Financial Data and Key Metrics Changes - For the full year 2025, the company achieved revenue of $448.7 million, a gross profit of $117.5 million, and a net income of $77.8 million, indicating a $6.7 million or 1.5% increase in revenue compared to 2024 [7][16] - The LEU segment generated $346.2 million in 2025, relatively flat compared to $349.9 million in 2024, while uranium revenue decreased by 54% year-over-year to $55.6 million [16][17] - SWU revenue increased by 21% year-over-year, amounting to $51.9 million, driven by a 23% increase in the volume of SWU sold [16][17] - The total company backlog stood at $3.8 billion as of December 31, 2025, with the LEU segment backlog approximately $2.9 billion [19] Business Line Data and Key Metrics Changes - The technical solutions segment delivered $102.5 million in 2025, an increase of $10.4 million or 11% over 2024 levels, primarily due to a $10.5 million increase in revenue from the HALEU operations contract [17] - The LEU segment's gross profit increased by $17.6 million or roughly 19% to $111.5 million in 2025, driven by an increase in SWU sales volume and margin [17] - The technical solutions segment's gross profit decreased by $11.6 million or 66% to $6 million due to increased costs under the HALEU operations contract [18] Market Data and Key Metrics Changes - Near-term domestic LEU demand is set to increase by approximately 6.5 million SWUs due to Russia exiting the market and additional demand from restarts and new reactors [9] - The LEU pricing curve has experienced a 24% compound annual growth rate from 2019 to 2025, indicating a constrained market and pent-up demand [9] Company Strategy and Development Direction - The company plans to build both LEU and HALEU capacity, signaling readiness to meet future enrichment needs and addressing the projected gap between supply and demand [24] - The company is pursuing additional low-cost capital sources, including national security-related funding and potential foreign direct investments [22] - The company aims to capitalize on its first mover advantage in the global HALEU market and is actively engaging with hyperscalers for future agreements [25] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of execution and continuous improvement in reducing unit costs and lead times as the company embarks on manufacturing centrifuges [28] - The company anticipates that demand for LEU and HALEU will continue to grow, particularly as advanced reactors come online and the market tightens [52] - Management expressed confidence in the company's ability to meet its commitments and capitalize on the opportunities presented by the $900 million HALEU Enrichment Award [10][21] Other Important Information - The company ended 2025 with an unrestricted cash balance of approximately $2 billion, positioning it well for future capital needs [20] - The company is expected to provide financial guidance for 2026, projecting total revenue of $425 million to $475 million [14][22] Q&A Session Summary Question: Timeline for improving the 42-month forecast - Management emphasized the importance of execution and continuous improvement to reduce lead times and costs, with dedicated resources working on this initiative [28][29] Question: Commercialization capacity ramp timeline - Management indicated that the backlog of LEU commitments is crucial, and they are progressing towards fulfilling these commitments [34] Question: CapEx guidance and linearity throughout the year - Management noted that the initial year of CapEx guidance includes long lead procurement and is not indicative of future linear spending [41][42] Question: Achieving End-of-a-Kind cost - Management clarified that the End-of-a-Kind cost will be achieved before reaching 3 million SWUs, which is a significant milestone for the company [46][47] Question: Government discussions on Russian imports cutoff - Management reported strong demand stacking up towards the end of the decade but did not provide specific updates on government discussions regarding the cutoff [51][52] Question: Contract dynamics for long-term supply arrangements - Management acknowledged the challenges faced due to shipping delays but expressed confidence in the contracted supply from foreign sources [57] Question: Milestones to de-risk the timeline for initial enrichment capacity - Management is actively working on supply chain configurations and partnerships to ensure timely production and meet demand [60][61] Question: HALEU production target and sourcing strategy - Management confirmed the intention to maximize both LEU and HALEU capacity and optimize contracts to meet customer needs [96][97]

Core Viewpoint - The market for basic metals is experiencing significant divergence, with copper and zinc showing strong performance while aluminum, lead, and tin are under pressure, influenced by macroeconomic sentiment and fundamental factors [1][6]. Group 1: Copper and Zinc Performance - Copper prices surged by 1,820 yuan to an average of 104,600 yuan/ton, driven by strong supply-demand gap expectations, with low global inventories and increased demand from sectors like energy transition and electric vehicles [1]. - Zinc prices increased by 510 yuan to an average of 25,820 yuan/ton, supported by concerns over supply due to energy costs in Europe and seasonal maintenance in domestic mines, alongside pre-holiday stocking by downstream users [2]. Group 2: Aluminum, Lead, and Tin Trends - Aluminum prices slightly decreased by 200 yuan to an average of 24,660 yuan/ton, with a relatively stable supply-demand structure, but traditional consumption in construction remains weak, limiting upward momentum [2]. - Tin prices plummeted by 11,750 yuan to an average of 423,750 yuan/ton, attributed to profit-taking after previous overestimation of demand from AI and semiconductors, alongside reduced purchasing activity before the holiday [3]. - Lead prices fell by 150 yuan to an average of 16,850 yuan/ton, reflecting a weak supply-demand balance, with stable recycled lead production and stagnant demand from traditional battery sectors [4]. Group 3: Nickel Market Dynamics - Nickel prices fluctuated downwards, decreasing by 2,050 yuan to an average of 145,850 yuan/ton, with a long-term oversupply situation due to increased production in Indonesia, despite some demand from electric vehicle batteries [5]. Group 4: Macro Sentiment and Market Overview - Market sentiment is influenced by external factors, with a weak US dollar providing support for metals priced in RMB, while concerns over tech sector capital expenditures have affected certain metal prices [6]. - The upcoming Chinese New Year is leading to reduced physical procurement activities, shifting market focus from fundamentals to macro sentiment and capital dynamics, with a notable divergence in metal performance [6].