Westwater Resources, Inc (NASDAQ:WWR) Q2 2019 Earnings Conference Call Transcript

Aug 08, 2019 • 11:00 am ET

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Westwater Resources, Inc (NASDAQ:WWR) Q2 2019 Earnings Conference Call Transcript

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Q & A
Operator
Operator

Thank you. We'll now begin the question-and-answer session. [Operator Instructions] Our first question comes from Debra Fiakas of Crystal Equity Research.

Analyst
Debra Fiakas

Thank you. And thank you for taking my questions. Congratulations, of course on progress with a -- battery grade graphite customer. And actually it's going to be the focus of my first question. I wondered if you could tell us a little bit more about where this metric ton is going to come from? Is getting the production of that -- that potential order for testing materials dependent on getting the pilot plant completed or do you have other means by which you can produce those test quantities?

Executive
Christopher Jones

Well, thanks for your question Debra, and good day to you. As we previously shown, we're able to produce materials outside of a pilot plant in quantities for test. And this metric ton has no exception. We'll be able to produce that on a contracted basis using the very same processes we'll use in our pilot plan.

Analyst
Debra Fiakas

Okay, excellent. And then maybe just a little bit more about that pilot plant you mentioned several times in your prepared remarks. What are the -- what are the next steps in order to get it up and running sometime next year? What do you have to do next?

Executive
Christopher Jones

Debra, I'd like to pass that question on to Dain McCoig, our VP Ops if I could.

Analyst
Debra Fiakas

Thanks, Dain.

Executive
Dain McCoig

Hello, Debra. Thank you for the question. So the next step in the pilot project is we are working on engineering and we are refining the process. So in that step you've got to define the facility, you've got to define the equipment, and the sizing and of course the location of everything there. So, we are starting the engineering phase right now and then we will move towards either building our own facility or having it operated through a contractor. But at this moment, we are searching different options as far as that goes.

Analyst
Debra Fiakas

Okay. Alright, thank you. And then just another one more question in regard to the battery graphite materials. There had previously been an announcement regarding battery producer that was looking closely at the PMG product. And I noted also that your slide presentation actually indicated there's four potential customers that are currently testing the graphite. Is that previously announced, interested party different from the party that you're talking about today? And I realize you can't name names and you have to be very circumspect to preserve your customer relationship. But if you just could kind of differentiate the two or confirm the two as being one.

Executive
Dain McCoig

Debra, let me confirm it in this way. In order to get to this step, we had to work with somebody for quite awhile. So, it's -- I think it's logical to assume that this party is one of those parties with whom we've been working for quite a while.

Analyst
Debra Fiakas

Okay. But not necessarily the one that had been previously announced?

Executive
Dain McCoig

We didn't have any specific