UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to (Exact name of Registrant as specified in its Charter) | Delaware | 87-3426517 | | --- | --- | | (State or other jurisdiction of | (I.R.S. Employer | | inc ...

5E Advanced Materials, Inc. (FEAM) has stated that its operations team successfully commissioned the 5E Boron Americas Complex and began full commercial operations. The company started well-field injection on Jan 1, 2024.The 5E Boron Americas Complex is operating after completing its commissioning.  External engineering contractors completed the final electrical work on Mar 15. The total amount of Portable Liquid Storage (“PLS”) collected since mining began is more than 50,000 gallons. The inductively coupl ...

HESPERIA, Calif., April 02, 2024 (GLOBE NEWSWIRE) -- 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 Complex, today announced the Company's operations team has successfully commissioned the facility and has launched full commercial operations. The Company began well-field injection on January 1st, 2024. Key Highlights: 5E Boron Americas Complex is fully commissioned a ...

Measurable progress continues towards near-term plant completion Company remains on track to commence commercial operations in CY Q2 2024 at the 5E Boron Americas Complex in California HESPERIA, Calif., Feb. 25, 2024 (GLOBE NEWSWIRE) -- 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 Complex, provided an update on mining operations and related activities as it moves closer ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2023 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) ha ...

HESPERIA, Calif., Feb. 05, 2024 (GLOBE NEWSWIRE) -- 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, articulated its support for the bipartisan effort in Congress to include boron in the U.S. Geologic Survey's (USGS) 2025 Critical Mineral List. On January 26th, Representatives Jay Obernolte (CA-23) and Jimmy Panetta (CA-19), along with eight other ...

HESPERIA, Calif., Jan. 30, 2024 (GLOBE NEWSWIRE) -- 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 Complex, today announced it has closed its previously announced second tranche of equity financing. The second closing included $7.75 million in new equity capital from 5ECAP, LLC. The Company previously closed $10 million on January 18th. The capital closed will be depl ...

Financial Performance - Project expenses decreased by $2.0 million or 56% to $1.583 million for the three months ended September 30, 2023, compared to $3.595 million in the same period of 2022[90] - General and administrative expenses increased by $1.2 million or 24% to $6.038 million for the three months ended September 30, 2023, compared to $4.886 million in the same period of 2022[92] - Interest income rose by 116% to $132,000 for the three months ended September 30, 2023, compared to $61,000 in the same period of 2022[90] - Interest expense increased by $1.0 million or 118% to $1.787 million for the three months ended September 30, 2023, compared to $821,000 in the same period of 2022[96] - Total costs and expenses decreased by $844,000 or 10% to $7.713 million for the three months ended September 30, 2023, compared to $8.557 million in the same period of 2022[90] - Net loss for the three months ended September 30, 2023, was $9.370 million, compared to a net income of $4.606 million in the same period of 2022, representing a change of $13.976 million[90] Cash Flow and Financing - For the three months ended September 30, 2023, the company used $6.9 million in cash for operating activities, a decrease of $0.9 million or 12% compared to the same period in 2022[98] - Cash used for investing activities was $1.6 million, a decrease of $3.5 million or 68% compared to the same period in 2022, primarily due to reduced spending on construction in progress related to the Small-Scale Facility[98] - As of September 30, 2023, the company had cash and cash equivalents of $11.8 million, down from $20.3 million as of June 30, 2023[99] - The company has relied on equity financing and hybrid equity and debt instruments since inception, as it has not generated revenues[99] - The company executed a $60 million private placement of senior secured convertible notes in August 2022 to fund the Small-Scale Facility and general corporate purposes[100] - The company expects available cash resources to be exhausted in the next six months, actively exploring financing options to avoid default under the Convertible Note[84] - The company has material short-term cash requirements including general and administrative expenses, construction costs for the Small-Scale Facility, and working capital needs[102] Operational Developments - The Small-Scale Facility construction is substantially complete, with only final electrical work pending before production can commence[82] - Step-Rate Testing was approved by the EPA, marking a significant step towards commencing boric acid and lithium carbonate extraction operations[81] - The company plans to achieve several milestones over the next 12 months that will require additional capital, and it is currently operating under a modified business plan until further financing is secured[101] - Purchase order commitments amounted to $6.8 million for construction works in progress, equipment, and technical reports[104] - The company is pursuing optimization of infrastructure capital expenditures for a larger-scale facility, including upgrades to water resources and power connections[103] - The company aims to become a global producer of boric acid, lithium carbonate, and gypsum, and is hiring team members to support these operational efforts[103]

Financial Data and Key Metrics - The company ended the quarter with a cash balance of $20.3 million as of June 30, 2023 [34] - Phase 1 development has an estimated capital requirement of roughly $389 million, with $37 million needed in the first year [32] - The 90,000 short tons of boric acid production and 1,100 short tons of lithium carbonate are expected to generate over $101 million of EBITDA annually, with EBITDA margins of over 62% [33] Business Line Data and Key Metrics - The Small Scale Boron Facility (SSBF) is nearing completion and is expected to produce 2,000 tons of boric acid initially, with plans to scale up production [72] - The company plans to produce 450,000 short tons of boric acid and 5,500 short tons of lithium carbonate when fully operational [26] - The SSBF is divided into five sections: Wellfield, Utilities, PLS, Boric Acid, and Gypsum, with the Wellfield, Utilities, and PLS ready to operate [46] Market Data and Key Metrics - The global boron market is expected to grow significantly, with 1.6 million tons of new demand anticipated over the next several years [56] - Approximately 65% of global boron supply is controlled by a Turkish government-owned entity, creating an opportunity for the company to become a primary domestic U.S. supplier [56] - The company is positioned to address the widening gap between boric acid supply and demand, with no significant new projects expected to come online soon [57] Company Strategy and Industry Competition - The company is focused on advancing the 5E Boron Americas project, which is the only permitted boron deposit with a commercially viable resource expected to come online in the next five to seven years [29] - The company is pursuing a phased execution strategy over three modules, allowing for scalable production in a modular and de-risked manner [30] - The company is engaging with government agencies, including the Department of Defense and the Department of Energy, to secure funding and partnerships [52][64] Management Commentary on Operating Environment and Future Outlook - The company is awaiting final clearance from the EPA to begin operations, with step rate testing being the last remaining condition for the injection approval process [41] - The company is actively engaging in conversations to pursue additional capital from investment partners and other funding sources [50] - The company expects to receive authorization to inject acid, which will allow them to commence mining and begin producing boric acid, lithium carbonate, and gypsum [47] Other Important Information - The company has a 31-year mine life and future exploration targets to expand production [30] - The company has taken steps to reduce overhead costs, with a goal of maintaining a G&A burn rate of about $1.5 million per month [109] - The company has a number of commercial LOIs in place and is in ongoing discussions with potential offtake customers [62] Q&A Session Summary Question: Pricing assumptions and market deficit timing [81] - The company expects first full-year production pricing to be around $1,700 per ton, with prices expected to ramp up due to supply deficits [99] - The market is already in a deficit position, with supply being fully spoken for in recent quarters [3] Question: SSBF output allocation and product qualification timeline [84] - Initial SSBF output will be used for product qualification, with full commercial qualification expected to take three to six months [73] - Once qualified, the company plans to sell product into the spot market and potentially service offtake customers early [72] Question: Government financing timing and potential funding [119] - The Department of Defense (DOD) funding process is quicker, with potential funding being written into an appropriations bill [91] - The Department of Energy's Loan Programs Office (LPO) process is more detailed and could take around 12 months or longer, but offers significant capital [92] Question: Customer discussions and supply diversification [102] - Customers are increasingly looking to diversify their supply base due to product quality issues and the risk of relying on a single supplier [102] - The company is exploring opportunities to sell ahead and secure prepayments from customers [103] Question: EPA permit clarification [104] - The company has a permit in place but needs to meet certain conditions, including step rate testing, before receiving full authorization to inject acid [105] Question: SSBF CapEx details [111] - The incremental $5 million in CapEx for the SSBF will go towards finalizing piping, electrical work, and leased equipment for the boric acid and gypsum sections [95] Question: SSBF production allocation [97] - A portion of the initial 9,000 short tons of boric acid production will be used for quality testing, with the remainder available for sales once qualification is complete [113]

Financial Performance - For the year ended June 30, 2023, total costs and expenses decreased by 46% to $36.7 million from $67.8 million in 2022[343]. - Net loss for the year ended June 30, 2023, was $30.62 million, a 54% improvement from a net loss of $66.71 million in 2022[343]. Expenses Breakdown - Project expenses decreased by 23% to $9.99 million in 2023, primarily due to reduced activity related to construction preparation[343][344]. - General and administrative expenses fell by 54% to $25.37 million, mainly due to a $26.7 million reduction in share-based compensation costs[346]. - Research and development expenses increased by 97% to $262 thousand, attributed to a new agreement with Boston College[343][347]. Cash Flow and Investments - Cash and cash equivalents as of June 30, 2023, were $20.3 million, down from $31.1 million in 2022[355]. - Net cash used in operating activities increased by 7% to $30.70 million in 2023 compared to $28.62 million in 2022[357]. - Net cash used in investing activities surged by 245% to $39.31 million, primarily due to the commencement of construction of the Small-Scale Facility (SSF)[357][359]. - The company executed a $60 million private placement of senior secured Convertible Notes in August 2022 to fund the SSF and other corporate purposes[356]. - As of June 30, 2023, the company had purchase order commitments of $7.3 million for construction works in progress and related activities[364]. Asset Management and Obligations - The company estimates asset retirement obligations based on internally generated and external information, with costs inflated and discounted for future expenditures[367]. - The company reviews its assumptions and estimates of future development and abandonment costs annually, which could significantly impact future operations or liquidity[368]. - Changes in cost estimates, discount rates, and inflation could materially affect the company's future results of operations[368]. Valuation and Compensation - During the year ended June 30, 2023, the company recognized a derivative related to the Convertible Note, utilizing a binomial lattice model for valuation[369]. - The company applies a fair value-based method for stock-based compensation, recognizing expenses over the vesting period with an increase in additional paid-in capital[370]. - The company utilizes the Black-Scholes option-pricing model for measuring the fair value of stock options[370]. Strategic Focus - The company is focused on optimizing well-field design to reduce future mining capital and operational expenditures through advanced drilling techniques[367]. - The company plans to further define its advanced materials strategy, including repurposing its Small-Scale Facility for boron advanced materials production[367]. - The company is committed to hiring additional team members to support its operations as a global producer of boric acid, lithium carbonate, and gypsum[367]. Accounting and Reporting - New accounting requirements are discussed in the company's consolidated financial statements[371].