(LICY) 2023 Q4 法說會逐字稿

Good day.

再會。

My name is Todd, and I will be your conference operator.

我叫托德，我將擔任您的會議操作員。

At this time, I would like to welcome everyone to the Fourth Quarter and Full Year 2023 Li-Cycle Holdings earnings call and webcast.

此時此刻，我謹歡迎大家參加 Li-Cycle Holdings 2023 年第四季和全年財報電話會議和網路廣播。

(Operator Instructions).

（操作員說明）。

Thank you.

謝謝。

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

我現在將把電話轉給投資者關係主管 Nahla Azmy。

Please go ahead.

請繼續。

Thank you.

謝謝。

Good morning, and thank you, everyone, for joining us for Li-Cycle business update and review of financial results ended December 31st, 2023.

早安，謝謝大家參加我們的 Li-Cycle 業務更新和截至 2023 年 12 月 31 日的財務業績審查。

We will start today with formal remarks Symantec culture, Co-Founder, President and Chief Executive Officer, Tim Johnston, Co-Founder and Executive Chair, and Debbie Simpson, Chief Financial Officer.

我們將從今天開始，賽門鐵克文化聯合創始人、總裁兼首席執行官蒂姆·約翰斯頓（Tim Johnston）聯合創始人兼執行主席以及首席財務官黛比·辛普森（Debbie Simpson）發表正式講話。

We will then follow with a Q&A session ahead of this call, Li-Cycle issued a press release and a presentation which can be found on the Investor Relations section of our website at investors.li-Cycle.com.

然後，我們將在本次電話會議之前進行問答環節，Li-Cycle 發布了新聞稿和演示文稿，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.

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。

Actual results could differ materially from our forward-looking statements if any of our assumptions are incorrect, including that because of factors discussed in today's press release during this conference call and in our past reports and filings with the US, Securities and Exchange Commission and the Ontario Securities Commission in Canada.

如果我們的任何假設不正確，實際結果可能與我們的前瞻性陳述有重大差異，包括由於今天的新聞稿中本次電話會議期間討論的因素以及我們過去向美國、證券交易委員會和美國證券交易委員會提交的報告和文件中討論的因素。加拿大安大略省證券委員會。

These documents can be found on our website at investors.li-Cycle.com and 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 by 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，並且不承擔更新任何前瞻性聲明的義務，無論是在本次電話會議期間或不時做出的書面或口頭聲明，以反映新信息、未來事件或其他情況，除非這些前瞻性陳述要求，否則不應依賴這些前瞻性陳述代表 Li-Cycle 在本次電話會議之後的任何日期的評估。

With I will turn the call to Ajay.

我將把電話轉給 Ajay。

Thank you, Nahla, and good morning, everyone.

謝謝你，Nahla，大家早安。

On our last call held in mid-November, we committed to providing an update on our progress since pausing construction and initiating a strategic review of the go-forward strategy for our Rochester Hub.

在 11 月中旬舉行的最後一次電話會議上，我們承諾提供自暫停施工以來的最新進展情況，並啟動對羅徹斯特樞紐前進策略的策略審查。

Today, we're pleased to share the meaningful steps taken towards achieving the key objectives from this review and also to discuss our 2023 financial and operating results.

今天，我們很高興分享為實現本次審查的主要目標而採取的有意義的步驟，並討論我們 2023 年的財務和營運績效。

Starting on Slide 3, on the left side are the key objectives we discussed on our last earnings call.

從投影片 3 開始，左邊是我們在上次財報電話會議上討論的主要目標。

On the right side, I will review the highlights and key actions we've taken to help achieve.

在右側，我將回顧我們為幫助實現這一目標所採取的亮點和關鍵行動。

I'll provide more on these later in the presentation.

我將在稍後的演示中提供更多相關內容。

First, regarding financing, the special committee of the Board of Directors conducted a robust process to review and evaluate potential financial and other strategic alternatives available to the company, including to increase our liquidity after careful review and assessment of the alternatives identified through this process and consistent with the recommendation of the special committee management and the Board were pleased to expand the fund Li-Cycles, existing long-term partnership with Glencore to increase the strategic investment in Li-Cycle, I said a $75 million.

首先，在融資方面，董事會特別委員會進行了嚴格的流程，以審查和評估公司可用的潛在財務和其他策略替代方案，包括在仔細審查和評估透過該流程確定的替代方案後增加我們的流動性，以及根據特別委員會管理層和董事會的建議，很高興擴大Li-Cycles基金，與嘉能可現有的長期合作夥伴關係增加了對Li-Cycle的戰略投資，我說是7500萬美元。

Second, with respect to the DOE loan process, simultaneous with our comprehensive review we've been actively engaged with the DOE Loan Programs Office regarding the conditional commitment for a loan of up to $375 million.

其次，關於能源部貸款流程，在進行全面審查的同時，我們一直在積極與能源部貸款計劃辦公室就最高 3.75 億美元貸款的有條件承諾進行接觸。

Third, regarding liquidity, we implemented a cash preservation plan to reduce non-core spend to slow cash outflows.

第三，在流動性方面，我們實施了現金保存計劃，減少非核心支出，減緩現金流出。

While we evaluate financing options to support our ongoing operations and a restart of construction at the Rochester health project, finally on the Rochester Hub.

我們正在評估融資方案，以支持我們正在進行的營運以及羅徹斯特健康計畫（最終是羅徹斯特樞紐）的建設重啟。

As part of our comprehensive review, we've been conducting an internal technical and economic review to assess a possible change in the project development strategy.

作為全面審查的一部分，我們一直在進行內部技術和經濟審查，以評估專案開發策略可能發生的變化。

The review confirmed the technical viability of the process to produce lithium carbonate and mixed hydroxide persisted for MHP.

回顧證實了 MHP 持續生產碳酸鋰和混合氫氧化物的製程的技術可行性。

Turning to Slide 4 for an overview of our partnership.

請參閱投影片 4，以了解我們的合作夥伴關係概述。

Glencore is now nearly two years of collaboration with an alignment of strategic vision, technical expertise in asset networks in 2022 Glencore invested $200 million in Li-Cycle through an unsecured convertible note and designated us as their preferred partner.

嘉能可目前已與戰略願景、資產網路技術專長保持一致，合作已近兩年。嘉能可將於2022 年透過無擔保可轉換票據向Li-Cycle 投資2 億美元，並指定我們為其首選合作夥伴。

We formed a global strategic collaboration that aims to create an integrated platform to supply our global customer base with both primary and recycled critical battery materials specifically, we previously entered into long-term intake and offtake commercial agreements, which enable us to jointly develop FEED opportunities for our spokes, secure offtake for the and byproducts produced at our spokes and hubs and obtain a supply of key regional folks for our future.

我們建立了全球策略合作，旨在創建一個綜合平台，為我們的全球客戶群提供初級和再生關鍵電池材料，特別是，我們之前簽訂了長期進口和承購商業協議，這使我們能夠共同開發FEED機會對於我們的輻條，確保我們的輻條和中心生產的產品和副產品的採購，並為我們的未來獲得關鍵的區域人員的供應。

How Turning to slide 5, for details on Glencore's additional investment for $75 million in a senior secured convertible note.

如何 前往投影片 5，了解嘉能可額外投資 7,500 萬美元優先擔保可轉換票據的詳細資訊。

This investment, which enhances Li-Cycle liquidity, represents an interim step in our funding strategies for our future plans.

這項投資增強了 Li-Cycle 的流動性，是我們未來規劃融資策略的臨時步驟。

These notes will have a five year maturity to March 2029 and will have an initial conversion price of $0.53 per Li-Cycle common share.

這些票據的期限為五年，截至 2029 年 3 月，初始轉換價格為每股 Li-Cycle 普通股 0.53 美元。

Cash interest payments will be based on the secured overnight financing rate or silver plus 5% per year.

現金利息支付將基於擔保隔夜融資利率或白銀利率加上每年 5%。

And payment in kind or pick interest payments will be based on silver plus 6% per year.

實物支付或精選利息支付將以白銀為基礎增加每年 6%。

In addition, Li-Cycle in Glencore have agreed to amend the terms of the existing Glencore convertible unsecured note, which was issued to Glencore in 2022 and currently has an aggregate principal amount outstanding of approximately $225 million,

此外，嘉能可的Li-Cycle已同意修改現有嘉能可可轉換無擔保票據的條款，該票據於2022年向嘉能可發行，目前未償還本金總額約為2.25億美元，

Which includes the tech institute charges, the two Tranches would have among other changes, extended maturities and a recent conversion price to the lower of an amount based on the 30-day view off of the 25% premium and 995 per share in each case, based on the earlier of certain trigger events for Tranche 1, Tranche 1 the modification date would be the earlier of one month after the effectiveness initial funding of a project of financing for the Rochester Hub and December 31st, 2024,

其中包括科技機構費用，這兩個部分將有其他變化，延長期限和最近的轉換價格為基於 30 天的 25% 溢價和每股 995 美元的較低金額，根據第1 階段的某些觸發事件中較早的一個，第1 階段的修改日期將是羅徹斯特中心融資項目初始融資生效後一個月和2024 年12 月31 日，以較早者為準，

And for Tranche 2 the modification date would be earlier of the first commercial production from the Rochester Hub.

對於第二批，修改日期將早於羅徹斯特中心的首次商業生產。

Construction costs exceeding the construction budget set forth in the project, both answering and June first, 2026.

建設成本超出了專案中規定的建設預算，均答覆於 2026 年 6 月 1 日。

As discussed earlier, we believe this additional financing with Glencore demonstrates continued support of Li-Cycle business model.

如前所述，我們相信嘉能可的此額外融資顯示了對鋰循環商業模式的持續支持。

I'll now turn it over to Tim to cover a review of the portfolio and operations.

現在我將把它交給蒂姆來審查投資組合和營運。

Thank you, Ajay.

謝謝你，阿傑。

Turning to Slide 6 to discuss our black mass production strategy.

轉向投影片 6 來討論我們的黑色量產策略。

In 2023, we've produced 6,825 tonnes of black mass more than 1.5 times the level achieved in 2022.

2023 年，我們生產了 6,825 噸黑色物質，是 2022 年產量的 1.5 倍以上。

This exceeded the top end of our revised guidance of 5.5 to 6,500 tons.

這超出了我們修訂後的指導值 5.5 至 6,500 噸的上限。

As noted on prior calls, in the near to term, our black mass production will be tied to the availability of feedstock in local markets and the key strategic customers in close proximity to our Spark operations.

正如先前的電話會議中所指出的，在短期內，我們的黑色大規模生產將取決於當地市場的原料供應情況以及靠近我們 Spark 業務的關鍵策略客戶。

Longer term, we will strategically time production in line with the internal demand for black mass.

從長遠來看，我們將根據黑色物質的內部需求策略性地安排生產時間。

Turning to Slide 7 for the highlights of our Spark operations covering battery materials, sourcing processing as well as biomass production.

請參閱幻燈片 7，了解我們 Spark 業務的亮點，涵蓋電池材料、採購加工以及生物質生產。

First, regarding the composition of source battery materials, as seen on the top left in terms of form factor the predominant Lithium-ion battery intake material continued to be manufacturing scrap, followed by EV battery packs on the right side for our intake of various battery chemistry types.

首先，關於源電池材料的組成，如左上方形狀因素所示，主要的鋰離子電池攝入材料仍然是製造廢料，其次是右側的電動汽車電池組，用於我們攝入的各種電池化學類型。

The largest bucket in 2023 remained NMC.

2023 年最大的桶子仍然是 NMC。

However, it is worth noting that we are in a position to serve the adoption of changing battery chemistries, including LFP, which has been gaining prominence in the industry, particularly in Europe.

然而，值得注意的是，我們能夠為不斷變化的電池化學物質的採用提供服務，其中包括磷酸鐵鋰，它在行業中（尤其是在歐洲）日益受到關注。

With respect to our Spark operations for processing battery materials and our black mass production.

關於我們處理電池材料的 Spark 業務和我們的黑色大規模生產。

In the fourth quarter, we exceeded 80% availability at our operating US. spikes, including the processing of EV battery packs at our Generation three sites in the fourth quarter of the total battery materials process at our US.

第四季度，我們美國營運中心的可用性超過了 80%。高峰，包括第四季度美國電池材料總加工過程中第三代工廠的電動車電池組加工。

Generation three spokes, approximately 45% was EV battery packs.

第三代輻條中，約45%是電動車電池組。

These EV battery packs can weigh upwards of GBP 1,000 and can be processed using our Generation three spokes advanced technology to process full EV battery packs with little to no disassembly and without the need to discharge.

這些電動車電池組的重量可達 1​​,000 英鎊以上，並且可以使用我們的第三代輻條先進技術進行加工，以處理完整的電動車電池組，幾乎不需要拆卸，也無需放電。

Turning to Slide 8 for an overview of Li-Cycles, commercial agreements, we have the capability to process all parts of Lithium-ion batteries, independent of form factor and chemistry.

請參閱投影片 8，以了解鋰循環、商業協議的概述，我們有能力處理鋰離子電池的所有零件，而不受形狀因素和化學成分的影響。

This capability, combined with the operational capacity in both North America and Europe, has enabled us to build out a diversified global customer base.

這種能力與北美和歐洲的營運能力相結合，使我們能夠建立多元化的全球客戶群。

As shown on the left of the slide, our customer base spans the entire battery supply chain, including being a preferred recycling partner with leading global battery EV and energy storage OEMs on the right side of the slide, we maintain a mix of short and long-term intake and offtake commercial arrangements.

如幻燈片左側所示，我們的客戶群涵蓋整個電池供應鏈，包括成為幻燈片右側領先的全球電池電動車和儲能原始設備製造商的首選回收合作夥伴，我們保持著短期和長期的混合- 定期攝取和承購商業安排。

At the Spark level, we entered into battery material intake contracts which range from spot multi-year to Evergreen durations, complemented by offtake arrangements for the black mass produced at our sports at the future hub level, we have offtake arrangements for our and by-products with taxes and Glencore briefly regarding pricing, it is important to note that our contracts are predominantly indexed to underlying market prices for metals.

在Spark 級別，我們簽訂了電池材料採購合同，範圍從現貨多年期到長青期限不等，並輔以在未來中心級別的體育運動中生產的黑色物質的承購安排，我們為我們和副產品製定了承購安排就定價而言，我們的合約主要與金屬的基礎市場價格掛鉤，這一點很重要。

Turning to slide 9 for the status of our network portfolio.

請參閱投影片 9 以了解我們的網路產品組合的狀態。

We have slowed operations at our sports network, including pausing operations at the Ontario start slowing operations at the New York, Arizona Alabama, starts on an ongoing basis and are currently reviewing further pauses or slowdowns.

我們已經放慢了體育網絡的運營，包括暫停安大略的運營，開始放慢紐約、亞利桑那州、阿拉巴馬州的運營，持續啟動，目前正在審查進一步的暫停或放慢。

The timing of the France, Norway and Germany one two are currently all under review.

法國、挪威和德國一二的時間安排目前都在審查中。

We are prioritizing Generation three spokes and aligning with EV and battery OEM customers as they continue to ramp capacity in North America and Europe.

我們正在優先考慮第三代輻條，並與電動車和電池 OEM 客戶保持一致，因為他們繼續提高北美和歐洲的產能。

We have paused construction on the Rochester Hub, which we will discuss in more detail later in the presentation, we've also paused the development of the port investment hub while undergoing further review with Glencore on this project.

我們已經暫停了羅徹斯特樞紐的建設，我們將在稍後的演示中更詳細地討論，我們還暫停了港口投資中心的開發，同時與嘉能可對該項目進行進一步審查。

Turning to Slide 10 for a brief overview of our sport technology.

請參閱投影片 10，簡要概述我們的運動技術。

As a reminder, last cycle developed a patented process for processing all forms of lithium ion batteries, regardless of chemistry form factor or state of charge.

提醒一下，上一個週期開發了一種專利工藝，用於處理所有形式的鋰離子電池，無論化學形狀因素或充電狀態如何。

This environmentally friendly process does not rely on any thermal treatment produces no wastewater, and it's highly scalable for the growing EV battery market.

這種環保工藝不依賴任何熱處理，不會產生廢水，對於不斷增長的電動車電池市場具有高度可擴展性。

Turning to slide 11, we show the status of the Rochester Hub project at the pause in October 2023.

轉向幻燈片 11，我們展示了 2023 年 10 月暫停時羅徹斯特中心專案的狀態。

Through to December 31st, 2023, we incurred total costs of approximately $567 million on the project comprised of a total cash spend of $452 million and costs incurred, but not yet paid off approximately $115 million.

截至 2023 年 12 月 31 日，我們在該專案上產生的總成本約為 5.67 億美元，其中包括總現金支出 4.52 億美元和已發生但尚未償還的成本約 1.15 億美元。

Turning to slide 12, for a discussion on our analysis of a change in the project development strategy for the Rochester Hub project.

轉向幻燈片 12，討論我們對羅徹斯特樞紐項目開發策略變化的分析。

The review is focused on the construction, commissioning and operation of the hub with the intent of producing lithium carbonate and MHP.

審查的重點是該中心的建設、調試和運營，旨在生產碳酸鋰和 MHP。

Notably, both MHP and sulfates approach, maintain the production of battery-grade lithium carbonate with the MHP.

值得注意的是，MHP 和硫酸鹽都採用 MHP 來維持電池級碳酸鋰的生產。

Approach as depicted by the green arrows, black mass is processed to produce MHP, a combination of nickel, cobalt and manganese metals.

如綠色箭頭所示，黑色物質被加工以生產 MHP，這是鎳、鈷和錳金屬的組合。

MHP. can be sold to a refiner ahead of being supplied to the battery precursor industry with the sulfates approach, as depicted by the gray arrows, black mass will be converted directly into nickel and cobalt sulfate ahead of being supplied to the battery precursor industry.

MHP。透過硫酸鹽方法，黑色物質可以在供應給電池前驅體產業之前出售給精煉廠，如灰色箭頭所示，黑色物質在供應給電池前驅體產業之前將直接轉化為硫酸鎳和硫酸鈷。

We have no current plans that include the production of nickel sulfide and cobalt sulfate.

我們目前沒有包括生產硫化鎳和硫酸鈷的計劃。

However, the areas dedicated to the production of nickel sulphate and cobalt sulfate are being left intact under the MHP. scope to allow for the potential construction completion and integration in the future.

然而，專門用於生產硫酸鎳和硫酸鈷的區域在 MHP 下完好無損。為未來可能的建設完成和整合留出空間。

We are conducting an internal technical and economic review of the Rochester Hub project, which resulted in an estimated cost to complete of approximately $508 million, including costs incurred, but not yet paid off approximately $115 million as of December 31st, 2023, taking into account total cash spend of approximately $452 million as of December 31st, 2023.

我們正在對羅徹斯特樞紐項目進行內部技術和經濟審查，預計完成成本約為 5.08 億美元，其中包括截至 2023 年 12 月 31 日已發生但尚未支付的成本約 1.15 億美元，考慮到截至2023 年12 月31 日，現金支出總額約4.52 億美元。

We expect the revised estimated project cost of the Rochester Hub project to be approximately $960 million for the MHP. scope.

我們預計羅徹斯特樞紐計畫的修訂後 MHP 計畫成本約為 9.6 億美元。範圍。

We know this estimate is subject to a number of assumptions and is likely to change as we continue to complete our comprehensive review work, including reengaging and rebidding construction subcontracts,

我們知道這一估計受到許多假設的影響，隨著我們繼續完成全面審查工作（包括重新簽訂和重新招標建築分包合約），這一估計可能會發生變化，

The increase in estimated project costs as compared to the prior range of approximately $850 million to approximately $1 billion.

預計專案成本較先前的範圍增加約 8.5 億美元至約 10 億美元。

That included the expected production of nickel sulphate and cobalt sulfate from November 2023 is primarily due to further refinement of the methodology used to estimate the project costs based on the MHP. scope.

其中包括從 2023 年 11 月起預計的硫酸鎳和硫酸鈷產量，這主要是由於根據 MHP 估算專案成本所用的方法進一步完善。範圍。

Importantly, our internal technical review confirmed the technical viability of the MHP process.

重要的是，我們的內部技術審查證實了 MHP 流程的技術可行性。

In addition to the cost to complete, we will incur costs during the construction pause between October 23, 2023, to the project restart date which we expect to fund with current cash and required additional interim funding.

除了完成成本外，我們還將在 2023 年 10 月 23 日至專案重啟日期之間的施工暫停期間產生成本，我們預計將用當前現金和所需的額外臨時資金提供資金。

We will also incur other costs such as working capital, commissioning ramp-up costs and financing costs, which will be included in the full funding solution.

我們還將產生其他成本，例如營運資金、調試提升成本和融資成本，這些成本將包含在完整的融資解決方案中。

As we've indicated, we will require significant additional funding before restarting the construction of the Rochester Hub project.

正如我們所指出的，在重新啟動羅徹斯特樞紐計畫的建設之前，我們將需要大量額外資金。

I'll turn this over to Debbie to provide a review of the financials.

我會將其轉交給黛比，以提供財務審查。

Thank you, Tim.

謝謝你，提姆。

Turning to Slide 13 for a review of our 2023 financial results.

請參閱投影片 13，回顧我們 2023 年的財務表現。

Before covering the details, I would like to note that our 2023 financials reflect calendar year reporting as well as the transition to US, GAAP from IFRS reporting.

在介紹詳細資訊之前，我想指出，我們 2023 年的財務狀況反映了日曆年報告以及從 IFRS 報告向美國公認會計準則的過渡。

As you will see, US.

正如你將看到的，美國。

GAAP is a functional income statement presentation to manage the separation of our expenses between cost of goods sold and SG&A, a change from the line-item detail in nature-based approach with IFRS.

GAAP 是一種功能性損益表列報，用於管理銷售成本與銷售成本和銷售管理費用之間的費用分離，這是對 IFRS 基於自然的方法中的行項目詳細資訊的變更。

Moving now to a discussion of the actual results for 2023 versus 2022, starting with sales, black mass, which were 4,324 tons, a 3% increase versus the 4,192 tons sold in 2022.

現在討論 2023 年與 2022 年的實際結果，首先是黑料銷量，為 4,324 噸，比 2022 年的 4,192 噸增長 3%。

Product sales and recycling services revenues before noncash fair value pricing adjustments increased to $23.6 million, a 34% increase compared to $17.6 million in 2022.

非現金公允價值定價調整前的產品銷售和回收服務收入增至 2,360 萬美元，較 2022 年的 1,760 萬美元成長 34%。

The increase was largely driven by a higher value product sales mix coupled with higher recycling services, revenue from new service contracts and partially offset by reduced market prices for cobalt and nickel.

這一成長主要是由更高價值的產品銷售組合、更高的回收服務、新服務合約的收入推動的，但部分被鈷和鎳的市場價格下降所抵消。

Total revenue was $18.3 million compared to $16.5 million in the prior year, reflecting an unfavorable non-cash fair value pricing adjustment of $5.3 million versus $1.1 million in 2022 related to the lower market prices for cobalt and nickel.

總收入為 1,830 萬美元，而上一年為 1,650 萬美元，反映出由於鈷和鎳市場價格較低，2022 年的非現金公允價值定價調整為 530 萬美元，而 2022 年為 110 萬美元。

Moving to cost of sales, which was $81.8 million versus $55.2 million in 2022 variable and fixed costs related to plasma and shredded metal products sold in the period. were $29.1 million compared to $23.2 million in 2022.

轉向銷售成本，與該期間銷售的等離子和碎金屬產品相關的可變和固定成本為 8,180 萬美元，而 2022 年為 5,520 萬美元。 2022 年為 2,910 萬美元，而 2022 年為 2,320 萬美元。

This reflects increase in raw material acquisition costs and other production costs.

這反映了原材料採購成本和其他生產成本的增加。

Fixed and other costs for the spoke network not capitalized to inventory and expensed in the period was $34.9 million compared to $16.9 million in 2022.

在此期間，輻條網路未資本化為庫存和支出的固定成本和其他成本為 3,490 萬美元，而 2022 年為 1,690 萬美元。

The increase was primarily due to higher store costs, including personnel costs, leases and depreciation from the existing and new spoke asset in Germany.

這一增長主要是由於商店成本增加，包括人員成本、租賃以及德國現有和新輻條資產的折舊。

In addition, cost of sales increased fixed and other costs related to production assets in development, $7.4 million related to our Rochester Hub compared to $2.6 million in 2022, and $10.4 million related to the Spoke network and development compared to $12.5 million in 2022.

此外，銷售成本增加了與開發中的生產資產相關的固定成本和其他成本，與羅徹斯特中心相關的成本為740 萬美元，而2022 年為260 萬美元；與Spoke 網路和開發相關的成本為1,040 萬美元，而2022 年為1,250 萬美元。

SG&A expenses were $93.4 versus $81.3 million in 2022, primarily driven by higher personnel costs before implementing the workforce reduction in November 2023.

SG&A 費用為 93.4 美元，而 2022 年為 8,130 萬美元，主要是由於 2023 年 11 月實施裁員之前人員成本上升所致。

We note that prior to the construction pause at the Rochester Hub, we had hired operations personnel in anticipation of the Hub commissioning.

我們注意到，在羅徹斯特樞紐的施工暫停之前，我們已經聘請了營運人員以應對樞紐的調試。

We also increased headcount to support the expanding spoke network, capital projects and corporate requirements, further increasing our cost of sales and SG&A.

我們也增加了員工人數，以支援不斷擴大的輻條網路、資本項目和公司需求，這進一步增加了我們的銷售和銷售成本和管理費用。

Research and development costs were $5.7 million versus $2.7 million in 2022 and were primarily related to the personnel costs and professional fees incurred for the initial R&D, the ports that we have.

研發成本為 570 萬美元，而 2022 年為 270 萬美元，主要與初始研發、我們擁有的連接埠所產生的人員成本和專業費用有關。

Other income was $24.7 million, a decrease of $27.2 million compared to the prior year, which was primarily related to a decrease in fair value gains on our convertible debt.

其他收入為 2,470 萬美元，比上年減少 2,720 萬美元，主要與我們的可轉換債務公允價值收益減少有關。

Adjusted EBITDA loss was $166.4 million compared to a loss of $118.5 million in 2022.

調整後 EBITDA 虧損為 1.664 億美元，而 2022 年為虧損 1.185 億美元。

This was largely driven by higher cost of sales and increased SG&A related to the growth and expansion of the business.

這主要是由於銷售成本上升以及與業務成長和擴張相關的銷售及管理費用增加。

Turning to slide 14 for a discussion on the actions taken on cash preservation plan at the beginning of November, we implemented a cash preservation fund, which has helped to reduce cash outflows.

轉向投影片14討論11月初現金保存計畫所採取的行動，我們實施了現金保存基金，這有助於減少現金流出。

While we explore strategic alternatives and financing options to increase liquidity, we are diligently working to manage our cash to support our liquidity needs.

在我們探索策略性替代方案和融資方案以增加流動性的同時，我們正在努力管理現金以支持我們的流動性需求。

First, on the spoken have counsel spends because construction at the Rochester Hub.

首先，在口頭上有關於羅徹斯特樞紐建設的建議支出。

While we are completing a review of the go forward plan for the project curtailed production to focus on key customers and product development.

在我們完成對該專案的前進計劃的審查時，我們削減了生產，以專注於關鍵客戶和產品開發。

As we spoke capacity backing on improving working capital, we've been actively engaged with contractors and suppliers in Rochester have project to negotiate extended payment plans as well as extending other payment cycles and implementing other similar measures.

當我們談到支持改善營運資金的能力時，我們一直在積極與羅徹斯特的承包商和供應商進行專案談判，以協商延長付款計劃以及延長其他付款週期並實施其他類似措施。

Additionally, to the extent possible, we've been pulling forward payment terms for black box sales.

此外，我們一直在盡可能推遲黑盒子銷售的付款條件。

Third, on rationalizing our cost structure, we will continue to further rightsize initially for organization, further reduce costs and spoke operations and make additional cuts to non-core SG&A costs as of December 31st, 2023 and March 16th, 2024 Li-Cycle had cash and cash equivalents on hand of approximately $71 million and $35 million, respectively, excluding restricted cash of approximately $10 million and expected gross proceeds from Glencore financing of $75 million, which is expected to close on or around March 25, 2024.

第三，在合理化成本結構方面，截至2023年12月31日和2024年3月16日，我們將繼續進一步優化組織結構，進一步降低成本和輻射運營，並進一步削減非核心SG&A成本。手頭現金等價物分別約為7,100 萬美元和3,500 萬美元，不包括約1,000 萬美元的限制性現金和嘉能可融資的預期總收益7,500 萬美元，預計將於2024 年3 月25 日左右完成。

Coupled with the expected gross proceeds from the Gulf Coast financing, we estimate pro forma cash to be approximately $110 million.

加上墨西哥灣沿岸融資的預期總收益，我們預計現金約為 1.1 億美元。

We expect that the results from the cash preservation plan in order to lower cash outflows in order to maintain current operations until we are able to obtain more substantial financing.

我們預計現金保存計畫的結果是為了降低現金流出，以維持目前的運營，直到我們能夠獲得更實質的融資。

I will now turn back to Ajay.

我現在回到阿傑。

Thank you, Debbie.

謝謝你，黛比。

Turning to slide 15, just taking a step back, we continue to see favorable secular industry demand trends in North America and Europe.

轉向投影片 15，退後一步，我們繼續看到北美和歐洲有利的長期產業需求趨勢。

The chart on the left illustrate the rising adoption of electric vehicles per sales closing record growth adoption at an approximate 45% CAGR from 2019 to 2023 based on the third-party sources.

左圖顯示，根據第三方來源，2019 年至 2023 年，電動車的每銷量採用率不斷上升，採用率複合年增長率約為 45%，創下歷史新高。

Notably these third-party industry sources are projecting that EV sales were build on a strong base growth, posting a 25% CAGR through the end of the decade.

值得注意的是，這些第三方產業消息人士預測，電動車銷量建立在強勁的基礎成長之上，到本十年末複合年增長率為 25%。

As seen of the right, these growth dynamics support the robust demand for expanding market for recycling of all forms of lithium-ion batteries.

如右圖所示，這些成長動力支持了各種形式的鋰離子電池回收市場不斷擴大的強勁需求。

Near to midterm, the increase in recycling material was largely driven by manufacturing scrap from gigafactory growth supplemented by end-of-life battery feedstock towards the end of the decade.

到中期，回收材料的增加主要是由超級工廠成長產生的製造廢料推動的，並在本世紀末由報廢電池原料補充。

It is projected by 2030, demand for recycling material will increase by up to six times from 2023 levels.

預計到 2030 年，對回收材料的需求將比 2023 年的水準增加六倍。

Turning to slide 16, concluding on Li-Cycle's go-forward strategy.

前往投影片 16，總結 Li-Cycle 的前進策略。

First, regarding the financing strategy, we are excited to work with Glencore to close the interim financing.

首先，關於融資策略，我們很高興與嘉能可合作完成中期融資。

And initially, we continue to work closely with the DOE on the progressing the conditional commitment for a loan of up to $375 million.

最初，我們將繼續與能源部密切合作，推動最多 3.75 億美元貸款的有條件承諾。

Second, with respect to the Spoke & Hub network, we are evaluating our spoke production to drive down cost and focusing production through our Gen-3 spokes to support key customers.

其次，關於輻條和輪轂網絡，我們正在評估我們的輻條生產以降低成本，並透過我們的第三代輻條集中生產以支援主要客戶。

And finally, we remain focused on completing our analysis of our go-forward approach for the Rochester Hub.

最後，我們仍然專注於完成對羅徹斯特中心的前進方法的分析。

Before we turn to Q&A, we just want to take a moment and express our gratitude to multiple supporters during this significant transition.

在我們進行問答之前，我們只想花一點時間向這次重大過渡期間的眾多支持者表示感謝。

First, we are immensely proud of the Li-Cycle team for their continued commitment, hard work, and dedication.

首先，我們對 Li-Cycle 團隊的持續承諾、辛勤工作和奉獻精神感到非常自豪。

Second, we're very appreciative of our customers, suppliers, the DOE. and our financial advisors for their continued support and collaboration as part of our go-forward business plans for the Rochester Hub of special note, we're excited and appreciate Glencore support and continued collaboration.

其次，我們非常感謝我們的客戶、供應商和能源部。以及我們的財務顧問的持續支持和合作，作為我們羅徹斯特中心未來業務計劃的一部分，特別值得注意的是，我們很高興並感謝嘉能可的支持和持續合作。

Operator, we're now ready for question at this time when the floor is now open for questions.

接線員，現在我們已準備好提問，現在可以提問。

(Operator Instructions)

（操作員說明）

Brian Dobson from Chardan Capital Markets

Chardan Capital Markets 的 Brian Dobson

Thanks very much for taking my questions this morning.

非常感謝您今天早上回答我的問題。

So, as you think about your ongoing conversations with DOE, has the nature of the conversations changed since you put the facility in strategic review?

那麼，當您思考與能源部正在進行的對話時，自從您對該設施進行戰略審查以來，對話的性質是否發生了變化？

And would you consider the awarding of those funds as necessary, or to continue construction in that with their project?

您是否認為有必要授予這些資金，或繼續他們的專案建設？

Hey, Brian, it's Ajay here.

嘿，布萊恩，我是阿傑。

Yes, thanks for the question.

是的，謝謝你的提問。

So, starting with our engagement with the DOE since the pause, as I said, their is a kind of the call, we're very thankful to DOE for continuing to actively engage with us and be very supportive and that hasn't changed to be frank over the last couple of months.

因此，從暫停以來我們與能源部的接觸開始，正如我所說，他們是一種呼籲，我們非常感謝能源部繼續積極與我們接觸並給予我們大力支持，這一點並沒有改變坦白說，過去幾個月。

So, with this interim financing imminently closing, we're looking forward to continuing to progress there towards close with DOE.

因此，隨著這項臨時融資即將結束，我們期待繼續取得進展，以接近與能源部的合作。

So, that's number one.

所以，這是第一。

And then, number two, the way to think about our go-forward funding is really in two parts.

然後，第二，考慮我們的後續資金的方式實際上分為兩部分。

Number one is around interim funding, the cash on hand and then we have a cash preservation plan to extend our runway as long as possible.

第一個是臨時資金、手頭現金，然後我們有一個現金保存計劃來盡可能延長我們的跑道。

And then, there's really the need of the project and today we gave you a bit of an updated view of our latest estimates of where that is and there's more work to do on that, including with the relevant subcontractors to refine that estimate.

然後，該專案確實存在需求，今天我們向您提供了我們對專案需求的最新估計的一些更新視圖，並且在這方面還有更多工作要做，包括與相關分包商一起完善該估計。

But that all in all is going to require full funding solution, and the project financing loan aka DOE, is obviously a key part of that, but depending on where those numbers come out and what the full funding need is, we'll be looking to get together a full funding solution.

但總而言之，這將需要全額資金解決方案，而專案融資貸款又名能源部，顯然是其中的關鍵部分，但根據這些數字的結果以及全額資金需求是多少，我們將尋找整合完整的融資解決方案。

So, we use those words that's what it means.

所以，我們使用這些字就是它的意思。

The DOE is part of that, but it needs to be informed also by where we ultimately land up in terms of the more refined estimate.

美國能源部是其中的一部分，但它也需要了解我們最終在更精確的估計方面的結果。

Okay.

好的。

Thanks for that color on as you're contemplating resuming coverage and you had mentioned rebating aspects of the project.

感謝您在考慮恢復報告時使用的顏色，並且您提到了該項目的回扣方面。

Have you been in I guess you can maintain relationships with your former contractors?

我想你可以與你的前承包商保持關係嗎？

And then would you need to change contractors in order to perceive a forwarder or do you think defense relationships could be resumed not in the immediate future?

然後您是否需要更換承包商才能找到貨運代理，或者您認為防禦關係不會在不久的將來恢復？

Yes, thanks.

對了謝謝。

That's one is for Tim to take.

這是蒂姆要拿的。

Hey, Brian.

嘿，布萊恩。

Nice talking to you.

與你交談很愉快。

And so, similar to what Ajay was saying at the end, we've had immense support from the contracting community, particularly the contractors within the Rochester region.

因此，與阿賈伊最後所說的類似，我們得到了承包商界的巨大支持，特別是羅徹斯特地區的承包商。

I think everyone is aligned and has a desire to see this project through to completion.

我認為每個人都一致並希望看到這個項目完成。

Our focus from a go-forward perspective is really how do we best contract the project for the remaining scope of work that needs to be done.

從未來的角度來看，我們的重點實際上是如何最好地承包專案以完成剩餘的工作範圍。

We're open to the right strategy, that's part of the work that we're going through at the moment and we're working with that local contracting community to work that out and that will be something we'll be able to provide more updates on Brian as we get closer to a potential restart.

我們對正確的策略持開放態度，這是我們目前正在經歷的工作的一部分，我們正在與當地承包社區合作解決這個問題，這將是我們能夠提供更多的東西隨著我們距離可能的重啟越來越近，布萊恩的最新情況。

Yes, excellent.

是的，非常好。

And as you look at your portfolio of assets you're contemplating, call it demand in the United States and Europe and which areas are most appealing to you over the next two to three years?

當您審視您正在考慮的資產組合時，將其稱為美國和歐洲的需求，以及未來兩到三年哪些領域對您最有吸引力？

Yes, I could take that.

是的，我可以接受。

It's Ajay.

是阿傑。

Yes.

是的。

Look, I mean, I think we've seen those markets grow, frankly, in a similar way from a amount of material available for recycling.

坦白說，我認為我們已經看到這些市場以類似的方式從可回收的材料數量中成長。

Obviously, we're very present in both North America and Europe, a part it's a we wanted to give a little bit more color on our customer base.

顯然，我們在北美和歐洲都有業務，我們希望為我們的客戶群提供更多的色彩。

You saw those quoted figures of OEMs and battery makers flows customer span both North America and Europe.

您看到了原始設備製造商和電池製造商在北美和歐洲的客戶流量引用數據。

And so I'd say in short, Brent today, it's pretty neck and neck in terms of growth in each market has its own features and in terms of the regulatory landscape, incentives, policy, et cetera.

簡而言之，我想說，今天的布蘭特原油在成長方面相當不相上下，每個市場都有自己的特點，而且在監管環境、激勵措施、政策等方面也有差距。

So yes, it's as a summary, as I said, there's it's equal from our perspective.

所以是的，正如我所說，這是一個總結，從我們的角度來看，這是平等的。

Okay.

好的。

And then just one final super quick one given concerns about wastewater at the Rochester facility that was brought to completion and went into went into operation.

然後，考慮到羅徹斯特工廠的廢水問題，最後一項超快的工程已竣工並投入運作。

Yeah, Brian, and so I can answer that, so to let me sort of break that up into two parts, to be very clear, the project that's currently under care and maintenance has never had any reagents or materials introduced into it, so it's purely a construction site at this point in time.

是的，布萊恩，所以我可以回答這個問題，所以讓我把它分成兩部分，非常清楚，目前正在維護和維護的項目從未引入任何試劑或材料，所以它是此時純粹是一個建築工地。

So, just from a status perspective today, from a go-forward perspective, one of the key aspects.

因此，僅從今天的地位角度來看，從前進的角度來看，這是關鍵方面之一。

So, just from a status perspective today, from a go-forward perspective, one of the key aspects of the design on the Rochester Hub facility is what we call a zero liquid discharge system.

因此，僅從今天的現狀角度來看，從未來的角度來看，羅徹斯特樞紐設施設計的關鍵方面之一就是我們所說的零液體排放系統。

And so, essentially where traditional facilities would be discharging industrial wastewater, we've invested in technology and capital to be able to effectively reclaim that water and avoid the need for an industrial wastewater discharge.

因此，本質上，在傳統設施排放工業廢水的地方，我們投資了技術和資本，以便能夠有效地回收這些水，並避免排放工業廢水。

It's part of our overall ethos, Brian as a company as we look across our sites.

這是我們整體精神的一部分，布萊恩作為一家公司，當我們瀏覽我們的網站時。

Excellent.

出色的。

Thank you.

謝謝。

Very much.

非常。

Thank you.

謝謝。

Appreciate the questions.

感謝您提出的問題。

(Operator Instructions)

（操作員說明）

Matthew O’Keefe from Cantor Fitzgerald

坎托·菲茨杰拉德的馬修·奧基夫

Thanks, Operator.

謝謝，接線生。

Thanks for taking my call.

感謝您接聽我的電話。

Just two questions here.

這裡只有兩個問題。

One, with the scope change of making MHP, which is the point you have going forward here, does that change your permitting status at all?

第一，隨著製作 MHP 的範圍發生變化，這就是您在此提出的要點，這是否會改變您的許可狀態？

Do you need to get amendments to your permits?

您需要修改授權嗎？

Are there any changes there we should be thinking about?

有什麼我們應該考慮的改變嗎？

Good morning, Matt.

早安，馬特。

Hey, it's Ajay.

嘿，這是阿傑。

I'll turn it over to Tim.

我會把它交給蒂姆。

Good morning, Matt.

早安，馬特。

And so, the short answer to that is no major changes required from an environmental permitting perspective.

因此，簡短的回答是，從環境許可的角度來看，不需要進行重大改變。

It's still the same materials.

還是一樣的材料。

It's a smaller operating footprint, so it would be within our existing permanent framework.

它的營運足跡較小，因此將在我們現有的永久框架內。

The only consideration is what we would call normal construction style permits and some modifications to those as one or two of the areas are a little bit physically different, but that's the only difference there Matt.

唯一的考慮因素是我們所說的正常建築風格許可，以及對這些許可的一些修改，因為其中一兩個區域在物理上有點不同，但這是唯一的區別，馬特。

Okay.

好的。

So, that won't impact your proposed well, your revised timeline at all?

那麼，這根本不會影響您提議的、修改過的時間表嗎？

No.

不。

Okay.

好的。

And then, just on the timeline, I know it's still a lot of moving parts here and it's going to take some time.

然後，就時間軸而言，我知道這裡仍然有很多移動部件，並且需要一些時間。

But with the Glencore convert, you buy yourself a good amount of time.

但有了嘉能可的轉換，你就可以為自己贏得很多時間。

I don't know whether it's maybe a year to 18 months of runway.

我不知道這是否是一年到十八個月的跑道。

You can correct me if you can give me more color on that.

如果你能給我更多的顏色，你可以糾正我。

But once you do get sort of a financing solution in place, roughly how long would it take to complete the facility construction and then sort of get into your ramp up?

但是，一旦你確實找到了某種融資解決方案，大約需要多長時間才能完成設施建設，然後進入你的產能提升階段？

Yes, good questions, Matt.

是的，好問題，馬特。

And obviously things, a lot of folks want to understand.

顯然，很多人都想了解這一點。

I think at this stage what we're doing is we're right in the midst of these, just did a terminal technical review, looking at the technical economic viability, which was good and that was positive.

我認為現階段我們正在做的就是我們正處於這些之中，剛剛進行了終端技術審查，著眼於技術經濟可行性，這是好的，也是積極的。

And now I think the key thing that we need to get done in the coming periods is really this subcontractor bidding.

現在我認為我們在未來一段時間內需要完成的關鍵事情實際上是分包商招標。

So, before we come out and start talking about timeline and whether it's going to be, we have to do, but that needs to be informed by the folks who are actually going to do the work and that's the key next thing that we're going to be looking to define.

因此，在我們出來開始討論時間表以及是否會這樣做之前，我們必須這樣做，但這需要由實際要做這項工作的人員告知，這是我們下一步要做的關鍵事情將尋求定義。

So, I think post that then at the right time, we'd love to get some color, but where we stand today, we're still reviewing.

所以，我認為在正確的時間發布，我們很想得到一些顏色，但我們今天的立場，我們仍在審查。

Okay, yes, it is helpful.

好的，是的，這很有幫助。

Thank you.

謝謝。

That's it for me.

對我來說就是這樣。

Thanks, Matt.

謝謝，馬特。

(Operator Instructions)

（操作員說明）

It appears there are no further questions in the queue at this time.

目前隊列中似乎沒有其他問題了。

I will turn the call back and Ajay. for his closing comment.

我會回電給阿傑。他的結束語。

Thanks very much.

非常感謝。

And again, appreciate everybody's time and attention to right towards the end of the call and the support from our various stakeholders this period.

再次感謝大家在電話會議即將結束時所投入的時間和注意力，以及在此期間我們各個利害關係人提供的支持。

And we look forward to updating everybody as we progress.

我們期待著隨著我們的進展向大家通報最新情況。

Thank you.

謝謝。

This does conclude today's call and webcast.

今天的電話會議和網路廣播到此結束。

You may disconnect your line at this time and have a wonderful day, and all of them is fair.

你可能會在這個時候斷開你的線路並度過美好的一天，所有這些都是公平的。

And so we'll settle all those one of the more formal part of the burning of assets and all of them will go into Phase two.

因此，我們將解決所有燒毀資產的更正式部分之一，所有這些都將進入第二階段。

And we'll never know that we have a panel may no longer are we know on a mobile phone will come our book of business, both our mobile phone and mobile phone.

我們永遠不會知道我們有一個面板可能不再是我們知道的手機將成為我們的業務簿，無論是我們的手機還是行動電話。