Centrus Energy Corp (LEU) 2024 Q3 法說會逐字稿

Greetings and welcome to Centrus Energy third quarter, 2024 earnings conference call. At this time, (Operator Instructions). It is now my pleasure to introduce your host, Dan Leistikow VP Corporate Communications. Thank you. You may begin.

問候並歡迎參加 Centrus Energy 2024 年第三季財報電話會議。此時，（操作員指令）。現在我很高興介紹您的主持人，企業傳播副總裁 Dan Leistikow。謝謝。你可以開始了。

Good morning. Thank you all for joining us. Today's call will cover the results of the third quarter, 2024 ended September 30th. Today we have Amir Vexler, President and Chief Executive Officer and Kevin Harrill, Chief Financial Officer. Before turning the call over to Amir Beckler. I'd like to welcome all of our callers as well as those listening to our webcast. This conference call follows our earnings news release which was issued yesterday. We expect to file our report for the third quarter on form 10-Q later today. All of our news releases and sec filings including our 10-K, 10 Q's and 8-K's are available on our website. A replay of this call will also be available later this morning on the Centrus website.

早安.感謝大家的參與。今天的電話會議將討論截至 9 月 30 日的 2024 年第三季的業績。今天我們邀請到了總裁兼執行長 Amir Vexler 和財務長 Kevin Harrill。在將電話轉給阿米爾·貝克勒之前。我謹歡迎所有來電者以及收聽我們網路廣播的各位。本次電話會議是繼我們昨天發布的獲利新聞稿之後召開的。我們預計將於今天稍晚以 10-Q 表格形式提交第三季報告。我們的所有新聞稿和證券文件（包括 10-K、10Q 和 8-K）均可在我們的網站上查閱。這次通話的重播也將在今天上午晚些時候在 Centrus 網站上提供。

I'd like to remind everyone that certain information we may discuss on this call today may be considered forward-looking information that involves risk and uncertainty, including assumptions about the future performance of Centrus. Our actual results may differ materially from those in our forward-looking statements.

我想提醒大家，我們今天在電話會議上討論的某些資訊可能被視為前瞻性訊息，涉及風險和不確定性，包括對 Centrus 未來表現的假設。我們的實際結果可能與前瞻性陳述中的結果有重大差異。

Additional information concerning factors that could cause actual results to materially differ from those in our forward-looking statements is contained in our filings with the sec including our annual report on form 10-K as well as quarterly reports on form 10-Q. Finally, the forward-looking information provided today is time sensitive and accurate only as of today, October 29th, 2024. Unless otherwise noted, this call is the property of Centrus Energy. Any transcription redistribution, retransmission or rebroadcast of this call in any form without the expressed written consent of Centrus is strictly prohibited. Thank you for your participation and I'll now turn the call over to Amir.

有關可能導致實際結果與我們的前瞻性陳述大不相同的因素的更多信息，包含在我們向美國證券交易委員會提交的文件中，包括我們的 10-K 表年度報告以及 10-Q 表季度報告。最後，今天提供的前瞻性資訊具有時效性，並且僅截至今天（2024 年 10 月 29 日）準確。除非另有說明，否則此通話歸 Centrus Energy 所有。未經 Centrus 明確書面同意，嚴禁以任何形式轉錄、重新分發、重新傳輸或重新廣播此通話。感謝您的參與，現在我將把電話轉給阿米爾。

Thank you Dan and thank you to everyone on the call today. Both long time listeners and those of you joining us for the first time.

謝謝丹，也謝謝今天電話會議的每個人。無論是長期聽眾還是第一次加入我們的聽眾。

Our industry and center specifically has a growing sense of momentum.

我們的行業和中心尤其具有不斷增長的勢頭。

Big tech companies are making historic investments. Reactors that shut down just a few years ago are set to restart. And as National conflicts drive shocks to energy markets around the world. Policymakers have made a multibillion dollar commitment to our domestic nuclear fuel supply chain at Centrus we are proud to be leading the effort to restore America's ability to enrich Uranium meeting the nation's needs while creating thousands of jobs in the process.

大型科技公司正在進行歷史性投資。幾年前關閉的反應爐即將重新啟動。國家衝突為全球能源市場帶來衝擊。政策制定者已承諾向 Centrus 的國內核燃料供應鏈投入數十億美元，我們很自豪能夠帶頭恢復美國濃縮鈾的能力，滿足國家的需求，同時創造數千個就業機會。

Turning to our quarterly numbers, we have consistently stressed on these calls that due to the nature of our business, there is a lot of quarter-to-quarter fluctuation in our results.

談到我們的季度數據，我們在電話會議上一直強調，由於我們業務的性質，我們的業績季度間波動很大。

Most of our revenue comes from the LEU segment where our customers generally have multiyear contracts to take delivery of a given quantity at a given price each year.

我們的大部分收入來自低濃縮鈾領域，我們的客戶通常簽訂多年期合同，每年以固定價格接收固定數量的鈾。

But they choose which quarter to take the annual delivery and don't choose the same quarter every year.

但他們選擇在哪個季度進行年度交付，而不是每年都選擇同一個季度。

Revenues and margins go up and down depending on how many deliveries happen to fall into a particular quarter. And whether those deliveries come from our higher price contracts or our lower price contracts. And as such, we believe our annual results are more indicative of our progress.

收入和利潤率的上升和下降取決於特定季度的交付量。以及這些交付是否來自我們的高價合約還是低價合約。因此，我們相信我們的年度業績更能反映我們的進步。

In the third quarter of 2024 we achieved $57.7 million in revenue, a gross profit of $8.9 million and a net loss of $5 million. That is in line with our internal expectations for the quarter, particularly coming after a big second quarter result.

2024 年第三季度，我們營收 5,770 萬美元，毛利 890 萬美元，淨虧損 500 萬美元。這符合我們對本季的內部預期，尤其是在第二季業績表現優異之後。

Again, this variation is normal for us and it's why we put our focus on annual numbers.

再次強調，這種變化對我們來說是正常的，這就是我們關注年度數字的原因。

What's even more important, however, is the trajectory we are on as a company and as an industry, as you know, last year, Centrus began demonstrating production of high assay, low enriched uranium or HALEU in Piketon, Ohio, which is the only licensed and operating HALEU production facility in the Western world.

然而，更重要的是我們作為一家公司和一個行業的發展軌跡，正如你所知，去年，Centrus 開始在俄亥俄州派克頓展示高純度、低濃縮鈾或 HALEU 的生產，這是西方世界唯一獲得許可並運營的 HALEU 生產設施。

I am pleased to report that earlier this month, the Department of Energy selected Centrus for a pair of awards aimed at expanded production of HALEU as well as HALEU deconversion, which is a secondary step in the HALEU production process that occurs after enrichment.

我很高興地報告，本月早些時候，能源部授予 Centrus 兩項合同，旨在擴大 HALEU 的生產以及 HALEU 的去轉化，這是 HALEU 生產過程中濃縮後的第二步。

The HALEU production award covers a 10-year period and has a total contract billing of $2.7 billion which is cumulative for all four awardees The department has selected . The contract ceiling for the conversion cumulative is for six awardees is $800 million. The initial selection only guarantees $2 million under each contract but it makes us eligible for future task orders from the department which could underpin a significant expansion of our capacity in Piketon.

HALEU 生產合約期限為 10 年，合約總額為 27 億美元，這是所有四個獲獎者的累計金額。該部門已選定。六個獲獎者的轉換累計合約上限為 8 億美元。初步選擇僅保證每份合約價值 200 萬美元，但它使我們有資格獲得該部門未來的任務訂單，這可能會支持我們在派克頓的產能大幅擴張。

The ultimate dollar amount associated with these awards and the potential scale of the expansion supported will depend upon task orders subsequently issued by the US Department of Energy to Centrus under the contract.

這些獎項的最終金額以及支援擴展的潛在規模將取決於美國能源部隨後根據合約向 Centrus 發出的任務訂單。

In addition to the contract ceiling, the total value of the task quarters will be limited by the availability of appropriations.

除了合約上限之外，任務宿舍的總價值還將受到撥款可用性的限制。

Fortunately, the HALEU enrichment and the conversion RFPS, as well as a third RFP covering LEU production which has not yet been awarded are backed by more than $3.4 billion that has been appropriated by Congress to date.

幸運的是，HALEU 濃縮和轉換 RFPS，以及尚未授予的涵蓋 LEU 生產的第三份 RFP 都得到了國會迄今撥款超過 34 億美元的支持。

We responded to the LEU, RFP in September with a proposal to establish large scale production of LEU at our Ohio facility. Alongside what we hope will be expanded HALEU production and the new HALEU deconversion capability.

我們在 9 月對低濃縮鈾 RFP 做出了回應，提議在我們俄亥俄州的工廠大規模生產低濃縮鈾。我們希望能夠同時擴大 HALEU 產量和新的 HALEU 去轉換能力。

The federal investment we are seeking coupled with private investment and commercial offtake commitments would form the basis for a public private partnership aimed at restoring a robust domestic uranium enrichment capacity.

我們所尋求的聯邦投資加上私人投資和商業承購承諾將構成公私部門合作的基礎，旨在恢復強大的國內鈾濃縮能力。

As a reminder, we are the only publicly traded uranium enrichment company in the world and the only one with an American technology American workforce and American supply chain. All of our competitors that enrich uranium today are foreign government owned entities.

提醒一下，我們是世界上唯一一家公開交易的鈾濃縮公司，也是唯一一家擁有美國科技、美國勞動力和美國供應鏈的公司。我們今天所有從事鈾濃縮的競爭對手都是外國政府所有的實體。

As another step towards creating a public private partnership, we have secured a cumulative total of approximately 2 billion in customer commitments to support deployment of our new production capacity in Piketon.

作為建立公私合作夥伴關係的又一步，我們已獲得累計約 20 億的客戶承諾，以支持我們在派克頓部署新的生產能力。

These agreements are subject to signing final contracts and are contingent upon us securing the necessary public and private investment to build new capacity. We believe this reflects a strong appetite for new American LEU production and demonstrates customer confidence and Centrus technical capabilities and commercial competitiveness.

這些協議需簽署最終合同，並且取決於我們能否獲得建設新產能所需的公共和私人投資。我們相信，這反映了對美國新低濃縮鈾生產的強烈需求，並體現了客戶信心和 Centrus 的技術能力和商業競爭力。

Our efforts to restore America's nuclear fuel supply chain have taken on added urgency in the last few months, particularly as major technology companies turn to nuclear to power data centers and the A I systems of the future.

在過去的幾個月裡，我們恢復美國核燃料供應鏈的努力變得更加緊迫，特別是當大型科技公司轉向核能為未來的資料中心和人工智慧系統提供動力時。

For example, Microsoft recently signed a 20-year power purchase agreement to restart the reactor in Pennsylvania and the Department of Energy also finalized a financial package to enable the restart of the Palisade nuclear plant in Michigan.

例如，微軟最近簽署了一份為期 20 年的購電協議，以重啟賓州的反應堆，能源部也敲定了一項財政方案，以重啟密西根州的帕利塞德核電廠。

These represent the first reactors to ever restart. After closing down on October 14th, Google announced a partnership with Kairos power to deploy a fleet of HALEU fueled reactors totaling 500 megawatts.

這是第一批重新啟動的反應爐。10 月 14 日關閉後，Google宣布與 Kairos power 合作部署總功率為 500 兆瓦的 HALEU 燃料反應器群。

Two days later, Amazon announced a $500 million investment and a commitment to help deploy four SMRs HALEU fueled reactors in Washington State as well as potential reactor projects in Virginia.

兩天后，亞馬遜宣布投資 5 億美元，並承諾幫助在華盛頓州部署四座 SMR HALEU 燃料反應器以及維吉尼亞州的潛在反應器計畫。

That same day, the Department of Energy made $900 million available to support deployments of small modular reactors that follows action by TVA which increased its commitment to $350 million to develop small modular reactors at the Clinch River site in Tennessee.

同一天，美國能源部撥款 9 億美元用於支持小型模組化反應器的部署，此前田納西河谷管理局已採取行動，將其承諾的資金增加到 3.5 億美元，用於在田納西州克林奇河核電站開發小型模組化反應器。

The US military is also looking to nuclear energy for national security next year. The Pentagon will begin testing prototype HALEU microreactor at Idaho National Laboratory.

美國軍方明年也將考慮利用核能來保障國家安全。五角大廈將開始在愛達荷國家實驗室測試 HALEU 微反應器原型。

Meanwhile the US Air Force is looking to host a micro reactor in Alaska. The US army is evaluating bids for reactors at two of its bases and the navy recently began exploring possible reactor deployment on an underutilized sites in Maryland, Virginia and North Carolina given all of this momentum It's no surprise that in September, 14 of the world's largest banks including Bank of America, Morgan Stanley and Goldman Sachs committed to support a tripling of nuclear energy capacity by 2050.

同時，美國空軍正在考慮在阿拉斯加建立一座微型反應器。美國陸軍正在評估其兩個基地的反應爐投標，而海軍最近也開始探索在馬裡蘭州、維吉尼亞州和北卡羅來納州未充分利用的場地部署反應爐的可能性。毫不奇怪，9 月份，包括美國銀行、摩根士丹利和高盛在內的 14 家全球最大銀行承諾將支持到 2050 年將核能容量增加兩倍。

These initiatives to expand nuclear, have something in common. They all require fuel where the growth comes from reactor powered by LEU or HALEU or a mix of both centrus is well positioned since our Ohio plant is the only US site license for HALEU production and one of only two sites licensed for LEU I will now turn the call over to Kevin to walk through the numbers.

這些擴核舉措，有一些共同點。它們都需要燃料，而成長來自於由低濃縮鈾 (LEU) 或高濃縮鈾 (HALEU) 或兩者混合驅動的反應堆，因此我們的俄亥俄州工廠處於有利地位，因為我們的工廠是美國唯一獲得 HALEU 生產許可的工廠，也是僅有的兩個獲得低濃鈾 (LEU) 生產許可的工廠之一，現在我將把電話轉給 Kevin 來介紹這些數字。

Thank you, Amir. Good morning, everyone. Our financial results for the quarter remain in line with our internal projections based upon customer orders and deliveries. The third quarter of 2024 reflected more than a 70% decrease in re quantities delivered. But a higher sales unit price as we noted, we believe our annual results provide a more accurate reflection of our business due to the nature of our contract cycles.

謝謝你，阿米爾。大家早安。我們本季的財務表現與基於客戶訂單和交付的內部預測一致。2024 年第三季交付的再生能源數量下降了 70% 以上。但正如我們所指出的，銷售單價較高，我們相信，由於我們的合約週期的性質，我們的年度業績可以更準確地反映我們的業務。

We generated $57.7 million in revenue, an increase of $6.4 million compared to the same quarter in the prior year.

我們創造了 5,770 萬美元的收入，與去年同期相比增加了 640 萬美元。

We generated a net loss of $5 million compared to net income of $8.2 million in the prior year.

我們淨虧損 500 萬美元，而上一年淨收入為 820 萬美元。

Our LEU business generated $34.8 million in revenue. A decrease of $5.7 million compared to the same quarter in 2023 reflecting a decrease in the volume of SWU sold, partially offset by an increase in the average prices who sold our cost of sales in LEU decreased by from $30.4 million in the third quarter of 2023 to $29.6 million in 2024 due to a decrease in sales volume partially offset by an increase in average fuel cost.

我們的低濃縮鈾業務創造了 3,480 萬美元的收入。與 2023 年同期相比減少了 570 萬美元，反映了 SWU 銷量的減少，但被平均售價的上漲部分抵消。由於銷售量的減少，低濃縮鈾的銷售成本從 2023 年第三季的 3,040 萬美元下降到 2024 年的 2,960 萬美元，但被平均燃料成本的上漲部分抵銷。

We ended the quarter with an LEU gross profit of $5.2 million compared to $10.1 million in the third quarter of 2023. Our technical solutions segment also generated $3.7 million in gross profit which was an improvement of $2.5 million versus the third quarter of 2023 on a consolidated basis. Our gross profit was $8.9 million. A slight decrease from $11.3 million in the prior year.

本季末，我們的 LEU 毛利為 520 萬美元，而 2023 年第三季為 1,010 萬美元。我們的技術解決方案部門還創造了 370 萬美元的毛利，與 2023 年第三季相比，以合併基礎計算增加了 250 萬美元。我們的毛利為890萬美元。與上年的 1,130 萬美元相比略有下降。

Technical solutions generated $22.9 million in quarterly revenue. An increase of $12.1 million compared to the third quarter of 2023 and reported $19.2 million in cost of sales which was an increase of $9.6 million compared to the prior year.

技術解決方案創造了 2,290 萬美元的季度收入。與 2023 年第三季相比增加了 1,210 萬美元，銷售成本為 1,920 萬美元，與前一年相比增加了 960 萬美元。

Our results on a year over year basis reflect transition of the HALEU operation contract from a cost share model under phase one to a cost-plus incentive fee model under phase two.

我們的年比結果反映了 HALEU 營運合約從第一階段的成本分攤模式轉變為第二階段的成本加激勵費用模式。

As Amir previously mentioned, as another step towards creating a public private partnership. We have secured a cumulative total of approximately $2 billion in customer commitments to support deployment of new LEU production capacity in Centrus which bolsters the company's total backlog as of September 30th, 2024, the company has a total backlog which extends to 2040 of $3.8 billion.

正如阿米爾之前提到的，這是公私部門合作的又一步。我們已獲得累計約 20 億美元的客戶承諾，以支持在 Centrus 部署新的低濃縮鈾生產能力，這將增強公司截至 2024 年 9 月 30 日的總積壓訂單，公司到 2040 年的總積壓訂單將達到 38 億美元。

Our LEU segment backlog is approximately $2.8 billion as of September 30, 2024, and includes future slew and uranium deliveries primarily under medium- and long-term contracts with fixed commitments as well as the $2 billion in contingent LEU sales commitments subject to entering into definitive agreements in support of a potential construction of LEU production capacity at the Piketon Ohio facility.

截至 2024 年 9 月 30 日，我們的 LEU 部門積壓訂單約為 28 億美元，包括主要根據具有固定承諾的中長期合約的未來大量鈾交付，以及 20 億美元的或有 LEU 銷售承諾，但須達成最終協議，以支持在俄亥俄州派克頓工廠建設 LEU 生產能力。

The contingent LEU sales commitments also depend on our ability to secure substantial public and private investment.

或有低濃縮鈾銷售承諾還取決於我們獲得大量公共和私人投資的能力。

Moving on to our technical solutions segment. Our backlog which is approximately $0.9 billion as of September 30, 2024, includes funded amounts unfunded amounts and unexercised options.

繼續討論我們的技術解決方案部分。截至 2024 年 9 月 30 日，我們的積壓訂單約為 9 億美元，包括已註資金額、未註資金額和未行使的選擇權。

The options relate to the company's HALEU operation contract in the third quarter of 2024. We continue to leverage our ETM program raising an additional 4.5 million in proceeds bringing our total year end proceeds net of related expenses to $23.8 million.

這些選擇權與該公司 2024 年第三季的 HALEU 營運合約有關。我們繼續利用我們的 ETM 計劃籌集額外的 450 萬美元收益，使我們扣除相關費用後的年底總收益達到 2,380 萬美元。

These proceeds and the gross margin generated in the third quarter contributed to our ending cash balance of $194.3 million and a restricted cash balance of $32.6 million for a total of 226.9 million of cash and restricted cash.

這些收益和第三季產生的毛利使我們的期末現金餘額達到 1.943 億美元，受限現金餘額達到 3,260 萬美元，總計現金和受限現金達到 2.269 億美元。

Maintaining a strong cast position continues to facilitate execution of our near term contractual obligations as well as strategic investments in our long term future.

保持強大的演員地位將繼續促進我們履行近期合約義務以及對長期未來的策略投資。

We continue to delever the financials through strategic initiatives associated with our pension plans.

我們持續透過與退休金計畫相關的策略性舉措來降低財務槓桿。

In the third quarter of 2024 we have further reduced our pension plan obligations by $21 million.

2024 年第三季度，我們進一步減少了 2,100 萬美元的退休金計畫義務。

As of September 30th 2024 we have $29 million remaining in these pension plan obligations and are currently at a funding level in excess of 110%.

截至 2024 年 9 月 30 日，我們在這些退休金計畫義務中剩餘 2,900 萬美元，目前的資金水準超過 110%。

The company will continue to evaluate opportunities to further strengthen its balance sheet position as part of a multi year effort to better position the company to continue expanding enrichment capabilities without compromising the balance sheet.

作為多年努力的一部分，該公司將繼續評估進一步加強其資產負債表狀況的機會，以更好地定位公司，在不損害資產負債表的情況下繼續擴大濃縮能力。

These initiatives are part of a broad strategy to optimize our cost structure, adequately manage our risks and place ourselves in a position to execute on our vision to restore America's ability to enrich uranium at scale with that. Let me turn things back over to Amir.

這些措施是我們廣泛策略的一部分，旨在優化我們的成本結構，充分管理我們的風險，並使我們能夠實現我們的願景，恢復美國大規模濃縮鈾的能力。讓我把事情交還給阿米爾。

Thanks Kevin. I'd like to close with a final thought about how we see our role in America's nuclear fuel supply chain and what sets us apart from our competitors as we seek to build on our recent RFP wins and hope to secure a large share of this $3.4 billion. And Congress has set aside for domestic nuclear fuel production, nothing is guaranteed in this competition. But we believe we have a strong case to make.

謝謝凱文。最後，我想最後談談我們如何看待我們在美國核燃料供應鏈中的作用，以及在我們尋求鞏固最近的 RFP 勝利並希望獲得這 34 億美元的大部分份額之際，我們與競爭對手的區別是什麼。而且國會已經為國內核燃料生產預留了資金，因此這場競爭中沒有什麼是可以保證的。但我們相信我們有充分的理由。

We are the only company with an American technology and an American workforce using an American supply chain that enriches uranium. Today, all of the other active enrichers today are foreign government owned enterprises.

我們是唯一擁有美國技術和美國勞動力、使用美國供應鏈進行鈾濃縮的公司。如今，所有其他活躍的致富者都是外國政府所有的企業。

We are also the only enricher that actually manufactures our centrifuges in the United States in September. We held a briefing for policymakers on Capitol Hill and unveiled our domestic manufacturing supply chain which includes 14 major suppliers. Every one of them, an American company employing American workers.

我們也是唯一一家在九月在美國實際生產離心機的濃縮企業。我們在國會山莊為政策制定者舉行了一次簡報會，並公佈了包括 14 家主要供應商在內的國內製造供應鏈。他們每一家都是美國公司，僱用美國工人。

The only other available operational centrifuges technology is the European design. It is exclusively manufactured in the Netherlands, importing those machines to the US. Does not change the fact that the supply chain and virtually all of the manufacturing jobs are overseas.

唯一可用的其他操作離心機技術是歐洲設計。它完全在荷蘭製造，並將這些機器進口到美國。這並不能改變供應鏈和幾乎所有製造業工作都在海外的事實。

Moreover, the terms of the agreement allowing for the import of European centrifuge technology prohibit Americans access to their centrifuge technology. So even the installation has to be overseen by workers shipped in from Europe.

此外，該協議允許進口歐洲離心機技術的條款禁止美國人取得其離心機技術。因此，甚至安裝過程也必須由從歐洲運來的工人監督。

European owned. Enrichers are great companies owned by allied governments.

歐洲所有。富豪公司是盟國政府旗下的大型公司。

But now is the time to reduce our dependency on foreign nations and bring to market additional supply from new suppliers.

但現在是減少對外國的依賴並向市場引入新供應商的額外供應的時候了。

And when it comes to us, tax dollars, we think the priority should be to invest in American companies using American technology built by American workers. This is a once in a generation opportunity to reclaim us leadership and our nation cannot afford to squander it.

而當涉及到我們納稅人的錢時，我們認為優先考慮的應該是投資於使用美國技術、由美國工人創造的美國公司。這是千載難逢的機會，讓我們重新獲得領導地位，我們的國家不能浪費這個機會。

Let me close by thanking our investors without whom none of this would be possible.

最後，我要感謝我們的投資者，沒有他們，這一切都不可能實現。

I appreciate you coming through this journey with us. We intend to deliver strong results for you for our employees and for our nation.

感謝您與我們一起經歷這趟旅程。我們致力於為您、為我們的員工、為我們的國家創造豐碩的成果。

We're happy to take questions at this time, operator.

接線員，我們很高興回答您的問題。

Thank you. The floor is now open for questions. If you would like to ask a question, (Operator Instructions). Today's first question is coming from Robert Brown of Lake Street Capital. Please go ahead.

謝謝。現在開始接受提問。如果你想問一個問題，（操作員指令）。今天的第一個問題來自 Lake Street Capital 的羅伯特布朗 (Robert Brown)。請繼續。

Good morning and congratulations on all the progress.

早上好，恭喜您取得的所有進展。

Thank you.

謝謝。

Thanks,Brown

謝謝，布朗

I just wanted to follow up on the, on the HALEU selection and kind of next steps. I know you laid out a fair amount of information. But, but how do you see the next steps? And what's the, what's the sort of timing for, for getting the next contracts in place potentially?

我只是想跟進一下 HALEU 的選擇以及後續步驟。我知道你提供了大量資訊。但是，但是您如何看待下一步？那麼，簽訂下一份合約的時機是什麼時候？

I'll, I'll start with your last question first. UN un. Unfortunately, we do not know the timing. It's at the discretion of the Department of Energy.

我先從你的最後一個問題開始。聯合國。不幸的是，我們不知道具體時間。這由能源部自行決定。

Right now, everybody got selected for ID A Q awards which would total up to $2 million. And after which we'll be waiting for specific task orders. So that would be the next step, the amount that will be allocated to these past quarters and the timing is really unknown at this point, Rob. I mean, obviously we're hoping it will be sooner than later. There's a lot of work to be done and I think everybody is motivated to make it sooner than later, but we really have no feel for when that may happen.

目前，每個人都被選中獲得 ID A Q 獎項，總額高達 200 萬美元。之後我們將等待具體的任務命令。所以這將是下一步，分配給過去幾季的金額以及時間目前還不清楚，羅布。我的意思是，顯然我們希望它能盡快到來。有很多工作要做，我認為每個人都希望盡快完成，但我們真的不知道什麼時候會發生。

Yes. Understand. Okay. And, and then, it was just bigger picture is as all of these new demand sources come on and view nuclear as a incremental power power source. How does that change the market for you? And how do you view the, the overall market development, I guess in particular be HALEU. But how do you view that that happening now? And as, as things accelerated there from your prior views.

是的。理解。好的。然後，更大的圖景是，隨著所有這些新的需求來源的出現，他們將核能視為增量電力來源。這對您的市場有何影響？您如何看待整體市場發展，特別是 HALEU 市場發展。但您如何看待現在發生的事？而且，事情的發展速度與您之前的看法不同。

We, we view all of this very favorably. Obviously, this strengthens our business case that strengthens our value proposition. And more importantly, it strengthens our unique positioning in the market. Now, what do I mean by that? Regardless of what's going to be built, whether it's SMR advanced reactors or some of the mothball reactors are going to be restarted. All of them would need enrichment, whether it's le or HALEU. And as we mentioned, many times before the amount of enrichment capacity is fairly limited and there's only four enrichers out there. Two of them are chinese and Russians. There is three including Centrus that are Western and one us with one us technology which is Centrus . So regardless of the the build or the restart of reactors, all the demand will be funneled through the same number of enrichers and that creates a much stronger and reinforcement of our business case. So all of this is very welcome news for us, particularly when you have large players like the high tech jumping in and either direct investing or committing you know, committing offtake to, to power. I think that that is critical for, for the flow of investment through the rest of the supply chain.

我們非常贊同這一切。顯然，這加強了我們的商業案例，從而強化了我們的價值主張。更重要的是，它加強了我們在市場上的獨特地位。那麼，我這樣說是什麼意思呢？無論要建造什麼，無論是 SMR 先進反應器還是一些封存反應器都將重新啟動。他們都需要充實，無論是 le 還是 HALEU。正如我們之前多次提到的，濃縮能力相當有限，目前只有四座濃縮器。其中兩人是中國人，一人是俄羅斯人。包括 Centrus 在內的三家公司是西方公司，還有一家是美國公司，採用美國技術，即 Centrus。因此，無論建造還是重啟反應堆，所有需求都將透過相同數量的濃縮器來滿足，這將使我們的商業案例更加強大和鞏固。因此，所有這些對我們來說都是非常受歡迎的消息，特別是當有像高科技這樣的大型企業加入進來，直接投資或承諾承購電力時。我認為這對於整個供應鏈的投資流動至關重要。

Okay, great. Thank you. I'll turn.

好的，太好了。謝謝。我就轉身。

once again (Operator Instruction), the next question is coming from Joseph Reagor of Roth capital partners. Please go ahead.

再次（操作員指示），下一個問題來自羅斯資本合夥人的約瑟夫·里格。請繼續。

Hey, Amir and Kevin thanks for taking the questions. I guess first one just on, on the contracts just just to confirm and I think Kevin kind of touched on this a bit. The two that you were just awarded those would likely be in the fixed or the cost share structure versus like the current HALEU contract. That's the cost plus. Is that correct?

嘿，阿米爾和凱文，謝謝你們回答這些問題。我想首先只是為了確認一下合同，我認為凱文稍微提到了這一點。您剛剛獲得的兩項合約很可能是固定的或成本分攤結構，而不是像目前的 HALEU 合約那樣。這就是成本加成。對嗎？

Yeah, thanks for the question, Joseph. I think at this point, you know, the way that the, idea IQ instrument has been designed, is it leaves flexibility for the Department of Energy to award these in a multitude of contract types, fixed price/cost reimbursable cost share. Even T&M is, one of the eligible contract types. We believe as, as they for this, you know, we're going to see it in the form of something akin to a fixed price or cost reimbursable. I think those are likely those types of contracts that,be most applicable for a build out of this, of this, of this nature. But I think this is ultimately going to be at the discretion of the Department of Energy as to how they, actually issue the individual task orders and they could do it through, like I said, a multitude of mechanisms.

是的，謝謝你的提問，約瑟夫。我認為，就這一點而言，您知道，idea IQ 工具的設計方式是為能源部提供了靈活性，使其能夠以多種合約類型、固定價格/成本可報銷成本分攤等方式授予這些合約。甚至 T&M 也是符合條件的合約類型之一。我們相信，正如他們對此所言，我們將以類似於固定價格或成本報銷的形式來看待它。我認為這些可能是最適合這種性質的建設的合約類型。但我認為這最終將由能源部自行決定如何發佈單獨的任務命令，他們可以透過多種機制來實現，就像我說的。

Okay? And then looking at kind of margins year-to-date, they've been, you know, quite a bit lower for the LEU segment compared to last year. And I know you guys had a timing of contracts and we all know that, but there seems to be if you look back over the last couple of years, you know, the even years tend to be rolling down, the odd years tend to be rolling down. Is that a reflection of some of those really high margin contracts that you guys had a few years back are starting to roll off the books and that the newer contracts that are being signed are somewhat lower margins, so good margin, but lower.

好的？然後看看今年迄今為止的利潤率，你知道，與去年相比，低濃縮鈾部分的利潤率要低得多。我知道你們的合約都有時間限制，我們都知道這一點，但如果你回顧過去幾年，你會發現，偶數年合約期限往往會縮短，奇數年合約期限往往會縮短。這是否反映了你們幾年前簽訂的一些利潤率非常高的合約開始失效，而新簽訂的合約的利潤率略低，所以利潤率不錯，但較低。

I I think that's, that, that's somewhat of an accurate statement. You know, we have entered into contracts up and down the curve since 2011 this quarter, as you can tell from where our deferred revenue balance landed at that, the majority of our revenues in this quarter were related to the contracts that, that we had already in our deferred revenue balances. And what we see is that with margins in the current year, that some of what some of what the profits that, that you're seeing is, is from some of the contracts that we signed during the point in time where the the market was at its lowest. But it, it is key to, to remind everybody on the call that we right now have about 900 million in backlog related to our broker trader business. And many of those contracts were signed at a point in time and where we were at a higher point within the, the the commodity pricing curve. So we anticipate that we will still see solid margins on a go forward basis. But certainly, you know, as, as Amir noted at the, at the onset of the call, the way the contracts are crafted and, and when deliveries are taken, we will, we will you know, be, be determined as to as to how the margins look and when the deliveries actually occur.

我認為那是，那是，那是相當準確的說法。您知道，自 2011 年本季以來，我們簽訂的合約數量起伏不定，從我們的遞延收入餘額可以看出，本季度我們的大部分收入都與我們已在遞延收入餘額中簽訂的合約有關。我們看到的是，就本年度的利潤率而言，您所看到的部分利潤來自於我們在市場最低潮時簽署的一些合約。但關鍵是要提醒電話會議中的每個人，我們目前有大約 9 億美元的經紀交易業務積壓訂單。許多合約都是在商品價格曲線處於較高水平時簽署的。因此，我們預計未來仍將保持穩健的利潤率。但當然，你知道，正如阿米爾在通話開始時指出的那樣，合約的製定方式以及交貨時間，我們將確定利潤率如何以及實際交貨時間。

Okay, thanks. I'll Turn it over.

好的，謝謝。我把它翻過來。

Thank you. The next question is coming from Alex Rygiel from B. Riley. Please go ahead.

謝謝。下一個問題來自 B. Riley 的 Alex Rygiel。請繼續。

Hey, good morning guys. For the new contingent LEU sales commitments. Could you share anything about those customers, those potential customers, whether it's customer type or maybe, you know, geographically where they're located?

嘿，大家早安。對於新的或有低濃縮鈾銷售承諾。您能否分享有關這些客戶、這些潛在客戶的任何信息，無論是客戶類型還是他們所在的地理位置？

We, did come out with a public announcement that we had an agreement with KHNP which is one of the largest, obviously operating nuclear utilities in the world. It was a great honor to be selected and to be able to, to finalize that contingent agreement.

我們確實公開宣布，我們與韓國水電核能公司達成了一項協議，韓國水電核能公司顯然是世界上最大的核電企業之一。能夠被選中並最終達成該附帶協議，我感到非常榮幸。

Beyond that, most of our agreements as, as you know, covered under non disclosure, we're unable to reveal the identities of those, of those customers.

除此之外，如您所知，我們的大多數協議都屬於保密協議，我們無法透露這些客戶的身份。

But by the nature of what we're talking here, lu you could, you could be safe to surmise that it would be for reactors that use low enriched uranium obviously. And, and so the, these are all these are all utilities that are operating and require LEU to power their reactors.

但根據我們在此討論的內容的性質，你可以有把握地推測，它顯然適用於使用低濃縮鈾的反應器。所以，這些都是正在運作的公用設施，需要低濃縮鈾來為其反應器提供動力。

So this is the present market, this is existing market, this is a market that can be satisfied now with the buildup of our LEU capability in in our facility for, for which we're licensed already. And so I hope that answers the question, right.

所以這是目前的市場，這是現有的市場，這是一個可以透過在我們的設施中建立低濃縮鈾能力來滿足的市場，我們已經獲得了許可。我希望這能回答這個問題，對吧。

Got it. And just to confirm Amir. So, with that announcement in September, you had $1.8 billion in contingent sales today. $2 billion. So that does imply an additional $200 million. Correct.

知道了。只是為了確認阿米爾。因此，根據 9 月的公告，今天的或有銷售額為 18 億美元，20 億美元。所以這確實意味著需要額外 2 億美元。正確的。

Correct. I think the math is right on looking at Kevin.

正確的。我認為從凱文的角度來看，這個計算是正確的。

Got it. Appreciate that. And then I guess for my second question just to confirm it if, if and as you build out LEU production alongside HALEU production at Piketon in, does that affect the expected timeline at all for the first cascade of HALEU or do you expect to bring them both online in 42 months or so? You know, dependent on receiving the appropriate funding.

知道了。非常感謝。然後我想我的第二個問題只是想確認一下，如果，並且當您在派克頓同時生產低濃縮鈾和高濃縮鈾時，這是否會影響第一級高濃縮鈾的預期時間表，或者您是否預計在 42 個月左右的時間內將它們都投入使用？你知道，這取決於獲得適當的資金。

That, that, that is a good question. Probably want to get back to you on this one just to make sure I answered it thoughtfully and have the proper backing from, from our team. Just my initial reaction is it would depend on the timing, I guess what you're asking is is if everything aligns both from the HALEU and LEU side, is that going to change anything in some of the earlier projections we provide around 42 months? So I'm kind of reading that, that's your question. If, if that's what it is, then yeah, certainly will get back to you on that.

那，那，那是個好問題。可能想就此問題回覆您，只是為了確保我已深思熟慮地回答了這個問題，並得到了我們團隊的適當支持。我的第一個反應是這取決於時間，我想你問的是，如果 HALEU 和 LEU 方面的一切都一致，這會改變我們在 42 個月左右提供的一些早期預測嗎？所以我讀了一下，這就是你的問題。如果是這樣的話，那麼是的，一定會回覆您。

Great. Appreciate it guys. I'll turn it back.

偉大的。感謝你們。我會把它轉回去。

Thank you at this time. I would like to turn it back over. Actually, I'm sorry, we do have another question is coming from Joe Joseph Reagor of Roth Capital, please proceed with your follow up.

這次謝謝你了。我想把它翻過來。實際上，很抱歉，我們還有另一個問題來自羅斯資本的喬·約瑟夫·里格，請繼續跟進。

Hey, guys. Just had one follow up after effect on the current HALEU contract that's cost plus. Are you guys expecting that contract to continue next year or is that still up for renewal? Just to get an update on it?

嘿，大家好。剛剛對目前 HALEU 合約進行了一次成本加成的後續影響。你們預計該合約明年會繼續嗎，還是仍需續約？只是為了獲得最新消息嗎？

Yeah, thanks for the question, Joe, so that that contract currently expires in November. And we are in regard to phase two, and we have 33-year option periods within phase three. And we're currently working with the doe to extend that contract after the period of performance ends in, November. And, and I should note that it was aligned with the delivery schedule that we had back in November. And so, the formal contract ends on 12.31.2024. But we have the one year period ends in mid-November.

是的，謝謝你的提問，喬，所以那份合約目前將於 11 月到期。我們目前處於第二階段，第三階段有 33 年的選擇期。目前，我們正在與能源部合作，爭取在 11 月的履行期結束後延長合約。而且，我應該指出，這與我們 11 月的交貨計劃一致。因此，正式合約將於2024年12月31日結束。但我們的一年期限將於11月中旬結束。

Okay. Thanks For the color

好的。謝謝你的顏色

Thank you. At this time. I would like to turn the floor back over to Mr. Leistikow for closing comments.

謝謝。此時。我想把發言權交還給萊斯蒂科先生，請他發表最後評論。

Thank you, operator. This concludes our investor call for the third quarter of 2024. As always, I want to thank our listeners online and those who called in. We look forward to speaking with you again next quarter.

謝謝您，接線生。我們對 2024 年第三季的投資者電話會議到此結束。像往常一樣，我要感謝我們的線上聽眾和打電話來的聽眾。我們期待下個季度再次與您交談。

Ladies and gentlemen, this concludes today's event. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

女士們、先生們，今天的活動到此結束。現在您可以斷開線路或退出網路直播，享受剩餘的一天。