Q1 2025 Stardust Power Inc Earnings Call

Speaker presentation, there will be a question and answer session to ask a question. During the session you will need to press star one on your telephone you will then hear an automated message advising your hand is raised to withdraw your question Press Star. One again. Please be advised that today's conference is being recorded I would now like to hand, the conference over to your speaker Mr.

Speaker Change: Joanna Gonzales director of Investor Relations and Communications. Please go ahead.

Joanna Gonzales: Thank you operator, good afternoon, everyone before management begins their formal remarks, we would like to remind everyone that some statements. We're making today may be considered forward looking statements under securities laws and involve a number of risks and uncertainties.

Operator: Good day and welcome to the Stardust Power Q1 2025 Earnings Call. At this time, all participants are on a listen-only.

As a result, we caution you that there are a number of factors many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward looking statements.

Operator: After the speaker presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press star-one-one on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, press star-one-one again.

Joanna Gonzales: For more detailed risks uncertainties and assumptions relating to our forward looking statements. Please see the disclosures in our earnings release and public filings made with the SEC, we disclaim any obligation or undertaking to update forward looking statements to reflect circumstances or events that occur. After the date. The forward looking statements are made.

Operator: Please be advised that today's conference is being recorded.

Joanna Gonzalez: I would now like to hand the conference over to your speaker, Ms. Joanna Gonzalez, Director of Investor Relations and Communications. Please go ahead. Thank you, operator.

Joanna Gonzalez: Good afternoon, everyone. Before management begins their formal remarks, we would like to remind everyone that some statements we're making today may be considered forward looking statements and the securities laws and involve a number of risks and uncertainty. As a result, we caution you that there are a number of factors, many of which are beyond our control, which could cause actual results and events to differ materially from those described in the forward-looking statement. For more detailed risks, uncertainties, and assumptions relating to our forward-looking statements, please see the disclosures in our earnings release and public filings made with the SEC.

Joanna Gonzales: Sept as required by law.

We refer you to our filings with the SEC, the detailed disclosures and descriptions of our business as well as uncertainties and other variables circumstances, including but not limited to risks and uncertainties identified under the caption risk factors in our recent filings you may get startup powers SEC.

Joanna Gonzales: Filings by visiting the SEC website at Www Dot SEC Doc Gov.

Joanna Gonzales: I would like to remind everyone. Today. This call is being recorded and will be made available for replay via a link available in the Investor Relations section of startup Power's website.

Joanna Gonzalez: We disclaim any obligation or undertaking to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made, except as required by law. We refer you to our filings with the SEC for detailed disclosures and descriptions of our business, as well as uncertainties and other variable circumstances, including but not limited to risks and uncertainties identified under the caption, Risk Factors, in our recent filings. You may get Stardust Power's SEC filings by visiting the SEC website at www.sec.gov.

Roshan: Now I will turn the call over to <unk> CEO Roshan could Gerry Roshan.

Joanna Gonzales: Thank you Joanna and thank you all for joining US today welcome to the start of our Q1 2025 earnings call.

Roshan: As referenced on our year end earnings call in March the macro outlook for lithium remains highly compelling and continues to strengthen according to industry analyst Global demand has had some more than double by 2030 fueled by structural growth across multiple verticals, such as electric vehicles energy storage systems.

Joanna Gonzalez: I would like to remind everyone today this call is being recorded and will be made available for replay via a link available in the Investor Relations section of Stardust Power's website.

Roshan: AI and broader electrification trends this growing demand supply imbalance is creating significant pricing support and a long term tailwind for lithium refiners with scalable reliable production capacity, especially in geopolitically stable jurisdictions like the United States.

Roshan Poojari: Now I will turn the call over to Stardust Power's CEO, Roshan Poojari. Roshan? Thank you, Joanna, and thank you all for joining us.

Roshan Poojari: Welcome to the Stardust Power Q1 2025 Earnings. As referenced on our year-end earnings call in March, the macro outlook for lithium remains highly compelling and continues to strengthen according to industry analysts. Global demand is set to more than double by 2030, fueled by structural growth across multiple verticals, such as electric vehicles, energy storage systems, AI, and broader electrification trends. This growing demand supply imbalance is creating significant pricing support and a long-term tailwind for lithium refiners with scalable, reliable production capacity, especially in geopolitically stable jurisdictions like the United States. We remain focused on the medium to long term, while as a company, we are moving forward in the short term.

Roshan: We remain focused on the medium to long term, while as a company we are moving forward in the short term.

Roshan: Let's start with power, we view these market conditions as a generational opportunity.

We are advancing one of the largest lithium refineries in America strategically positioned to address the critical shortage of domestic refining capacity. Our project is designed to be both scalable and sustainable aligned with federal priorities around clean energy and U S supply chain security and energy in.

Roshan: Independence, we believe this positions startup power not only as a key enabler of the energy transition, but also has a high impact value creator in a market where refined lithium supply is becoming increasingly valuable as we approach. The construction stage. We are focused on delivering long term returns for our shareholders.

Roshan Poojari: At Stardust Power, we view these market conditions as a generational opportunity. We are advancing one of the largest lithium refineries in America, strategically positioned to address the critical shortage of domestic refining. Our project is designed to be both scalable and sustainable, aligned with federal priorities around clean energy and U.S. supply chain security and energy independence. We believe this position, Stardust Power, not only as a key enabler of the energy transition, but also as a high impact value creator in a market where refined lithium supply is becoming increasingly valuable. As we approach the construction stage, we are focused on delivering long term returns for our share.

Roshan: Yes.

Roshan: The evolving landscape of U S trade market by recent tariffs and China's retaliatory export restrictions has introduced significant volatility into the market touching all sectors. These developments have heightened concerns about supply chain disruptions and increased costs for downstream industries.

Speaker Change: Potentially dampening enthusiasm for projects reliant on imported materials. However, this shifting environment also underscores the strategic advantage and need for domestic integrated operations startup powers model and competency in Brian's based sourcing refining and distribution.

Speaker Change: <unk> of battery grade lithium carbonate positions the company to mitigate risks associated with international trade tensions.

Roshan Poojari: The evolving landscape of the U.S. trade market by recent tariffs and China's retaliatory export restrictions has introduced significant volatility into the market, touching all sectors. These developments have heightened concerns about supply chain disruptions and increased costs for downstream industries, potentially dampening enthusiasm for projects reliant on imported materials. However, this shifting environment also underscores the strategic advantage and need for domestic integrated operations. Stardust Power's model, encompassing brines-based sourcing, refining, and distribution of battery-grade lithium carbonate, positions the company to mitigate risks associated with international trade. By aligning with national initiatives to bolster domestic critical mineral supply chain security, Stardust Power not only seeks to insulate itself from current market volatilities, but also appeals to investors seeking resilient and forward looking opportunities in the energy sector.

Speaker Change: By aligning with national initiatives to bolster domestic critical minerals supply chain security startups power not only seeks to insulate itself from current market Volatilities will also appeals to investors seeking resilient and forward looking opportunities in the energy sector. The world is paying attention to critical minerals and start.

Speaker Change: <unk> power is invaluable to building resilient American supply chains.

Speaker Change: The broader stock market has experienced notable volatility in recent months driven by a mix of macroeconomic factors trade policy and geopolitical uncertainties, while market fluctuations can impact sentiment and cause short term price swings, it's an opportunity for investors to focus on the fundamentals.

Speaker Change: Companies like ours, with a clear path to production and integrated business model and strategic alignment with national initiatives for critical minerals are well positioned for long term success in times of market uncertainty disciplined investors should consider focusing on sound business models and growth potential.

Roshan Poojari: The world is paying attention to critical minerals and Stardust Power is invaluable to building resilient American supply chain.

Speaker Change: Rather than letting short term sentiment drive decisions.

Roshan Poojari: The broader stock market has experienced notable volatility in recent months, driven by a mix of macroeconomic factors, trade policy, and geopolitical uncertainty. While market fluctuations can impact sentiment and cause short-term price swings, it's an opportunity for investors to focus on the fundamentals. Companies like ours with a clear path to production, an integrated business model, and strategic alignment with national initiatives for critical minerals are well positioned for long-term success. In times of market uncertainty, disciplined investors should consider focusing on sound business models and growth potential, rather than letting short-term sentiment drive decision-making. So far this year, a series of executive orders passed by the President have significantly advanced the U.S.

Speaker Change: So far this year a series of executive orders passed by the President has significantly advanced the U S strategy to strengthen domestic critical mineral production potentially benefiting companies like startups power.

Speaker Change: These measures include streamlining regulatory processes prioritizing U S based sourcing and federal contracts and initiating investigations that could limit reliance on foreign processed minerals for startups power, who is developing an integrated lithium refinery in Oklahoma. These policies renew.

Speaker Change: <unk> barriers increased potential for federal support and reinforce the company's alignment with national security goals.

Speaker Change: As the U S sharpens its focus on energy independence, and resilient supply chains startup power stands well positioned to contribute and to offer investors a compelling future ready opportunity in the critical minerals space.

Roshan Poojari: strategy to strengthen domestic critical mineral production, potentially benefiting companies like Stardust Power. These measures include streamlining regulatory process. prioritizing U.S.-based sourcing in federal contracts, and initiating investigations that could limit reliance on foreign-processed minerals. For Stardust Power, who is developing an integrated lithium refinery in Oklahoma, these policies reduce barriers, increase potential for federal support, and reinforce the company's alignment with national security goals. As the U.S. sharpens its focus on energy independence and resilient supply chains, Stardust Power stands well positioned to contribute and to offer investors a compelling future ready opportunity in the critical mineral space. Stardust Power is committed to ongoing dialogue with policymakers to support the This includes substantiating available programs under the Department of Energy, Department of Defense, and other federal entities aligned with domestic resource development.

Speaker Change: Startup power is committed to ongoing dialogue with policymakers to support the industry. This includes substantiates available programs under the Department of Energy Department of Defense and other federal entities aligned with domestic resource development the.

Speaker Change: The company is also engaging with state level authorities and public private initiatives to maximize support for its refinery project. These efforts are part of a broader strategy to align with national priorities and secured the vacuum needed to accelerate project timelines and reduce financial risks.

Speaker Change: Turning to sourcing supply or feedstock, we're seeing a ramp up in lithium development across key resource basins, driven by accelerating market demand and strong federal backing to the inflation reduction Act and do initiatives projects in Canada in the smack over region are poised to become glue.

Speaker Change: Mobile is significant lithium hubs successful unit as Asian efforts in Arkansas, Mark a major legislative milestone for the region clearing the way for more coordinated development at the same time <unk> methods are gaining traction, particularly in oil and gas produced water projects presenting new opportunities for <unk>.

Roshan Poojari: The company is also engaging with state-level authorities and public-private initiatives to maximize support for its refinery projects. These efforts are part of a broader strategy to align with national priorities and secure the backing needed to accelerate project timelines and reduce financial risk. Turning to sourcing, supply, or feedstock, we're seeing a ramp up in lithium development across key resource basins, driven by accelerating market demand and strong federal backing through the Inflation Reduction Act and DOE initiatives. Projects in Canada and the Smackover region are poised to become globally significant lithium hubs. Successful unitization efforts in Arkansas mark a major legislative milestone for the region, clearing the way for more coordinated development.

Speaker Change: <unk> and strategic collaborations.

Speaker Change: Altogether. These developments signal a maturing U S lithium market, one in which startup power is well positioned to play a central enabling role.

Speaker Change: Across the Western U S. Many Brian exploration efforts are underway and an increasing number of oil and gas producers are piloting <unk> technology to recover lithium from produced water Street. These.

Speaker Change: Patients are accelerating the pace of upstream lithium development and broadening the pool of potential suppliers. In addition startup power is owned controlled assets 35000 acres currently under exclusive option present, a promising medium term supply opportunity we are actively evaluating as.

Roshan Poojari: At the same time, DLE methods are gaining traction, particularly in oil and gas-produced water projects, presenting new opportunities for off-take and strategic collaboration. Altogether, these developments signal a maturing U.S. lithium market, one in which Stardust Power is well positioned to play a central enabling role. Across the Western U.S., many brine exploration efforts are underway and an increasing number of oil and gas producers are piloting DLE technology to recover lithium from produced water sheds. These innovations are accelerating the pace of upstream lithium development and broadening the pool of potential suppliers. In addition, Stardust Power's own controlled assets, 35,000 acres currently under exclusive option, present a promising medium-term supply opportunity we are actively evaluating.

Speaker Change: As a future U S. Based manufacturer we are proud to support this expanding ecosystem and play a role in building a resilient domestic lithium supply chains are lined with national securities and sustainability goals and doing so startup power will also serve as a key aggregator of lithium supply connect.

Speaker Change: <unk> upstream producers with downstream battery manufacturers to ensure a stable efficient flow of domestically source lithium across the entire value chain.

Speaker Change: Turning to an update on project financing the.

The company continues to work with our lead advisor <unk>, who has made substantive progress on the project financing fronts beef.

Speaker Change: Financing efforts will accelerate with the upcoming release of the definitive feasibility study to support the determination of the.

Roshan Poojari: As a future U.S.-based manufacturer, we are proud to support this expanding ecosystem and play a role in building resilient, domestic lithium supply chains aligned with national security and sustainability goals. In doing so, Stardust Power will also serve as a key aggregator of lithium supply, connecting upstream producers with downstream battery manufacturers to ensure a stable, efficient flow of domestically sourced lithium across the entire value chain.

Before year end, we have engaged a leading independent expert to validate our studies for the benefit of institutional investors. We are working with a best in class insurance advisor and risk management consultant to optimize our insurance strategy, while minimizing both cost and risk for the Muskogee project, specifically and.

Speaker Change: Startups power overall.

Speaker Change: Now for some operational updates regarding our permitting and project development progress.

Roshan Poojari: Turning to an update on project finance. The company continues to work with our lead advisor, MUFG, who has made substantive progress on the project finance. The financing efforts will accelerate with the upcoming release of the definitive feasibility study to support the determination of the FID before year. We have engaged a leading independent expert to validate our studies for the benefit of institutional investment. We are working with a best-in-class insurance advisor and risk management consultant to optimize our insurance strategy while minimizing both cost and risk for the Muskogee project specifically and for Stardust Power overall.

Speaker Change: Our team has been hard at work on permitting and we continue to make steady progress on this front to date, we have secured our general storm water permit for construction activities. Once operational the facility will be subject to storm water discharge permitting we anticipate storm water permitting to be achieved through the use of Oklahoma General permit.

Speaker Change: Our minor source air permit has been deemed administratively compete by the Oklahoma Department of environmental quality and the agency has begun its technical review our team is actively engaged in responding to information requests as part of that process.

Speaker Change: On the wastewater permitting front, we had a productive meeting with <unk> industrial wastewater permitting leadership in March based on our planned operations specifically the fact that we have a closed loop system and will not be discharging wastewater to either a public treatment facility or to Oklahoma water.

Roshan Poojari: Now for some operational updates regarding our permitting and project development. Our team has been hard at work on permitting and we continue to make steady progress on this. To date, we have secured our general stormwater permit for construction. Once operational, the facility will be subject to stormwater discharge permitting. We anticipate stormwater permitting to be achieved through the use of Oklahoma's General Drainage System. For more information visit www.fema.gov Our minor source air permit has been deemed administratively complete by the Oklahoma Department of Environmental Quality, and the agency has begun its technical review. Our team is actively engaged in responding to information requests as part of that.

Speaker Change: Ways. Our team has confirmed that no industrial wastewater permit is required this represents a meaningful advantages to the execution of our business plan, including faster project timelines for new facilities or expansion reduced regulatory monitoring and reporting resources and caused an increase.

Speaker Change: <unk> operational flexibility since modifications are variations in production processes, our schedules won't require complex and expensive water permit modifications.

Roshan Poojari: On the wastewater permitting front, we had a productive meeting with OGEQ's industrial wastewater permitting leadership in March. Based on our planned operations, specifically the fact that we have a closed loop system and will not be discharging wastewater to either a public treatment facility or to Oklahoma waterways, our team has confirmed that no industrial wastewater permit is required. This represents meaningful advantages to the execution of our business plan, including faster project timelines for new facilities or expansion, reduced regulatory monitoring and reporting resources and costs, and increased operational flexibility since modifications or variations in production processes or schedules won't require complex and expensive water permit modifications.

Speaker Change: In parallel we have completed our front end loading three or fell three engineering study primary USA is in the final review stages of the report and once finalized it will serve as a comprehensive technical foundation as we move into the next stage of project development. This is a key milestone.

Speaker Change: One that strengthens our position as we continue advancing toward final investment decision.

Speaker Change: Recently, we executed a key service agreement with Oklahoma gas <unk> electric to develop a dedicated electric substation at the site of our planned lithium refinery in Muskogee signaling a critical operational step forward. This agreement underscores the strong partnership we're building with <unk>.

Roshan Poojari: In parallel, we have completed our Front End Loading 3, or FEL3, engineering study. Primary USA is in the final review stages of the report, and once finalized, it will serve as a comprehensive technical foundation as we move into the next stage of project development. This is a key milestone that strengthens our position as we continue advancing toward final investment.

Speaker Change: It ensures long term scalable power up to 40 megawatts for our facility in future expansion.

Speaker Change: The collaboration aligns with our commitment to sustainability and domestic lithium production and supports the next phase of development as we move forward.

Speaker Change: Getting a head start on this work allows us to begin critical pre construction activities for the electrical substation, ensuring it will be already well underway by the time for construction begins.

Roshan Poojari: Recently, we executed a key service agreement with Oklahoma Gas and Electric to develop a dedicated electric substation at the site of our planned lithium refinery in Muskogee, signaling a critical operational step forward. This agreement underscores the strong partnership we're building with OG&E and ensures long-term scalable power up to 40 megawatts for our facility in future expansion.

Speaker Change: This kind of proactive planning and execution by our team reflects thoughtful strategic approach, we are taking to streamline the buildup and accelerate progress once a final investment decision is made.

Speaker Change: Onto some community focus updates and our recent new hire.

Speaker Change: Start ups power is a proud committed community partner over the past few months, we've continued to show up in support key events like the Oklahoma business Roundtable Muskogee day at the capital and the 101st annual Chamber Banquet. We've also had the honor of engaging with local civic groups.

Roshan Poojari: The collaboration aligns with our commitment to sustainability and domestic lithium production and supports the next phase of development as we move forward. Getting a head start on this work allows us to begin critical pre-construction activities for the electrical substation, ensuring it will be already well underway by the time full construction begins. This kind of proactive planning and execution by our team reflects thoughtful, strategic approach we are taking to streamline the build up and accelerate progress once a final investment decision is made.

Speaker Change: <unk> the Muskogee Exchange club.

Speaker Change: <unk> Patriots club and leadership Muskogee class 31 to deepen our ties a share our vision our leadership team recently met with members of Oklahoma's congressional delegation in Washington, DC to champion American mineral independence and discuss how our proposed lithium refinery can play a vital role.

Roshan Poojari: On to some community focus updates and a recent new hire. Stardust Power is a proud, committed community partner. Over the past few months, we've continued to show up and support key events like the Oklahoma Business Roundtable, Muskogee Day at the Capitol, and the 101st Annual Chamber Bank. We've also had the honor of engaging with local civic groups, including the Muskogee Exchange Club, Muskogee Patriots Club, and Leadership Muskogee Class 31 to deepen our ties and share our vision. Our leadership team recently met with members of Oklahoma's congressional delegation in Washington, D.C. to champion American mineral independence and discuss how our proposed lithium refinery can play a vital role in securing a U.S.

Speaker Change: And security a U S based lithium supply chain.

Speaker Change: As we continue to move forward with our project our commitment to building strong partnerships and contributing to Muskogee as economic future remains at the heart of everything, we do including creating well paying jobs from the state of Oklahoma.

Speaker Change: In April we were proud to have served as the premier sponsor of the northeast, Oklahoma Regional power lifting tournament in Muskogee, Oklahoma. This incredible event brought together 845 student athletes from 116 schools across northeast, Oklahoma Shokku.

Speaker Change: <unk>, the spirit strength and determination of our regions.

Speaker Change: Supporting events like this is about more than visibility and reflects our deep rooted commitment to investing in our local communities and helping them thrive. We believe that doing good for the community isn't just good business. It's the right thing to do by.

Roshan Poojari: based lithium supply. As we continue to move forward with our project, our commitment to building strong partnerships and contributing to Muskogee's economic future remains at the heart of everything we do, including creating well-paying jobs for the state of Oklahoma.

Speaker Change: By partnering with initiatives that bring people together and empower the next generation, we're proud to play a role in building a stronger more connected Muskogee and northeast Oklahoma.

Roshan Poojari: In April, we were proud to have served as the premier sponsor of the Northeast Oklahoma Regional Powerlifting Tournament in Muskogee, Oklahoma. This incredible event brought together 845 student-athletes from 116 schools across Northeast Oklahoma, showcasing the spirit, strength, and determination of our region's youth. Supporting events like this is about more than visibility. It reflects our deep-rooted commitment to investing in our local communities and helping them thrive. We believe that doing good for the community isn't just good business. It's the right thing to do. By partnering with initiatives that bring people together and empower the next generation, we're proud to play a role in building a stronger, more connected Muskogee and Northeast Oklahoma.

Speaker Change: In April we were pleased to announce the appointment of Carlos would've where as senior advisor to start us power.

Speaker Change: Carlos brings over three decades of experience in metals and mining finance, having led more than 40 billion in transactions during his tenure at leading institutions, including BNP Paribas.

Speaker Change: City and Appian capital.

Speaker Change: He will be advising our project financing efforts for the Muskogee facility from both a debt and equity perspective, and working with our lead financial advisor <unk>.

Speaker Change: His deep expertise in structuring complex deals, particularly within the EV battery metal supply chain will be instrumental as we pursue final investment decision and advance our growth plans.

Roshan Poojari: In April, we were pleased to announce the appointment of Carlos Uruguay as Senior Advisor to Stardust Power. Carlos brings over three decades of experience in metals and mining finance, having led more than 40 billion in transactions during his tenure at leading institutions including BNP Paribas, Citi, and Appian Capital. He will be advising our project financing efforts for the Muskogee facility from both a debt and equity perspective, and working with our lead financial advisor, MUF.

Speaker Change: And with that I'll now turn Youtube, thus far our chief financial officer for his remarks on financials.

Speaker Change: Thank you Robin and good afternoon, everyone and thank you for joining our earnings call for the Q1 2025 earnings period before we begin I want to clarify that we will not be providing forward looking guidance or estimates during this call our focus will be on discussing our past performance.

Speaker Change: And the current state of our business, we encourage you to refer to our filings with the SEC for more detailed information.

Roshan Poojari: His deep expertise in structuring complex deals, particularly within the EV battery metal supply chain, will be instrumental as we pursue final investment decision and advance our growth.

Speaker Change: First a quick update on some developments from the quarter and subsequent events just after the quarter end.

Speaker Change: In December 'twenty 'twenty, four we entered into short term loan agreements amounted to $3 $55 million with certain investors that a 15% annual interest and maturing in March straightaway funds as.

Uday Devaskar: And with that, I now turn you to Uday Devaskar, our Chief Financial Officer, for his remarks on financials. Thank you, Roshan, and good afternoon, everyone, and thank you for joining our earnings call for the Q1 2025 earnings period. Before we begin, I want to clarify that we will not be providing forward looking guidance or estimates during this. Our focus will be on discussing our past performance and the current state of our business. We encourage you to refer to our filings with the SEC for more detailed information.

Speaker Change: As of March 31, 225, I E Q1, 25, we have fully repaid the loan principal and accrued interest, thereby reflecting a debt free balance sheet as of Q1 'twenty five.

Speaker Change: And subsequent to the quarter end.

Speaker Change: Soon the related equity and warrants in accordance with the agreed dose.

Speaker Change: Now turning to the financials for Q1 <unk> the.

Speaker Change: The company is pre revenue currently.

Previously reported in our filings our ability to meet working capital and capital expenditure requirements for the next 12 months is dependent upon our plan to raise additional capital from issuance of equity or receive additional borrowings to fund the company's operating and investing activities over the next year.

Uday Devaskar: First, a quick update on some developments from the quarter and subsequent events just after the quarter. In December 2024, we entered into short-term loan agreements amounting to $3.55 million with certain investors bearing 15% annual interest and maturing in March 2024. As of March 31, 2025, i.e. Q125, we have fully repaid the loan principal and accrued interest, thereby reflecting a debt-free balance sheet as of Q125. and subsequent to the court friend have issued the related equity and warrants in accordance with the agreed.

Speaker Change: As a few 125, we had cash and cash equivalents of $1 $6 million on hand compared to $9 million.

Speaker Change: At December 31, 24.

Speaker Change: E FY 'twenty four.

Speaker Change: As mentioned above as of the current quarter and we have no long term debt.

Speaker Change: We have devoted substantial efforts and financial resources to raising capital and organizing and stuff in the company and as a result have incurred significant operating losses as of Q1, 'twenty five and FY 'twenty four we had an accumulated deficit of $56 4 million and $52 6 million respectively.

Uday Devaskar: Now turning to the financials for Q1 2021. The company is pre-revenue current. As previously reported in our filings, our ability to meet working capital and capital expenditure requirements for the next 12 months is dependent upon our plan to raise additional capital from issuance of equity or receive additional borrowings to fund the company's operating and investing activities over the next 12 months. As of Q125, we had cash and cash equivalents of $1.6 million on hand compared to $0.9 million as of December 31, 2021. i.e. F4. As mentioned above, as of the current quarter end, we have no long-term debt.

Speaker Change: The company incurred a net loss of $3 8 million in Q1, 25, which was higher by $2 4 million year over year.

Speaker Change: Since the company has yet to start commercial production of battery grade lithium the operating expenses are expected to increase as the company starts to recruit more personnel to perform general operational tasks asset of the facility.

Speaker Change: Loss per share was a negative <unk> <unk> for Q1, 'twenty compared to negative four cents in the prior year, the increase being driven primarily by higher general and administrative costs due to personnel related costs and finance charges for short term goals.

Uday Devaskar: We have devoted substantial efforts and financial resources to raising capital and organizing and staffing the company, and as a result, having a significant operating As of Q125 and FY24, we had an accumulated deficit of $56.4 million and $52.6 million. The company incurred a net loss of $3.8 million in Q125, which was higher by 2.4 million year-over-year. Since the company is yet to start commercial production of battery-grade lithium, the operating expenses are expected to increase as the company starts to recruit more personnel to perform general operational tasks and set up the Loss per share was a negative $0.07 for Q125 compared to negative $0.04 in the prior year.

Speaker Change: Net cash used in operating activities totaled $2 9 million for the quarter compared to $5 9 million in the prior year. The increase driven by continued investment in operations hiring of key talent and certain expenses related to the close of the business combination.

Speaker Change: Net cash used in investing activities was $1 million for the quarter driven by our initial capital investments made in the anticipated building of the refinery.

Speaker Change: Net cash provided by financing activities was $4 5 million for the quarter, driven primarily by $8 million in cash received from public offering and one reduced once net of offering costs.

Uday Devaskar: The increase being driven primarily by higher general and administrative costs due to personnel related costs and finance charges for short-term costs. Net cash used in operating activities totaled $2.9 million for the quarter, compared to $0.9 million in the prior year, the increase driven by continued investment in operations, hiring of key talent, and certain expenses related to the close of Net cash used in investing activities was $1 million for the quarter, driven by initial capital investments made in the anticipated building. Net cash provided by financing activities was $4.5 million for the quarter, driven primarily by $8 million in cash received from public offering and warrant deducements.

Speaker Change: Offset partially by the repayment of $3 $7 million of short term loans. The funds, we used to meet working capital needs and make capital investments as described above.

Speaker Change: We continue to execute with discipline and strong momentum against our business plan.

Speaker Change: <unk> remains on schedule and we're hitting critical milestones that move us closer to a final investment decision.

Tonnage by the continuous support from industry stakeholders, and the alignment of our mission with national priorities.

Speaker Change: Domestic lithium production, we remain focused well positioned and excited about the pump it hit.

Speaker Change: That concludes my remarks, and I'll turn it back corrosion.

Speaker Change: Thanks, ebay with that we are now happy to take your questions operator.

Speaker Change: Thank you as a reminder to ask a question. Please press star one on your telephone and wait for your name to be announced to withdraw your question Press Star One again, one moment, while we compile the Q&A roster.

Uday Devaskar: Net of offering offset partially by the repayment of 3.7 million dollars of short-term loans. The funds were used to meet working capital needs and make capital investments as described. We continue to execute with discipline and strong momentum against our business plan. Our project remains on schedule and we're hitting critical milestones that move us closer to the final investment. We are encouraged by the continued support from industry stakeholders and the alignment of our mission with national priorities around domestic lithium-ion batteries.

Speaker Change: And our first question will come from the line of Nick <unk> with B Riley Securities. Your line is open.

Thank you operator, and good afternoon, everyone. This is Henry hurdle on connect Giles I'll just start off guys.

Speaker Change: Do you have an approximate timeline of when the final report of the engineering study might be released.

Uday Devaskar: We remain focused, well-positioned, and excited about the future.

Speaker Change: Hi, Henry Thanks for joining us today on our earnings call and we're looking to release that this quarter.

Roshan Poojari: That concludes my remarks and I turn it back to Rosh. Thanks, Uday.

Roshan Poojari: With that, we are now happy to take your questions. Thank you.

Speaker Change: Okay. So.

Speaker Change: I guess for.

Operator: As a reminder, to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, press star 11 again. One moment while we compile the Q&A roster.

Speaker Change: Pretty close it will probably be closer to the end of the quarter then given that we're about halfway through.

Speaker Change: Around that scope, we have finalized the majority of the report and are in the final revision stages and so it should be done shortly.

Henry Hurrell: And our first question will come from the line of Nick Giles with B-Rally Securities. Your line is open. Thank you operator and good afternoon everyone.

Speaker Change: Thanks for that.

Speaker Change: And then you guys also mentioned how the federal support of critical minerals has improved under the New administration, but then in your opinion do you think this development outweighs. The recent pressures, we're seeing on green energy initiatives. Thanks.

Roshan Poojari: This is Henry Hurrell on for Nick Giles to start off guys. Do you have an approximate timeline of when the final report of the engineering study might be released? Hi, Henry. Thanks for joining us today on our earnings call, and we're looking to release that this quarter. Okay, so I guess we're pretty close. It'll probably be closer to the end of the quarter then, given that we're about halfway through. You know, around that scope, we have finalized a majority of the report and are in the final revision stages, and so it should be done shortly.

Speaker Change: Yeah, Great question, and really hard to understand given the evolving landscape first I can comment that in our financial model, we do not assume government support and we see it as an added advantage on top for the benefit of stakeholders, so with changes and updates in the national.

Speaker Change: Direction of critical minerals policy, we see a prioritization of American mineral security under the New administration and different avenues previous are different than the previous are opening up such as the.

Roshan Poojari: Okay, thanks for that. And then you guys also mentioned how the federal support of critical minerals has improved under this new administration. But then, in your opinion, do you think this development outweighs the recent pressures we're seeing on green energy initiatives? Thanks. Yeah, great question. And, you know, really hard to understand, given the evolving landscape. You know, first, I can comment that in our financial model, we do not assume government support and we see it as an added advantage on top for the benefit of stakeholders. So with changes and updates in the national direction of critical minerals policy, we see a prioritization of American mineral security under the new administration and different avenues, previous different than the previous are opening up, such as the Council Energy Dominance Council.

Speaker Change: Council energy dominance council, so we see further opportunities.

Given the impact of trade markets and the volatility and trade policy, we see that largely as a potential benefit to start as our as once again re prioritizes domestic critical minnery supply chains, and the decoupling from China, I'm, creating more impetus to manufacture.

Speaker Change: These materials here in the U S. So we see both as tailwind for our project.

Speaker Change: Got it thanks for the commentary and continued best of luck.

Speaker Change: Thank you Henry.

Speaker Change: Thank you one moment our next question.

Speaker Change: And that will come from the line of Jake Zukowski with Alliance Global Partners. Your line is open.

Henry Hurrell: So we see further opportunities given the impact of trade markets and the volatility in trade policy. We see that largely as a potential benefit to Stardust Power as it once again, reprioritizes domestic critical mineral supply chains and the decoupling from China and creating more impetus to manufacture these materials here in the US. So we see both as tailwinds for our. Got it. Thanks for the commentary and continue. Best of luck. Thank you, Henry. Thank you. One moment for our next question.

Speaker Change: Hey, Ross.

Jake Zukowski: Thanks for taking my questions.

Jake Zukowski: Thanks for joining us today Jake.

Speaker Change: Okay. Thank you for joining us.

Speaker Change: You touched on kind of domestic feedstock starting to come online over the next little while here I'm just curious how far along are you in discussions with respect to securing feedstock and potentially keeping some of this material inside the domestic supply chain.

Speaker Change: Fine.

Speaker Change: Yes, so happy to report that we are.

Speaker Change: Well progressed on multiple supply opportunities.

Speaker Change: Given that up to 80% of lithium feedstocks are sent to China for processing up to 85%, we've seen a very receptive market to refine and manufacturer of battery grade lithium products domestically in the United States. So we are having multiple conversations and very.

Jake Sikalsky: And that will come from the line of Jake Sikalsky with Alliance Global Partners. Your line is open. Hey, Roshan and Uday. Thanks for taking my question. Thanks for joining us today, Jake. Hi Jake, thank you for joining us. touched on some domestic feedstock starting to come online over the next little while here.

Speaker Change: <unk>.

Progressed and look forward to sharing some updates on that as they come available.

Roshan Poojari: I'm just curious, how far along are you in discussions with respect to securing feedstock and, you know, potentially keeping some of this material inside the domestic supply chain through refining? Yeah, so happy to report that we are very well-progressed on multiple supply opportunities, given that up to 80% of lithium feedstocks are sent to China for processing up to 85%. We've seen a very receptive market to refine and manufacture battery-grade lithium products domestically in the United States, so we are having multiple conversations and very progressed and look forward to sharing some updates on that as they become available.

Speaker Change: Okay. That's helpful.

Speaker Change: And then just can you touch on any outstanding permits that you guys might need prior.

Speaker Change: To the end.

Speaker Change: A construction decision.

Speaker Change: Sure we've been making substantial progress on the permitting front. So as mentioned we have our storm water and general permit which allows us for at the start of major construction.

Speaker Change: We are we are permitted to move forward into construction phase as recently announced we have gotten confirmation that we do not need an industrial water permit given our closed end system and how sustainable we are especially in terms of water usage. So that is a not a required.

Roshan Poojari: Okay, that's helpful. And then just can you touch on any outstanding permits that you guys might need prior to the FID and construction decision? Sure, you know, we've been making substantial progress on the permitting front. So, as mentioned, we have our stormwater and general permit, which allows us for the start of major construction. And so we are, we are permitted to move forward in the construction phase as recently announced. We have gotten confirmation that we do not need an industrial water permit given our closed end system and how sustainable we are, especially in terms of water usage.

Speaker Change: Permit and also as mentioned we have applied for a minor air permit them given that most of our production lines are designed as fully electric except for a couple of natural gas boilers, I'm very limited emissions and it's indeed.

Speaker Change: Indicative that we only need a minor permit we have made our application for that permit and been administratively approved the <unk> is working on writing the permit and we hope to have a full permitted.

Speaker Change: The coming months and those will be the major permits required for construction and operation of the facility.

Roshan Poojari: So that is a not a required permit. And also, as mentioned, we have applied for a minor air permit given that most of our production lines are designed as fully electric, except for a couple of natural gas boilers, very limited emissions and we it's indicative that we only need a minor permit. We have made our application for that permit and been administratively approved. The ODEQ is working on writing the permit and we hope to have a full permit in the coming months and those will be the major permits required for construction and operation of the facility.

Speaker Change: Okay. That's helpful. That's all for me Thanks again.

Speaker Change: Thanks, Jake Thank you one moment our next question.

Speaker Change: And that will come from the line of Greg <unk> with Kings with capital Partners. Your line is open.

Speaker Change: Yes. Thank you.

Speaker Change: Question on your cash flow.

Speaker Change: You mentioned.

Speaker Change: That operating cash flow was $2 9 million.

Speaker Change: For the quarter versus 900000, a year ago.

Speaker Change: Does that increase primarily headcount related.

Speaker Change: Or is it.

Speaker Change: Some other operational items.

Speaker Change: Hi, Greg Thanks for joining happy to give you some information they would like to add in.

Jake Sikalsky: Okay, that's helpful. That's all for me. Thanks again. Thanks, Jay. Thank you.

Speaker Change: It also represents significant project development costs as we've been moving the project forward on schedule and engineering and other related project project development costs are included in that.

Operator: One moment for our next question.

Greg Messnier: And that will come from the line of Greg Messnier with Kingswood Capital Partners. Your line is open. Yes, thank you. Question on your cash flow. You mentioned that operating cash flow was $2.9 million for the quarter versus $900,000 a year ago. Is that increase primarily headcount-related, or is it...

Speaker Change: If you have anything to add.

Speaker Change: Yes, that's right and also Greg to your point, yes, a lot of it when you look year over year is primarily operational cost increases.

Speaker Change: No.

Speaker Change: But going public as well as.

Speaker Change: Additional hires that we've had over the past year.

Speaker Change: Contributed significantly as well.

Speaker Change: Got you okay. Thank you.

Uday Devaskar: some other operational, you know, Hi, Greg, thanks for joining. Happy to give you some information that I'd like to add in and it also represents significant project development costs as we've been moving the project forward on schedule and engineering and other related project project development costs are included in that day. If you have anything to add. Yeah, no, Roshan, that's right. And also, Greg, to your point, yes, a lot of it when you look year over year is primarily operational cost increases, you know, with going public as well as additional hires that we've had over the past year have contributed that significantly as well.

Craig: Thanks, Craig. Thank you as a reminder, if you would like to ask a question. Please press star 111 moment for our next question.

Speaker Change: And that will come from the line of Tate Sullivan with Maxim Group. Your line is open.

Speaker Change: Thank you Shawn can you review your comments have you seen Morris Moore.

Speaker Change: Hello equipment pilot facilities.

Stalled at locations of oil run off production runoff water is that what you mentioned earlier.

Speaker Change: Hi, Thanks for the question, yes, we've seen ramp up and upstream activity.

Speaker Change: From both a traditional lithium supply chain and oil and gas produced water. So multiple commercial grade <unk> columns have been deployed as well as more testing from a pilot perspective on produced water throughout the United States. So we see a.

Uday Devaskar: Gotcha. Okay. Thank you. Thanks, Craig. Thank you.

Operator: As a reminder, if you would like to ask a question, please press star 11. One moment for our next question.

Tate Sullivan: And that will come from the line of Tate Sullivan with Maxim Group. Your line is open. Thank you.

Speaker Change: Ramp up in both of those activities.

Speaker Change: And then.

Roshan Poojari: Roshan, can you review your comments to have you seen more more DLE equipment pilot facilities? installed at locations of oil runoff, production runoff water, is that what you mentioned earlier? Hi, thanks for the question. Yeah, we've seen ramp up in upstream activity from both a traditional lithium supply chain and oil and gas produced water. So multiple commercial grade DLE columns have been deployed, as well as more testing from a pilot perspective on produced water throughout the United States. So we see a ramp up in both of those areas.

Speaker Change: Might it be part of the fell or the final engineering. The engineering study that youre scheduled to receive the final quarter.

Speaker Change: In terms of will you have to have a pilot facility yourselves versus the shows.

Speaker Change: Future customers that you are producing battery grade from the equipment processor or is that not are you just going first the train one construction and I'm running low capacity initially to provide samples of battery grade lithium.

Speaker Change: Yeah. So we've made the determination that foreign midstream conversion processing facility, we are using proven and established off the shelf technology and that has been industry proven for a long time. So a pilot facility for the midstream is not what was required.

Roshan Poojari: And then, might it be part of the final engineering study that you're scheduled to receive a final of this quarter in terms of, will you have to have a pilot facility yourselves first to show future customers that you are producing battery grade from the equipment process, or is that not, are you just going first to the train one construction and then running low capacity initially to provide samples of battery grade Cool. Cool. Yeah, so we've made the determination that for our midstream conversion processing facility, we are using proven and established off-the-shelf technology that has been industry proven for a long time.

Speaker Change: For upstream feedstock supplies piloting is required.

Speaker Change: So there are pilots from an upstream perspective, and we are able to create green and potentially create samples using our existing process in concert with our vendors.

Speaker Change: For potential qualification opportunities. So given that these are proven and established off the shelf technologies that we can re size as needed it limits a lot of that technology risk from the processing it.

Speaker Change: And last for me, you mentioned being off the shelf technologies and equipment.

Speaker Change: It's part of what primarily is doing to identifying potential domestic suppliers of equipment can be from custom manufacturing outsourcing facilities or will there still be a net amount of equipment that you have.

Roshan Poojari: So a pilot facility for the midstream is not what's required. For upstream feedstock supplies, piloting is required. So there are pilots from an upstream perspective. And we are able to potentially create samples using our existing process in concert with our vendors for potential qualification opportunities. So given that these are proven and established off-the-shelf technologies that we can resize as needed, it limits a lot of that technology risk from the processing.

Speaker Change: In source or import rather or to be determined.

Speaker Change: Yes, good question relevant in our times now so we have made a considerable effort to source domestically as much as possible.

Speaker Change: We have made a deliberate effort to exclude any.

Speaker Change: Equipment or technology from foreign entities of concern, including China, and so we've created a lot of guardrails on sourcing and procuring products. There will be some machinery that comes outside of the United States, but from friendly jurisdictions.

Roshan Poojari: And Lance, for me, you mentioned being off-the-shelf technologies and equipment is part of what Primera is doing to identify potential domestic suppliers of equipment. Can these be from custom manufacturing outsourcing facilities or will there still be an amount of equipment that you'll have to import or to be deployed? Yeah, good question. Relevant in our times now. And so we have made a considerable effort to source domestically as much as possible. We have made a deliberate effort to exclude any equipment or technology from foreign entities of concern, including China. So we've created a lot of guardrails on sourcing and procuring products.

Speaker Change: And then we also have the ability to leverage the free trade zone at Port Muskogee for additional offsets to potential tariffs and critical minerals, especially lithia inventory refining has been carved out as per my understanding from these tariffs as well.

Speaker Change: Thank you very much.

Speaker Change: Thank you thanks for joining us today.

Speaker Change: Thank you that is all the time, we have for questions and answers. This concludes today's program. Thank you all for participating you may now disconnect.

Tate Sullivan: There will be some machinery that comes outside of the United States, but from friendly jurisdictions. And then we also have the ability to leverage the free trade zone at Port Muskogee for additional offsets to potential tariffs. Critical minerals, especially lithium and refining, has been carved out, as per my understanding, from these tariffs as well. Thank you very much. Thank you, Tate. Thanks for joining us today. Thank you. That is all the time we have for questions and answers. This concludes today's program. Thank you all for participating. You may now disconnect. Thanks for watching!