Q2 2023 Centrus Energy Corp Earnings Call

August 4, 2023

[music].

Greetings and welcome to <unk> Energy's second quarter 2023 earnings call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation if any.

Speaker 1: Greetings and welcome to Centris Energy's second quarter 2023 earnings call. At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero

One should require operator assistance during the conference. Please press star zero on your telephone keypad. As a reminder, this conference is being recorded it is now my pleasure to introduce your host John <unk> Vice President Corporate communications. Thank you. Mr. <unk> you may begin.

Speaker 2: Good morning. Thanks for joining us. Today's call will cover the results for the second quarter of 2023, ended June 30. Today we have Dan Poneman, President and Chief Executive Officer, Philip Strawbridge, Chief Financial Officer, and Kevin Harrell, Controller and Chief Accounting Officer.

Good morning, Thanks for joining us today's call will cover the results for the second quarter of 2023 ended June 30th today, we have Dan <unk>, President and Chief Executive Officer, Philip Strawbridge, Chief Financial Officer, and Kevin Harold Controller, and Chief Accounting Officer.

Speaker 2: Before turning the call over to Dan Pahneman, I'd like to welcome all of our callers, as well as those listening to our webcast. This conference call follows our earnings news release issued yesterday. We expect to file a report for the second quarter of 2023 on form 10Q later today. All of our news releases, the SEC fileings, including our 10K, 10Qs, and 8Ks are available on our website. The replay of this call will also be available later this morning on the central website.

Before turning the call over to Dan Pondimin I'd like to welcome all of our callers as well as those listening to a webcast of this conference call follows our earnings news release issued yesterday, we expect to file a report for the second quarter of 2023 on Form 10-Q later today all of our news releases and SEC filings, including our 10-K 10-Qs and.

Eight days are available on our website a replay of this call will also be available later this morning on the central website.

Speaker 2: I'd like to remind everyone that certain information we may discuss on this call may be considered forward-looking information that involves risk and uncertainty, including assumptions about the future performance of Centris. Our actual results may differ materially from those in our forward-looking statement.

I'd like to remind everyone that certain information we may discuss on this call maybe considered forward looking information that involves risk and uncertainty, including assumptions about the future performance of Suntrust. Our actual results may differ materially from those in our forward looking statements.

Speaker 2: Additional information concerning factors that could cause actual results to materially differ from those in our forward-looking statement. This contains the balance with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q .

Additional information concerning factors that could cause actual results to material materially differ from those in our forward looking statements can be filings with the SEC, including our annual report on Form 10-K, and quarterly reports on Form 10-Q.

Speaker 2: Finally, the forward-looking information provided today is time-sensitive and accurate only as of today, August 4, 2023, unless otherwise noted.

Finally, the forward looking information provided today is time sensitive and accurate only as of today August four 2023, unless otherwise noted.

Speaker 2: This call is a property of Centris Energy. Any transcription, redistribution, retransmission, or rebroadcast of the call in any form without the express written consent to Centris is strictly prohibited. Thanks for your participation. I'll now turn the call over to Dan Poneman. Thank you, Dan.

This call is the property of central synergy any transcription redistribution retransmission or rebroadcast of the call in any form without the express written consent Sentras is strictly prohibited.

For your participation I'll now turn the call over to Dan Paterson.

Thank you Dan and thank you to everyone on the call today.

Speaker 3: This was another strong, productive, and profitable quarter for Centris, booking $12.7 million in net income and $98.4 million in revenue.

This was another strong productive and profitable quarter for centers booking $12 7 million and net income and $98 $4 million in revenue.

This includes $39 $5 million in uranium sales driven by the continued rise in natural uranium prices as global supply remains constrained.

Speaker 3: This includes $39.5 million in uranium sales, driven by the continued rise in natural uranium prices as global supply remains.

Speaker 3: So far this year we've delivered 146.4 million dollars worth of enrichment and natural uranium in our LEU segment.

So far this year, we've delivered $146 $4 million worth of enrichment and natural uranium and our <unk> segment.

While continuing to refill our pipeline with new orders, thus maintaining the value of our order book at $1 billion through 2030.

Speaker 3: while continuing to refill our pipeline with new orders, thus maintaining the value of our order book at $1 billion through 2030.

Speaker 3: We are building momentum toward pioneering the Halo market and delivering a secure, reliable, domestic source that will meet the needs of industry as well as the U.S. government.

We are building momentum towards pioneering the haynesville market and delivering a secure reliable domestic source that will meet the needs of industry as well as the U S government.

Speaker 3: After completing construction of our demonstration cascade of centrifuges, as well as our operational readiness reviews, in June we secured final approval from the Nuclear Regulatory Commission to begin receiving uranium at our site and loading it into the cascade.

After completing construction of our demonstration cascade of centrifuges as well as our operational readiness reviews in June we secured final approval from the nuclear regulatory commission to begin receiving uranium at our site and loading it into the Cascade.

We are now, finishing some final testing activities and expect to begin production and meet our contractual obligation to make 20 kilograms of high assay low enriched uranium or halo by the end of this year. This will be the first U S. O U S technology enrichment plant to begin production in <unk>.

Speaker 3: We are now finishing some final testing activities and expect to begin production and meet our contractual obligation to make 20 kilograms of high-assay, low-enriched uranium, or HALU, by the end of this year.

Speaker 3: This will be the first US-owned US technology and Richmond plant to the game production in 70 years.

70 years.

Speaker 3: What a fitting way to commemorate the 70th anniversary of President Eisenhower's Adams for Peace speech before the United Nations.

Any way to commemorate the 70 <unk> anniversary of President Eisenhower's Adams for peace speech before the United Nation, which set the United States on the path towards global leadership in the responsible deployment of nuclear energy for the benefit of humanity.

Speaker 3: which sets the United States on the path toward global leadership in the responsible deployment of nuclear energy for the benefit of humanity.

Speaker 3: a path that the pipeline plant can help restore.

The pipestone plant can help restore.

Once we complete production of the first 20 kilograms of Halo, we will progress to phase two of our contract a full year of production at the annual rate of <unk>.

Speaker 3: Once we complete production of the first 20 kilograms of halo, we will progress to phase two of our contract, a full year of production at the annual rate of 900 kilograms of halo per year.

900 kilograms of Haywood per year.

Speaker 3: While phase one of the contract requires a 50-50 cost share, starting in phase two, the Department of Energy will pay the full cost of production, plus an incentive fee, in exchange for the output of the cascade. So the US government will become our first customer. Indeed, it is our hope and expectation that this will be the first of many customers for this powerful fuel, three tablespoons of which could support one person's electricity needs for life, all while emitting.

Well phase one of the contract requires a 50 50 cost here starting in phase III.

The department of energy will pay the full cost of production plus an incentive fee in exchange for the output of the Cascade. So the U S government will become our first customer indeed, it is our hope and expectation that this will be the first of many customers for this powerful fuel three tablespoons of which could support one persons.

Electricity needs for life.

All while meeting no carpet.

Speaker 3: Subject to the availability of appropriation, the contract also gives the department the option to purchase up to nine additional production years from now.

Subject to the availability of appropriation. The contracts also give the department of the option to purchase up to nine additional production years from the Cascade.

Speaker 3: While the output of the demonstration cascade will be modest, it is urgently needed. The Department of Energy has made a multi-billion dollar commitment to nine different halo fuel reactor designs and critically needs the halo to support reactor demonstrations and fuel qualification for those reactors.

While the output of the demonstration Cascade will be modest it is urgently needed.

The department of Energy has made a multibillion dollar commitment to nine different <unk>.

Fuel reactor design and critically need the halo to support reactor demonstration and fuel qualification for those reactors. The overall need for Halo, even for just the first round of demonstration reactors significantly exceeds what we can produce from the demonstration cascade. So a great deal more.

Speaker 3: The overall need for halo, even for just the first round of demonstration reactors, significantly exceeds what we can produce from the demonstration cascade. So a great deal more capacity will be needed and soon.

He will be needed and soon.

Speaker 3: In June , the Department of Energy issued a draft request for proposals outlining a program to purchase up to 145,000 kilograms of halo over a 10-year period. Fully implementing this program would require significantly more money than Congress has thus far appropriated, but the Inflation Reduction Act signed last year included an important $700 million down payment on that effort.

In June the Department of Energy issued a draft request for proposals outlining a program to purchase up to 145000 kilograms of Halo over a 10 year period.

Fully implementing this program would require significantly more money then Congress has thus far are appropriate but the inflation reduction Act signed last year included an important $700 million downpayment on that effort.

Speaker 3: We look forward to applying whenever that RFP is issued.

We look forward to apply whenever that RFP is issued and.

Speaker 3: And we believe that we have a compelling case to make since we have the only site in the United States licensed for halo production and can expand halo production quickly.

And we believe that we have a compelling case to make since we have the only site in the United States licensed Jorge Lu production and can't expand Haywood production quickly.

Speaker 3: A commercial scale cascade with 120 centrifuges can produce about 6 metric tons per year. We can place the first online within 42 months of securing funding and can deploy an additional halo cascade every 6 months after that. We have not seen any faster timetable in the industry and speed is a crucial factor here since reactor developers need significant quantities of halo in the next few years.

A commercial scale Cascade with 120 centrifuges can produce about six metric tons per year.

We can place the first online within 42 months of securing funding and can deploy and additional haywood Cascade every six months after that we have not seen any faster timetable in the history in the industry.

And speed is a crucial factor here since reactor developers need significant quantities of Halo in the next few years.

We have consistently said that establishing a domestic he was supply chain will require a public private partnership and we are doing our part just last month, we took an important step towards securing additional private sector support for a potential expansion of Haywood production as many of you know.

Speaker 3: We have consistently said that establishing a domestic halo supply chain will require a public-private partnership, and we are doing our part. Just last month, we took an important step toward securing additional private sector support for a potential expansion of halo production. As many of you know, on July 17th, Centris and Terrapower, a leading nuclear innovation company founded by Bill Gates.

On July 17th Sentras in Terrapower, a leading nuclear innovation company founded by Bill Gates.

Yeah.

[noise] announced.

Speaker 3: that we have signed an MOU to accelerate joint efforts to create domestic commercial scale of hallowed production.

We have signed an mou to accelerate joint efforts to create domestic commercial scale Haywood production.

Speaker 3: With support from the Department of Energy, Tera Power is building a commercial scale Natrium reactor in Kemeru, Wyoming. Under this MOU, our two companies are evaluating how to expand our capacity in Python so that we can deliver Halo in the quantities and on the timeline necessary to support the 2030 operation date for the Natrium reactor. With that, let me turn things over to Phillip, who will go into more detail about our numbers for the quarter.

With support from the Department of Energy Terrapower is building a commercial scale nature of a reactor in kemmerer Wyoming.

Under this Mou our two companies are evaluating how to expand our capacity in pipe. So that we can deliver halo and the quantities and all the timeline necessary to support the 23 operation date for the Natrium reactor with that let me turn things over to Filip, who will go into more detail about our number.

For the quarter.

Thank you Dan good morning, everyone.

Speaker 3: Thank you, Dan. Good morning, everyone. As discussed before, we've experienced variability in our quarter results due to when clients take their deliveries. Last year, for example, we had gross profit in all four quarters, but more than 90% of that came in the second and fourth quarters.

As discussed before we experienced variability in our quarterly results due to win clients take their deliveries last year. For example, we had a gross profit in all four quarters, but more than 90% of that came in in the second and fourth quarters.

Speaker 3: The vast majority of our LEU contracts are multi-year contracts. Our customers have a purchase obligation on an annual basis, not quarterly basis.

Vast majority of our <unk> contracts are multiyear contracts our customers have a purchase obligation on the annual basis, not a quarterly basis, they choose which quarter to take delivery.

Speaker 3: They choose which quarter to take delivery. And we booked the revenue and cost of sales in that quarter, which often varies from year to year. But matters for us is that our annual performance, not quarterly performance is good.

We book the revenue and cost of sales in that quarter, which also often varies from year to year.

What matters for us is that our annual performance.

Not quarterly performance is good.

Speaker 3: That said, we had a strong second quarter. Our total revenue was 98.4 million in line with the 99.1 we generated in the same quarter last year. In the LAU's segment, we generated 87.6 million in the second quarter revenue against the cost of sales. In the last quarter, we generated 87.6 million in the same quarter last year.

That said, we had a strong second quarter.

Total revenue was $98 4 million in line with the $99. One we generated in the same quarter last year.

And the yellow use segment, we generated $87 6 million in the second quarter revenue.

Cost of sales.

Of 68 billion, earning a gross profit of $26 eight for the segment.

Speaker 3: of $60.8 billion, earning a gross profit of $26.8 for the second.

Speaker 3: As mentioned before, the specific contract in pricing mix of swoop contracts and the time unit customers' deliveries change from quarter to quarter. This, along with the increase in uranium sales, impacted our margin for that quarter.

As mentioned before the specific contract and pricing mix of swap contracts and the timing of a customer's leary's changed from quarter to quarter. This along with an increase in uranium sales impacted our margin for that quarter.

And our citrus technical solutions segment.

Speaker 3: In our Centrist Technical Solutions segment, which includes our contract with the Department of Energy, to build and demonstrate halo production, as well as a variety of other contract work for public and private sector customers, we generated 10.8 million in revenue against cost of sales of 9.6 for the quarter, resulting in gross profit of 1.2 million for that segment.

Which includes our contract with the department of energy to build and demonstrate halo production as well as a variety of other contract work for public and private sector customers, we generated $10 8 million in revenue against cost of sales of $9 six for the quarter, resulting in gross profit of $1 2 million for that segment.

We have also been making good progress towards strengthening your balance sheet. So that we will be well positioned to make investments in our future expanding our cash balance to $245 million, which includes $32 5 billion of restricted cash for financial assurance.

Speaker 3: We have also been making good progress towards strengthening our balance sheet so that we will be well positioned to make investments in our future, expanding our cash balance to $245 million, which includes $32.5 million of restricted cash for financial assurance.

Speaker 3: Our cash and cash equivalence balance has increased by 23.7 million since last quarter in 32.6 million since the end of last year. As Dan mentioned, as of...

Our cash and cash equivalents balance has increased by $23 7 million since last quarter and $32 6 million since the end of last year.

As Dan mentioned as of June 30.

Speaker 3: Our LEU order book is valued at approximately $1 billion through the end of the decade. And remember, the billion dollars is just for the LEU segment of our business. It does not include our work on Halo or other contracts that we have in our technical solutions segment. With that, I'll turn it back over to Dan.

Our <unk> order book is valued at approximately $1 billion through the end of the decade and remember the $1 billion is just for the <unk> segment of our business. It does not include or work on halo or other contracts that we have in our technical solutions segment with that I'll turn it back over to Dan.

Thank you Phil.

This year 2023 is the euro decision. There is now broad consensus that restoring a domestic uranium enrichment capability is vital to America's national interests to our national security.

Speaker 3: This year, 2023 is the year of decision. There's now broad consensus that restoring a domestic uranium enrichment capability is vital to America's national-

Speaker 3: to our national security, our energy security, our climate objectives, our clean energy needs, our supply chain resilience, to the health of the American economy, and to creating good family supporting jobs.

Our energy security.

Climate objectives, our clean energy needs are supply chain resilience to the health of the American economy and to creating good family supporting jobs.

That recognition was already present and reflected last year when Congress appropriated seven.

Speaker 3: That recognition was already present and reflected last year when Congress appropriated it.

Speaker 3: $700 million in the inflation reduction act as a down payment on establishing a domestic K-loos supply chain. Even at that time, it was widely recognized that additional federal investments would be required. And that momentum has carried into this year, despite the fact that some people say it's impossible to find consensus in Washington anymore, turns out that the urge is need to restore America's domestic uranium and richman capability is one area of fraud by partisan agreement.

$700 million and the inflation reduction act as a down payment on establishing a domestic he was supply chain even at that time. It was widely recognized that additional federal investments would be required.

And that momentum has carried into this year. Despite the fact that some people say, it's impossible to find consensus in Washington anymore. It turns out that the urgent need to restore America's domestic uranium enrichment capability is one area.

Rod bipartisan agreement in recent weeks Republicans and Democrats in both the house and the Senate have advanced proposals to make a major federal investment to rebuild America's nuclear fuel supply chain, including low enriched uranium as well as heyward.

Speaker 3: in recent weeks, Republicans and Democrats in both the House and the Senate have advanced proposals to make a major federal investment to rebuild America's nuclear fuel supply chain, including low-enriched uranium as well as halos.

New appropriations for enrichment have pass through committee in both houses of Congress.

Speaker 3: New appropriations for enrichment have passed through committee in both houses of Congress. The Senate Energy and Water Appropriations Bill includes $800 million. The House version has $2.4 billion. There's still a lot of work to be done to get those bills passed. Reconciled was one another and sent to the President. But this is the strongest bipartisan support we've seen for an investment in America's enrichment capacity in decades.

Senate energy and water Appropriations Bill includes $800 million. The house version has $2 $4 billion, there's still a lot of work to be done to get those bills passed reconciled with one another and sent to the president but this is the strongest bipartisan support we've seen foreign investment in Americas and <unk>.

From capacity in decades.

Speaker 3: Meanwhile, in late July , the Senate approved an amendment from Senators Barrasso, Manchin, and Risch to the National Defense Authorization Act that authorizes and directs the Secretary of Energy to jumpstart construction of new domestic enrichment by purchasing significant quantities of low-rich drains and halo.

Meanwhile, in late July the Senate approved an amendment from Senators Barosso mansion, and rich to the National Defense Authorization Act that authorizes and direct the secretary of energy to jumpstart construction of new domestic enrichment by purchasing significant quantities of low enriched uranium.

And Hey, Lloyd.

Speaker 3: Because the NDA is considered must pass legislation, it's difficult to see hundreds of amendments get proposed, but only a handful make it through. This year was no different, with over 900 amendments introduced.

Because the NDAA has considered must pass legislation, it's typical to see hundreds of amendments get proposed but only a handful make it through this year was no different with over 900 amendments introduced the amendment authorizing investment in uranium enrichment was one of only eight there were adopted.

Speaker 3: The amendment authorizing investment in uranium enrichment was one of only eight that were adopted by individual votes and it passed by an overwhelming margin of 96 to 3.

By individual boats and it passed by an overwhelming margin of 96 to three.

Speaker 3: This was a historic vote. Worthy of the legacy of President Eisenhower's Adams for Peace Initiative and the potential game changer for our end.

This was a historic vote worthy of the legacy of President Eisenhower's Adams for peace initiatives and a potential game changer for our industry IMAX.

Speaker 3: I am extraordinarily grateful to members of the House and the Senate in both parties who have come together to address the urgent energy security and national security issues at stake here. The time to restore America's domestic uranium enrichment capacity is now, and we are determined to do our part to make it happen.

I am extraordinarily grateful to members of the house and the Senate in both parties, who have come together to address the urgent energy security and national security issues at stake here.

Time to restore America's domestic uranium enrichment capacity is now and we are determined to do our part to make it happen.

I also want to thank all of our investors, who are supporting us and half for so long in this historic and important work.

Speaker 3: I also want to thank all of our investors who are supporting us and have for so long in this historic and important work.

Finally on a personal note I want to thank our outstanding CFO and senior Vice President Philip Strawbridge, who after doing an incredible job at centers for nearly four years has decided to retire as of December 31. This is a bittersweet moment for while we are happy and grateful for the great work Philip has done.

Speaker 3: Finally, on a personal note, I want to thank our outstanding CFO and senior vice president Phil Strawbridge, who after doing an incredible job at centers for nearly four years, has decided to retire as of December 31. This is a bittersweet moment for while we are happy and grateful for the great work Philip has done advancing the mission of this company and the interests of our shareholders, we will surely miss his leadership and wise counsel.

<unk> advancing the mission of this company and the interest of our shareholders. We will certainly Miss his leadership and wise counsel.

Speaker 3: Fortunately, in Kevin Harrell, the company has found a worthy successor to Philip, and as Chief Accounting Officer for the past two years, Kevin has also done a terrific job in all matters of substance, as well as managing an accurate and efficient reporting process which our shareholders have come to appreciate with the filing of each of our quarterly and annual earnings reports.

Fortunately and Kevan Herold the company has filed a worthy successor to Philip and his chief accounting officer for the past two years. Kevin has also done a terrific job in all matters of substance as well as managing an accurate and efficient reporting process, which our shareholders have come to appreciate with the filing of each of our quarterly and annual.

Earnings reports.

Speaker 3: Kevin will take over the role and see a follow effect of September 1st and Philip will step into the role as an advisor to me and to the board of directors until his final retirement in December to ensure a smooth transition. All of us at Centros join me in expressing our sincere gratitude to Philip and wish him enjoyment and success as he raises next chapter. And with that, we'll take your questions.

Kevin will take over the role as CFO effective September one and Philip will step into the role as an advisor to me and to the board of directors until its final retirement in December to ensure a smooth transition all of US at centers join me in expressing our sincere gratitude to Philip and wish him enjoyment and success as he writes is next.

And with that we'll take your questions.

Greater.

Speaker 1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star one on your telephone key man. Confirmation tone will indicate your line is in the question queue. You may press star one on your telephone key man.

Thank you Yuval.

Now be conducting a question and answer session.

If you would like to ask a question. Please press star one on your telephone keypad.

Information tone will indicate your line is in the question queue.

They start to if you would like to move your questions from the queue.

For participants using speaker equipment it.

It may be necessary to pick up your handset before pressing the star.

One moment please poll for questions.

The first question comes from the line of.

Speaker 1: first question comes from the line of Rob Brown with Lakesphere Capital Markets.

The problem with Lake Street capital markets.

Please go ahead.

Yeah.

Good morning.

Morning.

Rob.

Speaker 4: Just wanted to clarify on the DOE draft proposal, what sort of the draft RFP, what sort of the timeline and getting the next steps there, and you see at this point, and then in general, what's sort of the kind of methodology that DOE is starting to coalesce around?

Just wanted to clarify on the on the Doa draft proposal, what's what's sort of.

The draft RFP, what sort of timeline on getting the next steps there and you see at this point and then in general what's sort of the kind of methodologies that are starting to coalesce around in terms of the support of these sort of commitments to buy our biomaterials where are they capital commitments upfront or how is it sort of shaking out at this point.

Speaker 4: of these sort of commitments to buy materials or are they capital commitments up front or how is it sort of...

Rob.

Speaker 3: Rob is always the great question, but I'm pretty consistent not speaking on behalf of the US government because I'm not part of it anymore. I would just say that in terms of the timeline, everyone is very aware of the requirement.

As always it's a great question, but I'm pretty consistent not speaking on behalf of the U S government because I'm not part of it anymore I would just say that in terms of the timeline everyone is very aware of the requirements.

Speaker 3: in the Energy Act of 2020 to have HALO available for the use of these advanced reactors. Those reactors are supposed to begin operations later this year, so people have been looking at 2026, 2027.

The Energy Act of 2020 to have available.

For the use of these advanced reactors those reactors are supposed to begin operations. Later this year. So people are looking at 2020 six 'twenty seven.

Speaker 3: But in terms of the actual process, as you know, they issued this draft RFP, I think it was around June 6th.

But in terms of the actual process as you know they issued the draft RFP I think it was around June 6th we had to get our common center on July 6th typically they take some time to go over the comments my understanding is that there were a lot of robust comments the structure of the program Rob I think remains in.

Speaker 3: We had to get our comments in around July 6th. Typically they take some time to go over the comments, my understanding is that there were a lot of robust comments. The structure of the program, where all I think, remains.

Speaker 3: In question, there is, if you looked at the RFP, a number of considerations in terms of that burden will fall on the shoulder of the contractor.

And question there is.

If you looked at the RFP.

I'm broke considerations in terms of what burden will fall on the shoulders of the contractor the.

Speaker 3: decision by the department to buy the end product or to buy just the separate work component and the HALU aspect of it, not the LEP type. There's a number of issues that are, I think, being reviewed and studied. And we're eager to see that come out, but I would not be able with confidence to predict when the department will act. Because that's ultimately up to them.

Decision by the department to by the end product or to buy just the separative work component and the Halo aspect of it is not the EWC side. There's a number of issues that are I think being reviewed at study and we are eager to see that come out, but I would not be able to with confidence to predict when when the department will.

Act, because that's ultimately up to that.

Okay. Yeah. Thank you for the color and I understand it's hard to predict.

Speaker 4: Okay, yeah, thank you for the color and I understand it's hard to predict the sort of government status. But on the current contact you have is Phase 2, where are you at in terms of capacity to fulfill that 100 kilograms per year? Can you do that with?

Government steps, but on.

On the on the current contract do you have your phase two.

Where are you at in terms of capacity to fulfill that 900 kilograms per year can you do that with what you've got or do you need to add capacity there.

Speaker 3: No, we can do that. The way it breaks down basically this first phase, phase one, this very modest 20 kilogram production, that's basically to show that it works. And of course the significant thing about that is that is the only portion of this contract that is cost shared.

No we can do that the way it breaks down basically this first phase phase one that's very modest 20 kilogram.

Production, that's basically to show that it works right and of course, the significant thing about that is that is the only portion of this contract is cost share. So once we're past phase one into phase two and 16 machine R&D sufficient Rob to produce 900 <unk> that are pledged under that contract then.

Speaker 3: So once we're past phase one and it's phase two and the 16 machines are indeed sufficient for all to produce the 900 KGU that are pledged under that contract, then those will operate and they can produce that quantum in that amount of time. Obviously as I said in my remarks, our ambition is to make a lot more and for that we will in fact need to expand and it's our hope that we're going to.

Those will operate and they can produce that quantum in in that amount of time, obviously is as I said in my remarks, our ambition is to make a lot more and for that we will affect me to expand and it's our hope that were going to do that and to put out.

Speaker 3: put out these additional trotches that come out in chunks of like 120 machines each and each one of those cascades can in turn bruise 6.

These additional tranches that come in.

And a chunk of it like a 120 machines each and each one of those can't escape can in turn produce six metric tons and per year and therefore.

Speaker 3: and per year. And therefore, that's assuming 4.95% feed stock. They're holding 42 months. If you add a one ton, it's actually with 900 kilograms drops of a ton, plus six tons, that would be seven tons, and then we could put another cascade on another 120 machines and reach six months thereafter. So within 48 months, just on the new bill, we could have effectively 12 metric tons of capacity.

That's assuming port where 95% feedstock. Therefore was in 42 months. If you add the onetime effectively 900 kilogram dropped to a ton plus six times 77 times and then put another cascade on another 120 machines and reached six months thereafter, so within 48 months.

On the Newbuild, we could have effectively 12 metric tons of capacity introduction.

Speaker 1: Thank you. Next question comes on the line of Josef Rieger with the Rot M-

Thank you next question comes from the line of.

Joseph Reagor with Roth.

Please go ahead.

Speaker 5: Hey Dan and Phil and team, thanks for taking the questions. Hey Joe, good morning.

Hey, Dan and Phil and team. Thanks for taking my questions Hey, Joe Good morning.

Morning.

So.

Speaker 5: Question on how you guys are handling filling out the water book in like the out years.

A question on how you guys are handling filling out the order book and like the out years.

With the possibility that the.

Speaker 5: with the possibility that the US government, some fast, it eventually bans.

U S government and some facet eventually bands.

Speaker 5: purchase of enriched or unenriched uranium out of Russia, you know, how do you in the utilities, you know, I guess, look at longer term contract signing? Is there a finite time you're sticking within, you know, are you guys signing beyond that but with

The purchase of enrich store, an enriched uranium out of Russia.

How do you and the utilities I guess look at longer term contract signing is there a finite time, you're sticking within you know where you guys signing beyond that but with yeah.

Speaker 5: that if something happens there, the contract is avoided. You know, like, what do you guys?

The caveat that if something happens there that the contract is voided you know like what are you guys do there.

Speaker 3: Well, Joe, of course, you can't get into specific contract terms on the one hand. On the other hand, the first thing that must be said is there is a universal recognition that

Well.

Joe of course, you can't get into specific contract.

On one hand on the other end of the first thing that must be said is there was a universal recognition.

<unk>.

Speaker 3: Given that Russia accounts for 46% of the world's install base.

Given that Russia accounts for 46% of the world's installed base.

Speaker 3: that it is an urgent priority, an urgent priority to build new capacity. So the first thing people are doing is looking at how to get more capacity. That's why this whole legislative effort is so important and so intense, frankly. And everyone also recognizes that it will take five or six years to put new capacity into the field. Secondly, we are, like everyone else is, and we have been for a long time even before the crisis in Ukraine, always looking for a variety of ways to...

It is an urgent priority an urgent priority to build new capacity. So the first thing people are doing is looking at how to get more capacity. That's why this whole legislative effort is so important and so intense frankly.

Everyone also recognizes that it'll take five or six years to put new capacity into the field. Secondly, we are like everyone else is and we have been for a long time, even before the crisis in Ukraine always looked for a variety of ways to.

Speaker 3: diversify our source of supply, but frankly, you know, those sources are limited and without.

Diversify our sources of supply, but frankly those.

Those sources are limited and without.

Speaker 3: Russia is a pressure word that not any longer to be participating or participating at the same level It will put obviously extreme pressure on those

Russia is Russia, where in fact, not any longer to be participating approaches. They at the same level you will put obviously extreme pressure on those on those supply so.

Speaker 3: on those supplies. So we're continuing to look at ways to get product and market from a combination of sources that we have long-term contracts on the sources that we've found around the market and of course we're very focused like a laser beam. I'm putting additional productive capacity in.

We're continuing to look at ways to get.

Product to market from a combination of sources that we have a long.

Long term contracts other sources.

Found around the market and of course, we're very focused like a laser beam on putting additional productive capacity into the market.

Speaker 5: Okay, fair enough. And then on the uranium cells in the quarter, traditionally, your I-Geranium cells have had, let's call it, low single digit margins. d

Okay Fair enough and then.

On the uranium sales in the quarter.

Traditionally you guys uranium sales have had a let's call it low single digit margins.

You know for it from let's call it the 20 questions back and forth.

Speaker 5: call it the 20 questions back and forth with you in the investment community.

The investment community.

Was there any higher margin on this sale because of the you know the <unk>.

Speaker 5: Was there any higher margin on this sale because of the size of it in the higher uranium prices? Or was it still in that lower single digits?

<unk> of it in the higher uranium.

Or you.

Or is it still in that.

Lower single digit range.

Speaker 3: Yeah, so you hear exactly right Joe. I mean, we did it. Have you read himself from a from a margin perspective? It was slightly more, but remember this uranium that's our main business is a byproduct of a selling swoop. And so what we do is when we sell it, we sell it at market market, we're going up slightly. But what we show is, you know, that minimal margin, but it's because it's a byproduct of swoop.

Well, yes soup.

So you're exactly right Joe I mean, we did have good iridium so from a from a margin perspective, it was slightly more but remember this uranium that's not our main business is a byproduct of us selling swoop.

And so what we do is when we sell it we sell it as market market was going up slightly.

But what we show is minimal margin because it's a byproduct goes smooth.

Yeah.

Speaker 1: Thank you. Next question comes from the line of Richard Fels.

Thank you.

Next question comes from the line of Richard Defense.

Please go ahead.

Speaker 4: Good morning. Good morning. Thank you. Sorry, thank you. Obviously, everyone is happy that the trend of where a centrist is going. I have two questions.

Good morning, Good morning, David.

Thank you obviously, everyone is happy that the the <unk>.

<unk> of where Suntrust is going I have two questions.

Speaker 4: And I'll tell you what they are, and then you can choose how to answer them. The first one is, what difficulties are you having or incurring in maintaining or acquiring professional research staff to...

And I'll tell you what they are and then you can choose how to answer them. The first one is what difficulties are you, having or incurring in maintaining or acquiring.

Professional.

Research staff.

To.

To do this work.

Speaker 4: And secondly, with roughly 180, $190 million of cash, where would I find the interest that you're earning on that? I'm assuming, and maybe you care to discuss it, I'm assuming you're buying just short-term US Treasuries, but that should add another $8 to $10 million a year.

And secondly.

With roughly $180 million to $190 million of cash.

Where would I find the interest that you're earning on that I'm, assuming and maybe you <unk>.

Care to discuss it in the Scoop, assuming you are buying just the short term U S treasuries, but that should add another $8 million to $10 million a year.

Speaker 4: of interest. And so those are the two questions I have.

Of interest and so those are the two questions I have.

Speaker 6: Okay, I will take the first and I will let Philip take the second. We don't actually have research staff per se and we don't need it for if I'm understanding the question correctly. We have an incredibly capable engineering staff, we have incredible operators, we have marketing people and we do certainly in the marketing department do state abreast of market research.

Okay, I will take the first and I will let Phil take the second.

We don't actually have research staff per se and we don't need it.

If I'm understanding the question correctly, we have an incredibly capable engineering staff, we havent been incredible operators, we have marketing people.

And we do certainly in our people in the marketing Department do stay abreast of market research, but we're not a research organization per se I would say, we're more a consumer than a producer of research and we just.

Speaker 3: But we're not a research organization per se. I would say we're more a consumer than a producer of research.

Speaker 3: And we just are focused on.

Our focused on doing the business and both in the <unk> segment buying and selling material and in the technical solutions segment getting our technology deployed.

Speaker 3: doing the business and both in the LEU segment, buying and selling material, and in this technical solutions segment, getting our technology deployed.

Speaker 3: and then obviously supporting the whole business getting the things financed. So we, as I say, we are not really research organization with more in operation.

Expanded.

Then obviously supporting a whole business getting the same finance so.

We are.

As I say, we are not really research organization were warrant operational organization. So if you take the other interest first of all we have.

Speaker 3: organization. So, did you take the other? Yeah, on the interest. First of all, we have a low number 200 million under balance sheet and you know, we're very conservative in what we invest in. I'm gonna let Kevin Harrell.

A little over $200 million on our balance sheet and we were.

Conservative in what we invest in a little let kevan herold.

Speaker 3: talk about that. Kevin, you talk about where it's at. Yeah, absolutely. Thank you, fellas.

About that Kevin talked about worth it yeah, absolutely. Thank you Phil.

Speaker 3: In the materials that we distributed as part of the press release on the income statement, if you go to the line item investment income, we've actually recorded 2.2 million for the three months ended June 30 and 4.1.

And in the materials that were distributed as part of the press release on the income statement. If you go to the line item investment income, we've actually recorded $2 2 million for the three months ended June 30, and four one for the six months ended.

Speaker 3: for the six months ended to 30, 2023. And so that's where we actually, you would locate it on the income statement and the financial statement. So this Philip noted it is in short term investment.

June 32023, and so that's where we actually you would located on the income statement in the financial statements and as Philip noted is in short term investments low risk and we're earning.

Speaker 3: low risk and we're earning high interest rates on that no different from what you're seeing in the current interest rate environment with money markets.

High interest rates on that no different from what Youre seeing in the current interest rate environment with money market funds sure that's the $8 million to $10 million.

Speaker 4: Sure, that's the 8 to 10 million that I estimated that you would be earning. That makes sense. So, no staffing issues at all to help facilitate the contracts? That's a different question. You answered our research. I phrased it wrong. Let me go where I think you want to go.

That you would be earning.

Exactly.

So.

No staffing issues at all to help facilitate.

The contracts now that's a different question you asked is a research.

We're accelerating the rank, yes, maybe let me let me let me let me go where I think you ought to do it.

Speaker 6: The whole industry is challenged when it comes to human resources. Let me put this in some context for you. There's a very interesting...

Yeah, the whole industry is.

It's challenged when it comes to human resources, Let me put let me put this in some context for you.

There is a very interesting you've probably read it.

Commercial lift off report published by the U S Department of Energy I believe it was in March and they said to meet our national.

Speaker 6: commercial liftoff report published by the U.S. Department of Energy. I believe it was in March and they said to me our national

Global.

Speaker 6: target to reach net zero by 2050, even with a very robust build out of wind and solar renewables we're going to need 200 gigawatts.

Targets to reach net zero by 2050, even with a very robust build out of wind and solar renewables, we're going to need 200, gigawatts of new nuclear power now to put that in context, we have about 90 gigawatts today.

Speaker 6: of new nuclear power. Now to put that in context, we have about 90 gigawatt today.

Speaker 3: So we have a huge industry wide challenge in terms of supply chain, in terms of talent, talent goal.

Uh huh.

We have a huge industry wide challenge in terms of supply chain in terms of the talent pool. When I was in government. We work very hard on trying to get that new generation into the market. The good news is there now enough excitement and enthusiasm around the nuclear promise that young people.

Speaker 3: government we work very hard on trying to get that new generation into the market. The good news is there's now enough excitement and enthusiasm around the nuclear promise that

Speaker 3: young people which we need are coming in. But this is going to be for centricin for everybody a continuing challenge and we have an additional challenge because of the sensitivity of our technology, many of our workers need to have security classifications.

Which we need are coming yet, but but this is going to be for centrist and for everybody a continuing challenge and we have an additional challenge because of the sensitivity of our technology. Many of our workers need to have security classifications clearances and so forth. So so I don't mean to seen.

Speaker 3: so forth. So I don't mean to seem glib about that at all. It's a challenge, but I guess I make one other point, which is we have been very, very fortunate to partner with some really outstanding

Glib about that at all it's a challenge, but I guess I'd make one other point, which is we have been very very fortunate to partner with really outstanding.

Yeah.

Sources of good.

Speaker 3: sources of good talent. The Navy continues to be just a phenomenal training ground for the highest quality candidate that we could search for. And of course, we have robust...

Talent. The Navy continues to be a just a phenomenal training ground for the highest quality candidates that we could search for and of course, we have robust co.

Speaker 3: cooperation with the trade unions who do a lot of training. And I invite you to check out what they do, the National Association of Building Trade Unions, the International Brotherhood of Electrical Workers, the United Steelworkers, and so forth. So there is a lot of work going on strengthening and making that supply chain of...

Cooperation with the trade unions, who do a lot of training and I invite you to check out what they do the National Association of building trade unions.

International Brotherhood of electrical workers.

U S.

Steelworkers and so forth so.

There is a lot of work going on on strengthening and making that that supply chain.

Speaker 3: human talent, moral, and the last thing I want to invite you to is a very interesting report.

Human talent more robust and lasting I'll invite your attention too is.

A very interesting report.

From 2017, both by the energy Futures initiative about the ecosystem that exists between a vibrant commercial sector and nuclear in the National Security Enterprises. It goes all the way back I know I've mentioned President Eisenhower twice. This goes back to the 19 fifties, where Admiral Rickover President Eisenhower leverage the big investment.

Speaker 3: 2017, posed by the Energy Futures Initiative about the ecosystem that exists.

Speaker 3: between a vibrant commercial sector in nuclear and a national security enterprise. This goes all the way back, I know I've mentioned President Eisenhower twice, this goes back to the 1950s where Admiral Rickover and President Eisenhower leveraged big investment the United States made in a nuclear navy.

States made in a nuclear Navy.

Speaker 3: and use that to spawn the whole domestic commercial industry and with huge success.

And use that to small on the whole domestic commercial industry and with huge success. So they made the shipping port reactor design available and little less known.

Speaker 3: made the shipping port reactor design available and little less known.

Speaker 3: President Eisenhower made at that time a billion dollars, it would be worth like $10 billion worth of uranium, enriched uranium, available to support that. So we have...

President Eisenhower made at that time $1 billion would be like.

Worth $10 billion worth of uranium enriched uranium available to support that so we have human.

Speaker 3: resource constraints like everyone else does, but we're working hard and very excited to deal with that as we have a robust build-up of our capacity.

Resource constraints like everyone else does but were working hard and very excited to have to deal with that as we have a robust build out of our capacity.

Yes.

Thank you there are no questions at this time I would like to turn the floor back over to Mr. Cola for closing comments.

Speaker 1: Thank you. There are no questions at the time. I would like to turn a sword back over to dance

Thank you operator, this will conclude our investor call for Q2 2023.

Speaker 2: Thank you, operator. This will conclude our investor call for Q2 2023. As always, I want to thank those listeners online and investors who called in, and we'll look forward to speaking with you again next quarter.

And I think those listeners online and investors who called in and we'll look forward to speaking with you again next quarter.

Speaker 1: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Thank you.

Concludes today's teleconference.

Connect your lines at this time, thank you for your participation.

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Speaker 1: Greetings and welcome to Centris Energy's second quarter 2023 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero One.

Greetings and welcome to Suntrust Energy second quarter 2023 earnings at.

At this time all participants are in a listen only mode. A brief question and answer session will follow the formal presentation.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad.

As a reminder, this conference is being at this conference. It is novel pleasure to introduce your host Dan Leistikow Vice President Corporate communications. Thank you. Mr. <unk> you may begin.

Speaker 2: Good morning. Thanks for joining us. Today's call will cover the results for the second quarter of 2023 and the June 30th. Today we have Dan Pondeman, President and Chief Executive Officer, Philip Strawbridge, Chief Financial Officer, and Kevin Harrell, Controller and Chief Accounting Officer.

Good morning, Thanks for joining us today's call will cover the results for the second quarter of 2023 ended June 30 today, we have Dan <unk>, President and Chief Executive Officer, Philip Strawbridge, Chief Financial Officer, and Kevin Harold Controller, and Chief Accounting Officer.

Speaker 2: Before turning the call over to Dan Poneman, I'd like to welcome all of our callers, as well as those listening to our webcast. This conference call follows our earnings news release issued yesterday. We expect to file a report for the second quarter of 2023 on Form 10Q later today. All of our news releases and SEC filings, including our 10K, 10Qs, and 8Ks are available on our website. A replay of this call will also be available later this morning on the Centris website.

Before turning the call over to Dan <unk> I'd like to welcome all of our callers as well as those listening to our webcast.

This conference call follows our earnings news release issued yesterday, we expect to file a report for the second quarter of 2023 on Form 10-Q later today.

All of our news releases and SEC filings, including our 10-K 10, Qs and eight Ks are available on our web site for replay of this call will also be available later this morning on the <unk> website.

Speaker 2: I'd like to remind everyone that certain information we may discuss on this call may be considered forward looking information that involves risk and uncertainty, including assumptions about the future performance of centrist. Our actual results may differ materially from those in our forward looking statement.

Actual results may differ materially from those in our forward looking statements.

Speaker 2: Additional information concerning factors that could cause actual results to material materially differ from those in our forward-looking statement. This can take islands with the SEC, including our annual report on form 10K and quarterly reports on form 10Q.

Additional information concerning factors that could cause actual results to material materially differ from those in our forward looking statements is contained filings with the SEC, including our annual report on Form 10-K, and quarterly reports on Form 10-Q.

Speaker 2: Finally, the forward-looking information provided today is time sensitive and accurate only as of today, August 4th, 2023, unless otherwise noted.

Finally, the forward looking information provided today is time sensitive and accurate only as of today August four 2023, unless otherwise noted.

Speaker 2: This call is a property of central synergy. Any transcription, redistribution, retransmission, or re-broadcast of the call in any form without the express written consent to central is strictly prohibited. Thanks for your participation. I'll now turn the call over to Dan Pondeman. Thank you, Dan. Thank you.

This call is the property of central synergy any transcription redistribution retransmission or rebroadcast of the call in any form without the express written consent of Suntrust is strictly prohibited.

For your participation I'll now turn the call over to Dan.

Thank you Dan and thank you to everyone on the call today.

Speaker 3: This was another strong, productive, and profitable quarter for centrist, booking $12.7 million in net income, and $98.4 million in rep.

This was another strong productive and profitable quarter for centers booking $12 7 million and net income and $98 $4 million in revenue.

Speaker 3: This includes $39.5 million in uranium sales, driven by the continued rise in natural uranium prices as global supply remains.

This includes $39 $5 million in uranium sales driven by the continued rise in natural uranium prices as global supply remains constrained.

Speaker 3: So far this year we've delivered $146.4 million worth of enrichment and natural uranium in our LEU segment.

So far this year, we've delivered $146 $4 million worth of enrichment and natural uranium in our <unk> segment.

Speaker 3: while continuing to refill our pipeline with new orders, thus maintaining the value of our order book at $1 billion through 2030.

While continuing to refill our pipeline with new orders, thus maintaining the value of our order book at $1 billion through 2030.

Speaker 3: We are building momentum toward pioneering the Halo market and delivering a secure, reliable, domestic source that will meet the needs of industry as well as the U.S. government.

We are building momentum towards pioneering the halo market and delivering a secure reliable domestic source that will meet the needs of industry as well as the U S government.

We are now, finishing some final testing activities and expect to begin production and meet our contractual obligation to make 20 kilograms of high assay low enriched uranium or halo by the end of this year. This will be the first U S. L. U S technology enrichment plant to begin production in <unk>.

Speaker 3: We are now finishing some final testing activities and expect to begin production and meet our contractual obligation to make 20 kilograms of high assay low-enriched uranium or halu by the end of this year.

Speaker 3: This will be the first US-owned US technology enrichment plant to begin production in 70 years.

70 years.

Speaker 3: what a fitting way to commemorate the 70th anniversary of President Eisenhower's as for peace speech before the United Nations.

Fitting way to commemorate the 17th anniversary President Eisenhower's Adams for peace speech before the United Nation, which set the United States on the path towards global leadership, and the responsible deployment of nuclear energy for the benefit of humanity.

Speaker 3: which set the United States on the path toward global leadership and the responsible deployment of nuclear energy for the benefit of humanity.

Speaker 3: A path that the plankton plant can help restore.

Pat the piped in plant can help restore.

Once we complete production of the first 20 kilograms of Haywood.

We will progress to phase II of our contract a full year of production at the annual rate of 900 kilograms of Haywood per year.

Speaker 3: While phase one of the contract requires a 50-50 cost share, starting in phase two, the Department of Energy will pay the full cost of production plus an incentive fee in exchange for the output of the cascade. So the US government will become our first customer. Indeed, it is our hope and expectation that this will be the first of many customers for this powerful fuel, three table spoons of which could support one person's electricity needs for life. it ??? towards a close friend of mine, Noan.

While phase one of the contract requires a 50 50 cost share starting in phase two the department of energy will pay the full cost of production plus an incentive fee in exchange for the output of the Cascade. So the U S government will become our first customer indeed, it is our hope and expectation that this will be the first of <unk>.

Many customers for this powerful fuel three tablespoons of which could support one person's electricity needs for light.

All while meeting no carbon.

Subject to the availability of appropriation. The contract also give the department the option to purchase up to nine additional production years from the Cascade.

Speaker 3: Subject to the availability of appropriations, the contract also gives the department the option to purchase up to nine additional production years from the

Speaker 3: While the output of the demonstration cascade will be modest, it is urgently needed. The Department of Energy has made a multi-billion dollar commitment to nine different Halo Fuel Reactor Designs and critically need the Halo to support reactor demonstrations and fuel qualification for those reactors.

While the output of the demonstration Cascade will be modest it is urgently needed.

Department of energy has made a multibillion dollar commitment to nine different payment fuel reactor designs and critically need the halo to support reactor demonstration and fueled qualification for those reactors. The overall need for Halo, even for just the first round of demonstration reactors significantly.

Speaker 3: The overall need for Halo, even for just the first round of demonstration reactors, significantly exceeds what we can produce from the demonstration cast date. So a great deal more capacity will be needed and soon.

<unk> exceeds what we can produce from the demonstration cascade. So a great deal more capacity will be needed and soon.

Speaker 3: In June , the Department of Energy issued a draft request for proposals, outlining a program to purchase up to 145,000 kilograms of HALU over a 10-year period. Fully implementing this program would require significantly more money than Congress has thus far appropriated, but the inflation reduction act signed last year included an important $700 million dollar down payment on that FF.

In June the Department of Energy issued a draft request for proposals outlining a program to purchase up to 145000 kilograms of Halo over a 10 year period fully implementing this program would require significantly more money then Congress has thus far appropriated.

The inflation reduction Act signed last year included an important $700 million downpayment on that effort.

Speaker 3: We look forward to applying whenever that RFP is issued.

We look forward to apply whenever that RFP is issued.

Speaker 3: And we believe that we have a compelling case to make since we have the only site in the United States licensed for Hulu production and can expand Hulu production quick.

And we believe that we have a compelling case to make since we have the only site in the United States licensed <unk> production and can expand Haley production quickly.

Speaker 3: A commercial scale cascade with 120 centrifuges can produce about 6 metric tons per year. We can place the first online within 42 months of securing funding and can display an additional hallowed cascade every 6 months after that. We have not seen any faster timetable in the industry and speed is a crucial factor here since reactor developers need significant quantities of hallowed in the next few years.

A commercial scale Cascade with 120 centrifuges can produce about six metric tons per year.

And speed is a crucial factor here since reactor developers need significant quantities of Halo in the next few years.

We have consistently said that establishing a domestic haywood supply chain will require a public private partnership and we are doing our part just last month, we took an important step towards securing additional private sector support for a potential expansion of Haywood production as many of you know.

On July 17th centers, and tariff power, a leading nuclear innovation company founded by Bill Gates.

Yes.

Announced.

Speaker 3: that we have signed an MOU to accelerate joint efforts to create domestic, commercial scale hiposh does Rancho

We have signed an mou to accelerate joint efforts to create domestic commercial scale Haywood production.

Speaker 3: With support from the Department of Energy, Tera Power is building a commercial scale Natrium reactor in Kemmerer, Wyoming. Under this MOU, our two companies are evaluating how to expand our capacity in Python so that we can deliver Halo in the quantities and on the timeline necessary to support the 2030 operation date for the Natrium reactor. With that, let me turn things over to Phillip who will go into more detail about our numbers for the quarter.

With support from the Department of Energy Terra power is building a commercial scale nature of the reactor and Kemmerer Wyoming.

Under this Mou our two companies are evaluating how to expand our capacity in Python. So that we can deliver halo and the quantities and on the timeline necessary to support the 2030 operation date for the Natrium reactor with that let me turn things over to Filip, who will go into more detail about our number.

For the quarter.

Thank you Dan good morning, everyone.

Speaker 3: Thank you Dan. Good morning everyone. As discussed before, we've experienced variability in our quarterly results due to when clients take their deliveries. Last year for example, we had a gross profit in all four quarters, but more than 90% of that came in in the second and fourth quarters.

As discussed before we experienced variability in our quarterly results due to win clients take their deliveries last year. For example, we had a gross profit in all four quarters.

More than 90% of that came in in the second and fourth quarters.

Speaker 3: The vast majority of our L.E.U. contracts are multi-year contracts. Our customers have a purchase obligation on an annual basis, not quarterly basis. They choose which quarter do they deliver? And we booked the revenue and cost of sales in that quarter, which also often varies from year to year. What matters for us is that our annual performance, not quarterly performance is good.

Vast majority of our contracts are multiyear contracts our customers have a purchase obligation on an annual basis, not a quarterly basis, they choose which quarter to take delivery.

We booked the revenue and cost of sales in that quarter, which offset often varies from year to year, what matters for us is that our annual performance.

<unk> quarterly performance is good.

Speaker 3: That said, we had a strong second quarter. Our tone revenue was 98.4 million in line with the 99.1 we generated in the same quarter last year. In the LAU's segment, we generated 87.6 million in the second quarter revenue against the cost sales.

That said, we had a strong second quarter. Our total revenue was $98 4 million in line with the $99. One we generated in the same quarter last year.

<unk> segment, we generated $87 6 million in the second quarter revenue against a cost of sales.

Of $68 million, earning a gross profit of $26 eight for the segment.

Speaker 3: of $60.8 million, earning a gross profit of $26.8 for the second.

As mentioned before the specific contract pricing mix of swoop contracts and the timing of customer deliveries change from quarter to quarter. This along with an increase in uranium sales impacted our margin for that quarter.

Speaker 3: As mentioned before, the specific contract and pricing mix of SWOOP contracts and the timing of a customer's deliveries changed from quarter to quarter. This, along with an increase in uranium sales, impacted our margin for that quarter.

Speaker 3: In our citrus technical solution segment, which includes our contract with the Department of Energy to build and demonstrate halo production, as well as a variety of other contract work for public and private sector customers, we generated 10.8 million in revenue, it gets cost of sales of 9.6 for the quarter, resulting in gross profit of 1.2 million for that segment.

And our citrus technical solutions segment, which includes our contract with the department of energy to build and demonstrate halo production as well as a variety of other contract work for public and private sector customers, we generated $10 8 million in revenue against cost of sales of $9 six for the quarter.

Resulting in gross profit of $1 2 million for that segment.

We have also been making good progress towards strengthening our balance sheet. So that we will be well positioned to make investments in our future expanding our cash balance to $245 million, which includes $32 $5 billion of restricted cash for financial assurance.

Speaker 3: Our cash and cash equivalents balance has increased by 23.7 million since last quarter and 32.6 million since the end of last year. As Dan mentioned, as of last year, the total amount of cash equivalents has increased by 23.7 million since last quarter.

Our cash and cash equivalents balance has increased by $23 7 million since last quarter and $32 6 million since the end of last year.

As Dan mentioned as of June 30.

Our <unk> order book is valued at approximately $1 billion through the end of the decade and remember the $1 billion is just for the <unk> segment of our business. It does not include our work on Halo or other contracts that we have in our technical solutions segment with that I'll turn it back over to Dan.

Thank you Philip.

Speaker 3: This year, 2023, is the year of decision. There's now broad consensus that restoring a domestic uranium enrichment capability is vital to America's national security.

This year 2023 is the year of decision.

Now broad consensus that restoring a domestic uranium enrichment capability is vital to America's national interests to our national security.

Our energy security.

Climate objectives, our clean energy needs are supply chain resilience to the health of the American economy and to creating good family supporting jobs.

That recognition was already present and reflected last year when Congress appropriated.

Speaker 3: That recognition was already present and reflected last year when Congress appropriated it.

Speaker 3: $700 million in the inflation reduction act as a down payment on establishing a domestic K-LU supply chain. Even at that time, it was widely recognized that additional federal investments would be required. And that momentum has carried into this year, despite the fact that some people say it's impossible for fine consensus in Washington anymore, turns out that the urge is need to restore America's domestic uranium and rich in capability is one area of fraud by partisan Addra House. I'm sorry there is no mere

$100 million and the inflation reduction act as a down payment on establishing a domestic huge supply chain even at that time. It was widely recognized that additional federal investments would be required.

Speaker 3: In recent weeks, Republicans and Democrats in both the House and the Senate have advanced proposals to make a major federal investment to rebuild America's nuclear fuel supply chain, including low-enriched uranium as well as helium.

In recent weeks Republicans and Democrats in both the house and the Senate have advanced proposals to make a major federal investment to rebuild America's nuclear fuel supply chain, including low enriched uranium as well as heyward.

Speaker 3: New appropriations for enrichment have passed through committee in both houses of Congress. The Senate Energy and Water Appropriations Bill includes $800 million. The House version has $2.4 billion. There's still a lot of work to be done to get those bills passed. Reconciled with one another and sent to the President. But this is the strongest bipartisan support we've seen for an investment in America's enrichment capacity in decades.

New appropriations for enrichment have pass through committee in both houses of Congress.

Energy and water appropriations Bill includes $800 million.

The House version has $2 4 billion.

There is still a lot of work to be done to get those bills passed reconciled with one another and sent to the president but.

Is the strongest bipartisan support we've seen foreign investment in Americas enrichment capacity in decades.

Ian.

Hey.

Speaker 3: Because the NDAA is considered must pass legislation, it's difficult to see hundreds of amendments get proposed, but only a handful make it through. This year was no different with over 900 amendments introduced.

Because the NDAA has considered must pass legislation, it's difficult to see hundreds of amendments get proposed but only a handful make it through this year was no different with over 900 amendments introduced the amendment authorizing investment in uranium enrichment was one of only eight there were adopted.

Speaker 3: The amendment authorizing investment in uranium enrichment was one of only eight that were adopted by individual votes and it passed by an overwhelming margin of 96 to 3.

By individual boats and it passed by an overwhelming margin of 96 to three.

Speaker 3: This was a historic vote worthy of the legacy of President Eisenhower's Atoms for Peace initiative and a potential game changer for our end.

This was a historic vote worthy of the legacy of President Eisenhower's Adams for peace initiatives and a potential game changer for our industry IMAX.

Im extraordinarily grateful to members of the house and the Senate and both parties, who have come together to address the urgent energy security and national security issues at stake here.

Time to restore America's domestic uranium enrichment capacity is now and we are determined to do our part to make it happen.

Speaker 3: I also want to thank all of our adventures who are supporting us and have for so long in this historic and important work.

I also want to thank all of our investors, who are supporting us and half for so long in this historic and important work.

Speaker 3: Finally, on a personal note, I want to thank our outstanding CFO and Senior Vice President Philip Strawbridge, who after doing an incredible job at Centris for nearly four years, has decided to retire as of December 31st. This is a bittersweet moment for while we are happy and grateful for the great work Philip has done advancing the mission of this company and the interests of our shareholders, we will sorely miss his leadership and wise counsel.

Advancing the mission of this company and the interest of our shareholders. We will certainly Miss his leadership and wise counsel.

Fortunately and Kevan Herold. The company has found a worthy successor to Philip and his chief accounting officer for the past two years. Kevin has also done a terrific job in all matters of substance as well as managing an accurate and efficient reporting process, which our shareholders have come to appreciate with the filing of each of our quarterly and annual.

Speaker 3: Fortunately, in Kevin Harrel, the company has found a worthy successor to Philip, and as chief accounting officer for the past two years, Kevin has also done a terrific job in all matters of substance, as well as managing an accurate and efficient reporting process, which our shareholders have come to appreciate with the filing of each of our quarterly and annual earnings report.

Earnings reports.

Speaker 3: Kevin will take over the role as CFO effective September 1st and Philip will step into the role as an advisor to me and to the Board of Directors until his final retirement in December to ensure a smooth transition. All of us at Centris join me in expressing our sincere gratitude to Philip and wish him enjoyment and success as he writes his next chapter. And with that, we'll take your questions.

And with that we'll take your questions operator.

Speaker 1: Thank you. We will now be conducting a question and answer session. If you would like to ask a question, please press star 1 on your telephone keypad. The confirmation tone will indicate your line is in the question queue. You may press star 1 on your telephone keypad.

Thank you Yuval.

I'll now be conducting a question and answer session.

If you would like to ask a question. Please press star one on your telephone keypad.

Information tone will indicate your line is in the question queue.

At this time, if you would like to remove your questions from the queue.

For participants using speaker equipment.

It may be necessary to pick up your handset before pressing the star keys.

One moment please poll for questions.

Yeah.

The first question comes from the line.

Speaker 1: The first question comes on the line of Rob Brown with the Lake Street Capital Markets.

Rob Brown with Lake Street capital markets.

Please go ahead.

Yeah.

Good morning.

Morning.

Good morning, Rob.

Just wanted to clarify on the on the Doa draft proposal, what's what's sort of.

Speaker 8: Just wanted to clarify on the DOE draft proposal, what sort of the draft RFP, what sort of the timeline and getting the next steps there, and you see at this point, and then in general, what's sort of the kind of methodology that DOE is starting to coalesce around?

The draft RFP, what sort of timeline on getting the next steps there and do you see at this point and then in general what's sort of the kind of methodology that we are starting to coalesce around in terms of the support of these sort of commitments to bye bye.

Speaker 8: support? Are these sort of commitments to buy materials or are they capital commitments upfront or how is it sort of...

Biomaterials, where are the capital commitments upfront or how is it sort of shaking out at this point.

Rob as always it's a great question, but im pretty consistent not speaking on behalf of the U S government because they're not part of it anymore I would just say that in terms of the timeline everyone is very aware of the requirements in.

Speaker 3: Rob, as always, it's a great question, but I'm pretty consistent not speaking on behalf of the US government because I'm not part of it anymore. I would just say that in terms of the timeline, everyone is very aware of the requirement.

Speaker 3: in the Energy Act of 2020 to have HU available for the use of these advanced reactors. Those reactors are supposed to begin operations later this year, so people are looking at 2026, 2027.

In the Energy Act of 2020 to have available for.

The use of these advanced reactors those reactions are supposed to do.

Net operations later this year. So people are looking at 'twenty 'twenty six 'twenty seven but.

Speaker 3: But in terms of the actual process, as you know, they issued this draft RFP, I think it was around June 6th.

But in terms of the actual process as you know they issued this draft RFP I think it was around June six we had to get our comments in around July typically they take some time to go over the comments my understanding is that there were a lot of robust comments the structure of the program, Rob I think remains.

Speaker 3: We had to get our comments in around July 6th. Typically, they take some time to go over the comments. My understanding is that there were a lot of robust comments. The structure of the program, Rob, I think remains.

Speaker 3: In question, there is, if you look to the RFP, a number of considerations in terms of what burden will fall on the shoulders of the contractor.

And question there is.

If you looked at the RFP.

<unk> considerations in terms of.

What burden will fall on the shoulders of the contractor.

<unk>.

Speaker 3: decision by the department to buy the end product or to buy just the separate work component and the heavy waste effect of it is not the LWP type. There are a number of issues that are being reviewed and studied and we're eager to see that come out but I would not be able to confident to predict when the department will act because that's ultimately up to them.

Decision by the department to by the end product or to buy just the separate work component and the halo aspect of it and not the EWC side, there's a number.

There are issues that are I think being reviewed at study and we are eager to see that come out, but I would not be able with confidence to predict when when the department will act because that's ultimately up to them.

Okay. Thank you for the color and I understand it's hard to predict.

Speaker 4: Okay, yeah, thank you for the color and I understand it's hard to predict the sort of government status, but on the current contract you have, phase two, where are you at in terms of capacity to fulfill that 900 kilograms per year? Can you do that with...

So the government steps, but.

On the on the current contract do you have your phase two.

Where are you at in terms of capacity to fulfill that 900 kilograms per year can you do that with what you've got or do you need to add capacity there.

No we can do that way.

Wave breaks down basically this first phase phase one that's very modest 20 kilogram.

Production, that's basically to show that it works right and of course, the significant thing about that is that is the only portion of this contract that is cost share. So once we're past phase one and into phase II and 16 machines R&D.

Speaker 3: So once we're past phase one and in phase two, and the 16 machines are indeed sufficient, Rob, to produce the 900k GU that are pledged under that contract, then those will operate, and they can produce that quantum in that amount of time. Obviously, as I said in my remarks,

Sufficient Rob to produce 900, <unk> that are pledged under that contract.

<unk>.

Those will operate and they can produce that quantum in that amount of time, obviously as I said in my remarks, our ambition is to make a lot more and for that we will affect me to expand in.

Speaker 3: Our ambition is to make a lot more and for that we will in fact need to expand and it's our hope that we're going to

It's our hope that were going to do that.

Speaker 3: to put out these additional tranches that come out in chunks of like 120 machines each. And each one of those cascades can in turn produce six.

Put up these.

These additional tranches that come in.

In chunks, but like a 120 machines each and each one of those cascades can in turn grew six metric tons per year and therefore.

Speaker 3: and per year and therefore that's assuming 4.95% feedstock. Therefore within 42 months, if you add a one ton, it's actually 900 kilograms drop to a ton, plus six tons, that would be seven tons and then we'd put another cascade on, another 120 machines every six months thereafter. So within 48 months, just on the new build, we could have effectively 12 metric tons of capacity.

That's assuming port where 95% feedstock therefore within 42 months and the onetime effectively 900 kilogram dropped to a ton plus <unk> 77 times and then put another cascade on another 120 machines and reached six months thereafter, so within 48 months.

On the Newbuild, we could have effectively 12 metric tons of capacity introduction.

Speaker 1: Thank you. Next question comes on the line of pure as a trigger with the rot M.

Thank you next question comes from the line of Joseph Reagor with Roth.

Please go ahead.

Speaker 5: Hey Dan and Phil on team. Thanks for taking the questions. Hey Joe, good morning.

Hey, Dan and Phil and team. Thanks for taking my questions Hey, Joe Good morning.

Morning.

Speaker 5: So question on how you guys are handling filling out the order book in like the out years

So.

A question on how you guys are handling filling out the order book and like the out years.

With.

Speaker 5: with you know the possibility that uh... the u.s. government some fact that eventually ban

The possibility that the U S government some facet eventually bands.

Speaker 5: in-ritch or un-enriched uranium out of Russia. You know, how do you in the utilities, you know, I guess, look at longer term contract signing? Is there a finite timer sticking within, where you guys signing beyond that, but with...

And Red store, an enriched uranium out of Russia.

How do you and the utilities I guess look at longer term contract signing is there a finite timer sticking within what.

Are you guys signing beyond that but with.

Speaker 5: that if something happens there, the contract is avoided. You know, like, what do you guys?

A caveat that if something happens there that the contract is voided like what are you guys do there.

Speaker 3: Well, Joe, of course, you can't get into specific contract terms on the one hand. On the other hand, the first thing that must be said is there is a universal recognition that

Well.

Joe Chris can't get into specific contract.

On one hand on the other end of the first thing that must be said is there is a universal recognition that.

Speaker 3: given that Russia accounts for 46% of the world's installed base.

Given that Russia accounts for 46% of the world's installed base that it is an urgent priority an urgent priority to build new capacity. So the first thing people are doing is looking at how to get more capacity. That's why this whole legislative effort is so important and so intense frankly and everyone also recognizes that.

It will take five or six years to put new capacity into the field. Secondly, we are like everyone else is and we have been for a long time, even before the crisis in Ukraine always looked for a variety of ways too.

Speaker 3: diversify our source of supply, but frankly, you know, those sources are limited and without Russia, if Russia were in fact not any longer to be participating or participating at the same level, it would put obviously extreme pressure on those.

Diversify our sources of supply, but frankly, those those sources are limited and without.

Russia, Russia, where in fact, not any longer to be participating approaches at the same level you will put obviously extreme pressure on those.

Speaker 3: on those supplies. So we're continuing to look at ways to get Product to market from a combination of sources that we have long-term contracts on the sources that we've found around the market and of course We're very focused like a laser beam. I'm putting additional productive capacity

On those supply so.

We are continuing to look at ways to get.

Product to market from a combination of sources that we have.

Long term contracts other sources.

<unk> found around the market and of course, we're very focused like a laser beam on putting additional productive capacity into the market.

Speaker 5: Okay, fair enough. And then on the uranium cells in the quarter, traditionally, your guys uranium cells have had, let's call it, low single digit margins. Sorry.

Okay Fair enough and then.

On the uranium sales in the quarter.

Traditionally you guys uranium sales have had let's call it low single digit margins.

From.

Speaker 5: call it the 20 questions back and forth with you in the investment community. um

Let's call it the 20 questions back and forth.

The investment community.

Was there any higher margin on this sale because of the.

Speaker 5: with any higher margin on this sale because of the court you know the size of it in the higher urines uh... prices or uh... you know it's still in that you know lower single-digit

The size of it and the higher uranium prices or.

Was it still in that.

Lower single digit range.

Speaker 3: So, yeah, so you hear exactly right, Joe. I mean, we did have good uranium cell from a margin perspective. It was slightly more, but remember this uranium, this that are made business, it's a byproduct about selling and swoon. And so, what we do is when we sell it, we sell it at market market, we're going up slightly. But what we show is, you know, that minimal margin, but it's because it's a byproduct of swoon.

Yes.

So you're exactly right, Joe we did uranium.

From a margin perspective, it was slightly more but remember this uranium that's not our main business is a byproduct of best selling through.

So what we do is when we sell it we sell it at market market was going up slightly.

But what we show is minimal margin, but because it's a byproduct goes.

Okay.

Speaker 1: Thank you. Next question comes on the line of the visual fields.

Thank you.

Next question comes from the line of Richard Defense.

Please go ahead.

Speaker 4: Good morning. Good morning. Hey, Ritchie. Good morning. Sorry, thank you. Obviously, everyone is happy that the trend of where a centrist is going. I have two questions.

Good morning, Good morning, David.

Right. Thank you obviously, everyone is happy that the <unk>.

<unk> of where Suntrust is going I have two questions.

And I'll tell you what they are and then you can choose how to answer them. The first one is what difficulties are you, having or incurring in maintaining or acquiring.

Professional.

Research staff.

Two.

Sure.

To do this work.

Speaker 4: And secondly, with roughly $180, $190 million of cash, where would I find the interest that you are earning on that? I'm assuming, and maybe you know, you care to discuss it, I'm assuming you're buying just short-term U.S. treasuries, but that should add another $8 to $10 million a year.

And secondly.

With roughly $180 million to $190 million of cash.

Where would I find the interest that you're earning on that.

I'm, assuming and maybe <unk>.

Care to discuss it in Ms.

You are buying just the short term U S treasuries, but that should add another $8 million to $10 million a year.

Speaker 4: of interest. And so those are the two questions I have.

Of interest.

Those are the two questions I have.

Speaker 3: Okay, I will take the first and I will let Phillip take the second. We don't actually have research staff per se and we don't need it, if I'm understanding the question correctly. We have an incredibly capable engineering staff. We have incredible operators. We have marketing people. And we do certainly, and our people in the marketing department, do stay abreast of market research.

Okay, I will take the first and I will let phillippe take the second.

We don't actually have research staff per se and we don't need it.

If I'm understanding the question correctly, we have an incredibly capable engineering staff, we havent incredible operators, we have marketing people.

Speaker 3: but we're not a research organization per se. I would say we're more a consumer than a producer of research.

Speaker 3: and we just are focused on...

We just.

Our focused on doing the business and both in the <unk> segment buying and selling material and in the technical solutions segment getting our technology deployed.

Speaker 3: doing the business and both in the early use segment buying and selling material and in this technical solutions segment getting our technology deployed.

Speaker 3: and then obviously supporting the whole business, getting the things financed. So we, as I say, we are not really research organization with more in operation.

Expanded and.

And then obviously supports the whole business getting the same finance so we.

As I say, we are not really a research organization, where werent operational organization. So we can take the other.

Speaker 3: organization. So, did you take the other? Yeah, on the interest. First of all, we have a little over 200 million under balance sheet and you know, we're very conservative and what we invest in. I'm a little left Kevin here.

Just first of all we have.

A little over $200 million in your balance sheet.

Very conservative in what we invest in them, we'll let Kevin Euro.

Speaker 3: talk about that. Kevin, you talked about words that. Yeah, absolutely. Thank you, fellas.

Talk about that Kevin talked about words it yeah, absolutely. Thank you Phil.

Speaker 3: In the materials that we distributed as part of the press release on the income statement, if you go to the line item Investment Income, we've actually recorded 2.2 million for the three months ended June 30 and 4.1.

And in the materials that we distributed as part of the press release on the income statement. If you go to the line item investment income, we've actually recorded $2 2 million for the three months ended June 30, and four one for the six months ended June .

Speaker 3: for the six months ended to 30, 2023. And so that's where we actually, you would locate it on the income statement and the financial statement. So this Philip noted, it is in short term investment.

32023, and so that's where we actually you would located on the income statement in the financial statements and as Phil noted. It is in short term investments low risk and we're earning high interest rates on that no different from what youre seeing in the current interest rate environment with money market funds sure that's the 8%.

Speaker 3: low risk and we're earning high interest rates on that, no different from what you're seeing in the current interest rate environment with money markets.

Speaker 4: That's the 8 to 10 million that I estimated that you would be earning So No staffing issues at all to help facilitate The contracts that that's a different question you ask your research We don't do it. I raise the wrong. Yeah, maybe let me let me let me let me go where I think you want to go

<unk> 10 million.

We estimated that you would be earning.

Sure.

So.

No staffing issues at all to help facilitate.

The contracts now that's a different question you asked some of our research.

We don't do or accelerated their Brock, yes, maybe let me let me let me let me go where I think you ought to go.

Speaker 3: The whole industry is challenged when it comes to human resources. Let me put this in some context for you. There's a very interesting...

Yes.

Paul industry is challenged when it comes to human resources, Let me put let me put this in some context for you.

There is a very interesting you've probably read it.

Commercial lift off report published by the U S Department of Energy I believe it was in March.

Speaker 3: commercial liftoff report published by the u.s. Department of Energy i believe was in march and they said to meet our national

And they said to meet our national.

Global.

Target to reach net zero by 2050, even with a very robust build out of wind and solar renewables, we're going to need 200 gigawatts.

Speaker 3: target to reach net zero by 2050. Even with a very robust build out of wind and solar renewables we're going to need 200 gigawatts.

Speaker 3: of new nuclear power. Now to put that in context, we have about 90 gigawatts today.

New nuclear power now to put that in context, we have about 90 gigawatt today.

Speaker 3: So we have a huge industry wide challenge in terms of supply chain in terms of talent goal.

We have a huge industry wide challenge in terms of supply chain.

With talent go when I was in government, we worked very hard on trying to get that new generation into the market. The good news is there is now enough excitement and enthusiasm around the nuclear promise that young people, which we need are coming in but but this is going to be for citrus and for.

Speaker 3: government we work very hard on trying to get that new generation into the market. The good news is there's now enough excitement and enthusiasm around the nuclear promise that young people which we need are coming in. But this is going to be for centric and for everybody a continuing challenge and we have an additional challenge because of the sensitivity of our technology, many of our workers need to have security classifications.

Everybody a continuing challenge and we have an additional challenge because of the sensitivity of our technology. Many of our workers need to have security classifications clearances and so forth. So so I don't mean to see glib about that at all it's a challenge, but I guess I'd make one other point, which is we.

Speaker 3: so forth. So I don't mean to seem glib about that at all. It's a challenge, but I guess I make one other point, which is we have been very, very fortunate to partner with really outstanding

Been very very fortunate to partner with.

Really outstanding.

Yes.

Sources of good.

Speaker 3: sources of good talent. The Navy continues to be just a phenomenal training ground for the highest quality candidate that we could search for. And of course, we have robust...

Talent. The Navy continues to be a just a phenomenal training ground for the highest quality candidates that we could search for and of course, we have robust.

Cooperation with the trade unions, who do a lot of training and I invite you to check out what they do the National Association of building trade unions.

International Brotherhood of electrical workers.

U S. The United Steelworkers, and so forth. So there is a lot of work going on on strengthening and making that that supply chain.

Speaker 3: human talent more robust and the last thing I'll invite your attention to is a very interesting report.

Human talent more robust and lasting I'll invite your attention to is.

Very interesting report.

Speaker 3: from 2017, posed by the Energy Futures Initiative about the ecosystem that exists.

From 2017, both by the energy Futures initiative about the ecosystem that exists between a vibrant commercial sector and nuclear in the National Security Enterprises. It goes all the way back I know I've mentioned President Eisenhower twice. This goes back to the $19 50, where Admiral Rickover, President Eisenhower leverage the big investment in <unk>.

Speaker 3: between a vibrant commercial sector, nuclear and the national security enterprise. This goes all the way back.

Speaker 3: I know I mentioned President Eisenhower twice. This goes back to the 1950s, where Admiral Rico over President Eisenhower leveraged a big investment the United States made in a nuclear navy.

States made in a nuclear Navy.

Speaker 3: and use that to spawn the whole domestic commercial industry and with huge success.

And use that to small on the whole domestic commercial industry and with huge success. So they made the shipping port reactor design available and little less known.

Speaker 3: made the shipping port reactor design available and a little less known.

Speaker 3: President Eisenhower made at that time a billion dollars, it would be like worth ten billion dollars worth of uranium, enriched uranium, available to support that. So we have...

President Eisenhower made at that time, a $1 billion would be like worth $10 billion worth of uranium enriched uranium available to support that so we have human.

Speaker 3: resource constraints like everyone else does but we're working hard and very excited to deal with that as we have a robust buildup of our capacity.

Resource constraints like everyone else does but were working hard and very excited too to deal with that as we have a robust buildup of our capacity.

Yes.

Thank you.

Speaker 1: Thank you. There are no questions at this time. I would like to turn the floor back over to Dan Pestikos.

No questions at this time I would like to turn the floor back over to Mr. Cola for closing comments.

Okay.

Thank you operator, this will conclude our investor call for Q2, 2023, there's always going to think those listeners online and investors who called in and we'll look forward to speaking with you again next quarter.

Speaker 1: Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

Thank you. This concludes today's teleconference. You may disconnect. Your lines at this time. Thank you for your participation.

Q2 2023 Centrus Energy Corp Earnings Call

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