Westwater Resources(WWR)2024-11-14 21:20Production and Offtake Agreements - Westwater expects the Kellyton Graphite Plant to produce 12,500 metric tons of CSPG annually in Phase I, primarily for lithium-ion batteries [88]. - The company has entered into a binding off-take agreement with Hiller Carbon for the supply of Graphite Fines, expecting production of approximately 14,000 metric tons per year [89]. - Under the Offtake Agreement with FCA, the anticipated annual offtake volume is 10,000 metric tons in 2026, increasing to 15,000 metric tons from 2027 to 2031 [90]. Construction and Financing - Westwater has reduced the estimated cost of Phase I construction to $245 million, a decrease of 9.6% from the previous estimate of $271 million [93]. - As of September 30, 2024, the company has incurred approximately $121.5 million in costs related to the construction of Phase I of the Kellyton Graphite Plant [95]. - The company expects to require approximately $124 million to complete construction of Phase I, with production anticipated to begin in 2026, subject to securing financing [95]. - The qualification line at the Kellyton Graphite Plant is expected to be operational in Q4 2024, producing approximately 1 metric ton of CSPG per day for customer qualification [96]. - Westwater has executed a term sheet for a $150 million secured debt facility to complete the construction of Phase I of the Kellyton Graphite Plant [99]. - The company is considering alternative financing sources, including project debt and joint ventures, to fund the construction of the Kellyton Graphite Plant [123]. Financial Performance - The net loss for the three months ended September 30, 2024, was $3.1 million, a decrease from a net loss of $3.5 million for the same period in 2023 [111]. - The net loss for the nine months ended September 30, 2024, was $9.8 million, compared to a net loss of $9.5 million for the same period in 2023 [112]. - Product development expenses for Q3 and the first nine months of 2024 were $0.3 million and $0.9 million, respectively, a decrease of $0.7 million and $1.8 million compared to the same periods in 2023 [113]. - Exploration expenses for Q3 and the first nine months of 2024 decreased by $0.1 million and $0.2 million, respectively, compared to the same periods in 2023 due to lower personnel costs [114]. - Net cash used in operating activities for the first nine months of 2024 was $3.8 million, a decrease of $8.4 million compared to the same period in 2023, primarily due to cash collected on sales of raw material inventory [117]. - Net cash used in investing activities decreased by $51.8 million for the first nine months of 2024 compared to the same period in 2023, attributed to lower capital expenditures [118]. - Net cash provided by financing activities decreased by $3.0 million for the first nine months of 2024 compared to the same period in 2023, due to fewer shares sold under the ATM Sales Agreement [119]. - As of September 30, 2024, the company's cash balance was approximately $4.5 million, with $7.8 million remaining available for future sales under the ATM Sales Agreement [122]. - The company has registered approximately 10.5 million shares of common stock available for future sales under the 2024 Lincoln Park PA, which allows for up to $30.0 million in purchases [122]. - The company expects to continue incurring losses until operations commence at the Kellyton Graphite Plant, relying on debt and equity financing for funding [123]. - The company has not recorded revenue from operations since 2009, and as of September 30, 2024, current liabilities exceeded current assets [120].