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, is pleased to provide an update on the execution of
its corporate strategy.
Corporate Strategy
5E’s corporate strategy is to become a fully
integrated global leader in the production of high-value,
high-margin boron and lithium advanced materials that enable three
global mega-trends in decarbonization, food security, and securing
the U.S. domestic supply of critical materials. 5E is currently the
only substantially permitted company with an integrated business
model underpinned by a large domestic source of boron and lithium.
This will deliver a number of unique advantages with respect to
control of supply, product development and a superior cost position
relative to other foreign and domestic producers. In recognition
for the importance of the Company’s boron and lithium assets, 5E
has renamed the Fort Cady area to “5E Boron Americas (Fort Cady)
Complex.”
5E is also expected to benefit from a long-term
competitive advantage driven by geology in the context of limited
new sources of boron available globally against a tightening
market, evidenced by geopolitical supply risk and rising prices.
This proposition is supported by anecdotal evidence from market
participants suggesting a major global boron producer has signalled
a further price increase in CQ1 2023.
Key objectives from the corporate strategy
include:
- Mechanical
completion of the SSBF in CQ4 2022 to enable optimization of the
large-scale complex, product qualification, and feedstock for the
initial production of boron advanced materials;
- Identification
of best value market opportunities for boron and lithium advanced
materials products;
- Completion of
value engineering and operational optimization for initial
meaningful production of boron and lithium;
- Initial
production of boron advanced materials to establish market position
and demonstrate competitive advantages in high-value, high-margin
products; and
- Execution of
non-dilutive financing that incorporates consideration of U.S.
government grants and loans, project financing, corporate and green
bonds, and customer prepayments linked to the supply of lithium
and/or boron for decarbonisation and fertiliser applications and
more broadly advanced materials.
Small-Scale Boron Facility
(“SSBF”)
Mechanical completion of the SSBF remains on
track for CQ4 2022. The site currently has a construction workforce
of 70 people, inclusive of 5E employees. This workforce is expected
to increase to approximately 200 people in November and December
2022. See below images of SSBF construction as of October 2022.
Lithium Co-Product Commercial
Discussions
On August 16, 2022, the Inflation Reduction Act
of 2022 (“IRA”) was signed into law by U.S. President Joseph Biden.
Among other initiatives, this Act provides significant tax
incentives for energy and climate change initiatives where
materials are sourced from the U.S. or countries with which the
U.S. has a Free Trade Agreement. This has resulted in substantial
interest in U.S. sources of battery metals, including lithium.
5E’s Boron Americas (Fort Cady) Complex contains
one of the only new, large sources of substantially permitted
lithium in the U.S. amidst challenging supply and demand
fundamentals, and as such discussions have been developing with
potential customer partners.
Boron Advanced Materials
Strategy
Significant progress has been made with respect
to the Company’s boron advanced materials strategy. The Company is
focused on high-value, high-margin, and future facing applications
that require boric acid as the enabling material.
Three boron advanced materials families have
been identified as the Company’s initial focus with a collective
addressable market value of approximately $1 billion. The Company
is now focused on pursuing the best market opportunity for the
internal production of boron advanced materials using the boric
acid produced from the 5E Boron Americas (Fort Cady) Complex.
U.S. Investor Relations
Initiatives
The Company is working on multiple initiatives
to broaden market knowledge of boron and 5E’s unique boron and
lithium opportunity in U.S. markets. Multiple resources are
currently working on investor engagements and the Company has been
pleased with early feedback on its marketing initiatives.
The Company has a program of marketing
initiatives through November 2022, including Baird’s 2022 Global
Industrial Conference and Benchmark Week, and is excited by the
prospect of introducing a unique boron and lithium opportunity to
U.S. investors.
Authorized for release by:
David Salisbury, Chairman of the Board of Directors
For further information contact:
Chance Pipitone |
J.T.
Starzecki |
Chris
Sullivan |
Investor Relations |
Chief Marketing Officer |
Media |
cpipitone@5eadvancedmaterials.com |
jstarzecki@5eadvancedmaterials.com |
chris@macmillancom.com |
Ph: +1 (346) 433-8912 |
Ph: +1 (612) 719-5076 |
Ph: +1 (917) 902-0617 |
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 5E Boron
Americas Complex, 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.
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/d7f8d49b-4027-4f94-859a-195df34f01b9.
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