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
Complex, today announced the selection of Fluor Corporation
(“Fluor”) as the Company’s engineering, procurement, and
construction (EPC) services provider. The initial scope of Fluor
will be to lead FEL-2 which will directly feed into the upgrading
of the Company’s current S-K 1300 technical document into a
Pre-feasiblity Study (PFS) upon completion.
On May 11, 2023, the Company released the
results of its S-K 1300 technical document on its 5E Boron Americas
Complex located in Fort Cady, California.
Highlights of that study include:
- Measured, Indicated and Inferred
Resource with 13.97 million short tons boric acid and 0.31 million
short tons of Lithium Carbonate (LCE)
- US$101.2 million EBITDA and 62.1% EBITDA margin in FY 2027
- Post-tax NPV8 of US$2.4 billion and IRR of 22.6%
- Phase 1 targets production of 90,000 short tons of boric acid
and 1,100 short tons of lithium carbonate with a targeted go-live
date of the H2 2026
Susan Brennan, CEO of 5E Advanced Materials,
stated, “We are thrilled to engage a worldclass EPC firm like
Fluor, as their extensive track record will serve to be invaluable
to 5E throughout this next phase of execution. Additionally, the
work being conducted by Fluor will play an important role in
ultimately getting our 5E Boron Americas complex to the planned
PFS-level study. With 5E’s recent successful recapitalization, and
commencement of mining operations earlier this year, this
relationship further advances 5E into the next stage of project
development as we continue to work towards our vision of
successfully building a large-scale Boron and Lithium
operations.”
“Fluor is excited to support 5E on this project,
which once operational, will meaningfully contribute to US domestic
supply of lithium, boron and other critical materials,” said
Michael Woloschuk, Executive Director, Critical Minerals of Fluor’s
Mining & Metals business line. “Vertical integration of such
minerals into a full value chain for advanced materials will
strengthen domestic supply chains for high value applications
within various sectors like electric transportation, renewable
energy, food and domestic security."
About Fluor
With a global presence across key mining
jurisdictions, Fluor is a leader in developing innovative solutions
for the most complex projects around the world. Sophisticated
mineral processing solutions are instrumental in improving
technoeconomic feasibility, optimizing recovery grades, operational
efficiency, and minimizing waste. Fluor’s ability to cover every
stage from mine to market is a key capability in supporting 5E in
becoming a vertically integrated global leader in BORON+ advanced
materials with a focus on enabling decarbonization.
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
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 dependent 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; our ability to successfully
implement the the out of court restructuring transaction; the
implementation of and expected benefits from certain reduced
spending measures, and other risks and uncertainties set forth in
our filings with the U.S. Securities and Exchange Commission from
time to time. 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 August 30,
2023. 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.
For further information contact:
Davis Snyder or Joseph CaminitiAlpha IR GroupFEAM@alpha-ir.comPh:
+1 (312) 445-2870 |
J.T. StarzeckiChief Marketing
Officerjstarzecki@5eadvancedmaterials.comPh: +1 (612) 719-5076 |
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