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].

Company Overview - 5E Advanced Materials, Inc. is focused on becoming a vertically integrated global leader in boron specialty and advanced materials, with lithium co-product production [3] - The company's mission includes supplying critical materials for industries addressing global decarbonization, food, and domestic security [3] - The business strategy encompasses upstream extraction and product sales of boric acid and lithium carbonate, as well as downstream boron advanced material processing [3] Recent Developments - CEO Paul Weibel will present at the 15th Annual LD Micro Invitational Conference on April 9-10, 2025, in New York City [1] - Management will conduct one-on-one and group meetings with registered investors during the event [1] Event Information - A live webcast of the company's presentation is scheduled for April 10 at 3:00 PM EDT [2] - Associated materials for the event can be accessed through the investor section of the company's website [2]

Production and Operations - For the three months ended December 31, 2024, the company maintained boric acid production at one short ton per day, optimizing production rates and reducing operating costs [123]. - The company is currently in the process of FEL-2 engineering for Phase 1 of the Commercial Scale Facility, ensuring high-quality project scope [125]. - The company is negotiating contracts for initial boric acid production in commercial Phase 1 and has expanded its commercial program to cover over 80% of global borates demand [126]. - The company has made a strategic decision to pursue calcium chloride as a byproduct, which is expected to decrease capital expenditures for the Commercial Scale Facility [124]. Financial Performance - The company reported a net loss of $3.646 million for the three months ended December 31, 2024, representing a 34% increase in loss compared to the previous year [132]. - Interest expense increased by $691 thousand, or 40%, for the three months ended December 31, 2024, primarily related to the Convertible Notes [149]. - For the six months ended December 31, 2024, interest expense rose by $1.1 million, or 30%, attributed to similar factors as the quarterly increase, including interest on $2.1 million and $3.4 million of paid-in-kind interest [151]. - The company experienced a derivative gain of $1.4 million for the six months ended December 31, 2024, primarily due to a decrease in stock price affecting the embedded conversion feature liabilities [148]. Cash Flow and Financing - The company improved its cash position by $5.0 million through the January 2025 Notes, but still requires additional financing to maintain a cash balance above the $7.5 million minimum covenant [129][130]. - As of December 31, 2024, cash and cash equivalents were $0.8 million, with a working capital deficit of $8.0 million, compared to $4.9 million in cash and a deficit of $2.9 million as of June 30, 2024 [153]. - Cash flows provided by financing activities totaled $8.4 million for the six months ended December 31, 2024, significantly up from $20 thousand in the prior year, driven by proceeds from the August 2024 Equity Offering and September 2024 Notes [158]. - The company plans to require additional financing within the next twelve months to maintain a cash balance above the $7.5 million minimum cash covenant [176]. Workforce and Cost Management - A strategic reduction in workforce was undertaken in November 2024, reducing headcount by approximately 40%, expected to save about $2.2 million in operating expenditures during calendar year 2025 [127]. - General and administrative expenses decreased by $4.1 million, or 56%, for the three months ended December 31, 2024, mainly due to reduced professional fees and incentive compensation costs [139]. - Small-scale facility operating costs for the three months ended December 31, 2024, totaled $1.08 million, with salaries and benefits accounting for $0.8 million [135]. Regulatory and Accounting Standards - The FASB issued ASU 2023-07, effective after December 15, 2023, which enhances reportable segment disclosure requirements, including significant segment expenses [181]. - ASU 2023-09, effective after December 15, 2024, aims to improve income tax disclosures, including reconciliation items and disaggregation of income tax expenses [182]. - ASU 2024-03, effective after December 15, 2026, requires disaggregation of certain expenses in financial notes for enhanced transparency [183]. - ASU 2024-04 clarifies accounting for induced conversion of convertible debt instruments and is effective after December 15, 2025 [184]. Strategic Direction and Concerns - The company is focused on becoming a vertically integrated global leader in specialty boron and advanced boron derivative materials to support decarbonization and food security [115]. - There is substantial doubt regarding the company's ability to continue as a going concern for a period of one year after the issuance of the unaudited condensed consolidated financial statements [179]. - The company is exploring various financing strategies, including equity or debt financing, government funding, and strategic alliances, but there is no assurance of securing adequate financing in a timely manner [178].

Financial Compliance - As of September 30, 2024, the company's stockholders' equity was reported at $2,094,000, significantly below the Nasdaq minimum requirement of $10,000,000[8] - The company received a notice from Nasdaq regarding non-compliance with the minimum stockholders' equity requirement on November 20, 2024[8] - The company has until January 6, 2025, to submit a Compliance Plan to regain Nasdaq listing compliance[10] - The company was notified on September 12, 2024, that its stock price had closed below the $1.00 minimum bid price requirement for 30 consecutive business days[12] - The company has been provided an initial period until March 11, 2025, to regain compliance with the Minimum Bid Price Requirement[12] - The company intends to submit the Compliance Plan by the deadline but cannot guarantee acceptance or compliance[11] Business Operations and Financial Health - The company is currently in an exploration stage with no revenue from its proposed extraction operations[16] - The company has incurred significant net operating losses since inception and anticipates continued losses for the foreseeable future[15] - The company faces substantial doubt regarding its ability to continue as a going concern without additional financing[15] - The company is dependent on a single project with no known mineral reserves, which adds to the uncertainty of its business strategy[16]

Core Insights - 5E Advanced Materials, Inc. has made significant progress in its commercial strategy and operational improvements, particularly in the production of boric acid and the incorporation of calcium chloride as a byproduct, which is expected to reduce capital expenditures and enhance project returns [2][3][4] Group 1: Commercial Developments - The company has successfully delivered its first full truckload shipment of boric acid super sacks to a U.S. customer, marking a key milestone in its commercial strategy [2][3] - 5E is negotiating contracts for 25% to 50% of its initial boric acid production in commercial Phase 1, with plans to secure additional tonnage for Phase 2 [3] - The geographic reach of the commercial program has expanded to the APAC region, covering over 80% of global borates demand [3] Group 2: Operational Improvements - The small-scale boron facility has achieved a steady-state production rate of 1 short ton per day of boric acid, which supports customer qualification and testing needs [2] - Operational process improvements have led to enhanced product quality and consistency, with production consistently exceeding customer specifications [2][4] - A cost optimization initiative is projected to yield approximately $2.2 million in operating expense improvements for the calendar year 2025 [2] Group 3: Financial and Strategic Initiatives - The company has received a letter-of-intent from the Export-Import Bank of the United States for potential project debt financing of up to $285 million, pending final approval [2] - The strategic decision to pursue calcium chloride as a byproduct is anticipated to significantly decrease capital expenditures and improve the project's rate of return [3] - The company is focused on aligning and optimizing plant-level production rates and overall operations to support long-term funding strategies [4]

Financial Performance - For the three months ended September 30, 2024, total costs and expenses increased by $5.198 million, or 67%, to $12.911 million compared to $7.713 million in the same period of 2023[72]. - The company reported a net loss of $12.859 million for the three months ended September 30, 2024, compared to a net loss of $9.370 million in the same period of 2023, representing a 37% increase in losses[72]. - Interest income decreased by $109 thousand, or 83%, to $22 thousand, reflecting a decline in average cash and cash equivalent balances[79]. - Other income decreased by $2 thousand, or 67%, to $1 thousand, primarily due to reduced third-party use of hydrology wells[80]. - Interest expense increased by $0.4 million, or 21%, to $2.3 million, driven by a higher interest rate of 10% on the Convertible Notes and an increase in the principal balance[83]. - Net cash used in operating activities was $6.4 million, a decrease of approximately $0.5 million, or 7%, compared to the prior year[87]. Capital and Financing Activities - The company completed an equity offering in August 2024, raising approximately $3.0 million in net proceeds after deducting fees and expenses[65]. - In September 2024, the company issued new senior secured convertible notes totaling $6.0 million, resulting in approximately $5.5 million in net proceeds after costs[66]. - Cash flows from financing activities included approximately $3.1 million from the August 2024 Equity Offering and $5.7 million from the issuance of September 2024 Notes[89]. - The company entered into an equity distribution agreement allowing the sale of up to $15.0 million of common stock, but did not sell any shares during the three months ended September 30, 2024[92]. - The company needs to maintain a cash balance in excess of $7.5 million to avoid default under the Amended and Restated Note Purchase Agreement, with substantial doubt regarding its ability to continue as a going concern[96]. - The company is exploring various financing strategies, including equity or debt financing, government funding, and strategic alliances, but there is no assurance of securing additional financing[96]. Production and Operational Updates - The company maintained boric acid production at one short ton per day, with continuous improvements in production rates and product specifications[62]. - The company anticipates maintaining current production rates while refining the design of its commercial-scale facility[64]. - The company has begun to remove metal salts, with calcium levels exceeding 20,000 ppm, and is exploring calcium chloride as a potential byproduct[64]. - For the three months ended September 30, 2024, small-scale facility operating costs totaled $1.6 million, including $1.2 million in salaries and benefits, $0.2 million in raw materials, and $0.2 million in maintenance and upkeep[75]. - Project expenses for the three months ended September 30, 2024, decreased by $29 thousand, or 2%, primarily due to lower compliance and testing costs[73]. Administrative and Compliance Matters - General and administrative expenses decreased by $1.2 million, or 21%, to $4.5 million compared to the prior year, primarily due to the reclassification of salaries related to the small-scale facility[76]. - Depreciation and amortization expense increased by $4.9 million due to the commencement of commercial operations of the small-scale facility on April 1, 2024[78]. - There were no significant changes in critical accounting policies during the three months ended September 30, 2024[97]. - The company evaluated its disclosure controls and procedures and concluded they were effective as of September 30, 2024[101]. - No changes in internal control over financial reporting were identified that materially affected the company's internal control for the quarter ended September 30, 2024[102]. - The company is not currently involved in any material pending legal proceedings[102]. Future Plans and Commitments - As of September 30, 2024, the company had purchase order commitments of approximately $4.3 million primarily for engineering services and raw materials[94]. - The company plans to operate the small-scale facility (SSF) and progress customer qualification programs, which will require additional capital over the next 12 months[95]. - Future capital requirements include optimizing well-field design to reduce mining capital and operational expenditures through advanced drilling techniques[96]. - The company hired two strategic executives in October 2024 to enhance its commercial team and support market expansion initiatives[61].

Core Viewpoint - 5E Advanced Materials, Inc. has appointed Mark Zamek as Vice President of Commercial Products to enhance its commercial strategy and customer engagement in the boron and lithium markets [1][2][3] Company Overview - 5E Advanced Materials, Inc. aims to become a vertically integrated global leader in boron specialty and advanced materials, with a focus on lithium co-product production [4] - The company targets applications in electric transportation, clean energy infrastructure, fertilizers, and domestic security, leveraging its large domestic boron and lithium resource in Southern California [4] Leadership Appointment - Mark Zamek brings over 20 years of experience in the borate industry, having held senior roles in Sales and Marketing at major global borate producers [2] - His previous role involved consulting for Eti Maden on U.S.-focused boron operations, and he has extensive experience with Rio Tinto's U.S. Borax [2] Strategic Goals - The appointment of Zamek is expected to strengthen 5E's commercial strategy and facilitate deeper customer engagements and partnerships [3] - The company is focused on advancing commercial contracting and off-take agreements as it progresses towards securing debt financing and fully operationalizing its business [3]

Mining Operations - The company commenced mining operations on January 1, 2024, achieving first production of boric acid and accumulating over 50,000 gallons of Pregnant Leach Solution (PLS) with an average head grade of 5.5% during the first three months[199][200]. - The Small-Scale Facility (SSF) is designed to produce up to 2,000 short tons of boric acid annually, with plans to scale up to a run rate of 9,000 short tons with additional capital investment[200][201]. - The company is targeting to deliver up to 100 tons of boric acid to potential customers for testing during fall 2024, with ongoing customer qualification programs involving leading global companies[200]. - The average head grade of boron has consistently ranged between 5.5% and 6.0%, outperforming the historical estimate of 3.7%[201]. - The company anticipates achieving a head grade of 7.0% or higher through process optimization, which would reduce operating costs[201]. - The company is assessing the feasibility of producing value-added byproducts such as magnesium hydroxide, which could further reduce operating costs[201]. Financial Performance - Total costs and expenses for the year ended June 30, 2024, were $35.86 million, a decrease of $847,000 or 2% compared to the previous year[222]. - The company reported a net loss of $62.01 million for the year ended June 30, 2024, an increase in loss of $31.39 million or 102% compared to the prior year[222]. - Project expenses decreased by $3.36 million or 34% year-over-year, primarily due to reduced costs in plug and abandonment programs and engineering reports[224]. - General and administrative expenses decreased by $1.4 million or 5%, mainly due to lower share-based compensation and marketing costs[225]. - Research and development expenses dropped by $217,000 or 83% year-over-year, attributed to the completion of engagements with research institutions[226]. - The loss on extinguishment of debt for the year was $20.95 million, resulting from modifications to the terms of the Original Notes[231]. - The company anticipates needing additional financing to maintain a cash balance above the $7.5 million minimum cash covenant[219]. - As of June 30, 2024, the company had cash and cash equivalents of $4.9 million, down from $20.3 million as of June 30, 2023, resulting in a working capital deficit of $2.9 million compared to a surplus of $13.3 million[238]. - For the year ended June 30, 2024, net cash used in operating activities was $26.9 million, a decrease of $3.8 million or 12% compared to the previous year[242]. - Cash flows used for investing activities decreased by $32.1 million or 82% to $7.2 million for the year ended June 30, 2024, due to reduced construction activities as the SSF approached final commissioning[243]. - Cash flows provided by financing activities for the year ended June 30, 2024, included $15.8 million from a private placement of Common Stock and $5.5 million from the issuance of June 2024 Notes[244]. - Interest expense for the year ended June 30, 2024, decreased by $655 thousand or 10% compared to the previous year, primarily due to the write-off of unamortized debt discount and increased capitalization of interest[234][235]. - Other expenses decreased by $6 thousand or 40% for the year ended June 30, 2024, primarily due to reduced foreign currency transaction losses[236]. Capital Structure and Financing - On January 18, 2024, the company issued 5,365,854 shares of Common Stock to Ascend and 5,365,854 shares to 5ECAP at a price of $1.025 per share as part of its Out-of-Court Restructuring[206]. - The company issued new senior secured convertible notes in an aggregate principal amount of $6.0 million on June 11, 2024, with a conversion rate of 650.4065 shares of Common Stock per $1,000 principal amount[209][210]. - The conversion rate for the June 2024 Notes was adjusted from 650.4065 shares to 692.7990 shares per $1,000 principal amount due to a Degressive Issuance, resulting in a total of up to 6,252,366 shares convertible[212]. - The company raised approximately $4.0 million in gross proceeds from the August 2024 Offering, which included 5,333,333 shares of Common Stock and associated warrants[218]. - The company entered into an equity distribution agreement allowing for the sale of up to $15.0 million of Common Stock, but did not sell any shares during the year ended June 30, 2024[248][249]. Accounting and Valuation - The company has recorded a full valuation allowance against its net deferred tax asset, resulting in no income tax expense for the years ended June 30, 2024, and 2023[237]. - The company applies significant estimates and assumptions in preparing financial statements, including useful lives and valuation of properties, plant, and equipment[251]. - Asset retirement obligations are estimated based on internal and external information, with costs inflated and discounted for future expenditures, impacting future results and liquidity[252]. - Derivative instruments are recorded at fair value, with changes recognized in earnings; subjective assumptions in valuation can lead to materially different results[253]. - Properties, plant, and equipment are recorded at historical cost, with depreciation based on estimated useful lives, which are reviewed annually[254]. - Share-based compensation is recognized based on fair value at grant date, with expenses recognized over the vesting period, utilizing the Black-Scholes model for stock options[255]. - New accounting pronouncements and requirements are discussed in the financial statements, impacting the company's accounting policies[256]. Future Plans and Agreements - The company selected Fluor Corporation as its EPC services provider for the FEL-2 engineering program, which is expected to be completed in early 2025[202]. - The company plans to progress FEL-2 and FEL-3 engineering, optimize well-field design, and pursue infrastructure capital expenditures over the next 12 months, requiring additional capital[245]. - The company submitted a proposal to the U.S. Department of Energy for a grant aimed at enhancing lithium extraction, which could improve project economics[220]. - The company has a minimum cash covenant of $7.5 million under the Amended and Restated Note Purchase Agreement, and failure to meet this could lead to an event of default[247].

Funding and Financial Strategy - 5E Advanced Materials raised $10 million through a $4 million common equity offering and $6 million in convertible notes to fund the first phase of commercial engineering and operations[4]. - 5E is pursuing federal funding applications, including a loan-backed guarantee of up to $285 million from the U.S. Export-Import Bank for the Phase 1 commercial plant[15]. - The company has submitted funding requests totaling approximately $55 million, including a $20 million appropriations request for domestic boric acid production and up to $35 million for engineering work and scalability[40]. - The company has applied for significant grant funding from the DOE and DoD, which could be very impactful for capital expenditures[36]. Production and Operations - Current production rate at the small-scale facility is 1 short ton per day, allowing for liquidity to complete engineering and optimize costs while progressing customer qualifications[7]. - The company is currently producing 1 ton of boric acid per day, which is deemed sufficient for customer qualification programs and allows for future customer onboarding[26]. - Operating costs for the small-scale facility are primarily driven by fixed costs due to 24/7 operations, with variable costs including hydrochloric acid, LNG, and lime[27]. - The company aims to complete the first phase of engineering by December 2024 or January 2025, with a refresh of the technical report expected in early 2025[4][19]. Customer Engagement and Market Demand - The customer qualification program has been launched, with initial samples sent to two specialty glass producers and two additional prospects in the energy transition and military defense sectors[11]. - 5E has received positive feedback from initial customer samples, indicating strong demand and interest in securing a domestic source of boric acid[12]. - The company is in constant dialogue with customers to refine testing processes and timelines for product integration[43]. Technology and Process Optimization - The company is implementing chilled crystallization, which is expected to reduce natural gas consumption by 60% compared to evaporative crystallization, leading to lower operational costs[9]. - The company is focused on optimizing lithium extraction processes to minimize costs while maximizing recovery rates[33]. - The company is evaluating lithium recovery methods, with test samples showing lithium concentrations between 40 ppm and 60 ppm, indicating potential for economic viability[32]. Strategic Partnerships and Future Plans - The company is exploring partnerships for byproducts, including lithium chloride and calcium chloride, to enhance project economics[10]. - There is a focus on exploring partnership opportunities with existing producers and licensing existing technology packages to improve project economics[46]. - The company aims to become a leading producer of boric acid and lithium globally, with a strategy for modular expansion over the coming years[47]. Resource Assessment and Market Pricing - The small-scale facility achieved head grades of 5.5% to 6% boric acid in solution, equating to approximately 10,000 ppms of boron, demonstrating a world-class resource[6]. - Spot pricing for boric acid is currently in the range of USD 1,100 to USD 1,250 per ton, as reported by Fastmarkets[22]. - The company is progressing well with its boric acid side and is currently assessing the calcium stream as part of its FEL-2 engineering program[45]. Regulatory and Funding Opportunities - Being added to the USGS list of critical materials could unlock additional funding opportunities from the Department of Energy and Department of Defense[38].