Q4 2024 ASP Isotopes Inc Earnings Call
Good morning, Good afternoon. Good evening wherever you are in the world.
Nicole: My name is Nicole so nothing to see eye vegetable I'm delighted to welcome you to the Aspiazu types for school year 2024 results webinar.
Nick Lawson: Good morning, good afternoon, and good evening, wherever you are in the world. My name is Nick Lawson, I'm the CEO of Ocean Wall, and I'm delighted to welcome you to the ASPI Isotopes Fiscal Year 2024 Results Webinar. We're delighted to have with us Paul Mann, Chairman and CEO, and Dr. Hendrik Strydom, ASPI's Chief Technology Officer. Firstly, gentlemen, congratulations on this morning's press release regarding Ytterbium-176, an incredible milestone for you. Before you tell us more about that, can you take us through the 2024 results, please, and also a review of Q1 2025, your outlook for 2025, and then give some comments here on today's announcement, please. Gentlemen, over to you.
Speaker Change: We're delighted to have with this pool, Madam chairman and CEO and Don Henrik Stride to S. P. <unk> Chief Technology Officer, plus you gentlemen, congratulations on this morning's press release regarding a tabby and 176, an incredible milestone for you.
Speaker Change: Before you tell us more about that can you take us through the 2024 results place I'd also review of Q1 'twenty five your outlook for 2025.
Speaker Change: And then give some comments here on the today's announcement that you started a judgment over to you.
Speaker Change: First in this journey.
Speaker Change: There's a lot of units.
Speaker Change: I don't know if you want to shop.
Speaker Change: If you can tell from an amendment or waiver.
Speaker Change: And as long as two companies.
Paul Mann: Yeah. Thanks, Nick, for hosting this call. I'm joined here by Dr. Hendrik Strydom, who's our Chief Technology Officer. I'll hand over to you to start in a moment. We're a NASDAQ-listed company, so if you could just look at the forward-looking statements and disclaimers in our 10-K alongside this webinar, that'd be great. It contains a lot of information in our 10-K published last night. Yeah, the Q4 was exactly in our expectations, 10.5% state of business and $4.2 million of revenue for the year. Nothing unusual is really happening so far this year. We haven't given guidance, we don't expect to give guidance for this year. I can't give guidance for the Q1 on this conference call because it wouldn't be appropriate.
Speaker Change: Forward looking statements disclaimers in our 10-K I'm almost sockets.
Speaker Change: Great.
Speaker Change: Contingent volumes transformation.
Speaker Change: Just published.
Speaker Change: So again, the fourth quadrant was exactly our expectation just hand, it off to a fantastic business.
Speaker Change: Christmas.
Speaker Change: Fort worth $2 million in revenue for the year.
Speaker Change: Nothing unusual it's really happening so far so far this year, we haven't been haven't giving me all islands, you didn't expect to see guidance for this year.
Speaker Change: I'm talking gardens, just stress quoting on this conference call was just two months.
Speaker Change: It wouldn't be appropriate.
Speaker Change: Okay.
Speaker Change: We compete with a stronger acuity three manufacturing plants to start commercial production.
Speaker Change: Got it very easily.
Paul Mann: The main highlights of the quarter for me were the starting up of 3 manufacturing plants to start commercial production. None of them were very easy, but they all went. The Carbon-14 plant, we had a feedstock issue in terms of getting the feedstock from Canada. That arrived in early February. That plant is now enriching Carbon-14. We're soon to get our second batch of feedstock into this. I think it should arrive very late on the contract after about fairly soon. The 228 one actually had a number of challenges while we were commissioning. We've got an incredible engineering team, and they were able to work through the challenges. One example was the cryogenic pump is supposed to produce helium at -120 degrees Celsius. We need that in order to recycle silane out of the plant and balance the plant.
The 14th floor kind of feedstock.
Speaker Change: Sure in terms of getting to the feedstock from Canada.
Speaker Change: A large.
Speaker Change: Okay.
Speaker Change: I apologize.
Speaker Change: E Commerce will still need to get a second batch of feedstock and ensure a strong group should arrive in.
Speaker Change: Given your strong government policy.
Speaker Change: On track production bottomed.
Speaker Change: Got you are trying to extend it.
Speaker Change: <unk> seen a number of challenges, we're going to be critical and she didn't change, but they haven't really had much wherever scrutinize.
Good morning.
Speaker Change: Yes, we do see that minus 120, <unk> C. B, perhaps you are too large to be.
Speaker Change: Sarcomas.
Speaker Change: I don't know.
Two clubs.
Speaker Change: Most of my life.
Speaker Change: So the government do to help them.
Speaker Change: Weeks.
Speaker Change: Thank you Amanda.
Speaker Change: Absent that it couldn't fix compresses.
Speaker Change: Okay, great and your extra data sorry.
Paul Mann: We could only get down to -90 degrees Celsius, so we got into it a couple of weeks, get UAM supply out from there, and they got it fixed. A couple of compressors and towers broke. Again, we've got a great team of engineers, so they paired those new towers and got it working. I think it's been an incredible engineering team we've built over the last 3 years down here in South Africa, and the challenges they're able to deal with and just work through. Ytterbium-176 also had its fair share of problems as well. The Time-of-flight mass spectrometry didn't work. Hendrik spent 3 weeks struggling with that. The vacuum pumps were a bit inaccurate. Again, a few weeks struggling through those and finally at this point, we announced that it was successful in enriching Ytterbium-176 and started enriching for commercial samples now.
Speaker Change: None of them.
Speaker Change: Documents.
Speaker Change: It's been pretty incredible engineering team has built American law, such greed is down here in South Africa.
Speaker Change: So we're able to do it smart.
Speaker Change: When you turn the one that's going to be citizens had its fair share of problems as well.
Speaker Change: The first.
Speaker Change: Petrol and execute work and extended three weeks traveling with us.
Speaker Change: Backing pumps.
Speaker Change: Good afternoon.
Okay.
Speaker Change: Finally, a final split of greenhouse to China, Southern Virginia and 176.
Speaker Change: Stocks at Ritchie, who can actually solve themselves.
Speaker Change: It may not have seen in margin mix for the quarter.
Speaker Change: Under that you for the questions now.
Speaker Change: Okay. So I've got a couple of questions are coming in in terms of the.
Paul Mann: They're the main highlights in my opinion, Nick, for the quarter. I'll hand over to you for any questions now.
Speaker Change: The first one is in layman's terms can you explain what the relevance and then Rick can you tell US is two two enriching uranium space.
Nick Lawson: Okay. I've got a couple of questions that are coming in. The first one is, in layman's terms, can you explain what the relevance of enriching ytterbium is to enriching uranium, please?
Speaker Change: And just one thing.
Speaker Change: Hum.
Speaker Change: Both of the study.
Speaker Change: So some of that risk.
Speaker Change: They are pumping more similar than different type of a snake.
Paul Mann: Hendrik, you want this question or I've got it?
Speaker Change: Actually the Cherokee has breakdown spectroscopy. Please.
Hendrik Strydom: I'll go for it.
Paul Mann: Okay. They're probably more similar than different, I would say. Actually, Ytterbium has both types of different spectroscopies. Ytterbium has 5 isotopes, whereas uranium's only really got 2 significant ones. It's easier to enrich a product where you've only really got 2 isotopes rather than where you've got 5. Ytterbium's a bit quicker than uranium has to be vaporized at a higher temperature, different materials are required in the production vessel. Also it's a bigger action. I don't know if that's fair. I guess also the spectroscopy at 3,000 Kelvin is less in the ground state, which is one of the problems that I have is I thought.
Speaker Change: If you kind of give you that as far as our church.
Speaker Change: You bet anybody go to significant volumes, so it's easier to integrate should put up right and we think about two months.
That's fine.
Speaker Change: You're targeting to be quick.
Speaker Change: Uranium.
It has to be paid to us in the high temperature materials that are required in the production vessel.
Speaker Change: I hope that you're referencing.
Speaker Change: I guess, we'll see spectroscopy the 3000.
Speaker Change: And you're going to say, it's one of our pumps.
Speaker Change: Relief.
Yeah, I think listen you can go back.
Speaker Change: As you know the languages.
Speaker Change: Aes <unk>.
It's been used in the semiconductor industry.
Hendrik Strydom: Yeah. I think firstly, if you go back to the lasers. Lasers since the '80s and '90s have developed. It's been used in the semiconductor industry. They've got a high spec to it, and that suits us very well. We buy off-the-shelf lasers today. No development there. What we do to the lasers is to shape the beam. I think that's the big difference. Going towards uranium, yes, in the ground state at 3,000 Kelvin, not that many left there, so you need to address the spectroscopy and get hold of all the tools involved in that.
Speaker Change: Hi, spec students suits us very well so there will be violence, Michelle blazes today, no development, there, but we do do the licenses.
Speaker Change: I think that's a big dividends are going towards if youre right, yes, and the Johnson <unk> Johnson.
Speaker Change: Interestingly, so you need to do at least as.
Speaker Change: Can you talk a little older Tuesday bottleneck.
Speaker Change: Okay. So the questions are coming in and obviously everyone's aware that there's a Q&A button on the on the same function with about 197 participants.
Speaker Change: We'll do it as fast and furious Paul as well what are your expected revenues for Spi 2025.
Nick Lawson: Okay. Questions are coming in. Obviously, everyone's aware that there's a Q&A button on the Zoom function. We've got 197 participants. We'll do this fast and furious, Paul, as well. What are your expected revenues for ASPI in 2025, if you can talk about that, and will you reach free cash flow positive by the end of the year?
Speaker Change: Can't talk about that and we'll do you reach free cash flow positive by the end of the year.
Speaker Change: So we haven't given guidance for the year tend to give you guidance on all of them in the school.
Speaker Change: But if you look at the contracts that we've signed we should go to <unk>.
Speaker Change: Got it.
Paul Mann: We haven't given guidance for the year. We don't intend to give guidance on this call. If you look at the contracts that we've signed, you've got to add them up and work out what our annualized run rate would be from the facilities. Ytterbium, you can get maybe 15 tons per year of production of Ytterbium. We've kind of said, think about $20,000 a gram for Ytterbium. For Carbon-14, we've said that we have a take-or-pay contract in the middle of $2.5 million a year, but possibly a bit more than $2 million. They're trying to take more. They've certainly shipped feedstock for more than $2.5 million product this year. Maybe that's slightly more than $2.5 million. We've said we've got 2 small orders right now for Silicon-28.
Speaker Change: Annualized normal maybe be some of the synergies.
Speaker Change: Terrific.
Speaker Change: I think you can get metric to keep it around.
Speaker Change: Our production in China.
Speaker Change: Okay.
Speaker Change: We've kind of set of things.
Speaker Change: About $20000 a gram Shaw.
Speaker Change: Sure.
Speaker Change: And just.
Speaker Change: Okay, and you said that we have.
Speaker Change: Take or pay contracts had been around 200 million tons, a year, but passenger it one or two companies.
Speaker Change: Well next Saturday shift feedstocks were more mature.
Speaker Change: Product this year. So she makes about assignment in June.
Speaker Change: Let me kind of semi book to some more quarters by the opposite of <unk> 'twenty I would expect to get some more orders over the next few months.
Speaker Change: Welcome to three or four additional customers you would expect to place.
Speaker Change: No sorry, I think.
Paul Mann: We'd expect to get some more orders over the next few months. We're talking to three or four additional customers who we expect to place orders. Also, I think our two customers who've already signed up want to increase their size of their orders this year as well. That kind of gives you an idea of what ASPI we're doing. PET Labs did $4 million last year, and that should grow nicely this year because we've invested heavily in that business. That should grow nicely this year. In terms of free cash flow positive, if you add those revenues up and we spend in terms of our cash operating expenses, we assume we should get cash flow positive in the H2 of the year.
Speaker Change: Our two customers will be signed on to increase that.
Edward: Edward This is viewed as well so that kind of gives you not David.
Speaker Change: The agreement.
Speaker Change: It's $4 billion last year I'm not sure you're going through this year, because we have invested heavily in that business.
Speaker Change: So I think we're.
Speaker Change: We are addressing the shift.
Speaker Change: And then.
Speaker Change: Sometimes it can be taught how to bolster the undergraduate as revenues go up.
Speaker Change: We're spending in terms of our cash operating expenses, you'll see you should it should be.
Speaker Change: Proposal two the second half of the year.
Speaker Change: The press release that the company anticipates now being able to proceed with the patents to construct the nickel 64 take a daily NIM on fixed in the lithium fix.
Speaker Change: Plants could you give us some guidance on the timing of the construction around this cloud space.
Nick Lawson: The press release said the company anticipates now being able to proceed with the plans to construct the Nickel-64, the gadolinium-157, and the Lithium-6 plants. Could you give some guidance on the timing of the construction around those plants, please?
Speaker Change: Yes.
Speaker Change: If everybody can determine modules with two pumps.
Speaker Change: Six months from procurement to Merck's trucks, you put them together.
Speaker Change: Okay.
Speaker Change: About six months Commission that you expand.
Paul Mann: Yes. I think we can achieve building a Ytterbium plant in just 2 months. It took 6 months for procurement, but 2 months to actually put it all together and construct it. Then they spent about 6 months commissioning it and fighting through the various small problems that occur during the early stages of any plant startup. I'd like to think we have the first plant coming into action later on this year. We'll see. Depends on the procurement. We require export permits from certain countries to ship lasers into South Africa. We require import permits to get into South Africa, and they can take some time to get. They're out of our control. We apply for the export permits in the country we need it from, and so we're waiting to see how long that will take.
Speaker Change: Question for you on the various global public resistance.
Speaker Change: During the early stage startups.
Speaker Change: I'd like to thank the downturn the first launch kind of covering interaction later on this year.
Speaker Change: Maybe on the governors.
Speaker Change: We've acquired patents from certain countries to ship lasers into South Africa, we were running for.
Speaker Change: South Africa, and they can take some time to get there.
Speaker Change: On a non controllable would you apply for the export tonnage that comes to me I'm sorry.
Speaker Change: Okay.
Henrik: Henrik so.
Henrik: The press release talks about the expectation would have been 176 scheduled to 19 nine street what percent whats the nameplate on that facility and how quickly do you expect samples to be approved.
Nick Lawson: Henk, the press release talks about the expectation with Ytterbium-176 getting to 99.75%. What's the nameplate on the facility? How quickly do you expect samples to be approved?
Henrik: To give you 90 751.
Henrik: It's not impossible, we do these batches.
Henrik: Absolutely.
Hendrik Strydom: Well, to get to 99.75 in 1 step is not possible. We do it in batches. The first batch works up to 88% to 90%, and that takes a long time. The last bit takes about a day to get to 99.75.
Henrik: And then if I can.
Henrik: On the endoscopy data to get to market.
Henrik: So yes.
Henrik: Yes, we havent given guidance.
Henrik: Thank you Sir.
Henrik: Yeah.
Henrik: We can understand.
Henrik: Okay.
Henrik: Okay, given the SMO a race in the U S are there any plans ambitions to expand manufacturing rich vocabulary season in North America.
Paul Mann: Yeah, we haven't given guidance when we're going to ship. I think we've said H1, probably Q2 or Q3, something like that. Yeah.
Nick Lawson: Okay. Given the SMR race in the US, are there any plans or ambitions to expand manufacturing enrichment capabilities in North America?
Henrik: So I was wondering if you have plans to do that.
Henrik: This can what people are trying to have an appointment by ourselves.
Henrik: If you look at Saddam who followed up with mix.
Paul Mann: Absolutely we have plans to do that. It's likely we'll find a partner rather than by ourselves. If you look in South Africa, we've partnered up with Necsa, the South African Nuclear Energy Corporation. We may well partner up in the UK with a partner there, and we'd like to partner up with somebody in the US as well to help through the regulation licensing challenges. Again, constructing any form of uranium or nuclear plant, it's the licensing and the regulation side that takes the time and is the longest part of the process.
Henrik: Engineering operation you're talking about.
Henrik: One of them in the United Kingdom.
Henrik: I would like to partner with somebody who had just six months and how much do the manufacturing license and challenges.
Henrik: Again construction anymore Iranian nuclear pumps.
Henrik: It's the licensing and registration spot takes takes the time it was just not as smooth as possible.
Henrik: Is that sort of maybe al can you give any comment on the timing of peak purely spin out.
Yeah, I mean, we haven't really given kind of guide us out of trouble when we have centers.
Nick Lawson: Is there, I sort of know the answer to this, can you give any comment on the timing of the QLE spin-out?
Henrik: We'd like to do it when there are two things to happen in order for us to be able to spin up cumulated first.
Paul Mann: Yeah. We haven't given any guidance there as well. What we have said is that we would like to do it when there were two things that had to happen in order for us to be able to spin out QLE. The first is we had to identify our location where we can build the first uranium plant. Obviously, we've now announced that in December, that's now Pelindaba in South Africa. We're working hard with Necsa now to secure the appropriate licenses and permits that we need to build that plant and build a test bed and research from there. The second thing we needed was to see minor sites, you cast load, break even, or better in the ASP Isotopes side. Obviously, now they've got three plants up and running. I think that box is ticked as well.
Henrik: I'm going to try to find a location we wouldn't feel this last year.
Henrik: I don't think he's never been announced I understand that thats not happening in.
Henrik: In South Africa.
Henrik: Next on our securities licensed therapists that we needed to build up.
Henrik: Becky.
Henrik: Did you touch.
Henrik: And then secondly, contaminated OCC Garner Sox customer breakeven that you're going to ask the isotype cycle, but we now have a fleet of plants up and running.
Henrik: The book to ship as well I'm, sorry, if I could.
Henrik: As soon as possible.
Henrik: The biggest spring units all youre talking.
Henrik: Our consolidated to follow up with us and talking to the FCC.
Paul Mann: I'd like to think we do it, as soon as possible. We can bring it. Part of it's out of our control. We need to file some documents with the SEC, and they get reviewed by the SEC. That's a 30 to 60-day process, seemingly there's movement. We could be doing it quite soon.
Henrik: Sir.
Henrik: Rich.
Henrik: 60 million tonnes.
Henrik: So there could be it could be for your question.
Henrik: Yes, but I think you'd like to move.
Henrik: You mentioned that the appetite obviously by the investment banks and this hits the sweet spot in terms of energy transition profile, the large investment banks.
Nick Lawson: Yeah. I think you and I can maybe mention that the appetite, obviously by the investment banks, this hits the absolute sweet spot in terms of the sort of energy transition profile for large investment banks. Another question. Have you signed any supply agreements for Ytterbium? Are you still on pace to sell a kilogram this year? The price reference here is $20,000 a gram. Is that still correct?
Speaker Change: Another question have you started any supply agreements for Utah.
Henrik: Are you still on pace to set a kilogram this year.
Speaker Change: Reference here is $20000, a gram or is that still correct.
Speaker Change: So.
Speaker Change: That's helpful I wouldn't run of 20000 tons with one customer.
Speaker Change: One of our songs, Florida placements.
Speaker Change: Hum.
Speaker Change: How much what will happen is when they are completed.
Paul Mann: Discussions with customers are around $20,000 a gram. Customers want to have a sample before they place an order. What the customer will have to do is check that when they radiate it with a neutron, that they are able to turn to Lutetium-177 and not get any long-lived isotope to produce. What's important in the spec is not Ytterbium-176 being over 99.5%, it's actually how low Ytterbium-171 is. They're going to want to see that and I'm very confident it will hit the spec, but haven't got it yet. They're going to want to see that and ask me what we need to see before they can fully sign those or supply people to or what order. We've got a lot of interest in Ytterbium, we probably have 2 kilograms of indicated demand already from customers.
Speaker Change: Neutral.
Speaker Change: They are able to introduce you to 177.
Speaker Change: Not continued low voltage slightly more favorite lines protector produce on such important devoting to the spec is not mature.
Speaker Change: I think 176.
Speaker Change: Nine of our clients. So she had a limited.
Speaker Change: Every one of these markets.
I'm sorry to interrupt you.
Speaker Change: These apps.
Speaker Change: I'm very comfortable.
Speaker Change: Yes.
Speaker Change: So from there I don't have to do that.
Speaker Change: What we need to see before they'd kind of feeling some interim supply of inventory.
Speaker Change: There's a lot of interest.
Speaker Change: And good to have you.
Speaker Change: How about you keep that revenue stream to kitchen demand already from customers.
Speaker Change: I'm just going to jump a couple of questions because quite a few in Utah. So you mentioned the ability to scale up the type of months six product by adding additional vessels is that still something you expect today.
Nick Lawson: I'm just going to jump a couple of questions because there's quite a few on Ytterbium. You mentioned the ability to scale up the Ytterbium-176 plant by adding additional vessels. Is that still something you expect to do?
Speaker Change: Yes.
Speaker Change: <unk> been doing in the existing building or whether we do it in a neutral I think are off to wait and see.
Speaker Change:
Speaker Change: It doesn't take long to bottom of the vessels.
Paul Mann: It is, yes. Whether we do it in the existing building or whether we do it in a new building, we'll have to wait and see. Again, it doesn't take long to add more vessels, does it? We're also going to do that.
Speaker Change: What are your realistic yes that's.
Thats easy path I mean, when when the beta goes through the fiscal year.
Speaker Change: Yes, our love of late is a larger.
Speaker Change: <unk>.
Nick Lawson: Yeah, that's the easy part. When the beam goes through the first vessel, you absorb very little of the light, and you have a lot of laser light left or numbers of vessels to follow. It's a question you sort of answered, Henrik, around the number of passes to get to 19.75%. Are there any technical limitations to reaching that? How many additional passes do you have to do?
Speaker Change: Yep.
Speaker Change: It's a sort of a question on sort of outfit henric are out of the number of passes to get to 1970, 5% are there any technical limitations to reaching that.
Speaker Change: And how many additional passes do you have to do that.
Speaker Change: We haven't disclosed the number of lost reality.
Speaker Change: And like any technical challenges all of us.
Speaker Change: No I mean in singles.
Speaker Change: <unk> demonstrates its about the same in <unk>.
Paul Mann: We haven't disclosed the number of passes we have to do. Henrik, any technical challenges there of those?
Speaker Change: But already obtained we will send you a little bit.
Speaker Change: Ex needs because it kind of a sweet spot.
Hendrik Strydom: No, in single runs, we've demonstrated about 0.5% enrichment already. You also do a little bit, so you actually need to have a sweet spot where you run the passes.
Speaker Change: And what do you think the actual demand is for you to pay $1 76 in the market.
Speaker Change: Yes.
Roger: So Roger I Wonder if you could clearly very interested to either the rams from various customers.
Paul Mann: Okay.
Nick Lawson: What do you think the actual demand is for Ytterbium-176 in the market?
Speaker Change: Victor I think they're going to.
Roger: Since the launch.
Paul Mann: That's a difficult one to answer. Right now, we have clearly very interesting 2kg from various customers. The Pluvicto is, I think only in its third year since launch. Pluvicto is likely growing over the next several years as well. There are a number of other beta lifts in radiotherapeutics in development with other companies. The vast majority of medical indications for Pluvicto.
Roger: The bigger charter expires.
Roger: Perfect very separately as well there are a number above.
Roger: Feature rich and maybe a few tricks that development from other companies.
Foster burn off credit qualifications for P. J.
Frank: Hello, Frank quickly can you bring the microphone a little bit closer it's a little bit muffled. The ODI feed just to get a little bit closer to place.
Roger: No.
Roger: Okay.
Nick Lawson: Paul, very quickly, can you bring the microphone a little bit closer? It is a little bit muffled, the audio. If you can just bring it a little bit closer to you, please.
Roger: Maybe Victor is everything you're asking.
Roger: Since the launch.
Roger: Sorry.
Roger: Thanks to growing very strongly.
Paul Mann: Is that better?
Nick Lawson: That's better.
Paul Mann: Okay. Yeah. Pluvicto is only in its third year since launch. It's still growing very strongly, and there are lots of clinical trials to expand the number of indications for Pluvicto. In addition to that, there's a number of companies running trials with Lutetium-177 as well. Yeah, I think we're in the early stages of the product cycle. Again, we'll have to wait and see how big it actually ends up becoming in years to come. Right now, it's about two kilos of indicated demand.
Roger: Lots of preclinical trials to expand the number of indications to get cleared.
Roger: In addition to that both companies funding running throughout his career.
Roger: Some bumps 77 as well.
Roger: No I think we're in the early stages.
Michael: Hello, Michael.
Michael: If I could never have to wait and see how big it actually ends up becoming a juice to come.
Speaker Change: About two months.
Michael: Okay.
Michael: Particularly the demand side in terms of ramping production is going to be a function of the demand you see for it or do you have plans to ramp up production.
Technical limitations to reaching that.
Nick Lawson: Okay. 2 kilos. In terms of 2 kilos of demand, so in terms of ramping production, it is going to be a function of the demand you see for it, or do you have plans to ramp up production?
Michael: We have talked about.
How many additional passes do you have to do.
Michael: But I don't think it can be.
Speaker Change: We don't disclose the number of loss, we don't have to do.
Michael: Not even the orders.
Operator: Good morning, good afternoon and good evening to wherever you are in the world.
Michael: Okay.
Like any technical challenges or not.
Michael: So.
Nick Lawson: My name is Nick Lawson, I'm the CEO of Oceanwall, and I'm delighted to welcome you to the ASP Isotopes Fiscal Year 2024 Results Webinar.
Michael: We're coming back down a little bit to the financials north side to the.
Paul Mann: We have plans to ramp up production without needing the orders in hand.
Speaker Change: I mean, even single run speeds and demonstrates its about 100% enrichment already obtained you will skew a little bit.
Michael: Contracts with the.
Michael: I said of our company.
Nick Lawson: Okay. We're coming back now a little bit to the financials and also to the contracts with the SMR company. Given your expansion plans for H2, do you expect to be doing another equity raise?
Given your expansion plans for the second half do you expect to be doing another equity raise.
Nick Lawson: We're delighted to have with us Paul Mann, Chairman and CEO and Dr. Henrik Strydom, ASPI's Chief Technology Officer. Okay, so I've got a couple of questions that are coming in.
Speaker Change: So U S needs, because we'd have a sweet spot.
Speaker Change: And what do you think the actual demand is for your target of 176 in the market.
Michael: Yes.
Michael: So how does she told on December 31.
Michael: No no.
Speaker Change: Yeah.
Michael: At the end of the year, if you look at how much operating cash flow to be spent.
Speaker Change: So right now liquidity very interesting to even the ramps from various customers.
Paul Mann: I think if you looked at our balance sheet on December 31, we never had that much cash in that balance sheet at the end of the year. If you look at how much operating cash flow we spent last year, it's about $15 million. If you look at $15 million at 60 business a year, it's about 4 years of operating free cash operating burn sitting on the balance sheet. We hope to get cash flow break-even or better in the H2 of the year. When you look at the capital costs of building these laser plants, it's not that significant. Our general capital's really pretty remarkable. The Ytterbium-176 plant probably came in at about maybe $3 million, that kind of number. We spent $2.5 million initially, and we had about half a million dollars of capital expenditures in the final few months.
Michael: Last year, its about $50 million.
Speaker Change: Right.
Speaker Change: Victor I think they're going to start.
Michael: $50 million 60, Btu just stopped.
Speaker Change: The launch.
Michael: Before we get an appropriate return.
Speaker Change: Two big charter it's Mike.
Michael: Free cash flow hopefully confirm to two on the balance sheet.
Speaker Change: Separately as well there are none of the above.
Michael: We have to get cash flow breakeven in the second half of the year.
Speaker Change: Our feature rich and very good future development product companies.
Michael: We look at it.
Speaker Change: Oster protocol credit qualifications for Peter.
Michael: Bill.
Michael: These latest with logs.
Speaker Change: Quickly can you bring the microphone a little bit closer, it's a little bit more.
Michael: It's not a significant alternative capital really pretty remarkable.
Speaker Change: The audio can spend a little bit closer to place.
Michael: There will be determined once its launched.
Speaker Change: That's better.
Michael: Okay.
Michael: Maybe $3 million kind of number we spent $2.
Victor: Maybe victor.
Speaker Change: Since the launch.
Michael: Finishing off some of your thoughts excuse in the final few months.
Speaker Change: Sorry.
Speaker Change: Two growing very strongly.
Speaker Change: Lots of clinical trials to expand the number of indications to predict clearer.
These pops up a large amount of expenses.
Michael: Before we get onto Terrapower.
Speaker Change: In addition to that there's a number of companies funding running throughout last year. If you could just some bumps 77% as well.
Michael: Questions around the purely convertible note any progress around the note and also today a new subsidiary was added as part of that is seen in the 10-K, Chile TP funding and I'll say it took a little bit about what back to you as well that subsidiary is full and also any progress on materially convertible notes.
Paul Mann: These plants are large and not expensive.
Speaker Change: And I think within the energy savings.
Nick Lawson: Okay. Before we get onto TerraPower, a couple of questions around the QLE convertible note. Any progress around the note? Also today, a new subsidiary was added as part of the, as seen in the 10-K, QLE TP Funding LLC. Can you talk a little bit about what that is, what that subsidiary is for, and also any progress on the QLE convertible note?
Speaker Change: Michael.
Michael: If I could never have to wait and see how big it actually is.
Speaker Change: It used to come.
Michael: About six months.
Speaker Change: Okay.
Speaker Change: Particularly as the demand side in terms of ramping production is going to be a function of the demand you see for it or do you have plans to ramp up production.
Michael: So.
Michael: In terms of the charter vessel Kubernetes medical knowledge.
Michael: Congrats on security stock aren't going to spin out.
Speaker Change: We haven't talked about.
Speaker Change: Maybe it can be.
Paul Mann: In terms of progress on the QLE convertible note, I think that'll convert into QLE stock on the spin-out. There's not much progress to be made there on the spin-out, it'll be converted. In terms of that new subsidiary, QLE TP Funding, it's difficult for me to really comment as far as potentially where that's going to be seen then. When we fund the South African plant, it's likely our partner will want to fund it via a US entity, not via a South African entity. That is an entity that's set up to receive capital to flow to South Africa to build their uranium facility.
Michael: So I mean, there's no I'm not sure if you can make them spin off spin.
Speaker Change: Not even the orders.
Speaker Change: Okay.
Speaker Change: Okay.
Michael: Got it.
Speaker Change: We're coming back down a little bit to the financials north side to the contracts with the.
Michael: In terms of that new subsidiary <unk> TP.
Michael: Hum.
Speaker Change: Some of our company.
Speaker Change: Given your expansion plans for the second half do you expect to be doing another equity raise.
Michael: Okay.
Michael: It's difficult for me to really comment with carnivals in tissue.
Michael: Yeah.
Speaker Change: Yes.
Speaker Change: You can have to tell them how much each one of them December 31.
Brandon: It's Brandon.
Michael: Brandon Remington, we found them to be.
Speaker Change: No no.
Speaker Change: At the end of the year, if you look at how much.
Now I'd like.
Paul: Paul and I don't want to bother.
Speaker Change: Operating cash flow we spent engine.
Speaker Change: Finally, <unk> T mobile so that we presented to you. So you don't have as mentioned is some of our key seed capital.
Speaker Change: Last year, its about $50 million.
Speaker Change: $15 million six cubic meters to start flowing into complementary.
Paul: So not a particular day.
Paul: Are you going into <unk>.
Speaker Change: Free cash flow hopefully confirm to two on the balance sheet.
Paul: Okay. So its terrapower.
Speaker Change: We have to get customer breakeven or better in the second half of the year.
Paul: Lots of questions here in terms of the <unk> contract things like the prepayments.
Speaker Change: When you look at it.
Speaker Change: On the cost to build it.
Paul: Timelines and a sort of a bigger question of Terrapower as the U S part of it.
Nick Lawson: Okay. Into TerraPower now. Lots of questions here in terms of the current status of the contract, things like the prepayment timelines and the sort of bigger question of TerraPower as a US partner.
Speaker Change: These latest with logs.
Speaker Change: Well, it's not a significant alternative capital really pretty remarkable.
Paul: So we're talking to a number of potential with the rest of August.
Speaker Change: The 777.
Speaker Change: It's launched.
Speaker Change: Okay.
Paul: Wondering if you could be kind of Pandora.
Speaker Change: Okay.
Speaker Change: Maybe $3 million kind of number you spend it turned out we didn't finish.
Paul: They continue to have a good relationship with the U S government.
Paul Mann: We're talking to a number of potential US partners. One of whom is likely to be TerraPower. They clearly have a good relationship with the US government and the DOE, the nuclear regulator. Other people are closer to the uranium mission cycle than they are, we'll see. In terms of the status of the contract and stuff, we will announce to the market when we've signed definitively supply agreements and potential investment agreements, which is what we are working on at the moment. Supply agreements and investment agreements are quite challenging things to put together. They take a long time. Just by way of example, who's shipping the product? Who takes title of the product? When? Who is getting the feedstock from the plant? What the feedstock is going to look like, what the spec of the feedstock is going to be.
Speaker Change: Sure.
Speaker Change: Familiarity excuse in the final few months.
Originally in China.
Paul: On the people and the people of our crisis.
Speaker Change: So that was part of.
Paul: Sorry.
Speaker Change: Global automotive sensors, okay, before we get onto Terrapower.
Paul: So we'll see.
Paul: In terms of final stages of contract staff, we would've announced routes to the market rather we've started with maturity supplied any time, we can keep vessels Geneva, which is what we are working on the merits.
Speaker Change: Couple of questions around the purely convertible note any progress around the note and also today a new subsidiary was added as part of the scene in the 10-K, Chile, TP funding and I'll say it took a little bit about what that phase well. That's just subsidiaries for and also any progress on the purely convertible notes.
Paul: Supply agreements.
Paul: Quite challenging things.
Paul: Take a long time.
Paul: Sorry, So just perfect example.
Speaker Change: So.
Speaker Change: Just trying to pencil in a kubernetes medical knowledge.
Dr. Henrik Strydom: In terms of, the first one is in layman's terms, can you explain what the relevance of enriching ytterbium is to enriching uranium, please?
Paul: Yes.
Paul: Shipping the product to take applicable grabbing Brandon who is kind of the feedstock from advanced features is kind of a lift from my perspective. The feedstock is going to be all of that has to be detailed spend with contracts.
Speaker Change: Congrats and securely stock on the spin out.
Speaker Change: So I mean, there's not much sure, but it should make them spin off.
Dr. Henrik Strydom: Uh So they're probably more similar than different I would say, you know, actually Utopium has both have different spectroscopies, Utopium has five isotopes, whereas Uranium's only got two significant ones, so it's easier to enrich a product where you've only got two isotopes, rather than five. You know, Utopium's a bit quicker than Uranium, but Uranium has to be vaporized at a higher temperature, so different materials are required in the production vessel, and also to make your reactant. I guess that's fair.
Speaker Change: Got it.
Speaker Change: In terms of that new subsidiary the <unk> TP.
Final question I think it's going to be.
Paul: It's going to be supplied.
Speaker Change: Hum.
Paul: Well soon or it's going to be actually be shift.
Paul Mann: All of that has to be detailed in the contract. What our final specification is going to be and the form it's going to be supplied in, what service it's going to be in, how it's going to be shipped. An awful lot of information has to go into a supply agreement, and so they take some time to write. We're working on that at the moment.
Speaker Change: Thanks.
Speaker Change: Yeah.
Speaker Change: It's difficult for me to really comment with some levels of tissue.
Paul: There's no other information months ago, Remicade with supply agreements.
Speaker Change: [laughter].
Paul: It takes some time to watch.
Speaker Change: It's.
Paul: On slide 11.
Speaker Change: Wherever we can find them to be.
Paul: In the meantime, <unk> made no secret that respect for your business in parts of US what's the relationship built player like <unk>.
Speaker Change: Now I'd like.
Speaker Change: Paul.
Speaker Change: Finally, you referenced T Mo Boston presenting to you soon.
Paul: Yeah.
Nick Lawson: In the meantime, Oklo have made no secret of their respect for your business and vice versa. What's your relationship with Oklo like?
Paul: <unk>.
As mentioned at several key seed capital.
Paul: Okay.
Paul: Yeah.
Speaker Change: Somehow.
Paul: We are starting to get an amendment of our customers.
Speaker Change: Are you going into 16.
Speaker Change: Okay. So its terrapower now so lots of questions here in terms of the <unk> contract things like the prepayments.
Paul Mann: We sign NDAs with most of our customers. I can't really talk about potential customers or partners or IP. I like Oklo. I think Oklo is a great company. I think they've got a great SMR. I think they could well be first to market with their SMR. They've got a great business model as well. They've got a huge backlog of customers.
Paul: Customers are currently talking about potential customers.
Paul: Sure.
Paul: Unlike automatically incorporates a bread company I've never break extra mom.
Dr. Henrik Strydom: And I guess also spectroscopy, in terms of the 3,000 Kelvin, it's less than the Bernstein, which is one of the problems really.
Speaker Change: Timelines and a sort of a bigger question of tariff policy U S part of it.
Paul:
Paul: I can take the broken customer interaction model.
Dr. Henrik Strydom: Yeah, I think firstly we go back to the lasers, you know, lasers since the 80s and 90s have developed, it's been used in the semiconductor industry, they've got a nice spec to it, and that suits us very well, so we buy all the shown lasers today, no development there, but we do use the lasers is to shape the beam, I think that's the big difference.
Paul: No.
Sure.
Paul: <unk>.
Paul: Yeah.
Speaker Change: Number of potentially with the rest of August.
Paul: This is important as well.
Paul: So they have a huge backlog of customers.
Speaker Change: Wondering if you can walk on it can be turned on that at all.
Paul: Customers.
Speaker Change: Have a good relationship with the U S government.
Paul: Okay.
Paul: We'll move on from that so two questions about parity, where they're actually the first folks about regulation I mean.
Speaker Change: Originally in China.
Speaker Change: On the people and the people are more closer to the European side.
Paul: You and I had an amazing maintaining a couple months ago in Pretoria with.
Nick Lawson: Okay. We'll move on from that. Two questions about permitting. Well, actually, the first one's about regulation. You and I had an amazing meeting a couple of months ago in Pretoria with Necsa. What are your relationships like, or how are the regulatory discussions going with the South African government at the moment?
Speaker Change: So we'll see.
Paul: With <unk> what are your extra ships like or how would the regulatory discussions going with the South African government to the mainland.
In terms of final stages of construction stuff in there.
Nick Lawson: But going towards Uranium, yes, in the ground state of 3,000 Kelvin, not that many are left there, so you need to address this spectroscopy and get hold of all the two, three, five of them. Okay, so questions are coming in. Obviously, everyone's aware that there's a Q&A button on the Zoom function.
Speaker Change: With announcement of routes to market, rather we decided what can attribute supply anytime we can see vessels Geneva, which is what we are working on the merits.
Paul: Really well.
Paul: I was actually quite some kind of dialogue with the government.
Speaker Change: Supply agreements.
Paul: Just last week, just kind of a range of 68.
Speaker Change: Quite a challenging things, but you're going to take a long time.
Paul Mann: Yeah, they're going really well. I was actually invited to Pelindaba with the government ministers just last week to celebrate the 60th birthday of their nuclear reactor, SAFARI-1. We have regular calls with Necsa. Each side brings different skills to the table here. Clearly, we bring the technology and the engineers able to design and build a facility, but they've got a huge amount of experience in regulatory licensing, permitting, that kind of stuff. We're talking to the regulator at the moment about what we want to do. We have the first test bench ready to go. We're kind of building the second test bench at the moment. It'd be great if we could get those done through H1 of this year and start doing something in H2 of the year.
Paul: Oh.
Paul: Actually this disorder.
Speaker Change: Yes, sorry.
Nick Lawson: We've got 197 participants, so we'll do this fast and furious, Paul, as well.
Speaker Change: This program it was nominal.
Paul: We had a record accruals next up.
Speaker Change: Yes.
Speaker Change: Shipping the product to take applicable grabbing foolish.
Paul: <unk> east side from different skills to the table here. So clearly technology engineers April choices by unparalleled simplicity, but they put a huge amount of experience and Brent can actually licensing permitting.
Paul Mann: What are your expected revenues for ASPI in 2025, if you can talk about that, and will you reach free cash flow positive by the end of the year? So, we haven't given guidance for the year. We don't intend to give guidance on this call.
Speaker Change: I'm, just kind of the feedstocks withdrawal fees, just kind of a lift from my perspective, the feedstock is going to be all of that has to be detailed business contracts.
Speaker Change: Final question I think she is going to be movements can be like.
Paul: To start off I'm sorry.
Paul Mann: But, you know, if you look at the contracts that we've signed, we should be able to add them up and work out what our annualised run may be from the facilities.
Speaker Change: So what's going to be any cash can be shipped.
Paul: I remember talking to the right to make sure my roots.
Speaker Change: Yes, it was north of and other information have to go into a supply agreement.
Paul: I don't want to do.
Speaker Change: Hello <unk>.
Speaker Change: It takes some time to watch.
Paul: Right.
Paul Mann: And so, Euterbium, you know, anything you can get made from Tequila ran per year of production of Euterbium. And, you know, we've kind of said, think about $20,000 a gram for Euterbium.
Speaker Change: I'm, sorry regarding the level of membership.
Paul: Second marriage.
Paul: It would be great. If you can tell it's Tom.
Speaker Change: In the meantime, all clubs made no secret that respect for your business and talks about what's the relationship built player like <unk>.
Paul: First half of this year and the time stopping something in the second half of the year.
Paul: Just some kind of dull, but you've talked in the past shovels.
Speaker Change: Yeah.
Paul Mann: And for Carbon-14, we've said that we have a take-all pay contract and bidder of $2.5 million a year. But perhaps we'll do it at more than $2.5 million. They're trying to take more. They've certainly shipped feedstock for more than $2.5 million of product this year. So, maybe that's slightly more than $2.5 million.
Speaker Change: <unk>.
Paul: Shovels in the ground and you start to expand on that.
Yeah.
Paul: Sorry, that's what we need to go to 10 minutes juice sugar.
Speaker Change: We signed an amendment to draw customers to talk about them until about potential customers.
Nick Lawson: Just in Pelindaba, you've talked in the past that there are shovels in the ground. Can you slightly expand on that?
Paul: You touched on enrichment processes.
Paul: Sure.
Speaker Change: Zero.
Paul: The first are the fastest growers separately.
Speaker Change: Great.
Paul Mann: Yeah. We need to build two test benches to test our enrichment processes at Pelindaba. The first is built. The second is not yet built. It's being built, it's being procured, it's being constructed. We'll announce to you guys when the second one is built and when we get the permits and when else to go in and start selling enriched products there.
Speaker Change: It incorporates a great company I've never heard of extra model.
Paul: It's been a good opportunity in procurement being constructed.
Paul: LCD driver and the second one was built to permit parents thought Oscar stocks.
Paul Mann: Then we've kind of said we've got two small orders right now for Silicon 28. We'd expect to get some more orders over the next sort of few months. So, talking to three or four additional customers, we'd expect to place orders.
Speaker Change:
Speaker Change: I can take the broken customer interaction model.
Paul: On stocks.
Speaker Change: Yeah.
Paul: Southern fishing product line.
Speaker Change: I think our business model as well.
Paul: And.
Speaker Change: So they're going to shoot back in March.
Paul: Iceland so.
Paul: Can you give us some update on wave out.
Speaker Change: Customers.
Paul Mann: And also, I think our two customers have already signed up and want to increase their size of their orders this year as well. So, that kind of gives you an idea of what ASPI will do.
Speaker Change: Okay.
Speaker Change: We'll move on from that so two questions about privacy, where they're actually the first one is about regulation I mean.
Paul: And also when will the building of the plant start.
Nick Lawson: Iceland. Can you give us some update on where we are currently in Iceland, and also when will the building of the plant start?
Paul: Yes, so again discussing just rounding regulators doing very well naturally come with these guys.
Speaker Change: You and I had an amazing maintaining a couple months ago in our portfolio with the.
Paul Mann: And then PetLabs, you know, did $4 million last year. And that's actually grown nicely this year because we've invested heavily in that business. And so, that's actually grown nicely this year.
Paul: The Westwood and.
Speaker Change: With <unk>, what are your relationships like or how would the regulatory discussions going with the South African government to the mainland.
Paul: Joining me for a couple of nice government ministers sort of a short term demand destruction in the soft goods side of them.
Paul Mann: Yeah. Again, discussions with the Icelandic regulators are going very well. The Icelandic government is going very well. I went to Iceland in January for a couple of days to meet with the government ministers. Bit of a shock going to Iceland in the winter from the South African summer, the team went up there to meet with them. We got a great reception, and they are excited about us coming to Iceland to build medical isotope facilities and facilities that enable next-generation semiconductor.
Speaker Change: They're doing really well.
Paul Mann: And in terms of being cash repositive, do you mind where those revenues are, and your expenses in terms of our cash, operating expenses, you should get cash repositive in the second half of the year.
Paul: Cumulus mentor to me.
Speaker Change: I was actually quite soft dependent on what the government initiatives.
Paul: But a great reception and that excites me pouches.
Speaker Change: Just last week, just kind of around 6%.
Paul: Estimates barrels.
Speaker Change: Hum.
Paul: Medical office facilities.
Speaker Change: Actually society reactor.
Paul: Sort of things that are enabling next generation semiconductor.
Speaker Change: We have a record accruals next up.
Nick Lawson: The press release said the company anticipates now being able to proceed with the plans to construct the Nickel-64, the Godelium-16 and the Lithium-6 plants.
Paul: Yes.
Speaker Change: The BDC is cycling different skills to the table here. So clearly we've been in the technology and the engine is able to provide an unparalleled ascendancy. They put a huge amount of experience and better next year.
Paul: Chris Evans, the questions, but I'm not going to ask that will come in because they with FES questions have been asked already that will be tried to script and this is being recorded as well so you'll be up to <unk> questions.
Paul Mann: Could you give some guidance on the timing of the construction around those plants, please? Yes, I think it can be obtained.
Nick Lawson: There's lots of questions, by the way, I'm not going to ask that have come in because they refer to questions that have been asked already. There will be transcripts, and this is being recorded as well, so you'll be able to see answers to those questions. What is your vision for the company's growth over the next three to five years? Are there any specific milestones you aim to achieve?
Paul: What is your vision for the company's growth over the next three to five years, so that any specific milestones you aim to achieve.
Speaker Change: Singing PARAGARD chain that kind of a.
Paul Mann: The building of the turbine plant was two months. It took six months for procurement, but two months to actually put it all together and construct it. Then they spent about six months commissioning it and, you know, fighting through the various small problems that occurred during the early stages of any plant start-up.
Speaker Change: I'm sorry.
Speaker Change: I remember talking to the rent to make amendments.
Paul: Yes.
Speaker Change: Tom at this time, we Havent communities has been extended by Congress.
Speaker Change: I don't want to do.
Paul: No.
Speaker Change: We have a suspect shredding sir.
Richard: Richard facilities, sometimes it's north Africa and other countries.
Speaker Change: Sure.
Speaker Change: Introspection marriage.
Paul Mann: We've got internal targets. Certainly we haven't communicated those externally, but our goal is to build many more isotope enrichment facilities, some down here in South Africa, some in other countries, and expand our footprint into other regions. If we do that, hopefully the P&L will follow.
Speaker Change: It would be great if you've got as Tom.
Paul: And expand our footprint into other regions.
Speaker Change: First half of this year and the time stopping something in the second half of the year.
Paul: And if we do that.
Paul Mann: So, you know, I'd like to think we have the first large kind of coming into action later on this year. We'll see. It depends on the givens. And, you know, we require export permits from certain countries to ship lasers into South Africa. We require import permits to get into South Africa. And they can take some time to go. They're under our control. We apply for the export permits from the country we need them from. And so, you know, we'll wait and see how long it will take.
Richard: Absolutely.
Richard: The P&L profile.
Speaker Change: And then just some patents out but you've talked in the past that's shovels.
Richard: Head count changes in the next 12 months scopes of idea of head count now and where you see yourself in the next 12 months.
Speaker Change: Travels in the ground can you expand on that yes.
Speaker Change: So we need to go to 10 minutes, you just sugar to testify enrichment processes are kind of drama.
Richard: Right.
Richard: 130, something similar to that experienced narrowed to 150 companies trying to April April snow.
Nick Lawson: Headcount changes in the next 12 months. Have you got some idea of headcount now and where you see yourself in the next 12 months?
Speaker Change: The first are the fastest growers secondly notes has been procured as being constructive.
Paul Mann: Right now, we were 130 something on 31 December, and now we're like 150. We probably add a few more people still. They will come in over the next couple of quarters. We have headcount now to operate the existing facilities that we have. They're fully staffed, we were carrying a cost for those actually for most of last year. As yet, we will add a select few more people. I think the big hires we need to make this year, I think we need to hire a head of medical isotope sales in the United States and one in Europe as well. I think we need to add a head of electronic gases sales in the United States, or globally, I guess. They're the three main hires I think we're now ready to hire.
Richard: And then.
Speaker Change: Okay.
Speaker Change: So you drive around the second one is built some coverage got Oscar.
Richard: And then it will come in in the next in the next couple of next couple of quarters. We haven't we haven't had that kind of a now too.
Dr. Henrik Strydom: Henry, so the press release talks about the expectation with Ytterbium-176 getting to 99.75%, what's the nameplate on the facility and how quickly do you expect samples to be approved? Well, to get to 99.75 in one step is not possible, we do it in batches, so the first batch works up to 88-90% and that takes a long time, and then the last bit takes about a day to get to 99.75.
Speaker Change:
Speaker Change: Stocks are.
Speaker Change: Southern fishing port Arthur.
Speaker Change: And.
Speaker Change: Where do your existing facilities.
Richard: That's pretty soft and so on.
Speaker Change: So can you give us.
Speaker Change: I'm very proud of your customers actually most of last year.
Speaker Change: Some updates on waiver cuts, but we also went to the building of the plant stopped.
Speaker Change: So, yes, we will absolutely be adding more people I think.
Speaker Change: Yes, so I mean again to discuss some of the judgment and the regulator is doing very well naturally coming to us directly.
Speaker Change: Goodbye us we need to make this year.
Speaker Change: The Westwood and <unk>.
Speaker Change: I think we need to hire a head of medical license sales in the United States as well.
Speaker Change: January for a couple of nice to me that the government ministers.
Speaker Change: A short turn into marks have been restructured and the soft goods side of it.
Speaker Change: As a.
Speaker Change: Hey.
Speaker Change: So on top of that.
Speaker Change: Excellent gas or sales.
Speaker Change: But a great reception and that excites me vouchers.
Dr. Henrik Strydom: Yeah, we have a couple of guides on where we're going to ship it, but I think we're set for the first half of the year, probably to 10% more or something like that.
Speaker Change: He might have schedule closing of our guests.
Speaker Change: Going to Washington to barrels.
Speaker Change: Management remains the highest I think we've got really expire.
Speaker Change: Medical office facilities.
Speaker Change: Total, making a decline until we were actually seeking price reductions in their remarks.
Sort of things that are enabling next generation semiconductor.
Paul Mann: Okay, given the SMR race in the US, are there any plans or ambitions to expand manufacturing enrichment capabilities in North America? Absolutely we have plans to do that. It's likely we'll try and find a partner on that one by ourselves. And so if you're looking for that, we've partnered up with NEXA, it's an African nuclear engineering corporation. We've made our own lineup in the United Kingdom with a partner there, and we'd like to partner up with somebody in the United States as well to help through the regulation, licensing challenges. And again, constructing any form of uranium or it's the licensing and the regulation side that takes the time, it's the longest part of the process.
Speaker Change: The assistant crashed.
Speaker Change: Yes, certainly.
Speaker Change: I mean, there's lots of questions, but I'm not going to ask that have come in because they were first questions have been also ready they will be tried to script and this is being recorded as well so you'd be able to sell to those questions. What is your vision for the company's growth over the next three to five years, so that any specific milestones you aim to achieve.
Mike: It's Mike.
Speaker Change: Okay.
Paul Mann: With Talbot, making a big hire until we were actually into commercial production. Now we are starting to make those hires.
Speaker Change: There's quite a few questions for me a bit fast and furious.
Speaker Change: On this one.
Speaker Change: When do you start when do you actually think youll start switching products in <unk>.
Nick Lawson: Okay. There's quite a few questions. I'm going to be a bit fast and furious here, Paul and Henrik, on this one. When do you actually think you'll start enriching products in Pelindaba?
Speaker Change: The audio drama.
Speaker Change: It kind of comes to the pension.
Speaker Change: Yes.
Tom: Tom at this time, we Havent community.
Speaker Change: Do you think we can do this year.
Speaker Change: Obviously, I cant make any guarantees because it comes down to the NFL, Mr National New curriculum.
Tom: Now I'll cover a typical spending Washington, Myford facilities, sometimes here in South Africa. Some in other countries.
Paul Mann: That's out of my control. That comes down to the regulator. I'd like to think we can do it this year, but obviously I can't make any guarantees for that because it comes down to the NNR, which is the National Nuclear Regulator. They've been very supportive, and this is classified as a high impact project for the country. It's getting a lot of attention from the government and from the regulators. We hope that they'll be forthcoming and cooperative and helpful.
Speaker Change: Nice quarter.
Tom: And expand our footprint in China to other regions.
Speaker Change: This is a customer who has a high impact project in the country.
Tom: And if we do that.
Speaker Change: I'm, sorry can I have a lot of attention from the government regulators.
Tom: Absolutely.
Tom: The P&L profile.
Tom: Head count changes in the next 12 months you discussed the idea of head count now where you see yourself in the next 12 months.
Speaker Change: B b are forthcoming.
Paul Mann: Is there, I mean I sort of know the answer to this, can you give any comment on the timing of the QLE spinout? You know, we haven't given any guidance yet as well, but what we have said is that we would like to do it when, well, there are two things that had to happen in order for us to be able to spin out QRE, the first is that we had to identify our location where we would build the first uranium part. And obviously, we've never been able to send that kind of data in South Africa, and we're working hard to secure the appropriate licenses and papers that we need to build that part, to build the test bed and research up there.
Speaker Change: Two of them done.
Speaker Change: Helpful.
Tom: Right right.
Speaker Change: How are the market prices changing in the three producing two types of environment.
Tom: Great.
Tom: The funding assumption in December when expressed in there were 150 companies trying to April April style.
Speaker Change: So there's a couple of them were tending to fix.
Tom:
Speaker Change: <unk> hundred $24000 environment.
Nick Lawson: How are the market prices changing in the three producing isotopes at the moment?
Tom: Thanks.
Tom: They will come in over the next couple of over the next couple of quarters. We have we haven't had that kind of an hour or two.
Speaker Change: I'm asking.
Speaker Change: Take or pay contract with advice.
Paul Mann: Carbon-14 is a fixed $24,000 a gram. That's a take or pay contract for that price and supply. It's fair to say that we've had a bit of pushback from customers when we talk about $20,000 a gram. There seems to be a lot of demand at that price. Silicon-28 is the one where I think we will lower the price a bit. We're talking about half a million dollars a kilo. Up until now, I think we can bring that price down a bit to try and push more demand into the marketplace and make it so that we can always split the market so that people get excited about using Silicon-28 and then find other places to use it.
Speaker Change: The supplier.
Speaker Change: We got on their infrastructure customers moving record volumes on the grammar.
Tom: Whether the existing facilities that we have.
Tom: That's pretty soft.
Speaker Change: I listened to a lot of demand in our price.
Tom: I'm very proud of it of course.
Tom: Most of last year.
Speaker Change: Similar to <unk>, where I think we will know what the participants. So we took about a half a million dollars of qunar.
Tom: So as you know we will school asked me out of selling to be honest with people I think.
Paul Mann: And the second thing we needed was to see the line of sight, to see the cash flow break even, or better than ASP Isotopes. Obviously now we've got three blocks up and running, I think that box has ticked as well. as soon as possible. Part of it is out of our control. We need to file some documents with the SEC and then get reviewed by the SEC. That's sort of the 30-60 day process. So we could be doing it quite soon.
Tom: Bigger buyers need to negative this year I think.
Speaker Change: Until now I think you can figure out <unk> trying to push into the bond market.
Tom: We need to hire a head of medical licensure sales.
Tom: Thanks, I wanted to get out of as well.
Speaker Change: Make sense.
Speaker Change: We spoke to the market so that people can excited if I understood. It.
Tom: Didn't mean to ask.
Tom: Hey.
Speaker Change: And final complex usage.
Tom: Excellent gas or sales gain minus digitalglobe gas.
Speaker Change: Got it understood. It before if we can build sort of intrinsic Boston Washington.
Speaker Change: It starts with scale and also <unk> sorry.
Tom: So that remains the highest I think we've got good each partner.
Paul Mann: As I think I said it before, if we can build a Silicon-28 plant in Iceland, and it's of the right scale and of the right size, that's when we're going to be making, selling it at $20 a gram. That's still maybe 75% gross margin. That's obviously some years away. That's, as a grocery list in life, that's call, walk, then run.
Speaker Change: Suddenly tons of them.
Tom: Hello, making the clients who were actually reductions in their remarks.
Speaker Change: Got it that's what makes it 75% gross margin.
Paul Mann: Yeah and I think you and I can maybe mention that the appetite obviously by the investment banks, this hits the absolute sweet spot in terms of the sort of energy transition profile for large investment banks.
Speaker Change: So if we see some news away.
Tom: Certainly it is not.
Speaker Change: As soon as the restaurants in markets Cool walk there.
Tom: Okay. So we are of course quite a few questions showing me a bit fast and furious get Poland on this one.
Speaker Change: Okay.
Speaker Change: Obviously, we had the penetration of your Bakken and they've had a lot of Salix grief.
Tom: When do you start when do you actually think youll start switching products in <unk>.
Paul Mann: Another question, have you signed any supply agreements for Uterbium? Are you still on pace to sell a kilogram this year? And the price reference here is $20,000 a gram, is that still correct? So, discussions with customers over around $20,000 of RAM. Customers want to have a sample before they place an order. So, what the customer will have to do is check that when they put it in, when they evaluate it with Neutron, that they are able to turn to TCM 177 and not get any long-lived isotope to produce. So, what's important in the spec is not Neutron 176 being over 99.5%.
I got to tell you that in terms of intellectually, but in terms of sell side coverage question here it would be great to get both sell side coverage sudden lend more credence to the story or are there any updates coming in.
Nick Lawson: Okay. Obviously, we had the Fuzzy Panda Research issue back in November 2023, which we've sort of got over in terms of intellectually. In terms of sell-side coverage, the question here is, it would be great to get more sell-side coverage to lend more credence to the story. Are there any updates coming here?
Tom: Our controllable.
Tom: Kind of come into the picture.
Tom: How do you think we can do this year.
Tom: I don't honestly I cant make any guarantees because it comes down to P&L.
When you can maybe mix or anything you can say.
Speaker Change: I've talked to a number of investment banks are in New York.
Tom: We will do it.
Tom: This is a customer has a high impact project in the country.
Speaker Change: Weeks ago, two of them come with investment banks.
Speaker Change: Yeah.
Speaker Change: Uh huh.
Tom: I'm, sorry, it's kind of a lot of attention from the governors rent trends.
Paul Mann: I've talked to a number of investment banks. I was in New York a few weeks ago talking to a number of investment banks. Fingers crossed, let's wait and see. Hopefully, yes.
Speaker Change: Fingers crossed bankruptcy.
Speaker Change: Hopefully, yes, okay. A question have the cyclotron center, Norway are there any collaboration so what's the current relationship that in any one of our collaborations.
Tom: That would be forthcoming.
Tom: Two of them done.
Tom: Helpful.
Tom: How are the market prices changing in the three producing up the types of environment.
Nick Lawson: Okay. A question here. The Norwegian Medical Cyclotron Centre, are there any collaborations? What is the current relationship there, and are there any ongoing collaborations?
Speaker Change: Couple of them as we signed MDA has become economy took about our discussions with other entities not common stock.
Tom: So there are a couple of thoughts.
Tom: $24000 environment.
Paul Mann: It's actually how low the Neutron 171 is. And so, they're going to want to see that.
Paul Mann: Again, with the customers, we sign NDAs and we can't really talk about our discussions with other government entities and that kind of stuff. We know the Norwegian Medical Cyclotron Centre very well. It's a really good center. It supplies most of Norway with its PET isotopes and its SPECT isotopes. Actually, all the GE HealthCare is from there as well. It's got a great group of scientists up there. It's a pretty fantastic facility. Yeah, we know it well.
Speaker Change: I'd note that Norway.
Tom: Yeah.
Speaker Change: Thank you very well.
Tom: And.
Tom: Can I ask about a potential comprehensive advice.
Speaker Change: So reading center.
Speaker Change: So 500 and growing with the peso compared to the spectrum of asset types.
Tom: The supplier.
Paul Mann: I'm very confident about the spec, but I haven't got it yet. So, they're going to want to see that and ask me what they need to see before they can select someone to supply them to an order. We've got a lot of interest in a Neutron view.
Tom: We got on their infrastructure customers, when we talk about metropolitans loans the grammar.
Speaker Change: And who.
Speaker Change: <unk> got data from them as well.
Tom: Listen to a lot of demand on our price.
Speaker Change: Great.
Speaker Change: This is pretty at a customer's facility.
Tom: So that's intrinsic nature as the bulk of it I think.
Tom: We will know what the participants so we can talk about a half a million dollars a key.
Speaker Change: Yes, well.
Speaker Change: With that and letting them with more than 19, either multi hundred enrichment are there any sector partnerships with organizations and enrichment development net.
Paul Mann: We probably have a two-key bit around getting the giga demand already from customers.
Tom: Peter.
Speaker Change: So now we can.
Speaker Change: Turning to FY <unk> triumph machine demand market.
Nick Lawson: I'm just going to jump a couple of questions because there's quite a few on Ytterbium.
Nick Lawson: With Molybdenum-99 and Molybdenum-100 enrichment, are there any potential partnerships with US organizations in the enrichment development there?
Dr. Henrik Strydom: So you mentioned the ability to scale up the Ytterbium-176 plant by adding additional vessels. Is that still something you expect to do? It is, yes.
Speaker Change: Making sure that we don't expect market. So that people get excited if I understood. It in terms of anything final and places to use it as having gotten I've said it before if we can build sort of retrenched lost milestones and it starts with scale and also <unk> sorry.
Speaker Change: However.
Speaker Change: Yeah.
Speaker Change: We have just got out of it.
Speaker Change: Discussions.
Speaker Change: Discussions with potential partners there.
Dr. Henrik Strydom: Whether we do it in the existing building or whether we, you know, do it in a new building, we'll have to wait and see. You know, Professor Gay, it doesn't take long to mount the vessels, does it? And what are your thoughts on that? Yeah, that's the easy part. I mean, when the beam goes through the first vessel, you have very little of the life and you have a lot of layers of life left for numbers of vessels to follow. It's sort of a question you've sort of answered, Henrik, around the number of passes to get to 19.75%.
Speaker Change: Now the biggest compression will continue to be having technical answer to it.
Paul Mann: We are having discussions. We have been having discussions with a few potential partners there. That's the biggest commercial opportunity I think we have in medical isotopes. It will take a while to get into, but there are certain customers that want to take Molybdenum-100 or Molybdenum-98 and convert it into Molybdenum-99 or Technetium-99m.
Speaker Change: I'm not going to get out.
Speaker Change: Some of it.
Speaker Change: I was wondering if 75% gross margin.
Speaker Change: We'll take care of it will take a while to get into.
Speaker Change: And also if we see some news right.
Speaker Change: There are certain customers, what's 10 system.
Speaker Change: Medicine.
Speaker Change: <unk> cool walk there.
Speaker Change: We'll get into a car T actually convert into pretty much in line.
Speaker Change: Okay.
Speaker Change: Obviously, we had the penetration of your Bakken and they've had a lot of Salix reef.
Speaker Change: Got it.
Speaker Change: Okay, I'm not going to I'm not going to office as a question because I think it's more of a communist concentrate but I think a lot of people quite keen now with.
Speaker Change: Got to tell you that in terms of intellectually, but in terms of sell side coverage question here it would be great to get both sell side coverage sudden lend more credence to the story of any updates coming in.
Speaker Change: The from a CFO perspective that we get perpetual results in a more timely manner, how would you respond to that.
Nick Lawson: Okay. I'm not going to ask this as a question because I think it's more of a comment that's come through. I think a lot of people are quite keen now from a CFO perspective that we get financial results in a more timely manner. How would you respond to that?
Dr. Henrik Strydom: Are there any technical limitations to reaching that and how many additional passes do you have to do? We haven't disclosed the number of lasts we have to do, but any technical changes? No, I mean in single runs we've demonstrated about 90% enrichment already. But then you also do a little bit, so you actually need to have a sweet spot where you run your patches.
Speaker Change: Yeah.
Speaker Change: I think last year, we have enjoyed the CFO.
Speaker Change: I've talked to a number of investment banks are in New York.
Speaker Change: Three weeks ago.
Speaker Change: Sure, but deadlocks buybacks three or four days.
Speaker Change: <unk>.
Speaker Change: Yes.
Paul Mann: Yeah. I think last year before Heather joined as CFO, we missed 2 of the deadlines by about 3 or 4 days. At least this time we filed on time, which was 21 March. Heather's doing a great job of putting in place a lot of the controls and the procedures and the processes that we need in order to be SOX 404(b) compliant and SOX 404(a) compliant. With that comes more automated, better invoicing. You have to remember down here, South Africa, a lot of invoices are still done on paper. It just takes time for auditors and accountants to get their pieces of paper together and put them into financial statements.
Sure.
Speaker Change: One we filed on time, which was March 21st.
Speaker Change: I think it's great to see.
Speaker Change: Okay. A question here the cyclotron center, Norway are there any collaboration so what's the current relationship that in any one of our collaborations.
Speaker Change: Great job putting in place.
Speaker Change: On the procedures and processes that we need in order to be sub score, which will be compliance personnel school already confirmed.
Speaker Change: Okay.
Speaker Change: Dot com.
As we sign an NDA as you can be commonly talk about discussions with other companies.
Speaker Change: To make it better and sitting and Ravi entrepreneurs aren't here in South Africa.
Paul Mann: You know, I think that's a difficult one to answer. Right now, we're clearly very interested in two Kiva RAMs from various customers. But you know, Kuvicto, I think they've been in service here since launch. Kuvicto is likely, you know, growing there over the next several years as well. There are a number of other, each of which is in maybe a fair few tricks of development from other companies. You know, Vasa are not paying for applications for Kuvicto.
Speaker Change: Entities not comments, we noted that none of the Norway circumstance for Central Bank well.
Speaker Change: We still don't have a pipeline.
I'm sorry, it just takes time and we're going to use and the accountants to get SBC.
Speaker Change: So reading center.
Speaker Change: Uh huh.
Speaker Change: And there is enormous.
Speaker Change: Commercial centers.
Speaker Change: With respect to our centers.
Okay. Thank you are you seeing any new emerging competitors with the market opportunity ex Russia.
Speaker Change: Sure.
Speaker Change: Data from them as well.
Speaker Change: Besides that this is really a testament to <unk>.
Speaker Change: No.
Speaker Change: Gosh, it's kind of a single universities are now starting to be fully featured in 176, one talks to few cramps.
Nick Lawson: Okay, thank you. Are you seeing any new emerging competitors with the market opportunity ex-Russia?
Speaker Change: Yes.
Speaker Change: With them letting them with more than 19, either multi hundred enrichment are there any et cetera partnerships with U S organizations and enrichment development net.
Nick Lawson: Paul, very quickly, can you bring the microphone a little bit closer? It's a little bit muffled, the audio. If you could just bring it a little bit closer to you, please. Is that better? That's better. Okay.
Paul Mann: No, we're not. No. Actually, a couple of small universities are now starting to be Ytterbium-176. I'm talking just a few grams. We have certain things like Silicon-28, Carbon-14. There's not any competitors there. Silicon-28 is an interesting one. In theory, Orano, URENCO, and Rosatom can all enrich Silicon-28. When you talk to the semiconductor companies, they can't use the Silicon-28 they produce very easily because it's just silicon tetrafluoride. They can't get it to 6N purity. What they really get out is amount of disilane, chlorosilane, methylsilane. We get the silane. They struggle to use it. I think that's, while I'm told they can produce it, there hasn't been much of a market impact or demand for it from semiconductor companies.
Speaker Change: But we are.
Speaker Change: They're starting to think about 228.
Speaker Change:
Speaker Change: Tom Unfortunately.
Speaker Change: However.
Speaker Change: Remember those are going to be competitive set centered <unk> interest in <unk>.
Paul Mann: So, Kuvicto has been in service for a year since launch. So, you know, it's still growing very strongly. And there are lots of clinical trials to expand the number of indications for Kuvicto. In addition to that, there's a number of companies running for us. It's just in 177 as well. So, you know, I think we're in the early stages of the product cycle. But, you know, we'll have to wait and see how big it actually ends up and the coming ideas to come. But right now, we're at about 2 kilos of demand.
Mary: And we've had this is Mary.
Speaker Change: Discussions.
Discussions with potential partners there.
Speaker Change: And with Samsung.
Speaker Change: But in general the semiconductor covering these they cant use a silicon friendship into two studies.
Speaker Change: Now let's start with.
Speaker Change: The biggest compression with the change I think we have an epic launch eclipse it will take care of it will take a while to get into.
Speaker Change: So maybe touch on shortly.
Speaker Change: And I can't get into six synergetic to Nicolas.
Speaker Change: There are certain customers Watson will.
The beauty of approximately SAR rate progress on at least all signs despite it.
Speaker Change: We will move to a car T actually converted into so much like you mentioned auto.
Speaker Change: So there's certainly procedures are behind us.
Speaker Change: Okay.
Speaker Change: Welcome to the office of the questions I think it's more of a communist concentrate but I think a lot of people are quite keen now with Oh.
Speaker Change: I'm talking about a kind of a judicious.
Speaker Change: We approached the market time to monitor concerning.
Paul Mann: Okay, so in terms of 2 kilos of demand, so in terms of ramping production, it's going to be a function of the demand you see for it, or do you have plans to ramp up production? We have plans to ramp up production without meeting the orders in hand. Okay.
Speaker Change: With the folks from a CFO perspective that we get but actual results in a more timely manner, how would you respond to that.
Speaker Change: So since you are announcing his nose pressed the weekend are either about to conclude Victor just talk about how many new contracts you expect to sign in <unk> in the coming year.
Speaker Change: Yeah.
Speaker Change: I think last year.
Nick Lawson: Paul Mann, I know there was a lot of press at the weekend about Novartis and Pluvicto. Do you want to just talk about how many new contracts you expect to sign in Silicon-28 in the coming year?
Having joined the CFO.
Speaker Change: So the contracts, yes onyx.
Speaker Change: We missed a deadline by about three or four days and at least at this time, we filed on time, which was March 21st.
Speaker Change: Got it.
Paul Mann: So, we're coming back now a little bit to the financials and also to the contracts with the SMR company. So, given your expansion plans for the second half, do you expect to be doing another equity raise? I think if you look at our balance sheet on December 31, we know we haven't got much cash in that balance sheet at the end of the year. If you look at how much operating cash flow we spent last year, it's about $15 million. If you look at $15 million at the beginning of the year, it's about four years of operating.
Speaker Change: Yeah.
Speaker Change: Hi.
Speaker Change: Customers.
Speaker Change: And it expenditures funded with cross border simpler.
Paul Mann: Silicon-28, I'd expect, we're talking to four or five customers right now, and I expect to sign contracts with all of them at some point.
Speaker Change: Hello, Greg Johnson is putting in place the trials on the procedures and processes that we need and it will be sub score before b minus principal global marine component.
Speaker Change: Good question, Patrick and about the short interest in the stock right now, 30% which is.
Speaker Change: So stroke bearish sentiment.
Speaker Change: Google Dot coms.
Speaker Change: Sorry, Paul do you mind, just moving them closer to your place in the market.
Nick Lawson: Question back again about the short interest in the stock. We're now at 30%, which is sort of strong bearish sentiment. Sorry, Paul, do you mind just moving the microphone even a bit closer to you, please?
Speaker Change: Mobile to make to better pinpoint sitting and Ravi entrepreneurs in Africa.
Speaker Change: Great.
Speaker Change: The vision.
Speaker Change: We still don't have a pipeline.
Speaker Change: Okay.
Speaker Change: So that there is demand because you pulled on my part off the wall place.
Speaker Change: And similar to the second time in order to choose and accountants to kind of see you guys are going to die.
Paul Mann: Yeah, the microphone's stuck on the wall over there by the television.
Speaker Change: On commercial centers.
Speaker Change: Sorry, sorry to everyone. Secondly, contact here. This is correct that's as clear as we were going to get I'm, sorry about that so just on the short interest in the stock.
Speaker Change: Okay are you seeing any new emerging competitors with the market opportunity ex Russia.
Nick Lawson: Listen, man, could you pull the microphone off the wall, please? Sorry. To everyone saying you can't hear it clear, this is as clear as we're going to get it. I'm sorry about that. Just on the short interest in the stock, that 30%. We've done a lot of work on this, and we obviously know that a lot of it is quant driven. It's based around algo that looks for sort of growth stocks, pre-revenue, exhibiting certain characteristics. Nonetheless, the stock is still down 50% since the Fuzzy Panda report. Is there any message, it sounds a bit of a trite question, this, but you would like to give to short sellers and naysayers?
Paul Mann: Operating burden sitting on the balance sheet. We hope to get cash flow back even better in the second half of the year. If you look at the capital costs of building these laser plants, it's not that significant. Our material capital is really pretty remarkable. So the Eterbium-176 plant probably came in at about $53 million, that kind of number. We spent $2.5 million initially, and we had about $0.5 million of capital exit in the final few months. And so these plants are large and aren't expensive.
Speaker Change: Now I'm an old guy.
Speaker Change: <unk>.
Speaker Change: I mean.
Speaker Change: Gosh, it's just trying to kind of a single universities are now starting to peacefully peach have been 176, one talks to few cramps.
Speaker Change: We've done a lot of work on this and we obviously know that the other base quote driven its base right now that looks for growth stocks pre revenue exhibiting certain characteristics, but nonetheless, it's still about 50% since the fabric pattern to report is there any message I've said try question you would like to get to short <unk>.
Speaker Change: But we're not going to.
Speaker Change: There's certainly things like 228.
Speaker Change: <unk>.
Speaker Change: Tom Unfortunately.
Speaker Change: I'm also going to be compared to set the.
Speaker Change: <unk> interest in bottles.
Speaker Change: Although the character and perception on Corona, which sort of insurance.
Speaker Change: Yes.
Speaker Change: You can find themselves.
Speaker Change: Sure.
Speaker Change: The material into semiconductor covering these they cant use silicon friendship into two studies.
Speaker Change: Correct.
Speaker Change: Just kind of assume are going to be a terrific trading stocks.
Paul Mann: Listen, I'm not going to be buyers and sellers to work. I've spent most of my career trading stocks. It tends to make a market. What I would say is the short interest in most of the nuclear stocks is pretty high. If you look at Oklo, NuScale, Centrus, and Island Gold, pretty high. There's a lot of non-believers in nuclear.
Paul Mann: Before we get on to TerraPower, a couple of questions around the QLE convertible note. Any progress around the note?
Speaker Change: Similarly, Texas.
Speaker Change: Except to you to make a market.
Speaker Change: And I can't get into six energy over to Nick Holland.
Speaker Change: What I would say is this really interesting metric of new consulting pretty hot.
Speaker Change: Approximately sorry made progress on a peaceful side, we're getting exciting.
Speaker Change: All right.
Paul Mann: And also today a new subsidiary was added as part of the 10K, QLE TP Funding LLC.
Speaker Change: Interest.
Speaker Change: Hi.
Speaker Change: So just wondering if you guys are behind us.
Speaker Change: Normally we would use it.
Speaker Change: And I think a lot of it.
Paul Mann: Can you talk a little bit about what that is, what that subsidiary is for, and also any progress on the QLE convertible note? So, I'm trying to press on the QLE convertible notes, you know, I mean, I think that'll convert into QLE stock on the spin-outs, and so, I mean, there's not much further to make them, the spin-outs, the spin-out will be converted.
Speaker Change: The phase function of the way in which the outbreaks offsets and if you look at the.
Speaker Change: I'm talking about it kind of juices, how can we approached the market tangible demands are concerned.
Speaker Change: Distribution amongst the shorts.
Nick Lawson: No, they are, and that's right. I think a lot of it, as I say, is a function of the way in which the algos are set. If you look at the distribution amongst the shorts, there is a very large number of them. A couple more questions, and then we're getting towards the end of the time. Just so you know, I'm not going to be answering all of them. A lot is around analyst coverage, when you're going to bolster institutional interest. Here we have one here asking about when we'll get independent commercial third-party confirmation that enriched silicon is 150% more efficient than unenriched silicon.
Speaker Change: So since you announced has no impressed the weekend about about pubic Tetra and just talk about how many new contracts you expect to sign in silicon <unk> in the coming year.
Speaker Change: Our large number of them.
Speaker Change: So.
Speaker Change: A couple of more questions that we're getting towards the end of the time, just say you know nobody else Rosebel lots is around analytics cap rates, when you're going to bolster institution interests, but hey, we have one here.
Speaker Change: Just trying to get at unexpected.
Speaker Change: Hi.
Speaker Change: Looking about where milk get independent commercial third party confirmation the NIM rich silicon is 150% more efficient than an enriched silicon.
Speaker Change: A lot of customers.
Paul Mann: In terms of that new subsidiary, ASPI-TP funding, You know, it's difficult for me to really comment on this, I wasn't actually aware that I was going to mention that. You know, it's when we fund the South African plant, it's likely our partner will want to fund it via a US entity, not via a South African entity. And so, that is an issue that's set up to receive capital to flow to South Africa to build their uranium facility.
Speaker Change: Expenditures funded with cross border some work.
Speaker Change: Good question, Patrick and about the short interest in the stock right now, 30% which is.
Speaker Change: Okay.
Speaker Change: So the answer to that.
Speaker Change: Stroke bearish sentiment.
Speaker Change: No no because it sounded like they spend more.
Speaker Change: Paul do you mind, just moving them closer to your place yes, Michael.
Speaker Change: Total TSMC any surgery published results, indicating that and that makes your synergies.
Michael: Great and then one on the TV.
Paul Mann: The answer to that is I don't know, because it's unlikely that Intel, TSMC, and so forth, will publish the results they get in their research facilities. There are some scientific papers out there stating their performance. The experiments have been done already. I'd be surprised if our customers, who aren't academics, publish their work.
Michael: But could you point to that there is demand because you pulled on my part of the world place.
Awesome sounds like make it sometimes depends on that.
Speaker Change: St is expected in November.
Michael: Sorry, sorry to everyone. Secondly, contact care. This is correct escalators, we're gonna get I'm, sorry about that so just on the short interest in the stock.
Speaker Change: So I mean so.
Speaker Change: We've done already.
Speaker Change: I think in parts of our customers.
Paul Mann: Okay, so into TerraPower now. So lots of questions here in terms of the current status of the contract, things like the prepayment timelines, and the sort of bigger question of TerraPower as a US partner. So, we're talking about a number of potential direct polymers. One of them is likely to be Terra Power, they clearly have a good relationship with the U.S. government, with the DOE, the new regulator. But other people have, other people are, are closest to the uranium enrichment cycle and they are so, so we'll see.
Speaker Change: Well I'll talk about index published networks.
Michael: Ed.
Michael: Yes.
Michael: <unk> done a lot of work on this and we obviously know that other base quote driven its base right now that looks for growth stocks pre revenue <unk> set some characteristics, but nonetheless, the stock is still down 50%.
Okay, So I'll take that.
Speaker Change: We're getting risk because of the items.
Speaker Change: Any more questions its loss talks about them up.
Speaker Change: One last question about capacity utilization of pet apps for radio Shar subtypes kind of be increased at low cost.
Nick Lawson: Okay. I think we're getting relatively close to the end. Any more questions? It's the last chance to type them up. One last question about capacity utilization at PET Labs for radiation isotopes. Can it be increased at low cost?
Michael: Since the February pattern to report is there any message I tried.
Michael: <unk> question is that you would like to get the short sided from nice says.
Thank you Mitch.
Speaker Change: This is money well spent and flatiron, we retired last year.
Michael: Yes.
Michael: Okay.
Michael: Uh huh.
Speaker Change: Turning to full production funds minority currently which is huge.
Michael: I'd have to spend the rest of them are going to be a trading trading stocks.
Paul Mann: The answer is that we are increasing it. PET Labs is running flat out right now. It was running flat out when we retired last year. They're doing 4 production runs a night currently, which is huge. We've added a cyclotron into PET Labs here in Toronto. We're actually in the PET Labs building today. We're at PET Labs offices today. That's waiting for the final improvement from SAHPRA, which should come in the next few weeks or so. That can start producing more commercial products and really ease the supply shortage. Our SPECT analysis received its commercial assets last week, we should see good growth in PET Labs as 2 of those new assets coming on stream.
Michael: Turning to you to make a market.
Speaker Change: Got it.
Speaker Change: The cyclical independent upscale.
Paul Mann: In terms of the status of the contracts and stuff, you know, we will announce, we will announce to the market when we've decided definitive supply grids and definitive investment to do, which is what we are working on at the moment. You know, supply grids and investment grids are quite challenging things to put together, they take a long time. You know, so, so just to provide an example, you know, you know, who's shipping the product, who takes the title of the product, where and when, who is getting the feedstock for the block, what the feedstock is going to look like, what the spec of the feedstock is going to be, all of that has to be detailed in the contract.
Michael: What I would say is this really interesting metrics you guys saw some pretty hot.
Speaker Change: And Jordan I wondered rush in the patent office building today.
Michael: Now that means central us.
Speaker Change: Total since July.
Speaker Change: And now as we're going through the final approvals in South, Florida, which should come in and exited a few weeks will center on American stock would you say more commercial production.
Michael: To be honest.
Michael: Literally we renew them.
Michael: And Thats right and I think a lot of as I say, it's a function of the way in which the archives offsets and if you look at the distribution amongst the shorts that was a very large number of them. So.
Speaker Change: Is the supply shortage.
Speaker Change: Shortage.
Speaker Change: Just received its commercial assets last week, sorry, we shouldn't see compared to kind of answer a few of those assets.
Michael: A couple more questions that we're getting towards the end of the time, just say you know nobody else Rosebel lots is around analytics cap rates, when you're going to bolster institution interests, but hey, we have one here you're asking about when we'll get independent commercial third party confirmation.
Speaker Change: Jamie.
Speaker Change: Okay lots of questions again about spin out of <unk>, we've talked about that's already that will be in the next afterwards.
Paul Mann: What our final specification is going to be and what it's going to be supplied in, what server it's going to be in, how it's going to be shipped. You know, there's an awful lot of information that has to go into a supply agreement, so they take some time to write, and so we're working on that at the moment.
Speaker Change: What is your view of post enrichment after nuclear radiation of OXXO types.
Nick Lawson: Okay, lots of questions again about spin-out of QLE. We have talked about that already. That will be in the notes afterwards. What is your view of post-enrichment after nuclear radiation of isotopes?
Michael: Rich silicon is 150% more efficient than unabridged silicon.
Speaker Change: Since separation again, what's your view post enrichment after nuclear radiation of Oxford types.
Michael: Okay.
Michael: So the answer to that.
Michael: It.
Michael: Just on the legacy of the East and one in China.
Speaker Change: Yes.
Paul Mann: Say the question again?
Speaker Change: I don't know because we haven't been on that.
Michael: TSMC and.
Nick Lawson: What's your view of post-enrichment, i.e., after nuclear radiation of isotopes?
Paul Mann: I mean in the meantime Oklo have made no secret of their respect for your business and vice versa, what's your relationship with Oklo like? Um, yeah, I can't really, um... Yeah, I can't be here.
Michael: Published results may get them back and that would be synergies. So.
Speaker Change: We maintained <unk> customers, making a fair amount of 88.
Speaker Change: Yes, we can make it.
Michael: So it sounds like the biggest sometimes to fix on that.
Paul Mann: I don't really have a view on that. We make stable isotopes, and then we sell to the customers, and many of whom then irradiate them. I guess we irradiate them at PET Labs.
Speaker Change: And so Scott.
Scott: Hey, guys hope scraping following he said the balance sheet used to keep you up at night now you're producing types what keeps you awake now.
Michael: Yes.
Michael: It's taken in front of us.
Michael: So I mean, so the expenses have been done already.
Paul Mann: We sign in here to the members of our customers and so I can't be talking about potential customers for partners or anything. I like Optimo. I think Optimo is a great company. They've got a great SMR. I think they've got the first to market their SMR. You know, they've got a great business model as well, so they've got a huge backlog of customers, huge backlog of customers.
Michael: I'm glad I don't be surprised if our customers do well.
Nick Lawson: Someone here who's obviously been following you said the balance sheet used to keep you up at night. Now you're producing isotopes. What keeps you awake now?
Scott: I mean, when do you think you are competing against governments couple of minutes.
Michael: Academics published network.
The old way of concern.
Michael: Okay.
Michael: We're getting breath because the items.
Scott: You know there's a lot of.
Paul Mann: When you're competing against governments, that's always a concern. I think one of our main competitive advantages are our capital cost to build a plant is so low. If one of these companies who want to build large facilities can look for free money from the government, then that will take away our competitive advantage. Hopefully governments will be more restrained about giving away a lot of free money to our competitors. It feels like there's more adults in the room now than there were two years ago.
Michael: Any more questions as lost talks about them up one last question about capacity utilization of pet lapse for radiation or subtypes kind of be increased at low cost.
Scott: Yeah.
I want to go from a major competitive advantage.
Scott: On a comparable constant but the plants are similar.
Scott: Let me just kind of amazing portable across search fees cannot feed money from the government.
Nelson: It's Nelson.
Speaker Change: Thanks Mitch.
Nick Lawson: Okay, we'll move on from that.
Tom: Tom why don't I, just wanted to touch on the retirement last year.
Scott: I'll take a part of the Red rock competitive advantage ceramic Lee gardens, and removal of straight without giving away free.
Paul Mann: So, two questions about permitting. Well, actually, the first one's about regulation. I mean, you and I had an amazing meeting a couple of months ago in Pretoria with Nexar.
Tom: But generally full production bonds currently which is huge.
Scott: The money to do our competitors.
Tom: Sorry, I missed part of it.
Scott: Okay.
Tom: We are a cyclical in Japan.
Paul Mann: What are your relationships like, or how are the regulatory discussions going with the South African government at the moment? Yeah, they're going really well. And I was actually invited to come and dialogue with the government ministers just last week to the Safari Reactor. And, you know, we have regular calls with Nexar. So, each side brings different skills to the table here. So, clearly, we've got the technology and the engineers able to design and build a certain team. But they've got a huge amount of experience in regulatory licensing, permitting, that kind of stuff. And so, you know, we're talking to the regulator at the moment.
Scott: There's more double dose.
Tom: <unk> hundred production in Australia today.
Scott: Two years ago.
Tom: Since July.
Scott: Alright, Okay. So just one thing I'd just say, there's lots of people asking about analyst coverage. One thing I will say if there was a.
Tom: And now just waiting for the final approval from South Korea, which should come in an extra few weeks et cetera.
Tom: I can start with <unk> snacking more professional production really easy.
Scott: Hosting channel curation connects with Arris and excellent.
Nick Lawson: Great. Okay, just one thing. As I said, there's lots of people asking about analyst coverage. One thing I will say is there is a hosting channel called Curation Connect, where there is an excellent ASPI page which gives all the relevant information in both short-form, long-form video, links to all the report and accounts, to the videos that Paul has done, to expert views and work. It's Curation Connect, you go into Showcases, and you go to ASPI Isotopes. That's a very good repository for those that are looking for more sort of analyst coverage. I will drop a link of the analyst coverage to someone who's asking for that link. We'll send that afterwards. It's curationconnect, all one word, .com. Hendrik and Paul, that was excellent. The news coming out is excellent. The critics are being answered.
Tom: The supply.
Tom: Shortage.
Scott: P I page, which gives all the relevant information in both the short form long form video linked.
Tom: I've just received its commercial assets last week, I'm, sorry, but shouldn't you could cut out just a few of those assets.
Scott: Links to all that.
Tom: Sure.
Scott: Both of accounts to the Pdas that pulled us down to expect these work is curation connect and you guys. Just showcases and you guys to Spi subtypes and Thats, a very good Republic treat but those that are looking for more so analyst coverage. So we.
Tom: Okay lots of questions again about spin out of <unk>, we've talked about that's already that will be in the next afterwards.
Tom: What is your view of post enrichment after nuclear radiation of OXXO types.
Tom: Since separation again.
Tom: What's your view post enrichment after nuclear radiation of oxo types.
Scott: Yes, I will drop a link of the analyst coverage to some of asking for that link we'll send that afterwards <unk>.
Paul Mann: And, you know, we have the first test bench ready to go. We're kind of building the second test bench for merit. And, you know, it'd be great if we could get that done in the first half of this year and stop doing something in the second half of the year.
Tom: Yes.
Scott: Curation connect all one word Doc column so.
Tom: We really haven't been on that.
Tom: We maintain device customers.
Scott: Hendrik and pull that was excellent the news coming out is ex the critics of being out. So we've got our results out on time as well everything is progressing in the right way I'd like to thank you for your time and I think we'll probably look to trial data.
Customers, making a fair amount of 88.
Tom: If you could maybe give us and.
Paul Mann: And just in Pellendarby, you've talked in the past that there are shovels in the ground.
Tom: So it's obviously been following you said the balance sheet used to keep you up at night now you're producing types what keeps you awake now.
Paul Mann: Can you slightly expand on that? Yeah, so we need to build two test benches to test our enrichment processes at Palindama. The first is built, the second is not yet built. It's being built, being procured and being constructed.
Scott: And a couple of off the top of the guidance, but thank you all for attending.
Nick Lawson: We've got our results out on time as well. Everything's progressing in the right way. I'd like to thank you for your time, and I think we'll probably look to try and do this in a couple of months' time again. Thank you all for attending.
Tom: I mean, when do you when you're competing against government governments, that's always a concern.
Scott: Yes.
Scott: Your questions and thank you for listening.
Scott: Interesting. Thank you.
Scott: Thank you.
Tom: You know there's a lot of.
Paul Mann: We'll ask you guys when the second one is built, when we get the permits and all that, to go in and start enriching products there.
Paul Mann: Yeah, thank you for your questions, and thank you, the audience, for listening. No trouble.
Tom: Yeah.
Tom: I. Thank all of our main competitive advantages or cost on a comparable cost to build the plants are similar.
Nick Lawson: Thank you.
Paul Mann: Thank you.
Paul Mann: And Iceland, so can you give us some update on where we are currently in Iceland and also when will the building of the plant start? Yeah, so again, discussing the New Icelandic Regulator is going very well, New Icelandic government is doing very well. I went to Weyston in January for a couple of days to meet with the government ministers. It's a bit of a short going to Weyston, a bit of a red sign from the South because some of them, a few of them went on to meet with them, but a great reception and they're excited about us coming to Weyston to build medical isotope facilities and, you know, certainly to enable next generations to make it.
Tom: Let me just kind of amazing Portugal last Saturday, she cannot feed money from the government.
Tom: I'll take a part of the Red rock competitive advantage so admittedly.
Tom: And removals right without giving away almost.
Tom: Regarding to your competitors.
Tom: Yeah.
Tom: Yes.
Tom: It's more of a double dose and we're moving on.
Tom: Two years ago.
Tom: Alright, okay.
Tom: One thing I ever say, there's lots of people asking about analyst coverage, one thing I will say if there was a.
Tom: Hosting channel curation connect with Arris and excellent.
Tom: ASP page, which gives all the relevant information both short form long form video link.
Nick Lawson: There's lots of questions by the way I'm not going to ask that have come in because they refer to questions that have been asked already.
Tom: Links to all that.
Tom: Potent accounts to the PD is a pull us down to expect piece of work is curation connect and you guys. Just showcases and you guys to Spi subtypes and Thats a very good Republic trip for those that are looking for more so analyst coverage. So.
Nick Lawson: There will be transcripts and this is being recorded as well so you'll be able to see answers to those questions.
Paul Mann: What is your vision for the company's growth over the next three to five years? Are there any specific milestones you aim to achieve? You know, we've got internal targets. We certainly haven't seen any of those externally. But, you know, our goal is to build many more ICIP and RISC facilities, some down here in South Africa, some in other countries, and expand our footprint into other regions. And if we do that, you know, hopefully the P&L will follow.
Tom: Yes, I will drop a link of the analyst coverage to someone's asking for that link we'll send that afterwards, it's curation connect overwhelmed Woodstock collar. So.
Tom: Henrik and pull that was excellent the news coming out is ex the critics of being out. So we've got our results out on time as well everything is progressing in the right way I'd like to thank you for your time and I think we'll probably look to trial data in a couple of bumps on the guidance, but thank you all for attending.
Nick Lawson: Headcount changes in the next 12 months.
Paul Mann: Can you give us some idea of headcount now where you see yourself in the next 12 months? So right now we're at about 130 something on December 31st and now we're at like 150. We've probably got a few more people still and they will come in over the next couple of quarters. We have a headcount now to operate the existing facilities that we have. They're fully staffed. And so we're carrying a cost of those actually for the most of last year.
Tom: Okay.
Tom: If your question so thank you.
Tom: As for interest.
Tom: Interesting. Thank you.
Paul Mann: We have selected the animal people.
Paul Mann: I think the big hires we need to make this year. I think we need to hire a head of medical isotope sales in the United States. We want to do it as well. I think we need to add a head of electronic gases sales in the United States or globally, I guess. So they're the three main hires.
Paul Mann: I think we now need to hire. We can't make a big hire until we're actually looking at production. I realise that's not the way it is.
Nick Lawson: OK, so there's quite a few questions. I'm going to be a bit fast and furious here, Paul, on this one.
Paul Mann: When do you start? When do you actually think you'll start enriching products in Palindawa? That's out of my control. That comes down to the regulator. I'd like to think we can do it this year, but obviously I can't make any guarantees for that because it comes down to the NLR, which is the National Nuclear Regulator. They've been very supportive, and this is classified as a high-impact project in the country, and so it's getting a lot of attention from the government and so we're hoping it'll be forthcoming and co-operative and helpful.
Paul Mann: How are the market prices changing in the three producing isotopes at the moment? So carbon-14 is a fixed $24,000 a gram, and, um... And yeah, that's the take-up there compared to that price.
Paul Mann: And Mr. Spiner, it's a good idea. We've had a pushback from customers when we talk about $20,000 a gram. There seems to be a lot of demand at that price.
Paul Mann: So for 2018 is the one where I think we will lower the price a bit. So we're talking about half a million dollars a kilo up until now. I think we can bring that price down a bit to try and push more demand into the marketplace and make it so that we don't set the market so that people can excite themselves until 2018 and then find other places to use it.
Paul Mann: I think I said it before, if we can build sort of a 2018 Martin Islands and it's of the right scale and of the right size, I'd love to make it, you know, if you can make it selling at $20 a gram, that's to make a 75% gross margin. But that's obviously some years away. And that's, you know, as a roadster, it's like a cool walk to the market.
Nick Lawson: OK, so obviously we had the fuzzy panda issue back in November last year, which we've we've sort of got over in terms of intellectually.
Paul Mann: But in terms of cell-side coverage, the question here is, would it be great to get more cell-side coverage to lend more credence to the story? Are there any updates coming here? You know, I've talked to a number of investment banks, I was in New York a few weeks ago, I've talked to a number of investment banks, you know, it's...
Paul Mann: Fingers crossed, let's make a seat. Yes. Okay.
Paul Mann: A question here. At the cyclotron center in Norway, are there any collaborations? What's the current relationship there and any ongoing collaboration?
Paul Mann: Um, and then, you know, a couple of us will be signing liaisons, and we can't really talk about our discussions with other government entities and that kind of stuff. We know the, like, we know the Norway Psychological Center very well. Uh, it's a really good center. Uh, it's advised most of Norway to detect isotopes and inspect isotopes. Um, um, and so we've got a view from them as well. So, it's, um, it's been a great resource up there.
Paul Mann: It's a pretty With MOLI 99 and MOLI 100 in Richmond, are there any potential partnerships with U.S. organizations in enrichment development there?
Paul Mann: Hello! We are having discussions with a few potential partners there. That's the biggest commercial opportunity I think we have in medical isotopes.
Paul Mann: It will take a while to get into, but there are certain customers that want to take the Lipnum 100 or Lipnum 98 and convert it into Lipnum 99 or Lipnum 99.
Paul Mann: Okay, I'm not going to ask this as a question because I think it's more of a comment that's come through, but I think a lot of people are quite keen now from the CSFO perspective that we get financial results in a more timely manner. How would you respond to that? Yeah, so I think last year before we had to join the CFO, we missed two of the deadlines by about three or four days. At least at this time, we filed on time, which is March 21st. Heather has done a great job of putting in place a lot of the controls and the procedures and processes that we need in order to be subscored for being compliant and subscored for being compliant.
Paul Mann: And you know, with that comes more automated, better invoicing. And you have to remember down here in South Africa, a lot of invoicing is still going on the paper. And so it just takes time for auditors and accountants to get a piece of paper together. And I think it's nice to say this.
Nick Lawson: Okay, thank you.
Paul Mann: Are you seeing any new emerging competitors with the market opportunity ex-Russia? No, we're not, no. As I said, a couple of small universities are now starting to be fully featured in 176. I'm talking just a few grants. But we're looking at certain things like Silicon 28. carbon-14, there's not really any competitors there. Silicon 28 is an interesting one. So, in theory, Elgato, UNESCO, and Bosatom can all do with Silicon 28. But when we talk to the seven countries, they can't use the Silicon 28 they produce so easily. It's expensive to them to touch the floor with.
Paul Mann: And they can't get it to 6N purity. They can't. What they really care about is di-silane, chloro-silane, ethyl-silane, and rib-silane. And so, they're struggling to use it. And I think that's...
Paul Mann: So, while I'm told they can produce it, there hasn't been much of an impact or demand for it in certain countries.
Paul Mann: Do you want to talk about how many new contracts you expect to sign in Silicon 28 in the coming year? Silicon 28, Onyx 6, uh... We're talking for customers right now, and we expect to sign a contract with them at some point.
Nick Lawson: Questions back again about the short interest in the stock. I mean, we're now at 30%, which is sort of strong bearish sentiment.
Nick Lawson: Sorry, Paul, do you mind just moving the microphone even a bit closer to you, please? Yeah, the microphone's up on the wall over there by the television.
Paul Mann: Could you, Mr. Man, could you pull the microphone off the wall, please? Sorry, so to everyone saying you can't hear it clear, this is as clear as we're going to get it. I'm sorry about that. So just on the short interest in the stock there, that 30%. You know, I mean, I we've done a lot of work on this. And we obviously know that a lot of it is quad driven. It's based on an algo that looks for sort of growth stocks, pre-revenue exhibiting certain characteristics. But nonetheless, the stock is still down 50% since the fuzzy panda report.
Paul Mann: Is there any message? I said I'd try to question this, but you would like to give to short sellers and naysayers. Listen, a lot of art requires ourselves to work and I've spent most of my career trading in trading stocks. You know, it's a tendency to make a market. What I would say is the short-term shift in most of the new business options is pretty high. If you look at op-go, anemone, neocentrists, it's all pretty high. There's a lot of non-believers in new business. No, they are, and that's right. And I think a lot of it, as I say, is a function of the way in which the outgoes are set.
Paul Mann: And if you look at the distribution amongst the shorts, you know, there is a very large number of them.
Nick Lawson: So a couple more questions.
Nick Lawson: I know we're getting towards the end of the time. A lot, just so you know, I'm not going to answer all of them. A lot is around analyst coverage, when you're going to bolster institutional interest.
Paul Mann: But here we have one here asking about when we'll get independent commercial third-party confirmation that enriched silicon is 150% more efficient than unenriched silicon. So the answer to that is, I don't know, because it's unlikely that Intel or TSMC or any so-called publisher will publish the results they get in their research facilities. But there are some scientific papers, some scientific papers out there, you know, it's taken no troubles, and so, I mean, extensive work has been done already.
Paul Mann: But I'd be surprised if our customers, who aren't academics, publish their work.
Nick Lawson: Okay, so I think we're getting relatively close to the end. Any more questions, it's last chance to type them up.
Paul Mann: One last question about capacity utilisation at PET labs for radiation isotopes. Can it be increased at low cost? So the answer to that, when we are increasing this, PetLab is running flat out, and by now it's running flat out, and we retired last year. We're doing four production runs a night currently, which is huge.
Paul Mann: So we've added a bit of a cyclotron into PetLab's here, to around 100, we're actually in PetLab's building today, we're at PetLab's offices today. That's waiting for the final delivery in Southwark, which should come in the next few weeks or so. And that can start producing more commercial products and really ease the supply shortage. I'll expect PetLab has received its commercial assets last week, so we should see good growth in PetLab to see those new assets coming on soon.
Nick Lawson: Okay, lots of questions again about spin-out of QLE, we've talked about that already, that will be in the notes afterwards.
Paul Mann: What is your view of post-enrichment after nuclear radiation of isotopes? What's your view of post-enrichment, i.e. after nuclear radiation of isotopes?
Paul Mann: I don't really have a view on that. We make the same isotopes, we start with the customers, and then we go through and then radiate them, and I guess we radiate them per house.
Paul Mann: Someone here who's obviously been following you, you said the balance sheet used to keep you up at night, now you're producing isotopes, what keeps you awake now? When you're competing against governments, that's always a concern. I think one of our main competitive advantages is our capital cost to build appliances is so low and you know if one of these companies you want to build large set fees to get a lot of free money from the government then you don't have to take on a lot of competitive advantage so hopefully government's having more of a strength about giving away a lot of free money to our competitors.
Nick Lawson: It feels like there's more doubles in the league now than there was two years ago. Great.
Nick Lawson: OK, so just one thing, as I say, there's lots of people asking about analyst coverage. One thing I will say is there is a hosting channel called Curation Connect where there is an excellent ASPI page, which gives all the relevant information in both short form and long form video, links to all the reporting accounts, to the videos that Paul has done, to expert views and work. It's Curation Connect.
Nick Lawson: And you're going to show cases and you go to ASP Isotopes. And that's a very good repository for those that are looking for more.
Nick Lawson: So analyst coverage. So we. Yeah, I will drop a link of the analyst coverage to someone asking for that link. We'll send that afterwards.
Nick Lawson: It's Curation Connect, all one words dot com.
Nick Lawson: So Hendrik and Paul, that was excellent. The news coming out is excellent. The critics are being answered. We've got our results out on time as well. Everything's progressing in the right way.
Nick Lawson: I'd like to thank you for your time and I think we'll probably look to try and do this in a couple of months time again.
Nick Lawson: But thank you all for attending. Thank you for your questions and thank you to the audience for listening. Thank you.