Q1 2022 Westwater Resources Inc Earnings Call
[music].
Thank you for standing by this is the conference operator.
Welcome to the Westwater Resources, Inc. First quarter 2022 results and business update conference call.
for standing by. This is the conference operator. Welcome to the Westwater Resources Inc. first quarter 2022 results and business update conference call.
As a reminder, all participants are in listen only mode and the conference is being recorded.
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I would now like to turn the conference over to Chad Potter President and CEO .
I would now like to turn the conference over to Chad Potter, President and CEO .
Please go ahead Sir.
Thank you.
And thank you for all of our first quarter 2022 results call.
And thank you for all attending our first quarter 2022 results call.
With us today are Terence Cryan, our executive chairman of the board.
Jeff Vigil, our vice President and Chief Financial Officer, and Steve Kinsey, Our Chief Accounting Officer.
With us today are Terrence Cryant, our Executive Chairman of the Board, Jeff Vigil, our Vice President and Chief Financial Officer, and Steve Case, our Chief Accounting Officer.
Slide <unk>.
During this presentation are forward looking statements, we make are based on management's judgment.
Slide two, during this presentation, the forward-looking statements we will be making are based off management's judgment.
Including projections related to Kelly can scrap by plant in acoustics grabbed my departure.
Payments are subject to certain risks and uncertainties, a description, which can be found on page two in this presentation.
including projections related to Kelly's graphite plant and the crucifix graphite deposit. These statements are subject to certain risks and uncertainties, a description which can be found on page 2 in this presentation. Our 10K for 2021 NRSEC file, actual results may differ materially from what may be discussed today. Thank you.
10-K for 2021, and our SEC filings.
Actual results may differ materially from what may be discussed today.
On page three.
Why westwater as in the past.
Westwater as an energy technology company focused on producing battery grade natural graphite materials for advanced batteries here in the United States.
Westwater is an energy technology company focused on producing battery-grade natural graphite materials for advanced batteries here in the United States.
Where are you using a patent pending proprietary purification process.
Made a lot of progress during the first quarter with our construction activities, which includes silwan Earth work, which began in March.
We're using a patent-bending proprietary purification product.
We made a lot of progress during the first quarter with our construction activities, which includes civil and earth work, which began in March, hiring our various general contractors and other contractors.
Our various general contractors and other contractors.
We continued the process of ordering long lead time equipment, and the Buildout and completion of our administration offices in April .
continue the process of ordering long lead time equipment and to build out and completion of our administration's offices in April .
Also in April we hosted a ceremonial groundbreaking at our Pelican facility, which was attended by the Governor of Alabama, and other state local and federal officials.
Also in April , we hosted a ceremony of Brown Brighton at our Pelican facility, which was attended by the governor of Alabama and other state, local, and federal officials.
In April we completed the exploration drilling program at our Coosa graphite deposit and we expect our geological model to be completed by the end of the year.
In April , we completed the exploration drilling program at our Pusagraphite deposit, and we expect our geological model to be completed by the end of the year.
By fourth.
I'd like to turn it over to our Chief Financial Officer, Mr. Jeff Vigil. Thank.
Thank you Chad good morning, everyone first let's take a look at our capital position on slide four.
I'd like to turn it over to our Chief Financial Officer, Mr. Jeff Vigil. Thank you, Chad. Good morning, everyone. First, let's take a look at our capital position on slide 4.
Our closing share price on Wednesday may 4th was $1.37.
Our closing share price on Wednesday, May 4th was $1.37.
With approximately 47 2 million shares outstanding.
Market capitalization stands at approximately $65 million.
and with approximately 47.2 million shares outstanding.
Our average daily trading volume over the past three months was approximately three 2 million shares per day.
Our market capitalization stands at approximately 65 million.
Our average daily trading volume over the past three months was approximately 3.2 million shares per day.
Share prices began the quarter at $2.15.
And ended the quarter at $2.
The share price began the quarter at $2.15 and ended the quarter at $2.15.
Do you believe investors have taken a more cautious approach to westwater as we embark on the construction of our graphite processing facility in Alabama.
We believe investors have taken a more cautious approach to west water as we embark on the construction of our graphite processing facility in Alabama and the large capital expenditures associated therewith.
And the large capital expenditures associated therewith.
We finished the first quarter with a cash balance of $116 million.
We had a working capital balance of approximately $109 million.
We finished the first quarter with a cash balance of $116 million and a working capital balance of approximately $109 million.
During the first quarter kind of utilize this ATM facility with Cantor Fitzgerald to raise approximately $16 million from stock sales.
During the first quarter, the company utilizes ATM facility with counterfeit sterile to raise approximately 16 million from stock sales.
April 2022.
<unk>, an additional 9 million from ATM stock sales.
In April 2022, we raised an additional $9 million from ATM Stock Sales.
Our working capital balances zero debt provide us with the ability to continue to move that construction of phase one of the kelsen graphite plant forward.
Our working capital balance and zero debt provide us with the ability to continue to move the construction phase one of the skeleton graphite plant forward.
Yeah.
Since the beginning of the construction of phase one we have incurred $17 8 million of the estimated total cost of $202 million.
Since beginning the construction of phase one, we have incurred 17.8 million of the estimated total cost of 202 million.
Our two financing facilities with Cantor.
Lincoln Park provides a company with an opportunity to raise cash at a low cost of capital.
Our two financing facilities with Canter and Lincoln Park provide the company with an opportunity to raise cash at a low cost of capital and maybe use in the future to support the company's business plan in 2022.
And may be used in the future to support the company's business plan in 2022.
However.
Management is currently engaged in the process of identifying additional.
Or alternative sources of low cost capital funding.
Management is currently engaged in the process of identifying additional
Which potentially could include project level debt off take agreements.
or alternative sources of low-cost capital funding.
Loading grant programs provided by the U S Department of energy.
which potentially could include project-level debt, off-take agreements, loan and grant programs provided by the U.S. Department of Energy, a strategic partner, or a combination of these.
The strategic partner or a combination of things.
Turning to slide five we provide a financial summary for the quarter ended.
Turning to slide 5, we provide a financial summary for the quarter and this March 31, 2022.
March 31 2022.
Net cash used in all operating activities was $2 7 million for the quarter.
This compared with four 8 million for the same period in 2020 Watt.
Net cash used in all operating activities was $2.7 million for the quarter.
$2 1 million decrease in cash used was primarily due to reduced product development expenses and arbitration costs.
is compared with $4.8 million for the same period in 2021.
2.1 million decrease in cash use was primarily due to reduced product development expenses and arbitration costs.
Product development costs for the three months ended March 31 2022.
Product development costs for that three months end at March 31, 2022 decreased 1.6 million compared to the same period in 2021.
Decreased $1 6 million compared to the same periods in 2021.
Costs incurred for the first quarter of 2022.
Weighted to continued product optimization costs, while the prior year period was impacted by expenses related to our DFS report for the California plant and the company's pilot program, both of which were completed in the second half of 2021.
The costs incurred for the first quarter of 2022 were related to continued product optimization costs, while the prior year period was impacted by expenses related to our DFS report for the Caliton plant and the company's pilot program, both which were completed in the second half of 2021.
General and administrative expenses for the three months ended March 31, 2022 increased by $100000 from the prior year period.
general administrative expenses for the three months and then March 31, 2022 increased by $100,000 from the prior year period.
The increase year over year is due primarily to increased payroll costs as the company continues to build out its team and to invest in sales and marketing.
The increase year-over-year is due primarily to increased payroll costs, those companies continue to build out its team, and to invest in
Net loss from continuing operations for the three months.
March 31 2022.
Net loss from continued operations for the three months into March 31, 2022 was $2.8 million or $0.08 per share, compared to a net loss of $5.4 million or $0.19 per share for the same period in 2021.
It was $2 8 million.
Or eight cents per share compared to a net loss of $5 4 million or <unk> 19 per share for the same period in 2020 Watt.
$2 6 million reduction in net loss is due primarily to decreased product development expenses and arbitration costs.
2.6 million reduction in net losses due primarily to decreased product development expensive and arbitration costs. And with that, I'll turn it back to you, Chad.
And with that I'll turn it back to you Chad.
Thank you Jeff.
On to slide six.
Ensuring the health and growth of our business.
We continue to with.
With construction of our graphite.
Graphite processing plant as well as.
continue to with construction of our graphite processing plant, as well as
The exploration and modeling.
Our coosa graphite deposit.
Also we are continuing to work to ensure the adequate financial liquidity to support our key operations and business activities.
the exploration and modeling of our crucigraphite deposit.
Also, we're continuing to work to ensure the adequate financial liquidity to support our key operations and business activities. To reiterate, Mr. Bishop,
To reiterate.
Mr. Visuals comments, we had a cash balance of $116 million in Europe that also we were active we are in active discussions on a range of alternative sources of additional capital necessary to complete phase one of the couch scrap by process.
Also, we were active discussions on a range of alternatives.
With a focus on securing low cost of capital available.
additional capital necessary to complete phase one of the kelps and graphite processing plan with a focus on securing low-cost capital available.
<unk>.
That's why it's a major component of all batteries.
Batteries, which include lead acid alkaline power cells in non rechargeable lithium cells.
batters which include lead acid, alkaline power cells, and non-retargeable
Coated purified spherical graphite is a critical component of lithium ion batteries.
Coded, purified, spherical graphite is a critical component of lithium ion batteries.
In the U S government is if I'm grappling as critical to national security and our prosperity and the white houses in the both the defense production Act.
The U.S. government has defined graphite as critical to national security and to prosperity, and the White House has invoked the Defense Production Act. And recently, the Department of Energy Funding Opportunity Announcement allocated $3.1 billion to expand the advanced battery manufacturing capability.
Recently, the department of energy funding opportunity announcements allocated $3 1 billion to expand.
Battery manufacturing capabilities in the U S.
Slide eight.
The technical lithium ion battery contains considerably more graphite lithium.
The typical lithium ion battery contains considerably more graphite than lithium.
<unk> half of all lithium ion battery cells is made up of graphite.
Approximately half of all lithium-ion battery cells is made up of graphite as depicted on the graph on the screen.
As depicted on the graph on the screen.
Just for electric vehicle contains approximately 200 pounds.
Traveling.
A typical electric vehicle contains approximately 200 pounds of an anode graphite.
Right right.
Battery market as they continue to grow and grab why it is.
Critical component is.
battering markets they continue to grow and graphite is an incredible component of this.
As outlined in the previous slide slide eight.
But the EV sector of the market is expected to grow at a 24% compound annual growth rate and will drive demand for lithium ion batteries in the future.
But the EV sector of the market is expected to grow at a 24% compound annual growth rate. It will drive demand for lithium ion batteries.
D S. P G as a principal product what makes up the analytic class lithium ion battery.
DSPG is a principle product, what makes up the anode and the lithium ion battery.
The demand for battery storage sector.
<unk> stores, enabling technology permitting renewable energy technologies, such as wind solar enabling power to be restored and then released during periods of peak demand.
The demand for battery storage sector, battery storage enabling technology, preventing renewable energy technology such as wind and solar, enabling power to be stored and then released during periods of peak.
Other sectors, such as consumer electronics, and defense will provide additional markets for our graphite material.
Other sectors, such as consumer electronics and defense, will provide additional markets for our graphite materials.
Onto slide 10.
As you can see on this slide our kellison graphite processing plant is scheduled to be completed in 2023.
As you can see on the slide, our KELIS and Graphite Processing Plan is scheduled to be completed in 2023. And our KUSA Graphite Mining Project is anticipated to begin in 2028.
And our Kusek Coosa graphite mining project is anticipated to begin in 2028.
Taken a different approach here by developing our processing plant first then bringing our graphite mining project.
We've taken a different approach here by developing our processing plant first, then bringing our graphite mining project in perspective around 2000.
Expected around 2028.
This approach has a lower upfront capital costs are faster path to revenue and cash flow.
The approach has a lower upfront capital cost and a faster path to revenue and cash flow.
And as he risks the timeline and permitting at the Coosa deposits as we have third party non Chinese sources natural graphite flake.
And he risked the timeline in permitting at the CUSA deposit as we have third party mountain Chinese source of naturopath by display.
Until the production of our graphite Marcuse deposit comes online at around 2028.
until the production of our graphite from our cruise deposit comes online in around 2028.
This vertically integrate our operations provided long term security of supply for Kelly and processing facility.
This will verbally integrate our operations and provide a long-term security of supply to our Kellyton processing facility.
Onto slide 11.
Our focus has grabbed by processing is easily understood. When you take a look at the value created during the process of natural grab why flake.
Our focus of graphite processing is easily understood when you take a look at the value created during the process of natural graphite play.
Which sells for around a thousand dollars a ton in the CSP G, which sells for approximately 9000 per ton, resulting in valuable supplier of approximately nine times.
sells for around $1,000 a ton in the CSBG, which sells for approximately $9,000 per ton, resulting in a value multiplier of approximately nine times.
Onto slide 12.
This slide tells you exactly why we went all in a developing advanced graphite materials.
Blue bottle sexual represented existing and projected Chinese Android material production.
This slide tells you back to why we went all in on developing advanced graphite material.
The blue bottom section represents existing and projected Chinese anode material production.
Yellow section represents expected non Chinese Android material supply and the dotted segment represents required new anode material capacity needed to meet demand.
The yellow section represents expected non-Chinese anoid material supply, and the dotted segment represents required anoid material capacity needed.
U S is currently a 100% dependent on foreign imports advanced graphite materials with 85% of global output coming from China.
The U.S. is currently 100% dependent on foreign imports of advanced graphite materials, with 85% of global wild foot coming from China. Our Kelly's and Processes plan is expected to be the first of its kind in the United States.
Our colleagues in processing plant is expected to be the first of its kind in the United States.
Our proprietary purification technology.
Westwater has developed a new technology for graphite purification.
We have filed a provisional patent application with the U S patent and trademark office for this technology.
Westwater has developed a new technology for graphite purification. We have filed a provisional patent application with the U.S. Patent and Trademark Office for this technology.
It is a more sustainable footprint than currently used in China, where environmentally damaging and expensive to manage hydrofluoric acid issues.
It has a more sustainable footprint than currently used in China where environmentally damaging and expensive to manage hydrochloric acid.
This process yields graphic carbon more than 90, 995%.
This process yields graphitic carbon of more than 99.95 percent, loud for flexible
Loud for flexible feedstock and consistent performance.
System, three steps, including cost of grossing the graphite concentrate sample acid leaching and thermal treatment of a sample.
consists of three steps, including caustic roasting of the graphite concentrate sample, acid leaching, and thermal treatment of the sample.
On to slide 14 in 2021, we purchased two buildings comprised of 90000 square feet warehouse and office space immediately adjacent to the plant site.
On the slide 14, in 2021 we purchased two buildings comprised of 90,000 square feet of warehouse and office space and immediately adjacent to the plant site. These two buildings were purchased on very favorable terms really jumpstarted our development at Kelly
These two buildings were purchased on very favorable terms really jumpstart our development Kelly facility.
We expect the plant to be completed at the end of the second quarter of 2023 currently on time and on budget and have ordered long lead time items, such as our first in late 2021.
We expect the plan to be completed at the end of the second quarter of 2023, currently on time and on budget, and have forward-long-lead time items, such as our firsts in late 2020.
While construction is underway, we have samples from our pilot plant in the hands of our prospective customers undergoing customer review and testing.
While construction is underway, we have samples from our pilot plant in the hands of our prospective customers undergoing customer review and testing.
This positions us ideally to announce customer LOI for advanced commencing operations next year.
This position is ideally to announce customer LOI's advance convincing operations next year.
On to slide 15.
Coosa graphite the positive sources of domestic U S natural for Aflac.
COUSA graphite deposit is a source of domestic U.S. natural graphite.
The exploration drilling to further define the graphite deposit is completed and geological modeling is expected by the end of 2022.
The exploration drilling to further combine the graphite deposits completed in geological modeling is expected by the end of 2000.
Westwater vanadium discovery at its deposit could contribute to the revenues battery grade graphite products will initially be produced for non Chinese source and the natural flake graphite until the Coosa graphite deposit Isabella.
Less water and vanadium discoveries at its deposit could contribute to the revenues. Better grade graphite products will initially be produced from a non-Chinese source in a natural plate graphite till the acoustic graphite deposit.
Our graphite processing plant at our Coosa graphite deposits together represent the first fully integrated battery grade graphite project in the United States.
Our graphite processing plant and our crucifix graphite deposit together represent the first fully integrated battered grade graphite project in the United States.
On to slide 16.
This slide represents our leadership team.
Proud to join as the CEO in February .
This team represents highly experienced.
proud to join as the CEO in February . This team represents highly experienced individuals both from the
Individuals' both from the mining.
Financial sector.
As well as.
Those that have experienced and high leadership roles are very proud to be part of this team and the experience that they represent.
financial sector, as well as those that have experience in high leadership roles. I'm very proud to be part of this team and the experience that they represent. Looking forward to the future with them.
Looking forward to the future with them.
On to slide 17.
Westwater is proud of the strong culture we.
<unk> built and our commitment to safety and ESG.
Every meeting at our company starts with the safety share we're committed to environmental stewardship and manufacturing practices, which are environmentally superior to a majority of the existing <unk> manufacturing process.
Every meeting at our company starts with a safety share. We're committed to environmental stewardship and manufacturing practices, which are environmentally superior to a majority of the existing CSPG manufacturing processes in the world. We have a proprietary system.
We have a proprietary graphite purification process.
Patent pending we're aiming for an industry, leading low carbon footprint, which we think customers will increasingly demand.
patent bending, and we're aiming for an industry-leading, low-carbon footprint, which we think customers will increasingly demand.
We are committed to being trustworthy stewards of our shareholders' company that developed a gender balanced board of directors.
We are committed to being trustworthy stewards of our shareholder's company that developed a gender-balanced board of directors made up entirely of men's career seat suite executives.
That's entirely a mid career C suite executives.
In closing this is an exciting time for Westwater resources and we appreciate your interest in our company.
In closing, this is an exciting time for West Water Resources, and we appreciate your interest in our company. Team and I will now take questions that you may have.
Team and I will now take questions that you may have operator back to you for questions. Thank you very much.
Thank you.
We will now begin the question and answer session.
Thank you. We will now begin the question and answer session.
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The first question comes from Debra <unk> with Crystal equity research.
The first question comes from Deborah Fyakis with Crystal Equity Research.
Please go ahead.
Thank you operator, and thank you gentlemen for taking my questions. I think most of them are numbers related so I'm, putting Jeff in the hot seat first I. Appreciate your disclosure that you've spent a $17 8 million out of the 202 million dollar budget for the <unk>.
Thank you, Operator, and thank you, gentlemen, for taking my questions. I think most of them are numbers related, so I'm putting Jeff in the hot seat first. I appreciate your disclosure that you've spent $17.8 million out of the $202 million budget for the graphite processing.
Grabbed by processing.
Plant project I also noted in your filing that you had added $17 1 million to construction in progress.
plant project. I also noted in your filing that you had added 17.1 million to construction and progress.
The balance sheet and I wanted to sort of get an idea of how we relate. The two is it is it going to turn it over like that as you go along.
to the balance sheet and I wanted to sort of get an idea of how we relate the two. Is it going to tat over like that as you go along in executing the two?
Executing on your budget.
Well, we see as our numbers are pretty much equal equal between what you've spent in construction and project progress.
will we see the numbers pretty much equal between what you've spent and construction and progress?
Hi, Deborah Deborah it's very good question.
Please go ahead.
This is Terence cryan Deborah I appreciate your question and I. Appreciate you joining us this morning, I'm actually going to.
Go ahead. This is parents crying, Deborah. Appreciate your question. Appreciate you joining us this morning. I'm actually going to direct this one and put the spotlight on Steve Gates.
Direct this one and put the spotlight on a suitcase.
Oh, okay.
Yeah.
Hi, Debra thanks for joining yes.
Those overtime will will line up I'm really the difference between the $17 one in the $17 eight incurred really had to do with some year end accruals that were already in CIP at 12, 31, mostly related to some of our engineering work as well as the build out of the administrative offices, which as Chad mentioned we.
Hi, Deborah. Thanks for joining. Yes, those over time will line up. Really, the difference between the 17.1 and the 17.8 incurred really had to do with some year-end accruals that were already in CIP at 12,000.
Completed in April of this year.
Okay, and then a follow up along those same lines. The the capital expenditures that were reported in the first quarter were $12 1 million and it can I assume or can we assume that that capital expenditure was principally part of this our construction in progress.
Okay. And then a follow-up along those same lines, the capital expenditures that were reported in the first quarter were 12.1 million. And can I assume or can we assume that that capital expenditure was principally part of this construction in progress and then therefore also a part of what you've worked off the project plan as well?
And then therefore also a part of what you've worked off the the project plan as well.
Yes, so the 12 point ones to your point that is all related to our killington processing facility and the construction and that's the actual cash spend the $17 eight is what we've incurred which includes amounts that remained unpaid at period end.
Yes, so that's 12.1 to your point. That is all related to our Kelly Tim process.
17.8 is what we've incurred, which includes amounts.
Got it got it and then an unrelated question I was wondering you have does the company held its annual meeting yesterday and I wondered if the results are now available can we know that everybody get elected already.
got it, got it. And then in an unrelated question, I was wondering, you had the company held its annual meeting yesterday, and I wondered if the results are now available, can we know, did everybody get elected or are you...
So Debra I'm happy to report that.
Yes, all of the resolutions on our plants he stayed in Paas and <unk>.
So Debra, I'm happy to report that
Yes, all of the resolutions on our proxy statement passed, and we will be filing it a 8K and a press release with those details today.
We will be filing an 8-K the press release with those details today.
And then the other proposals were accepted as well.
All proposals passed.
Okay and this is more of a forward question again, it is numbers related but I kind of wondered if.
Okay, and this is more of a forward question. Again, it is numbers related, but I kind of wondered if, as in the first quarter, we don't really see a whole lot of the construction project effects in the operating expenses. Can we kind of expect that to be the case going forward that the most of what is going on in that $202 million budget now with 17.8 if it worked off?
As in the first quarter, we don't really see a whole lot of the construction project effects in the operating expenses can we kind of expect that to be the case going forward that the most of what is going on in that $202 million budget. No was 17.8 of them and if it worked off.
We're really not going to see that at the operating line, that's mostly going to be.
that we're really not going to see that at the operating line. That's mostly going to be...
Going on in Capex and construction in progress.
Steve.
are going on in CapEx and construction and progress.
Yes separate you are you are correct.
The vast majority of substantially all of the two O. Two you will see them as Capex I'm running through our construction in progress line until we get through commissioning.
Yes, you are. You are correct. The vast, vast majority substantially all
Thank you I might have a couple more questions, but I'll Oh, let go for right now and allow someone else to two.
Thank you. I might have a couple more questions, but I'll go for right now and allow someone else to question you. Thank you.
Thank you.
Once again, if you have a question. Please press Star then one.
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Next question comes from David.
Stephen I don't mean with Edelman very capital piece.
The next question comes from David Idleman with Idleman Varret Capital.
Please go ahead.
Yeah.
Yes.
My question concerns the ATM I was surprised at how much the share count went up and I'm concerned.
Yes. My question concerned the ATM. I was surprised at how much the share count went up, and I'm concerned going forward that there will be too much dilution, especially with the stock at this price. And I wondered if you could comment on
Going forward that there will be too much dilution, especially with the stock at this price and I Wonder if you could comment on.
What the future plans are for selling shares.
Ah you know somewhere around this price and second of all how you plan to raise the extra funds to complete the plant once you.
what the future plans are for selling shares, you know, somewhere around this price, and second of all, how you plan to raise the extra funds to complete the plant once you
I'll go through the current cash.
On hand.
Thank you.
uh... go through the current cash on hand
Thank you David I appreciate you joining us today, Steve would you like to field that.
Thank you, David. Appreciate you joining us today. Steve, would you like to field that?
Yeah.
Oh sure Yeah.
David You know as we said in the prepared remarks that we have.
Sure, yeah. David, you know, as we said in the prepared remarks that we have engaged in the process of identifying alternative and
Are engaged in the process of identifying alternative and additional sources of capital and our focus is on obtaining the lowest cost of capital that is available to us and so we are in the middle of that process.
of capital and our focus is on a painting the lowest cost of capital that is available to us and so we are in the middle.
Having discussions with the type of Counterparties, one would expect as part of that and hope to be able to update more as we progress through that rigor.
having discussions with the type of counter parties one would expect.
part of that, and hope to be able to update more as we progress
Regarding the ATM sales in the current period.
Did provide as <unk>.
regarding the ATM sales in the current period, you know, it did provide.
Just said the ability to raise some funds at a low cost of capital.
just the ability to raise some funds at a low cost of capital.
<unk>.
It is as you know that recently the fed chair had raised some rates about half a point and so there was an opportunity there to.
And as you know that recently the Fed chair had raised some rates, about half a point. And so there was an opportunity there to.
He'd diligent and raised some additional funds at a low cost, but again we are interested.
diligent and raise some additional funds at a low cost but again we are interested in seeking additional additional funds at a low cost.
And seeking additional sources of low cost capital, but have nothing more to report at this time.
Whenever you can't comment on whether you would continue to sell <unk>.
Shares at or near the current price.
In other words, you can't comment on whether you would continue to sell shares near the current
Okay.
Hum.
All I can really reiterated that were in process of seeking additional low cost capital.
You know I.
All I can really reiterate is that we're in process of seeking additional low-cost capital. You know, I don't...
I don't.
We have to get through this process of identifying and and and and seeking out additional financing and so right now I can't say, whether or not we would or would not be there available to us, but we are highly interested in identifying those other forms of low cost capital.
that additional financing and so right now I can't say whether or not we would or would not be they're available to us but we are highly interested.
Okay could you comment on what some of those could possibly be.
Okay, could you comment on what some of those could possibly be?
Sure I think you know with our balance sheet with $116 million of cash and no debt.
Sure, I think with our balance sheet with $116 million of cash and no debt, it does provide
It does provide an opportunity we believe in some optionality to not only move the project forward to continue to make our cash investment.
opportunity, we believe, and some optionality to not only move the project forward and continue to make a cash increase.
But look at something that's maybe a little more along the lines of traditional project debt financing.
but look at something that's maybe more along the lines of traditional.
As Chad mentioned in the prepared remarks, there's a funding opportunity announcement, which allocates $3 $1 billion of.
As Chad mentioned in the prepared remarks, there's the funding opportunity announcement which allocates 3.1 billion dollars.
Grants to increase battery production capabilities in the U S and you know we are.
increased battery production capabilities in the U.S., and, you know, we are
We are closely monitoring those and looking at those types of facilities or programs to determine what benefit if any there is the westwater and its shareholders and ER.
We are closely monitoring those and looking at those types
or programs to determine what benefit, if any, there is to West Water and its shareholders.
Whether we'd be able to participate in those.
I see.
Thank you.
This concludes our question and answer session.
I would like to turn the conference back over to Chad Potter for any closing remarks.
And this concludes the question and answer session.
I would like to turn the conference back over to Chad Potter for any closing remarks.
Okay.
Thank you Sherry.
I'd like to first thank all of our teammates for their continued focused on safety and the environment.
I'd like to first thank all of our teammates for their continued focus on safety and the environment.
Also I'd like to thank all those of you who are listening and your interest in Westwater resources.
Also, I'd like to thank all those of you who are listening and you're interested in West Water Resources. Thank you all and have a great day.
Thank you all and have a great day.
This concludes today's conference call.
You may disconnect your lines.
Thank you for participating and have a pleasant day.
Okay.
Yeah.
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Yeah.
Yeah.
Yeah.
Yeah.
Yeah.
Yeah.
[music].
Hum.
Hum.
Hmm.