Westwater Resources, Inc. · AMEX:WWR
Westwater Resources — FY2023 Earnings Presentation
20 slides from Westwater Resources's earnings presentation, Mar 20, 2024
Slide 1: Battery Materials for the 21st Century
Battery Materials for the 21st Century March 20, 2024 Frank Bakker, President & Chief Executive Officer Terence Cryan, Executive Chairman Steve Cates, SVP– Finance & Chief Financial Officer 1 | westwaterresources.net | NYSE: American – WWR
Slide 2: Cautionary Statement
Cautionary Statement Cautionary Statement Regarding Forward-looking Statements This presentation contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are iden
Slide 3: Why Westwater as an Investment?
Why Westwater as an Investment? We are an energy technology company focused on producing battery-grade natural graphite materials for advanced batteries here in the United States, using our patent pending proprietary purification process. 3 | westwaterresources.net | NYSE: American – WWR
Slide 4: Westwater Resources Overview
Westwater Resources Overview Energy technology company focused producing battery- grade natural graphite materials for advanced batteries here in the United States • Publicly traded company (NYSE American: WWR) • Originally uranium mining, now an energy materials company • Acquired Alabama Graphite
Slide 5: Recent Highlights and Milestones Reached
Recent Highlights and Milestones Reached • First off-take agreement executed with SK On, a Tier 1 leading EV battery manufacturer with sales ramping to 10,000 mtpa • Our Kellyton graphite processing plant is currently under construction in Alabama and anticipates to sell 12,500 mtpa of natural graph
Slide 6: Graphite Anode Materials in Lib Cell
Graphite Anode Materials in Lib Cell A typical Electric Vehicle with 80 Kwh battery pack contains approx. 175 – 210 lbs of anode graphite Graphite: 50% Nickel: 30% GRAPHITE ANODE Cobalt: 8% MATERIALS Manganese: 8% Lithium: 4% 6 | westwaterresources.net | NYSE: American – WWR
Slide 7: Graphite Designated a Critical Mineral by U.S. Govt.
Graphite Designated a Critical Mineral by U.S. Govt. • The U.S. Government has defined graphite as critical to the nation’s security and prosperity and the White House has invoked the Defense Production Act • In August 2022, the U.S. Government passed the Inflation Reduction Act - Provides a 10% tax
Slide 8: Forecasted Global Graphite Anode Supply Imbalance
Forecasted Global Graphite Anode Supply Imbalance • Global graphite anode demand expected to outpace supply resulting in growing imbalance • Poses major supply security concerns particularly for the U.S. • Electric vehicles driving increase demand for graphite anode material Source: Benchmark Minera
Slide 9: Forecasted Global Demand For Graphite Anode by Product
Forecasted Global Demand For Graphite Anode by Product • Graphite has been key material for lithium-ion battery cells since adoption in 1990’s • Natural graphite anode was 25% of total graphite anode demand in 2023 and expected to grow to 35%+ in 10 years Source: Benchmark Minerals Q4 2023 9 | westw
Slide 10: Forecasted Global Natural Anode Supply Imbalance
Forecasted Global Natural Anode Supply Imbalance • Global natural graphite anode demand expected to outpace supply at higher rates than other graphite anode materials resulting in supply imbalance beginning in 2025 • Global demand for natural graphite anode expected to grow to more than 2 million to
Slide 11: Value creation from processing natural flake graphite
Value creation from processing natural flake graphite USD/ton 10000 Graphite Anode (CSPG) 8000 6000 4000 Uncoated Spherical Graphite 2000 Graphite Concentrate Feedstock 0 2023 2025 2030 2035 2040 Flake (94-95%), -100 Mesh Uncoated Spherical Graphite Coated Spherical Graphite (Graphite Anode) § From
Slide 12: Customer Engagement Update
Customer Engagement Update SK On The product sales agreement announced February 5, 2024 with SK On represents a significant milestone reached with a Tier 1 global battery manufacture • The agreement is for multiple years, with volumes ramping to 10,000 mtpa in the final year of the contract. • The p
Slide 13: Kellyton Graphite Processing Plant Under Construction for More Than 2 Years
Westwater Has Been Under Construction at the Kellyton Graphite Processing Plant for More Than 2 Years Located within a one-day delivery of 15 planned or existing battery manufacturing facilities • Phase I CSPG planned output now 12,500 mtpa • Total estimated costs for Phase I remain at ~$271 million
Slide 14: Kellyton Graphite Processing Plant - Phase II
Kellyton Graphite Processing Plant - Phase II Phase II Expansion: • Approximately 70 acres secured at the Kellyton site, allowing Phase II expansion on current footprint • Estimate capital costs for Phase II expansion of approximately $465 million at pre-feasibility level • Expected CSPG production
Slide 15: The Coosa Graphite Deposit Provides Key Advantages
The Coosa Graphite Deposit Provides Key Advantages The Coosa graphite deposit is the largest source of domestic U.S. natural flake graphite in the contiguous U.S. Consists of ~ 42,000 acres of mineral rights held under long-term lease • Exploration to date has been on less than 10% of total acres •
Slide 16: Initial Assessment, with Economic Analysis for Coosa
Initial Assessment, with Economic Analysis (“IA”) for Coosa • Initial Assessment (“IA”) for Coosa Graphite Deposit Coosa 2023 IA Indicated & Inferred Resources ~ 3 million short tons (mst) of Cg Development Costs (est.) $152 million Pre-tax cash flow (est.) $714 million Pre-tax NPV-8% (est.) $229 mi
Slide 17: Anticipated Development of Coosa Deposit
Anticipated Development of Coosa Deposit • Conventional small-scale open pit mining methods - Employing small conventional loading and haulage equipment - Several shallow pits, each less than 100 ft deep • Mining rate ~ 3.33 mst/yr with an average grade of 3.21% Cg - Mine life of 22 years with cut-o
Slide 18: Financial Update
Financial Update Kellyton graphite processing plant – phase I: • Through December 31, 2023, we have incurred costs of ~$119 million towards the construction of Phase I of the Kellyton graphite processing plant. • We estimate approximately $152 million of cost remaining, inclusive of contingency. Fin
Slide 19: Financial Results Summary
Financial Results Summary ($ in 000, Except for Per Share Year Ended Year Ended Variance and Share Amounts) December 31, 2023 December 31, 2022 Net Cash Used in Operations $(11,430) $(13,176) (13%) Net Cash Used in Investing Activities $(58,295) $(52,790) 10% Net Cash Provided by Financing Activitie
Slide 20: Questions?
Questions? Contact Us Terence Cryan, Executive Chairman Steve Cates, SVP – Finance & CFO investorrelations@westwaterresources.net NYSE-American: WWR 20 | westwaterresources.net | NYSE: American – WWR