Aqua Metals, Inc. · NASDAQ:AQMS
Aqua Metals — Q1 2017 Earnings Presentation
15 slides from Aqua Metals's earnings presentation, May 9, 2017
Slide 1: 2017 Q1 Earnings Call
May 9, 2017 NASDAQ: AQMS 2017 Q1 Earnings Call
Slide 2: Safe Harbor
Safe Harbor NASDAQ: AQMS This document contains forward - looking statements concerning Aqua Metals, Inc., the lead - acid battery recycling industry, the intended benefits of its agreements with Johnson Controls and Interstate Batteries, the future of lead - acid battery recycling via traditional s
Slide 3: Strategic relationships helped de-risk our start-up
Strategic relationships helped de - risk our start - up……. • AquaRefinery 1 (McCarran, NV) operating and in revenue – Began production in Q1 – truckloads of feedstock crushed – Sales to strategic partner in Q2 – truckloads of product shipped – Ramping production to >120mT/day of lead by the end of 2
Slide 4: Agenda
Agenda • AquaRefinery 1 update • Planning for AquaRefineries 2 - 5 and Licensing roll - out • Ebonex acquisition • Financials • Summary NASDAQ: AQMS 4
Slide 5: Strategic partners brought scale and urgency
Strategic partners brought scale and urgency NASDAQ: AQMS Opportunity delivered through strategic relationships Lead Capacity ( mT /day) AquaRefining Modules needed Potential annual revenue Start Date AquaRefinery 1 120 - 160 16 - 32 $100 - 120 M /year Operational AquaRefinery 1 - 5 ~800 ~160 $500 -
Slide 6: AquaRefinery is running and we are scaling output
AquaRefinery 1 is running and we are scaling output • Started production in Q1 and sales in Q2 • Status – Breaking and separation: commissioned and operating – Aqua Preparation: process operating – adding capacity and streamlining operations – Aqua Refining: Module 1 operational, Modules 2 - 4 in -
Slide 7: Strategic partners significantly de-risked commissioning and ramp up
Strategic partners significantly de - risked commissioning and ramp up NASDAQ: AQMS 7 • Ramp up started with breaking and progressed in stages through down - stream processes • This naturally creates bottlenecks, imbalances and temporary excesses of process intermediates • Strategic partners helped
Slide 8: AquaRefinery 1: Implementing improvements as we develop them
AquaRefinery 1: Implementing improvements as we develop them • Breaking and Separation – took longer than we planned but considerably shorter than industry norms – We needed to achieve a higher degree of separation than for smelting – and achieved it • Numerous upgrades to support industry leading s
Slide 9: AquaRefinery 1: On track for 120mT/day by Dec 2017
AquaRefinery 1: On track for 120mT/day by Dec 2017 NASDAQ: AQMS 9 • Modules 5 - 16 being assembled to latest engineering standard • Ingoting being commissioned • Samples of pure lead delivered for testing • Ramp - up timing and retro - fits built into our cashflow planning • Expansion to 160mT/day i
Slide 10: We are preparing for rapid build-out and licensing
We are preparing for rapid build - out and licensing • We are validating our business model – Projected financials for a new 160mT/day facility remain at $54mm CapEx, $100 - 120mm Revenue and $20 - 30mm EBITDA – We will report progress in our quarterly earnings • We are not providing forward guidanc
Slide 11: AquaRefineries 2 and up may be built in clusters
AquaRefineries 2 and up may be built in clusters……….. • Original plan - build multiple 80T/day facilities, distributed around the US – Limited certainty of supply - had to be opportunistic – Inefficient for design, engineering and construction – Needs multiple deployment teams • With certainty of su
Slide 12: "Ebonex" – what we acquired
“Ebonex” – what we acquired • Ownership of Ebonex tm a unique electrically conductive ceramic material • Potential performance additive for lead acid batteries – Potentially synergistic with our own lead nano - fibers • Ownership of patents, know - how, tooling and equipment to produce high performa
Slide 13: Ebonex could accelerate our first higher value product – lead nano-fibers
Ebonex could accelerate our first higher value product – lead nano - fibers NASDAQ: AQMS 13 • AquaRefining can generate lead nano - fibers, which have the potential to transform battery performance and life • We need to characterize and test nano - fibers before we can market them • We have started
Slide 14: Financials
Financials Q1 2017 Q1 2016 Operating Loss $(4.5M) $(2.2M) Net Loss $(4.9M) $(2.2M) Loss Per Share $(0.26) $(0.15) Cash @ 03/31/17 $30.6M Cash @ 12/31/16 $26.6M Outstanding Shares @ 05/08/17 20,141,636 Outstanding Shares @ 12/31/16 17,878,725 Capex Spend in Q1 2017 $2.2M Capex Spend total to 03/31/17
Slide 15: Key Takeaways
Key Takeaways • Preparation for large scale roll - out is our priority • AquaRefinery 1, commissioned, in revenue and on track for 120mT/day – Continues to be our primary focus – Using it to prepare for accelerated growth • Strategic partners brought scale and urgency – De - risked our ramp - up – P