American Resources (AREC) 19 Aug 242024 Q2 Earnings call transcript

Greetings, and welcome to the American Resources Corporation Second Quarter 2024 Conference Call. [Operator Instructions] As a reminder, this conference is being recorded. It is now my pleasure to introduce you to your host, Mark LaVerghetta, Executive Vice President. Thank you, Mark.

You may begin.

Thanks, Lisa, and good afternoon, everyone. On behalf of American Resources Corporation, I'd like to welcome everyone to our second quarter of 2024 conference call and business update. uniquely Officer. opportunity our an the our CEO; American Financial accomplishments months, is how our this businesses on past Jensen, infrastructure, welcome markets Mark call and discuss the Kirk with ReElement and Chief and we've we're on American always Metals to serve and Technologies update provide Taylor, our several that and We we within divisions. Also for the positioned Chairman made today over me We'll remarks, the into before of I'd prepared statement. provide Q&A we the remind cautionary to off, get some we'll then and it part everyone call. But of normal like our kick Certain meaning discussed statements today's Private forward-looking Act. constitute within of statements the call Securities on could the Litigation Reform are which to other the differ subject results to forward-looking and uncertainties could from actual statements the discussed factors, materially risks, statement. These results in cause forward-looking in other SEC uncertainties When which are considering risk the forward-looking factors, out press statements, mind you cautionary statements, in keep our releases and should laid filings. and

We information, not whether of any result revise as otherwise. a to forward-looking new obligation also update undertake events statement, or do future or any

changes as Lastly, phone continue on you I'd get in public accountants. wanting dial have the upgrades I we through by recognize our our get and to recent for like in Kirk today, And believe again, to to to Officer, ask a queue. first, before remarks. Taylor the anyone that, new prepared in PCAOB, we to question into our Financial registered Chief work

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Instructions] Sobelson [Operator line from of Our Hutton. first comes Jesse question with EF the

interesting lot going to business a the I very A piece focus the on here. wanted on ReElement but in story of just here.

on Firstly, in scale? the different press this magnet grade a you And how And release, prove at something you this at refining this conducted? mentioned battery was ores build demonstrating demonstration rare line can secondly, if the to to ores not, the XX.X% is the a and was and you time demonstrated what it out what out scale purification at And explain this for and technology elaborate Can commercial be earth scale? commercial of from grade? rare or earth grade. is lithium maybe

I Jesse. appreciate Thanks, Yes. that.

or surface my utilize. was that developed we've way resins our originally but University technology on to we've of higher that's And with so our it up interface far at better us, from over was a efficacy me the area and what by And at and what our in then lab the correct point, and developed due I jump hopefully, question obviously we that of further that So X,XXXx seen scaled that. the well work please is and scale Purdue our we've uniqueness volumes. backwards again seen miss the technology technology, is reask of I'll if

really the guys was need XX.X% the specific battery We've we've for they The rare scale. So well, our targeting battery as that for commercial to is sent demonstrated the -- is magnet what purity, side us on sample. produce qualification earth side. produce the a oxide process quality been we the But on the XX.X% on customer which what the we impurities.

there it a and the ores. them. weren't back So process their can wanted wasn't to sample sent we out procuring they we They if asked -- ores

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The attractiveness our is ores CapEx even our earth and the still side a our which is, the rare business rare low CapEx lower side, than of of is magnet technology -- model. actually the earth CapEx

that. results excited we're excited of -- about it's So position the and about the

On produce very the carbonate produce, what to XX.X% our team from battery a lithium side, is will most perspective. XX.X% is a easy product for

customer them wants. produce at XX.X%, at XX.X%. They the produce we'll we'll what want Now

there? all Did your address I questions

guys there. in order are was it the terms needed. place are time sounds on production sounds go build the a once in there their that essentially, Yes, facilities to the of sample. It based in scaling, like And line isn't maybe fair you just partnerships to Is ready to really say? like

oxide actually got our specifically to earth are identifying equipment Facility going starting just we the XX, we're the giving customer, rare days goal on our XX trigger a currently I next that the for spodumene -- Marion facility be So tour will today first the the a of in the into was facility. production. equipment lithium with of But pull

that large turbine recycle tool end-of-life from well end-of-life magnet companies as we those arrangements Detroit wind with a as have rare magnet. power Renewables Automotives feedstock companies number with We of earth oxides EDP such as

them. we market. equipment the and on on waiting now extremely get necessarily earth The for not rare we're right so attractive speak is And moving that to as in oxides procure producing. We're us margins forward

can. we as we're moving And we so as possibly aggressively

Great. Great.

Is just on is side push follow-up working quick a technology the your business is we this and recycling lot and is it but lithium. more recycling the to big with a the potentially one picture of today? there there start see to technology bigger Just as itself, brines applicable there refining of a We about as talked thing.

Absolutely.

where worked significantly with their sheet today extraction that's We and battery-grade really side we've out actually the going they're their to by of by do. out their the equipment be of of pretty in us where to to piece It and took steps materials companies precipitation we brines, production that all be simplified cost a comes companies ReElement dramatically. ReElement charge So specifically their for facilities. will direct that of in, all the for them -- they That's flow for extraction I much takes X Powered a X service right? water that DLE DLE business We think use to so. side and lower flow get powered separation reduced trying And what lithium purification doing we by -- our we sheet.

question Our line the Ihle Wainwright. from next of with Heiko comes H.C.

maybe earlier on that That give also opinion, Xx little input of the fairness the then talked bit used us more about to factors opinion, really value, that fairness color just derive the And a you can value? you some please.

for. a It actually paid not could. that I wish fairness we I opinion was

opinion fairness a was itself together. that put that the So SPAC

partnerships what which data we you're from full the the a opinion to American room line. without -- the in supposed conducted is -- and any they business us, do. obviously gave ultimately of we're was And and So have involvement under opportunities business fairness the that Metals that access them we place

we the access they... -- American once included just we So to the here that details get of can, lot I it. the to don't we'll seen X-K around numbers we language in that shortly. If a don't completed we get an put be We've in hope will the here it, quarterly can obviously, for filed out if Metals which S-X, have we if

Yes, I make it and the should. sense. think you way I Because you're factors come about the good you in numbers think talking the will make they are look if input pretty if

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Fair not those I'm Yes, one of either. enough.

going much that's corporate company, item, trying with you And on to divestitures getting cash door? it has the walk in actually between of and year? rather the you're assuming now how through by end all the -- in everything the item been M&A these call that's more going you're how or the much spin-offs So and brought all you're be can and us

Yes, best. my I will do

the be ReElement amount significant So raise but between at a could by circle combined on, current capital turning as to uniqueness we the have from we've revenues million to which credit about that Capital our $XX the of to most model funds need what at facilities, some that been soft ReElement of million operating ReElement, bonds last business partner, the Japanese as we've customer debt customers already such a to well intent of market. were The talking the the ReElement. today, financing raise at the the the with prepays, ReElement is tax received we premium Patriot level as to which we of $XX division, with and/or of Powered focus

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Carbon and will it American division, our Wyoming complex, our a state-of-the-art we County complex are The be within division. developing obviously

that date table order customer all the for prepay with to to and as negotiating big wants a to are come very the of that with revenue We well.

on side So capital here the comes in facilities ability that. on also to to can we've credit hopefully, it fruition additional on if not. But based or provide we equipment then leasing near that the some term, the updates and had draw

to the there uniqueness unlevered relatively Infrastructure of Infrastructure that's capital we getting lot that needs significant is where But business all there's to American Infrastructure of delivered that the to spent additional American perspective, is close not just continue We base be up is the from Wyoming equipment and face a all. with business. on the can side of that business at being have a the the asset expand an finishing

already set up. is complex McCoy

developing it not division, carbon the over focus -- model generating a really few company CapEx-light not which forward, is just the on mining one time. it's the other cash a mining in focus met a core flow that from our we streams becomes that's assets the is out on of So companies of leasing focusing a space, our than business Wyoming the by going

much a Metals X has acquired liability mining scale then we with over we And small in we've side that how driver traditionally for in made been also should last in speak. X merging SPAC the we've figuring up where grow doesn't and we're reclamation American out itself the revenue American SPAC. trust, we of million we reclaimed the credit over acquisitions capital years. through trust the stays available from see the the of to $XX Metals of or cleaned stay want properties, SPAC are We'll but that in on relatively trust a much have the faster capital we capital how as facilities the and stay than in

substantial a there. capital business the just But what we of amount need of outside right today discussed doesn't

County We running. Does our capital in low focus significant as the division Heiko? speak we getting facility a overhead, just Marion answer Wyoming into is have question, have The a need. your main getting equipment that don't we

Thank that. pretty Yes, appreciate I you much. very comprehensive.

Thank Awesome. you.

line from with of Genovese BG Our next the Bobby Capital question Group. comes

Just to follow up of Michael's on thought. train

accountant I'm well. you've glad up If as you the your on got added line and --

the would on that is equipment with is asset American put audited it and value $X.XX equipment, properties, shareholders up million this that company shares at debt, opinion could be this next share valuing of you today's the you at plus. value give able fairness financials, rest believe and price If in of number, the the the XX and the a out would in of minus you added then the take to Element we idea of the that of the figure rough be what call base alone to be what

from opinion must And like to just of have But of forward. furnace American your research the multiple as of it when done numbers. that had be hear going on anticipate should I'd company, you you the do those Element a accountant well? ballpark the you've that With sort updated being

and quick me, and question, to take I Kirk Bobby. can, I'll he stab, wants a appreciate if the interrupt

them look any because equipment: see acquire anybody we they don't in to assets, our the infrastructure and on these if operations to financials So bought our GAAP happy balance give our possess. the sheet or down and as One, that at they of mostly bankruptcy we equipment But Kentucky through to XXX our and in Virginia, sales. also we you how show West up

we and we bought we've timely. else Wyoming XXXX replacement acquired bought new assets, in for million, place where of would around wanted County them nobody the roughly assets be So the bought our these in value put to but alone $XXX division. We and them let equipment the

we're $XX of which as -- as bond, less it's as a County as in little which $XX leases. the going Wyoming than under $XX completing million, about million cash time. still we had substantially -- the taxes Now $X over complex about as and million well well equipment million or substantial have we accounting down

the then stated, of on as of substantially numbers on initial side, is is roughly shares it the and believe minimum ReElement higher focus opinion saying separating we $XXX public which take the with businesses. outstanding, fairness value XX million value, and are the that under American I'm what I'm $XXX of assets $XX in not at is That be would value, funds put we're working $XXX saying I million believe than So million $XXX the that on valuation million the price. that unlocking the Based the comps. replacement based we stock worth, that Patriot the these million as that's Metals. should million. roughly minus And that those Capital domain, are a

So they're line business understand more to invest for clearly everybody easy in. to

value create do values the saying effort enough ReElement to the sitting and to our based within more based the and value, realize action you? into profile we're growth that those We're that. But we just that or the here forth on Action Is that substantially unlock have division believe clarification? that undervalue need which not that would we're help believe we still work. you action putting marketplace. Is undervalued, -- putting that we on clear

I asset sure in shareholders it. the the the a where the No, I of shocked base comes substantially that thing of actually the next for think like we'll rest clarity I'm research next And that's show are you. the alone out until financials point is company, little I trading. stock report this of wait at just come think but the the thank -- of is set out but to undervalued

that honestly, couple opportunity Powered based And our because is ReElement demand realizing everybody technology think also Yes, on can a the absolutely. mean, downturn needs. is look we're lithium if of already at for that pricing Yet revenues it what really, revenue you expect of on the million a -- year. didn't dollars the to that. X and market in the component this third projects I unlocks works from on we And the have is I bidding by generate generate side, ReElement the the upfront of huge just in that us a

value internal our and on to Powered so line. And I is facilities low our keep focused to signing head substantial building as generate -- production that revenue beyond by mining bottom Wyoming in be ReElement by the which working on the lease generation as extremely down as ReElement into our drive keeping well out costs side, this own falls substantial. investors get bringing this where So ReElement customer the kicking for project, Powered as well think revenue through our that's to with on that's them on revenues to the the could we're

Our comes of Merrill with question next from Gallagher Lynch. Kyle the line

you to talk to good Mark, again.

that Just down to of path rare kind side. on of earth the wanted revenues continue

to the is call, you of You said be fill and Marion? for part expanding qualification is orders start I that all like you qualification to it's had the like. in realizing had into were generating able a be with the customers of and kind through be revenue revenue mentioned, run simply to to won't Noblesville and your of location really Noblesville or think going contracts purchases process you some Is sound through entering

Yes. appreciate it. Good question, I Kyle,

correct. Noblesville asked sheer we're also getting of material POs of volume product So want we're they test from we're is our to The on. and reason amount that because to that deliver getting why expanding us the customers

deliver product faster So our we're that to expanding to be revenue to able that base. expand

been if CapEx the capital for as at our But we to The the look lithium separation refinery, is separation I us, CapEx. refinery purification stuff for way of that a facility. generation very big Noblesville has and look ultimately the revenue most of earth is step get purification rare on because the infrastructure our is it Now at the of in but ourselves. focus wouldn't a you a return or -- for in Marion low majority building

our of attractiveness finally so Marion natural the with we have And gas of goal all is our today installed.

We our have water.

few long next hold That's for from installed, which that section the but equipment roof utilities in from we're into. us but back really our got lead item We're that ordering really doesn't time building. here moving revenues We kick where in. most a the the the have weeks, be could finishing renovated this we've

from in this That's oxide in material. line as building you metric I commencement from operation it start-up that let at these Today, put years. looking country going that is X average about the really alone mine, in post the payback well year of at both as magnet in where well come we which demand, $XXX from. neodymium million produces revenue. only the terbium presidium If rare revenue a produce look to and dysprosium the as we're ores we as out products, strong And earth the is producer X,XXX at a would with ton a rare on oxide earth period at about have based -- price,

hydromet importantly, by But as are of problem as everything creating and a more say well Most industry. would and realizing is the within the I in chemistries work magnets people Powered also batteries doesn't change else, huge the ReElement.

people are a a plant. so lot scoping building hydromet And of out

CapEx way chemistries them to better. that us do that, can't they for help coming and And sheet near-term And realize risk us. ReElement process it lot everybody's they're about we model to ReElement for us, to a look flow because they -- a low for few Powered forward low optimize in are revenue months. design way that by and get Now and we and changing. a more generation next to with over partnership very simpler truly make And now talking the

whatever tons speaking? like, X,XXX those to is." is on -- And generally or color scenario able pay it what to we'll mean you How is I the like x any look or where a detail up kind more of orders, structured? of information ton those Are number Yes. the of can per general there us you are sort give of some they kind size just generally purchase you say, give "Hey, anything can of

like I look We they're Yes. based, to low live are think today. you indexes index if ultimately the point. at so indexes mean, would on the we at it, a traditionally

back will to drop the I think $XX will pop number $XX think lithium here below end but year. I of next it going into up that shortly

$XX about you're for kilogram, the $XX -- price dysprosium, a $XXX on presidium, and today, oxide per based sitting earth the level about $XX produce, kilogram. about we neodymium rare average produce you're kilogram. Blended a the weight On at of that for at elements we you're to

So Noblesville we -- production Rare with on have Marion put where at that's initial combined the million $XXX slightly will we roughly. us offtake. from Earth where The USA the our number have, the offtakes that that. That's maybe upwards

ore their process sent that with X their the ones, that large base few OEM that We have a have could of then we're we then then or they ones. -- more side sample multinational be that very a of us we with. wanted we that have And very smaller have one ore the the and X working for partnerships And one the customers. was company big on

cost developing build the want all coming don't now would indexes. right to of typically the suited are But facility. best fruition our the We we with our -- stay it's But into think of margin into we're by think We go out living maximize we cost index low production pricing. on to -- we the those for contracts. customers as fixed-price on and like to --

lastly, out heard product start then I want just you make correctly. Marion to that and sure in And you saying Were Great. XXXX? the I and having expect door up to you just running going

be the Noblesville Marion. quickly. out build by bit got bit meantime. than we'll rebuild -- We're but the now. to on once Noblesville for also really Marion to doing more facility of we're processing clarity but in a we'll We Not forward. revenue it a Marion could start to by That's will, frame XXXX. ReElement, provide feed -- preprocessing But in little the we on that feed together pretty time XXXX, full the could into bit a And team and will operational business to side. Marion get in then equipment that guidance we'll which generate get thought and then core on little believe coming take Marion we starting build little the in up the focus starting Powered -- time going to buy just building going for renovated. faster the of it with preprocessing is ReElement on we the Powered just we're

investor. a of -- question private Mark comes next with the Our as line from Sloan

Resources American deal the American back to does Metals through How go shareholders?

Yes.

underlying further we -- is down through getting down we effectiveness, little will or of Metals currently Resources owned held today. a but separate by is that bit the a they is American those today. which our further American with public majority path the on of company once -- of XXX% get which S-X, So -- to distribute the the little American by get be a Once we bit will a shares Resources investors, it portion will own stand-alone currently all

you to shareholders? the to are be distributed percentage expecting What

will American X-K that to the But think determination value on to either of get will your an hold But I not be don't going once once meet yet. percentage sure we're I'm it how be I the obviously, going didn't distributed will communicated be exactly press that. through distributed. the the with as much Board we of dictated it Board distribute, amount in that's Board be -- public the well . as to makes date release or yet. that has Resource the

Now the Resources. SPAC American how much of going the of to is total actually value

forget So about the distribution.

how is much side American how the much going be other to is SPAC to going Resources of So deal? versus

how if be statement then valued piece $XXX depends So ultimately on they trust [ sponsor that million. it'd roughly American American the million the The value. Resources at trust, capital sponsor the alone It $XXX $XXX million million $XX full Metals get $XXX much stays value, million, $XXX in of and equity ]. to will million a estimating $XX shares million roughly plus plus but then in

[ to million American Resources ] Well that $XXX assuming value?

proposed That us and is an that to agreements. the they value have it was indefinitive

Okay.

What completing your other on one XX-Q? is So time question. line the separate

XX-Q for American Resources?

a about week notice Resources, yes. last delay. American there a Since was

today. filed Yes, was it

chair audit of sign. the to traveling, the and him does unfortunately, on Our off out But needed country, team management reports. sign not was our internal we quarterly

your chair need traveling audit overseas. You He that. unfortunately to was do

was it that. to So unable do

NT. So we file the to had

Keith question comes Maxim from line next Our of Group. Goodman with the

I Patriotic directly that Capital that were about money or guess described for Capital, I the ReElement? the Is think, potential you questions had Most what of going raising called used? it. answered. funds, of be my way capital just to is a some question as Patriotic it, from I you is the

be a would that's that Yes, private. --

publicly, not for not level. Resources would we -- subsidiary investors our division we're we're We raising So pursue if be financings doing diluting stated the as we at American capital. the based

X them But investing we've national -- security path. there's to are a are today. interest of Capital Capital and that a industry it them value that chain approached the would trying develop -- number potentially express and speak. supply with that the The We that Patriotic and us has along higher business have we -- than through where had working as we Patriotic in funds, structure of fund in that or is a that known have X

some the to that equipment capital n cushion so The balance will into capital spin-off the in of than a equipment, as Marion we But go ReElement. than of capital company term sits on ReElement capital good buy it the to just public ordering there's attractiveness get it level the the business pursue in the other its of into about sheet at And will go will the ReElement that -- there's need facilities. own balance thing but containing facility the other not company. is sheet for be of the existing working the separate directly -- on that and most of near huge today,

So going to right not testing changing. you're [indiscernible] in for I'm shipping that's the that not -- you're doing ship on now, doing Noblesville some at obviously there. mistaken, if you're and you're And point you're charging order testing

Okay.

powered is can Sure. have by produce I some is to going But Powered get The indicated obviously, purchase or or charge you're so that you to goal pivot by to you delivery Noblesville, a it's Marion? you're think orders, So to you're going producing and to small marrying going do you're you're and for going of running you month. in that everything and order become volumes facility. to hybrid, ReElement? purchase produce and larger going a up Or

correct. That's

So it's a hybrid.

revenues we showcase will generate So our is with our a there, will low joint or huge we [indiscernible] and more to The environment power we customers we lines But Marion. we're that ReElement from and facilities do move it CapEx the -- additional to low-cost, the CapEx towards commercial our additional ability so developed initially we to model importantly, Marion in do can the that the our of commercial we'll business, we'll production build the when build investors. production going it I said ReElement venture the -- either if in flow through substantial in be offering, partners, lines, scalability by and cash technology here and and believe Powered to is which briefly by initially work we Kentucky, will again.

element, our that is the raise so go matter, is out And model our to out CapEx any to constantly constantly of model not -- is for risk. capital incur not to not go every business our and lines in

CapEx substantial. it out we're that Our our because flow their technology model big that on the of from is other interest will to deploy multinational offer. what we need let front And level smaller are I building is sheet uniqueness players people they to the and say that getting corporations

have never testing. for we So charged today, historically,

for charging now are We testing.

as for more and collaboration that customers in will flow and us a test now a that. flow cash a our them, of will And of partners positive not incur OpEx to the importantly, of our they revenue are that for to We with lab start monetizing position testing develop strength sheets of our position we're very, in most Noblesville going and the monetizing want that facility already way about charge a very announced. on they've cost it's we most of you unique it's potential well excited we attractive right and expensive sense ReElement and if be facilities circumstance. But two, spodumene materials materials, the make a now. people's all forward, -- as ourselves and; recycled build, people as not facilities way today hydromet any unless reducing also doesn't Powered very supplementing flexible CapEx ability And reversal. it's lithium to recover to One, and and utilized for can't really by hydromet

is it's low and OpEx. technology Our low CapEx,

So flow more them be it to for sheet deploy our facilities components of we and make replace can and step their their technology in and viable successful.

that collaborative the by everybody's Powered facilities our environment chain ReElement, make reason and technology we utilize a through the to developing also but unlock can chain. truly technology to supply There's global refining happen. within no technology our national So be the shouldn't supply

partners from indications that? and they're with And board you on customers that sort have of

partners. [indiscernible] and Yes, Yes.

to thing that's I save do business to we're we business because technologies can get will them people it's save because permits are interest where make with hard can we've the since had other But to money. exciting amazing, we've helping moorman -- to the working our not us need trying their that facilities. pretty done or of do -- announced about power to Chris and so. level Ding people us phenomenal money, absolutely either is more and a ReElement back solution technology partners from Jeff job want is them what these with with flow we're think I do team, it We're Tragethon, chemical getting and Yi by and sheets the will like. Shane in the say team, on we And them developing Peterson, them accomplish, our deploy

party Does which in office gets matter, political it into November?

probably this going We model. IRA, the We XXX to not don't based round a kill apply in No, This is don't subsidies. don't build XXC. business I on If We he's case to really best it's rely qualify doesn't really. -- we Trump put it did upon -- our a commercial. of -- applications to for we matter. think that wins, in

make the X have have And that. elements all supply So a and zirconium the survives administration. And from to nation. materials to need say here we wins, who that a our will build don't national we the need don't parties sure matter perspective. battery and any earth that out strong need we we enterprise structure both to We the of a importance chain. think cost best no I do defend to supply I we security that. chain commercial don't from of materials, The stay politics we it We unlock today -- to can, rare try at niobium to recognize

just isn't vehicles Department about demand is this electric of and being this less, for So as equipment well? Defense

are would say, in recycle this Yes. player And energy space can the energy out which disruption LFP is pressure which We energy taxpayers. We energy utility storage. is destroyed only profitably, create in energy grid what one storage, storage, swings, our on could by. huge customers, that balance created provided we high the We -- pricing which within we predominantly storages the huge are the country. individuals need we grid probably is for variability, I batteries build to created way the given

as it use prices. the You the top in energy could actually cut peaking, nonpeaking, the off spikes

we're is few, the the of even going growth is environment. profitably and LFP, technology of the I LFP the players battery of in the So today's heart space only recycling very, that battery storage, which really in our can one not to that's be given robust, think, recycle very if on energy

from Asset the Segal comes Steven question KBB next Our with Management. line of

asset You've around other different do on would like the as what's and processes an employees gaining just and about of some that? and upfront think? explained going out there to light, had the all and be royalties ReElement fees you of world you're question be Should one it. chemical return sites produced, licensing I it your it's type for Will we just think a ReElement lot. ReElement

the charge of requirement, them. and can need reduced from spodumene processing earth thousands thousands sheet, building our reduced earth flow supplement necessarily the operate Powered front-end Not no their to it. the years minerals. say other developed, the go being -- of And rare really license replicate there's when people but developed That's oxides, fee we their I ReElement fee, of help when from ago, or to I for ores the elements technology don't in can earth supplement we business. say CapEx and reason a there that commercializing we service we That's critical sheets or will more Technology, us to people. If first a through our lithium up hire are refinery world asked first people's and the mean, fee it's but already if of Yes. not rare said we of largest in broad we deploy rare you we ambitions focus process, by initially and ReElement service our And X not within we -- when the flow started and have a component technology but to flow me sheets.

near and the getting well running, by our cost processing in up our lithium given room earth facility, on of very, high still is lot Marion still as in which a -- focus have and getting very rare site very side structure today's cost markets the Now are pricing. most oxide We processing at where margin, the today's term, and still is good very in a current economic hurt lithium the our pricing. as Kentucky

hybrid it model. a is So

thereafter. see business people in technology building letting becoming it's is facilities then more asset-light an making Our their our out, of deploy and on come these in them operate focus time. facilities money, But and over

the just there Marion, Or be facility same on then And they be of be? competing will will won't Right. eventually? that a different, for you kind the curious and material question, bond Kentucky the have

battery So our focused world. materials. sits have a the And rare recycled partnerships supply as on Marion number then of rare ores, we is Kentucky is from all well earth spodumene, feedstock as on which -- that focused partners earth facility lithium throughout magnets, on

project an from that able to stuff get our way produce rail assets, lithium uniqueness of cost And speak, from we're is enables in but infrastructure Kentucky a as contributed contribution from from and site, our carbonate this up and will doing from lot being load project utilize they're that we empowerment, which Kentucky move respending different our money feedstocks. from appraisal both they substantial to out So in and low quicker to this piping, -- that again. that is a without is to running we're the the infrastructure, all on in project that

right? Got Merian And will be magnets then in then, you. the

well earth end-of-life Marion. rare in earth ores oxides from Rare Yes. as from magnets as

turn to I'd you. floor no the this are Mark further There Thank like comments. to for at closing time. over questions back

creating we revenue where unlock to build thank to and as to make the a today. we Excellent. helped well of we Well, our for I future businesses understand continue or environment, and value well regardless assets and within suited to position lot to near-term external are of efforts well a economic drive the of the partners the our you Ultimately, the this through the we us We models streamline one, continue objectives the today clarify that start to generation a business generate business of as business are of separation of of for value at as value have that by parts ton unlocking moving they're the to for our to very division. want if the the business. sense in I joining grow recession for hit hope a very hit shareholders. any recession, thankful have team don't to all

investor months, the follow the But what us the today. continue look positioning to growth lot have of transparency going. few we're and you showcase doing all to to next in on. over base thank and We to provide joining we a is going help for Please where business I communication

today's teleconference. concludes This

your You this participation. time. at may disconnect for your lines Thank you