Westwater Resources(US:WWR)2020-02-18 21:49Financial Data and Key Metrics Changes - For the fiscal year 2019, net cash used in operating activities was $10 million, a decrease from $11.6 million in 2018, primarily due to reduced mineral property and general administrative expenses [8][11] - The consolidated net loss for 2019 was $10.4 million, significantly lower than the $35.7 million loss in 2018, attributed to an $18 million impairment charge in 2018 related to uranium assets [11] - The company's cash balance was $1.9 million at December 31, 2019, and $1.6 million as of February 12, 2020, supported by financial instruments [12] Business Line Data and Key Metrics Changes - Mineral property expenses decreased by approximately $700,000 in 2019 compared to 2018, mainly due to reduced reclamation activities and operational activities at the Temrezli Project [9][10] - General administrative expenses also decreased by approximately $900,000 year-over-year, driven by reductions in executive compensation and consulting expenses [11] Market Data and Key Metrics Changes - The U.S. is currently 100% import dependent for graphite, with global production largely controlled by China, highlighting the strategic importance of domestic production [17] - The market price for vanadium is currently $6.80 per pound, with expected demand growth due to increased steel market needs and electrical storage systems [31] Company Strategy and Development Direction - The company aims to position itself as a leading graphite supplier in the U.S. through its Coosa Graphite Project, which is expected to accelerate cash flow generation and contract securing [15][16] - A long-term purchase agreement with a supplier of natural flake graphite concentrate allows the company to process battery-grade products before the Coosa mine is operational [19][21] - The company is also focusing on developing its lithium and uranium projects, with a strategic emphasis on diversifying its asset portfolio [35][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's asset diversification strategy and the potential for significant upside in the long term [7] - The impact of the coronavirus on supply chains was acknowledged, emphasizing the importance of U.S.-based production to mitigate such disruptions [66] Other Important Information - The company has engaged Dorfner Anzaplan to assist in developing its pilot plant for graphite purification and battery-grade product production [23][24] - The anticipated capital expenditure for the Coosa Graphite Project is projected at $53.4 million by 2022, with expectations for positive cash flow in the same year [34] Q&A Session Summary Question: Timeline for the pilot plant completion and processing of concentrate - The pilot plant is expected to process 20 tons of material before the end of 2020 [50] Question: Customer requests for bulk samples - The processed material will be used for fulfilling customer requests for testing purposes [51] Question: Modifications made by Dorfner Anzaplan - Dorfner is scaling up lab processes to pilot scale, focusing on efficiency and purification methods [52][53] Question: Market interest in DEXDG product - DEXDG is targeted towards various battery types and can enhance performance in lithium-ion batteries [55][56] Question: Impact of coronavirus on the company - The coronavirus has disrupted the supply chain for graphite, highlighting the need for U.S.-based production [66]