Financial Data and Key Metrics Changes - Fiscal Year 2025 marked a transformative year for the company, moving from development to commercial readiness, with strong project economics validated [2] - The recently published pre-feasibility study (PFS) for phase one indicates a 39.5-year mine life, an after-tax NPV of $725 million, and a project IRR of 19% [3][4] - Estimated free cash flow over the mine's life is approximately $3.7 billion pre-tax, with an after-tax payback period of just under six years [4] Business Line Data and Key Metrics Changes - The company successfully qualified its high-purity boric acid with 14 customers across various industries, including specialty glass and chemicals [5] - Phase one targets production of 130,000 short tons of boric acid per year, with all-in sustaining costs estimated at $555 per ton [4] Market Data and Key Metrics Changes - There is a growing demand for U.S.-based high-purity boron supply, with additional customers in advanced testing phases [5] - The company has entered long-term offtake discussions, indicating strong market interest and validation [7] Company Strategy and Development Direction - The company is focused on advancing towards a final investment decision (FID) by mid-2026, with early FEED engineering activities already commenced [8][9] - The company aims to build a resilient boric supply chain to support the U.S. industrial base for generations [20] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for a new market producer to reduce supply chain risks, especially in light of recent disruptions from major boric acid producers [10][11] - The company views 2025 as an inflection year for boron, with independent analysis indicating supply shortfalls beginning in 2026 [11] Other Important Information - The company received a non-binding letter of intent for a potential $285 million project debt facility, a significant step towards funding phase one construction [3] - The company submitted a formal response to the U.S. Geological Survey draft critical minerals list, advocating for boron to be included [9] Q&A Session Summary Question: Can you review the comments about the disruption to the California boron mine? - Management noted that Rio Tinto announced a strategic review of their industrial minerals segment, which includes borates, following the appointment of a new CEO [15] Question: What is the process for getting boron on the U.S. Geological Survey critical minerals list? - Management explained that public comments are necessary for the review process, and they submitted their comments along with other groups [16][17]

Financial Data and Key Metrics Changes - Fiscal Year 2025 marked a transformative year for the company, moving from development to commercial readiness, with a robust after-tax NPV of $725 million and a 19% project IRR confirmed by the pre-feasibility study [2][3] - The after-tax NPV is approximately $469 million with a 16% project IRR, and free cash flow over the life of the mine is estimated at roughly $3.7 billion pre-tax [4] Business Line Data and Key Metrics Changes - The company successfully qualified its high-purity boric acid with 14 customers across various industries, including specialty glass, fiberglass, ceramics, and agriculture [5][6] - Phase one targets 130,000 short tons per year of boric acid, with all-in sustaining costs estimated at $555 per ton and initial capital at about $435 million [4] Market Data and Key Metrics Changes - The company sees accelerating demand for a high-purity U.S.-based boron supply, with additional customers in advanced testing phases [5] - The U.S. boron market is characterized as an oligopoly, with a single point of failure, highlighting the need for new market producers to reduce supply chain risks [10] Company Strategy and Development Direction - The company is focused on progressing towards a final investment decision (FID) by mid-2026, with early FEED engineering activities already commenced [8][9] - The company aims to build a strong and resilient boric supply chain that supports the U.S. industrial base for generations [19] Management's Comments on Operating Environment and Future Outlook - Management believes 2025 is an inflection year for boron, with independent analysis indicating supply shortfalls beginning in 2026, reinforcing the need for a new market producer [11] - The company is committed to advancing full-scale testing with multiple specialty glass manufacturers and securing additional qualifications and initial offtake agreements [11] Other Important Information - The company received a non-binding LOI from USXM for a potential $285 million project debt facility, a significant step towards funding phase one construction [3] - The company submitted a formal response to the U.S. Geological Survey draft critical minerals list, advocating for boron to be included [9] Q&A Session Summary Question: Can you review the comments you had about the disruption to the California boron mine? - Management noted that Rio Tinto announced a restructuring of their business segments, placing their industrial minerals, including borates, under strategic review [15] Question: To get boron on the U.S. Geological Survey critical minerals list, what needs to happen in terms of the review? - Management explained that the process involves submitting public comments, and they have already submitted their comments along with other groups [16][17]

Financial Data and Key Metrics Changes - Fiscal Year 2025 marked a transformative year for the company, moving from development to commercial readiness, with a robust after-tax NPV of $725 million and a 19% project IRR confirmed by the pre-feasibility study [2][3] - The after-tax NPV is approximately $469 million with a 16% project IRR, and free cash flow over the life of the mine is estimated at roughly $3.7 billion pre-tax [4] Business Line Data and Key Metrics Changes - The company successfully qualified its high-purity boric acid with 14 customers across various industries, indicating strong demand for U.S.-based boron supply [5][6] - Phase one targets 130,000 short tons per year of boric acid, with all-in sustaining costs estimated at $555 per ton and initial capital at about $435 million [4] Market Data and Key Metrics Changes - The company noted a significant supply chain risk in the boron market, particularly due to disruptions from major producers, which has created a clear opportunity for new market entrants [10][11] - The second largest boric acid producer in the U.S. has seen costs increase approximately 60% since 2017, highlighting the need for new production sources [10] Company Strategy and Development Direction - The company is focused on advancing towards a final investment decision (FID) by mid-2026, with early FEED engineering activities already commenced [8][9] - The company aims to build a strong and resilient boric supply chain to support the U.S. industrial base for generations [20] Management's Comments on Operating Environment and Future Outlook - Management emphasized the fundamental need for a new market producer in the boron sector, especially in light of supply shortfalls expected to begin in 2026 [11] - The company is optimistic about progressing full-scale testing with multiple specialty glass manufacturers and securing additional qualifications and initial offtake agreements [11] Other Important Information - The company received a non-binding LOI from USXM for a potential $285 million project debt facility, which is a significant step towards funding phase one construction [3] - The company has submitted a formal response to the U.S. Geological Survey draft critical minerals list, advocating for boron to be included [9] Q&A Session Summary Question: Can you review the comments you had about the disruption to the California boron mine? - Management explained that Rio Tinto has streamlined its business structure, placing its industrial minerals segment under strategic review, which includes borates [15] Question: To get boron on the U.S. Geological Survey critical minerals list, what needs to happen in terms of the review? - Management indicated that public comments are essential for the review process, and they submitted their comments along with other groups during the 30-day public comment window [16][17]

Financial Data and Key Metrics Changes - Fiscal Year 2025 marked a transformative year for the company, transitioning from development to commercial readiness, with a robust after-tax NPV of $725 million and a 19% project IRR confirmed in the pre-feasibility study [2][3] - The after-tax NPV is approximately $469 million with a 16% project IRR, and free cash flow over the life of the mine is estimated at roughly $3.7 billion pre-tax [4] Business Line Data and Key Metrics Changes - The company successfully qualified its high-purity boric acid with 14 customers across various industries, including specialty glass and ceramics, indicating strong demand for U.S.-based boron supply [5][6] - Phase one targets 130,000 short tons per year of boric acid, with all-in sustaining costs estimated at $555 per ton and initial capital at about $435 million [4] Market Data and Key Metrics Changes - The company highlighted a significant supply chain risk in the U.S. boron market, with the second-largest boric acid producer experiencing a 60% cost increase since 2017 [10] - The market is characterized as an oligopoly, with the U.S. potentially transitioning from a net exporter to a net importer of boron without new investments [10] Company Strategy and Development Direction - The company is focused on advancing towards a final investment decision (FID) by mid-2026, with early FEED engineering activities already commenced [8][9] - The company aims to build a strong and resilient boric supply chain to support the U.S. industrial base for future generations [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the fundamental need for a new market producer due to anticipated supply shortfalls beginning in 2026 [11] - The company is actively engaging with the U.S. Geological Survey to advocate for boron to be added to the critical minerals list, which is seen as essential for addressing supply chain concerns [10][18] Other Important Information - The company received a non-binding LOI from USXM for a potential $285 million project debt facility, a significant step towards funding phase one construction [3] - The company is in long-term offtake discussions and has completed logistics trials with a tier one specialty glass manufacturer [7] Q&A Session Summary Question: Can you review the comments you had about the disruption to the California boron mine? - Management noted that Rio Tinto announced a strategic review of their industrial minerals segment, which includes borates, following a restructuring [16] Question: What needs to happen to get boron on the U.S. Geological Survey critical minerals list? - Management explained that public comments were submitted during a 30-day window following the release of the draft list, with expectations for boron to be included [17][18]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 001-41279 5E ADVANCED MATERIALS, INC. (Exact name of Registrant as specified in its Charter) Delaware 87-3426517 (State or other jurisdiction of incorpo ...

Core Insights - The company, 5E Advanced Materials, Inc., is focused on becoming a vertically integrated global leader in refined borates and advanced boron derivative materials [1] - A live webcast is scheduled for September 29, 2025, to review financial results, operational milestones, and fiscal year 2026 objectives [1] Financial and Operational Highlights - The fiscal year 2025 Year-end call will take place at 5:00 p.m. Eastern Time [1] - The company is advancing its operational goals as part of its strategic plan [1]

Core Insights - 5E Advanced Materials, Inc. has successfully completed a logistics milestone in its commercial qualification process with a major global specialty glass manufacturer [1] - The logistics trial involved packaging and shipping boron-rich material from California to Taiwan, indicating progress in the company's supply chain capabilities [1] Company Summary - 5E Advanced Materials is focused on becoming a vertically integrated global leader in refined borates and advanced boron derivative materials [1] - The company operates in critical end-markets such as mobile electronics, advanced telecommunications, and life sciences applications [1] Industry Context - The successful logistics trial supports the commercial qualification pathway, which is essential for establishing partnerships with major manufacturers in the specialty glass sector [1] - The movement of boron-rich materials highlights the growing demand for advanced materials in high-tech industries [1]

Summary of 5E Advanced Materials (FEAM) Update / Briefing Company Overview - **Company**: 5E Advanced Materials (FEAM) - **Industry**: Boron mining and production Key Points and Arguments Pre-Feasibility Technical Report - The report is based on 18 months of mining data and 14-15 months of chemical plant data, indicating a strong foundation for the findings [5][8][9] - The report suggests a 40-year mine life, with 41% of the resource accounted for in the current estimates [8][9] - The company has made significant improvements in capital expenditure (CapEx) clarity, including the integration of cogeneration (cogen) systems [16][17] Financial Metrics - Initial capital investment is projected at $435 million, generating $3.75 billion in pretax free cash flow over the mine's life, equating to an 8,600% cash-on-cash return [16][17] - Operating cash flow is estimated at $100 million annually, with an operating margin of $800 per ton based on a production target of 130,000 tons [11][16] Cost Structure and Pricing - All-in sustaining cash costs are projected at approximately $5.54 per ton, with logistics costs included [11][12] - The average forecasted pricing for boric acid is $13.55 per ton, leading to a netback price of around $11.30 to $11.40 [14][15] - The market is characterized as an oligopoly with growing demand, supporting the sustainability of pricing [15] Market Position and Demand Dynamics - The company is expected to produce approximately 11% of the boric acid market from this single project, enhancing its pricing power and contract negotiation capabilities [28][29] - The boron supply-demand dynamic is favorable, with demand growing while supply struggles to keep pace, leading to potential pricing increases [28][31] Operational and Technical Advantages - The use of horizontal wells has improved recovery rates to 81.9% with minimal surface disturbance, enhancing operational efficiency [45][46] - The geology of the deposit is favorable, allowing for efficient extraction methods [46][48] Future Growth and Expansion Potential - The company has the potential to expand production significantly beyond the initial phase, with plans to explore higher-value boron derivatives [58][59] - There is a strong interest from private equity funds and infrastructure investors due to the project's strategic importance and long-term cash flow characteristics [26][28] Regulatory and Permitting Status - Existing permits allow for the production of 160,000 short tons of boric acid, positioning the company favorably in terms of regulatory compliance [68] - The company is actively working on additional permits and regulatory milestones to support future production [68][69] Capital Allocation Strategy - The focus will be on reinvesting cash flows into expansion and derivative projects rather than immediate shareholder returns [93][94] Lithium Extraction Potential - Initial analyses indicate the presence of lithium in the solution, which could be a future byproduct, although it is not currently factored into the economic model [95][96] Additional Important Insights - The company has established relationships with 14 global customers, indicating strong demand for its products [41][42] - The boron market is projected to grow at an average rate of 5.5%, driven by various applications including glass, ceramics, and specialty borates [74][75][76] - The management team has extensive experience in mining and processing, enhancing the company's operational capabilities [80][81] This summary encapsulates the critical insights from the briefing, highlighting the company's strategic positioning, financial metrics, market dynamics, and future growth potential.

Summary of 5E Advanced Materials (FEAM) Conference Call Company Overview - **Company**: 5E Advanced Materials (Ticker: FEAM) - **CEO**: Paul Wiebel, who has been with the company for four years and in the CEO role for one year [3][4] Industry Insights - **Material Focus**: Boron, identified as a critical material with applications in defense, electronics, and construction [5][6] - **Market Position**: The boron market is characterized as a global oligopoly, with significant supply chain security concerns due to geopolitical factors [7] - **Supply Dynamics**: Current supply of boron is in a deficit, with only six known boron projects globally, and only two of those have permits [19][70] Project Details - **Location**: The boron project is situated between Las Vegas and Los Angeles, with a permitted capacity of 90,000 tons of boron oxide [8][12] - **Production Plans**: Initial phase targeting 30,000 tons of boric acid production, with a projected EBITDA run rate of $100 million [9][22] - **Mining Method**: Utilizes a solution mining method that is more environmentally sustainable compared to traditional open-pit mining [15][17] Financial Projections - **Cost Structure**: Targeting an operating cost of $525 per ton, with boron prices currently around $1,000 to $1,300 per ton [18][21] - **Investment Requirements**: Estimated capital expenditure for the project is between $420 million to $430 million, with plans for debt financing [23][24] - **IRR**: Projected internal rate of return (IRR) for phase one is around 20% [25] Strategic Goals - **Upcoming Milestones**: Focus on delivering a Pre-Feasibility Study (PFS) and securing offtake agreements, which are critical for debt financing [26][45] - **Market Engagement**: Emphasis on public market engagement to build investor confidence and secure necessary funding [63] Challenges and Considerations - **Offtake Agreements**: Essential for securing debt financing; challenges exist in negotiating fixed-price agreements with potential buyers [46][48] - **Capital Structure**: The company has restructured its capital, with a clean balance sheet and no current debt, but convertible notes previously posed challenges [55][59] Conclusion - **Investment Proposition**: 5E Advanced Materials presents a compelling opportunity in the boron market, with strong fundamentals supporting supply and demand dynamics, and a clear path to commercial production [74]

Financial Performance - Total costs and expenses for the three months ended March 31, 2025, were $10.2 million, a 143% increase compared to the same period in 2024[139]. - For the nine months ended March 31, 2025, project expenses increased by $114 thousand, or 3%, mainly due to increased wellfield development activity and site-related costs[141]. - General and administrative expenses increased by $268 thousand, or 9%, for the three months ended March 31, 2025, primarily due to higher professional fees[144]. - General and administrative expenses decreased by $5.1 million, or 31%, for the nine months ended March 31, 2025, mainly due to reductions in base compensation and employee benefits[145]. - Depreciation and amortization expense increased by $4.9 million for the three months ended March 31, 2025, and by $14.8 million for the nine months ended March 31, 2025, due to the commencement of operations of the small-scale facility[147]. - Interest income decreased by $52 thousand, or 71%, for the three months ended March 31, 2025, and by $147 thousand, or 68%, for the nine months ended March 31, 2025, reflecting lower average cash balances[149]. - Interest expense for the three months ended March 31, 2025, increased by $1.0 million, or 127%, compared to the prior fiscal year, primarily due to capitalizing less interest expense to construction-in-progress[158]. - For the nine months ended March 31, 2025, interest expense increased by $2.1 million, or 48%, primarily due to a $17.0 million increase in the principal balance of Convertible Notes and a reduction in capitalized interest[159]. - Net cash used in operating activities for the nine months ended March 31, 2025, was $17.4 million, a decrease of approximately $2.2 million or 11% compared to the prior fiscal year[167]. - Cash flows used for investing activities decreased by approximately $4.5 million, or 76%, to $1.4 million for the nine months ended March 31, 2025, primarily related to engineering services for the commercial-scale facility[168]. - Cash flows provided by financing activities for the nine months ended March 31, 2025, totaled $17.9 million, an increase of 36% compared to the prior fiscal year, driven by various equity and debt financing transactions[169]. Project Development - The first phase of commercial production is expected to deliver 77,000 short tons of B2O3 with targeted capital expenditure between approximately $390 million and $430 million, and an unlevered internal rate of return ranging from 18% to 22%[121]. - The company successfully completed specialty glass trials, demonstrating that its boric acid performed as well as or better than competitors' products, advancing customer onboarding[120]. - The company plans to complete vendor equipment testing by June 2025, with a final investment decision anticipated in early 2026[122]. - The company is targeting completion of a pre-feasibility report with a robust final economic analysis in June 2025[121]. - The company received a non-binding letter of intent from the U.S. Export-Import Bank for a loan-backed guarantee on project debt financing of up to $285 million for its proposed commercial scale facility[135][136]. - The company had purchase order commitments of approximately $2.7 million as of March 31, 2025, primarily for raw materials and engineering services[177]. Financing and Capital Structure - The company raised an aggregate of $17 million from financing transactions, including the January 2025 Notes, March 2025 Subscription, and May 2025 Subscription, improving its cash position[130]. - The company issued 1,408,173 shares of common stock at a subscription price of $3.5507 per share, resulting in gross proceeds of $5 million in March 2025[128]. - The company extinguished all outstanding indebtedness under the Convertible Notes in March 2025, improving its cash position and eliminating the financial covenant requiring a minimum cash balance[164]. - The company plans to explore various financing strategies, including equity or debt financing, to support its business growth and operations over the next 12 months[180]. Compliance and Regulatory Matters - The company’s project is designated as Critical Infrastructure by the U.S. Department of Homeland Security, highlighting its strategic importance[119]. - The company’s stock regained compliance with Nasdaq listing rules after the closing bid price was above $1.00 per share for 10 consecutive business days[133]. - There is substantial doubt regarding the company's ability to continue as a going concern for a period of one year after the date of the unaudited condensed consolidated financial statements[181]. - The company may need to curtail planned activities, discontinue certain operations, or sell assets if unable to raise additional capital or generate necessary cash flows[181]. Accounting and Reporting Changes - No significant changes in critical accounting policies were reported during the nine months ended March 31, 2025[182]. - The FASB issued ASU 2023-07, effective after December 15, 2023, enhancing segment reporting disclosure requirements[183]. - ASU 2023-09, effective after December 15, 2024, aims to improve income tax disclosures, including reconciliation items and disaggregation of income[184]. - ASU 2024-03 requires disaggregation of certain expenses in financial notes, effective after December 15, 2026[185]. - The company is evaluating the impact of ASU 2023-07, ASU 2023-09, and ASU 2024-03 on its consolidated financial statements[183][184][185]. - The company is classified as a smaller reporting company and is not required to provide certain market risk disclosures[186].