Electra Reports Q3 Results and Provides Update on Cobalt Refinery Project and Black Mass Recycling Demonstration
November 09 2022 - 6:50PM
Business Wire
Electra Battery Materials Corporation (NASDAQ: ELBM; TSX-V:
ELBM) (“Electra” or the “Company”) today announced the filing
of its financial results for the third quarter ended September 30,
2022, and provided an update on the commissioning of its cobalt
refinery and launch of its black mass recycling demonstration
plant. All amounts are in Canadian currency unless stated.
“Our performance in the third quarter was marked by considerable
progress against our strategy and each of our primary objectives,”
said Trent Mell, Electra’s CEO. “Most notably, we signed a
definitive supply agreement with LG Energy Solution, the world’s
second-largest EV battery manufacturer, completed more than 85% of
the recommissioning of existing brownfield equipment at our battery
materials refinery complex, confirmed cobalt mineralization at a
second zone located in close proximity to our flagship deposit in
the Idaho Cobalt Belt, and completed a scoping study on the
production of nickel sulfate at our battery materials refinery
complex that suggested compelling economics. This progress is
considerable for a company of our size and is indicative of the
level of commitment by our employees to sustain the first mover
advantage Electra has established.”
Mr. Mell added, “The adoption of the U.S. Inflation Reduction
Act provides strong incentives for the onshoring of the EV battery
supply chain, which is already proving to be an important tailwind
for our near-term prospects.
“In the coming weeks, we expect to launch our black mass
recycling demonstration plant where we will apply our lab-tested
hydrometallurgical process to separate up to 75 tonnes of
high-value material contained in recycled lithium-ion batteries
into discrete metals, including nickel, cobalt, copper, graphite
and lithium, for resale and new cashflow opportunities. This
demonstration plant will run in parallel with the ongoing
commissioning of our cobalt sulfate refinery, the first of its kind
in North America, which is expected to be completed in the spring
of 2023.”
Mr. Mell concluded, “Over the longer term, we are encouraged by
the opportunities to expand into nickel sulfate production at our
refinery in Ontario giving the findings of our scoping study and
expand into cobalt sulfate production in Bécancour, Quebec based on
preliminary work completed to date.”
ELECTRA Q3 2022 HIGHLIGHTS AND DEVELOPMENTS
- Held cash and marketable securities of $19.7 million as at
September 30, 2022, down from $41.8 million as at June, 2022.
Electra’s cash balance at the end of Q3 does not include the
remaining $6.7 million of government investments expected to be
received or $16.8 million of available funding from the Company’s
At-the-Market (“ATM Program”) program.
- Total incurred costs for the refinery construction project for
the quarter were $18.8 million.
- Net loss for the period was $7.6 million or $0.24 per basic
share. These compare to a loss of $10.5 million or $0.37 per basic
share for Q3 2021.
- Signed a three-year agreement to supply 7,000 tonnes of battery
grade cobalt to LG Energy Solution, a leading global manufacturer
of lithium-ion batteries for electric vehicles, beginning in
2023.
- Made progress towards the launch of a black mass recycling
demonstration plant at the Company’s Ontario refinery complex.
Under the parameters of the demonstration, which is expected to be
launched in the coming weeks, Electra plans to process up to 75
tonnes of material in a batch mode and anticipates the recovery of
high-value elements found in lithium-ion batteries, including
nickel, cobalt, lithium, copper, and graphite.
- Confirmed cobalt mineralization at its Ruby prospect, which is
located 1.5 kilometres from Electra’s primary Iron Creek deposit,
following receipt of assay results from the summer exploration
program in the Idaho Cobalt Belt. Assay results and exploration
work completed to date support the launch of a more extensive drill
campaign to determine the full extent of Ruby’s
mineralization.
- Released highlights of a scoping study prepared by a global
engineering firm that supports the creation of an integrated
electric vehicle battery materials park in Ontario consisting of
nickel, cobalt, manganese refining, recycling of battery black mass
material, and precursor cathode active material (pCAM)
manufacturing. The scoping study assessed the economics and carbon
footprint of various nickel feed options to develop an integrated
facility producing 10,000 tonnes per annum of battery grade nickel
sulfate and pCAM components essential to the production of EV
batteries.
- Signed a benefits agreement with the Métis Nation of Ontario
that will provide employment, training, procurement, and business
opportunities related to the construction and expansion of
Electra’s battery materials refinery north of Toronto.
- Issued a total of 78,100 shares on the TSX Venture Exchange at
an average price of $4.2438 per share and 100,800 shares on the
Nasdaq Capital Markets at an average price of USD$3.3121 per share
during Q3 2022 under its ATM Program launched in January 2022,
providing gross proceeds of $330,950.68 and USD$333,861.63,
respectively. Commissions of $8,273.75 and USD$8,346.56 were paid
to CIBC World Markets Inc. and CIBC World Markets Corp.,
respectively, in relation to these distributions.
Highlights Subsequent to Quarter End
- Successfully completed the recommissioning of material handling
and lime delivery systems, two key circuits that will be part of
Electra’s hydrometallurgical process to be used in the pending
black mass demonstration plant.
- Issued a request for a proposal for the purposes of identifying
an engineering firm to complete a prefeasibility study on the
development of cobalt sulfate refinery in Bécancour, Quebec.
Selection of the engineering firm is expected before end of year
with completion of the study expected in the second half of
2023.
- Launched a marketed offering of units for total gross proceeds
of up to US$5.5 million (~CAD$7.4 million) to be used to fund the
commissioning of Electra’s cobalt sulfate refinery.
For complete details of the consolidated financial statements
and the associated management’s discussion and analysis, please
refer to the Company’s filing on SEDAR (www.sedar.com) or the
Company’s website (www.ElectraBMC.com).
Electra will host a conference call on November 10, 2022 at 9:00
am ET to review its third quarter performance and discuss near-term
outlook.
Dial-in and Webcast Details:
- North American dial-in number:
1-800-319-4610 - International dial-in number: 1-604-638-5340 -
Webcast and slide presentation:
https://ElectraBMC.com/category/events/
About Electra Battery Materials
Electra is a processor of low-carbon, ethically-sourced battery
materials. Currently commissioning North America’s only cobalt
sulfate refinery, Electra is executing a multipronged strategy
focused on onshoring the electric vehicle supply chain. Keys to its
strategy are integrating black mass recycling and nickel sulfate
production at Electra’s refinery located north of Toronto,
advancing Iron Creek, its cobalt-copper exploration-stage project
in the Idaho Cobalt Belt, and expanding cobalt sulfate processing
into Bécancour, Quebec. For more information visit
www.ElectraBMC.com.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements and
forward-looking information (together, “forward-looking
statements”) within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as “plans”,
“expects', “estimates”, “intends”, “anticipates”, “believes” or
variations of such words, or statements that certain actions,
events or results “may”, “could”, “would”, “might”, “occur” or “be
achieved”. Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance, and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for Electra Battery Materials
Corporation, filed on SEDAR at www.sedar.com. Although Electra
Battery Materials Corporation believes that the information and
assumptions used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, Electra Battery Materials Corporation disclaims any
intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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version on businesswire.com: https://www.businesswire.com/news/home/20221109006079/en/
Joe Racanelli Vice President, Investor Relations
info@ElectraBMC.com 1.416.900.3891
Electra Battery Materials (NASDAQ:ELBM)
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