Earnings call transcript Q1 2023

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Operator

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

First Quarter 2023 Results and Business Update Conference Call. [Operator Instructions].

to CEO. conference like Bakker, to now and President would turn over the Frank I ahead. go Please

Frank Bakker

Thank you, With thanks the Officer. business Terence moderator, and our Board; update quarter our Cryan, our and XXXX and first Steve results Chief Chairman call. Executive me Cates, is to today of those Financial attending

similar projections related presentation, this XXXX our including, cautionary which we may what's presentation price not timing the SEC to limited statements within schedule other but These and this graphite plant, differ demand read forecast, are based can the and and expectations the risks filings. those in from of Please are Slide raising deposits certain During make forward-looking uncertainties the and and XX-K graphite our Kellyton and actual activities. our X cost and and estimated of future that results to materially other today. activities, for the judgment, on subject be statements statement to economic description found graphite Coosa management's including realize and capital discussed on

to Kellyton EPA Alabama, Slide Mineral that supplier. the emission anode location in plant to by X anode new material necessary Also, continue the growing market. according the remain believe energy material the vehicles for critical on heart processing places Recently, to to Intelligence. Central electric U.S. the provide XX% graphite plant will our our the the Kellyton Benchmark U.S.-based next which operations announced demand is increase graphite years the completed, vertically of we transition. over targets, expected support of East focused X. first battery When We integrated the becoming in EV

requirements the to important IRA previously, because Reduction graphite content potential it our mineral considered meet U.S., in when been customers, As helps in requirement. produced by an domestic the catalyst the has we of with the Act. critical and domestic battery The U.S. contained manufacturers Inflation this government. And EV have a content engagement mentioned is

a was we agreement BlueOval, update announced in EV plants our X is building we plants week, is which XXXX joint in Last that follow-on operates SK announcement X. manufacturer On SK X battery currently On, with additional Tier with battery development a call. X Slide global EV its referred the venture Georgia to year-end U.S. under Ford. and during joint the battery

Additionally, SK facility build plans announced On has Hyundai. manufacturing $X to Georgia billion battery with a EV in

work Under with excited extremely we JDA, significant Kellyton CSPG be Tier will those future On at ensure anode of JDA our and a high-performance for work already sale that for has the Kellyton like X batteries. are with and produced the to those the plant batteries. be terms plant all used SK will potentially We negotiated work SK and to to On. battery agreement, Subject manufacturer efforts yet material the conditions in a their the material for allows anode as to our from begun

we and be strong have manufacturers and interested customers but other only an not Interest those customers and which samples potential or remains place, for requested for well. to from in LOI JDA continue as produced battery

will year. Slide zero recordable under X had plant incidents have core been operate. This the We've Phase of we of #X the be teammates. is continue to significant is value we our the the by and And a our Turning contractors construction, and environment our over for live to well construction protection of for construction as as accomplishment. for Safety where X Kellyton beginning a safety update. and Westwater since

the have those primary continues buildings buildings, Long-lead for to at we To completed construction and the date processing X of process, equipment equipment shaping financing. equipment site. of arrive receive receiving equipment date, purification closing to and the related of we've equipment As process subject the on and patent and months, receipt ready this expect additional additional coming are to milling call, of installation. begun our additional in to pending

of still of equipment the of to targeting the optimized ton later year the Phase begin year half ready at and per X annual rate have are of this to We Kellyton produce CSPG to installation of X,XXX second run metric XXXX. plan the plant in

cost subject has Approximately produce expansion our study, definitive X potential. of the we feasibility significant allows on metric The X, Slide X estimated a site X XXXX. at expected current the in a per Phase $XXX expansion pre-feasibility of at for half level acres CSPG. The million, tons to to capital XX,XXX expansion is begin XX for Phase footprint. second Phase which the intend is year Kellyton to

approximately supply there graphite to a are manufacturing plants part plants content these meets plants. planned of battery United these under either Westwater construction significant the XX in be built the the plans solution IRA. States, Currently, on to And the of that domestic be or battery for graphite requirements all

to Turning X. Slide

We across mentioned. content integrated and graphite also giving first plant the the advantages, the in fully battery trade the domestic IRA mineral graphite the to U.S. hold will provide significant approximately competitive acres processing Alabama in deposit belt, this Coosa previously graphite XX,XXX operations, Kellyton We domestic vertically believe once company requirements rights the in the represents

the acres completed for report XX% requirements our In hold mineral technical worth we plant graphite, we approximate feedstock rights. drilling enough over graphite completed technical a which and of It's processing that program fourth the XX and the geological years. noting identified drilling the the for to approximately was in report XX,XXX on published Kellyton to of based model supply estimated XXXX, million our X.X about April tons short quarter, completed exploration which

our proud contractors, the involved Resources Westwater's all dedication I team, make am of hard of extremely successful. and work the Westwater to

turn Mr. Now Officer, Chief Cates. over it our to like I to would Steve Financial

Steve Cates

good Frank, you, and Thank morning, everyone.

Westwater approximately quarter no the X. and finished Slide balance a of with million On cash $XX debt.

and be debt to process plan definitive transaction. a update position a in to private executing a investors close upon million through required for progressing We $XXX to the are transaction

first by due primarily XX-Q to X. financial cash prepaid as operating discussion summary quarter as well higher partially in these offset Turning of on Form income of other for of recently Net $XXX,XXX, assets inventory. was to included the the and a approximately Detailed our quarter used increase in by is purchase press all activities approximately the items interest release. filed Slide first the in earned feedstock This quarter. increased and decrease during $XXX,XXX our

in Kellyton the spend of totaled estimate for activities the investing current was ongoing related construction Approximately capital $XX and construction, related cash $XX in million as of the to used working X to to $XXX QX construction liabilities quarter of approximately $XX of was Phase first Phase December of plant. million X construction cash XXXX. and we related Since that quarter our X included beginning spend remaining. the million, million approximately Cash approximately activity Phase totaled XX, cash expenditures

As of Phase XX, March include liabilities. approximately of current liabilities XXXX, $XX our million related X construction

first Product approximately development last additional costs of relates quarter the QX compared year. customers first to increase increased to by quarter. sample The $XXX,XXX during for for the production

Kellyton Phase contracts product of important customers of prior maintain during to qualification X process to early We customer additional under the commencing advantages development and work in through related reaching plant customer We contract our as place. expect remainder continuing XXXX mover market to to volumes to costs and put is believe with work to we the operations. the sample LOIs production continue having to goal incur

the QX primarily XXXX as share well announced for quarter million in quarter the of net loss of our interest loss reductions management discussed. were or approximately income net loss during the as $XXX,XXX share cash of in offset to higher million expenses, per development exploration and $X.X costs arbitration per higher $X.X the Republic Lastly, primarily These to to to $X.XX related $X.XX due The Turkey. executive earned costs net reduction compared of lower our costs balances was higher change partially first was by in on product and against or a previously loss lower January related net arbitration G&A to XXXX. the

you, questions. turn for operator, back that, the With I'll to call

Operator

first Our from [Operator [ph]. comes Pierce Firm] [Michael Law of Instructions] question Dean

Unidentified Analyst

I debt operate hand. close basis? cash to funding on am in calling how an more need much -- yet ask million spend become million it until ongoing the finalized, $XX the company on saying business order to to is you the $XXX have financing profitable will If you're to can

Steve Cates

Thanks, talking Good Michael. you. to

we'll think capital needs. about I progressing continue We're forward. the are and to to the to keep factors. move try when monitor amount to operating Phase million this construction. a some think do X of costs for of But I think $XXX way is to a And and have moving able avoid be that manage we we normal there's corporate Obviously, low raises pleased transaction, towards that debt XXX closing closed, where lot on beyond to a close that's needing funds million treasury, additional our continue significant you'll see to us costs. fully with

shareholders, fellow management significant this focus transaction. debt dilution we concern that's And dilution. understands for on definitely As and the continue to why

Unidentified Analyst

on the close still is transaction And quarter? debt potentially to track this

Steve Cates

goal. working historical at having. what in progress Obviously, sometimes X pleased with where takes we're the the go we we're markets say, are what There's but the parties. discussions moving they things our being That's through. where aren't I financial that are, to have That's It you a we towards. speeds, process long would are and

this call, a The we deal. as was in QX non-exclusive our other thing, Michael, mentioned

so available the to are want that with But still we open through eliminate, And wanting parties Westwater the we we in to working best are some where for because debt the flexibility and interested of that interested as we deal to necessarily finance are its project other shareholders. have keep want in process the rates. we still pleased find we're don't

Operator

from of comes question Tower next Water Our Silversteyn Research. Dmitry

Dmitry Silversteyn

A couple of questions.

were SK production. development potentially of On all on talk supply agreement, potentially to X referring about that all, Phase Phase of Phase about and or taking the deal. the to and together? Was the leading CSPG SK talking agreement X you X you When a First On

Frank Bakker

to question. Yes. for X. Phase Phase to Thank later referring and also on. moment the X X But it's this related potentially you, Dimitri Phase That's for

Dmitry Silversteyn

the half talked All production talking CSPG metric looking Is speaking X ton you year? do just right. X,XXX Or the you plans to sometime XXXX. of run of that, production XXXX. second you Okay. of of the rate second into ramping of half Originally, full construction start that start Phase finish half in were the getting the still were at about the of to and the to ton the it. about full in end annual of X,XXX by plan you up up 'XX expect beginning to year? And ramping Got and the getting in then the second

Frank Bakker

still that's start second reach in case. announced of so the that and we production half Well, in half previously second full will the ramping the XXXX, up

Dmitry Silversteyn

Okay.

-- the the is have production So if because on last you footprint call. will expanded you to planned significantly construction understand, I'm quarter's ambition trying or

of see, produce twice So much X.? I'm you lines to the timing at to to moved you trying be are intended you flow as if just extra putting the your plan of able under Phase either completion all in let originally rearranging sheet because or as as the

Frank Bakker

Yes.

what be and start up to second produce that and X,XXX we'll ton full in half target So in starting first the commissioning per in of rate run then communicated that to the the call XXXX, of half then And half that's production commissioning then we of continue in line XXXX. on last year CSPG reach second XXXX. is with some our at our and be metric

Dmitry Silversteyn

at. what That's getting was Okay. I

Okay. much. Perfect. Thank you very

Operator

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

Frank Bakker

you call. and next on look to company, our for Yes, again I to interest your Thank thank to forward speaking I you. our in want you

Operator

This concludes conference today's call.

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

Westwater Resources (WWR) 11 May 232023 Q1 Earnings call transcript