Aqua Metals (AQMS) 14 Nov 242024 Q3 Earnings call transcript

Good afternoon, and welcome to the Aqua Metals Third Quarter Financial Results Call. [Operator Instructions] Please note that this conference is being recorded. I will now turn the conference over to our host, Bob Meyers of FNK IR. Bob, you may begin.

Thank you, operator, and thank you, everybody, for joining. issued financial release quarter results XX, Metals update an ended Aqua XXXX. discussing and for today, a providing press operational September Earlier the third company's Investor is section in release aquametals.com. the This on available the website at Relations President Hosting Officer; Chief Officer. and the Financial Executive Chief and Steve Merrill, call are today Cotton, Judd

materially November be summary like report Please differ statements. events disclaims refer as to to the the new company's I Before required update participants and any uncertainties forward-looking during forward-looking on we forward-looking unanticipated would cautions Metals the statements. begin, statements as a by circumstances law. the or that and making The or revise any investors that obligation such Form XX, XX-Q forward-looking not Aqua statements other to specifically filed on remind results of not from company could reflect they place and reliance those to call, for to management will except undue risks, does occur, statements. actual undertake cause to factors

portal question and questions. the after other As taking will investors be and over will submit from be remarks, earlier accepted can press a we releases. reminder, the the webcast all today's formal online phone a provided Questions in analysts using

We available we will time as take our as can slot. in many questions

Metals. And with Aqua is Steve the Steve, that, of I'd like CEO call to turn to the call Cotton, over yours.

joined discuss financing, commercial sustainable position a pleased facility, commercial to recycling and that us the lithium made Thank our share and We're engagements will recycling, discuss the operational initiatives in advancements we've our to solidify We'll achievements quarter QX Metals who bolstered for today. financials. Aqua the significant you, Bob, and efforts last on battery progress which operational leader Judd pilot during thank strategic everyone key you and expansion. Aqua to Metals lithium growth over in as continue at

second, have we commercial loan unique first, securing financing; main and partnerships further focused quarter of long-term objectives: the conference processes; decision, Since our previously demonstrating call our third, the AquaRefining growth. on and second our announced support repeatability X to lithium establishing

our XX-hour has I'll producing We're our that are date, our of capacity the purity. quality. all AquaRefining First, lithium have high-purity announce manufacturers, acknowledged commercial delivered achieved XX.X% samples paving lithium and potential have facility consistently critical our materials. quality with battery-grade of process. meaningful pilot we and multiple of is our about way production operational carbonate consistency pilot excited This of quality to offtakers for over at the operations and validation ongoing facility whom operations talk pilot a lithium the to scale. confident that full-scale recycled To We're battery revenue carbonate recycling

on Moving and commercial strategic our to now initiatives. financing

short-term well securing strides Sierra Campus nonessential as dispositions long-term financing, both capital the asset or In capital in made ARC. as terms of of to AquaRefining Sierra our support we've through expansion

expansions. which the capacity multiple We substantial of as in a commitment one is which the for of have sheets completion as well ARC our plans, growth Sierra place term includes capital future

a success these time. our outlines most supply and we materials Negotiating our a manufacturer. that agreements Holistically, agreement leading of with commercial long-term finalizing supply us believe positions demanding of secure offtake and sheet term efforts. these priority, glove for in our with Another is initiative fits which highest this is battery black our well agreements will a of and processes products, steady financing operational our for recycling hand mass long-term

Sierra the at commercial scale Turning facility. our ARC to at advancements

is reach electrical upgrades, time to enable improvements and switchgear secured. structural, to substantial for made including the have pending building financing. now us utility, activity service of We're final accelerate progress lead critical financing once the preparing all We commissioning, completed and in materially operations and site infrastructure other long commercial

for capital to This is the from once development, believe from to X-quarter finalized. DOE, we're we've past EPA rapid DoD, visits build-out ready be X- quarter industry workforce we date, and and organizations, players and representatives including what key hosted will government a

initial in our year to XX,XXX with operations X,XXX black focus on plans tonnes processing mass in up will Phase of Our tonnes building Phase per X. X scale to

and On to cost efficiency environmental leadership.

sustainability, for us our to manufacturing chemical Finally, our we that working costly want great cost of communities will efficient, methods eliminating is technology. capital our low-cost and compliance, waste much even and commitment achieve byproduct to I savings significant massive traditional environmental what operating process and believe which through into This that which and the environmental quantities we decarbonization. of purchases, highlight is jobs only handling a not creating waste cost comfortable to environment more a product operate. but impacts also in a all sulfate, translates the in recycling generate exceeds opportunity enhances strengthens Unlike while producer in sodium AquaRefining benefits output, streams reducing cost is that

our complete U.S. fruition. is our come look We're samples battery said, and finalizing the financing pilot quickly Phase partnerships primary to partners. I truly will established building, X manufacturers. parallel, the In also we're anticipate agreements recycler partnerships potential scale we additional and operations as of supply existing commercial the and facility Aqua to Once advancing ARC further sharing optimistic to our X supply about to with focus representative the commissioning momentum and secure within the customer technology facility X to forward financing first in funded, our validate continue updates feedstock Metals to battery milestones to battery-grade goal to of with X Phase commercial scale positioning we As becoming lithium We're the and build-out. on Sierra quarters, and

the Metals In to extend want for and their hard our to gratitude dedication Aqua I closing, team work.

and the ARC on and This the stakeholders, and here minerals leaders to other U.S. focused Sierra industry quarter's responsible growth building environmentally supply sustainable driving our critical accomplishments right of energized commitment response financially foundational the technology in battery recycling the our company to chain. U.S. reflect progress our online from by and a we're and in resilient, We're scalability bringing

for discuss quarter. financials turn Judd now to I'll to the over it Merrill, CFO, our

Thanks, Steve.

comments Let quarter the approximately with cash our $X me my sheet. million. We of balance ended with total start

One split. changes reverse statement the the of the the the is stock balance sheet effect and of stockholders' of to more noticeable equity

enable the and pre-split are included During became November listing we meet the All stock was NASDAQ to on our split stock split implemented a post-split share the presented. This requirements. amounts in from reverse the split a period quarter, us to been The split earliest stock at for effective as stock presented one of XX of of reverse XXXX. had effective the ratio reverse beginning X, share if per stock XX-Q every common share done shares.

for X due million for reduction in a the the compared completed related operations payroll sheet so approximately For this quarter only and for $X.X payroll-related and quarter, in The decrease we months. to $X.X minor XX, changes XXXX, million quarter, as were an which previous fees represents the to our June will This August ended quarter was during the there were plant statement. move decrease costs approximate on I balance XXXX. to to income to the X% force a

the in We operation further costs expect in quarter. fourth plant decrease

year-to-date. year, General and to prior the and administrative quarter changed expense both little compared were

about and We per this base expected into QX costs head to base costs in be to decrease XXXX. to quarter month are $XXX,XXX for expect and we G&A as into G&A $XXX,XXX operating and XXXX. Total

share to per of per Reflecting negative the compared diluted for net stock $X.XX the basic negative split, million approximately diluted for of XX, the and September effects same basic ended million in share a reverse was and X our quarter XXXX. the $X.XX a $X.X loss XXXX, a months loss $X.X net or or

million for period per basic share to a negative approximately per and a and ended XXXX. months X $XX.X $X.XX loss or XX, Our net XXXX, a diluted share loss $X.XX for basic same the was diluted net the in of September negative million or $XX compared

Cash concludes slightly used provided in That financing on quarter. not and decrease to financials. operations by the company remarks compared in to decreased expected quarter Cash coming and did from the activities cash prior change used in my investing prior activities further the quarter. is the significantly

I will back to for turn it the Q&A. moderator now over

come questions Wainwright. first from line the H.C. Sameer with Our Joshi Instructions] [Operator of

going the was about ask I you So DOE visits. to

that I the I was the the that expected of don't status grant a grant towards project. Phase know is think X of what was there now. right

The Yes, question. Sameer, the already Steve. grant and we [ Thanks ] that Musk out, this selected not latest round. for for went announcements is were

that, However, I that physical the about various like earlier. we was have agencies the and been engaging talking visits things plant with with to

Metals So we're know to work continue grant receive those to bullish to to opportunity dollars further. departments as our get with we Aqua various future on

But of of investor. categories? of what types did looking there at structures being Got a stage Are status discussed? multiple a are it. strategic the including table financing, the these you of And you of at and mention for each for are kind investors that the just describe it, long-term couple And parties progress? can

perspective. So a in quite only and but is it and in ARC, with to since point part the can't path we really in strategically and side is structure I speaking And from Phase to at we've Phase capital build-out for on tonnes to which the time. a have to at space fund that and the to get comment August while. work folks of is this to X our long-term not XX,XXX path a and patient financial Sierra been strategic mentioned flight interest earlier, the as looking But of the the X, great

having levels we report that's really and great too prioritized, long we've now. what that's from not So and a to great have taking in of our discussions more detail amount to time, of there expect great we're

side, the is that to have as as we be to that multiple provide are carbonate get recycler we when a, in the the only and samples detail providing levels agreements just long-term been importantly, looking OEMs lithium we glove a at able consistently players lithium provide offtake the that American opens and battery And to battery-grade grade that great recycled in And financing is, go this seem commercial discussions the a in commercial On feedstock mentioned, we feedback is up battery-grade carbonate. industry. deal, consistent I big you're course, of and and facility. of the for that, that North hand

that those So together. all and output input, processing put you economics have

not capacity to be cost process even still at much of as terribly per amount the a suppressed Fortunately, think prices, as metals of produce expenditure for because tonne today's well for more is we a for goes level. could that conversion longer through CapEx time, favorable we it, processes of going with plant per tonne which extending our material other are cash than the much

quickly XX,XXX the X,XXX of more critical from funding get getting funding is the strategy. the So that important part scale to to a means more the finding and is our

more on activities as into commercial end report next to we and So able the and early expect towards the year. be part to -- we get financing next of

one And for last one Understood. then probably Judd.

Is a expenses? I think $XXX,XXX were G&A is expenses. include $XXX,XXX cash it mentioned and in operations to does month you Or it this referring -- that R&D well? all-inclusive the as to only the plant you of

G&A is is and and needs trying done of now. getting down a way right this cost. This good burn No, to operations. we've And kind total our cash job that manage

everything. that And includes so

And whenever for did the needed? be can you What -- so operations operations, without to mention lower. the plant reach you that levels expect you you like can them restart

So what again? that say just you level? Can

I $X.X for plant -- think like Yes, operations. at million were you

mean, Kind point similar QX ramping people. and had we'll needs start good ramping back at -- of Yes. we were if of start -- look hired we once of Yes. a at see cost kind up up kind similar I is most and our see I cash had that We of that back and we plant the up, we'll before. example. mean again

similar So once things to that's on. I we we kind think of back what turn expect

the to I'm webcast. phone. questions you further pass the to back like submitted Instructions] not showing call [Operator on via the questions for I'd any any Bob,

Sure.

bit question, talk can you reverse stock little First about why the more a split? you executed

regain take NASDAQ compliance The requirements. to reason with I'll primary the Yes, listing question. was that Bob,

even have have or to lithium-related had order this the will NASDAQ particularly probably rule. to that in do to companies, many deal listing and So industry those microcap in is maintain with that something that the

And that's what so we did.

advance financing the something it. great but confidence a this Is agreement? news. will you particular to gives that sheet that there Got And signed touched is this was upon, in term

this not we've Yes, desire our that make the take -- the short goal long and I'll about This is sure term. our fund in that. but in to just we talked only term,

runs modeling And a goal. software of internally and and effort so we all of certain of We've pilot and extended spend that area. in doing organizing lot our done time in purchasing this with like terms operation, things

amount to secure future. And so there's a done being our that's tremendous work of

but optimism, us gives work to do. that there's still so And

well do next you commissioning talk the secure everything it. long-term bit schedule about the and more goes assuming question, a Sierra can The Got ARC? funding, you little for

Yes, that take this I'll Steve. Bob, one. is

been start would of installed dependent, in the of equipment our And to our we mentioned building years. to of reflection in and others lot saying the to a for I do Sierra within us operations upon So funding. do with ready time first confidence commissioning And successfully in in the we remarks, equipment doing on And that vendors' the really and and be really industry a as ability strategically unique of capital of and chose order have that market X ramp and a to really commissioned. nearly can X interesting our and to quarters. course, project for our ARC rapid placement phase consistent warehouses reach that we the is get gives have ready quickly X to compared pilot that to that's earlier we sitting now a because lot warehouses

a upfit with producer So first into certainly we've already for the even materials believe, with will seen, American of what be acquisition that's truckloads industry for industry as real being that head et delays battery-grade of designs, the cetera. believe and North position I but critical that Metals, frustrating that leadership equipment the only with and us that finalized of U.S. even and put in This, materials. industry. puts a in first whole, the And us that, we've an gotten battery Aqua shipping building and really position leadership we not the would entire start

commercial on funding, your tell Great. can about following us the question, The next more you on, development?

Yes.

our even grade technical discussions, being ones OEMs really provide materials or that to a technical has produce been versus even and is discussions. that That to supply able we've grade detailed have lower those the order battery-grade in repeatedly those. offtake carbonate event consistently are So bolstered what's to really than lithium we're told qualifying and called materials other able to and

only serious. even recycler America We've told this. North able So been very those engagements really are in the to to been do that we're have

to are We're is in hand talks And with commercial to it all fits next. or later glove. talks. in And And fit hand because glove We're as I earlier, year side. that early just in mentioned financial all the even and it be development all funding parties expect we in together see the not commercial on and the this able through. with further in together we'll update talks and this talks in thing commercial

them partnerships, in materials. other time regarding question, with recycled to particular, and support XK Next the line

Yes.

to of continue So XK, lot quarter. and we with work partner, past we've made this progress our a in great

that XK metals active to and metals, providing we've lithium along producing or relationships. addition CAM material in same that of for OEMs, nitrated battery-grade from with their nonrecurring OEM the engineering them project been provided inclusive we so for And process, project directly of NRE battery-grade recycled our developed carbonate also samples the they've to cathode or

counterparties engaging evidenced quarter And believe, we're quite and really truly the we we the discussions the supply in past chain that provided, mentioned of recycled and can cost to OEM just earlier. I we've as few And content decarbonized through factor. right U.S. partnership some various lowest this China samples that together, addition here those compete together, with in direct a that

goals advantage. really we're here a cost XK battery together minerals for with excited critical the environmental right the about with of securing and U.S. future achieving in So that lot

lead? in the think as as bit discuss you industry little of well have that leaders government more you and you Can outlined detail, might several Great. those agencies some a visited plant where discussions

an Yes. our Well, ARC as innovation visiting representatives visit center the DOE, from just and this from DoD, quarter and operating our benefits it that highlighted center we was our the well and the the And to that's development, will their that, comfort help various basis. environmental relationship great agencies within government our really of facility. go-forward they and right from for costs, facility battery-grade as a past materials as safety innovation worker advantages We with plant our build that the workforce visited. EPA and -- producing Sierra before community benefits think pilot eyes critical on impactful in operating have the quite

ought cost And that let's remember agencies, expect deal a those grant continued do further conversations also great share. efforts. to we've those require visits with to our subsequent us we interaction that help And grants to support had ongoing and

awarded that's significant to a have to a is any share. company grant cost So going provide

to order have right the share. to support you in have partner financial cost So strategic that

support their the hand impact how to does that Well, dollars for feel awarded government that's the so mentioning going be company the So required seen We to basis. really companies I in able financing capital and on to some together go-forward cost that be to share. go as strategic to grant commercial going is going been was because to earlier, a what's we've get that they're the wondering this supporting think glove. where and comfortable is cost share large companies and overall have everybody provisionally

Thank you.

with processed is is that producing? question. Metals material Aqua happening Next currently the What

Yes.

the materials between talking various about So are tonnes we we've being XX pilot overall today design XXX facility, and is materials are The that producing et cetera. these of year. these the sent to samples OEMs, capacity those and to been capacity per

a tonnes amount. giant is not truckload. they're So XX

that as evaluation year, pumps, process prime materials sampled of for them our a meaningful the and of hands the to over OEMs to kind it, facility. call of commercial help a working for well of the capital we'll as produced, their into is So getting some do quantities

a valuable much tiny trickle important take of that we've small, to but to we that that not because than develop much path it's more revenue be relationships. commercial materials of have and those and could to the chosen more we market could So seed amount that's reporting, go finite

the been So really the at what's facility. that's materials happening with

all is closing call the to time for the for That you. today. to Steve have Thank hand questions back remarks. over any Cotton we like I'd

very and continuing to reporting to for forward Thanks, look we'll I news more sooner. today, busily everybody, our having interest talking the and we thanks, about working quarterly or are Metals. as in away Well, soon future think Great. update in And support have been lot we a near in Aqua and report what next we've your everyone.

Thank We you. today's That participation. appreciate does your teleconference. conclude

You may your this lines rest at Enjoy day. of disconnect time. the your