5E Advanced Materials Provides CAPEX and OPEX Optimization Update With Continued Production Progress

Core Viewpoint - The company is making significant progress towards steady state production of boric acid and has identified opportunities for capital expenditure (CAPEX) and operational expenditure (OPEX) optimization, with a focus on the mine plan, process, and byproduct mix [12]. Production and Customer Qualification - The company aims to ramp production rates to three tons per day, with the next phase of customer qualification targeted for Fall 2024, requiring up to 100 tons of boric acid for testing [3][12]. - Initial production of commercial-grade boric acid began in April 2024, with the company successfully refining its process to meet customer specifications within 60 days [13][14]. Technical and Engineering Developments - The FEL2 engineering program is prioritized, with targeted completion in early 2025, including a capital estimate of +/- 25% for a facility producing 90,000 short tons per annum [1]. - The current technical report summary assumes a head grade of 7.0%, with actual head grades consistently ranging between 5.5% and 6.0%, attributed to higher mining temperatures [4][5]. Byproducts and Resource Management - The company anticipates producing calcium-based byproducts, including gypsum, and is assessing other value-added byproducts such as calcium chloride and magnesium hydroxide, which are expected to reduce OPEX [6]. - The company’s large domestic boron and lithium resource in Southern California is designated as Critical Infrastructure, supporting its strategy to become a vertically integrated supplier of boron and lithium products [7].