Business
Westwater Resources Announces Optimized Business Plan for Graphite Battery Materials Opportunity and Appoints Vice President of Marketing
CENTENNIAL, Colo., March 01, 2018 (GLOBE NEWSWIRE) -- Westwater Resources, Inc. (Nasdaq:WWR) (“WWR” or “Westwater”) is pleased to announce the completion of an
About this update from Westwater Resources, Inc.
[{"type":"text","content":" CENTENNIAL, Colo., March 01, 2018 (GLOBE NEWSWIRE) -- Westwater Resources, Inc. (Nasdaq:WWR) (“WWR” or “Westwater”) is pleased to announce the completion of an initial optimization study of Alabama Graphite Corp.’s Coosa Graphite Project and the development of an enhanced business plan for its advancement. WWR is in the process of acquiring Alabama Graphite Corp. (“AGC”), with the transaction expected to close during Q2 2018. WWR’s process of optimization is centered on both improvements to the economics and project risk reduction. This study has further de-risked the project, as well as improved the economics of the project over the near term. Results of the study include: Economic Improvements to the Coosa Project compared to AGC’s 2015 Preliminary Economic Assessment: Reduced initial capital expenditures by almost one-third to $30.0 million from $43.4 million. Increased the net present value (discounted at 8%) to $490 million from $444 million. Advanced revenues to 2020 from 2022. Advanced positive cash flow to 2021 from 2022. Coosa Graphite Project Optimization and Risk Reduction Results: Proven graphite purification processes are utilized rather than lab scale, yet-to-be proven technologies. Mine permitting construction is no longer on the critical path for development because the processing plant initiates operations utilizing low-cost purchased graphite concentrate feedstock. WWR estimates that mining operations can be deferred until 2026, with initial mine capital expenditures funded by internal cash flow. A more advantageous product mix will be utilized to better serve developing markets for battery materials. Staged introduction of advanced materials allows for more conservative product development and pre-qualification with customers. Processing will begin in 2020 with the production of Purified Micronized Graphite (“PMG”). Processing has been simplified and the sales strategy simplified as bringing PMG to markets is quicker with acceptable profit margins. This product is a conductivity enhancement product used in the manufacture of lithium-ion, alkaline cell and lead-acid battery cathodes. High margin processing of Delaminated Expanded Graphite (“DEX-DG”) will begin in 2021. This product is also used in lithium-ion, alkaline cell and lead-acid cathodes. Pro...