Westwater Resources, Inc. · AMEX:WWR
Westwater Resources — FY2018 Earnings Presentation
23 slides from Westwater Resources's earnings presentation, Feb 19, 2019
Slide 1: Energy Materials for the 21st Century
ENERGY MATERIALS FOR THE 21ST CENTURY Christopher M. Jones Jeffrey L.Vigil President & Vice President Finance & Chief Executive Officer Chief Financial Officer Dain A. McCoig Vice President – Operations 2018 Results & Energy Minerals Business Update Conference Call 9:00 a.m. MT,Tuesday, February 19,
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT 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 identified by words such as “expects,” “estimates,” “projects,
Slide 3: Cautionary Note Regarding References to Resources and Reserves
CAUTIONARY NOTE REGARDING REFERENCES TO RESOURCES AND RESERVES WWR discloses mineral resources, including inferred resources, pursuant to the Canadian Under Canadian rules, estimates of inferred mineral resources may not form the basis of a Institute of Mining, Metallurgy and Petroleum Standards (CI
Slide 4: Competent Person Statements
COMPETENT PERSON STATEMENTS DISCLOSURE REGARDING FOREIGN RESERVES & RESOURCES Technical information in this release was reviewed by Dean T. Wilton - P.G., C.P.G. and WWR wishes to confirm that the information reported in relation to the WWR Mineral MAIG, Chief Geologist of Westwater Resources, Inc.
Slide 5: Westwater 2018 Highlights
WESTWATER 2018 HIGHLIGHTS Acquisition of Alabama Graphite Completed on April 23rd 2018. Optimized Graphite Business Plan released. Over two dozen non-disclosure agreements in place with potential suppliers and customers for battery grade graphite materials. Successfully produced over 4 kilog
Slide 6: Stock & Financial Snapshot
STOCK & FINANCIAL SNAPSHOT Share Price Shares outstanding 1 74.4 million US$0.17 (2/15/2019) Market Capitalization Options/Warrants 1 1.8 million US$12.9 million (2/15/2019) Cash and Equivalents US$1.6 million Debt US$0 (12/31/2018) 2 Liquidity (3 Mo. Avg.) 938,691shs/day 52 Wk Hi-Low $0.86 - $0.13
Slide 7: Financial Summary
FINANCIAL SUMMARY ($ and Shares in 000, Except Per Share) 2018 2017 Variance Net Cash Used in Operations $(11,648) ($11,603) 1% Mineral Property Expenses $(3,538) $(4,584) -23% General and Administrative, including Non-cash $(7,357) $(6,614) 11% Stock Compensation Net Income (Loss) $(35,684) $(19,28
Slide 8: Green-Energy Asset Portfolio
GREEN-ENERGY ASSET PORTFOLIO • COOSA Graphite Project • 41,900 acres in east/central Alabama • Only battery grade graphite project in contiguous USA • US has no domestic production of natural graphite – 100% imported • Lithium Projects • Columbus Basin (Nevada) – 14,200 acres • Railroad Valley (Cent
Slide 9: Coosa Graphite Project – Within the Alabama Graphite Belt
COOSA GRAPHITE PROJECT – WITHIN THE ALABAMA GRAPHITE BELT Ideally situated with local support • Located near Sylacauga, Alabama, approximately 50 miles southeast of Birmingham. • Alabama remains a friendly business jurisdiction. • Mercedes Benz, multiple other auto manufacturers with production faci
Slide 10: The Coosa Graphite Project Provides Key Synergies & Leverage
THE COOSA GRAPHITE PROJECT PROVIDES KEY SYNERGIES & LEVERAGE This acquisition significantly increases Westwater’s leverage to fast growing energy minerals end markets while simultaneously pulling forward revenue and cash flow opportunities. • Only battery-grade graphite project in the contiguous USA
Slide 11: Battery Grade Products
BATTERY GRADE PRODUCTS • PMG - Purified Micronized Graphite • Conductivity enhancer for all types of batteries • Largest market is lead-acid batteries • DEXDG - Delaminated Expanded Graphite • Improves electrical conductivity in batteries • Target markets are Lithium Ion, non-rechargeable lithium an
Slide 12: Significant Vanadium Discovery
SIGNIFICANT VANADIUM DISCOVERY Recent assay results for numerous samples collected from graphitic schists have shown concentrations values of up to 0.4% V2O5 (which is equal to 8 pounds of V2O5 per short ton), as well as values ranging up to 0.26% V2O5 in the graphite deposit area itself. These
Slide 13: The Vanadium Opportunity for Westwater
THE VANADIUM OPPORTUNITY FOR WESTWATER U.S. Geological Survey listed vanadium as one of 23 critical mineral resources of the United States; yet there is not a primary vanadium mine currently in the country. Vanadium is used primarily in the production of steel alloys; as a catalyst for the chemi
Slide 14: De-risked Business Plan for the Coosa Graphite Project
DE-RISKED BUSINESS PLAN FOR THE COOSA GRAPHITE PROJECT • De-risked Project Plan Potential • Processing now uses 50 year old, proven, environmentally sustainable technology. • Processing begins on purchased feedstock, widely available right now. • The mine is deferred, permitting is no longer the cri
Slide 15: Optimized Coosa Graphite Project Economics
OPTIMIZED COOSA GRAPHITE PROJECT ECONOMICS Pretax NPV $400 - 500 million (depending on contingency) Pilot Plant & Land $ 7 million Plant and Permitting $ 35 million Positive cash flow 2022 Revenues 2021 15
Slide 16: Green-Energy Asset Portfolio
GREEN-ENERGY ASSET PORTFOLIO • COOSA Graphite Project • 41,900 acres in east/central Alabama (mineral rights) • Only battery grade graphite project & most advanced battery grade project in USA • US has no domestic production of natural graphite – 100% imported • Lithium Projects • Columbus Basin (Ne
Slide 17: Westwater Lithium Projects
WESTWATER LITHIUM PROJECTS COLUMBUS BASIN: • Expanded to >14,200 acres; good highway, power access and ample groundwater. Geophysics underway • Water rights owned by Westwater. • Phase 1 drilling program complete with encouraging results. Sal Rica SAL RICA: • 13,300 acres with good road and power ac
Slide 18: Green-Energy Asset Portfolio
GREEN-ENERGY ASSET PORTFOLIO • COOSA Graphite Project • 41,900 acres in east/central Alabama (mineral rights) • Only battery grade graphite project & most advanced battery grade project in USA • US has no domestic production of natural graphite – 100% imported • Lithium Projects • Columbus Basin (Ne
Slide 19: Uranium: Still a Strategic Focus
URANIUM: STILL A STRATEGIC FOCUS WHY URANIUM? • Nuclear power represents only solution for global electric base load power growth driven by economic expansion and a focus on carbon reduction • The global nuclear fleet is expected to grow more than 35% over the next 10 years • China, India, Russia an
Slide 20: Our Team: Tenured Leaders in Energy Minerals Development
OUR TEAM: TENURED LEADERS IN ENERGY MINERALS DEVELOPMENT Christopher M. Jones, • Joined in March 2013; more than 40 years of industry experience; licensed Professional Engineer (US President and CEO and Canada) • B.S. in Mining Engineering from South Dakota School of Mines and an MBA from Colorado S
Slide 21: Why Westwater as an Investment?
WHY WESTWATER AS AN INVESTMENT? • Continuing to expand our portfolio in green energy materials • Leverage to the battery materials sector with the Coosa Graphite Project in Alabama and three lithium exploration projects in the western US. • Leverage to rising uranium price with one of the largest ur
Slide 22: Why Westwater as an Investment? (Cont.)
WHY WESTWATER AS AN INVESTMENT? (CONT.) • Strong asset portfolio with upside potential • Electric cars and buses grow at 23% compound growth rate • European car battery value chain estimated to be $290 billion by 2025 • Westwater offers US participation in the green energy revolution • Proven manage
Slide 23: Business Update – Questions?
BUSINESS UPDATE Thanks for your time and attention today. QUESTIONS? 23