Business
Electra Battery Materials Reports Q2 2023 Results and Provides Update on Cobalt Refinery Project and Black Mass Recycling Trial
TORONTO / Aug 17, 2023 / Business Wire / Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) today reported its finan
About this update from Electra Battery Materials Corp
[{"type":"text","content":"TORONTO / Aug 17, 2023 / Business Wire / Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V: ELBM) (“Electra” or the “Company”) today reported its financial results for the three- and six-month periods ended June 30, 2023, and provided an update on the commissioning of its cobalt refinery and its black mass recycling trial. All amounts are in Canadian currency unless otherwise stated. “Our recent efforts have been primarily focused on strengthening our balance sheet and updating our refinery project and black mass economics,” said Trent Mell, Electra’s CEO. “With completion of our re-baseline engineering report, scoping study, and recent equity financing, which raised $21.5 million in gross proceeds, now behind us, we will accelerate our black mass recycling strategy. This will entail building continuous operations at our refinery complex capable of processing up to 2,500 tonnes of black mass material per year and advancing our joint venture with Three Fires to process lithium-ion battery scrap in a primary recycling facility in Ontario.” Mr. Mell added, “Over the longer term, we remain committed to completing our cobalt sulfate refinery project in Ontario, supplying battery grade material to LG Energy Solution and other customers, and advancing plans for a second refinery in Bécancour, Quebec.” ELECTRA Q2 2023 HIGHLIGHTS AND DEVELOPMENTS Net income for the period was $12.0 million or $0.33 per share. The totals were driven by a gain of $14.4 million of fair value adjustments relating to the 2028 Notes and unrealized derivative financial liability gain. Operating loss for Q2 2023 was $4.5 million, up from $3.9 million for Q2 2022. The increase was driven by higher compensation costs due to more staff and higher legal and professional fees, and partially offset by lower exploration costs for Iron Creek. Held cash and marketable securities of $7.4 million as at June 30, 2023, down from $12.9 million as at March 31, 2022. The decline was primarily driven by capital costs related to the construction of the cobalt refinery project and costs related to the Company’s black mass trial. Electra’s cash balance at the end of Q2 2023 does not include the remaining $5.1 million of government investments expected to be received. Subsequent to quarter end, Electra completed an equity financing, generating gross proceeds of $21.5 millio...