Westwater Resources, Inc (NASDAQ:WWR) Q3 2018 Earnings Conference Call Transcript
Nov 08, 2018 • 11:00 am ET
Welcome to the Westwater Resources Inc. Third Quarter 2018 Results and Business Update Conference Call.
As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. (Operator Instructions)
I'd now like to turn the conference over to Christopher Jones, President and CEO. Please go ahead, Sir.
Welcome to the Westwater Resources' third quarter results conference call. With me here in our Centennial Headquarters is Jeff Vigil our CFO and Vice President of Finance and with us by phone is Dain McCoig, our Vice President of Operations.
(Forward-Looking Cautionary Statements)
With that please turn to Slide 5. 2018 has been a very active year for Westwater. One in which we completed the Alabama Graphite acquisition and released our business plan to unlock shareholder value.
These efforts are backed by a team, that over the last 40 plus years have operated mining, processing and manufacturing facilities ranging in size from small to more than a $1 billion of revenue.
We continue to make progress on enacting our plant. Our Pilot plant operations are scheduled for 2019. The plant start-up and initial operations will utilize purchased graphite feedstock, bringing forward revenues and cash flow overtime.
The first revenues from the plant are expected in 2020 with positive cash flows for the graphite business expected in 2021. We have over two dozen non-disclosure agreements in place with potential suppliers and customers for battery grade graphite materials at this time.
We announced that we successfully produced more than four kilograms of purified micronized graphite, with quality confirmed by an independent lab, this is huge because it confirms that we have the ability to produce battery grade graphite product in the United States, which makes our Coosa Project that much more attractive to customers and suppliers.
Our advance battery products have been produced in sizes from five to 45 microns making it compatible with a wide variety of battery types given the electrical performance it has demonstrated. This is the first of three battery ready graphite products we intend to manufacture.
We also announced the addition of Metpro and Polaris to our technical services base. Metpro is helping us in the development of graphite purification and concentrate enhancement process. In fact, A port with the Coosa Graphite Projects prior owners which we believe brings a lot of value to the project.
We engaged Polaris as an independent lab to perform critical conductivity testing of the materials from Coosa as part of the customer prequalification program which, is an important part of gaining customer acceptance and commercialization. We have already discussed this relationships with several potential customers and the response has been more than gratifying very excited as we are.
We also added Carly Anderson to our Board of Directors. She brings a wealth of experience in the mining industry and the investment community, both of which will be critical assets to Westwater.
We have strengthened our balance sheet by completing a registered