Westwater Resources, Inc. · AMEX:WWR
Westwater Resources — Q2 2020 Earnings Presentation
27 slides from Westwater Resources's earnings presentation, August 2020
Slide 1: Energy Materials for the 21st Century – Corporate Presentation August 2020
ENERGY MATERIALS FOR THE 21ST CENTURY CORPORATE PRESENTATION AUGUST 2020 Christopher M. Jones Chief Executive Officer (Nasdaq: WWR) Jeff Vigil Chief Financial Officer Dain McCoig Vice President 1 Operations
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 convey our current expectations or forecasts of future events. F
Slide 3: Westwater – A Green-Energy Material Developer
WESTWATER – A GREEN-ENERGY MATERIAL DEVELOPER A publicly listed green-energy material developer, focusing on developing a portfolio of strategic assets that sustainably power the low carbon future. • Developing a battery ready graphite business in Alabama – scheduled for production in 2022. Now with
Slide 4: Westwater – Ensuring the Safety of Our Employees
WESTWATER – ENSURING THE SAFETY OF OUR EMPLOYEES • To ensure the health and safety of our employees and the communities where we work, we have: • Eliminated unnecessary travel • Instituted health protocols for working together and instituted remote working arrangements for our employees based on CDC
Slide 5: Westwater – Ensuring the Health and Growth of Our Business
WESTWATER – ENSURING THE HEALTH AND GROWTH OF OUR BUSINESS • We continue to work with our business partners to maintain our advanced battery graphite product development schedule: • Dorfner Anzaplan, our technical consultant, continues to provide results that will shape our pilot plant operations, s
Slide 6: Stock & Financial Snapshot
STOCK & FINANCIAL SNAPSHOT Share Price Shares outstanding 1 7.6 million $2.39 (8/5/2020) Market Capitalization Options/Warrants 1 559,576 $18.2 million (8/5/2020) Cash and Equivalents $2.3 million Debt $0.3 million (6/30/2020) 2 Liquidity (3 Mo. Avg.) 865,000 shs/day 52 Wk Hi-Low $9.50 - $0.25 1 Sha
Slide 7: Financial Summary
FINANCIAL SUMMARY (000’s, except per share) 2Q-2020 2Q-2019 Variance 1H-2020 1H-2019 Variance Net Cash Used in Operations $ (2,610) $ (1,584) 65% $ (6,065) $ (4,324) 40% Mineral Property Expenses $ (576) $ (808) -29% $ (1,178) $ (1,426) -17% General and Administrative $ (1,659) $ (1,700) -2% $ (3,43
Slide 8: Green-Energy Asset Portfolio
GREEN-ENERGY ASSET PORTFOLIO • COOSA Graphite Project • 41,900 mineral rights acres in Alabama – now with a vanadium discovery • Only battery grade graphite mining project in the continental USA (Roskill) • US has no current production of natural graphite – 100% imported (Roskill) • Lithium Projects
Slide 9: Batteries and Their Role in Clean Energy
BATTERIES AND THEIR ROLE IN CLEAN ENERGY • Global electric vehicle sales projected to be half of the global market in 2040 – a 25 fold increase from 2019 23% Growth Rate Transportation • Transportation sector accounts for 23% of (2019-2025) greenhouse gas emissions, accelerating demand for low emiss
Slide 10: Graphite Is a Major Component of All Batteries
GRAPHITE IS A MAJOR COMPONENT OF ALL BATTERIES Why Graphite Matters: • Graphite is a critical component of all types of batteries including lead-acid, alkaline power cells and non-rechargeable lithium cells • Coated Purified Spherical Graphite (CPSG) is a critical component in lithium-ion batteries
Slide 11: The Coosa Graphite Project Provides Key Advantages
THE COOSA GRAPHITE PROJECT PROVIDES KEY ADVANTAGES The Coosa Graphite Project is the only near-term source of domestic U.S. natural graphite • Pilot plant design work underway • Customer qualification is underway – a recent one- tonne bulk sample order announced! • Westwater’s graphite will be produ
Slide 12: Battery Grade Products – Presently Being Tested by Prospective Customers
BATTERY GRADE PRODUCTS – PRESENTLY BEING TESTED BY PROSPECTIVE CUSTOMERS Bulk sample requested by major ULTRA-PMGTM - Purified Micronized Graphite battery manufacturer! Conductivity enhancer for all types of batteries Largest market is lead-acid batteries ULTRA-DEXDGTM - Delaminated Expanded G
Slide 13: Battery Graphite Process Flowsheet
BATTERY GRAPHITE PROCESS FLOWSHEET DEXDG – Delaminated Expanded Purified Graphite Purification >300 m Products Graphite • 35-45 um and Intercalation Expansion Delamination • 20-34 um Concentrate Screening • 9-19 um • <9 um CSPG – Coated Spherical Purified Graphite <300 m Products • 25-35 um Millin
Slide 14: Business Plan for the Coosa Graphite Project - Overview
BUSINESS PLAN FOR THE COOSA GRAPHITE PROJECT - OVERVIEW • Project Plan • Pilot plant design underway with our engineering partner Dorfner Anzaplan • Pilot plant start-up expected in Q4 2020, generating products for pre-qualification in large batches to facilitate sales contracts • Full scale product
Slide 15: Business Plan for the Coosa Graphite Project
BUSINESS PLAN FOR THE COOSA GRAPHITE PROJECT • Project Economics* • Project Capex $54.5 million: • $2.5 M in 2020 for Pilot Plant • $32.9 M in 2021 for Long Leads, Construction • $19.5 in 2022 Construction/Start up • First full year of positive cash flow 2023 • Project pretax NPV at 8% to be $481 mi
Slide 16: Green-Energy Asset Portfolio
GREEN-ENERGY ASSET PORTFOLIO • COOSA Graphite Project • 41,900 mineral rights acres in Alabama – now with a vanadium discovery. • Only battery grade graphite project in the continental USA • US has no current production of natural graphite – 100% imported • Lithium Projects • Columbus Basin (Nevada)
Slide 17: Westwater Lithium Projects
WESTWATER LITHIUM PROJECTS COLUMBUS BASIN: • Expanded to >14,200 acres; good highway, power access and ample groundwater Water Rights Granted • Water rights owned by Westwater Sal Rica • Phase 1 drilling program complete SAL RICA: Columbus Basin Project • 13,300 acres with good road and power access
Slide 18: Green-Energy Asset Portfolio
GREEN-ENERGY ASSET PORTFOLIO • COOSA Graphite Project • 41,900 mineral rights acres in Alabama – now with a vanadium discovery • Only battery grade graphite project in the continental USA • US has no current production of natural graphite – 100% imported • Lithium Projects • Columbus Basin (Nevada)
Slide 19: Uranium: Near Term Price Catalysts Begin to Materialize
URANIUM: NEAR TERM PRICE CATALYSTS BEGIN TO MATERIALIZE The United States relies heavily on nuclear power for carbon free base load power • more than 20% of all uranium produced in the world is consumed in the US** U.S. Nuclear Fuel Working Group Report • 150 million per year for 10 years for Nuclea
Slide 20: Green-Energy Asset Portfolio
GREEN-ENERGY ASSET PORTFOLIO • COOSA Graphite Project • 41,900 mineral rights acres in Alabama – now with a vanadium discovery • Only battery grade graphite mine project in the continental USA • US has no current production of natural graphite – 100% imported • Lithium Projects • Columbus Basin (Nev
Slide 21: Significant Vanadium Discovery Confirmed
SIGNIFICANT VANADIUM DISCOVERY CONFIRMED Independent lab results demonstrated a wide-spread distribution of vanadium mineralization throughout the central portion of the Coosa Project Exploration is planned Recent assay results indicate values from 0.15% vanadium pentoxide (V2O5) to 0.40% V2O5
Slide 22: 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 35 years of industry experience; licensed Professional Engineer (US President and CEO and Canada), taking projects from concept to production • B.S. in Mining Engineering from South Dakot
Slide 23: Experience Matters – Demonstrated History by Management
EXPERIENCE MATTERS – DEMONSTRATED HISTORY BY MANAGEMENT Energy minerals exploration and development is a process that requires discipline and diligent capital stewardship: • We have restructured and recapitalized the Company over the past several years, repositioning Westwater as a diversified energ
Slide 24: Why Westwater as an Investment?
WHY WESTWATER AS AN INVESTMENT? • We benefit from strong fundamental market drivers in all our portfolio materials • Leverage to the battery materials sector with the Coosa Graphite Project in Alabama • Leverage to rising uranium price with one of the largest uranium mineralization bases in the U.S.
Slide 25: Why Westwater as an Investment? (Cont.)
WHY WESTWATER AS AN INVESTMENT? (CONT.) • We have a strong asset portfolio with upside potential • We are a proven management team with experience in energy minerals development and financial management • You should anticipate catalysts in the remainder of 2020 and 2021 • Coosa Graphite Project deve
Slide 26: Thank You!
THANK YOU! Questions? 26
Slide 27: Contact Us
ENERGY MATERIALS FOR THE TWENTY-FIRST CENTURY Contact Us Westwater Resources Contact: Investor Relations Contact: Christopher M. Jones, President & CEO Michael Porter Phone: 303.531.0480 Porter, LeVay and Rose Jeff Vigil,VP Finance & CFO Phone: 212.564.4700 Phone: 303.531.0481 Email: Westwater@plrin