Q4 2021 Lightbridge Corp Earnings Call

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Thank you for standing by and welcome to the Light Bridge Corporation business update conference call.

Please note that today's call is being recorded.

It is now my pleasure to introduce Matthew <unk> director of Investor Relations for like Bridge Corporation.

Thank you Liz and thanks to all of you for joining us today.

Joining us on the call is Seth Gray Chief Executive Officer, along with Andre Boucher comp Executive Vice President for nuclear operations, and Jim <unk>, Vice President for nuclear program management.

I would like to remind our listeners that any statements on this call that are not historical facts are forward looking statements. Today's presentation includes forward looking statements about the company's competitive position and product and service offerings. During today's call words, such as expect anticipate believe and intend will be used in our discussion of goals.

Or events in the future. This presentation is based on current expectations and involve certain risks and uncertainties that may cause actual results to differ significantly from such estimates. These and other risks are set forth in more detail and languages filings with the Securities and Exchange Commission like which does not assume any obligation to update or revise.

Any such forward looking statements, whether as a result of new developments or otherwise.

And with that I would like to turn the call over to your House first Speaker, Seth Gray Chief Executive Officer of like Bridge Hello, Seth.

Well Hello, and thank you, Matt and good morning, everyone. Thank you for joining us Tonight.

We are in the process of finalizing our audit in fiscal year 2021 financial results, which is why we have not yet issued our earnings press release, we anticipate that our results will be completed and disseminated in a press release next week and in any event, we will not be issued late.

At like bridge, we go on and have excellent progress to report, but we are mindful that this is a tumultuous time, including nuclear power facilities in Ukraine under threat by Russia's military endangering people in our industry there and of course, so many other people.

Light bridge reached many goals in 2021 that will support our long term upward trajectory. We completed our first gain voucher with Idaho National lab to develop the experiments to irradiate material samples of light bridge metallic fuel in the advance test reactor.

We also began work on our second gain voucher in collaboration with Pacific Northwest National Lab to demonstrate our casting process using depleted uranium a key step in the manufacture of light for each fuel.

We anticipate completing this work in the second half of 2022.

We successfully demonstrated our proprietary manufacturing process using our high temperature co extrusion process for three lobe six foot lines surrogate Raj, which is the typical length of the fuel rods used by small modular reactors now in development and licensing.

Performing these initial fabrication development activities with actual nuclear grade zirconium alloy and with surrogate materials instead of uranium allows us to use a broad range of suppliers and there's a cost effective approach since it doesn't require procuring uranium material Andre will discuss these items shortly.

As part of our fuel development work, we expanded our patent portfolio by successfully obtaining seven new patents in 2021 in the United States.

In key foreign countries as.

As of December 31, 2021, we held five U S patents and more than 140 foreign patents with 15 pending patent applications. These patents help safeguard our intellectual property, which is in in an integral component of the company's plans to monetize <unk>.

<unk> technology in the future.

We anticipate that fuel development milestones over the next couple of years will include an agreement to manufacture our nuclear fuel material samples for capsule irradiation in a test reactor, while continuing to develop and optimize our nuclear fuel manufacturing processes using depleted or natural uranium.

And initiating the design and manufacturing of our multi low fuel abroad with enriched uranium for fuel irradiation experiments in a test reactor.

We are actively working with the U S government and the private sector to reach these key milestones.

The benefits of nuclear energy have come into focus over the last year like never before accountability for achieving net zero carbon targets being set by countries and companies around the world continues to drive the momentum toward more nuclear industry friendly policy decisions.

The hover in Ukraine, and before that the energy crises experienced in some parts of the world have amplified concerns from policymakers about energy security.

Unfortunate events have only amplified the fact that energy security and energy infrastructure will be meaningful priorities, which bodes well for nuclear power.

Only nuclear power can expand the availability of clean and reliable baseload electricity without carbon emissions, while weaning countries off dependency on fossil fuels from countries that are threatening their national security.

There is a growing consensus that nuclear power with its clean emissions profile reliable and secure baseload capability and low level is cost.

I'll play a major role in achieving de carbonization goals throughout 2021, the United States as well as the United Kingdom, and France reaffirmed their commitment to nuclear power by developing plans to support their existing reactor basis and are currently reviewing their policies to encourage each.

Even more nuclear capacity in fact, the European Union demonstrated strong support for nuclear energy by agreeing in principle to include certain nuclear energy activities and its taxonomy for sustainable finance.

Its inclusion will identify nuclear power as a climate friendly investment and could result in increased investment in nuclear power technology.

The United States Nuclear regulatory Commission is annual regulatory information conference was held this week, we were heartened by Commissioner Barron's speech in which he gave strong support for the effort effort within the NRC to move toward technology neutral performance based regulation.

<unk> for advanced nuclear fuels.

Next week.

I'll participate in an important session at south by southwest in Austin, Texas Dr.

Dr. Schatz at Chalk River <unk>, who is an independent member of light bridges board of directors and chairs our ESG Committee will lead. This session. She also serves as president of U S operations at we don't have time.

The world's largest climate action review platform dedicated to connecting key thought leaders about climate change initiatives part of my message that I look forward chicken value is it light bridge is a clean Tech company because nuclear is a clean tech energy industry.

With this technology that life reaches bringing we think many more people can start to see it that way too.

<unk> fuel addresses concerns that people have about nuclear power and together with small modular reactors can really help nuclear power grow and help others, except nuclear as a clean tech industry.

It makes us stand out because as far as we can find light bridges. The only pure play listed nuclear company in the world.

While this is a time of great opportunity for our industry I again want to acknowledge people in Ukraine, who are operating nuclear facilities under the most difficult of circumstances.

And with that I'll turn the call over to Andrey <unk> <unk> executive VP for nuclear operations, who will review, our near term research and development opportunities Andre.

As Seth mentioned, we continued to make progress in our fuel development program from 'twenty to 'twenty one.

Some political work under the U S Department of challenges gain voucher program in collaboration with the National Laboratory.

I'll work consists of corporate advice experiments for the irrigation of life insurance out fuel material samples and the advance test reactor if all the promotional lever.

Together, we establish the best plan for the measurement of Keystone physical properties of lightweight fuel material, both before and after addition of the advanced test reactor.

I'm there Idaho National Laboratory performed a detailed design and establish the safety case, neither swim assertion of experiments on this one.

That's weird.

This included the control parameters such as sample enrichment jarmo.

Normal hydraulic capacity.

Maximum sample temperature.

Neutral influence and the physical location of capsules presumed advanced best III yet.

Next steps and divestment program.

You'll get the contract for the highest necessary low enriched uranium material.

Vacation with the sample coupons when assertion on the advanced test reactor.

Our goal is to have a experienced available insertion of <unk>.

Sure.

Its core internal change out maintenance outage was completed.

The timing of insertion and subject to the final duration on the maintenance outage.

The ability of patients and physicians on that last batch reactor.

Just the national laboratories prior commitments with Kingston.

As well as fabrication and delivery of coupon samples.

Once the required use of cheer them big box that's reactor.

Most of the reducing elimination.

Sure.

We began work on a second gain voucher in Pacific Northwest National Laboratory.

Al.

And the third quarter of 'twenty to 'twenty one.

The scope of this project.

Illustration of biofuel casting process using depleted uranium.

50% quite equate how long with third quarter.

This was a key staff from the fabrication process for fossil fuel and its also keeps into our needs for fabrication of irradiation fuel samples.

That's reactivated.

Sure.

We have completed procurements and deliveries to P&L.

<unk> uranium zirconium materials.

Tier vendors, which is a component of why we just mentioned contribution from approach.

The total value of the project was approximately six.

6% to $3000 with three quarters. So this is funded by the U S Department of energy with a scope performed by BMO.

We also had a successful demonstration of follow up questions of course sourcing process using surrogate materials in place of uranium.

Service Raws and manufactured using <unk>, Susan fraud at the six foot normal lags designed for small modular reactors.

The successful demonstration of our highest temperature Cork sorghum illustrates the primary reforming process for lightweight fuel, including the helical this or the fuel rods and the metallurgical bonds, it's been the central displacer.

Third the fuel alloy and declared it.

Broad produced during this demonstration there'll be Hughes brothers dwell Comex. Two this included the validation of computer models of the exclusion process.

And so erosion based simple as fabricated palladium.

The design language fueled small modular reactors the more efficient from the low colo ramping up and down and calls renewables.

The place from fossil fuel plants.

In addition, we expect this technology to reduce the cost of generating electricity from a small modular reactor.

We strengthened the business case for deploying large numbers of small modular reactors and deliver reliable power meet climate goals.

Back to you Sir.

Well, thank you Andre and that will go to a question and answer session. Thank you to everyone who has submitted questions.

Matt.

Okay. Your first question.

Has there been any progress or updates regarding the possible additional tests loops.

Advance test reactor at Idaho National Laboratory.

Yes, there are updates my understanding is that the U S Department of energy is funding, Idaho National Laboratory to add one additional test loop at the advanced test reactor, that's nice progress, but we don't think it's good enough. We are in contact with officials to explain why we believe it is important for U S energy.

Security to add an additional one or two tests loops to that reactor beyond the one that is available to industry now and the one that's being added.

Of course, our focus is on light bridge fuel.

But it's also important for advanced nuclear technology in general to have this added testing capacity if the U S is to compete successfully against China and Russia in international markets. China's in Russia is equivalent test reactors already have the added test loop capacity.

Next question.

Okay. How confident are you that light bridge will be able to obtain sufficient quantity of halo to perform the irradiation testing experiments in research reactors.

Well Halo high assay low enriched uranium.

Is the material we're talking about in D. O E. The department of Energy has expressed support for advanced reactors and fuel designs as Ondrej mentioned the next step in our testing program will be to enter into a contract with Doe that will include Doa providing this halo that this high assay low enriched uranium for our fuel samples.

That will be inserted into the advance test reactor, we look forward to announcing that contract, which will be a positive answer to your question, but we're still working on it we will announce it as soon as we sign it.

Question Matt.

How will the waste from spent like bridge the old compare with existing nuclear fuel rods.

How will the waste compare well, yes, Kurt current nuclear fuel is already pretty highly proliferation resistant. According to a report by Siemens in a peer reviewed article in a major technical journal light bridges used fuel would have significant added proliferation resistant benefits as can be.

Payer to current nuclear fuel we.

We believe this advantages of particular relevance for small modular reactors that are being developed and we expect will be deployed in large numbers around the world. So they can't be used for weapons programs. During the decades that they will operate in many different countries.

Also the nuclear power industry did not create the weapons grade plutonium like governments produce particularly the U S and Russia, but we believe that light bridges nuclear fuel technology could be used to dispose of it five times faster than any other technology.

You have another question.

Yes. This is our last question.

Is lightweight pursuing additional game vouchers or any other government funding or cooperation.

Ah well over to Jim you want to take that one.

Yes sure Seth.

Yes light light bridges continuously looking for non dilutive government funding opportunities that can align with our fuel development program schedule and at the same time considering.

And minimizing any concerns that we might have regarding protection of areva and our intellectual.

Intellectual properties.

We believe that performing well on our first gain voucher has helped lead to the second gain voucher and we're now focused on performing well under that second gain voucher at.

Pacific National Lab, which we believe will lead us to future opportunities for government funding support.

Okay.

Okay. Thanks, Jim.

Next question Matt.

That's the last question.

Okay, well, thank you to everyone who submitted those questions. We appreciate your joining us on this call.

We look forward to additional updates in the near future in the meantime, we can be reached at IR at <unk> Dot com stay safe stay well goodbye.

Thank you all for attending you may now disconnect.

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Yes.

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