Li-Cycle Holdings Corp (LICY) 2024 Q2 法說會逐字稿

My name is Ashley, and I'll be your conference operator today.

我叫阿什利，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the second quarter 2024 Li-Cycle Holdings earnings call and webcast.

現在，我歡迎大家參加 Li-Cycle Holdings 2024 年第二季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 Louie Diaz, VP, Corporate Affairs.

我現在將把電話轉給公司事務副總裁 Louie Diaz。

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 financial results for the interim period ended June 30, 2024.

早安，謝謝大家參加我們的 Li-Cycle 業務更新並審查截至 2024 年 6 月 30 日的中期財務表現。

We will start today with formal remarks from Ajay Kochhar, our President and Chief Executive Officer; and Craig Cunningham, Chief Financial Officer.

今天我們將首先聽取我們的總裁兼執行長 Ajay Kochhar 的正式演講；克雷格‧坎寧安（Craig Cunningham），財務長。

We will then follow with a Q&A session.

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 on 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.

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.

實際結果可能與我們的前瞻性陳述有重大差異。

If any of our key assumptions are incorrect, including because of factors discussed in today's press release during this conference call or in our past reports and filings with the US Securities and Exchange Commission and the Ontario Securities Commission in Canada.

如果我們的任何關鍵假設不正確，包括由於今天的新聞稿中本次電話會議期間討論的因素或我們過去向美國證券交易委員會和加拿大安大略省證券委員會提交的報告和文件中討論的因素。

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.

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。

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, Louie, and good morning, everyone.

謝謝你，路易，大家早安。

On our first quarter earnings call in May, we provided an update on the progress made on our comprehensive review for the restart of construction of the Rochester Hub.

在五月的第一季財報電話會議上，我們提供了羅徹斯特樞紐重啟綜合審查的最新進展。

Today, we are pleased to share additional updates on the steps we've taken towards achieving our previously mentioned key objectives and also to discuss our second quarter financial and operating results.

今天，我們很高興分享我們為實現之前提到的關鍵目標而採取的步驟的更多最新信息，並討論我們第二季度的財務和營運業績。

Starting on slide 3, we continue to make progress on our key objectives.

從幻燈片 3 開始，我們繼續在關鍵目標上取得進展。

First, closing the US DOE loan remains our top priority.

首先，結束美國能源部貸款仍然是我們的首要任務。

We continue to work closely with the DOE loan programs office to advance towards definitive financing documentation and satisfying conditions precedent for loan disbursements.

我們將繼續與能源部貸款計劃辦公室密切合作，以推進最終的融資文件並滿足貸款支付的先決條件。

Second, we continue to evaluate additional financing alternatives, including exploring financial and strategic options to increase our near term liquidity.

其次，我們持續評估其他融資方案，包括探索財務和策略選擇以增加我們的短期流動性。

Third, we have advanced our comprehensive review of the Rochester Hub.

第三，我們推進了對羅徹斯特樞紐的全面審查。

We refined the cost estimates for the local market as part of our work on evaluating the total project cost, and we also advanced the go-forward Rochester Hub project execution plan for the proposed mixed hydroxide precipitate or MHP process.

作為評估專案總成本工作的一部分，我們完善了當地市場的成本估算，並且我們還針對擬議的混合氫氧化物沉澱或 MHP 流程推進了羅徹斯特中心專案執行計劃。

Finally, we are reviewing and optimizing our spoke network.

最後，我們正在審查和優化我們的輻條網路。

We are exploring ways to extract more value from our spoke network.

我們正在探索從我們的輻條網路中獲取更多價值的方法。

And are transitioning the Ontario spoke from a paused operation to closure to focus on our key generation three facilities.

並將安大略省輻條從暫停營運過渡到關閉，以專注於我們關鍵的第三代設施。

In addition, we are pleased to announce that the Germany spoke secured ISO certifications for meeting global centers.

此外，我們很高興地宣布，德國會議中心獲得了 ISO 認證。

We will continue our strategic review of our operations.

我們將繼續對我們的營運進行策略性審查。

Turn to slide 4 for an update on the current status of the DOE process regarding the conditional agreement for a loan for gross proceeds of up to $375 million.

請參閱投影片 4，以了解能源部有關總收益高達 3.75 億美元的貸款有條件協議流程的最新狀態。

As you can see, we remain in step five of the DOE's loan application process, and we remain committed to finalizing the loan.

正如您所看到的，我們仍處於能源部貸款申請流程的第五步，並且我們仍然致力於最終確定貸款。

During Q2, we continue to work closely with the DOE on key technical, financial and legal workstreams to advance towards reaching an agreement on definitive financing documentation, execution thereof and satisfying conditions precedent for loan disbursements.

第二季度，我們繼續與能源部在關鍵技術、財務和法律工作流程上密切合作，以推動就最終融資文件、執行文件達成協議並滿足貸款支付的先決條件。

Turning to slide 5 for an update on the Rochester Hub project and the proposed MHP scope.

請參閱投影片 5，以了解羅徹斯特樞紐項目和擬議 MHP 範圍的最新情況。

On our Q4 earnings call in March, we reported that we had completed an internal technical review, confirming the viability of the MHP scope to produce MHP and lithium carbonate as part of the proposed change in our product development strategy for the Rochester Hub.

在3 月的第四季度財報電話會議上，我們報告稱，我們已經完成了內部技術審查，確認了MHP 範圍生產MHP 和碳酸鋰的可行性，作為羅徹斯特中心產品開發戰略擬議變更的一部分。

Since then, we've made significant progress on the technical workshops.

從那時起，我們在技術研討會上取得了重大進展。

This includes advancing the go forward project execution plan for the Rochester Hub.

這包括推進羅徹斯特中心的前進專案執行計劃。

Additionally, we refined cost estimates with the local market for major construction contracts.

此外，我們也根據當地市場對主要建築合約進行了成本估算。

Including consideration of the recent work with the local market.

包括考慮最近與當地市場的合作。

Our current estimated cost to complete the Rochester project is substantially similar at approximately $490 million for the MHP scope, which is inclusive of cash commitments to date.

我們目前完成羅徹斯特專案的估計成本與 MHP 範圍大致相似，約為 4.9 億美元，其中包括迄今為止的現金承諾。

For clarity and positively the total project cost estimates MHP scope remains the same at approximately $960 million.

為明確起見，MHP 專案總成本估算範圍保持不變，約 9.6 億美元。

We note that these estimates are subject to several assumptions and will continue to be refined as we complete our comprehensive review work.

我們注意到，這些估計受到多項假設的影響，並將在我們完成全面審查工作後繼續完善。

In summary, the technical work on the proposed MHP scope is now quite advanced.

總之，擬議的 MHP 範圍的技術工作現在已經相當先進。

Turning to slide 6 for an overview of Li-Cycles commercial updates.

請參閱投影片 6，以了解 Li-Cycles 商業更新的概述。

We've established a broadly diversified global base of battery supply customers, including a leading US headquartered vertically integrated EV and battery manufacturer, which is our largest customer source of revenue for the first half of the year.

我們已經建立了廣泛多元化的全球電池供應客戶群，其中包括一家總部位於美國的領先垂直一體化電動車和電池製造商，這是我們今年上半年最大的客戶收入來源。

Notably, four of our top five partners for feed intake during Q2 were among the largest global EV OEMs.

值得注意的是，第二季飼料攝取量排名前五的合作夥伴中有四家是全球最大的電動車原始設備製造商之一。

We continue to demonstrate our expertise in processing all types of lithium batteries, independent of form factor and chemistry.

我們繼續展示我們在加工所有類型鋰電池方面的專業知識，不受形狀因素和化學成分的影響。

We remain focused on EV battery packs to leverage the value differentiators provided by our Gen-3 spoke capabilities in processing this material.

我們仍然專注於電動車電池組，以利用我們的第三代輻條能力在處理這種材料時提供的價值優勢。

EV battery packs continue to be a large portion of our input feed.

電動車電池組仍然是我們輸入的很大一部分。

And represented approximately 40% of the total battery materials processed at our spokes in Q2.

約佔第二季我們輻條加工的電池材料總量的 40%。

We've also widened our commercial footprint for input feedstock for the Germany spoke in Europe.

我們也擴大了德國在歐洲的原料投入商業足跡。

As all during the quarter, we announced a partnership with Daimler Truck North America, short-cycle batters.

與本季一樣，我們宣布與戴姆勒卡車北美公司建立合作夥伴關係，提供短週期電池。

Finally, we continue to see broad-based support for our differentiated technologies reflected in our position as a preferred recycling partner for leading global battery EV and energy storage OEMs.

最後，我們繼續看到對我們的差異化技術的廣泛支持，這反映了我們作為全球領先電池電動車和儲能原始設備製造商的首選回收合作夥伴的地位。

Turning to slide 7 for some highlights of our spoke operations.

請參閱投影片 7，以了解我們輻條操作的一些亮點。

During the quarter, our spokes produced approximately 1,394 tonnes of black mass and equivalents.

本季度，我們的輻條生產了約 1,394 噸黑色物質及當量。

We have continued to optimize our spoke network and have increased throughput rates at our Arizona and Alabama spokes.

我們繼續優化我們的輻條網絡，並提高了亞利桑那州和阿拉巴馬州輻條的吞吐率。

We secured ISO certifications for our Germany spoke, highlighting our commitment to sustainability and the highest global environmental health and quality centers.

我們的德國輻條獲得了 ISO 認證，突顯了我們對永續發展以及全球最高環境健康和品質中心的承諾。

And finally, we are transitioning the Ontario spoke for operations have been paused since November 2023 to closure in order to focus on our priority Gen-3 facilities.

最後，我們正在將自 2023 年 11 月以來暫停的安大略省營運轉變為關閉，以便專注於我們的優先 Gen-3 設施。

Turning to slide 8 for some highlights related to the optimization initiatives at our spokes.

請參閱投影片 8，以了解與我們輻條優化計畫相關的一些亮點。

Our goal is to take near-term steps towards creating financially accretive spokes.

我們的目標是採取近期措施創建可增加財務效益的輻條。

As noted, we are prioritizing our Gen-3 spokes, which can process full battery packs without the need for dismantling.

如前所述，我們優先考慮 Gen-3 輻條，它可以處理完整的電池組，而無需拆卸。

This aligns the parties of our EV and battery OEM partners who comprise a large share of our global beverage feed intake.

這使我們的電動車和電池 OEM 合作夥伴各方保持一致，他們在我們全球飲料飼料攝取量中佔據很大份額。

In line with this, we aim to maximize and sustained throughput rates at our Gen-3 spoke to fully leverage these capabilities.

為此，我們的目標是最大限度地提高和維持 Gen-3 輻條的吞吐率，以充分利用這些功能。

We are also optimizing our product conversion costs to increase our competitiveness in the market.

我們也優化產品轉換成本，以提高我們的市場競爭力。

As you can see this quarter, reflecting services our growing share of our revenue.

正如您在本季度所看到的，這反映出服務在我們收入中所佔的份額不斷增長。

We're presenting approximately 43% of our revenue in the first half of the year.

我們今年上半年的收入約佔 43%。

We will continue focusing on these services to leverage the value differentiators of our Gen-3 spokes and generate revenue.

我們將繼續專注於這些服務，以利用我們的第三代輻條的價值差異化因素並產生收入。

We are working with our strategic partners to support and execute on these plans and look forward to providing further details on our spoke optimization and strategic initiatives in Q3 2024.

我們正在與策略合作夥伴合作，支持和執行這些計劃，並期待在 2024 年第三季提供有關我們的輻條優化和策略舉措的更多詳細資訊。

With that, I'll now turn the call over to Craig to provide a review of the financials.

現在，我將把電話轉給克雷格，以提供對財務狀況的審查。

Thank you, Ajay.

謝謝你，阿傑。

Turning to slide 9 to review of our 2024 second quarter financial results.

轉向投影片 9，回顧我們 2024 年第二季的財務表現。

Highlights include record quarterly revenue and lower SG&A and cost of sales for the second quarter of 2024 versus 2023.

亮點包括創紀錄的季度收入以及 2024 年第二季與 2023 年相比較低的銷售成本和管理費用 (SG&A)。

Starting with the sales of biomass and equivalents, which were 1,158 tonnes versus 2,093 tonnes for the same period last year.

首先是生物質及等價物的銷售量，去年同期為 1,158 噸，去年同期為 2,093 噸。

Total revenue increased 133% to $8.4 million, a record for the company.

總營收成長 133%，達到 840 萬美元，創公司紀錄。

This increase reflects higher recycling revenue and favorable non-cash fair value pricing adjustments were approximately $0.2 million versus an unfavorable adjustment of $1.7 million from the prior year.

這一增長反映了回收收入的增加以及有利的非現金公允價值定價調整約為 20 萬美元，而上一年的不利調整為 170 萬美元。

Moving to cost of sales, which decreased 4% to $19.4 million versus $20.2 million in 2023.

銷售成本從 2023 年的 2,020 萬美元下降 4% 至 1,940 萬美元。

Cost of sales attributable to product revenue decreased by $2.3 million or 11% compared to the last year's results due to lower production levels, partially offset by costs associated with spoke repairs and maintenance activities.

由於生產水準下降，產品收入的銷售成本比去年的業績下降了 230 萬美元，即 11%，但部分被輻條維修和維護活動相關的成本所抵消。

Cost of sales attributable to service revenue increased $1.5 million compared to last year due to new service contracts entered.

由於簽訂了新的服務合同，服務收入的銷售成本比去年增加了 150 萬美元。

We are also pleased to note that SG&A has decreased 39% to $15.3 million versus $24.9 million in 2023, primarily driven by lower recurring personnel costs resulting from our restructuring initiatives implemented since the pause of the construction of the Rochester Hub.

我們也很高興地註意到，SG&A 下降了 39%，至 1,530 萬美元，而 2023 年為 2,490 萬美元，這主要是由於我們自羅徹斯特樞紐建設暫停以來實施的重組舉措導致經常性人員成本降低。

Adjusted EBITDA was a loss, largely driven by a decrease in SG&A, cost of sales and higher revenue as well as $2.2 million in restructuring fees.

調整後 EBITDA 為虧損，主要是因為 SG&A、銷售成本和收入增加以及 220 萬美元的重組費用減少。

As of June 30, 2024 Li-Cycle has cash and cash equivalents of $57 million versus $109.1 million at the end of the first quarter of 2024.

截至 2024 年 6 月 30 日，Li-Cycle 擁有現金和現金等價物為 5,700 萬美元，而 2024 年第一季末為 1.091 億美元。

This is mainly due to higher working capital and investing activities, partially offset by lower SG&A.

這主要是由於營運資本和投資活動增加，但SG&A 減少部分抵消了這一影響。

And I'll now turn it back to Ajay.

現在我將把它轉回阿賈伊。

Thanks, Craig.

謝謝，克雷格。

Turn to slide 10.

轉到投影片 10。

I wanted to conclude by addressing the current industry dynamics we're seeing across the better supply chain.

最後，我想談談我們在更好的供應鏈中看到的當前產業動態。

While there have been recent challenges, we continue to believe in the long-term fundamentals for Li-Cycle that are two main drivers.

儘管最近面臨挑戰，但我們仍然相信鋰循環的長期基本面，這是兩個主要驅動力。

Increasing recycling supply and the deficit of expected post-processing capacity.

回收供應增加及預期後處理能力不足。

And the continued trend towards localization of the battery supply chain.

以及電池供應鏈本地化的持續趨勢。

The chart on the left illustrates the rising adoption of electric vehicles in North America, with sales achieving a CAGR of approximately 36% from 2019 through 2024.

左圖顯示了北美地區電動車的普及率不斷上升，2019 年至 2024 年銷量複合年增長率約為 36%。

Notably, despite current industry headwinds, third-party sources are projecting a robust 23% kegger office space through the end of the decade.

值得注意的是，儘管目前存在行業逆風，但第三方消息人士預計，到本十年末，辦公空間將成長 23%。

As depicted on the right, these growth dynamics support the strong demand for an 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對各種形式的鋰離子電池回收利用不斷擴大的市場的強勁需求。

In the near to midterm the increase in recycled materials is largely being driven by manufacturing scrap from giga factory growth with end-of-life battery feedstock supplementing this growth towards the end of the decade.

在近中期，回收材料的增加主要是由巨型工廠成長產生的製造廢料所推動的，而報廢電池原料在本世紀末補充了這種成長。

By 2030, the supply of recycled materials is projected to increase by 5 times to 6 times versus 2024 levels.

到 2030 年，再生材料的供應量預計將比 2024 年增加 5 倍至 6 倍。

Despite the recent challenges we are seeing in the battery supply chain for longer term, fundamentals for the industry remain clear for recycling.

儘管我們最近在電池供應鏈中看到了長期的挑戰，但該行業回收的基本面仍然清晰。

The transition to EV adoption is well underway and growth is continuing even if at a different rate in the near term.

向電動車的採用過渡正在順利進行，即使短期內增速有所不同，但成長仍在持續。

Electrical is well-positioned to capitalize on these opportunities as there is still a significant gap in post processing recycling capacity.

由於後處理回收能力仍存在巨大差距，電力公司處於有利地位，可以充分利用這些機會。

The Rochester Hub is expected to play a pivotal role and helping to fill this gap.

羅徹斯特中心預計將發揮關鍵作用，幫助填補這一空白。

Turning to slide 12.

轉到投影片 12。

We believe the trend towards localization will also continue to be a positive for the industry and our company. (inaudible) initiatives in North America and Europe continue to provide a favorable backdrop, encouraging local production and reducing reliance on external supply chains.

我們相信在地化趨勢也將繼續對產業和我們公司產生正面影響。 （聽不清楚）北美和歐洲的舉措繼續提供有利的背景，鼓勵本地生產並減少對外部供應鏈的依賴。

This includes the US Inflation Reduction Act, various tax incentives and more recently potential tariffs on imports.

這包括美國降低通貨膨脹法案、各種稅收優惠以及最近可能徵收的進口關稅。

In the US, we've seen continued bipartisan support to build domestic capacity in the battery supply chain to onshore clean energy jobs and reduce reliance on critical minerals from foreign entities of concern.

在美國，我們看到兩黨持續支持建造電池供應鏈的國內產能，以提供陸上清潔能源就業機會，並減少對外國實體關鍵礦物的依賴。

With the continued growth in EV adoption underpinning the long-term demand for recycling and prospecting capacity and the ongoing support of localization of the supply chain.

隨著電動車採用的持續成長，支撐了對回收和勘探能力的長期需求以及對供應鏈本地化的持續支持。

The planned development of the Rochester Hub will strategically position Li-Cycle to create value for our stakeholders.

羅徹斯特中心的規劃發展將對 Li-Cycle 進行策略性定位，為我們的利害關係人創造價值。

Turn to slide 13, and to reiterate our go-forward strategy and key objectives.

請參閱投影片 13，重申我們的前進策略和主要目標。

First, we are focused on reaching an agreement on definitive financing documentation for the DOE loan.

首先，我們的重點是就能源部貸款的最終融資文件達成協議。

Second, we are evaluating financing and strategic options to bolster our liquidity.

其次，我們正在評估融資和策略選擇，以增強我們的流動性。

Third, we aim to complete the comprehensive review of the MHP scope, the Rochester Hub.

第三，我們的目標是完成對 MHP 範圍（羅徹斯特中心）的全面審查。

And lastly, we are working with our strategic partners to maximize value across our spoke network.

最後，我們正在與策略合作夥伴合作，以最大限度地提高我們的輻射網路的價值。

Stay tuned as we expect to provide further details on our spoke optimization and strategic initiatives in Q3.

請繼續關注，我們預計將在第三季提供有關輻條優化和戰略計劃的更多詳細資訊。

Before we get to Q&A, I wanted to thank our employees and our partners for their continuing support.

在進行問答之前，我想感謝我們的員工和合作夥伴的持續支持。

Li-Cycle has clear objectives of the second half this year, and we are focused on capitalizing on our opportunities.

Li-Cycle今年下半年有明確的目標，我們專注於抓住機會。

Operator, we're now ready for questions.

接線員，我們現在準備好提問了。

(Operator Instructions)

（操作員說明）

Doug Paul, LPL Financial.

道格‧保羅 (Doug Paul)，LPL 金融公司。

Can you provide some more color on where we're at in this step five or possibly how long this step five takes for this loan to close?

您能否提供更多資訊來說明我們在第五步中所處的位置，或者第五步可能需要多長時間才能完成這筆貸款？

Sure.

當然。

Hi, so I'd say at a high level, just to take a step back, probably focusing a lot of this is speaking, see a lot of progress from the DOE recently and momentum picking up.

嗨，所以我想說的是，在高水平上，只是退後一步，可能重點關注這方面的很多內容，看到能源部最近取得了很多進展，勢頭正在增強。

Now just to contextualize, this is the last stage before we close.

現在，我們來了解一下具體情況，這是我們結束之前的最後一個階段。

And so we've been here for a while obviously back to since February 2023, we got a cash agreement since then.

我們已經在這裡待了一段時間了，顯然可以追溯到 2023 年 2 月，從那時起我們就達成了現金協議。

We've been in close, though, in between we had to pause a bit of a proposed shift in the strategy within the closing phase there are three workstreams, there's technical, financial market and legal.

不過，我們已經很接近了，但在這之間，我們不得不暫停一些擬議的策略轉變，在收尾階段有三個工作流程，即科技、金融市場和法律。

The technical side has been focused on the MHP scope that is well progressed.

技術方面一直專注於進展順利的 MHP 範圍。

The financial market side has been basically reintegrating that into the view, from the financial perspective, that's also very well progressed.

金融市場方面基本上已經將其重新納入視野，從金融角度來看，這也取得了很好的進展。

And now we're really focused on those definitive financing documents as mentioned.

現在我們真正關注的是如上所述的那些明確的融資文件。

Okay, do you have an anticipation date of closing.

好的，您有預計結束日期嗎？

So I think at this time, we're moving as expediently as possible to close.

所以我認為目前我們正在盡可能方便地關閉。

And I could tell you is my top priority is the top priority for the organization, and we're continuing to progress towards that.

我可以告訴你，我的首要任務也是組織的首要任務，我們正在繼續朝著這個目標前進。

Thank you.

謝謝。

(Operator Instructions)

（操作員說明）

Matthew O'Keefe, Cantor Fitzgerald.

馬修‧奧基夫，康托‧費茲傑拉。

Thanks, operator.

謝謝，接線生。

Good morning.

早安.

Just a question on the comprehensive review some good progress sounds like has been made there.

只是關於全面審查的問題，聽起來似乎已經取得了一些良好的進展。

I'm just wondering, I mean, how much more and timing wise on that being completed?

我只是想知道，我的意思是，完成這個任務還有多少時間？

And how is -- how are metal prices sort of impacting that review.

金屬價格如何影響這項審查。

And as an addition to that, if you could sort of comment on your view on lithium is going to be a very important component of your revenue stream when you get this operational, maybe you could comment on current pricing and the kind of pricing you expect as needed and to make this work.

除此之外，如果您可以評論一下您對鋰的看法，當您開始營運時，鋰將成為您收入流的一個非常重要的組成部分，也許您可以評論當前的定價和您期望的定價類型根據需要並使這項工作發揮作用。

Yeah.

是的。

Hey, Matt, good morning.

嘿，馬特，早安。

So yeah, I mean, certainly on the review first, and I'll talk a little bit about the influence of metal pricing.

所以，是的，我的意思是，當然首先是評論，我會談談金屬定價的影響。

So maybe you can talk about that review.

所以也許你可以談談那篇評論。

I think just to break it apart in a simple terms, there's a technical part and there's a financial part.

我認為簡單來說，它分為技術部分和財務部分。

The technical part has been a lot of we talked about, I talked about competition vis a vis the internal technical viability type of MHP scope so that's been complete it.

技術部分是我們討論的許多內容，我討論了與 MHP 範圍的內部技術可行性類型的競爭，所以這已經完成了。

And then a big thing that we did in Q2 was go into a local market to refine the estimate for the CapEx which, by the way, was also necessary activity for the DOE.

然後我們在第二季度做的一件大事是進入當地市場來完善資本支出的估計，順便說一句，這也是能源部的必要活動。

So that's also done, great as you saw we didn't change the CapEx estimate.

這也完成了，很好，正如您所看到的，我們沒有更改資本支出估算。

So that then feeds into the second part of the financial part, which is really what you're driving at.

這樣就可以進入財務部分的第二部分，而這正是您的目標。

Within that obviously, there's the full financing package that working on the due is the cornerstone of that and what you're getting at is really what does it mean current metal prices?

顯然，其中有完整的融資方案，應付款項是其基石，而您所得到的實際上是當前金屬價格意味著什麼？

Yeah.

是的。

I mean, look, we're in a -- we've been in a soft period for nickel, cobalt and lithium.

我的意思是，你看，我們正處於鎳、鈷和鋰的疲軟時期。

One of the benefits we have is obviously we're not reliant on any one of those I'd like to do so with increasing product.

我們擁有的好處之一顯然是，我們不依賴我希望透過增加產品來做到這一點的任何一項。

Obviously, as you know, we have never really gotten into a forecast economics we'll get there when we get there.

顯然，如您所知，我們從未真正進行過經濟預測，當我們到達那裡時我們會到達那裡。

But I can tell you, given the basket of those three, even at current prices and where they're expected to be, we still see this as accretive (inaudible) wouldn't be pursuing it.

但我可以告訴你，考慮到這三者的籃子，即使以目前的價格和預期的價格，我們仍然認為這是增值的（聽不清楚），不會追求它。

So that's really another way of talking about where current prices are and how we see the economics.

因此，這實際上是談論當前價格以及我們如何看待經濟的另一種方式。

Okay.

好的。

Can I just ask it a little bit different way or I mean in your discussions with the DOE, did they have a kind of price deck or expectation is there we're focused on?

我可以用稍微不同的方式問一下嗎？

I mean, you're only putting in some sort of hurdles for you or not hurdles but targets for you.

我的意思是，你只是為自己設定了某種障礙，或者不是障礙而是為你設定了目標。

So they do have an expectation not at liberty to say what it is because that's there on a by business based event.

因此，他們確實希望不能自由說出具體內容，因為這是基於業務的活動。

But what I can say is at a high level and just sticking based on most of your experience would be obviously given its debt and it's a loan.

但我能說的是，在一個高水平上，只要根據你的大部分經驗堅持下去，顯然就會得到它的債務，這是一筆貸款。

These are sort of bullish equity underwriting sort of commodity prices that are typically been used, probably speaking, right?

也許可以這麼說，這些是通常使用的看漲股票承銷類商品價格，對吧？

So like it's that's the sort of (inaudible) just to talk broadly.

就好像這就是（聽不清楚）只是泛泛而談。

Okay.

好的。

Appreciate that.

很欣賞這一點。

Thank you.

謝謝。

Thank you, Matt.

謝謝你，馬特。

(Operator Instructions)

（操作員說明）

And it does appear that we have no further questions at this time.

目前看來我們確實沒有其他問題了。

I'll turn the call back over to Ajay for any closing remarks.

我會將電話轉回 Ajay，讓其結束語。

Thank you.

謝謝。

So imagine given the continued favorable long-term trends in our industry.

因此，考慮到我們行業持續有利的長期趨勢，想像一下。

We're excited to execute on our clear objectives, and we look forward to providing you with further updates on our progress.

我們很高興能夠實現我們明確的目標，並期待為您提供有關我們進展的進一步更新。

Thank you.

謝謝。

Thank you, and this does conclude today's program.

謝謝大家，今天的節目到此結束。

Thank you for your participation.

感謝您的參與。

You may disconnect at any time.

您可以隨時斷開連線。