Li-Cycle Holdings Corp (LICY) 2023 Q3 法說會逐字稿

Good day. My name is David, and I will be your conference operator today. At this time, I would like to welcome everyone to the Third Quarter 2023 Li-Cycle Holdings Earnings Call and Webcast. (Operator Instructions)

再會。我叫大衛，今天我將擔任你們的會議操作員。現在，我歡迎大家參加 Li-Cycle Holdings 2023 年第三季財報電話會議和網路廣播。 （操作員說明）

I will now turn the call over to Nahla Azmy, Head of Investor Relations. Please go ahead.

我現在將把電話轉給投資者關係主管 Nahla Azmy。請繼續。

Thank you. Good afternoon, and thank you, everyone, for joining us for Li-Cycle's business update and review of financial results ended September 30, 2023. We will start today with formal remarks from Ajay Kochhar, Co-Founder, President and Chief Executive Officer; Tim Johnston, Co-Founder and Executive Chair; and Debbie Simpson, Chief Financial Officer. We will then follow with a Q&A session.

謝謝。下午好，謝謝大家參加我們的 Li-Cycle 業務更新和截至 2023 年 9 月 30 日的財務業績回顧。今天我們將首先由聯合創始人、總裁兼首席執行官 Ajay Kochhar 發表正式演講；提姆·約翰斯頓，聯合創始人兼執行主席；和財務長黛比·辛普森。然後我們將進行問答環節。

Ahead of this call, Li-Cycle issued a press release and a presentation, which can be found in the Investor Relations section of our website at investors.li-cycle.com.

在此次電話會議之前，Li-Cycle 發布了一份新聞稿和演示文稿，您可以在我們網站 Investors.li-cycle.com 的投資者關係部分找到這些內容。

On this call, management will be making statements based on current expectations, plans, estimates and assumptions, which are subject to significant risks and uncertainties, most of which are difficult to predict and many of which are beyond the control of Li-Cycle. Actual results could differ materially from our forward-looking statements if any of our key assumptions are incorrect including because of factors discussed in today's press release during this conference call and then our past reports and filings with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada.

在這次電話會議上，管理層將根據當前的預期、計劃、估計和假設發表聲明，這些聲明受到重大風險和不確定性的影響，其中大多數難以預測，而且許多風險和不確定性超出了Li-Cycle 的控制範圍。如果我們的任何關鍵假設不正確，包括由於今天的新聞稿中討論的因素以及我們過去向美國證券交易委員會和安大略證券提交的報告和文件，實際結果可能與我們的前瞻性陳述存在重大差異加拿大委員會。

These documents can be found on our website at investors.li-cycle.com. We do not undertake any duty to update any forward-looking statements, whether written or oral, made during this call or from time to time to reflect new information, future events or otherwise, except as required. These forward-looking statements should not be relied upon as representing Li-Cycle assessments as of any date subsequent to the date of this call.

這些文件可以在我們的網站 Investors.li-cycle.com 上找到。除非有要求，否則我們不承擔更新本次電話會議期間或不時做出的任何前瞻性聲明（無論是書面還是口頭）的義務，以反映新資訊、未來事件或其他情況。這些前瞻性陳述不應被視為代表 Li-Cycle 在本次電話會議之後的任何日期的評估。

With that, I'm pleased to turn the call to Ajay.

至此，我很高興將電話轉給 Ajay。

Thank you, Nahla, and good afternoon, everyone.

謝謝你，Nahla，大家下午好。

Beginning with Slide 3. We announced in late October that we'll be pausing construction at the Rochester Hub to conduct a comprehensive review of the project. Today, I'll discuss the rationale for that decision. Tim will provide an update on the Spoke & Hub network, and Debbie will review liquidity management and our financing strategy.

從幻燈片 3 開始。我們在 10 月下旬宣布，我們將暫停羅徹斯特樞紐的施工，以對該項目進行全面審查。今天，我將討論該決定的理由。 Tim 將提供 Spoke & Hub 網路的最新信息，Debbie 將審查流動性管理和我們的融資策略。

Turning to Slide 4. I'd like to provide context on what drove our decision to pause the construction work for a comprehensive review. At a high level, it came down to convergence of 2 factors, namely an escalation in actual construction costs versus prior indicative bids and delays in complex financings. Let me walk you through some of the details as you can see here by the time line.

轉向幻燈片 4。我想提供背景信息，說明是什麼促使我們決定暫停施工工作以進行全面審查。從較高層面來看，這歸結為兩個因素的整合，即實際建築成本相對於先前的指示性投標的上升以及複雜融資的延遲。讓我帶您了解一些細節，您可以按時間線在此處看到。

Starting with the Rochester Hub construction milestones and costs as shown in the blue part of the time line. We recently started to recognize actual costs significantly higher than previously estimated based on recent subcontractor agreements for packages of remaining work. This was specifically related to installation costs for mechanical equipment, hiking, structural steel, electrical, instrumentation for measurement and process control devices. This cost pressure was exacerbated by the timing of nearly $4 billion of other major construction projects in the region, starting and ramping late 2023 and early 2024, driving general contractors to draw construction workers from the larger regional area.

從羅徹斯特樞紐建設里程碑和成本開始，如時間軸的藍色部分所示。我們最近開始認識到實際成本明顯高於先前根據最近剩餘工作包的分包商協議估計的成本。這特別與機械設備、遠足、鋼結構、電氣、測量儀表和製程控制設備的安裝成本有關。該地區近 40 億美元的其他重大建設項目將於 2023 年底和 2024 年初啟動並逐步推進，這加劇了這種成本壓力，迫使總承包商從更大的地區吸引建築工人。

Reflecting these escalating construction costs, we arrived at forecasts that result in the aggregate cost of the current scope of the project substantially higher than the previously disclosed budget of $550 million. For reference, the project CapEx to date was approximately $301 million on the projects through September 30, 2023.

考慮到這些不斷上升的建築成本，我們得出的預測結果是，該項目當前範圍的總成本大大高於先前披露的 5.5 億美元的預算。作為參考，截至 2023 年 9 月 30 日，該項目迄今的資本支出約為 3.01 億美元。

In terms of the financing, as shown in green on the top of the timeline. With our capital growth needs, we've been successful in timing strategic and competitive financings such as with Koch, LG Chem, LG Energy Solution and Glencore over the course of 2021 and 2022.

在融資方面，如時間軸頂部綠色所示。根據我們的資本成長需求，我們在 2021 年和 2022 年成功地安排了策略和競爭性融資，例如與 Koch、LG Chem、LG Energy Solution 和 Glencore 的融資。

Also in 2021, we submitted our application and began a rigorous process with the DOE Loan Programs Office. We achieved a significant milestone when we received the conditional loan commitment for gross proceeds of $375 million in late February 2023. While we worked closely with the DOE to progress to the final stage, we were delayed from our initial target close from the end of June to September 2023.

同樣在 2021 年，我們提交了申請，並與能源部貸款計畫辦公室開始了嚴格的流程。當我們在2023 年2 月下旬收到總收益3.75 億美元的有條件貸款承諾時，我們實現了一個重要的里程碑。雖然我們與能源部密切合作以進入最後階段，但我們從6 月底開始的最初目標被推遲了至 2023 年 9 月。

Also at September 30, 2023, the company had contributed approximately $92 million for the construction of process buildings and a warehouse for the Rochester Hub. This spend was incremental to the Hub project budget of $560 million. The company was anticipating a refund of a substantial portion of this contribution upon completion of a building's leasing arrangement.

同樣截至 2023 年 9 月 30 日，該公司已捐款約 9,200 萬美元，用於為羅徹斯特中心建造流程建築和倉庫。這筆支出是 Hub 計畫預算 5.6 億美元的增量。該公司預計在建築物租賃安排完成後將退還大部分捐款。

Through the complexities of bringing together arrangements for the DOE loan and the buildings lease arrangements, both financings were further delayed into October. Subsequently, we've decided not to pursue the building's lease arrangement, which is expected to simplify the DOE loan closing process for the Rochester Hub.

由於能源部貸款安排和建築物租賃安排的複雜性，兩項融資都進一步推遲到 10 月。隨後，我們決定不再尋求建築物的租賃安排，預計這將簡化羅徹斯特中心能源部的貸款結帳流程。

In summary, the escalating construction costs combined with continued delays and closing contemplated financings were leading to lower current and projected cash balances. As we made the swift and prudent determination and announced a pause of the project to complete a comprehensive review. The review is examining expected capital costs, timing of completion and go-forward construction strategy options for the Rochester Hub project.

總而言之，不斷上升的建築成本加上持續的延誤和預期融資的結束導致當前和預期的現金餘額減少。我們迅速、審慎地做出了決定，宣布暫停該項目以完成全面審查。此次審查正在審查羅徹斯特樞紐項目的預期資本成本、完工時間和後續建設策略選項。

Turning to Slide 5, for a snapshot of our current portfolio immediately following the Rochester Hub project pause. The company is undergoing a comprehensive review for bringing on additional Spoke & Hub capacity in the near term. Until the go-forward strategy work is completed, the company will be slowing operations at its North American spokes as it reviews the timing and black mass needs of the Rochester Hub. The company is reviewing its plans, bring on additional spoke capacity in both North America and Europe. And we'll discuss both the hubs and our focus on the Generation 3 spokes in more detail later in the presentation.

轉向幻燈片 5，了解羅徹斯特樞紐項目暫停後我們目前投資組合的快照。該公司正在進行全面審查，以期在短期內增加輻條和輪轂產能。在前進策略工作完成之前，該公司將放慢其北美輻條的運營，同時審查羅徹斯特中心的時間表和黑人群體的需求。該公司正在審查其計劃，在北美和歐洲增加輻條產能。我們將在稍後的演示中更詳細地討論輪轂和我們對第 3 代輪輻的關注。

Turning to Slide 6, for an overview of the key considerations for our ongoing comprehensive review. As I already discussed in early October, we announced a pause on the construction work at the Rochester Hub for a comprehensive review of scope, timing and capital . Additionally, we're evaluating our levers to optimize cash and liquidity including cost spend initiatives, spoke optimization strategy and timing financing needs to support our go-forward plans.

轉向幻燈片 6，概述我們正在進行的全面審查的關鍵考慮因素。正如我在 10 月初已經討論過的那樣，我們宣布暫停羅徹斯特樞紐的建設工作，以對範圍、時間安排和資金進行全面審查。此外，我們正在評估優化現金和流動性的手段，包括成本支出計劃、輪輻優化策略和定時融資需求，以支持我們的前進計劃。

I'll now turn it over to Tim for a more detailed update on our Spoke & Hub network.

我現在將把它交給 Tim，以獲取有關我們的 Spoke & Hub 網路的更詳細的更新。

Thanks, Ajay. Turning to Slide 7, for an overview of the options being considered as part of the Rochester Hub project review. The review is examining a phased approach that ties black mass production from our spoke network to support the battery industry for precursor and cathode production.

謝謝，阿傑。轉向幻燈片 7，概述羅徹斯特樞紐項目審查中考慮的選項。該審查正在研究一種分階段的方法，該方法將我們的輻條網絡的黑色大規模生產聯繫起來，以支持電池行業的前驅體和陰極生產。

In a phased approach, the first phase, as depicted by the green arrows, the black mass is processed to produce a mixed hydroxide precipitate or MHP, a combination of nickel, cobalt and manganese metals. MHP could be sold through a refiner ahead of supplying to the battery precursor industry. In the second phase, per the original plan as depicted with the gray arrows, black mass would be converted directly to nickel and cobalt sulfates ahead of supplying to the battery precursor industry. Both approaches maintain the production of battery-grade lithium carbonate.

在分階段方法中，第一階段（如綠色箭頭所示）處理黑色物質以產生混合氫氧化物沉澱物或 MHP（鎳、鈷和錳金屬的組合）。 MHP 可以在供應給電池前驅體產業之前透過精煉廠出售。在第二階段，按照灰色箭頭所示的原始計劃，黑色物質將直接轉化為硫酸鎳和硫酸鈷，然後供應給電池前驅體產業。這兩種方法都維持了電池級碳酸鋰的生產。

The MHP process was part of Li-Cycle's large-scale pilot program completed in 2019 to 2020 and is included in Li-Cycle's patented technology portfolio. The key factor for this approach is the ability to reduce immediate construction scope to phased development with project financing.

MHP製程是Li-Cycle於2019年至2020年完成的大規模試點計畫的一部分，並包含在Li-Cycle的專利技術組合中。這種方法的關鍵因素是能夠透過專案融資將直接建設範圍縮小到分階段開發。

Turning to Slide 8, to discuss our initial assessment of the Rochester Hub project. As previously disclosed, engineering and procurement of the Rochester Hub project are largely complete. With focus having shifted to construction installation activities. As Ajay discussed earlier, the project has experienced escalating construction costs substantially higher than what was anticipated in the previously disclosed $560 million budget. Additionally, we had contributed approximately $92 million towards an expected total cost of $140 million for the construction of process buildings and warehouse for the Rochester Hub.

轉向幻燈片 8，討論我們對羅徹斯特樞紐計畫的初步評估。如同先前所揭露的，羅徹斯特樞紐專案的設計和採購已基本完成。重點已轉向建築安裝活動。正如阿賈伊之前所討論的，該項目的建設成本不斷上升，遠高於先前披露的 5.6 億美元預算中的預期。此外，我們還捐贈了約 9,200 萬美元，用於為羅徹斯特中心建造流程建築和倉庫，預計總成本為 1.4 億美元。

We had previously anticipated a refund of a substantial portion of this contribution upon completion of building lease arrangements. For background, the decision for entering into the building leasing arrangements were based on an initial intention to focus capital expenditure on core project requirements, specifically not real estate assets. This is aligned with our general approach to project execution. However, we decided not to pursue the building leasing arrangements, which is expected to assist in simplifying the DOE loan closing process for the Rochester Hub.

我們先前預計，在建築租賃安排完成後，這筆捐款的很大一部分將退還。作為背景，簽訂建築物租賃安排的決定是基於將資本支出集中在核心項目需求（特別是房地產資產）的最初意圖。這與我們專案執行的一般方法是一致的。然而，我們決定不尋求建築租賃安排，預計這將有助於簡化羅徹斯特樞紐的能源部貸款關閉流程。

In terms of the go-forward for the Rochester Hub, we have performed an initial analysis of options for completion of the Rochester Hub. Based on the initial analysis and depending on the option selected, we determined that the revised project cost could be in the range of approximately $850 million to approximately $1 billion. This range includes the cost of the process buildings and warehouse for the Rochester Hub of approximately $140 million. This total project range based solely on an initial analysis, is subject to a number of assumptions and will likely change as we continue to complete our comprehensive review work and determine which options to pursue accordingly.

就羅徹斯特樞紐的進展而言，我們對羅徹斯特樞紐的完工方案進行了初步分析。根據初步分析並根據所選方案，我們確定修改後的專案成本可能在約 8.5 億美元至約 10 億美元之間。該範圍包括羅徹斯特中心流程建築和倉庫的成本約 1.4 億美元。這個總項目範圍僅基於初步分析，受到許多假設的影響，並且隨著我們繼續完成全面審查工作並確定相應的選擇，該項目範圍可能會發生變化。

Turning to Slide 9, for an update on the Portovesme Hub, which has a similar flowsheet and benefits to the MHP option are just covered with a phased approach for the Rochester Hub. Just as a reminder, together with our partner, Glencore, we are repurposing part of their existing hydrometallurgical site in Portovesme, Italy. This project contemplates competitive long-term financing from Glencore to fund Li-Cycle's full share of the capital investment. Once operational, this facility is expected to be one of the largest producers of battery-grade lithium carbonate in Europe.

轉向幻燈片 9，了解 Portovesme Hub 的更新，該 Hub 具有類似的流程，並且僅透過羅徹斯特 Hub 的分階段方法介紹了 MHP 選項的優點。謹此提醒，我們正在與我們的合作夥伴嘉能可一起重新利用其位於義大利波托韋斯梅的現有濕式冶金場地的一部分。該專案考慮從 Glencore 獲得有競爭力的長期融資，為 Li-Cycle 的全部資本投資份額提供資金。一旦投入運營，該工廠預計將成為歐洲最大的電池級碳酸鋰生產商之一。

I would like now to hand it over to Debbie for review of our liquidity management and financing strategy.

我現在想將其交給黛比審查我們的流動性管理和融資策略。

Thank you, Tim. Turning to Slide 10, for a review of the steps we are taking to maximize liquidity and preserve our cash on hand. Since pausing the project in late October, we've taken action to optimize cash, while also pursuing financing options and strategic alternatives.

謝謝你，提姆。轉向投影片 10，回顧我們為最大限度地提高流動性和保留手頭現金所採取的步驟。自 10 月底暫停該專案以來，我們已採取行動優化現金，同時也尋求融資方案和策略替代方案。

First, on our cost-cutting actions. We have reduced our workforce, eliminated other nonessential operational spend and are implementing working capital initiatives; have sold operations at our North American Spoke network, including a pause in production at our Ontario Spoke; slowed production at the New York Spoke and the installation of Line 2 in Germany; and are reevaluating the plans and timing of our spokes in Norway, France and Hungary.

首先，關於我們的成本削減行動。我們減少了勞動力，消除了其他不必要的營運支出，並正在實施營運資本計劃；已出售我們北美 Spoke 網路的業務，包括暫停我們安大略 Spoke 的生產；減緩了紐約 Spoke 的生產和德國 2 號線的安裝；並正在重新評估我們在挪威、法國和匈牙利的輻條計劃和時間表。

Turning to Slide 11, for an update on our spokes. With our review of timing and scope for the Rochester Hub, we are now primarily prioritizing our operations on the Generation 3 spokes, specifically Arizona, Alabama and Germany. Consequently, we are revising our 2023 annual production outlook for black mass from 7,500 to 8,500 tonnes down to 5,500 to 6,500 tonnes.

請參閱投影片 11，以了解我們輻條的最新情況。透過對羅徹斯特樞紐的時間安排和範圍進行審查，我們現在主要優先考慮在第三代輻條上的運營，特別是亞利桑那州、阿拉巴馬州和德國。因此，我們將 2023 年黑料年產量預期從 7,500 至 8,500 噸下調至 5,500 至 6,500 噸。

As a reminder, we started up the Germany Spoke Line 1 in early August and are excited to report that the ramp-up is tracking our expectations. The Generation 3 is advanced novel technology that can sustainably process full electric vehicle battery packs without the need for discharging, dismantling our thermal processing. Additionally, they benefit from economies of scale.

提醒一下，我們在 8 月初啟動了德國輻條線 1 號線，並很高興地報告說，其產能成長符合我們的預期。第三代是先進的新技術，可以永續處理全電動汽車電池組，無需放電、拆卸我們的熱處理。此外，他們也受益於規模經濟。

Turning to Slide 12 for an update on our cash position. Since June balance is $289 million, the majority of the cash outflow has been for capital expenditure related to the Rochester Hub project. We ended the third quarter with approximately $137 million of cash on hand, which is now approximately $100 million at November 10. With current cash on hand, our spin cuts and additional cost-saving initiatives on DOE, we anticipate needing additional funding in addition to the DOE loan before restarting the Rochester Hub project.

請參閱投影片 12，以了解我們現金狀況的最新情況。自 6 月餘額為 2.89 億美元以來，大部分現金流出用於與羅徹斯特樞紐項目相關的資本支出。截至第三季末，我們手頭現金約為 1.37 億美元，截至 11 月 10 日，現金約為 1 億美元。根據當前手頭現金、我們的分拆削減以及能源部的其他成本節約舉措，我們預計除了在重啟羅徹斯特樞紐計畫之前獲得能源部貸款。

As an immediate step, the company, in conjunction with its financial advisers is exploring options to support near-term liquidity needs. The company is actively engaged and continues to work closely with the DOE to satisfy conditions precedent to financial close for gross proceeds of $375 million as it undertakes its comprehensive review of the go-forward strategy of the Rochester Hub.

作為立即採取的措施，該公司正在與其財務顧問一起探索支持近期流動性需求的方案。該公司積極參與並繼續與能源部密切合作，以滿足總收益 3.75 億美元財務結算的先決條件，同時對羅徹斯特中心的前進策略進行全面審查。

In addition to the conditions precedent to financial close, the company will need to meet additional conditions precedent prior to the first advance, including obtaining additional financing to fund the required base equity commitment before restarting the Rochester Hub project. In parallel, we are exploring additional long-term financing options as well as strategic alternatives.

除了財務交割的先決條件外，該公司還需要滿足首次預付款之前的其他先決條件，包括在重啟羅徹斯特樞紐項目之前獲得額外融資，為所需的基本股權承諾提供資金。同時，我們正在探索其他長期融資方案和策略替代方案。

Turning to Slide 13, to conclude. We continue to believe Li-Cycle is uniquely positioned with its Spoke & Hub network and remains poised to benefit from strong secular trends and supportive government policy. We remain committed to our mission to recover critical battery materials to create a domestic closed-loop battery supply chain for a clean energy future.

轉向投影片 13，得出結論。我們仍然相信 Li-Cycle 憑藉其 Spoke & Hub 網路擁有獨特的地位，並且仍有望受益於強勁的長期趨勢和支持性政府政策。我們仍然致力於回收關鍵電池材料的使命，為清潔能源的未來創建國內閉環電池供應鏈。

Operator, we are now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions) We'll take our first question from Brian Dobson with Chardan Capital Markets.

（操作員說明）我們將回答 Chardan Capital Markets 的 Brian Dobson 提出的第一個問題。

As you contemplate this strategic pause in development outside of the United States in the European countries, so you're looking to build hubs and spokes, what do you think is the likelihood that those projects will simply be halted by understandably concerned partners and investors?

當您考慮在美國以外的歐洲國家進行策略性開發時，您正在尋求建立樞紐和輻條，您認為這些專案將被可以理解的相關合作夥伴和投資者停止的可能性有多大？

Brian, it's Ajay here. And you're a bit hard to hear, but I think you're asking about the effect on our European projects deal what we've just decided to do or we start to do with the Rochester Hub. I'll turn it over to Tim, perhaps, to cover that.

布萊恩，我是阿傑。你的聲音有點難以聽清，但我認為你是在問我們剛剛決定要做的或我們開始對羅徹斯特中心進行的歐洲計畫交易的影響。也許我會把它交給提姆來解決這個問題。

Yes. No worries. Brian, nice to talk to you. So when it comes to European assets similar to the balance of our projects, it's all part of this broader comprehensive review that we're doing with the exception of Portovesme, which is the DFS timing is under review, but otherwise is continuing in connection with partnership. And I think that was part of your question with Glencore. I want to highlight that our partners and our customers have been extremely positive and supportive throughout this process.

是的。不用擔心。布萊恩，很高興和你說話。因此，當涉及與我們的專案平衡類似的歐洲資產時，這都是我們正在進行的更廣泛的全面審查的一部分，但 Portovesme 除外，DFS 的時間安排正在接受審查，但其他方面正在繼續與合夥。我認為這是你向嘉能可提出的問題的一部分。我想強調的是，我們的合作夥伴和客戶在整個過程中都非常積極和支持。

That's good to hear. As it pertains to the Department of Energy, I understand that you retained an investment bank to seek out strategic alternatives and financing opportunities. As management is contemplating receiving funds from DOE, how likely do you think that is if you had to handicap it?

聽起來還不錯。由於它與能源部有關，我了解您聘請了一家投資銀行來尋找策略替代方案和融資機會。由於管理層正在考慮從能源部獲得資金，您認為如果您必須對其進行阻礙，這種情況的可能性有多大？

Yes, I'll take it. It's Ajay. Look, so let's be very clear. And I think there was a lot of misnomer out there in articles and other aspects that we saw publicly. To be clear, we were in a quiet period, so we want to ensure that we're being prudent. Look, the fact haven't changed. We have a conditional commitment from the DOE. We still have the conditional commitment from the DOE that was issued back in February of 2023 of this year. That came in for gross proceeds of $375 million.

是的，我會接受的。是阿傑。聽著，讓我們說得非常清楚。我認為我們公開看到的文章和其他方面存在著許多用詞不當的情況。需要明確的是，我們正處於安靜時期，因此我們希望確保謹慎行事。你看，事實沒有改變。我們得到了能源部有條件的承諾。我們仍然擁有能源部於今年 2023 年 2 月發布的有條件承諾。總收益達 3.75 億美元。

They've been great to work with through this process. We're very close to engage. We're not just saying that as random language, it's obviously in partnership with them in terms of whatever we put out there. What I would say is we definitely have some work still to do. And I think Tim covered in the body here, different options associated with the potential phasing of the project and also around construction strategy. As you can imagine, that's very important for us to be working through with the DOE.

在整個過程中與他們合作非常愉快。我們非常接近接觸。我們不僅僅是說作為隨機語言，顯然我們在發布的內容方面與他們合作。我想說的是，我們肯定還有一些工作要做。我認為蒂姆在這裡的正文中介紹了與專案的潛在階段以及建立策略相關的不同選擇。正如您可以想像的那樣，這對於我們與能源部的合作非常重要。

And so as we get through the full review and we get to the best path forward, it's going to be in concert with that DOE package. Today, we're not ready to comment about how that may change or how that may differ. What I can tell you is the fact remains that we have a commitment and programmatically from the DOE, this is public, you can find it, when they give a conditional commitment , they actually earmark the funds. So what we need to do is work through our review, work with them and then we'll be able to give more clarity vis-a-vis timing and other aspects.

因此，當我們完成全面審查並找到最佳前進道路時，它將與能源部的一攬子計劃保持一致。今天，我們還沒有準備好評論這種情況可能會如何改變或有何不同。我可以告訴你的是，事實仍然是，我們有能源部的承諾，並且有計劃地做出了承諾，這是公開的，你可以找到它，當他們做出有條件承諾時，他們實際上指定了資金。因此，我們需要做的是透過我們的審查，與他們合作，然後我們將能夠在時間表和其他方面提供更清晰的資訊。

Okay. And then just one final follow-up. Local news reports have indicated that several contracting firms had outstanding bills that have not yet been paid. Would you care to comment on that? Is that because you're negotiating those firms? Or what's going on there that those pertain to the Rochester Hub facility?

好的。然後是最後一個後續行動。當地新聞報道稱，幾家承包公司有未付帳單。您願意對此發表評論嗎？是因為你正在與那些公司談判嗎？或者那些與羅徹斯特中心設施有關的地方正在發生什麼？

Yes, Tim, you can take that.

是的，提姆，你可以接受。

Yes. No worries. And Brian, we can't comment specifically on individual contractors. I'd just say that we're working closely with all stakeholders as part of this review process.

是的。不用擔心。布萊恩，我們無法具體評論個體承包商。我只想說，作為審查過程的一部分，我們正在與所有利益相關者密切合作。

We will take our next question from Jeff Osborne with TD Cowen.

我們將回答 Jeff Osborne 和 TD Cowen 提出的下一個問題。

I was just wondering if you could comment a little bit further. You mentioned that you will need some additional financing before to meet DOE conditions. Could you maybe just elaborate a little bit more about how much may be required?

我只是想知道你是否可以進一步評論一下。您提到您之前需要一些額外的融資才能滿足能源部的條件。能否詳細說明可能需要多少資金？

Sure. Jeff, it's Ajay here. So we just wanted to make sure that it's clear how the structure works. So let's be very clear. The DOE has always had the base equity commitment, and it's actually, I believe, a programmatic feature for them, much like usual project financing, which means as of the overall project size, you have to put in a certain amount of equity first then followed by the debt coming in.

當然。傑夫，我是阿傑。所以我們只是想確保清楚該結構是如何運作的。所以讓我們非常清楚。美國能源部一直都有基本股權承諾，我認為這實際上是他們的一個程序化特徵，就像通常的專案融資一樣，這意味著就整個專案規模而言，你必須先投入一定數量的股權，然後隨之而來的是債務。

As you can imagine, if the capital cost is different, then the project size is bigger. And with an existing commitment remaining at $375 million, there's an additional funding need. And so on Page 8, we went over indicatively initially where those capital costs would be depending on the options selected and proceeding with the same approach on the upper end with respect to contracting strategy.

可以想像，如果資金成本不同，那麼專案規模就更大。由於現有承諾仍為 3.75 億美元，因此還需要額外的資金。等等，在第 8 頁，我們最初指示性地討論了這些資本成本將取決於所選的選項，並在合約策略的高端採用相同的方法。

I think it's early for us to say precisely what that gap is. You can do that based on this. But I think what we'd like to do is complete the work, the refined level of these numbers, which could change, and then come back and be able to talk about all of that together comprehensively in concept and as and when appropriate with other financing alternatives that we're going to be working on.

我認為我們現在準確地說出這個差距是什麼還為時過早。你可以根據這個來做。但我認為我們想要做的是完成工作，這些數字的細化水平可能會發生變化，然後回來並能夠在概念上以及在適當的時候與其他人一起全面討論所有這些我們將要研究的融資替代方案。

Okay. And just on the cash preservation plan, it's helpful that you provided where you stand on cash in terms of November 10 versus the end of the quarter. Just wanted to see if you could maybe provide a little bit more detail on where do you see the cash burn being on a monthly basis once you've like fully implemented the cash preservation plan.

好的。僅就現金保存計劃而言，您提供了 11 月 10 日與季度末的現金狀況，這很有幫助。只是想看看，一旦您想完全實施現金保存計劃，您是否可以提供更多詳細信息，說明您每月在哪裡看到現金消耗。

I'll give it to Debbie to address.

我會把它交給黛比處理。

Jeff, I appreciate the question. I think what we need to do, and I think you read in some of the materials or heard us say that we're working with some advisers to help us with that. I think we really need to work through that front and then circle back to that. In conjunction with the comprehensive review, they are still really working in parallel.

傑夫，我很欣賞這個問題。我認為我們需要做什麼，我想您閱讀了一些材料或聽到我們說我們正在與一些顧問合作來幫助我們做到這一點。我認為我們確實需要解決這個問題，然後再回到這個問題。結合全面審查，他們還是真正並行工作的。

As an initial step, you saw in the details, we've downsized our workforce, we're slowing production at other plants, and we're also looking at opportunities to maximize liquidity under working capital position. So we're working with suppliers. We're looking at selling black mass versus the path that we were on, which was to build inventory for the opening of the hub. And that work will continue and we'll get deeper into that as it progresses.

作為第一步，您可以在細節中看到，我們已經縮小了勞動力規模，我們正在放慢其他工廠的生產速度，我們還在尋找在營運資本狀況下最大化流動性的機會。所以我們正在與供應商合作。我們正在考慮銷售黑色物質，而不是我們所走的道路，即為中心的開放建立庫存。這項工作將繼續下去，隨著工作的進展，我們將更深入地研究它。

(Operator Instructions) We'll take our next question from Adam Jonas with Morgan Stanley.

（操作員說明）我們將接受摩根士丹利的 Adam Jonas 提出的下一個問題。

I was going to ask about the minimum -- about the pro forma burn as well, but I appreciate you're not going to answer that right now. But maybe you could answer if -- is there any remaining CapEx commitment? Or what financial cash commitments are like near term for the Rochester Hub even with the pause? And then I was curious, as a follow-up, what -- if you had an assessment of minimum cash on the balance sheet to kind of run working capital payroll and your other operational needs with the pause.

我本來想問最低限度的問題——還有預計的燒錢，但我很高興你現在不打算回答這個問題。但也許您可以回答是否還有剩餘的資本支出承諾？或者即使暫停，羅徹斯特樞紐近期的財務現金承諾又會怎樣？然後我很好奇，作為後續行動，如果您對資產負債表上的最低現金進行評估，以在暫停期間運行營運資金工資單和其他營運需求，該怎麼辦？

Yes. Yes, your questions are both for Debbie.

是的。是的，你們的問題都是問黛比的。

Adam. Yes, as I said, we've got $100 million as of right now. And as we work through this plan absolutely working on a minimum that we need and then working around that minimum and to build on near-term financial options around that to support it, it's going to be really important.

亞當。是的，正如我所說，我們現在已經有 1 億美元了。當我們制定這個計劃時，絕對會按照我們需要的最低限度進行工作，然後圍繞該最低限度進行工作，並圍繞該最低限度建立近期財務選擇來支持它，這將非常重要。

You asked about capital commitments. I think there's a couple of things in there. One is we paused on future growth capital projects. So there's nothing flown out as a result of that. And then clearly, everything runs roughly about a month behind, any status. So you're absolutely right, there are still bills to be paid with regards to recent work at the Rochester Hub.

您詢問了資本承諾。我認為裡面有幾件事。一是我們暫停了未來的成長資本項目。因此，沒有任何東西因此而飛出。然後很明顯，無論任何狀態，一切都大約落後一個月左右。所以你是完全正確的，羅徹斯特中心最近的工作仍然需要支付帳單。

In addition to that, we've got costs around securing the site, making the site safe and keeping it in a good preserved state so that it's in good state for a fast start up when we're ready to do that. So we'll run through onetime costs in the next couple of months, including the cost of our workforce reduction to work through in November, December. So I think that will give you an idea of the sort of speed bumps that we need to hit in the next little while. And then as we complete the work around the cash preservation plan, we'll have more of a sense of what the run rate is at the back of that.

除此之外，我們還需要保護網站、確保網站安全並將其保持良好的保存狀態，以便在我們準備好時能夠處於快速啟動的良好狀態。因此，我們將在接下來的幾個月內計算一次性成本，包括 11 月、12 月的裁員成本。所以我認為這會讓你了解我們在接下來的一段時間內需要遇到的減速帶。然後，當我們完成圍繞現金保存計劃的工作時，我們將更加了解背後的運作率。

We'll take our next question from Matthew O'Keefe with Cantor Fitzgerald.

我們將回答馬修·奧基夫和坎托·菲茨杰拉德提出的下一個問題。

Just a question on, you're changing the flowsheet a little bit here. I understand you want to go to produce MHP in your review of Rochester. It sounds like it will save some CapEx, and I can see that. But why are you applying that also to the Portovesme Hub? Is there -- is it a significant CapEx? Or is it -- is the premium just not there to produce nickel sulfate and cobalt sulfate? What should we be thinking about on your -- on this side of things?

只是一個問題，你在這裡稍微改變流程圖。我知道您想在對羅徹斯特的評論中製作 MHP。聽起來這會節省一些資本支出，我可以看到這一點。但為什麼您也將其應用於 Portovesme Hub？是否存在重要的資本支出？或者是——生產硫酸鎳和硫酸鈷就沒有溢價嗎？我們該在你的這一方面考慮什麼？

Matt, those three questions, good for Tim to address.

馬特，這三個問題很適合提姆來解決。

Matt, nice to talk to you. So let me answer the first one, which -- in relation to for Portovesme just to make it clear. So the plan for Portovesme was always to produce MHP when we originally scoped it out. And there was a couple of factors that were driving that. One being the desire to maximize the utilization of existing equipment on site, i.e., the MHP process was much more well-tied to the existing footprint of the existing asset on site, making it more expedient and effectively a lower capital project overall. This is a process that we're very familiar with.

馬特，很高興和你說話。因此，讓我回答第一個問題，即與 Portovesme 相關的問題，只是為了澄清這一點。因此，當我們最初確定範圍時，Portovesme 的計劃始終是生產 MHP。有幾個因素推動了這一點。其中之一是希望最大限度地利用現場現有設備，即MHP 流程與現場現有資產的現有佔地面積更加緊密地聯繫在一起，使其成為一個整體資本較低的項目，更加方便、有效。這是一個我們非常熟悉的過程。

And when it comes to Rochester, part of the rationale for driving that, you touched on it exactly right and that is that it reduces the near-term capital expenditure associated with installing certain parts of the plant associated with sulfate production. What we have seen from a market perspective, and this is public and you can look up the indexes, is the spread between MHP discounts to metal and sulfate has narrowed and so the financial impact is somewhat negated by that combination. So it's a decision that's based primarily on construction costs but there is market factors that you can see that have changed in recent times that are also helping support that.

當談到羅徹斯特時，推動這一目標的部分原因，你說得完全正確，那就是它減少了與安裝與硫酸鹽生產相關的工廠某些部分相關的近期資本支出。我們從市場角度看到的是，這是公開的，您可以找到指數，MHP 對金屬和硫酸鹽的折扣之間的價差已經縮小，因此這種組合在一定程度上抵消了財務影響。因此，這是一個主要基於建築成本的決定，但您可以看到最近發生變化的市場因素也有助於支持這一決定。

And on the other side of that, just to add, obviously, the input typically to precursor and the input to cathode thereafter, the precursor is the sulfate typically. And so one thing that's been missing in North America is precursor manufacturing. And there are some plants out there, people can see them publicly, that are coming but it is taking longer than anticipated. So we don't have an answer today what pathway it would go. We do still see the value in the sulfate to be more adjacent to [PKN] production, precursor production. But as Tim indicated, it's really a question of if we go that path, how you get there?

另一方面，顯然，只是添加通常到前體的輸入以及隨後到陰極的輸入，前體通常是硫酸鹽。因此，北美缺少的一件事就是前驅製造。還有一些植物，人們可以公開看到它們，即將到來，但需要的時間比預期的要長。所以我們今天還沒有答案它會走哪條路。我們仍然認為硫酸鹽的價值與 [PKN] 生產、前驅生產更接近。但正如蒂姆所指出的，這實際上是一個問題，如果我們走這條路，你如何到達那裡？

Okay. Got it. And if I may, just on the CapEx for the process and warehouse buildings, you suggested that was tied to the DOE loan. Is it just that the DOE needs something more in terms of security like lands to -- as part of the loan requirement?

好的。知道了。如果可以的話，就流程和倉庫建築的資本支出而言，您建議這與能源部貸款掛鉤。作為貸款要求的一部分，能源部是否需要土地等更多擔保？

Matt, it's Ajay. Yes. So as Tim articulated briefly, we usually try to do this. And for our spokes, it's usually much simpler because they're smaller and more typical buildings. So our original approach, it's been in our FS along the way, our financial statements, is we wanted to do this building leasing arrangement, which would have refunded us a good quantity of amount, of the amount that we spend to actually build the buildings. And then the idea was that, that would convert it to a lease.

馬特，我是阿傑。是的。正如蒂姆簡要闡述的那樣，我們通常會嘗試這樣做。對於我們的輻條來說，它通常要簡單得多，因為它們是更小、更典型的建築。因此，我們最初的方法，一直在我們的財務報表中，我們的財務報表中，我們想要進行這種建築物租賃安排，這將退還我們大量的金額，即我們實際建造建築物所花費的金額。然後的想法是，將其轉換為租賃。

So it's a way to basically refund CapEx, and it's been articulated in the presentation, we're not a real estate company. So we don't really want to make money out the stuff in the buildings. However, as you can imagine, that arrangement would have a set of creditors and the DOE is another financing party for the project. So it's always been that way along the course.

因此，這是一種基本上退還資本支出的方式，並且在演示中已經闡明，我們不是房地產公司。所以我們真的不想靠建築物裡的東西賺錢。然而，正如您可以想像的那樣，這種安排將有一組債權人，而能源部是該專案的另一個融資方。所以在整個過程中一直都是這樣。

But as you can also imagine, getting the short strokes on documentation, it, frankly, was very complicated. So that's why I referred to them as complex financings. And having this, it's not ideal the way this happened, but we have an opportunity to rebase and do this in a way that makes a lot of sense. And I mentioned that, it would help with simplifying the overall complexity that we were facing as part of DOE transaction.

但正如你也可以想像的那樣，坦白說，在文件上寫出簡短的筆畫是非常複雜的。這就是為什麼我將它們稱為複雜融資。有了這個，發生這種情況的方式並不理想，但我們有機會重新定位並以一種有意義的方式做到這一點。我提到過，這將有助於簡化我們作為能源部交易的一部分所面臨的整體複雜性。

And we'll take our next question is Ben Kallo with Baird.

我們的下一個問題是 Ben Kallo 和 Baird 的問題。

I just -- I want to understand Ajay, just on spokes. What -- and I think you said in the prepared remarks what was paused and what wasn't. But could you just run me through that? And then like I think Adam asked a question about just commitment, capital commitments to the hub, but are there anything capital commitment to the spokes that are still out there?

我只是——我想了解阿傑，只是在輻條上。什麼——我想你在準備好的發言中說了哪些內容被暫停了，哪些內容沒有暫停。但你能幫我介紹一下嗎？然後，就像我認為亞當問了一個關於承諾的問題，對中心的資本承諾，但是對輻條的資本承諾仍然存在嗎？

Sure. So maybe Tim take the first and then Debbie could take a second on spokes.

當然。所以也許提姆可以拿第一個，然後黛比可以用輻條拿第二個。

Yes, no problem. Ben, nice to talk to you. And so when it comes to the spokes with pause one spoke in Ontario. This was our first Generation 1 spoke. It was the smallest of our network. And so as part of this strategy, we decided to pause that asset. And the other spokes in North America remain operational.

是沒有問題。本，很高興和你說話。因此，當談到帶有暫停的輻條時，安大略省的一位發言人發表了講話。這是我們的第一代輻條。這是我們網路中最小的一個。因此，作為該策略的一部分，我們決定暫停該資產。北美的其他輻條仍在運作。

And on future CapEx spend. So you've heard us talk in our disclosures before we had plans underway for a second line in Germany spoke and we've also got plans (inaudible). We have a location in Norway, and we had plans underway for France, and we were looking at site selection for Hungary. So we paused those initiatives until we complete this comprehensive review.

以及未來的資本支出。因此，在我們計劃在德國進行第二條生產線之前，您已經在我們的披露中聽到我們的講話，我們也已經制定了計劃（聽不清楚）。我們在挪威有一個工廠，我們正在規劃法國的工廠，我們正在考慮匈牙利的工廠選址。因此，我們暫停了這些舉措，直到完成全面審查。

Suffice to say that the hub is the main capital spend for us. So just relatively.

可以說，該樞紐是我們的主要資本支出。所以只是相對而言。

You answered a question about black mass sales versus [low build] inventory. I just want to understand, with the operating spokes, if the black mass sales are profitable on those individual spokes. And then I have one follow-up.

您回答了有關黑人大規模銷售與[小批量]庫存的問題。我只是想了解，對於正在運營的輻條，黑人大規模銷售是否在這些單獨的輻條上有利可圖。然後我有一個後續行動。

Yes. So the way that we've looked at the portfolio is: One, prioritizing customer needs. So we have customer obligations where we need to service batteries that need to be recycled. Two, we've looked at the spokes that have the best economies of scale. So focused on low-cost conversion, ability to get to further ramp up, et cetera. And three, vis-a-vis profitability, I think I'll hold on comment on it to say anything outside of our FS, but suffice to say that the way that we've optimized the network, and we'll continue to look at is intended to be liquidity generating over time and liquidity managing as part of our cash preservation line.

是的。因此，我們看待產品組合的方式是：第一，優先考慮顧客需求。因此，我們有客戶義務，需要對需要回收的電池進行維修。第二，我們研究了具有最佳規模經濟的輻條。因此，重點關注低成本轉換、進一步提升的能力等等。第三，關於盈利能力，我想我會繼續評論我們的金融服務之外的任何事情，但足以說我們優化網絡的方式，我們將繼續尋找at 旨在隨著時間的推移產生流動性，並作為我們現金保存線的一部分進行流動性管理。

Okay. Great. And just a follow-up. Tim, in prepared remarks, you said about the Glencore site, the CapEx. So is it -- does that still proceed (inaudible) Rochester might be held up for a little bit?

好的。偉大的。只是後續行動。提姆，在準備好的發言中，您談到了嘉能可網站的資本支出。那麼，事情是否仍在繼續（聽不清楚），羅徹斯特可能會被耽擱一段時間？

Yes. Glencore and Li-Cycle are both committed to the Portovesme Hub project. We think that it's critically important for both companies and for the region. And so the key thing that we're just reviewing is the timing. We've had some change in staff obviously. And so we're just reviewing the timing associated with the FS, but both companies remain committed to the project.

是的。 Glencore 和 Li-Cycle 都致力於 Portovesme Hub 專案。我們認為這對公司和該地區都至關重要。因此，我們剛剛審查的關鍵是時機。顯然，我們的人員發生了一些變化。因此，我們只是審查與 FS 相關的時間安排，但兩家公司仍然致力於該專案。

And it appears there are no further questions in queue. Thank you, everyone, for joining. This does conclude today's program, and you may now disconnect.

隊列中似乎沒有其他問題了。謝謝大家的加入。今天的節目到此結束，您現在可以斷開連線了。