Q4 2024 Stardust Power Inc Earnings Call
Operator: Thank you for standing by and welcome to the Stardust Power's 4th Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session.
Okay.
Speaker Change: Thank you for standing by and welcome to the Star Desk Power's fourth quarter 2024 earnings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question. During this session you will need to press star one on your telephone. If your question has been answered and you'd like to remove yourself from the.
Operator: To ask a question during this session, you'll need to press star 1-1 on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star 1-1 again. As a reminder, today's program is being recorded.
Speaker Change: Q simply press Star one again as a reminder, today's program is being recorded.
Joanna Gonzalez: And now I'd like to introduce your host for today's program, Joanna Gonzalez, Director of Investor Relations. Please go ahead. Thank you, Operator.
Speaker Change: I would like to introduce your host for today's program Joanna Gonzales director of Investor Relations. Please go ahead.
Joanna Gonzalez: Good afternoon, everyone.
Speaker Change: Operator, good afternoon, everyone before management begins their formal remarks, we would like to remind everyone that some statements. We make today may be considered forward looking statements under securities laws and involve a number of risks and uncertainties.
Joanna Gonzalez: Before management begins their formal remarks, we would like to remind everyone that some statements we're making today may be considered forward-looking statements under securities laws and involve a number of risks and uncertainties. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statement. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the SEC.
Speaker Change: As a result, we caution you that there are a number of factors many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward looking statements.
Speaker Change: For more detailed risks uncertainties and assumptions relating to our forward looking statements. Please see the disclosures in our earnings release and public filings made with the SEC.
Joanna Gonzalez: We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We refer you to our filings with the SEC for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties identified under the caption risk factors in our recent filings. You may get Stardust Power's SEC filings by visiting the SEC website at www.sec.gov.
Speaker Change: We disclaim any obligation or undertaking to update forward looking statements to reflect circumstances or events that occur. After the date. The forward looking statements are made except as required by law.
Speaker Change: We refer you to our filings with the FCC for detailed disclosures and descriptions of our business as well as uncertainties and other variables circumstances, including but not limited to risks and uncertainties identified under the caption risk factors in our recent filings you.
Speaker Change: You may get status, how is S. SEC filings by visiting the Sec's website at Www Dot FCC Dr. Katz.
Joanna Gonzalez: I would like to remind everyone this call is being recorded and will be made available for replay via a link available in the Investor Relations section of Stardust Power's website.
Speaker Change: I would like to remind everyone. This call is being recorded and will be made available for replay via a link available in the Investor Relations section of status Power's website.
Roshan Pajari: Now I will turn the call over to Stardust Power's CEO, Roshan Pajari. Roshan. Thank you, Joanna. And thank you all for joining us today. Welcome to the Stardust Power year-end 2024. I'd like to briefly discuss the macro environment before providing an update on the quarter and subsequent developments of Stardust Power's lithium refinery. The global lithium market has seen a slight improvement in pricing recently with some experts forecasting a significant surge in prices around 2026 to 2027, aligning closely with the timeline for Stardust Power's refinery phase one to potentially come online. This pricing trajectory presents a promising opportunity for Stardust Power as the current business model remains viable at today's prices, indicating profitability.
Scott: Now I will turn the call over to Scott.
Scott: Paris C E are rushing to jewelry, Russia.
Scott: Thank you Joanna and thank you all for joining US today welcome to the start of our year end 2024 earnings call.
Scott: To briefly discuss the macro environment before providing an update on the quarter and subsequent development of startups powers lithium refinery.
Scott: The global lithium market has seen a slight improvement in pricing recently with some experts forecasting a significant surge in prices around 2026 to 2027 aligning closely with the timeline for startups powers refinery phase one to potentially come online this pricing trajectory present.
Scott: A promising opportunity for startups tower as the current business model remains viable at today's prices, indicating profitability, even with fluctuations in pricing, we see the long term outlook for lithium remains strong driven by an increase in demand across multiple sectors.
Roshan Pajari: Even with fluctuations in pricing, we see the long-term outlook for lithium remain strong, driven by an increasing demand across multiple sectors. The Energy Independence Order, signed by President Trump in January, plays a pivotal role in shaping the current landscape for critical minerals in the United States, including lithium refining. This executive order underscores the need for increased energy independence and the securing of supply chains for critical minerals within North America. This policy is advantageous for U.S. manufacturing, lithium refining, and in line with Stardust Power's vision of being a North American source, refined, and end-customer focused business.
Scott: The energy Independence order signed by President Trump in January plays a pivotal role in shaping the current landscape for critical minerals in the United States, including lithium refining this executive order underscores the need for increased energy independence, and the securing of supply chains.
Scott: Critical minerals within North America.
Scott: This policy is advantageous for U S manufacturing lithium refining and in line with startup powered vision of being a north American sourced refined and end customer focused business by bridging the critical refining gap in the lithium supply chain startup powered stands to benefit from this year.
Roshan Pajari: By bridging the critical refining gap in the lithium supply chain, Stardust Power stands to benefit from this shift towards domestic sourcing and refining capability. The emphasis on energy independence is further amplified by the U.S. government's prioritization of securing its energy resources, which could bolster local companies like Stardust Power. The company's differentiators, including its speed to market and innovative approach, position it well to meet the demand for domestically refined lithium while supporting the U.S. energy security goal. Tariffs are currently a major topic in the North American critical minerals market, particularly between the United States and Canada.
Scott: Towards domestic sourcing and refining capabilities.
Scott: Emphasis on energy independence is further amplified by the U S government's prioritization of securing its energy resources, which could bolster local companies like startups power <unk>.
Scott: The company is the differentiators, including its speed to market and innovative approach position it well to meet the demand for domestically refined lithium while supporting the U S energy security goals.
Scott: Tariffs are currently a major topic in the North American critical minerals market, particularly between the United States and Canada.
Roshan Pajari: With ongoing geopolitical tensions and trade negotiations, the tariff landscape is evolving fast. These tariffs may have significant implications for supply chain costs and profit margins for lithium producers in both countries. However, the U.S.'s push for energy independence could also lead to policy that favors domestic production and refinement. As a result, companies like Stardust Power, focused on North American production, may be well positioned to navigate the complexities of these tariffs and leverage them for competitive advantage. The company may elect to leverage the foreign trade zone at Port Muskogee to offset future impact from relevant tariffs, if any, and may seek to include our site in Muskogee as part of a free trade zone.
Scott: With ongoing geopolitical tension and trade negotiations the tariff landscape is evolving fast. These tariffs may have significant implications for supply chain cost and profit margins for lithium producers in both countries. However, the U S is push for energy independence could also lead.
Scott: Two policy that favors domestic production and refinement.
Scott: As a result companies like startups power focused on North American production may be well positioned to navigate the complexities of these tariffs and leverage them for competitive advantage. The company may elect to leverage the foreign trade zone at port Muskogee to offset future impact from relevant tariff.
Scott: If any and may seek to include our site in Muskogee as part of a free trade zone.
Roshan Pajari: Despite President Trump's language on EV targets, which could temporarily impact demand for lithium and other critical minerals used in EV, analysts remain optimistic about the long-term outlook for lithium in EV adoption. Global demand for lithium is expected to remain strong, driven by applications beyond just the EV market, primarily energy storage systems, or ESS. Military applications, handheld devices, and fast-track data centers, especially for AI technologies, are all emerging as significant consumers of lithium, accelerating and diversifying demand. The multitude of applications provide a strong and expanding market base for lithium, ensuring continued growth in the industry. The lithium market is currently experiencing a dynamic period of rapid driven by shifting geopolitical policies, technological advancements, and evolving supply chain needs.
Speaker Change: Despite president Trump's language on EV targets, which could temporarily impact demand for lithium and other critical minerals used in EV analyst remain optimistic about the long term outlook for lithium in EV adoption.
Speaker Change: Global demand for lithium is expected to remain strong driven by applications beyond just the EV market, primarily energy storage systems or Es sets.
Speaker Change: Military applications and devices and fast track data centers, especially for AI technologies are all emerging at significant consumers of lithium accelerating and diversifying demand the multitude of applications provide a strong and expanding market base for lithium.
Speaker Change: Ensuring continued growth in the industry.
Speaker Change: The lithium market is currently experienced a dynamic period of rapid change driven by shifting geopolitical policies technological advances advancements and evolving supply chain needs. As a result startup power is maintaining close connections with policymakers and industry.
Roshan Pajari: As a result, Stardust Power is maintaining close connections with policymakers and industry leaders in Washington, D.C. to stay ahead and influence regulatory changes and cultivate strategic alliances. This proactive approach not only ensures the company's interests are aligned with national policies, but also helps establish valuable relationships that could open doors for government support or public-private partnerships. Currently, the lithium and critical minerals market is entering an exciting and complex phase with both challenges and opportunities on the horizon. With its unique position, differentiated business model, and focus on speed to market, Stardust Power is well positioned to capitalize on these trends as the industry evolves.
Speaker Change: Leaders in Washington D. C to stay ahead and influence regulatory changes and cultivate strategic alliances. This proactive approach not only ensures the company's interests are aligned with national policies, but also helps establish valuable relationships that could open doors for government support.
Speaker Change: <unk> or public private partnerships.
Speaker Change: Currently the lithium and critical minerals market is entering exciting and complex space with both challenges and opportunities on the horizon.
Speaker Change: With its unique position differentiated business model and focus on speed to market start as power is well positioned to capitalize on these trends as the industry evolves.
Roshan Pajari: Turning to some recent announcements and updates, we have been busy. On December 17th, we announced the purchase of our construction ready 66 acre site in Muskogee, Oklahoma, which includes a right of first refusal on an additional 48. We have secured the necessary stormwater discharge permit and are clear to begin construction. We are in the process of air permitting. The Oklahoma Department of Environmental Policy has approved our stormwater pollution prevention plan. We have applied for and received the administrative approval for our air permit, obtained a permit number, and await the technical approval for the same, putting us on track for final approval.
Speaker Change: Turning to some recent announcements and updates we have been busy.
Speaker Change: On December 17th we announced the purchase of our construction ready 66 acre site in Muskogee, Oklahoma, which includes a right of first refusal on an additional 40 acres, we have secured the necessary storm water discharge permit and are cleared to begin construction.
Speaker Change: We are in the process of air permitting.
Speaker Change: The Oklahoma Department of Environmental policy has approved our storm water pollution prevention plan, we have applied for and received the administrative approval for our air permit obtained a permit number and await the technical approval for the same code is putting us on track for final approvals are refineries does.
Roshan Pajari: Our refinery is designed to be only a minor source of air. and if such is aligned with our sustainability goals. We do not anticipate substantial regulatory.
Speaker Change: <unk> to be only a minor source of air emissions and as such is aligned with our sustainability goals, we do not anticipate substantial regulatory resistance.
Roshan Pajari: Our team marked the start of the new year with our groundbreaking ceremony on January 22nd in Muskogee. marking a major milestone in the company's history. We reached this point in less than one year of being a publicly traded. It was a well attended event marking the start of a brilliant with key local and state officials, including Lieutenant Governor Matt Pinnell, Mayor Patrick Kahle, and former Mayor Marlon Coleman in attendance. This ceremony represents the beginning of a project that will not only support America's transition to energy independence, but also create hundreds of well-paying jobs and boost Oklahoma's economy.
Speaker Change: Our team Mark the start of the new year with our groundbreaking ceremony on January 22nd in Muskogee.
Marking a major milestone in the company's history. We reached this point in less than one year of being a publicly traded company. It was a well attended event, marking the start of a brilliant future.
Speaker Change: With key local and state officials, including Lieutenant Governor, Matt to know Mayor, Patrick Hale and former Mayor Marlin Coleman and attendance. This ceremony represents the beginning of a project that will not only support Americas transition to energy independence would also create hundreds of well paying jobs and booth.
Roshan Pajari: For Stardust Power, this marked the start of initial groundwork in preparation for heavy construction. We have seen tremendous support from the community for our project, for which we are extremely grateful, and we look forward to advancing our strategic and operational plan for the year.
Speaker Change: Oklahoma economy.
Speaker Change: For start ups power. This mark the start of initial groundwork in preparation for heavy construction, we are seeing tremendous support from the community for our project for which we are extremely grateful and we look forward to advancing our strategic and operational plan for the year.
Roshan Pajari: We were delighted to announce our agreement with Sumitomo Corporation. The offtake agreement outlines a potential long-term supply deal for 20,000 metric tons of lithium carbonate annually, with the possibility of increasing that amount to 25,000 metric tons, which represents 80 or up to 100 percent of our first line of production, or a total of 40 percent or up to 50 percent of our total projected 50,000 metric tons per annum capacity. The deal spans 10 years with an option for Sumitomo to extend to 15 years. Pricing will be based on market rates published by FastMarkets or another mutually recognized price reporting agency, and includes provisions that would allow parties to adjust pricing as necessary to accommodate specific customers.
Speaker Change: We were delighted to announce our agreement with Sumitomo Corporation.
Speaker Change: Off take agreement outlines a potential long term supply deal for 20000 metric tons of lithium carbonate annually with the possibility of increasing that amount to 25000 metric tons, which represents 80 or up to 100% of our first line of production or a total of four.
Speaker Change: <unk> percent or up to 50% of our total projected 50000 metric tons per annum capacity.
Speaker Change: The deal spans 10 years with an option for Sumitomo to extend to 15 years pricing will be based on market rates published by fast markets Orient other mutually recognize price reporting agency and includes provisions that would allow parties to adjust pricing as necessary to accommodate specific customers.
Roshan Pajari: Sumitomo is one of the largest trading houses globally, and this agreement struck with Sumitomo creates a strong strategic partnership. They add value in multiple ways and are a great partner for us. We are proud to be working together while this agreement was non binding.
Speaker Change: Sumitomo is one of the largest trading houses globally and this agreement struck with Sumitomo creates a strong strategic partnership.
Speaker Change: Add value in multiple ways and are a great partner for US we are proud to be working together. While this agreement was non binding we are working towards signing a definitive agreement for the full details. Please see our corresponding 8-K filing.
Roshan Pajari: We are working towards signing a definitive.
Roshan Pajari: For the full details, please see our corresponding 8K files.
Roshan Pajari: We made a preliminary announcement on October 8th, 2024, regarding licensing concentration technologies belonging to KMX technology. We are happy to say all terms were agreed and the definitive agreement was signed on February 10th, which now gives Stardust Power exclusive access to KMX's Advanced Vacuum Membrane Distillation, or VMD, technology across the U.S., Canada, and select international markets for the field of lithium. This technology may help Stardust Power reduce energy consumption, water usage, and logistics costs by efficiently concentrating lithium feedstocks, while also enhancing sustainability in our operation. By incorporating VMD, we aim to improve the economic and environmental performance of our lithium production.
Speaker Change: We made a preliminary announcement on October eight 2024 regarding licensing concentration technologies belonging to <unk> technologies. We are happy to say alternatives were agreed in the definitive agreement was signed on February 10th, which now gives startup <unk> our exclusive <unk>.
Speaker Change: Says to K Amex's advanced that new membrane distillation or BMD technology across the U S, Canada and select international markets for the field of lithium.
Speaker Change: This technology may help startup or reduce energy consumption water usage and logistics cost.
Speaker Change: Efficiently concentrating lithium feedstocks, while also enhancing sustainability in our operations.
Speaker Change: By incorporating in BMD, we aim to improve the economic and environmental performance of our lithium production. We are excited to have this technology added to our tech stack as we continue to execute our operational claiming.
Roshan Pajari: We are excited to have this technology added to our tech stack as we continue to execute our operational plan.
Roshan Pajari: turning to business up.
Speaker Change: Turning to business updates.
Roshan Pajari: Primera USA continues to progress the FFEL Level 3 study, a.k.a. our Definitive Feasibility Study. We are now 8 months into the study and around 98% of the engineering study has been completed. The process design in CAPEX draft has been completed and work towards the final report is underway. In December, the Milestone 2 model review was held and reconciled Milestone 1 model review comments. Milestone Model 3 has been completed and the layout is locked for the Fel-3 FPV. In addition, what if process review and risk workshops were completed, which identified and addressed potential risks to the project?
Speaker Change: Primary USA continues to progress that fell level III study 8-K, our definitive feasibility study. We are now eight months into the study and around 98% of the engineering study has been completed.
Speaker Change: Process design in Capex dropped has been completed and work towards the final report is underway in.
Speaker Change: In December the milestone to model review withheld and reconciled milestone one model review comments <unk>.
Speaker Change: While stone model III has been completed and the layout is locked for the <unk> III effort.
In addition, what if process to review and risk workshops were completed which identified and addressed potential risks to the project.
Roshan Pajari: Stardust Power, on November 26, 2024, received an executed permit from the Oklahoma Department of Environmental Quality Authorization to discharge under the OPDES Stormwater Construction General Permit OKR10. The OKR10 permit allows owners or operators of construction sites to discharge stormwater runoff, provided they comply with specific requirements to minimize pollution and environmental impact.
Speaker Change: Start ups power on November 26, 2024 received an executed permit from the Oklahoma Department of environmental quality authorization to discharge under the ETE as storm water construction general permits okay are ones Euro b, Okay are one.
Speaker Change: Zero permit allows owners or operators of construction site to discharge storm water runoff provided they comply with specific requirements to minimize pollution and environmental impact. In addition to permitting activities. This site S. W. P. P. P plan storm water.
Roshan Pajari: In addition to permitting activities, the Site SWPPP Plan, Stormwater Pollution Prevention Plan, has been finalized and approved.
Speaker Change: Pollution prevention plan has been finalized and approved the month of December 2024 included efforts for the Oklahoma Air permitting.
Roshan Pajari: The month of December 2024 included efforts for the Oklahoma Air Permitting. Third Branch Engineering and Primera Group, working with Stardust Power, have progressed the application and data to internal reviews data. Once reviewed, the air permit application will advance to the Oklahoma Department of Environmental Quality Administrative Review Process.
Speaker Change: Third branch engineering and primary group working with start ups power have progressed, the application and data to internal reviews status.
Speaker Change: Once reviewed the air permit application will advance to the Oklahoma Department of environmental quality administrative review process.
Roshan Pajari: In recent months, Stardust Power has participated in key national, local, and state-level events such as PDAP, Port Muskogee Business and Industry Awards, the Oklahoma Business Roundtable, the Environmental Federation of Oklahoma Annual Meeting and Trade Show, and the Federal Reserve Annual Energy and Economy.
Speaker Change: In recent months startup power. It has participated in key national local and state level events, such as Pete at Port Muskogee business and industry Awards, the Oklahoma business round table, the environmental Federation of Oklahoma annual meeting and Tradeshow.
Speaker Change: And the Federal reserve annual energy and economy meeting.
Roshan Pajari: Turning to upcoming engineering milestones, we are progressing to the completion of the FEL3 study and into the final FEL report followed by FIDA. We have been working with our lead financial advisor, MUFT, for the refinery project finance for both debt and equity. We are working to complete the accompanying reporting materials for institutional investors. We are sharply focused on risk removal through value engineering and taking advantage of the local and state contracting and service providers, along with guidance and action from local and state government.
Speaker Change: Turning to upcoming engineering milestones, we are progressing to the completion of the <unk> III study and into the final fell report followed by <unk>.
Speaker Change: Efforts, we have been working with our lead financial advisor <unk> for the refinery project finance for both debt and equity we are working to complete the accompanying reporting materials for institutional investors.
Speaker Change: We are sharply focused on risk removal through value engineering, and taking advantage of the local and state contracting and service providers, along with guidance and action from local and state governments.
Roshan Pajari: We are excited to announce three additions to the Stardust Power. First, Chris Solano joins us as Chief Operating Officer. With over 20 years of experience in executive leadership, particularly in the energy sector, Chris brings a wealth of expertise to our team, having previously served as the president and CEO of IHI E&C International Corporation. He holds a law degree and is a graduate of the prestigious MIT, which complements his broad experience in the legal, energy, and engineering Chris brings extensive international experience in the oil and gas industry with a strong background in drilling operations management, technology, and well site development.
Speaker Change: We are excited to announce the REIT editions to the startup of our team.
Crystal Onno: Crystal Onno joins us as Chief operating officer with over 20 years of experience in executive leadership, particularly in the energy sector, Chris brings a wealth of expertise to our team having previously served as the president and CEO of IHI E&C International corporate.
Speaker Change: <unk>.
Speaker Change: He holds a law degree and is a graduate of the prestigious might see which compliments his broad experience in the legal energy and engineering sectors Chris.
Speaker Change: Chris brings extensive international experience in the oil and gas industry with a strong background in drilling operations management technology, and well site developments in his new role he will oversee the company's refinery development and the upstream lithium supply initiatives and processing operations.
Roshan Pajari: In his new role, he will oversee the company's refinery development and the upstream lithium supply initiatives and processing operations, including discussions around sourcing and site development. He is instrumental in advancing operational efficiency and driving the growth of our lithium projects as we continue to scale.
Including discussions around sourcing and site development. He is instrumental in advancing operational efficiency and driving the growth of our lithium projects as we continue to scale.
Roshan Pajari: Secondly, in the finance team, we are pleased to welcome Nithya Ramesh as an accounting manager. Nithya is a certified public accountant with over eight years of experience in external audits, financial accounting, and internal controls, having worked with leading firms like Grant Thornton, Deloitte, and AMD. At Stardust Power, Anithya will leverage her extensive background to enhance financial operations and contribute to the company's continued growth and success.
Speaker Change: Secondly, and the finance team we are pleased to welcome <unk> Ramesh as an accounting manager Nip yet is a certified public accountant with over eight years of experience in external audits financial accounting and internal controls having worked with leading firms like grant <unk>.
Speaker Change: Deloitte and Ey MTV.
Speaker Change: At startup powered lithium will leverage her extensive background to enhance financial operations and contribute to the company's continued growth and success.
Roshan Pajari: Third, we are pleased to welcome Martin Buttenshaw to our board of directors. With extensive experience in the metals and mining industry, Martin has held leadership roles at companies like McKay Precious Metals and Paula Investments. His track record in driving growth, overseeing strategic initiatives, and leading transformation in the mining and raw materials supply chain. particularly for electric vehicles and renewable energy sectors will be valuable as Stardust Power aims to scale and innovate in the lithium industry.
Speaker Change: Third we are pleased to welcome Martin Buttony Shaw to our board of directors with extensive experience in the metals and mining industry. Martin was held leadership roles at companies like Mckay precious metals and Paula investments his track record in driving growth overseas.
Speaker Change: Strategic initiatives and leading transformation in the mining and raw material supply chain.
Particularly for electric vehicles, and renewable energy sectors will be valuable as startup power aims to scale and innovate in the lithium market.
Roshan Pajari: During the quarter, we raised. a total of $4.1 million of capital, $3.55 million in debt, and $550,000 in a pipe offering, which were both accompanied by some stock and cash warrants. We were also able to raise $5.75 million via a public offering with a large institutional holder in January 2025. and an additional $2.9 million in March 2025 through a warrant inducement with that investor. We have been thoughtful of capital allocation so as to balance shareholder dilution and current cash needs to take us through the FID stage.
Speaker Change: During the quarter, we raised.
Speaker Change: A total of $4 $1 billion of capital 355 million in debt and 550000 in a pipe offering which were both accompanied by some stock in cash warrants we.
Speaker Change: We were also able to raise $5 75 million public offering with a large institutional holder in January 2025.
Speaker Change: And an additional $2 9 million in March 2025 through a warrant inducement with that investor we have been thoughtful capital allocation, so as to be as to balance shareholder dilution and current cash needs to take us through the <unk> stage, who they will cover this in more.
Roshan Pajari: Uday will cover this in more detail in his remarks shortly. In recent weeks, a select number of Stardust Power insiders sold a limited number of shares to cover the tax liability associated with Vested Employee Stock Plan awards. These shares were sold pursuant to a pre-arranged 10B51 plan. In Q125, we made public filings to disclose these sales. These automated sales are designed to avoid conflicts of interest or market-timing concerns and were established before recent market changes, so they do not reflect any shift in management outlook or business fundamentals. The sales, which are a small amount relative to the total flow, were planned to be executed orderly and with minimal impact on liquidity as we remain committed to compliance, good governance, and long-term shareholder value.
Speaker Change: <unk> in his remarks shortly.
Speaker Change: In recent weeks, a select number of start ups power insiders sold a limited number of shares to cover the tax liability associated with vested employee stock plan Awards. These shares were sold pursuant to a pre arranged <unk> five one plan.
Speaker Change: In Q1, 25, we made public filings to disclose these sales.
Speaker Change: These automated sales are designed to avoid conflicts of interest or market timing concerns and were established before recent market changes. So they do not reflect any shift in management outlook our business fundamental.
Speaker Change: The sales, which are a small amount relative to the total float were planned to be executed orderly and with minimal impact on liquidity as we remain committed to compliance could governance and long term shareholder value.
Roshan Pajari: Our focus continues to be on executing our strategic initiatives and positioning Stardust Power for future growth. Management and insiders continue to be significant holders of stock and we will continue to be going forward.
Speaker Change: Our focus continues to be on executing our strategic initiatives and positioning startups power for future growth.
Speaker Change: Management and insiders continue to be significant holders of stock and we will continue to be going forward.
Roshan Pajari: Now turning to the share price, we thank all of our shareholders for their continued support and long-term belief in Stardust Power. We understand the recent volatility and price depreciation in our stock can be concerning. We believe that this decline is largely due to certain business combination dynamics. The expiry of the lockup for our initial investors, the effect of recent financing and broader market uncertainties, including political factors. and weaker sentiment in the larger macro space. This volatility is in line with trends noted with other business combinations and to be expected as old investors make way for new investors to buy into the stock and vision going forward.
Speaker Change: Okay.
Speaker Change: Now turning to the share price, we thank all of our shareholders for their continued support and long term belief in startup power.
Speaker Change: We understand the recent volatility in price depreciation in our stock can be concerning.
Speaker Change: We believe that this decline is largely due to certain business combination dynamics the expiry of the locked up for our initial investors the effect of recent financing and broader market uncertainties, including political factors.
Speaker Change: And weaker sentiment and the larger macro space.
Speaker Change: This volatility is in line with trends noted with other business combinations and to be expected as old investors make way for new investors to buy into the stock envision going forward.
Roshan Pajari: We believe that certain shareholders elected to sell creating substantial selling pressure on our stock.
Speaker Change: We believe that certain shareholders elected to sell creating substantial selling pressure on our stock does.
Roshan Pajari: Despite these challenges, I want to reassure you that the fundamentals of Stardust Power remain strong and unchanged. We continue to be laser focused on executing our business plan, and we are confident that as we reach key milestones with our project, we will create significant value for our shareholders.
Speaker Change: Despite these challenges I want to reassure you that the fundamentals of startups power remained strong and unchanged. We continue to be laser focused on executing our business plan and we are confident that as we reach key milestones with our project, we will create significant value for our shareholders.
Roshan Pajari: The true test of a great company is not how it performs in good times, but how it navigates through uncertainty and adversity.
Speaker Change: The true test of a great company is not how it performs in good times, but how it navigates through uncertainty and adversity.
Roshan Pajari: We have some exciting upcoming catalysts for the company over the next six As mentioned, Primera will complete and finalize our FEL3 engineering study, which was started in July last year, and will outline what the refinery will look like, its full spec, and cost breakdown. We continue to work with our financial advisors, MUFG, and other financing partners to line up project finance, which will culminate at FID, and then enable us to move forward and start building out phase one of our refinery, which had been previously anticipated. take 18 to 24 months to build. We will also have more updates and news on securing our upstream supply which will enable us to reach 50,000 metric tons per annum refining capacity once at full production.
Speaker Change: We have some exciting upcoming catalysts for the company over the next six months.
Speaker Change: As mentioned, primarily will complete and finalize our FPL III Engineering study, which was started in July last year, and we will outline what the refinery will look like it's full spec and cost breakdown. We continue to work with our financial advisors <unk> and other financing partners to lineup.
Speaker Change: Project Finance, which will culminate at.
Speaker Change: And then enable us to move forward and start building out phase one of our refinery which had been previously anticipated.
Speaker Change: We can take 18 to 24 months to build we will also have more updates and news on securing our upstream supply, which will enable us to reach 50000 metric tons per annum refining capacity once at full production.
Roshan Pajari: As mentioned earlier, we are not sitting still and have been busy. Our objective is speed to market and to be achieved with an optimized construction schedule, value engineering. in a stable supply chain. With that in mind, we are working day in and day out to build an ecosystem that can help us become source secure, technologically robust, and ready for the next stage of growth.
Speaker Change: As mentioned earlier, we are not sitting still and have been busy our objective is speed to market and to be achieved with an optimized construction schedule value engineering.
Speaker Change: In a stable supply chain with that in mind, we are working day in and day out to build an ecosystem that can help us become source secure technologically robust and ready for the next stage of growth.
Roshan Pajari: All of these upcoming catalysts are important for investors as they are potential inflection points to become shareholders and see additional value creation and to be part of the Stardust Power store.
Speaker Change: All of these upcoming catalysts are important for investors as they are potential inflection points to become shareholders and see additional value creation and to be part of the startup of our store.
Uday Devaspar: And with that, I now turn to Uday Devaspar, our Chief Financial Officer, for his remarks on financials. Thank you, Roshan, and good afternoon, everyone, and thank you for joining our earnings call for the year-end 2024. Before we begin, I want to clarify that we will not be providing forward-looking guidance or estimates during this call. Our focus will be on discussing our past performance and the current state of our business. We encourage you to refer to our filings with the SEC for more detailed information.
Speaker Change: And with that I'll now turn to <unk>, our Chief financial officer for his remarks on financials.
Speaker Change: Hey.
Speaker Change: Thank you Robin and good afternoon, everyone and thank you for joining our earnings call for the year end 2024 earnings.
Speaker Change: Before we begin I want to clarify that we will not be providing forward looking guidance or estimates during this call. Our focus will be on discussing our past performance and the current state of our business. We encourage you to refer to our filings with the SEC for more detailed information.
Uday Devaspar: First, a quick update on some developments from the quarter and subsequent events just after quarter. We utilized our synthetic ATM facility during Q425 and raised approximately $0.3 million at the market on high-volume trading days. This money has been used for cash reserves and to fund operations and engineering. On December 31st, 2024, the company entered into binding agreements to sell up to $550,000 in common stock and warrants to investors, with proceeds to be used for capital expenditures, working capital, and general corporate purposes.
Speaker Change: First a quick update on some developments from the quarter and subsequent events just after quarter end.
Speaker Change: We utilized our synthetic ATM facility during Q4, 'twenty five and raised approximately $3 million at the market on a high volume trading days. This money has been used for cash reserves and to fund operations and engineering expenses.
Speaker Change: On December 31, 2024, the company entered into binding agreements to sell up to $550000 in common stock and warrants to investors with proceeds to be used for capital expenditures working capital and general corporate purposes.
Uday Devaspar: Additionally, the company entered into binding term sheets with lenders to borrow $3.55 million, secured by shares from the company's founders, which have been repaid subsequently year-end, which puts the company in a debt-free position as As mentioned earlier by Roshan, subsequent to the year end, we engaged Alliance global partners on a reasonable best efforts basis, who raised a total of $5.75 million in a follow on public offering with the investment coming from one large institution. The funding represented 4.792 million shares of common stock and an offering price of $1.20 and 4.972 million cash warrants with an exercise price of $1.30.
Speaker Change: Additionally, the company entered into binding term sheets with lenders to borrow $355 million.
Speaker Change: Secured by shares from the Companys founders, which have been repaid subsequent to yearend, which puts the company in a debt free position as of date.
Speaker Change: As mentioned earlier by Russell subsequent to the yearend, we engaged alliance global partners on a reasonable best efforts basis, who raised a total of $575 million in a follow on public offering with the investment coming from one large institution investor.
Speaker Change: The funding represented.
$4 792 million shares of common stock at an offering price of $1 20, and $4 97, 2 million cash warrants with an exercise price of $1 30.
Uday Devaspar: The transaction closed on January 27, 2025, and the amount raised will be used to fund our operations and general operating costs, including short-term debt.
Speaker Change: The transaction closed on January 27, 2025, and the amount raised will be used to fund our operations and general operating costs, including short term debt repayments.
Uday Devaspar: Most recently, on March 17, 2025, Stardust Power entered into a warrant-induced agreement with an existing institutional investor for the exercise of certain outstanding common stock purchase warrants of up to 4.792 million shares at a reduced exercise price of $0.62, generating gross cash proceeds of approximately $2.9 million before fiscal year 2020. In return, the investor will receive new unregistered warrants to purchase up to 9.584 million shares at an excise price of $0.70 per share, exercisable upon stockholder approval. The new warrants will expire five years from the approval date. This arrangement allows us to monetize the warrants now for working capital and general corporate purposes.
Speaker Change: Most recently on March 17, 2025 startups power entered into a warrant inducement agreement with an existing institutional investor for the exercise of certain outstanding common stock purchase warrants of up to $4 79, 2 million shares at a reduced exercise price of 62 cents.
Speaker Change: Generating gross cash proceeds of approximately $2 $9 million before fees.
Speaker Change: In return the Investor will receive new unregistered warrants to purchase up to $9 584 million shares at an exercise price of 70 cents per share exercisable upon stockholder approval, the new warrants will expire five years from the approval date.
Speaker Change: This arrangement allows us to monetize the warrants now for working capital and general corporate purposes.
Uday Devaspar: The transaction is closed and the funds were received March 18, 2025 and are subject to customary closing.
Speaker Change: The transaction is closed and the funds. We received March 18, 2025 and are subject to customary closing conditions.
Uday Devaspar: In January, we received new equity research coverage by AGP, and more recently, in March of 2025, by Maxim Investments. This brings our equity research coverage to five analysts, for which we are grateful for their work and interest in following the story and distribution to their retail and institutional.
Speaker Change: In January we received new equity research coverage by ADP and more recently in March of 2025 by Maxim investment Bank.
Speaker Change: This brings our equity research coverage to five analysts for which we are grateful for their work and interest in following the story and distribution to their retail and institutional audience.
Uday Devaspar: In December 2024, the company acquired 10 million ordinary shares of Iris Metals Ltd, representing over 5% of the equity in the ASX-listed company for $1.6 million. This investment positioned the company to explore potential strategic partnerships, including a commercial offtake arrangement for intermediary lithium feedstock financing or other investments in Iris Metals.
Speaker Change: In December 2024, the company acquired 10 million ordinary shares of Iris metals limited representing over 5% of the equity in the ASX listed company for $1 $6 million.
Speaker Change: This investment positions the company to explore potential strategic partnerships, including a commercial offtake arrangement for intermediary lithium feedstock financing or other investments and artist metals and its affiliates.
Uday Devaspar: As of December 31, 2024, no formal off-take agreement has been executed and no significant due diligence expenses have been incurred for the Now turning to the financials for the full year 2024, the company is pre-revenue currently. As previously reported in our filings, our ability to meet working capital and capital expenditure requirements for the next 12 months is dependent upon our plan to raise additional capital from issuance of equity or receive additional borrowings to fund the company's operating and investing activities over the next 12 months. As of December 31, 2024, we had cash and cash equivalents of 0.9 million dollars on hand compared to 1.3 million dollars as of December 31, 2024.
Speaker Change: As of December 31, 2024, no formal offtake agreement has been executed and no significant due diligence expenses have been incurred for the year.
Speaker Change: Now turning to the financials for the full year 2024. The company is pre revenue guarantee as previously reported in our filings our ability to meet working capital and capital expenditure requirements for the next 12 months is dependent upon a plan to raise additional capital from issuance of equity or receive additional borrowings to fund the company's operating it.
Speaker Change: Investing activities over the next year.
Speaker Change: As of December 31, 2024, we had cash and cash equivalents of $9 million on hand, compared to $1 3 million as of December 31, 2023.
Uday Devaspar: As of the current year-end, we had no long-term... For the year ended December 31, 2024, i.e., the current fiscal year, the company incurred a net loss of $23.8 million compared to the period from March 16, 2023 inception date through December 31, 2023, i.e., the prior period, the company incurred a net loss of $3.8 million. Since the company is yet to start commercial production of battery-grade lithium, the operating expenses are expected to increase as the company starts to recruit more personnel to perform general operational tasks and set up the facility. We have devoted substantial efforts and financial resources to raising capital and organizing and staffing the company, and as a result, have incurred significant operating costs.
Speaker Change: As of the current year, and we had no long term debt.
Speaker Change: For the year ended December 31, 2024, I E. The current fiscal year, the company incurred a net loss of $28 million.
Speaker Change: Compared to the period from March 16, 2023 inception date through December 31, 2023, I E. The prior period the company incurred a net loss of $3 $8 million.
Speaker Change: Since the company is yet to start commercial production of battery grade lithium the operating expenses are expected to increase as the company starts to recruit more personnel to perform general operational tasks and set up the facility.
Speaker Change: We have devoted substantial efforts and financial resources to raising capital and organizing and starting the company and as a result have incurred significant operating losses.
Uday Devaspar: As of December 31, 2024 and December 31, 2023, we had an accumulated deficit of $52.6 million and $3.8 million. Loss per share was $0.55 for the current year, compared to $0.09 for the prior period, driven primarily by higher general and administrative costs due to personnel-related costs and finance charges for short-term loss. Net cash used in operating activities totaled $9.7 million for the current fiscal year, compared to $3 million for the prior period, driven by continued investment in operations, hiring of key talent, and certain expenses related to the close of the business combination. Net cash used in investing activities was $4.8 million for the current fiscal year compared to $0.3 million for the prior period, driven by purchase of land, engineering, our initial capital investments made in the anticipated building of the refinery, strategic investments, and problem-free notes given to our partners.
Speaker Change: As of December 31, 'twenty 'twenty, four and December 31 freight train three we had an accumulated deficit of $62 6 million and $3 8 million respectively.
Speaker Change: Loss per share was <unk> 55 for the current year compared to <unk> <unk> for the prior period, driven primarily by higher general and administrative costs due to personnel related costs and finance charges for short term loans.
Speaker Change: Net cash used in operating activities totaled $9 $7 million for the current fiscal year compared to $3 million for the prior period driven by continued investment in operations hiring of key talent and certain expenses related to the close of the business combination.
Speaker Change: Net cash used in investing activities was $4 8 million for the current fiscal year compared to <unk> 3 million for the prior period driven by the purchase of land engineering. Our initial capital investments made in the anticipated building of the refinery strategic investments and promissory notes given to a Barclays.
Uday Devaspar: Net cash provided by financing activities was $14.1 million for the current fiscal year compared to $4.5 million for the prior period. The increase was driven primarily by $11.6 million in cash received from subscription agreements entered around the time of closing of the business combination, short-term loans and exercise of our warrants. We use the funds to meet our working capital needs and pay for some of the transaction costs related to the business combination.
Speaker Change: Cash provided by financing activities was $14 1 million for the current fiscal year compared to $4 5 million for the prior period. The increase was driven primarily by $11 6 million in cash received from subscription agreements entered around the time of closing of the business combination short term loans and exercise of ours.
Speaker Change: Use the funds to meet our working capital needs and pay for some of the transaction costs related to the business combination.
Uday Devaspar: Our business is moving forward with significant speed and momentum, which our recent announcements demonstrate. We are confident as we continue to bring our facility closer and closer to commissioning that we will add shareholder value. The best path forward is to continue to execute our business.
Speaker Change: Our business is moving forward with significant speed and momentum which are recent announcements demonstrate we are confident as we continue to bring our facility closer and closer to commissioning that we will add shareholder value. The best path forward is to continue to execute our business plan and that concludes my remarks, and I'll turn it back to Russia.
Roshan Pajari: And that concludes my remarks and I turn it back to Rosh. Thanks, Uday. With that, we are now happy to take your questions.
Speaker Change: Thanks, Sue them with that we are now happy to take your questions operator.
Operator: Operator. Certainly. And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone.
Speaker Change: Certainly and as a reminder, ladies and gentlemen, if you do have a question at this time. Please press star one on your telephone.
Henry Hurrell: And our first question comes from the line of Nick Giles from B Reilly Securities. Your question please. And good afternoon, everyone.
Speaker Change: And our first question comes from the line of Nick <unk> from B Riley Securities. Your question. Please.
Henry Hurrell: This is Henry Hurrell asking questions on behalf of Nick Giles. I wanted to start by asking about the lithium markets in general. And so we're obviously in a challenging market environment for lithium pricing. So in your view, what are the necessary factors needed to see a recovering in pricing? And then what are also your expectations for supply and demand dynamics in 2025 and 2026? And then also in 2027, when you expect to start commercial production? And Ferocian has rejoined. We have Nick Giles, B. Reilly, securities in the queue. Nick, could you repeat your question? Sure, this, can you hear me?
Speaker Change: And good afternoon, everyone. This is Henry Harrow asking questions on behalf of Nik Giles.
Speaker Change: I wanted to start by asking about the lithium markets in general and so we're obviously in a challenging market environment for lithium pricing. So in your view what are the necessary factors needed to see recovering in pricing and then what are also your expectations for supply and demand dynamics in 2025 and 2026 and then also on <unk>. When do you expect to start commercial production.
Speaker Change: <unk>.
Speaker Change: And for <unk>, It's Richard.
Speaker Change: We have Nick <unk> B Riley securities in the queue, Nick could you repeat your question.
Speaker Change: Sure can you hear me.
Henry Hurrell: Yes. All right. Thank you, operator.
Speaker Change: Yes.
Roshan Pajari: This is Henry Hurl on behalf of Nick Giles today. So I wanted to start by asking about the lithium markets in general. So obviously, we're in a challenging market environment for lithium pricing currently. So in your view, what are the necessary factors needed to see recovery in pricing? And then what are your expectations for supply and demand dynamics in 2025 and 2026? And then also in 2027, when you expect to start commercial production? Thank you.
Henry Hurdle: Alright. Thank you operator this is Henry hurdle on behalf of Nik trials today.
Henry Hurdle: So I wanted to start by asking about the lithium markets in general. So obviously, we're in a challenging market environment for lithium pricing currently.
Henry Hurdle: What are the necessary factors needed to see a recovery in pricing.
Henry Hurdle: What are your expectations for supply and demand dynamics in 2025, and 2026 and also entering 2007 when do you expect to start commercial production.
Roshan Pajari: Hi, Henry. Thanks so much for your question and your patience while I had a little bit of technical difficulty, and thanks for the question. So there has been a lot of speculation on the current lithium price market. Some would say that there is oversupply in the market as China ramped up production, but that is a hard position to fully understand as there is limited information from the Chinese market on production. Others might argue that there is some sort of price manipulation on the market as China seeks to fend off future competitions by keeping supply prices low during this period.
Henry Hurdle: Hi, Henry Thanks, So much for your question and your patience, while I had a little bit of technical difficulty and thanks for the question. So there has been a lot of speculation on the current lithium price market. Some would say, but there is oversupply in the market as China ramped up production, but that is a hard position too.
Henry Hurdle: Fully understand as there is limited information from the Chinese market on production others might argue that there is some sort of price manipulation on the market as China seeks to fend off future competitions by keeping surprised supply.
Henry Hurdle: Prices are low during this period, but what we can say for sure is that there is consensus about demand for battery grade lithium, especially in 2026 in 2027 and that's when we see prices really start to rebound, although there has been slight improvement in 2025.
Henry Hurrell: But what we can say for sure is that there is consensus about demand for battery-grade lithium, especially in 2026 and 2027. And that's when we see prices really start to rebound, although there has been slight improvement in 2025. 2025 may continue to be a little bit choppy, but we see substantial demand. And as mentioned, that demand is now being diversified from not only EVs, but into ESS systems for data storage, for example. So the demand for lithium continues to grow and to diversify. So as mentioned, we see prices really rebounding in 2026 and continuing to improve in 2027, closely aligned with the timeline of our refinery.
Henry Hurdle: 2025 may continue to be a little bit choppy, but we see substantial demand and as mentioned that demand is now being diversified.
Henry Hurdle: Not only evs, but into.
Henry Hurdle: SaaS systems for data storage for example, so the demand for lithium continues to grow and to diversify so as mentioned, we see price says really rebounding in 2006 and continuing to improve in 2007 closely aligned with the timeline of our refinery.
Henry Hurrell: Great, thanks for the color there.
Henry Hurrell: And then for my second question, it's mostly around the EV markets, which have been recently in the headlines with BYD announcing the launch of its fast charging system. So obviously this new development should increase EV adoption rates, but then what does it mean for the US EV market and then for domestically produced lithium? Thanks.
Speaker Change: Great. Thanks for the color there and then for my second question sort of surrounding.
Around the EV markets, which has been recently in the headlines with BYD announcing the launch of its SaaS charging system. So obviously this new development should increase EV adoption rates, but then what does it mean for the U S. <unk> market and then for domestically produced lithium thanks.
Roshan Pajari: Yeah, thanks for the question again. So, the EV adoption rate is in the conversation quite a lot, but month over month, quarter over quarter, year over year, there continues to be more EV sold and we see this, this demand only increasing. Further improvements in infrastructure, such as, as you mentioned, the charging infrastructure will only help EV demand and continued adoption. So, even in 2030 to 2035, if we see one of new, one of every three new cars sold, that creates substantial demand, which will most certainly outpace supply. Got it.
Speaker Change: Yes. Thanks for the question again, so the EV adoption rate is in the.
Speaker Change: Conversation quite a lot, but month over month quarter over quarter year over year. There continues to be more EV sold and we see this.
Speaker Change: This demand only increasing.
Speaker Change: Further improvements in infrastructure, such as as you mentioned the charging infrastructure will only help EV demand and continued adoption. So even in 'twenty 30 to $20 35, if we see one new one of every three new cars sold that create substantial.
Speaker Change: A manned which will most certainly outpaced supply.
Henry Hurrell: Thanks for the commentary and continued best of luck. Thank you, Henry. Thank you.
Speaker Change: Got it thanks for the commentary and continued best of luck.
Speaker Change: Henry.
Jake Sikielski: And our next question comes from the line of Jake Sikielski from Alliance Global Partners. Your question, please. Hi guys, thanks for taking my question. Hi, Jake. Thanks for being here today. Sure.
Speaker Change: Thank you and our next question comes from the line for.
Koski: Koski from Alliance Global Partners. Your question. Please.
Koski: Hi, guys. Thanks for taking my questions.
Speaker Change: Hi, Jeff Thanks for being here today.
Roshan Pajari: So just looking at the KMX licensing agreement, now that that exclusive license is in hand, are there any plans for additional test work there, or what are the next steps as far as that partnership goes? Yeah, with the KMX technology? Yeah, that's an agreement that we're really excited about to have exclusive concentration technology for the lithium field of use as a hub-and-spoke refinery. Thank you. Okay, that's helpful.
Koski: Sure. So just looking at the cannon.
Koski: Licensing agreement.
Koski: Now that that exclusive licenses in hand is there any plans for additional test work there or what are the next steps as far as that partnership cost yes.
Koski: With a K amex technologies.
Koski: Yeah.
Koski: Yes, that's the agreement that we're really excited about to have exclusive concentration technology for the lithium fields of use as a hub and spoke.
Koski: Okay.
Koski: Yes.
Koski: Okay.
Koski: Okay.
Koski: Reports on form.
Koski: Okay.
Koski: Okay.
Koski: Okay.
Koski: Okay.
Koski: Okay.
Koski: So sorry about that.
Koski: Yes.
Koski: Okay.
Koski: Okay.
Koski: Thanks.
Koski: Okay Brian.
Koski: Right.
Koski: Okay.
Koski: Okay.
Koski: Yes.
Roshan Pajari: In building on that a little bit, can you touch on your sort of medium and long-term feedstock procurement strategy and provide any color that you're able to on that front? Yes, happy to. You know, as disclosed previously, we control over 38,000 acres of premium brine assets in North America, primarily in the Southwest that we see as a potential sources of our supply, along with that, you know, which we can develop and co-develop with strategic partners. Along with that, we have been very aggressive in upstream investments, where we have made investments, as mentioned, into IGX, IGL, Jackpot Lake as part of USHA resources.
Koski: Okay, that's helpful and building on that a little bit.
Koski: Can you touch on your sort of medium and long term feedstock procurement strategy and provide any color that you're able to.
Koski: On that front.
Koski: Yes happy to.
Koski: As disclosed previously we control over 38000 acres of premium Brian assets in North America, primarily in the southwest that we see as a potential sources of our supply along with that which we can develop and co develop with strategic partners along with that we had been very.
Speaker Change: <unk> and upstream investments, where we have made investments as mentioned into ax.
Speaker Change: Ex Igl jackpot from jackpot Lake as part of a shared resources. So we have been continuing to source feedstock from multiple sources.
Jake Sikielski: So we have been continuing to source feedstock from multiple sources. We've also been very about securing from near-term producers, and I look forward to sharing some more information on that as it becomes publicly available. Okay, that's all for me. Thanks again. Thanks, Jake.
Speaker Change: We've also been very diligent about securing from near term producers and I look forward to sharing some more information on that as it becomes publicly available.
Perfect. Okay. That's all from me Thanks again.
Greg Mesnief: Thank you. And our next question comes from the line of Greg Mesnief from Kingswood Capital Partners. Your question, please. Yes, thank you. Question for you, Roshan. Regarding your, um... your feedstock situation. I'm wondering how the impact of freight costs, which are rising, different ways in different places. How that would impact your operational outlook? Have you modeled any, what kind of price increases on on on freighting the feedstock have you factored in? And also the same pricing on logistics and transportation for the output of lithium as well. Thank you.
Jay: Thanks Jay.
Speaker Change: Thank you and our next question comes from the line of Greg Macneil from Kingsford Capital Partners. Your question. Please yes. Thank you.
Jay: For your erosion.
Jay: Regarding.
Jay: Your.
Jay: Your feedstock.
Jay: Situation I'm wondering how.
Jay: The impact of.
Jay: Freight costs, which are rising.
Jay: Different ways in different places.
Jay: How that would impact you.
Jay: Our operational outlook, our view model.
Jay: What kind of.
Jay: Price increases on.
Jay: Writing the feed.
Jay: <unk> stock have you.
Jay: Factored in also.
Jay: Sure.
Jay: The same pricing.
Jay: Logistics.
Jay: In transportation for the.
Jay: The output lithium as well thanks.
Roshan Pajari: Sure. Thanks, Greg. And thanks for joining our call today. And a good question. So, you know, I think that should be understood that the question of logistics should be understood in the current context of global lithium refinery, where up to 85% of lithium feedstocks are sent back to China for refinement, and then to the OEMs, if not in China. So, in that context, from creating a North American ecosystem for both raw materials and refining, we see the potential significant savings versus other competitors who have to transport their goods to China. Also, as mentioned earlier, the exclusive VMD technology from KMX Technology gives us the opportunity to reduce the freight loads by concentrating the lithium brine stock substantially to reduce how much that we have to move.
Jay: Sure Thanks, Craig and thanks for joining our call today and a good question. So I think that should be understood. The question of logistics should be understood in the current context of global lithium refinery where up to 85% of lithium feedstocks are sent back to China for refinement and then to the <unk>.
Jay: Oems if not in China, so in that.
Jay: In that context from creating a north American ecosystem for both raw materials and refining we see the potential significant savings versus other competitors, who have to transport their goods to China also as mentioned earlier the exclusive <unk> technology from TK Maxx.
Jay: <unk> gives us the opportunity to reduce the freight loads by concentrating the lithium brines Brian stock.
Jay: <unk> to reduce how much that we have to move as part of our fell three engineering studies, we did detailed estimate of logistics freight and transportation and we look forward to sharing more information on that report as it becomes public as well.
Greg Mesnief: As part of our fell three engineering studies, we did detailed estimates of logistics, freight, and transportations, and we look forward to sharing more information on that report as it becomes public as well. Okay, great. Thanks for the call. That's all I have right now. Thank you, Greg.
Jay: Okay, great. Thanks for the color that's all I have right now thank you Greg.
Operator: Thank you.
Operator: And as a reminder, ladies and gentlemen, if you do have a question at this time, please press star 11 on your telephone.
Speaker Change: Thank you and as a reminder, ladies and gentlemen, if you do have a question at this time. Please press star one on your telephone. Our next question comes from the line of Tate Sullivan from Maxim Group. Your question. Please.
Tate Sullivan: Our next question comes in line of Tate Sullivan from Maxim Group. Your question, please. Thank you. Good evening. You have some good background on the KMX vacuum membrane distillation technology.
Tate Sullivan: Thank you good evening.
Tate Sullivan: You had some good background on the comex vacuum membrane distillation technology will that be eventually used exclusively at the location.
Roshan Pajari: Will that be eventually used exclusively at the location of the lithium brine production as opposed to at your facility in Oklahoma, please? Sure, good question. And thanks for being here today, Tate. And while our first use for it would be closer to the wellhead from an upstream perspective, concentrating the lithium feedstock, there are opportunities to use it across the flow sheet that we will continue to explore and look. Other lithium companies have used it in their refining process to recycle water, and there can be an opportunity for that as well. But our focus will really be focused on concentration of feedstock.
Tate Sullivan: The lithium brine production as opposed to at your facility in Oklahoma.
Tate Sullivan: Sure.
Tate Sullivan: Sure Good question and thanks for being here today.
Tate Sullivan: Our first use for it would be closer to the wellhead from an upstream perspective, concentrating the lithium feedstock there are opportunities to use it across the flow sheet that we will continue to explore and look other lithium companies have used it in their refining process to recycle water.
Tate Sullivan: There can be an opportunity for that as well.
Tate Sullivan: We'll really be focused on concentration of feedstock.
Roshan Pajari: Was the KMX technology, was this part of Primero's engineering study for you? Did you work on Primero looking at potential technology partnerships, or was this your own initiative? Primero did look at a lot of potential technology partnerships. Our relationship with KMX predates our engagement with Primero. So we have been tracking this technology for a long time now. In 2024, we signed an MOU with KMX Technology, giving us the opportunity to perform extensive due diligence and really understand their technology. So our agreement was a culmination of years of work. And I believe Primero also took a look at them from a due diligence perspective.
Speaker Change: Okay, and then what was the.
Speaker Change: Capex technology with this park, primarily engineering study for you.
Speaker Change: Did you work on primarily looking at potential technology partnerships this year on initiatives.
Speaker Change: Our primary how did look at a lot of potential technology partnerships, our relationship with K Max predates our engagement with primarily so we have been tracking this technology.
Speaker Change: For a long time now in 2024, we signed an Mou with Amex technology, I'm, giving guests the opportunity to perform extensive due diligence and really understand their technology. So our agreement with the culmination of years of work and I believe quite narrow also took a.
Speaker Change: I look at them from a due diligence perspective. So we are very happy with the way the agreement turned out and the way the technology performs.
Roshan Pajari: So we are very happy with the way the agreement turned out and the way the technology Another question about your land footprint in Oklahoma. I know you have options to purchase additional acres. Is your current footprint where you've spent already on the land enough for the first phase of development or do you need to exercise the options to buy more land this year? Yeah, we believe and as we believe will be concurred by our fell three engineering study that the first 66 acres is enough for phase one, phase two and beyond if we so choose.
Speaker Change: And then.
Speaker Change: Another question about your land footprint in Oklahoma.
Speaker Change: I know you have options to purchase additional acres.
Speaker Change: Our current footprint, where you've spent already on the land enough for the first phase of development.
Speaker Change: Or do you need to buy exercise of options.
Speaker Change: To buy more land.
Speaker Change: We believe.
Speaker Change: We believe and as we believe will be.
Speaker Change: We concurred by our fell three engineering study that the first 66 acres is enough for phase one phase two and beyond if we so choose so choose.
Roshan Pajari: It's an excellent piece of land that can fit our existing business plan. And we always keep options, optionality open for future growth opportunities. Thank you, Roshan. Thank you, Tate. Thank you.
Speaker Change: It's an excellent piece of work and fit our existing business plan.
Speaker Change: And we always keep options optionality open for future growth opportunities.
Speaker Change: Okay. Thank you Robin thank.
Robin: Thank you Tait.
Operator: This does conclude the program. Thank you, ladies and gentlemen, for your participation. You may now disconnect.
Robin: Thank you. This does conclude the question and answer session as well as today's program. Thank you ladies and gentlemen for your participation you may now disconnect. Good day.
Operator: Good day.
Robin: Okay.
Robin: Okay.