Financial Strategy and Funding - Li-Cycle's Cash Preservation Plan initiated on November 1, 2023, aims to reduce expenses and slow cash outflows by cutting staffing and curtailing operations at certain Spokes[29]. - The company expects to require significant funding before restarting the Rochester Hub project, with a loan facility of up to $475 million from the DOE[37]. - The company is exploring potential financing and strategic alternatives to enhance its operational capacity and financial health[13]. - Li-Cycle's reliance on the DOE Loan Facility, which provides up to $475 million, is crucial for its funding strategy[37]. - The company is facing challenges related to its history of losses and the need for additional funds to meet liquidity requirements[15]. - The company anticipates significant funding will be required before restarting the Rochester Hub project, with expectations to raise capital for its completion[13]. - The company is evaluating strategic alternatives and financing options to address its liquidity needs and operational challenges[15]. Operational Adjustments and Challenges - The company is re-evaluating its strategy for bringing on additional Spoke and Hub capacity in the near term due to current operational adjustments[13]. - Li-Cycle's operations may be impacted by the pause in construction of the Rochester Hub, affecting authorizations and permits[15]. - The company has paused operations at its Ontario Spoke in Kingston as of November 1, 2023, with work toward closure underway[71]. - The Company has paused operations at its New York Spoke as of November 7, 2024, and is also pausing the development of the Norway Spoke[67][68]. - The Company is undergoing a comprehensive review of the go-forward strategy for the Rochester Hub project, which is currently under development[81]. - The company is facing a history of losses and anticipates significant expenses for the foreseeable future, raising concerns about liquidity and capital requirements[15]. Market Outlook and Revenue Generation - Li-Cycle anticipates recognizing revenue from the sale of critical battery-grade materials, contributing to its future financial performance[13]. - The expected annual growth rate of the number of electric vehicles (EVs) is a key factor influencing Li-Cycle's market outlook[13]. - Li-Cycle's ability to attract new suppliers and secure feedstock is critical for meeting market demand for recycled materials[15]. - Li-Cycle's reliance on a limited number of customers for revenue generation poses a risk to its financial stability[15]. - Li-Cycle's revenues from the Rochester Hub are expected to be significantly derived from a limited number of customers, indicating potential revenue concentration risk[15]. - The company projects a significant annual growth rate in the number of electric vehicles (EVs), impacting the demand for recycled materials[13]. Project Development and Strategic Initiatives - The company plans to develop a Hub facility in Portovesme, Italy, in collaboration with Glencore to produce critical battery-grade materials[75]. - The company has established a Special Committee of independent directors to oversee the strategic review of its projects[81]. - The company is in the process of obtaining exclusive rights to use its trademarks and service marks in the countries where it operates[86]. - The Glencore Unsecured Convertible Note has a principal amount of $200.0 million due on May 31, 2027[45]. - The Glencore Senior Secured Convertible Note has an original aggregate principal amount of $75.0 million, with a conversion price adjusted to $4.24 per common share[43]. - The Company has issued KSP Convertible Notes with a principal amount of $100.0 million and an original conversion price of $13.43 per common share, adjusted to $107.44 per common share on the Share Consolidation date[52]. - The Share Consolidation will take effect on June 3, 2024, at a ratio of one post-consolidation common share for every eight pre-consolidation common shares[79]. - The Company completed an underwritten public offering for gross proceeds of approximately $15.0 million on January 16, 2025, with an additional $2.25 million from an over-allotment option exercised on January 27, 2025[83]. Operational Expansion - The company commenced operations at its Germany Spoke in Magdeburg on August 1, 2023[40]. - The Company is focused on achieving economies of scale in recycling and resource recovery through its centralized Hub facilities[48].

Li-Cycle Reports Full Year 2024 Financial Results Highlights TORONTO, ONTARIO (March 31, 2025) – Li-Cycle Holdings Corp. (OTCQX: LICYF) ("Li-Cycle" or the "Company"), a leading global lithium-ion battery resource recovery company, today announced financial results for its fiscal year ended December 31, 2024. Ajay Kochhar, Li-Cycle's President & CEO, commented: "In 2024, we advanced key priorities for the Company, including closing our $475 million loan facility with the U.S. Department of Energy to help fin ...

Li-Cycle Holdings Corp (NYSE:LICY) Q3 2024 Results Conference Call November 7, 2024 4:30 PM ET Company Participants Louie Diaz - Vice President, Investor Relations Ajay Kochhar - President and Chief Executive Officer Craig Cunningham - Chief Financial Officer Operator Hello, everyone, and welcome to the Li-Cycle Holdings Corp. Q3 2024 Financial Results. My name is Charlie, and I'll be coordinating the call today. [Operator Instructions] I will now hand over to our host, Louie Diaz of Li-Cycle, to begin. Lou ...

Li-Cycle Reports Third Quarter 2024 Operational and Financial Results, Including Strong Revenue Growth and Lower Costs Highlights • Closed an upsized $475-million loan facility with the U.S. Department of Energy ("DOE") to support development of the Company's Rochester Hub project; • Completed Rochester Hub internal technical review under the proposed mixed hydroxide precipitate ("MHP") scope and expects annual production of up to approximately 8,250 tonnes of lithium carbonate and up to approximately 72,00 ...

Financial Performance - Total revenue for the three months ended September 30, 2024, was $8.4 million, a 78.7% increase from $4.7 million in the same period of 2023[43]. - Product revenue increased to $4.4 million for the three months ended September 30, 2024, compared to $3.5 million in the same period of 2023, representing a 25.7% growth[43]. - Recycling service revenue rose significantly to $4.0 million for the three months ended September 30, 2024, up from $1.2 million in the same period of 2023, marking a 233.3% increase[43]. - The net loss for the three months ended September 30, 2024, was $56.5 million, an improvement from a net loss of $30.7 million in the same period of 2023[43]. - The company reported a loss from operations of $25.2 million for the three months ended September 30, 2024, compared to a loss of $44.0 million in the same period of 2023, indicating a 42.5% reduction in operational losses[43]. - Total revenue for the nine months ended September 30, 2024, reached $21.0 million, compared to $11.9 million for the same period in 2023, marking a 76.5% increase[71]. - Net loss for the nine months ended September 30, 2024, was $88.4 million, compared to a net loss of $99.1 million for the same period in 2023, representing a 7% improvement[48]. Cash Flow and Liquidity - The company has initiated a cash preservation plan to reduce expenses and slow cash outflows, including staffing reductions and pausing production[15]. - Cash and cash equivalents decreased to $32.2 million as of September 30, 2024, from $70.6 million at December 31, 2023[45]. - The company’s accumulated deficit increased to $360.0 million as of September 30, 2024, compared to $271.6 million at December 31, 2023[45]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $92.5 million, slightly higher than $89.3 million for the same period in 2023[54]. - The company has paused construction on the Rochester Hub project pending a comprehensive review of its future strategy[59]. - The company initiated a Cash Preservation Plan, which includes reducing staffing and suspending development projects to enhance liquidity[62]. Debt and Financing - Li-Cycle has a definitive financing agreement with the U.S. Department of Energy for a loan facility of up to $475 million[17]. - The company entered into a private placement agreement to issue a senior secured convertible note for $75.0 million on March 25, 2024[56]. - The company is actively exploring additional financing options, including a loan facility of up to $475 million from the DOE[56]. - The principal amount of convertible notes increased from $208.1 million on December 31, 2023, to $300.3 million by September 30, 2024, reflecting a growth of approximately 44.2%[108]. - The company has guaranteed all obligations related to the Glencore Senior Secured Convertible Note through its subsidiaries, enhancing security for the debt[111]. Operations and Projects - Li-Cycle's operations at the Ontario Spoke were paused on November 1, 2023, as part of a cash preservation plan[15]. - The planned Rochester Hub project is currently under review, with construction paused[34]. - The company is focused on developing a joint project with Glencore to produce critical battery materials at the planned Portovesme Hub in Italy, although the feasibility study is currently paused[34]. - The company plans to curtail operations at its New York Spoke as part of its Spoke optimization initiatives[151]. - The Germany Spoke expansion plans have been deferred, with Line 2 capacity of 10,000 tonnes per year and ancillary capacity of up to 10,000 tonnes per year previously expected to be operational by the end of 2023[167]. - The France Spoke project, expected to have a main line recycling capacity of 10,000 tonnes per year, has been paused, with the timing being re-evaluated[168]. Assets and Liabilities - Total assets decreased to $870.6 million as of September 30, 2024, down from $886.0 million at December 31, 2023[45]. - Total liabilities increased to $575.3 million as of September 30, 2024, compared to $509.6 million at December 31, 2023[45]. - The company recorded a total of $132.6 million in accounts payable and accrued liabilities as of September 30, 2024, down from $152.1 million at the end of 2023, indicating a reduction of approximately 12.8%[98]. - The company’s accrued compensation increased to $6.8 million as of September 30, 2024, from $3.1 million at the end of 2023, marking an increase of approximately 119.4%[98]. Market and Industry Outlook - Li-Cycle's management estimates the global EV and hybrid market size based on internal and independent industry surveys, though these estimates involve assumptions and limitations[9]. - The long-term demand for EVs and hybrids in North America and Europe is expected to grow at a compound annual growth rate of approximately 21% from 2024 to 2030[157]. Legal and Regulatory Matters - The company is involved in ongoing litigation related to alleged misstatements and has reached a settlement regarding a lawsuit with Pike Conductor DEV 1, LLC[132][133]. - The arbitration proceedings initiated by MasTec seek recovery of $48.7 million related to the Rochester Hub project, with the company defending its interests[133]. - The company has paused construction on the Rochester Hub project as of October 23, 2023, due to uncertainties in litigation[128].

Li-Cycle Holdings Corp. (NYSE:LICY) Q2 2024 Earnings Conference Call August 8, 2024 8:30 AM ET Company Participants Louie Diaz - Vice President, Investor Relations Ajay Kochhar - President and Chief Executive Officer Craig Cunningham - Chief Financial Officer Conference Call Participants Doug Paul - LPL Financial Matthew O'Keefe - Cantor Fitzgerald Operator Good day. My name is Ashley, and I will be your conference operator today. At this time, I would like to welcome everyone to the Second Quarter 2024 Li- ...

Q2 2024 Earnings & Business Update Call Investor Presentation August 8, 2024 4 YET OR PRODUCT OF THE COLLECT THE FERRET THE LEAST THE STATUS THE PERSONAL CHILIFICAL CONTRACT A THE STATUS FOR THE Disclaimer FORWARD LOOKING STATEMENTS AND UNAUDITED RESULTS Certain statements contained in this presentation may be considered "forward-looking statements" within the meaning of the U.S. Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, Section 21 of the U ...

Li-Cycle Reports Second Quarter 2024 Operational and Financial Results, Including Record Quarterly Revenue Highlights • Continued to work closely with U.S. Department of Energy ("DOE") on key technical, financial and legal workstreams to advance towards definitive financing documentation for a loan for gross proceeds of up to $375 million; • Largest customer source of revenue in 1H 2024 was a leading U.S.-headquartered vertically integrated EV and battery manufacturer with a substantial global EV market sha ...

Facility Operations - Li-Cycle's Germany Spoke commenced operations on August 1, 2023[13] - The company's Arizona Spoke began operations on May 17, 2022[10] - Li-Cycle's Alabama Spoke started operations on October 13, 2022[9] - The company's New York Spoke has been operational since late 2020[18] - Li-Cycle's Ontario Spoke was paused on November 1, 2023, and has since been closed[18] - The company's planned Spoke in Moss, Norway, is currently paused[18] - The company paused construction on its Rochester Hub project pending a comprehensive review of its future strategy[36] - The company anticipates the closure of its Ontario Spoke and warehouse facility in Kingston in the coming months[38] Financial Performance - Total revenue for Q2 2024 increased to $8.4 million, up from $3.6 million in Q2 2023[24] - Net loss for Q2 2024 improved to $8.2 million, compared to $31.9 million in Q2 2023[24] - Net loss for the six months ended June 30, 2024, was $144.9 million[28] - Loss from operations for the six months ended June 30, 2024, was $71.1 million[33] - Product revenue for the three months ended June 30, 2024, was $5.2 million, compared to $3.1 million for the same period in 2023[44] - Recycling service revenue for the three months ended June 30, 2024, was $3.2 million, compared to $0.5 million for the same period in 2023[44] - Total revenue for the six months ended June 30, 2024, was $12.6 million, compared to $7.2 million for the same period in 2023[44] - The company reported a net loss of $8.2 million for the three months ended June 30, 2024, compared to a net loss of $32.0 million for the same period in 2023[96] - Basic and diluted loss per share was $0.36 for the three months ended June 30, 2024, compared to $1.45 for the same period in 2023[96] - Revenue for the three months ended June 30, 2024, was $8.4 million, with $7.2 million from the United States, $1.1 million from Germany, and $0.1 million from Canada[101] Financial Position - Cash and cash equivalents decreased to $57.0 million as of June 30, 2024, from $70.6 million at the end of 2023[26] - Total assets slightly increased to $899.9 million as of June 30, 2024, from $886.0 million at the end of 2023[26] - Convertible debt rose to $426.4 million as of June 30, 2024, up from $288.1 million at the end of 2023[26] - Total liabilities increased to $664.2 million as of June 30, 2024, from $509.6 million at the end of 2023[26] - Accumulated deficit grew to $416.5 million as of June 30, 2024, from $271.6 million at the end of 2023[26] - Property, plant, and equipment increased to $697.8 million as of June 30, 2024, from $668.8 million at the end of 2023[26] - Operating lease right-of-use assets rose to $89.9 million as of June 30, 2024, from $56.4 million at the end of 2023[26] - Total equity decreased to $235.7 million as of June 30, 2024, from $376.4 million at the end of 2023[26] - Total equity attributable to shareholders as of June 30, 2024, was $235.7 million[27] - Accumulated deficit as of June 30, 2024, was $416.5 million[27] - Restricted cash as of June 30, 2024, was $9.6 million[34] - Total inventories, net, as of June 30, 2024, were $9.1 million, compared to $9.6 million as of December 31, 2023[52] - Property, plant and equipment, net increased to $697.8 million as of June 30, 2024, up from $668.8 million as of December 31, 2023[53] - Construction in progress for the Rochester Hub reached $579.5 million as of June 30, 2024, up from $547.2 million as of December 31, 2023[53] - Accounts payable and accrued liabilities decreased to $136.0 million as of June 30, 2024, down from $152.1 million as of December 31, 2023[65] - Non-current assets as of June 30, 2024, totaled $795.6 million, with $682.7 million in the United States, $57.8 million in Canada, $29.6 million in Germany, and $25.5 million in other regions[101] Cash Flow and Financing - Net cash used in operating activities for the six months ended June 30, 2024, was $72.0 million[28] - Net cash used in investing activities for the six months ended June 30, 2024, was $15.4 million[28] - Proceeds from convertible debt for the six months ended June 30, 2024, were $75.0 million[28] - The company has financed operations through a $315.5 million private placement of common shares and a $75.0 million senior secured convertible note issued to Glencore plc[35] - Li-Cycle issued a senior secured convertible note with a principal amount of $75.0 million to Glencore on March 25, 2024[13] - The company recorded an expense of $6.0 million for workforce reduction in the six months ended June 30, 2024[68] - The company issued $75.0 million in convertible notes during the period[73] - The company accrued $9.2 million in interest expense from March 26, 2024, to June 30, 2024[73] - The Company issued Glencore Convertible Notes totaling $306.2 million as of June 30, 2024, including $116.6 million for the First A&R Glencore Note, $114.6 million for the Second A&R Glencore Note, and $75.0 million for the Glencore Senior Secured Convertible Note[77] - The company has $375.0 million in convertible debt principal and $240.9 million in convertible debt interest obligations as of June 30, 2024[95] Debt and Convertible Notes - Convertible debt rose to $426.4 million as of June 30, 2024, up from $288.1 million at the end of 2023[26] - KSP Convertible Notes principal at the end of June 30, 2024 is $126.5 million, up from $119.3 million at the beginning of the period[69] - The effective interest rate of the KSP Convertible Note after amendment on March 25, 2024 is 18.7%[69] - Total KSP Convertible Notes issued as of June 30, 2024 amount to $126.5 million, including $100 million initial note and $26.5 million in PIK notes[70] - The fair value of the compound embedded derivative upon issuance of the KSP Convertible Notes was $27.7 million, with $72.3 million allocated to the principal portion[72] - The conversion price for KSP Convertible Notes is $107.44 per share, with a forced conversion trigger at $139.68 per share for 20 consecutive days[70] - The KSP Convertible Notes can be redeemed at any time for 130% of the principal plus unpaid interest until maturity[71] - The embedded derivatives were valued using the Binomial Option Pricing Model with an expected stock price volatility of 71% as of June 30, 2024[72] - Glencore convertible debt increased to $318.5 million at the end of June 2024, up from $189.0 million at the end of December 2023[73] - The company recorded a debt extinguishment loss of $58.9 million due to the amendment of the Glencore Unsecured Convertible Note[73] - The Glencore Senior Secured Convertible Note was issued for $75 million with a maturity date of March 25, 2029[75] - The effective interest rate for the A&R Glencore Convertible Notes and Glencore Senior Secured Convertible Note is 20.6%[74] - The conversion feature at the end of the period increased to $145.5 million from $0.4 million at the beginning of the period[73] - The debt component at the end of the period decreased to $173.0 million from $188.6 million at the beginning of the period[73] - The fair value gain on conversion features from March 26, 2024, to June 30, 2024, was $(12.7) million[73] - The fair value of the embedded derivative liability for the Glencore Convertible Notes was $46.2 million upon issuance, with $153.8 million allocated to the host debt instrument, net of $1.3 million in transaction costs[79] - The Company recognized a fair value gain of $34.7 million and $10.9 million on embedded derivatives for the three and six months ended June 30, 2024, respectively[79] - The conversion price for the A&R Glencore Convertible Notes is adjusted to the lesser of a 30-Day VWAP plus a 25% premium or $79.60 per share[77] - The Glencore Senior Secured Convertible Note has a conversion price of $4.24 per share[77] - The Company is required to redeem a portion of the Glencore Senior Secured Convertible Note starting December 31, 2026, based on excess cash flow[77] - The embedded derivatives were valued using a risk-free interest rate ranging from 4.3% to 5.3% and expected stock price volatility of 71% as of June 30, 2024[79] Legal and Contractual Obligations - The company has contractual obligations totaling $991.5 million as of June 30, 2024, with $143.6 million due within less than 1 year, $197.7 million due in 1-3 years, $487.9 million due in 3-5 years, and $162.4 million due after 5 years[95] - The company is involved in arbitration proceedings with MasTec seeking recovery of $48.7 million related to the Rochester Hub project construction contract[94] - The company filed a lawsuit seeking damages of $39.0 million to $53.0 million against Pike Conductor DEV 1, LLC related to a leasing dispute[93] - The Company faced three shareholder lawsuits related to the pause in construction of the Rochester Hub project, with one federal securities class action dismissed on June 10, 2024[87][88] Workforce and Cost Management - The company paused production at its Ontario Spoke and reduced staffing as part of a cash preservation plan initiated on November 1, 2023[11] - The company reduced its workforce by approximately 17% as part of its Cash Preservation Plan, primarily at the corporate level[38] - The company recorded an expense of $6.0 million for workforce reduction in the six months ended June 30, 2024[68] Leases and Commitments - Total lease cost for the six months ended June 30, 2024 was $7.3 million, compared to $2.7 million for the same period in 2023[55] - Recognition of ROU assets and lease liabilities for new operating leases was $36.8 million for the six months ended June 30, 2024[56] - Total future minimum lease payments for operating leases as of June 30, 2024 were $225.2 million[57] - The weighted average remaining lease term for premises and equipment operating leases increased to 20.50 years as of June 30, 2024[58] - The company has $7.4 million in committed purchase orders or agreements for equipment and services as of June 30, 2024, compared to $8.3 million as of December 31, 2023[95] Shareholder and Equity Information - The Company consolidated its common shares at a ratio of 1 post-consolidation share for every 8 pre-consolidation shares, effective June 3, 2024[83] - Common shares and additional paid-in capital outstanding increased from $651.6 million as of March 31, 2024, to $652.5 million as of June 30, 2024[81] Risk and Market Exposure - The company is exposed to currency risk as its cash is mainly denominated in U.S. dollars, while operations require Canadian dollars and other currencies[180] - The company has variable interest rate debt with an interest rate floor and cap, but does not expect changes in interest rates to have a material impact on its business[181] - The company deposits the majority of its cash with large Canadian and U.S. financial institutions above a minimum credit rating, minimizing credit risk associated with cash[182] - The company's revenue and accounts receivable primarily come from large multinational OEMs and dominant market participants[182] - The company is exposed to commodity price movements, particularly cobalt and nickel, with revenues sensitive to market prices of these metals[183] - As of June 30, 2024, the market price per tonne for cobalt was $24,912 and for nickel was $16,955[184] - As of December 31, 2023, the market price per tonne for cobalt was $28,660 and for nickel was $16,250[184] - The company's capital structure consists of net cash and equity, with no externally imposed capital requirements as of June 30, 2024[185]

Li-Cycle Holdings Corp. (NYSE:LICY) Q1 2024 Earnings Conference Call May 10, 2024 8:30 AM ET Louie Diaz - Vice President of Corporate Affairs Ajay Kochhar - Co-Founder, President and Chief Executive Officer Craig Cunningham - Interim Chief Financial Officer Jeffrey Rossetti - TD Cowen Brian Dobson - Chardan Capital Markets Matthew O'Keefe - Cantor Fitzgerald Good day. My name is Madison, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quarter 2024 Li ...