined nuclear Jeff in John McCoig, and experienced fuel more Ankara, high professional and of others, SRK, joined Vigil in from manufacturing. business able cycle. and like of environmental of and and mining lead than I've with all in

of to experience joined repositioning company, graphite Slide recapitalized addition, products. this with the electric and materials and years energy battery-grade Our more company, XX, focus Westwater Asia. than vehicle matters. a lithium On ion We've manufacturers the laser sales in States Wago, in XXXX, marketing with an and markets Jay and XX on United and in newest restructured experience as

mineral team has experienced been non-core energy and Graphite Westwater have into grade and redeploy of On battery why upside business United Our base materials. production. a sale investment? energy the designated Slide development management critical resource capital a M&A proactive program, We green States properties finance, our XX, strong to uranium concept government. has a demonstrated in space is our graphite history a from expanding development green with executed an potential. through We've by

a in experience and have team And We management. plant development you management through And the with proven can Graphite operational achievement. anticipate and it and catalysts financial results, feasibility I'd milestone of remainder open to like XXXX, minerals Anastasia? with questions, results, vanadium for exploration energy and Coosa results, Project pilot study that, XXXX, development up for project

Operator

you. Thank

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

Debra Fiakas

you And questions. Thank my you. thank taking for

in sale? and additional First, pending charges when can just this by of the a couple was regard that And you uranium deal the impairment triggered to be Or primarily that the that closes, charge this charge of purchase perhaps the we housekeeping on can finally XXXX? charges have expect taken impairment agreements sale the properties. is might anticipate pending Is that we would one in that fourth the quarter so questions, all trigger? the

Chris Jones

the questions, really. no, the charges Yes, deal quarter. triggered charges a this there we will result no Debra. by deal. finish question, Thanks as impairment be during further for of impairment And Two the as the your valuation

Debra Fiakas

ask very little the for. or expect a study plant? capital did the you. cash what of little a also, Thank about to strategic it's of feasibility And fully two. amount guess, everything a on plans good. it now, kitty very a use mentioned Can maybe that nice more If perhaps we bit color little I pilot I terms noted recent that to just Okay, help fund? that raise. you us bit want have to to on money And the you in I could it year us related you support have will you I if more you you expect little color what in give just expect could over next fund we wondered of a you that of think provide to the sometime had funds course those XXXX. Can

Chris Jones

is base as study, The bet. You exploration well feasibility raise, itself result fully could execute the not on as through for project are into project, We as had a of all before project activities but of XXXX, fully business cash. well XXXX. this feasibility await plant, be from partially financing. yet pilot the $XXX our funded million results study level a of some funded the we The this raise, and funded, capital particular of

Debra Fiakas

I plant. very more questions And maybe then if that couple ask good. Okay, could a pilot just about of

in what commissioning a and you just mentioned presentation, involves. bit then of maybe You what what's way. you on that chose in to left approach was build, There's it maybe more and to various give I to And us connect locations locations. little commissioning left there can why your bit little color wondered the just about a multiple talk that

Chris Jones

You bet.

So, Dorfner place make Germany, our in locations. and running make doing in And where the in it's it it The sure is work, at sizing shaping the efforts We're in our of different work furnace is most our just Hamburg, commissioning Frankfurt. and Illinois simply New lab It's built. several means works. primary taking put. that to DEXDG, York, to

travel we even us, plant move supervise because utilize in because the expertise as need to between, in world. between locations, certainly to reason ground in but it restrictions afar importing can they United experts those is where locations we all don't on their to each have their in can I utilizes being we here without and what we here to. processing way, We our plant utilized, their our from present to particular best at States, over the in are with want this the Europe. it's So say our our defining this chose way important to graphite staff these execute that was pilot expertise, pilot people the of

Debra Fiakas

mentioned to the an how and have. point, expenditure project on you in operations Okay, approximately, very then, that that's for involved constructing at that you starting with And good. for this that initial group $XXX the financing and needed project that in million you've you're financing options that's is work advisory various that capital begun And Alabama? the to looking approach

Chris Jones

Yes. The $XXX project buy capital all it million and we land pots acquisition, cetera. and the also to itself, need et includes estimates includes that the pans But the and working hardware up a things other of so inside folded feasibility PEA there, as well further level the through first our is refinement as that seek during XXXX. remember study estimate, happens this part we the

Debra Fiakas

to Okay. the in And as this financing date have expect you when done? you project would you And in a when want place? -- do when study mind to you want feasibility to have see to

Chris Jones

the thereafter. June study, financing XX, project feasibility on the and

Debra Fiakas

Thank right. you the back into very I'll queue. All much. get

Chris Jones

Thanks, Debra.

Operator

The next an question comes from Russell Investor. Lacra go [ph], ahead. Please

Unidentified Analyst

and for question. Very my afternoon, you call. thank quick taking Good

concerned looking of goes, very are possibility partnership, as whether investor, just say project looking other in something financing individual possible dealership. you that about a I'm the project Is as are as to there's raise guys that you or an making at far As automobile not that a financing? ways? Or with

Chris Jones

in manufacturers with question. right product manufacturer. sales. are your in actually while terms for terms talks now of we I'm preliminary in a Russell, And partnership, automobile with talks in certainly of sure mean we're manufacturers you the automobile some that Thanks, not automobile direct

in a of we partnerships finance, project a three interested joint elucidated we the on forward, JV. equity, our on our of as basic methods as are little and debt, venture we As considering bit one go slide,

So hope I answers your question. that

Unidentified Analyst

It is next does. the is that And in possibility a that one anytime last quarter? question, possibility, if

Chris Jones

finished, XXXX. place midyear of which takes study financing at after project the is Typically, feasibility is

Unidentified Analyst

you. I'll the return Thank you. to Got queue.

Chris Jones

Thanks, Russell.

Operator

next [ph] Lavy comes The Investor. an from ahead. Alicia question Please go

Unidentified Analyst

taking Hello. you so than more like like, to competitors? your mining Hi, question. is sustainable thank know your the how much I'd for

Chris Jones

robust sensitive mining that. most currently the in our legislation project is Great And law, the environmentally question, as and U.S. under legally Alicia. thanks applied, of The will done world. be for which it's

of from all our our XXXX. place really post larger product for our graphite is into that in remind mining doesn't three Let's our concentrate listeners, take And streams. for until of the footprint the work processing processing XX%

really will. So meets you road, that's where sustainability the footprint the if environmental the and

Unidentified Analyst

Okay, very you thank much.

Operator

next an question comes [ph], Investor. go Instructions] Khan Sal Please [Operator The from ahead.

Unidentified Analyst

I how shares. insiders not come Hello. was do own any wondering, just of the

Chris Jones

may And insiders own to we basis have this which insider be bit order hope We question the eight shares. have last reshape I significant resulted of share investors your the that distorted. done along dilution re-task business seven years. to ownership. refinance a little been The is structure, do in has What to and question. in answers

Unidentified Analyst

Thanks.

Operator

Oh, next from Please -- This pardon The ahead. Investor. me. [ph], a go question Private comes Robert Duarte

Unidentified Analyst

Chris. Hi,

Chris Jones

Hi. and afternoon, Good thank you.

Unidentified Analyst

flagged that wait signaled the previously, well-being of to as as I that. specifically on obviously, is my has our well government we this considering have question the some and and for success strategic pacific the My plant, as know platform to additional considering we've the strategic as projects government country. financing it, is, the seeking as results grants, for country? of security ordering, now maybe talked the the is to executive But is political on U.S. question building as our changing we business, of see minerals some and are that a we seek support still we

Chris Jones

and of this the to States your and or Thanks for be and indeed On and is believe safety to security President are order United country. to forward, thanks the executive lead question, matter the no we a going materials second that of that to through a that major dollars beneficiary States was of the United blunt. funds to we types kind executive actually. that Department true, have important with These for loan frank With to regard from the not financing order, for Presidential is that. be and strategic in programs for those And whether quite Trump we of which in there will place. development of develop companies XXXX, seeking Previous B. grants of or Tesla other vehicles. and government, electric I allowed available billion tune that Energy XXXX allow a administration the made flaws to instance, the several are

financing comers project are conversations along. this with including for We we all as the DOE go in for

you And hope some with we take question. As our might study. expect, present when already various conversations with entities conversations feasibility have begun some that months, your the we not for these resolution weeks. come I answers June, players

Unidentified Analyst

manufacturers, appreciate reference having then that. earlier, sales. manufacturers battery conversations And regards vehicle course to you. to Thank of with mentioned in other in you -- I electric and

and in in So, the catalysts a business not you expecting XXXX, into the near-term. call, they're probably going those some mining, success the Obviously, of conversations possibly near-term? mentioned in the early end into for additional Is the projections XXXX.

think deals considering I actively have out the perceive that that, successful and understand gone something some the Is is that that rate business of a there. on? we pursuing

Chris Jones

answer news, them. would that during presentation when me much information slide we a alacrity and your as soon make with as our conservative saying conservative discuss so we and we that it's so can. eight ethic adopt on time I forward-looking integrity. around with And say have question as our regard years. We real. been would for And in We as do do with full we will to achieve publishing we these we publish we refer also by I we as did our Let keep almost promises, but and as results, you them, last to backdrop, very can that a

a than I that differently answers hope perhaps your intended. you little So question,

Unidentified Analyst

that if, you But in and hopefully might Chris. actively missed last, Department Yeah. support mentioned will something that will fruition comes it. of And When financing. be to that announced? you're I that be pursuing Defense Thanks, have and

Chris Jones

to speak if as And see didn't to we that place to directly One be of the small with any of we markets get Department conversations now. places we be at what said is how a contract, we right disclose DoD materials. Defense that We the the it'll really approximately correction, one directly up that can able of will we time. DoD much

Unidentified Analyst

go queue. you. thank into the Okay, I'll back

Chris Jones

Thank Anastasia, you. back to you.

Operator

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

Chris Jones

to to chance bit and talk your for with you. Thanks, little us to us further morning look about and invite allow Anastasia. I'd a And Thank information you you to We want our our of our a great story all disclosures spending any a success. thank to you today to that, our wish for you I take all desire. a like hear with And website day. at

Operator

call. conference today's concludes This

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

Westwater Resources (WWR) 12 Nov 202020 Q3 Earnings call transcript