5E Advanced Materials Inc (FEAM) 2025 Q4 法說會逐字稿

Good day, and welcome to the 5E Advanced Materials fiscal year 2025 year-end results conference call. (Operator Instructions) Please note, today's call is being recorded.

大家好，歡迎參加 5E Advanced Materials 2025 財年年終業績電話會議。（操作員指示）請注意，今天的通話正在錄音。

Before we begin, I would like to remind everyone that today's discussion will include forward-looking statements. These statements are based on current expectations and assumptions and subject to risks and uncertainties that may cause actual results to differ materially. For more information on these risks, please refer to the company's filings with the Securities and Exchange Commission. 5E Advanced Materials undertakes no obligation to update or revise any forward-looking statements.

在我們開始之前，我想提醒大家，今天的討論將包括前瞻性陳述。這些聲明是基於當前的預期和假設，並受可能導致實際結果大不相同的風險和不確定性的影響。有關這些風險的更多信息，請參閱公司向美國證券交易委員會提交的文件。5E Advanced Materials 不承擔更新或修改任何前瞻性陳述的義務。

At this time, I would now like to turn the call over to Paul Weibel, Chief Executive Officer of 5E Advanced Materials. Paul, please go ahead.

現在，我想將電話轉給 5E Advanced Materials 執行長 Paul Weibel。保羅，請繼續。

Good afternoon, and thank you for joining us today. Fiscal year 2025 has been a transformative year as we move from development to commercial readiness. We achieved broad validation across our project from the SK-1300 pre-feasibility study to customer qualifications and supply chain milestones. Before I go into detail, let me summarize the key achievements from fiscal year 2025. Strong project economics have been validated. Our recently published pre-feasibility study for Phase 1 only confirms a 39.5 year mine life with a robust after-tax NPV of $725 million and a 19% project IRR.

下午好，感謝您今天加入我們。2025 財年是我們從開發階段走向商業準備階段的轉型之年。我們在整個專案中獲得了廣泛的驗證，從 SK-1300 預可行性研究到客戶資格和供應鏈里程碑。在詳細介紹之前，讓我先總結一下 2025 財年的主要成就。強大的項目經濟效益已得到驗證。我們最近發布的第一階段預可行性研究僅確認了 39.5 年的礦場壽命，稅後淨現值為 7.25 億美元，專案內部報酬率為 19%。

Commercial front, we have successfully qualified our high-purity boric acid with 14 customers across multiple segments and have now advanced to full-scale production testing with a Tier 1 specialty glass manufacturer. On the financing front, we received a nonbinding LOI from USXM for a potential $285 million project debt facility, a major step towards securing funding for Phase 1 construction. And in regards to on track for being -- towards the project FID, we now have milestones and are well positioned to advance towards FEED engineering and a final investment decision in mid-2026.

在商業方面，我們已成功為多個領域的 14 位客戶提供了高純度硼酸認證，目前已與一級特種玻璃製造商合作進行全面生產測試。在融資方面，我們收到了 USXM 的一份非約束性意向書，該意向書涉及潛在的 2.85 億美元項目債務融資，這是確保第一階段建設資金的重要一步。就專案 FID 的進展而言，我們現在已經取得了里程碑式的進展，並已做好準備，在 2026 年中期推進 FEED 工程並做出最終投資決定。

Today, I will cover these four areas in more detail and discuss the upcoming fiscal year 2026. First, the recently published SK-1300 PFS provides a strong validation of the scale, economics and longevity of our Ford Cady resource and reserve. This study covers Phase 1 only, not including future expansions or higher-value boron derivatives. The results underscore the strength of our project fundamentals. The project shows a pretax NPV of approximately $725 million with a 19% project IRR.

今天，我將更詳細地介紹這四個領域，並討論即將到來的2026財年。首先，最近發布的 SK-1300 PFS 有力地驗證了我們的福特 Cady 資源和儲備的規模、經濟性和壽命。本研究僅涵蓋第一階段，不包括未來的擴展或更高價值的硼衍生物。結果凸顯了我們專案基礎的實力。該專案的稅前淨現值約為 7.25 億美元，專案內部報酬率為 19%。

The after-tax NPV is about $469 million with a 16% project IRR. We estimate free cash flow over the life of mine have roughly $3.7 billion pretax with an after-tax payback of just under six years. The study outlines a 39.5 year mine life, supported by 5.4 million short tons of boric acid reserves. Phase 1 targets 130,000 short tons per year of boric acid, which we believe has a strong need in today's global market. On the cost front, all-in sustaining costs are estimated at $555 per ton with initial capital at about $435 million.

稅後淨現值約為 4.69 億美元，專案內部報酬率為 16%。我們估計，我公司整個生命週期內的自由現金流約為稅前 37 億美元，稅後報稅期略短於六年。該研究概述了 39.5 年的礦山壽命，由 540 萬短噸的硼酸儲量提供支援。第一階段的目標是每年生產 13 萬短噸硼酸，我們相信當今全球市場對硼酸有強烈的需求。在成本方面，全部維持成本估計為每噸 555 美元，初始資本約為 4.35 億美元。

This is inclusive of contingency and a gas cogen facility. These results are underpinned by real-world operating data from our small sale facility, which confirmed our expected recovery and efficiencies. Thus far, we have received highly favorable feedback from analysts, prospective customers and the investment community. Next, I'd like to turn our attention to our traction with customers where we see growing validation. Earlier this year, 14 customers successfully qualified our boric acid.

其中包括緊急措施和燃氣熱電聯產設施。這些結果以我們小型銷售設施的實際營運數據為基礎，證實了我們預期的復甦和效率。到目前為止，我們已經收到了來自分析師、潛在客戶和投資界的高度好評。接下來，我想將注意力轉向我們與客戶的聯繫，我們看到了越來越多的認可。今年早些時候，已有 14 位客戶成功認證了我們的硼酸。

They span a wide range of industries that includes specialty glass, fiberglass, ceramics, insulation, agricultural, defense and chemicals. We continue to see accelerating demand for our high-purity US based boron supply and additional customers are in advanced testing phases. As we move from breadth to depth, we recently hit a significant milestone with a Tier 1 specialty glass manufacturer. We completed a full logistics and handling trial, shipping 2 tons of product from the California Port of LA to Taiwan.

它們涉及廣泛的行業，包括特殊玻璃、玻璃纖維、陶瓷、絕緣、農業、國防和化學品。我們持續看到對我們美國高純度硼供應的需求不斷增長，並且更多客戶正處於高級測試階段。隨著我們從廣度到深度的合作，我們最近與一級特種玻璃製造商達成了一個重要的里程碑。我們完成了完整的物流和處理試驗，將 2 噸產品從加州洛杉磯港運送到台灣。

This trip took approximately 20 days and the material passed all on-site handling tests, including successful deployment in a glass furnace. As a result, we have received a green light to advance to full-scale product testing within this future customers' production system. As it currently stands, the product for the full-scale product test is produced and fits ready to ship. We are coordinating the shipping PO and the shipment of 20 tons of high-quality borate product is imminently expected. The next trial is expected to take two to three weeks to ship overseas and approximately five weeks to test in a commercial glass furnace.

這次行程耗時約 20 天，材料通過了所有現場處理測試，包括在玻璃熔爐中成功部署。因此，我們獲得了批准，可以在該未來客戶的生產系統中進行全面的產品測試。目前，全面產品測試的產品已經生產出來並準備好出貨。我們正在協調出貨訂單，預計20噸高品質硼酸鹽產品即將出貨。下一次試驗預計需要兩到三週的時間運往海外，並在商業玻璃熔爐中進行測試大約需要五週的時間。

Furthermore, our team has begun producing the next batch of high-quality borate that will go to other large LCD glass manufacturers who are waiting in queue to implement a similar test. Our operation is proven, scalable and consistently meeting the strictest global quality standards. With these successful milestones being delivered, we have formally entered into long-term offtake discussions and have had two formal presentations with the most recent being a presentation of specific offtake terms.

此外，我們的團隊已經開始生產下一批高品質的硼酸鹽，這些硼酸鹽將提供給正在排隊等待進行類似測試的其他大型液晶玻璃製造商。我們的營運經過驗證、可擴展且始終符合最嚴格的全球品質標準。隨著這些里程碑的成功實現，我們正式進入長期承購討論，並進行了兩次正式演示，最近一次是具體承購條款的演示。

Most recently, our forecast of supply and demand has been resonating with our future customers, and industry dynamics are creating a clear opportunity for 5E, particularly in light of recent announcements from one of the two major borate producers. 5E and our stakeholders believe there is a fundamental need and requirement for a new market producer to reduce supply chain risks and our method and approach thus far has reinforced confidence and strengthens trust within the borate market and investor communities.

最近，我們對供需的預測與我們未來的客戶產生了共鳴，產業動態為 5E 創造了明顯的機會，特別是考慮到兩大硼酸鹽生產商之一最近發布的公告。5E 和我們的利害關係人認為，新市場生產商有降低供應鏈風險的基本需求和要求，迄今為止，我們的方法和途徑增強了信心，增強了硼酸鹽市場和投資者群體的信任。

Finally, I'll cover our road map to FID and financing. We remain on the path towards an FID by mid-2026. We have commenced early FEED engineering activities with 5E targeting the formerly stage gate to FEED engineering before year-end. We have prepared an application for the EXIM Engineering Multiplier Program and target $8.5 million to $10 million in a loan facility that will provide the capital and liquidity to fully fund FEED engineering. Once stage-gated to FEED, we expect that process to take approximately eight to nine months to complete, which leads to FID in mid-2026.

最後，我將介紹我們的 FID 和融資路線圖。我們仍有望在 2026 年中期實現最終投資決定。我們已開始早期的 FEED 工程活動，5E 的目標是在年底前完成 FEED 工程的階段門檻。我們已經準備好了美國進出口銀行工程乘數計劃的申請，目標是獲得 850 萬至 1000 萬美元的貸款，以提供資金和流動性，為 FEED 工程提供全額資助。一旦進入 FEED 階段，我們預計該過程大約需要八到九個月才能完成，最終決定在 2026 年中期做出。

Last week, we submitted a formal response to the USGS draft critical minerals list, where we strongly believe boron has a place on the list. The draft list was released prior to the second largest borate manufacturer, citing that their business is under strategic review. As it currently stands, we believe the United States has a single point of failure in the borate market. Per publicly available financial results the second largest port producer and single point of failure in the United States supply chain have seen their costs increase approximately 60% for 2017 on a B203 basis.

上週，我們對美國地質調查局的關鍵礦物清單草案提交了正式回應，我們堅信硼在該清單中佔有一席之地。該草案名單是在第二大硼酸鹽製造商之前發布的，理由是他們的業務正在接受策略審查。就目前情況而言，我們認為美國在硼酸鹽市場上有一個單點故障。根據公開的財務結果，美國第二大港口生產商和供應鏈中的單點故障在 2017 年的成本以 B203 為基礎增加了約 60%。

Given the material announcement at the largest US borate producer, their 2018 reserve downgrade and what we believe are weakening business fundamentals, there is a need add boron to the proposed critical minerals list. Without this producer, the United States would lose its position as the second largest producer and as a nation, we would transition from a net exporter to a net importer. The boron market is an oligopoly. The United States has a single point of failure and without further investment in new borate projects, the United States will be reliant on Turkey for boron and China for its critical advanced boron materials.

鑑於美國最大的硼酸鹽生產商發布的重要公告、其 2018 年儲量下調以及我們認為正在減弱的業務基本面，有必要將硼添加到擬議的關鍵礦產清單中。如果沒有這個生產國，美國將失去第二大生產國的地位，作為一個國家，我們將從淨出口國轉變為淨進口國。硼市場是寡占市場。美國有單點故障，如果不進一步投資新的硼酸鹽項目，美國將依賴土耳其的硼和中國的關鍵先進硼材料。

We view 2025 as an inflection year for boron, as independent analysis shows supply shortfalls beginning in 2026, which we believe supports the fundamental need for a new market producer. Looking ahead, we are focused on several key catalysts in the upcoming quarters. These include progressing full-scale testing with multiple specialty glass manufacturers, securing additional qualifications and initial offtake agreements, securing a small XM loan to cover FEED engineering costs, completing fee-ready, engineering deliverables, advancing the larger project finance and XM loan process, finalization of our mine plan in connection with our horizontal well trials and lastly, the potential opportunity for USGS to do the right thing and add boron to the final critical minerals list.

我們認為 2025 年是硼的轉折年，因為獨立分析顯示供應短缺將從 2026 年開始，我們認為這支持了對新市場生產商的基本需求。展望未來，我們將重點放在未來幾季的幾個關鍵催化劑。這些包括與多家特種玻璃製造商進行全面測試、獲得額外資格和初步承購協議、獲得一筆小額 XM 貸款以支付 FEED 工程成本、完成費用準備、工程交付成果、推進更大的項目融資和 XM 貸款流程、完成與水平井試驗相關的採礦計劃，最後，美國地質調查局有可能採取正確行動，將硼添加到最終關鍵礦物清單中。

In closing, I want to thank our employees and partners for their dedication. With the achievements from fiscal year 2025, we are well positioned to advance towards FID in mid-2026, and build long-term value for our shareholders and our stakeholders.

最後，我要感謝我們的員工和合作夥伴的奉獻精神。憑藉 2025 財年的成就，我們已準備好在 2026 年中期實現 FID，並為我們的股東和利害關係人創造長期價值。

Thank you, and I look forward to your questions.

謝謝，我期待您的提問。

(Operator Instructions)

（操作員指示）

Tate Sullivan, Maxim Group.

泰特·沙利文，馬克西姆集團。

Can you review the comments you had about the disruption to the California boron mine? What was the specific announcement that you cited?

您能否回顧一下您對加州硼礦開採中斷的評論？您引用的具體公告是什麼？

Tate, yeah. No, appreciate you dialing in and thanks for the question. So at the end of August, Rio, with the appointment of the new CEO, made announcements that they've streamlined their business. Historically, Rio has been broken up into four different business segments. And on a go-forward basis, they're now structured where they have three business segments, which is one, iron ore; two, copper; and three aluminum or lithium. And essentially, the industrial minerals, which I believe that's where their diamonds, borates and titanium business sat, are essentially up for -- well, they now sit with the chief -- the office of the Chief Commercial Officer for the release and they are up for a strategic review.

泰特，是的。不，感謝您撥入電話並感謝您的提問。因此，在八月底，力拓任命了新首席執行官，並宣布他們已經精簡了業務。從歷史上看，力拓已分為四個不同的業務部門。從未來發展來看，他們現在的業務結構為三個部門，即鐵礦石、銅和鋁或鋰。基本上，工業礦物，我相信那是他們的鑽石、硼酸鹽和鈦業務所在，基本上是 - 嗯，他們現在坐在首席 - 首席商務官辦公室等待發布，他們正在接受戰略審查。

Okay. And then to get boron on the USGS critical mineral list, is it a -- I mean three, six month process or what needs to happen in terms of the review?

好的。那麼，要將硼列入美國地質調查局關鍵礦物名單，這是一個——我的意思是三到六個月的過程，還是需要進行什麼審查？

Great question. So we were in DC, I was down there and met with interior in July. Kind of the word on the Street was that sometime this fall, the draft list would come out. And there was no comment on it, boron would or would not make the list. But essentially, the appropriate measure to get boron added to the list is essentially to submit public comments.

好問題。所以我們在華盛頓特區，我在那裡與內政部在七月會面。華爾街傳言稱，今年秋天某個時候，選秀名單將會公佈。並且沒有對此作出評論，硼是否會被列入名單。但本質上，將硼添加到清單中的適當措施本質上是提交公眾意見。

My kind of gut told me at a time, I should expect to see a draft list by October. Was pleasantly surprised that kind of came in ahead, and I think it was maybe the first week of September or last week of August the draft list was published, which essentially opened up a 30-day public comment window. All comments are available on the Federal Register. And we submitted our comment, as did believe eight other groups, that you could search for borate on the Federal Register under the comments and they're all there. I was pleased that there was some well-known groups that did apply. And so we're not now the kind of the only one in the room kind of ringing the bell that there are supply chain concerns there in this market.

我的直覺告訴我，我應該會在十月看到一份草稿名單。我很驚訝能提前公佈，我想大概是在九月的第一周或八月的最後一周，草案名單就公佈了，這實際上開啟了一個為期 30 天的公眾評論窗口。所有評論均可在《聯邦公報》上查閱。我們提交了我們的評論，相信其他八個團體也提交了評論，您可以在《聯邦公報》的評論下搜尋硼酸鹽，它們都在那裡。我很高興看到有一些知名團體提出申請。因此，我們現在並不是唯一一個敲響警鐘，指出這個市場有供應鏈問題的人。

And there were no other questions at this time. I will now turn the call back over to Paul Weibel for any closing remarks.

此時沒有其他問題。現在我會把電話轉回給保羅·韋貝爾 (Paul Weibel) 做結束語。

Great. Thank you. I appreciate the Q&A during today's call. As noted, we believe 5E has the right resource, and now it's the right time. We are committed to building a strong and resilient borate supply chain that underpins the US industrial base for many generations to come. We look forward to fiscal year 2026 and delivering on our expected milestones as we go into 2026. Thank you.

偉大的。謝謝。我很感謝今天電話會議中的問答。如上所述，我們相信 5E 擁有合適的資源，現在正是合適的時機。我們致力於打造強大且有彈性的硼酸鹽供應鏈，為未來幾代美國工業基礎提供支撐。我們期待 2026 財年，並在進入 2026 年時實現我們預期的里程碑。謝謝。

Thank you. And this does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的會議到此結束。現在您可以斷開線路。感謝您的參與。