5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) (“5E” or the
“Company”), a boron and lithium company with U.S. government
Critical Infrastructure designation for its 5E Boron Americas (Fort
Cady) Complex, today provides a shareholder update and review of
the first quarter ended September 30, 2024.
HIGHLIGHTS
-
5E has assessed and scoped its commercial phase design package to
include calcium chloride production, which we anticipate will
reduce Phase 1 commercial CAPEX by approximately 15% and improve
project rates of return;
-
5E’s commercial progress is advancing with momentum as the Company
has delivered its first full truckload shipment of boric acid super
sacks to a U.S. customer;
-
The Company’s expanded cost optimization initiative has further
streamlined operations, and is estimated to yield approximately
$2.2 million in operating expense improvement for calendar year
2025;
- The Company’s
small-scale boron facility has achieved its optimized steady-state
production rate of 1 short ton per day of boric acid, a level which
is designed to meet volumetric needs for expanded customer
qualification, testing needs for our commercial strategy, and
minimize liquidity impact;
-
Operational process improvements have yielded improved product
quality and consistency, with production now consistently exceeding
desired customer specifications; and
-
The Company’s capital funding strategy has been advanced with the
receipt of a letter-of-intent from the Export-Import Bank of the
United States (“EXIM”) for the potential creation of a facility to
backstop up to $285 million in project debt financing, subject to
EXIM’s final approval.
“Over the last three months, 5E has made
significant progress across the most critical elements of our
strategy and go-forward plan as we advance our 5E Boron Americas
project (the “Project”) towards commercial scale production,” said
Paul Weibel, Chief Executive Officer of 5E Advanced Materials.
“We’ve made the critical strategic decision to pursue calcium
chloride as our byproduct and have now begun incorporating this
decision into our commercial basis of design. We believe that the
pursuit of calcium chloride for our by-production alongside boric
acid has the potential to ultimately yield a significant decrease
in our CAPEX needed for our commercial scale development, to
meaningfully improve the Project’s rate of return, and to further
embed long-term shareholder value creation to the Project.”
Weibel continued “Our commercial strategy is
advancing with momentum, and we recently met a key milestone in our
timeline through the delivery of our first truckload of boric acid
super sacks to a U.S. customer. We recently added two seasoned
borates sales and marketing professionals which have already helped
5E make important advancements in translating customer engagement
to initial off-take discussions, and we’re currently in process of
negotiating contracts for 25-to-50% of our initial boric acid
production in commercial Phase 1, with a line of sight towards
securing tonnage of boric acid in the coming months that will go
towards Phase 2. Additionally, we’ve expanded the geographic reach
of commercial program to the APAC region, with coverage over more
than 80% of the global borates demand as we look to high-grade the
margin profile of our commercial scale production through targeted
industry segmentation.”
Weibel concluded, “We’ve aligned and optimized
our plant-level production rates and overall operations and
production processes, which has resulted in operating cost
reductions and an improvement in the quality and consistency of our
boric acid production. 5E is working to accelerate across its
operational and commercial strategy playbook, and we remain on path
to complete an optimal design with pre-feed engineering work and
progress our Project and development towards production of boric
acid at commercial scale. Our commercial strategy execution has
gained encouraging momentum as we’ve advanced customer offtake
discussions and recently delivered our first shipment of boric acid
to a customer. We will remain diligent with a keen focus on
operational and commercial execution to help support our long-term
funding strategy. We have a clear roadmap ahead of us in the next
twelve months, and we look forward to delivering on our Project’s
value enhancing catalysts as we complete pre-feed engineering and
prepare the Project for commercial scale development and production
in the coming year.”
Conference Call Information
Interested parties can access the live webcast
of the conference call at 5:00 p.m. EST today on the Company’s
website at
https://investors.5eadvancedmaterials.com/events-presentations, or
for participants that prefer to dial in by phone, dial in using
toll-free number +1 (877) 545-0320 with Participant Access Code
702160. International call participants are instructed to use
toll-free number +1 (973) 528-0002. Please log in or dial in at
least 10 minutes prior to the start time to ensure a connection. An
archived version of the webcast will be accessible for 1 year
following the call at https://investors.5eadvancedmaterials.com/ in
the Investor Relations – Events and Presentations section of the
website.
About 5E Advanced Materials,
Inc.
5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX:
5EA) is focused on becoming a vertically integrated global leader
and supplier of specialty boron and advanced boron derivative
materials, complemented by lithium co-product production. The
Company’s mission is to become a supplier of these critical
materials to industries addressing global decarbonization, food and
domestic security. Boron and lithium products will target
applications in the fields of electric transportation, clean energy
infrastructure, such as solar and wind power, fertilizers, and
domestic security. The business strategy and objectives are to
develop capabilities ranging from upstream extraction and product
sales of boric acid, lithium carbonate and potentially other
co-products, to downstream boron advanced material processing and
development. The business is based on the company’s large domestic
boron and lithium resource, which is located in Southern California
and designated as Critical Infrastructure by the Department of
Homeland Security’s Cybersecurity and Infrastructure Security
Agency.
Forward Looking Statements and
Disclosure
This press release includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. All statements other than
statements of historical fact included in this press release
regarding the Company’s business strategy, plans, goals, and
objectives; our expectation of future results; future operational
initiatives, costs and cost savings; production capacity; capital
expenditures, the anticipated benefits of pursuing calcium chloride
for by-production; anticipated capital funding, market dynamics;
and other items, are forward-looking statements. When used in this
press release, the words “believe,” “project,” “expect,”
“forecast,” “anticipate,” “estimate,” “intend,” “seek,” “budget,”
“target,” “aim,” “strategy,” “plan,” “guidance,” “outlook,”
“intent,” “may,” “should,” “could,” “will,” “would,” “will be,”
“will continue,” “will likely result,” and similar expressions are
intended to identify forward-looking statements, although not all
forward-looking statements contain such identifying words. These
forward-looking statements are based on the Company’s current
expectations and assumptions about future events and are based on
currently available information as to the outcome and timing of
future events. We caution you that these forward-looking statements
are subject to all the risks and uncertainties, most of which are
difficult to predict and many of which are beyond our control,
incident to the extraction of the critical materials we intend to
produce and advanced materials production and development. These
risks include, but are not limited to: our limited operating
history in the borates and lithium industries and no revenue from
our proposed extraction operations at our properties; our need for
substantial additional financing to continue as a going concern and
to execute our business plan and our ability to access capital and
the financial markets; our status as an exploration stage company
dependent on a single project with no known Regulation S-K 1300
mineral reserves and the inherent uncertainty in estimates of
mineral resources; our lack of history in mineral production and
the significant risks associated with achieving our business
strategies, including our downstream processing ambitions; our
incurrence of significant net operating losses to date and plans to
incur continued losses for the foreseeable future; risks and
uncertainties relating to the development of the Fort Cady Project,
including our ability to timely and successfully complete our
proposed Commercial Scale Boron Facility; our ability to obtain,
maintain and renew required governmental permits for our
development activities, including satisfying all mandated
conditions to any such permits; the implementation of and expected
benefits from certain reduced spending measures; the delisting of
our securities from Nasdaq, which could limit investors’ ability to
transact in our securities, subject us to additional trading
restrictions and substantially increase the number of shares
issuable upon conversion of our outstanding convertible notes; and
other risks and uncertainties set forth in our Annual Report on
Form 10-K (“Form 10-K”) filed with the U.S. Securities and Exchange
Commission (“SEC”) on September 9, 2024, as updated in other
filings with the SEC from time to time. Should one or more of these
risks or uncertainties occur, or should underlying assumptions
prove incorrect, our actual results and plans could differ
materially from those expressed in any forward-looking statements.
These risks are not exhaustive and the information in this press
release may be subject to additional risks. You are cautioned not
to place undue reliance on any forward-looking statements, which
speak only as to the date of this press release.
For additional information regarding these
various factors, you should carefully review the risk factors and
other disclosures in the Company’s Form 10-K and subsequent filings
with the SEC, as well as in its filings with the Australian
Securities Exchange. Any forward-looking statements are given only
as of the date hereof. Except as required by law, 5E expressly
disclaims any obligation to update or revise any such
forward-looking statements. Additionally, 5E undertakes no
obligation to comment on third party analyses or statements
regarding 5E’s actual or expected financial or operating results or
its securities.
For further information
contact:
Nathan Skown or Joseph CaminitiAlpha IR GroupFEAM@alpha-ir.com
Ph: +1 (312) 445-2870
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/a47b064b-f2f7-42e5-8526-72fd9b2d94bb
5E Advanced Materials (NASDAQ:FEAM)
Gráfico Histórico do Ativo
De Nov 2024 até Dez 2024
5E Advanced Materials (NASDAQ:FEAM)
Gráfico Histórico do Ativo
De Dez 2023 até Dez 2024