Aqua Metals, Inc. (NASDAQ: NASDAQ:) has reported its monetary outcomes for the primary quarter of 2024, revealing an working lack of $5.8 million. Despite the loss, the corporate has achieved a major capitalization milestone, securing a $33 million mortgage for the Sierra ARC Phase 1 completion and elevating further fairness to fortify its stability sheet.

With a concentrate on the battery recycling business, Aqua Metals has secured a strategic off-take settlement with 6K Energy and stays on observe to begin industrial manufacturing in 2025.

Key Takeaways

• Aqua Metals reported a Q1 working lack of $5.8 million with a complete money stability of $8.3 million.
• The firm secured a $33 million mortgage and extra fairness financing for the Sierra ARC Phase 1.
• A strategic off-take settlement with 6K Energy was signed for low-carbon battery supplies provide.
• Commercial manufacturing on the Sierra ARC refining campus is anticipated to begin in 2025.
• Total property stood at $31.4 million as of March 31, 2024, with investments in plant and tools of $2.7 million.
• The firm’s partnership with PADNOS and 6K Energy is anticipated to supply distinctive benefits within the battery recycling market.
• Aqua Metals is in discussions with NASDAQ to keep up compliance with itemizing necessities.

Company Outlook

• Aqua Metals expects the Sierra ARC to generate constructive money stream and roughly $34 million in income based mostly on present steel costs as soon as operational.
• The firm’s present money stability is believed to be enough to help the commissioning of the Sierra ARC in 2024.

Bearish Highlights

• The firm incurred a web lack of $5.8 million for the quarter and used $4.3 million in working actions.
• Research and growth prices have elevated by 32% year-over-year.

Bullish Highlights

• Strategic partnerships with PADNOS, 6K Energy, and a possible licensing settlement with Yulho Materials place the corporate favorably available in the market.
• The Department of Energy-funded challenge with Penn State goals to determine a home provide chain for environmental waste processing.

Misses

• Despite the strategic developments, Aqua Metals confronted important working losses and money utilized in each working and investing actions.

Q&A Highlights

• Aqua Metals is awaiting a response from the DOE relating to a grant software submitted in March.
• The firm is exploring the restoration of further components from Black Mass and can produce lithium carbonate and carbon as a part of its recycling course of.
• Phase 1 of manufacturing is slated to start later this 12 months, concentrating on the manufacturing of nickel and lithium first.

Aqua Metals, a frontrunner in sustainable battery recycling, continues to make strides in its operational capabilities whereas navigating monetary challenges. With a transparent path to industrial manufacturing and strategic partnerships bolstering its market place, the corporate is poised for a transformative 12 months forward. Aqua Metals goals to not solely meet the rising demand for battery supplies but in addition to contribute positively to environmental sustainability. As it really works in direction of reaching its milestones and sustaining NASDAQ itemizing necessities, Aqua Metals stays an organization to observe within the evolving panorama of inexperienced expertise and recycling.

InvestingPro Insights

Aqua Metals, Inc. (NASDAQ: AQMS) has been navigating a difficult monetary panorama, as evidenced by the latest working loss reported for Q1 2024. InvestingPro information offers a deeper look into the corporate’s monetary well being and market efficiency. With a market capitalization of $45.38 million and a major income progress of 525.0% within the final twelve months as of This autumn 2023, Aqua Metals exhibits potential for scaling up its operations. However, the corporate’s gross revenue margin stands at a regarding -25028.0%, indicating substantial prices relative to its income.

InvestingPro Tips counsel that whereas analysts anticipate gross sales progress within the present 12 months, they don’t anticipate the corporate to be worthwhile this 12 months. Additionally, Aqua Metals holds extra cash than debt, which might present some monetary flexibility because it progresses in direction of industrial manufacturing. These insights point out each alternatives and dangers for traders contemplating Aqua Metals’ inventory.

Investors occupied with a extra complete evaluation can discover further InvestingPro Tips for Aqua Metals, which delve into features similar to money burn charge, inventory volatility, and valuation metrics, by visiting https://www.investing.com/pro/AQMS. Moreover, there are at present 15 extra InvestingPro Tips out there, which might present invaluable steering in making knowledgeable funding selections. For these contemplating a deeper dive into Aqua Metals’ financials and market prospects, use coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription at InvestingPro.

Full transcript – Aqua Metals Inc (AQMS) Q1 2024:

Operator: Greetings and welcome to the Aqua Metals’ First Quarter 2024 Investor Conference name. At this time all individuals are in a listen-only mode. A quick question-and-answer session will comply with the formal presentation. [Operator Instructions] As a reminder, this convention is being recorded. It is now my pleasure to introduce your host, Bob Myers, with Investor Relations. Thank you. You could start.

Bob Meyers: Thank you, operator, and thanks, all people, for becoming a member of. Earlier in the present day, Aqua Metals issued a press launch offering an operational replace and discussing monetary outcomes for the primary quarter ended March 31, 2024. This launch is obtainable within the Investor Relations part on the corporate’s web site at aquametals.com. Hosting the decision in the present day are Steve Cotton, President and Chief Executive Officer, and Judd Merrill, Chief Financial Officer. Before we start, I want to remind individuals that through the name, administration will likely be making forward-looking statements. Please discuss with the corporate’s report on Form 10-Q filed in the present day, May 15, for a abstract of the forward-looking statements and the dangers, uncertainties, and different components that might trigger precise outcomes to vary materially from most forward-looking statements. Aqua Metals cautions traders to not place undue reliance on any forward-looking statements. The firm doesn’t undertake and particularly disclaims any obligation to replace or revise such statements to replicate new circumstances or unanticipated occasions as they happen, besides as required by legislation. As a reminder, after the formal remarks, we will likely be taking questions. Questions will likely be accepted over the cellphone from analysts, and all different traders can submit a query utilizing the net webcast portal supplied in in the present day’s and earlier press releases. We will take as many questions as we will in our out there time slot. And with that, I’d like to show the decision over to Steve Cotton, CEO of Aqua Metals. Steve, the decision is yours.

Steve Cotton: Thank you, Bob, and thanks to everybody who joined us in the present day. Though it is solely been a short while since we shared our This autumn and the annual replace, Aqua Metals has continued to make strides in direction of our core focus of creating the round provide chain that we consider will set the usual for low-cost, low-carbon recycling of lithium-ion batteries. We proceed to determine and broaden key partnerships whereas concurrently commissioning and commercializing the Sierra ARC refining campus, in advancing operational capability with further funding and monetary flexibility. I’ll begin with some feedback on the information of the day. As most of you may have already learn, we introduced a significant capitalization milestone for the corporate in the present day, primarily via an as much as $33 million loan-term sheet for the completion of Phase 1 of the Sierra ARC. We have executed the time period sheet for this mortgage with one of many world’s largest privately held firms that’s focusing their investments on decarbonization initiatives at a worldwide scale. This time period sheet was executed after months lengthy and thorough due diligence on the corporate, expertise, and the Sierra ARC potential to generate money. This concerned detailed critiques of our introduced and unannounced feedstock, processing, and offtake companions, in addition to the economics. We will be capable to reveal extra about our mortgage associate upon execution of the definitive settlement by the July timeframe. It can be essential to notice that this time period sheet permits the corporate to finance as much as an extra $8 million past what had been beforehand contemplated with a $25 million USDA mortgage assure. The USDA mortgage assure continues to be in course of however now focused for a future section of construct out as the choice timeline for section 1 has merely taken too lengthy. In conjunction with the signing of this as much as $33 million mortgage settlement time period sheet, a situation was for the corporate to use a lift to our money place to keep up a wholesome stability sheet. We obtained nice help from our key shareholders and companions and efficiently raised the quantity wanted to perform this requirement. I will even add that we had unanimous and significant participation from our board and named Executive Officers, in addition to our VPs and Directors and different Managers within the firm. I feel that claims rather a lot about our group’s confidence and resolve. As everyone knows, the capital markets are difficult now, which is why we strategically selected to finance the completion of the Sierra ARC primarily via a mortgage, whereas using our entry to the capital markets prudently to keep up a wholesome and mortgage qualifying money stability. So to conclude on our capital infusion and normal feedback, we’re fairly happy with our mortgage settlement for Sierra ARC Phase 1 coupled and our qualifying fairness help. I want to thank our to-be-named mortgage associate, shareholders, companions, and staff for the continued confidence and help. Moving on to further updates. First, we stay assured that our methodical method is the easiest way to pursue the huge and rising alternative for lithium-ion battery recycling. Unlike others who tried to leapfrog to industrial scale, we’re taking a extra staged method that reduces threat. We are constructing a round provide chain of companions and we’ve got secured a sturdy provide of black mass to course of at present at our pilot plant and shortly on the Sierra ARC. With our introduced and unannounced agreements with off-takers, we even have consumers in place to off-take the recycled supplies for the manufacturing of latest low-cost recycled batteries. Towards this finish, in Q1 we secured a strategic offtake settlement with 6K Energy in a first-of-its-kind collaboration designed to deal with the escalating demand for recycling lithium-ion batteries to help CAM or cathode-active materials manufacturing. This novel settlement will supply battery producers entry to low-cost, low-carbon, domestically produced vital battery supplies. This off-take settlement with 6K Energy is what each firms consider is the primary decarbonized black mass to CAM provide chain, with what we collectively consider are at favorable economics on the worldwide stage. And our partnership with 6K Energy continues to broaden and has demonstrated success first with a non-recurring engineering settlement that achieved key expertise targets subsequent to our strategic provide settlement and essential developments wanting forward, together with additional expertise developments and co-location potential. As we have talked about our aggressive benefits, this partnership is a transparent indication and essential validation of the corporate’s technique. The mixture of the revolutionary applied sciences of each Aqua Metals and 6K offers price and environmental benefits as each processes are electrified and extra environment friendly than conventional processes like pyro and hydro. Even hydro processes that purport to enhance environmental outcomes over pyro use large portions of one-time use chemical substances which are costly, hazardous to people, hazardous to the atmosphere, and create the same quantity of waste streams as their enter materials. As a definite and distinctive benefit, our expertise regenerates and repeatedly recycles the mandatory chemical substances for reuse. This shouldn’t be discovered with different business individuals. Through patented processes each Aqua Metals and 6K eradicate the manufacturing of hundreds of tons of waste streams which allow a cleaner, extra sustainable resolution for closing the loop between recycling and lithium battery manufacturing. Our progress on the Sierra ARC continues. We have accomplished the overwhelming majority of the constructing uplift together with model new concrete flooring and coatings, metal superstructure and tools platforms, full laboratory operations already staffed 24 by 5, places of work, utility energy drop and change gear and energy distribution. We are shifting our focus now to mechanical electrical plumbing together with receiving and putting in and pre-commissioning tools and will likely be commissioning programs within the coming months main as much as the introduction of first black mass feedstock later this 12 months. I encourage everybody to see additional updates of our progress on our web site weblog. The whole Aqua Metals group feels immense delight in seeing that facility come to life with progress made every single day. Additionally, we’ve got managed our industrial scale enlargement plans prudently via our methodical method and due to this self-discipline the challenge to-date stays on time and underneath funds. Recently, the corporate obtained further recognition and third-party validation by being named Top Project Winner within the Environment Plus Energy Leader Awards Program for 2024, which highlights the corporate’s important stride in environmental stewardship and revolutionary vitality options. It’s a testomony to the understanding that accountable, sustainable recycling options are vital within the electrification of the transportation sector. We additionally made a finalist place within the seventeenth Annual Best Places to Work in Northern Nevada awards. In the primary 12 months, we utilized and because the solely finalist within the lithium sector. We made that accomplishment in our first 12 months of software due to the very constructive outcomes of our worker survey and our aggressive advantages which permits us to proceed to draw and retain our staff and construct momentum in our organizational capabilities. And referencing some earlier remarks, the clear vitality business continues to be rising and maturing. There are over $92 billion of introduced funding to-date in North America to face up 80 plus battery manufacturing and supplies services with a aim of reaching roughly 200 occasions the infrastructure by 2030 as there was in 2020. Nearly all of those services produce scrap materials that must be sustainably recycled. We stay fairly satisfied in our perception that as we enter industrial and sustainable manufacturing, we will likely be a robust associate for these battery, battery supplies and automotive firms to shut the battery loop in an economically favorable and decarbonized means. In addition to those thrilling developments, Aqua Metals stays dedicated to reaching key milestones within the coming months and quarters. And that features however shouldn’t be restricted to scaling and commissioning of Phase 1 of the Sierra ARC to allow us to offer the primary recycled materials to 6K Energy and different off-take companions late this 12 months and scaling quickly into subsequent 12 months. Our intent to signal a licensing settlement with Yulho Materials, additional growth of our industrial partnerships, offering updates on future progress capital together with government-backed loans and grants and challenge financing. With the help of our traders, companions, and devoted group, we’re well-positioned to speed up our progress and proceed to make significant strides in making a home closed-loop provide of vital battery supplies. We consider our distinctive expertise, price benefits, and superior environmental outcomes will disproportionately profit Aqua Metals within the coming quarters and years forward. And I sit up for sharing additional updates with you all quickly and I’ll flip it over now to our Chief Financial Officer, Judd Merrill to debate the monetary outcomes for the primary quarter.

Judd Merrill: Thanks, Steve. As we introduced this morning and as Steve mentioned, on May 13, 2024, we entered into entered right into a non-binding time period sheet for an as much as $33 million mortgage facility with one of many largest privately held firms on this planet that spend money on decarbonized initiatives. This is a five-year observe at market rates of interest and customary covenants. The observe will even embody a warrant part to make sure alignment with our shareholders. The time period sheet contemplates that the events will shut on the mortgage facility by June 30, 2024 or shortly thereafter and that is topic to closing circumstances. The secured mortgage facility is for use for the completion of the Phase 1 growth of our 5-acre recycling campus within the Tahoe-Reno Industrial Center. We additionally introduced in the present day an extra fairness financing. The objective of the fairness financing is to qualify for the money stability necessities to be on the stability sheet for the mortgage with our strategic funding associate. Turning consideration now to the stability sheet, as of March 31, 2024, we had whole property of $31.4 million. We ended the quarter with whole money of roughly $8.3 million. During Q1, the stability sheet had each plant and tools and different property that elevated as we spent $2.7 million on plant and tools and one other $3 million paid on deposits for tools associated to getting the industrial plant constructed and prepared for commissioning and manufacturing the second half of this 12 months. Moving now to the earnings assertion. During the primary quarter of 2024, Aqua Metals targeted on continued validation of its pilot plant operation. The pilot plant’s objective was to check our course of for lithium battery recycling and to offer pattern manufacturing consultant metals produced to a number of introduced and unannounced counterparties. The price associated to plant operations had been roughly $2.2 million for the quarter. Research and growth prices elevated roughly 32% in comparison with the quarter ended March 31, 2023. General and administrative bills stayed regular for the quarter ended March 31, 2024 in comparison with the quarter ended March 31, 2023, in-line with expectations. In truth, G&A bills have been about the identical every quarter for the final 5 quarters. For the primary quarter of 2024, we had an working lack of $5.8 million in comparison with an working lack of $4.5 million for a similar interval in 2023. Our web loss for the 12 months was roughly $5.8 million or a adverse $0.05 per primary and diluted share in comparison with web lack of $4.6 million or a adverse $0.06 per primary and diluted share for a similar interval in 2023. Moving to the money stream assertion, money utilized in working actions for the quarter was $4.3 million. Net money utilized in investing actions for the quarter was $5.6 million as we invested within the construct out of the Sierra ARC. Net money supplied by financing actions was $1.6 million for the quarter. We have taken crucial steps to strengthen our stability sheet as we transfer into industrial operations. Our phased method is designed to be accountable with our investor funds and to make sure success as we scale. Our present money stability, together with the money that we anticipate to herald from each this fairness elevate and from our strategic funding associate, will help the commissioning of the Sierra ARC in 2024 and bridge us to full Phase 1 capability, industrial scale manufacturing. It is anticipated that when we’re totally working in 2025, the corporate will start to generate money on the plant degree. That concludes my remarks on the corporate’s financials. I’ll now flip it again over to the moderator for Q&A.

Operator: Thank you. At this time, we’ll conduct our question-and-answer session. [Operator Instructions] And our first query comes from Michael Legg with the Benchmark Company. Please state your query.

Michael Legg: Thanks. Good afternoon. Congratulations on the quarter and the capital raises. Obviously, places you in a terrific place. When you talked about the market charge on the $33 million, are you able to give us a bit of extra readability on what you imply by market charge? Is it [debt] (ph)? Is it regular? Can you simply give us a bit of extra readability there?

Judd Merrill: Yes. So thanks, Mike, for the query. If you exit and try type of the place the loans are sitting at proper now, rates of interest have been excessive. USDA, we stated, was going to be in that 9-ish % charge, and that may have been higher than this charge. But the market that we have seen, and we went out and talked to a number of completely different lenders, and all of it type of got here in. And we’ll be capable to get extra element as soon as we get the definitive settlement signed. But in accordance with the consultants we used and the folks that we reached out to that had been type of in that market charge for the place we’re at as an organization.

Michael Legg: Okay, nice. And then covenants connected to it, are there any money restrictions or any points with the covenants that will tie up some money?

Steve Cotton: The very customary covenants all throughout the board are some monetary ratio covenants that you simply all the time see in some of these issues can be modeled out and are superb with. And then, you already know, there’s minimal, very doable minimal money necessities by the entity.

Michael Legg: Okay, nice. And then — so that is anticipated to shut finish of June, early July. What does this imply for the commissioning of the plant? Obviously, you may have the $7 million you simply raised in the present day. Do you need to anticipate any of this money to proceed to construct out, or is all the things going easy proper now?

Steve Cotton: Yes, so all the things is transferring alongside as deliberate. We had cranes present up a pair weeks in the past, some tanks, some chillers, and issues like that. So all that tools is being put in. We’ve bought issues that we have ordered which are coming. So the following section, and it is type of well timed, the following section is numerous just like the set up and a number of the development like [typing] (ph) electrical and people sorts of issues and setting issues in place. And in order that, is scheduled to occur right here shortly. And in order that the timing of that funding works out rather well.

Michael Legg: Great. And only one final query, I’ll get again. The 6K offtake, I consider the Jackson, Tennessee facility shouldn’t be purported to open till 2025. Can you discuss when they’ll begin accepting the plant to be up and operating?

Steve Cotton: So we’re already sending samples to 6K from the pilot facility as a result of they’ve a UniMelt (ph) course of functionality, type of in a pilot atmosphere, similar to we do at present. So once we get to the Sierra ARC up and operating and producing, we have got offtake contracts already lined up and validated by our debt associate with the economics and all these issues. And as 6K begins to come back on-line with their Jackson, Tennessee PlusCAM 1 facility, then the amount will begin heading in direction of them as nicely for offtake as they want. So we’re already giving them supplies now which have been put within the palms of assorted battery producers and auto producers which are verticalizing, et cetera. But the PlusCAM facility will come on-line after our Sierra ARC. And we’re arrange for achievement.

Michael Legg: What proportion of the offtake would you anticipate them to take?

Steve Cotton: So as time progresses, they will take a major quantity of offtake. We do not disclose the chances of offtake from numerous offtakers. But it will likely be a really important %, what our settlement with them that we publicly disclosed is that we might goal collectively us offering them 30% of their enter feedstock. So you’ll be able to type of map out what that may appear to be from that. So they will have a 30% recycled content material. And a reminder that the NRE, the non-recurring engineering challenge that we have finished for them permits them to additionally very economically and environmentally favorably course of even mined materials via the UniMelt course of as nicely.

Michael Legg: Great. Congrats on the progress. Nice to see issues transferring alongside. I sit up for the remainder of the 12 months.

Steve Cotton: Thanks a lot.

Operator: Thank you. And our subsequent query comes from Sameer Joshi with H.C. Wainwright. Please state your query.

Sameer Joshi: Yeah. Good afternoon everybody. Thanks for taking my questions. Congrats, Steve and Judd on the financing and all of the progress. Just on the identical Phase 1, 3,000 tonnes per 12 months plan. Is the CapEx expectation nonetheless in that $18 million to $20 million vary, and if that’s the case is there a purpose why the financing facility is for $33 million?

Judd Merrill: Yes. So the full CapEx for this challenge. We’ve all the time stated it is about virtually $30 million. And so what’s nice about this observe is we have spent a few of our working capital, a number of the firm’s working capital that we put aside for G&A already in operations for the CapEx, we have already began constructing this. And so we can reimburse us for a few of that price via this mortgage. And so actually, it is — the mortgage is designed to be a complete type of full of the CapEx want for this challenge. Obviously, we have spent some and we nonetheless have an enormous chunk of {dollars} left to spend, however that is the best way that this mortgage was designed to do.

Sameer Joshi: Understood. And the clarification, I feel Steve’s commentary talked about that there was an $8 million money stability requirement and I feel, Judd you talked about the $7 million elevate was in direction of that finish. Is there further capital — fairness capital elevate within the works or being deliberate for this? Or the money available plus this [deal] (ph), satisfies that situation?

Judd Merrill: Yes. So we designed it this approach to attempt to reduce dilution on the fairness aspect to herald simply the correct amount of {dollars} to have the ability to qualify for the necessities for this mortgage. And so what we introduced in was the suitable quantity and there is — we do not want to herald one other fairness part to that.

Sameer Joshi: Understood, as soon as once more thanks for taking my questions and congrats.

Judd Merrill: Thank you.

Operator: Thank you. I’ll now hand the ground to Bob Meyers to undergo the webcast questions. Thank you.

Bob Meyers: Thank you. First query, are you able to speak a bit extra about PADNOS of their relationship with Aqua Metals because the agency has participated within the transactions?

Steve Cotton: Sure, comfortable to. So PADNOS is an enormous firm based mostly in Michigan, and so they’re one of many largest recyclers within the US. They’ve bought over 100 years of historical past within the business. They recycled metals, plastics, paper, electronics and vehicles, which primarily nowadays include inner combustion engines, however after all now EV. Therefore, issues like lithium battery entry. And we have identified to work with PADNOS even pre-IPO and so they had been a significant participant on this latest fairness transaction. And we have collaborated additionally with PADNOS on a really giant DOE MESC grant, Grant Number 3099 software that closes the home battery provide chain. And PADNOS is our associate on this grant software for vital feedstock collections and pretreatment and processing. So for those who consider the collections within the Black Mass manufacturing. This grant is a $200 million-plus grant that we utilized for collectively and with another companions in March after receiving a letter of encouragement from the DOE for that package deal that we submitted in March, and we do anticipate to listen to again this summer season. So we and PADNOS are each aligned and really excited concerning the alternative to win that grant collectively.

Bob Meyers: Great. Thank you. The subsequent query goes again to 6K, asking you to assist distinguish the partnership between 6K and Aqua Metals and the way it’s distinctive inside the business?

Steve Cotton: Yes. So with our Partner 6K, we actually do suppose it is distinctive within the business for certain. So that could be a nice main query there, whoever requested it. And as we talked about in our opening remarks, it is crucial for us to repeatedly level out that the aggressive benefits that we’ve got and why the strategic partnerships actually represents a significant inflection level within the battery recycling business. So collectively we consider that we’re establishing the primary really sustainable round provide for vital battery metals proper right here within the US. And each firms have notably electrified processes and clear path to web zero, and we’re already utilizing renewable vitality sources the place others actually have important CO2 emissions, and in some circumstances, practically as a lot quantity or extra quantity and waste supplies that go into the air within the type of CO2 or to the land within the type sodium sulfate in comparison with what’s being processed to start with the place we collectively haven’t got these points. We consider this provides us numerous price benefits as nicely to scale collectively and collectively in a phased-approach and actually the NRE, the non-recurring engineering that I used to be speaking about earlier and preliminary offtake contracts that we introduced is the inspiration for extra agreements that we anticipate understanding with 6K Energy. And that features issues like co-locating arcs with their PlusCAM services, beginning with our Jackson Tennessee facility. So we’re actually enthusiastic about that ongoing and rising relationship that we’ve got with 6K Energy and the differentiators in comparison with some other part to {the marketplace}, each environmentally and really importantly, economically.

Bob Meyers: Thank you. Just a few questions right here, perhaps for Judd. And they began being mentioned with the analysts, however you will undergo it probably once more. Are you in a position to define the income and margin profile of Phase 1 of the Sierra ARC based mostly on in the present day’s metals costs.

Judd Merrill: Yes. So we have not taught publicly about particular margin profile. But we’ve got stated that Phase one is the primary 3,000 tons plant will likely be constructive money stream on the plant degree. And simply as an apart, meets the covenants for the brand new debt that we’re doing and be capable to pay again service the debt on that mortgage. But if you concentrate on the three,000 ton processing capability, if we take into consideration what in the present day’s metals costs are and so they’re type of low, if we type of take a look at the previous couple of years that we’re in a position to generate about $34 million of income. And in order that’s at in the present day’s steel costs, we anticipate that to uptick as we get the plant turned on later this 12 months and begin producing extra significant revenues in 2025.

Bob Meyers: Great. Thank you. This also needs to most likely be for you. We’ve gotten a couple of questions relating to the NASDAQ and the connection that Aqua Metals has on the itemizing necessities.

Judd Merrill: Yes. So as we all know we’ve got been under $1, however we talked to the NASDAQ and so they do a proposal a 6-month extension. We’re arising on that first six months on the finish of May, so in a few weeks, however we have already reached out to NASDAQ, and we qualify for a type of six-month extension. So we’ve got that chance to get again above $1 and meet that requirement. If not, we might have to take a look at options similar to we hate to say it, however a reverse inventory cut up. I hope you will not need to get there, however we’ve got six months to work on that. But in no case, are we going to decide on de-listing.

Bob Meyers: Great. Thank you. Pivoting again to the partnership, are you able to present a fast replace Yulho Materials and the place the discussions on that licensing settlement stand?

Steve Cotton: Yes. So I feel I stated earlier than that we had visited Yulho late final 12 months, and their Black Mass 8,000 ton nameplate black mass manufacturing facility was nearly full. And now it is materially full and able to function, doubtless by the summer season, simply pending some ultimate allowing necessities that they’ve in Korea to get that facility ramping up and all these issues. So as that facility ramps up, we will likely be on the market visiting and visiting with them to do our due diligence on their facility and to share with them the updates on the Sierra ARC developments and talk about the definitive licensing settlement. So this summer season, we’ll be doing that. We anticipate that we’ll have extra to report fairly quickly on that entrance. We are very enthusiastic about our continued partnership with Yulho.

Bob Meyers: Great. Thank you. In the press launch, you indicated one other DOE funded challenge with Penn State. Are you in a position to share a bit of bit extra details about that?

Steve Cotton: Sure, comfortable to. So actually, that could be a actually thrilling program, and Aqua Metals is a sub-recipient to Penn State that was the lead applicant for that grant. Unlike the grant that we’re making use of for the place Aqua Metals to guide, had been a sub on this case. And Aqua Metals from this grant will likely be funded to work on extending actually AquaRefining applied sciences to course of environmental waste along with black mass feedstock. If you take a look at the title of the grant, it says acidic water air pollution cleanup and group financial growth. And so the target of it’s to extract and recuperate uncommon earth components and different vital supplies from coal and coal waste and coal by merchandise. And show a 100% home provide chain producing these completed merchandise for prime tech and protection functions. So the grant quantity in whole was $4.99 million and AQMS portion of that’s $373,994 to be actual. And we’ll have a value share of $74,035. And the time line shouldn’t be speedy for us, however the general time line is July. The negotiations are anticipated to start, and that is the way it works with the DOE when a grant occurs. The preliminary work when the initiatives will start in October of this 12 months, however Aqua Metals portion does not start to actually successfully till October of 2025. So it isn’t an instantaneous alternative. And that is most likely okay for us as a result of we’re actually targeted on getting the ARC up and operating, however we’re actually enthusiastic about being part of this grant and having the ability to take our AquaRefining applied sciences to use them to such vital functions taking waste supplies out of the atmosphere after which making vital battery minerals proper right here within the US. So the specified consequence of that grant for finish outcomes is to determine a home provide chain circularity and have superior separation applied sciences for extraction, restoration of issues like uncommon earth components and different vital supplies from these coal and coal waste, coal by merchandise. And then the creation of everlasting magnet and alloys for prime tech and protection functions after which finally cut back the US reliance on overseas suppliers for vital minerals and the uncommon earth supplies. We’ve additionally bought different subs that we’re partnering with inclusive of University of Virginia. An organization known as Rare Earth Salts and GE Aerospace. So a very nice collaboration, and we’re actually enthusiastic about that chance. It’s on the map of DOE, clearly as they contemplate us for our grant.

Bob Meyers: Perfect. Thank you. The subsequent query. Are there some other lithium ion battery recyclers that may ship lithium hydroxide apart from Aqua Metals.

Steve Cotton: So we consider that we’ll be producing numerous lithium hydroxide, clearly from our course of natively and that is distinctive to Aqua Metals. And what we’ll be doing although with the Sierra ARC is producing lithium carbonate. And we have chosen to go that path as a result of the capital price for crystallizers is tens of tens of millions of {dollars}, and that may be extra applicable to go to lithium hydroxide in a crystallized type at scale once we get to the Phase II 10,000 ton and past. So actually, Aqua Metals goes to be producing lithium carbonate. And the price of lithium carbonate versus lithium hydroxide is fairly comparable and translatable. And we’re discovering that increasingly battery producers which are making next-generation batteries are requesting lithium carbonate as an alternative of lithium hydroxide. Lithium carbonate, you do not crystallize, it is like extra of a powdery type. So though there will likely be different lithium recyclers, and we hope that they succeed as a result of for those who take a look at the presentation on our slide deck that we’ve got on the Investors web site, you will note that there’s a lot much less said recycling capability between Aqua Metals and Redwood (NYSE:) Materials and a few different gamers as in comparison with the black mass that’s going to be out there for recycling already starting in 2025. So everybody who succeeds will win.

Bob Meyers: Perfect. Thank you. Next query. Aside from the supplies that we have already introduced that we have extracted, are there some other recoverable components being investigated from the Black Mass.

Steve Cotton: Well, I might say the most important financial alternative for Aqua Metals on that entrance is the carbon that we gather that doesn’t flip into CO2 greenhouse gases, both via smelting via the pyro metallurgical course of by actually burning issues or via the hydro processes that create numerous CO2 by transferring the atoms round within the molecules and so they escape via the stack is gentle gasoline, you’ll be able to’t filter it out. So that carbon that we get is actually about 30% of the burden of that Black Mass that once more doesn’t go into the air. And makes our course of very sustainable comparatively to actually some other processes. That carbon might be up cycle after initially reuse with issues like cement, consider it or not pencil producers which are on the lookout for carbon graphite, et cetera, that does not need to be the excessive technical grade. But carbon might be upcycled to graphite after which finally graphene. So we’ll go from a pathway, we consider, from a reuse state which doesn’t have economics which are very favorable, however no adverse economics. And we additionally pay to get rid of it and we get to reuse the carbon in sure functions after which migrate that to a modest quantity of income that we get from the graphite. And then actually, if we will get to graphene, that may be a really extremely invaluable materials that we will upcycle from our carbon that we begin with.

Bob Meyers: Okay. Thank you. Next query is one thing we could have coated a bit of bit, however this individual could have missed it. When will Phase 1 start producing completed product even when not at full capability?

Steve Cotton: Yes. So there’s positively a ramp to Phase 1. And as we had been mentioning earlier, the becoming of the already built-out facility with the tools getting put in place, et cetera, we nonetheless anticipate to be introducing the primary black mass on the Sierra ARC later this 12 months. And our aim is to supply the primary truckloads of fabric — truckload is actually 20 tons of fabric. And there may be much more nickel than there may be cobalt in batteries, one of many frequent batter recipes, for instance, is [NMT 811] (ph) eight elements nickel and eight elements manganese and one half cobalt. So we’ll be producing the nickel and the lithium first, and we expect that we’ll be capable to get to the primary truckload the lithium and the nickel in direction of the tip of the 12 months. Now whether or not we will name that income or not, will rely upon GAAP accounting guidelines as it will likely be a first-of-kind plant producing first to form supplies which are going to first clients. However, as a result of these are commodities which are listed on London Metals Exchange, definitely the nickel and all that, we would be capable to get to income, however it may go into Q1 of subsequent 12 months, to be decided.

Bob Meyers: Thank you. Regarding the Black Mass, as you are processing it, are you able to speak a bit of bit about what waste is left over? And what occurs with that waste?

Steve Cotton: So in our course of, very, little or no waste that the nickel and the lithium and the cobalt exit, clearly, via our financial acquire by promoting these completed merchandise, as completed merchandise. And then that carbon I used to be speaking about is concerning the 30% of the burden of the black mass that may get right into a reuse state of affairs. So that is not waste. That’s simply reused. And then we do get a bit of little bit of iron and aluminum and different contaminous components that do not assist to satisfy battery spec. And these are very de-minimis small quantities of fabric. We do not produce not like any of the opposite recyclers, we do not produce sodium sulfate bodily waste streams. So once more we do not have to spend tens of tens of millions of {dollars} of crystallizers to dry our crash and ship it out as crystallized sodium sulfate to the landfill. And so there’s actually a really minimal quantity of waste stream from our course of as a result of it is regenerative and it’s a closed recycling leap inside itself. That’s really one of many nice distinctive environmental and financial advantages of AquaRefining.

Bob Meyers: Thank you. And that is all of the questions we’ve got for in the present day. I’ll hand the ground again over to Steve Cotton for closing feedback.

Steve Cotton: Well, nice. Thanks all people for attending. Great questions, and be happy to succeed in out to FNK IR. If you felt such as you did not get your query answered, we need to be right here for you. And we sit up for continued updates and it should be an thrilling remainder of the 12 months. I can guarantee you.

Operator: Thank you. This concludes in the present day’s convention. All events could disconnect. Have day.

This article was generated with the help of AI and reviewed by an editor. For extra data see our T&C.

MoneyMaker FX EA Trading Robot

powered by qhost365.com

Investing.com