Slide 1: 2016 Q4 and Year End Earnings Call
Feb 2017 “ The World’s First Clean Lead Recycling Company” 2016 Q4 and Year End Earnings call NASDAQ: AQMS
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: Agenda
Agenda • Our Vision and Strategy • Status • JCI Agreements • Financials • Summary NASDAQ: AQMS 3
Slide 4: Lead still dominates global battery production and is continuing to grow
LAB 96% Li - ion 4% Lead acid dominates capacity produced LAB Li-ion NiMH Other Industry estimates Source: CHR Metals Lead production in million metric tons/year Lead still dominates global battery production and is continuing to grow 4 NASDAQ: AQMS • Lead acid battery production is continuing to ex
Slide 5: Supports multiple business models and opportunities
……… supports multiple business models and opportunities • We started with “Build Own Operate” with a target capacity of 800T/day – Successful step changes in the production of traded commodities demand that the replacement technology be proved out first – this is why we built AquaRefinery 1 and plan
Slide 6: Building AquaRefinery was the key – Tahoe Reno Industrial Center
Building AquaRefinery 1 was the key – we chose to start in the Tahoe Reno Industrial Center (TRIC) • A population of 32M is within an 8 hour drive • Growing hub for data centers, aerospace and clean - tech • Excellent infrastructure, talent and logistics • Low energy costs • Good support from State
Slide 7: Expansion plans: additional facilities, licensing, higher value products
• Build additional facilities in North America up to a combined capacity of ~800T/day – Our planning basis is a total of five 160T facilities – Each is expected to cost ~$54M and generate $90 - 120mm in revenue and $20 - 30mm in EBITDA – Our goal is to fund primarily with debt or other non - dilutin
Slide 8: Our first facility is running from breaker to AquaRefining
Our first facility is running from breaker to AquaRefining • Built an experienced team drawing from established recyclers and leading electrochemical engineers • Expanded potential capacity to 120T/day • Produced and validated 99.99% pure lead – working on 99.999% pure • Nevada EPA established that
Slide 9: A typical Western smelter
A typical Western smelter • Smelters require dry lead powders which are difficult to contain and result in “fugitive emissions” • All of the lead must pass through the smelter which uses more energy and increases emissions • “Smelted” (Secondary) lead requires further processing to be useable NASDAQ
Slide 10: AquaRefining eliminates most of the emissions, uses less energy
AquaRefining eliminates most of the emissions uses less energy and makes better products NASDAQ: AQMS 10 • Only the lead compounds are converted back into lead • High value lead alloys recovered at source and converted directly into ingots • Much less energy required • Limited fugitive emissions • R
Slide 11: AquaRefinery was first of kind, surprises encountered and overcome
AquaRefinery 1 was the first of kind, “surprises” encountered and overcome NASDAQ: AQMS 11 Conveyor jams Sorting calibration Seal and bearing changes Pump changes Unique process Multiple design improvements to support licensing
Slide 12: JCI Agreements
JCI Agreements • Tolling/Lead Purchase Agreement – JCI to provide significant feedstock for tolling – JCI to purchase up to all lead output from Aqua Metals’ merchant business – Aqua Metals will continue to promote pure AquaRefined lead for stationary applications – Secures feedstock & offtake to bu
Slide 13: What it means
What it means • Tolling/lead purchase – Together with our relationships with Interstate Batteries and Battery Systems Inc., we believe we have secured sufficient supply and off - take to underpin our growth from 160 to 800T/day in North America – We believe this meets the supply/offtake pre - requis
Slide 14: Year End Financials
Year End Financials 1. 2016 Numbers are unaudited 2. Outstanding shares as of February 10, 2017 are 19,210,355 NASDAQ: AQMS 14 Year End 2016 Year End 2015 Q4 2016 Q4 2015 Operating Loss $(13.0M) $(5.5M) $(4.6M) $(2.4M) Net Loss $(13.6M) $(12.3M) $(4.9M) $(2.4M) Loss Per Share $(0.89) $(1.47) $(0.30)
Slide 15: Summary – Executing and on-mission
Summary – Executing and on - mission • Built an outstanding and committed team • Built, permitted and commissioned AquaRefinery 1 – Now ramping up production and evaluating locations for AquaRefinery 2 & 3 • Strategic partnership with Johnson Controls, the world’s largest manufacturer of automotive
Slide 16: Investor Relations Contact
INVESTOR RELATIONS CONTACT: Greg Falesnik Senior Vice President 1 - 949 - 385 - 6449 Greg.Falesnik@mzgroup.us www.AquaMetals.com NASDAQ: AQMS