5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) (“5E” or the
“Company”), a boron and lithium company with U.S. government
Critical Infrastructure designation for its 5E Boron Americas (Fort
Cady) Complex, today announced its financial results for the
quarter ended September 30, 2022. The Company also invites
shareholders and interested parties to a pre-recorded Investor
briefing to be released on the Company’s website on Wednesday,
November 16, 2022 at 4:30pm EST.
First Quarter 2023 Financial
Highlights:
As of quarter-end, the Company maintained a cash
balance of $74.2 million and an available cash balance of $64.2
million. Construction in progress was $33.3 million, compared to
$25.6 million in the prior fiscal quarter ended June 30, 2022 as
the Company advances construction of the SSBF.
Project expenses decreased 25% year-over-year,
primarily due to a $4.2 million reduction in drilling activity for
water monitoring wells, partially offset by a $3.0 million increase
in plugging, abandonment, and other site expenses. General and
administrative expenses decreased by 16% year-over-year, primarily
driven by $2.0 million of non-recurring costs incurred during the
three months ended September 30, 2021 relating to the Company’s
Nasdaq listing and reorganization. The absence of these costs
during the last reported period were partially offset by a $0.3
million increase in liability insurance and $0.6 million increase
in salaries and benefits due to an increase in predominantly
operational headcount from 11 at September 30, 2021 to 27 at
September 30, 2022. Research and development expenses increased
year-over-year as the Company progressed its advanced materials
strategy and depreciation and amortization expenses increased as
the Company began placing assets into service.
During the quarter, the Company recognized a
$13.9 million unrealized gain resulting from the change in fair
value of the convertible note derivative liability. Interest
expense increased due to the issuance of the convertible note and
inclusion of $0.6 million of debt issuance cost amortization, while
interest income increased after purchasing a certificate of deposit
in September 2022.
|
Three Months Ended September 30, |
|
|
Variance |
|
|
2022 |
|
|
2021 |
|
|
$ |
|
|
% |
|
|
($ in thousands) |
|
COSTS AND EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
Project expenses |
$ |
3,595 |
|
|
$ |
4,786 |
|
|
$ |
1,191 |
|
|
|
25 |
% |
General and
administrative |
|
4,886 |
|
|
|
5,841 |
|
|
|
955 |
|
|
|
16 |
% |
Research and development |
|
39 |
|
|
|
— |
|
|
|
(39 |
) |
|
N/A |
|
Depreciation and amortization
expense |
|
37 |
|
|
|
20 |
|
|
|
(17 |
) |
|
|
-85 |
% |
Total costs and expenses |
|
8,557 |
|
|
|
10,647 |
|
|
|
2,090 |
|
|
|
20 |
% |
LOSS FROM OPERATIONS |
|
(8,557 |
) |
|
|
(10,647 |
) |
|
|
2,090 |
|
|
|
-20 |
% |
NON-OPERATING INCOME
(EXPENSE) |
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
14 |
|
|
|
10 |
|
|
|
4 |
|
|
|
40 |
% |
Interest income |
|
61 |
|
|
|
1 |
|
|
|
60 |
|
|
* |
|
Derivative gain (loss) |
|
13,909 |
|
|
|
— |
|
|
|
13,909 |
|
|
N/A |
|
Interest expense |
|
(821 |
) |
|
|
(2 |
) |
|
|
(819 |
) |
|
* |
|
Net foreign exchange gain
(loss) |
|
— |
|
|
|
1,169 |
|
|
|
(1,169 |
) |
|
|
-100 |
% |
Total non-operating income (expense) |
|
13,163 |
|
|
|
1,178 |
|
|
|
11,985 |
|
|
NM |
|
NET INCOME (LOSS) |
$ |
4,606 |
|
|
$ |
(9,469 |
) |
|
$ |
14,075 |
|
|
|
-149 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
* Represents a percentage change greater than
+/- 300%
About 5E Advanced Materials,
Inc.
5E Advanced Materials, Inc. (Nasdaq: FEAM) (ASX: 5EA) is focused
on becoming a vertically integrated global leader and supplier of
boron specialty and advanced materials, complemented by lithium
co-product production. The Company’s mission is to become a
supplier of these critical materials to industries addressing
global decarbonization, food and domestic security. Boron and
lithium products will target applications in the fields of electric
transportation, clean energy infrastructure, such as solar and wind
power, fertilizers, and domestic security. The business strategy
and objectives are to develop capabilities ranging from upstream
extraction and product sales of boric acid, lithium carbonate and
potentially other co-products, to downstream boron advanced
material processing and development. The business is based on our
large domestic boron and lithium resource, which is located in
Southern California and designated as Critical Infrastructure by
the Department of Homeland Security’s Cybersecurity and
Infrastructure Security Agency.
Forward Looking Statements and
Disclosures
This press release includes “forward-looking
statements” within the meaning of the Private Securities Litigation
Reform Act of 1995, as amended. All statements other than
statements of historical fact included in this press release
regarding our business strategy, plans, goal, and objectives are
forward-looking statements. When used in this press release, the
words “believe,” “project,” “expect,” “anticipate,” “estimate,”
“intend,” “budget,” “target,” “aim,” “strategy,” “estimate,”
“plan,” “guidance,” “outlook,” “intent,” “may,” “should,” “could,”
“will,” “would,” “will be,” “will continue,” “will likely result,”
and similar expressions are intended to identify forward-looking
statements, although not all forward-looking statements contain
such identifying words. These forward-looking statements are based
on 5E’s current expectations and assumptions about future events
and are based on currently available information as to the outcome
and timing of future events. We caution you that these
forward-looking statements are subject to all of the risks and
uncertainties, most of which are difficult to predict and many of
which are beyond our control, incident to the extraction of the
critical materials we intend to produce and advanced materials
production and development. These risks include, but are not
limited to: our limited operating history in the borates and
lithium industries and no revenue from our proposed extraction
operations at our properties; our need for substantial additional
financing to execute our business plan and our ability to access
capital and the financial markets; our status as an exploration
stage company dependant on a single project with no known
Regulation S-K 1300 mineral reserves and the inherent uncertainty
in estimates of mineral resources; our lack of history in mineral
production and the significant risks associated with achieving our
business strategies, including our downstream processing ambitions;
our incurrence of significant net operating losses to date and
plans to incur continued losses for the foreseeable future; risks
and uncertainties relating to the development of the Fort Cady
project, including our ability to timely and successfully complete
our Small Scale Boron Facility; and other risks. Should one or more
of these risks or uncertainties occur, or should underlying
assumptions prove incorrect, our actual results and plans could
differ materially from those expressed in any forward-looking
statements. No representation or warranty (express or implied) is
made as to, and no reliance should be place on, any information,
including projections, estimates, targets, and opinions contained
herein, and no liability whatsoever is accepted as to any errors,
omissions, or misstatements contained herein. You are cautioned not
to place undue reliance on any forward-looking statements, which
speak only as to the date of this press release.
For additional information regarding these
various factors, you should carefully review the risk factors and
other disclosures in the Company’s Form 10-K filed on September 28,
2022. Additional risks are also disclosed by 5E in its filings with
the U.S. Securities and Exchange Commission, throughout the year,
including its Form 10-K, Form 10-Qs and Form 8-Ks, as well as in
its filings under the Australian Securities Exchange. Any
forward-looking statements are given only as of the date hereof.
Except as required by law, 5E expressly disclaims any obligation to
update or revise any such forward-looking statements. Additionally,
5E undertakes no obligation to comment on third party analyses or
statements regarding 5E’s actual or expected financial or operating
results or its securities.
Authorized for release by:
David Salisbury, Chairman of the Board of Directors
For further information
contact:
Chance PipitoneInvestor Relations cpipitone@5eadvancedmaterials.com
Ph: +1 (346) 433-8912 |
J.T. StarzeckiChief Marketing
Officerjstarzecki@5eadvancedmaterials.comPh: +1 (612) 719-5076 |
Chris SullivanMediachris@macmillancom.comPh: +1 (917) 902-0617 |
|
|
|
5E Advanced Materials (NASDAQ:FEAM)
Historical Stock Chart
From Mar 2024 to Apr 2024
5E Advanced Materials (NASDAQ:FEAM)
Historical Stock Chart
From Apr 2023 to Apr 2024