Li-Cycle Holdings Corp (LICY) 2022 Q1 法說會逐字稿

Good day. My name is Leo, and I will be your conference operator today. At this time, I would like to welcome everyone to the First Quarter 2022 Li-Cycle Holdings Earnings Call and webcast. (Operator Instructions)

再會。我叫 Leo，今天我將成為您的會議接線員。在這個時候，我想歡迎大家參加Li-Cycle Holdings 2022年第一季度財報電話會議和網絡直播。 （操作員說明）

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

謝謝你。我現在將把電話轉給投資者關係主管 Nahla Azmy。請繼續。

Thank you, Leo. Good morning, and thank you, everyone, for joining us today for Li-Cycle's review of our first quarter 2022 results ended January 31. We will start today with formal remarks from Tim Johnston, Co-Founder and Executive Chairman; Ajay Kochhar, Co-Founder, President and Chief Executive Officer; and Debbie Simpson, Chief Financial Officer. We will then follow with a Q&A session.

謝謝你，獅子座。早上好，謝謝大家今天加入我們，參與 Li-Cycle 對截至 1 月 31 日的 2022 年第一季度業績的審查。今天，我們將從聯合創始人兼執行主席 Tim Johnston 的正式講話開始； Ajay Kochhar，聯合創始人、總裁兼首席執行官；和首席財務官黛比辛普森。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 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一份演示文稿，可在我們網站 Investors.li-cycle.com 的投資者關係部分找到。

On this call, management will be making statements based on current expectations, plans, estimates and assumptions, which are subject to significant risks and uncertainty. 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 in our past reports and filings, with the U.S. Securities and Exchange Commission and the Ontario Securities Commission in Canada. 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.

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，這些預期、計劃、估計和假設受到重大風險和不確定性的影響。實際結果可能與我們的前瞻性陳述存在重大差異。如果我們的任何關鍵假設不正確，包括由於今天的新聞稿、本次電話會議以及我們過去向美國證券交易委員會和加拿大安大略證券委員會提交的報告和文件中討論的因素。這些文件可在我們的網站investors.li-cycle.com 上找到。我們不承擔任何義務更新在本次電話會議期間或不時做出的任何前瞻性陳述，無論是書面的還是口頭的，以反映新信息、未來事件或其他情況，除非需要。

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

有了這個，我很高興把電話轉給蒂姆。

Thank you, Nahla, and good morning. We're excited to provide you with the review of our first quarter results and an update on the continued progress we have made on our Spoke & Hub network. I will begin the call by covering key operational and commercial developments. Debbie will then review our financial performance and balance sheet position. We will also discuss our competitive positioning and economic value proposition.

謝謝你，Nahla，早上好。我們很高興為您提供對我們第一季度業績的審查以及我們在 Spoke & Hub 網絡上取得的持續進展的最新情況。我將首先介紹關鍵的運營和商業發展。然後，黛比將審查我們的財務業績和資產負債表狀況。我們還將討論我們的競爭定位和經濟價值主張。

Beginning on Slide 3. The recent developments are in 3 key areas. I'll cover these briefly and then in more detail later. On the commercial front, we continue to grow our battery supply customer base, recently adding 2 new emerging electric vehicle manufacturers. In addition, we are making progress on the strategic multiyear commercial partnership with LG Chem and LG Energy Solution. We anticipate the completion of these agreements by the end of April.

從幻燈片 3 開始。最近的發展是在 3 個關鍵領域。我將簡要介紹這些內容，稍後再詳細介紹。在商業方面，我們繼續擴大我們的電池供應客戶群，最近增加了 2 家新興的電動汽車製造商。此外，我們正在與 LG Chem 和 LG Energy Solution 建立多年的戰略性商業合作夥伴關係。我們預計這些協議將在 4 月底完成。

On operational level, we made significant progress on our Spoke & Hub network. We received the air permit approval for our Rochester Hub project from the New York State Department of Environmental Conservation, which is the critical path item for proceeding with the next phase of construction. The permitting milestone was received with strong support from local and state authorities, a validation of the net positive environmental footprint and economic value we bring to the community. This allows us to push ahead for targeted commissioning in 2023.

在運營層面，我們的 Spoke & Hub 網絡取得了重大進展。我們從紐約州環境保護部獲得了羅切斯特樞紐項目的航空許可證批准，這是進行下一階段建設的關鍵路徑項目。在地方和州當局的大力支持下，獲得了許可里程碑，驗證了我們為社區帶來的淨積極環境足跡和經濟價值。這使我們能夠在 2023 年推進有針對性的調試。

Also, we are nearing completion of the Arizona Spoke, in line with our scheduled timing for early 2022. The Arizona Spoke is a first of a kind on multiple fronts, which I'll discuss in more detail shortly. On the financial front, the Ontario and New York Spokes delivered higher year-on-year black mass production, which resulted in higher revenues. We also continued to maintain a strong balance sheet with more than $550 million in cash. This will be augmented further by the LG investment that we expect to close in late April.

此外，根據我們在 2022 年初的預定時間，我們即將完成亞利桑那輻條。亞利桑那輻條是多條戰線上的第一個，我將在稍後更詳細地討論。在財務方面，安大略省和紐約州的發言人實現了更高的黑人批量生產，從而帶來了更高的收入。我們還繼續保持強勁的資產負債表，擁有超過 5.5 億美元的現金。我們預計將於 4 月下旬完成的 LG 投資將進一步加強這一點。

Turning to Slide 4. Let me take you through the status of our spoke build-outs and black mass production targets in more detail. We have several key competitive advantages that are integral to our strategy. With our patent-protected module Spoke technology built in our Spoke fabrication facilities, we have the capability to rapidly deploy new plants in lockstep with our customers' accelerating growth. The small physical and environmental footprint of these plants allow us to efficiently co-locate with partners like Ultium to provide on-site recycling solutions or support multiple customers through regional merchant facilities.

轉到幻燈片 4。讓我帶您更詳細地了解我們的輻條構建和黑色量產目標的狀態。我們有幾個關鍵的競爭優勢是我們戰略不可或缺的。憑藉我們在輻條製造設施中內置的受專利保護的模塊輻條技術，我們有能力與客戶的加速增長同步快速部署新工廠。這些工廠的物理和環境足跡很小，使我們能夠有效地與 Ultium 等合作夥伴共同定位，以提供現場回收解決方案或通過區域商業設施支持多個客戶。

The Arizona Spoke nearing completion, represents the next level in our innovation in spoke design with regards to scale and process capability. This template was developed in response to growing demand. When operational, it will have an annual processing capacity of 10,000 tonnes of lithium-ion batteries. The plant is the first of its kind, capable of processing full electric vehicle battery packs, making it safer and more labor efficient.

即將完成的亞利桑那輻條代表了我們在輻條設計方面在規模和工藝能力方面的創新水平。該模板是為響應不斷增長的需求而開發的。投產後，將具備年處理1萬噸鋰離子電池的能力。該工廠是同類工廠中的第一家，能夠處理全電動汽車電池組，使其更安全、更省工。

Next in line is the Alabama Spoke, which is the same design as the Arizona Spoke and is due to be online in our third quarter of 2022. When both Arizona and Alabama Spokes are operational, we will have a total processing capacity of 30,000 tonnes, up from 10,000 tonnes. We continue to target black mass production for the fiscal year in the range of 6,500 to 7,500 tonnes. As we noted in our previous quarterly call, this step-up will be evident in the second half of this fiscal year, driven by the expected timing of these 2 new facilities.

接下來是 Alabama Spoke，它的設計與 Arizona Spoke 相同，將於 2022 年第三季度上線。當 Arizona 和 Alabama Spoke 都投入運營時，我們的總加工能力將達到 30,000 噸， 10,000 噸。我們繼續將本財年的黑色量產目標定為 6,500 至 7,500 噸。正如我們在之前的季度電話會議中所指出的那樣，在這兩個新設施的預期時間安排的推動下，這一增長將在本財年下半年變得明顯。

Turning to Slide 5 for an update on the Rochester Hub. As I commented earlier, we're excited to share with you that we have obtained the air permit from the New York State Department of Environmental Conservation. This was a significant milestone, allowing us to move to the next phase of construction with the installation of permanent infrastructure. The issuance of the air permit follows the approval by the Town of Greece of a negative declaration of environmental impact under the State Environmental and Quality Review Act in November 2021.

轉到幻燈片 5 以了解有關 Rochester Hub 的更新。正如我之前評論的那樣，我們很高興與您分享我們已獲得紐約州環境保護部的空氣許可證。這是一個重要的里程碑，使我們能夠通過安裝永久性基礎設施進入下一階段的建設。在希臘鎮於 2021 年 11 月根據《國家環境和質量審查法》批准環境影響負面聲明之後，頒發了航空許可證。

Achieved in 14 months both of these approvals endorse a sustainable nature of our operation and the positive environmental approach to our process. The Hub is the first major facility of its kind in North America and demonstrates a substantial community and regulatory support for our environmentally advanced Spoke & Hub technologies. We view this support as a significant competitive advantage as we continue to grow our network.

這兩項批准在 14 個月內實現，證明了我們運營的可持續性質以及我們流程的積極環保方法。該中心是北美首個此類大型設施，展示了對我們環境先進的 Spoke & Hub 技術的大量社區和監管支持。隨著我們繼續發展我們的網絡，我們將這種支持視為一項重要的競爭優勢。

I would also note that the patented protected hub process utilizes standard equipment. It is based on proven technology, validated through our pilot facility and incorporated into the final design of the Rochester Hub. We previously shared that Hatch is our engineering and procurement contractor for the Rochester Hub. Recently, we have selected MasTec Industrial as our general contractor for the project. We are finalizing contract details for completion in the coming months. As you may also recall, we have firmed up timing and pricing for the majority of the long-lead equipment. We are well underway with procuring this equipment, which will continue into the next quarter.

我還要指出，受專利保護的集線器工藝使用標准設備。它基於經過驗證的技術，通過我們的試點設施進行驗證，並納入羅切斯特樞紐的最終設計。我們之前曾分享過 Hatch 是我們羅切斯特樞紐的工程和採購承包商。最近，我們選擇了 MasTec Industrial 作為該項目的總承包商。我們正在敲定合同細節，以便在未來幾個月內完成。您可能還記得，我們已經確定了大多數長周期設備的時間安排和定價。我們正在順利採購這些設備，這將持續到下個季度。

Finally, we have continued to make progress with the addition of commercial partners, including the partnership with LG Chem and LG Energy Solution. In December 2021, we announced that LG Energy Solution and Li-Cycle intend to participate on recycling nickel-bearing battery scrap. In addition, Li-Cycle will supply LG with a total of 20,000 tonnes of nickel from the Rochester Hub over a 10-year period beginning in 2023. In conjunction with completing these agreements, LG intends to make a combined $50 million equity investment in Li-Cycle at a price of $11.32 per share. We expect to conclude these commercial agreements by the end of April.

最後，我們繼續在增加商業合作夥伴方面取得進展，包括與 LG Chem 和 LG Energy Solution 的合作。 2021 年 12 月，我們宣布 LG Energy Solution 和 Li-Cycle 打算參與回收含鎳電池廢料。此外，從 2023 年開始，Li-Cycle 將在 10 年內從 Rochester Hub 向 LG 提供總計 20,000 噸的鎳。在完成這些協議的同時，LG 打算對 Li 進行總計 5000 萬美元的股權投資-以每股 11.32 美元的價格循環。我們預計將在 4 月底之前完成這些商業協議。

That concludes my formal remarks. Debbie will now review our financials.

我的正式發言到此結束。黛比現在將審查我們的財務狀況。

Thank you, Tim, and good morning, everyone. If I could turn your attention to Slide 6, let me first review results for the first quarter ended January 31, 2022. Revenue for the quarter increased by 277% to $3.8 million, compared to $1 million in the same quarter last year, driven by increases in product sales and market prices. The increase in volume is primarily related to the quantities of batteries and battery scrap processed at the New York Spoke.

謝謝蒂姆，大家早上好。如果我可以將您的注意力轉移到幻燈片 6，讓我先回顧一下截至 2022 年 1 月 31 日的第一季度的業績。該季度的收入增長了 277% 至 380 萬美元，而去年同期為 100 萬美元，主要受驅動因素的推動產品銷售和市場價格的增加。數量的增加主要與紐約輻條處理的電池和電池廢料的數量有關。

Adjusted EBITDA loss was $16.9 million compared to $3.7 million for the same period last year. This was largely driven by higher staffing and network development costs related to the growth and expansion of the business, particularly in North America. Higher personnel costs are for operational, corporate, commercial and engineering resources as well as professional fees and administrative costs in support of a public company, which we did not have in the comparative period.

調整後的 EBITDA 虧損為 1690 萬美元，而去年同期為 370 萬美元。這主要是由於與業務增長和擴張相關的更高的人員配備和網絡開發成本，尤其是在北美。較高的人事成本用於運營、公司、商業和工程資源，以及支持上市公司的專業費用和行政成本，我們在比較期間沒有這些成本。

I would note that while year-over-year revenue is significantly higher, our revenue for the quarter is lower than the previous quarter. This decrease is largely timing-related due to a delay in scheduled maintenance at one of our production facilities, driving a shift of black mass sales from the first quarter into the second quarter. We would expect that the remaining quarters of fiscal 2022 will show sequentially increasing black mass production with corresponding revenue increases. This ongoing upward trend is supported by the shift in order fulfillment into the second quarter and increasing production from the Arizona and Alabama Spokes in the second half of the fiscal year.

我會注意到，雖然同比收入顯著增加，但我們本季度的收入低於上一季度。這種下降主要與時間相關，因為我們的一個生產設施的定期維護延遲，推動黑色批量銷售從第一季度轉移到第二季度。我們預計 2022 財年剩餘的幾個季度將顯示黑色量產的連續增長和相應的收入增長。這種持續的上升趨勢得到了第二季度訂單履行轉移以及本財年下半年亞利桑那州和阿拉巴馬州輻條產量增加的支持。

Moving to Slide 7, I'll cover a few highlights on the balance sheet. Li-Cycle ended the first quarter with more than $550 million of cash on hand. This strong balance sheet position is expected to fund a large majority of the capital needed for the Rochester Hub, the 5 Spokes in development and the operating needs of the business through 2023. To further strengthen our balance sheet, optimize our capital structure and provide future flexibility, we are evaluating multiple capital sources that are available to us. These include debt-based financing alternatives such as traditional corporate debt, project financing, government-related funding and funding from potential strategic partners.

轉到幻燈片 7，我將介紹資產負債表上的一些亮點。 Li-Cycle 在第一季度結束時手頭有超過 5.5 億美元的現金。這種強勁的資產負債表狀況預計將為羅切斯特樞紐所需的大部分資金、發展中的 5 個輻條以及到 2023 年的業務運營需求提供資金。進一步加強我們的資產負債表，優化我們的資本結構並提供未來靈活性，我們正在評估可供我們使用的多種資金來源。其中包括基於債務的融資替代方案，例如傳統的公司債務、項目融資、與政府相關的資金以及來自潛在戰略合作夥伴的資金。

With that, let me turn this over to Ajay.

有了這個，讓我把這個交給 Ajay。

Thanks, Debbie. I'll cover our business model and value proposition and close with future key milestones, and I'll begin with Slide 8 with the total addressable market or TAM for battery recycling material in our strategic focus readings. It is projected that by 2025, the North American TAM will grow to be more than 420,000 tonnes of lithium-ion battery equivalent, and Europe will be more than 300,000 tonnes of lithium-ion battery equivalent available for recycling. This is largely attributable to surging demand for electric vehicles which is driving incumbent and emerging electric vehicle OEMs to accelerate their demand for battery materials with increased Gigafactory investments. More recently, we have seen a supply and demand in balance for these critical battery materials, driving pricing to all-time highs, particularly for nickel and lithium.

謝謝，黛比。我將介紹我們的商業模式和價值主張，並以未來的關鍵里程碑結束，我將從幻燈片 8 開始，在我們的戰略重點讀數中介紹電池回收材料的總可尋址市場或 TAM。預計到 2025 年，北美 TAM 將增長到超過 420,000 噸鋰離子電池當量，歐洲將超過 300,000 噸鋰離子電池當量可供回收利用。這主要是由於對電動汽車的需求激增，這促使現有和新興電動汽車原始設備製造商通過增加對 Gigafactory 的投資來加速對電池材料的需求。最近，我們看到這些關鍵電池材料的供需平衡，將價格推至歷史新高，尤其是鎳和鋰。

Turning to Slide 9. I'll review how Li-Cycle Spoke & Hub network fits in the battery material supply chain. First, in North America. With our announced pipeline of projects in operation and development, we are leading the market in terms of lithium-ion battery recycling capacity. When our Rochester Hub is operational, we expect to also be a leading domestic source of battery materials. Let me explain how. As you depict here, mining is the primary source of battery materials to supply cell and auto OEMs. Most of this mine supply is resourced from outside of North America and Europe.

轉到幻燈片 9。我將回顧一下 Li-Cycle Spoke & Hub 網絡如何融入電池材料供應鏈。首先，在北美。憑藉我們宣布的運營和開發項目，我們在鋰離子電池回收能力方面處於市場領先地位。當我們的羅切斯特中心投入運營時，我們預計也將成為國內領先的電池材料來源。讓我解釋一下。正如您在此處所描述的，採礦是供應電池和汽車 OEM 的電池材料的主要來源。大部分礦山供應來自北美和歐洲以外的地區。

We will collect end-of-life batteries and manufacturing scrap from a variety of sources within these markets. Then we will recycle these materials through our Spokes to convert them into black mass and intermediate material, which contains valuable metal content. From there, we will process the black mass produce through our Spokes to our hub, resulting in finished battery-grade specialty materials that can be sold as a domestic source of supply and an alternative to mine sources. Hence, the core of our strategy. Our Spoke & Hub network is designed to be a key domestic source of critical battery materials to the supply chain loop. We call this the urban mining solution.

我們將從這些市場的各種來源收集報廢電池和製造廢料。然後我們將通過我們的輻條回收這些材料，將它們轉化為黑色物質和中間材料，其中含有有價值的金屬成分。從那裡，我們將通過輻條將黑色批量產品加工到我們的中心，從而生產出成品電池級特種材料，可以作為國內供應來源和礦山來源的替代品出售。因此，我們戰略的核心。我們的 Spoke & Hub 網絡旨在成為供應鏈循環中關鍵電池材料的主要國內來源。我們稱之為城市採礦解決方案。

In addition to serving as a domestic supplier, we had another key advantage relative to primary sources, and that is the expedited timing at which we can supply the market. Our speed to market is a function of 2 key strengths: one, the net positive environmental impact of our processing technology, and two, our innovative and scalable construction approach. This reduces time to market by at least half for sustainable materials relative to mining.

除了作為國內供應商外，我們相對於主要來源還有另一個關鍵優勢，那就是我們可以加快供應市場的時間。我們的上市速度取決於兩個關鍵優勢：第一，我們的加工技術對環境的淨積極影響，第二，我們創新和可擴展的施工方法。與採礦相比，這將可持續材料的上市時間縮短了至少一半。

Turning to Slide 10. Simply put, our strategic and competitive advantage is twofold. First, we have patented and proven our Spoke & Hub technologies. Second, we have rapidly expanded our commercial network with leading global battery participants. On the technology front, we believe that our IP protected processing technology, both the Spokes and Hub is disrupting conventional primary sources such as mining and [prior] processing.

轉到幻燈片 10。簡而言之，我們的戰略和競爭優勢是雙重的。首先，我們已獲得專利並證明了我們的 Spoke & Hub 技術。其次，我們迅速擴大了與全球領先電池參與者的商業網絡。在技術方面，我們相信我們的受 IP 保護的處理技術，包括 Spokes 和 Hub 正在顛覆傳統的主要資源，例如採礦和 [之前的] 處理。

On the commercial front, we continue to expand and diversify our portfolio of customers, both with respect to the battery material intake and offtake. On the intake side, we continue to grow our customer supply sources for remaining agnostic to battery chemistries and recycling all types of lithium-ion batteries. We have flexibility to process different types of battery materials at the same time. On the opposite side, 100% of the production from our spokes and specialty battery materials from our future Hub are committed for Traxys. As such, we have mitigated our exposure on end product sales. Over time, as our Hub comes online, we will look to direct our black mass production from the Spokes directly to our Hub.

在商業方面，我們繼續擴大和多樣化我們的客戶組合，包括電池材料的進料和承購。在攝入方面，我們繼續增加我們的客戶供應來源，以保持對電池化學的不可知性和回收所有類型的鋰離子電池。我們可以靈活地同時加工不同類型的電池材料。另一方面，我們未來 Hub 的輻條和特種電池材料的生產 100% 用於 Traxys。因此，我們減輕了終端產品銷售的風險。隨著時間的推移，隨著我們的 Hub 上線，我們將尋求將我們的黑色批量生產從輻條直接引導到我們的 Hub。

Turning to Slides 11 and 12 for economic value proposition. First, Slide 11 depicts our integrated Spoke & Hub model, which is uniquely positioned to unlock significant economic value from battery materials collected from various suppliers. Let me describe the steps in how we capture increasing value. We receive input battery materials from suppliers, which are either processed by us for a fee or purchased at a discount to metal value due to the form of the materials.

轉向幻燈片 11 和 12 了解經濟價值主張。首先，幻燈片 11 描述了我們的集成 Spoke & Hub 模型，該模型具有獨特的優勢，可以從從各個供應商收集的電池材料中釋放顯著的經濟價值。讓我描述一下我們如何獲取不斷增長的價值的步驟。我們從供應商處收到輸入電池材料，這些材料要么由我們收費加工，要么由於材料的形式而以低於金屬價值的價格購買。

Our Spokes process these battery materials into black mass and intermediate material, which is sold at index pricing facing its nickel and cobalt content. This thereby earns a margin spread relative to the input cost of battery materials. While the Rochester Hub is operational, we will process its black mass into refined specialty materials, including lithium carbonate, nickel sulfate and cobalt sulfate. These specialty materials can be sold at a premium to reference metal index pricing due to the battery grade form.

我們的輻條將這些電池材料加工成黑色塊狀和中間材料，並以鎳和鈷含量的指數價格出售。從而相對於電池材料的投入成本獲得了利潤差。在 Rochester Hub 投入運營期間，我們會將其黑色物質加工成精煉的特種材料，包括碳酸鋰、硫酸鎳和硫酸鈷。由於電池級形式，這些特種材料可以以高於參考金屬指數定價的價格出售。

For reference in the first quarter, we achieved an average black mass selling price of approximately $3,800 a tonne. Once the Hub is operational, we would expect to realize approximately 3x to 5x more value on a per tonne of black mass basis through the sale of the specialty materials as compared to selling black mass to third parties.

作為第一季度的參考，我們實現了大約每噸 3,800 美元的平均黑色批量銷售價格。一旦該中心投入運營，與向第三方出售黑藥相比，我們預計通過銷售特種材料，每噸黑藥的價值將提高約 3 到 5 倍。

Slide 12 provides more specifics on the Rochester Hub projected volumes and pricing dynamics. Once operational, the Rochester Hub will not only play a significant role in providing a domestic source of critical battery materials, it will also be a meaningful value driver for Li-Cycle and our shareholders.

幻燈片 12 提供了有關 Rochester Hub 預計數量和定價動態的更多細節。一旦投入運營，羅切斯特中心不僅將在提供國內關鍵電池材料來源方面發揮重要作用，還將成為 Li-Cycle 和我們股東的重要價值驅動因素。

I'll elaborate on that point. Pricing for our key battery material and products will be driven by the hub production volumes, at an agreed-upon premium to metal index pricing with some flexibility to capture upside and favorable supply and demand dynamics. As you can see on the slide, we provide our expected annual production output equivalencies for nickel sulfate, cobalt sulfate and lithium carbonate.

我會詳細說明這一點。我們關鍵電池材料和產品的定價將由樞紐產量驅動，以商定的金屬指數定價溢價，並具有一定的靈活性，以捕捉上行和有利的供需動態。正如您在幻燈片上看到的，我們提供了硫酸鎳、硫酸鈷和碳酸鋰的預期年產量當量。

For further reference in terms of pricing mechanics for our battery grade and products, we provide the metal volume equivalencies for nickel and cobalt based on the relevant chemical equivalencies. Along this on the slide, we show recent historical market pricing for nickel, cobalt and lithium carbonate. In the case of nickel and cobalt, while we track the LME price as an underlying reference point, we typically expect to earn premium pricing to this based on the battery-grade form of these end products. In summary, not only do we earn a premium spread, but if underlying reference prices are increasing, we retain commercial flexibility to capture some of the upside in the underlying indexed pricing.

為了進一步參考我們的電池等級和產品的定價機制，我們根據相關化學當量提供鎳和鈷的金屬體積當量。在幻燈片上，我們展示了鎳、鈷和碳酸鋰的近期歷史市場定價。就鎳和鈷而言，雖然我們將 LME 價格作為基礎參考點進行跟踪，但我們通常希望根據這些最終產品的電池級形式獲得溢價。總而言之，我們不僅獲得溢價差價，而且如果基礎參考價格上漲，我們將保留商業靈活性，以捕捉基礎指數定價的部分上行空間。

Moving to Slide 13. This summarizes our current pipeline of Spoke & Hub projects and the expected timeline through 2023. Earlier, we covered the 2 Spokes in operation and the Arizona and Alabama Spokes coming online in 2022. We have 3 additional Spokes in development. One is the Ohio Spoke, which will be co-located with Ultium Cells' battery mega factory. The Ohio Spoke will have an annual processing capacity of approximately 15,000 tonnes and is expected to be operational in early 2023.

轉到幻燈片 13。這總結了我們當前的 Spoke 和 Hub 項目管道以及到 2023 年的預期時間表。早些時候，我們介紹了 2 個正在運行的輻條以及 2022 年上線的亞利桑那州和阿拉巴馬州的輻條。我們還有 3 個正在開發中的輻條。一個是俄亥俄輻條，它將與 Ultium Cells 的電池大型工廠位於同一地點。俄亥俄輻條的年加工能力約為 15,000 噸，預計將於 2023 年初投入運營。

Two is our Norway Spoke, which is an initial launch into Europe. This is planned to be through a joint venture with Eco Stor, a leading second-life storage business and Morrow Batteries, which is building a battery cell manufacturing plant with an annual capacity more than 40 gigawatt hours. The Norway Spoke is expected to come online by early 2023 with an annual processing capacity of 10,000 tons. And three, is our spoke in Germany, with an annual processing capacity of 10,000 tonnes, which we expect to come online in 2023.

二是我們的Norway Spoke，這是首次進入歐洲。計劃通過與領先的二次電池存儲企業 Eco Stor 和正在建設年產能超過 40 吉瓦時的電池製造廠的 Morrow Batteries 建立合資企業。挪威輻條預計將於 2023 年初上線，年加工能力為 10,000 噸。第三，是我們在德國的輻條，年加工能力為 10,000 噸，我們預計將在 2023 年上線。

Finally, as we reviewed in detail earlier, we are on track for commissioning our Rochester Hub in 2023. Bringing this all together, by the end of 2023, we expect to have a total of 65,000 tonnes of lithium-ion battery spoke processing capacity between North America and Europe. With the first hub in North America, capable of processing 35,000 tonnes of black mass annually.

最後，正如我們之前詳細回顧的那樣，我們有望在 2023 年投入使用我們的羅切斯特樞紐。綜合這一切，到 2023 年底，我們預計總共有 65,000 噸鋰離子電池輻條處理能力。北美和歐洲。擁有北美第一個樞紐，每年可處理 35,000 噸黑色物質。

On the capital cost side, we estimate up to $10 million for the development of each of these remaining Spoke projects, and approximately $485 million for the Rochester hub with an accuracy of plus or minus 15%. As Debbie noted, our current cash balance can fund the large majority of this pipeline of projects and the operating needs of the business for approximately the next 2 years. We are proactively evaluating a number of financing alternatives that are available to us to further strengthen our balance sheet position, optimize our capital structure and provide future flexibility. Over the course of 2022 and 2023, we will continue to provide updates on the developments of our portfolio.

在資本成本方面，我們估計每個剩餘 Spoke 項目的開發成本高達 1000 萬美元，羅徹斯特樞紐的開發成本約為 4.85 億美元，準確度為正負 15%。正如黛比所指出的，我們目前的現金餘額可以為大部分項目管道和未來 2 年的業務運營需求提供資金。我們正在積極評估一些可供我們使用的融資方案，以進一步加強我們的資產負債表狀況、優化我們的資本結構並提供未來的靈活性。在 2022 年和 2023 年期間，我們將繼續提供有關我們投資組合發展的最新信息。

Turning to Slide 14. I'd like to reiterate our key management objectives for 2022. Health, safety, environment and quality remain core to Li-Cycle's culture, values and operating disciplines. We remain focused on delivering on our black mass production target of 6,500 to 7,500 tonnes in fiscal year 2022. We will continue our execution on the Rochester Hub project for commissioning in 2023. And finally, we expect to maintain and enhance our balance sheet position with financial flexibility for future growth and pursue a disciplined approach to managing operating expenses as we build our paths to future profitability.

轉到幻燈片 14。我想重申我們 2022 年的主要管理目標。健康、安全、環境和質量仍然是 Li-Cycle 文化、價值觀和經營準則的核心。我們將繼續專注於在 2022 財年實現 6,500 至 7,500 噸的黑色量產目標。我們將繼續執行 Rochester Hub 項目，並於 2023 年投產。最後，我們預計將保持和加強我們的資產負債表狀況為未來的增長提供財務靈活性，並在我們建立通往未來盈利能力的道路時採用嚴格的方法來管理運營費用。

This concludes our formal remarks, and we look forward to your questions.

我們的正式發言到此結束，我們期待您的提問。

(Operator Instructions)

（操作員說明）

We'll take our first question from P.J. Juvekar of Citi.

我們將向花旗銀行的 P.J. Juvekar 提出第一個問題。

Volatility in lithium, nickel prices, with this -- the big spikes we saw, that's generally not good for any business. So what happened to black mass pricing, let's say, in the last 6 months, but really interested in last quarter, how did the black mass pricing change? And have you seen any changes in the battery costs that you procure?

鋰、鎳價格的波動，以及我們看到的大幅飆升，這通常對任何企業都不利。那麼黑人大眾定價發生了什麼，比如說，在過去的 6 個月裡，但對上個季度真正感興趣的是，黑人大眾定價是如何變化的？您是否看到您採購的電池成本有任何變化？

Thank you, P.J. Yes, and I can start and then and then Debbie can add on as needed. So yes, look, let me start with the black mass, and I'll work my way backwards to the feed. In short, yes, actually, our black mass pricing is based on a formula, and it tracks with the index of nickel and cobalt. So that is the case as time goes on that we are going to benefit from potential upside. The flip side of that is on the input side is also the protection to the downside. So in terms of the feed, we, from a commercial perspective at a high level, and we're not always paying for battery materials, but when we do, it's facing a fixed and a variable discount. And that, again, allows us to benefit from the upside while protecting the downside.

謝謝你，P.J. 是的，我可以開始，然後黛比可以根據需要添加。所以，是的，看，讓我從黑色物質開始，然後我將向後工作。簡而言之，是的，實際上，我們的黑色批量定價是基於一個公式，它與鎳和鈷的指數掛鉤。因此，隨著時間的推移，我們將從潛在的上行空間中受益。輸入端的另一面也是對下行的保護。因此，就飼料而言，從商業角度來看，我們並不總是為電池材料付費，但當我們這樣做時，它面臨著固定和可變的折扣。而且，這再次使我們能夠在保護下行空間的同時從上行空間中受益。

Okay. And in the future, which of your Spokes will feed the Rochester Hub because some of these Spokes are quite far, like, for example, Arizona Spoke from Rochester Hub. So can you just talk about how do you see that integration when all this is built out?

好的。將來，您的哪些輻條將為 Rochester Hub 提供數據，因為其中一些輻條距離很遠，例如來自 Rochester Hub 的 Arizona Spoke。那麼，您能否談談當所有這些都建立起來時，您如何看待這種集成？

No problem, P.J. I can answer that one. So from our perspective, it is a true network effect. So we expect that all of our Spoke facilities will feed our Rochester Hub. How we look at this is that when you compare the cost of battery materials versus the cost of a price of black mass, you end up having a much higher value product as being black mass that's easier and safer and therefore, lower cost of transport.

沒問題，P.J. 我可以回答這個問題。所以從我們的角度來看，這是一個真正的網絡效應。因此，我們希望我們所有的 Spoke 設施都能為我們的 Rochester Hub 提供服務。我們對此的看法是，當您將電池材料的成本與黑色物質的成本進行比較時，您最終會獲得價值更高的產品，因為黑色物質更容易、更安全，因此運輸成本更低。

So one of the key benefits of the business model is we're able to turn those potentially volatile materials on the inbound side into an easily transportable. And as you can see in the deck, the average price at around $3,500 per tonne for the quarter, high-value intermediary product that is shipped in bulk bags like most concentrates that you've seen around the world directly to the facility in Rochester.

因此，商業模式的主要好處之一是我們能夠將入站的那些潛在易揮發的材料轉變為易於運輸的材料。正如您在甲板上看到的那樣，本季度的平均價格約為每噸 3,500 美元，高價值的中間產品採用散裝袋裝運，就像您在世界各地看到的大多數濃縮物一樣，直接運往羅徹斯特的工廠。

One thing I will add is that one of the reasons why we chose the Rochester location is because of its serviceability by infrastructure. So we do have to direct rail and road transport with just coming off the highway there in Rochester, which does allow us to optimize our logistics costs. And just one clarification, P.J. apologies as I said, $3,500 for the quarter was actually $3,800 per tonne of black mass for the quarter. For the same sentiment applied. So it's a high-value, easily transportable intermediary.

我要補充的一件事是，我們選擇羅切斯特位置的原因之一是因為它的基礎設施可維護性。因此，我們確實必須直接從羅切斯特的高速公路上下來，直接進行鐵路和公路運輸，這確實使我們能夠優化物流成本。正如我所說，P.J. 道歉只是一個澄清，本季度 3,500 美元實際上是本季度每噸黑色物質 3,800 美元。對於同樣的情緒應用。因此，它是一種高價值、易於運輸的中介。

We'll take our next question from Brian Dobson of Chardan Capital Markets.

我們將向 Chardan Capital Markets 的 Brian Dobson 提出下一個問題。

You mentioned that there was a maintenance issue at one of your spokes that shifted from the sale of black mass in 1Q to 2Q. Can you give us a little bit more color on that? What was the revenue impact?

你提到你的一個輻條有一個維護問題，從第一季度的黑色質量銷售轉移到第二季度。你能給我們更多的顏色嗎？收入影響如何？

Yes. No problem. So I can address that one Brian. So let me first -- so the issue there was the availability of spares. So we do have consumables that we use through the process and unfortunately, we didn't have it available when we needed it, which meant that we're forced to run the significantly lower processing capacity through the Kingston operation for almost a month.

是的。沒問題。所以我可以解決那個布賴恩。所以讓我首先 - 所以問題是備件的可用性。因此，我們確實有在整個過程中使用的消耗品，不幸的是，我們在需要時沒有可用的消耗品，這意味著我們被迫通過金士頓工廠運行顯著較低的處理能力近一個月。

So you can think of it as effectively having almost losing a month of true process capacity through the Kingston operation. We've addressed that on our side in terms of we understand that the world has changed and the world has changed, I think, forever and how we managed spares and inventory spares, we've been able to address that so that we won't have this issue again, but it was definitely a significant impact that we had to deal with in the last quarter.

因此，您可以將其視為通過金士頓操作實際上損失了幾乎一個月的真實處理能力。我們已經解決了這個問題，因為我們了解世界已經改變，世界已經改變，我認為，永遠以及我們如何管理備件和庫存備件，我們已經能夠解決這個問題，以便我們獲勝'不會再遇到這個問題，但這絕對是我們在上個季度必須處理的重大影響。

And I would just add, it's Ajay here, as you think about on a go-forward basis, and I understand, obviously, where folks are trying to think is as we talked about the incremental subsequent Spokes, how it's translating and when does it mean for the go forward. Well I would just say that really simply put is as you think about this year, I would just encourage you to have listened to Debbie's remarks that we're talking about the Alabama and Arizona Spokes coming in primarily in terms of ramp up in the back half of the year. So just you think about how to model this year in terms of the guidance we've stuck with, obviously, in terms of the black mass production.

我想補充一下，這裡是 Ajay，正如你在前進的基礎上考慮的那樣，我明白，很明顯，當我們討論增量後續輻條時，人們試圖思考的地方，它是如何翻譯的，什麼時候翻譯意味著前進。好吧，我只想說，就像您對今年的想法一樣，我只想鼓勵您聽聽黛比的言論，我們正在談論阿拉巴馬州和亞利桑那州的輻條，主要是在後面的斜坡上半年。所以只要你想想今年如何根據我們一直堅持的指導來建模，顯然，就黑色量產而言。

Okay. Excellent. That's very helpful.

好的。優秀。這很有幫助。

We'll take our next question from George Gianarikas of Baird.

我們將向 Baird 的 George Gianarikas 提出下一個問題。

Welcome, Debbie, Nice to have you aboard.

歡迎，黛比，很高興有你加入。

Thanks, George.

謝謝，喬治。

Just a very quick question. First, on your permitting. You mentioned that you were issued a negative declaration of environmental impact from the Town of Greece, New York, sounds like a wonderful place. If you could just share what that was like and what exactly they went through? Did they go through your future operations and determined the negative declaration? Or was it just based on the build-out of the hub?

只是一個非常快速的問題。首先，在您的允許下。您提到您收到了來自紐約希臘小鎮的環境影響負面聲明，這聽起來是個很棒的地方。如果你能分享那是什麼樣的，他們到底經歷了什麼？他們是否通過了您未來的操作並確定了否定聲明？或者它只是基於集線器的構建？

No, that's a great question. So the negative declaration is a process, and we say it was issued by the Town of Greece because they were the municipality or the party that was ultimately responsible for facilitating the program, but it did have inputs and reviewed by well over a dozen different agencies within the state and broader. And what they're looking at is they're looking at the environmental, community, economic impact of not just the construction, but the long-term operation of the facility. So they're looking at what sort of levels of air emissions, water emissions. They're also looking at what will happen during construction or (inaudible) one-off, et cetera, that could go on.

不，這是一個很好的問題。所以否定聲明是一個過程，我們說它是由希臘鎮發布的，因為他們是最終負責促進該計劃的市政府或政黨，但它確實有輸入並由十幾個不同的機構審查在州內和更廣泛的範圍內。他們所關注的是，他們不僅關注建築的環境、社區和經濟影響，還關注設施的長期運營。所以他們正在研究什麼樣的空氣排放量，水排放量。他們還在研究施工期間會發生什麼，或者（聽不清）一次性等等，這可能會繼續下去。

It's a very detailed process. And having done that and going through that and have all the agencies reviewed it and come back and said that they're going to see that we will have a meaningful impact in getting that negative declaration. It was a major milestone. That allowed us to move forward with our air permit application, which was a process that's administrated by the New York State Department of Environmental Conservation. And ultimately, we were able to receive that permit earlier this month.

這是一個非常詳細的過程。已經完成並經歷了這些，並讓所有機構對其進行審查並返回並表示他們將看到我們將在獲得負面聲明方面產生有意義的影響。這是一個重要的里程碑。這使我們能夠繼續進行我們的航空許可證申請，這是一個由紐約州環境保護部管理的過程。最終，我們能夠在本月早些時候獲得該許可證。

Congratulations. And one more. Just as we approach the Hub in 2023, can you share kind of broadly additional learnings, additional insights in terms of its future operation?

恭喜。還有一個。就像我們在 2023 年接近中心一樣，您能否分享一些廣泛的額外經驗，就其未來運營而言的額外見解？

Sorry, I'm not sure I quite understand the question. Can you please repeat that?

抱歉，我不確定我是否完全理解這個問題。你能重複一遍嗎？

Sure. Meaning that you've had another 3 months now to plan out the Hub, and I'm curious as to any additional insights, any operational changes you kind of made or how comfortable you feel with getting that up and running by 2023?

當然。這意味著您現在還有 3 個月的時間來規劃 Hub，我很好奇是否有任何額外的見解、您所做的任何操作更改，或者您對在 2023 年之前啟動並運行它的感覺如何？

Yes. So I mean, we continue to remain on track for commissioning in 2023. We haven't learned of anything that really changes our view in that regard. The process is essentially locked down where we're in what we call the detailed design, engineering and procurement phase. We've started basic earthworks on site, and that's continuing to move forward. And so from that perspective, no, nothing that would change our view.

是的。所以我的意思是，我們將繼續按計劃在 2023 年進行調試。我們還沒有了解到任何真正改變我們在這方面的看法的事情。這個過程基本上被鎖定在我們所謂的詳細設計、工程和採購階段。我們已經在現場開始了基本的土方工程，並且還在繼續推進。所以從這個角度來看，不，沒有什麼會改變我們的觀點。

We'll take our next question from Robin Fiedler of BMO.

我們將向 BMO 的 Robin Fiedler 提出下一個問題。

Congrats on the Hub permit. So with volumes ramping and the lag benefit from higher commodity prices offset by presumably costs continuing to grow as well. With all those puts and takes, like do you expect the quarterly cash burn to get better or worse across the year?

恭喜獲得 Hub 許可證。因此，隨著銷量的增加以及商品價格上漲帶來的滯後收益被成本繼續增長所抵消。有了所有這些看跌期權，您是否預計季度現金消耗在全年會變得更好或更糟？

Yes, I can maybe start and then Debbie can add on that. And thanks for the question, Robin. So I think at a high level, as you folks think about going forward, of course, we're growing, and we're bringing on additional assets. That said, and we're also scaling headcount to support the network. But we have a good base today that's going to be also benefiting our future buildout as well. And there will also be, of course, the revenue benefit from those incremental assets, of course, that we shouldn't forget, maybe Debbie wants to add to that.

是的，我也許可以開始，然後黛比可以補充。謝謝你的問題，羅賓。所以我認為在高層次上，當你們考慮前進時，當然，我們正在成長，我們正在帶來額外的資產。也就是說，我們還在擴大員工人數以支持網絡。但我們今天有一個良好的基礎，這也將有利於我們未來的擴建。當然，這些增量資產也會帶來收入收益，當然，我們不應該忘記，也許黛比想增加這一點。

No, I would just echo what Ajay said, so you've seen our Q1. I think the way I would characterize it is you could probably expect a more increase in our SG&A as we obviously continue to build out. But then we're going to you, as Ajay said, then we're going to have some revenue streams come on as we continue to build out?

不，我只是回應 Ajay 所說的話，所以你已經看到了我們的 Q1。我認為我將描述它的方式是，隨著我們顯然繼續擴大，您可能會期望我們的 SG&A 有更多的增長。但是，正如 Ajay 所說，我們會去找你，然後隨著我們繼續擴大，我們會有一些收入來源嗎？

Okay. And -- just a question on the spoke operating rates. Like what is the ability for you to run a spoke maybe above its capacity for a specific quarter. I guess what I'm going to figure out is with the Kingston plant running below for this last quarter with the maintenance, can you catch up, so to speak, because with your maintained all your black mass production, I would have thought that you would need Rochester and Kingston running pretty close to 100% capacity. So maybe the offset is just Arizona and Alabama getting -- having a stronger ramp than I would have thought. So maybe if you can just unpack a little bit more and what gives you conviction if you still meet this for your volume guidance?

好的。而且 - 只是關於輻條運營率的問題。就像您在特定季度運行輻條的能力可能超過其能力一樣。我想我要弄清楚的是，金士頓工廠在最後一個季度運行在下面進行維護，你能趕上嗎，可以這麼說，因為你維護了你所有的黑色批量生產，我原以為你將需要羅切斯特和金士頓以接近 100% 的容量運行。所以也許抵消只是亞利桑那州和阿拉巴馬州得到 - 有一個比我想像的更強大的斜坡。因此，如果您可以再打開一點包裝，如果您仍然滿足這一點作為您的音量指導，那麼您會相信什麼？

No problem. So let me -- I'm going to answer your question in reverse. I'll start with Arizona and Alabama. They, Ajay and Debbie, were stating earlier that we do expect the production to be heavily weighted towards the back end of the year. They will make a significant change in terms of the operational capacity of the network of Spoke facilities here in North America. One of the other benefits that we don't often get a chance to talk about, so I'll take the opportunity now is that our Spokes will also -- this is the first time that we've been able to roll out our full pack processing capacity.

沒問題。所以讓我 - 我將反過來回答你的問題。我將從亞利桑那州和阿拉巴馬州開始。他們，Ajay 和 Debbie，早些時候曾表示，我們確實預計生產將在年底前佔很大比重。他們將在北美的 Spoke 設施網絡的運營能力方面做出重大改變。我們不經常有機會談論的其他好處之一，所以我現在要藉此機會是我們的輻條也將 - 這是我們第一次能夠推出我們的完整包處理能力。

And what that basically means is that we'll now have an assortment of Spokes with capabilities that are stronger in regards to larger format batteries. And we'll be able to modify how we feed these plants to be optimized for the style of plant that it is. And that's a very technical answer, Robin, but the intent is just to say that as we increase the number of Spoke facilities, our optimization of these assets that -- our existing assets will also improve. And so I do believe that, as we stated, we're still targeting the same annual production of black mass. It's just going to be heavily weighted towards the back end of the year. So despite having a lower-than-expected production quarter, we haven't changed our guidance for the full year.

這基本上意味著我們現在將擁有各種各樣的輻條，這些輻條在更大尺寸電池方面的能力更強。我們將能夠修改我們餵養這些植物的方式，以針對植物的風格進行優化。這是一個非常技術性的答案，羅賓，但其目的只是說，隨著我們增加 Spoke 設施的數量，我們對這些資產的優化——我們現有的資產也將得到改善。所以我確實相信，正如我們所說，我們仍然以相同的年產量為目標。它只會在今年年底時受到很大影響。因此，儘管生產季度低於預期，但我們沒有改變全年的指導。

Maybe just a follow-up on that. So is the output from Kingston, is there like lost production there? Or I guess, part of what you're doing, like shifting some of your feedstock to the other plants to maintain like that same volume. Like is there -- was there a output destruction at Kingston for the full year basically?

也許只是對此的跟進。金士頓的產量也是如此，那裡是否有生產損失？或者我猜，您正在做的部分工作，例如將您的一些原料轉移到其他工廠以保持相同的體積。就像那裡一樣 - 金士頓全年基本上都有產量破壞嗎？

Yes. So as -- and I think I understand where you're coming from, and so correct me if I'm wrong. But -- so for Kingston as we bring on the other facilities, we will optimize what we send to what plant. So keeping in mind, Kingston today processes material from all over North America, not just from, let's say, the Ontario basin. And so what we will do is we will prioritize sending larger-format material, for example, to Arizona and Alabama as those facilities are better situated to handle it at a higher throughput rate than what Kingston is. We also talked about scheduled maintenance that the benefit of that is increased uptime, less maintenance because of it's -- we're actually using the facility for what it was truly designed to do rather than pushing it to process larger format material.

是的。所以 - 我想我理解你來自哪裡，如果我錯了，請糾正我。但是——所以對於金士頓來說，當我們引進其他設施時，我們將優化我們發送到哪個工廠的內容。因此請記住，金士頓今天處理來自北美各地的材料，而不僅僅是來自安大略盆地。因此，我們將優先考慮向亞利桑那州和阿拉巴馬州發送大幅面材料，因為這些設施比金士頓更適合以更高的吞吐量處理這些材料。我們還談到了定期維護，這樣做的好處是增加了正常運行時間，減少了維護，因為它是——我們實際上是在使用該設施來實現它真正設計的目的，而不是推動它處理更大格式的材料。

We'll take our next question from Dan Ives of Wedbush.

我們將向 Wedbush 的 Dan Ives 提出下一個問題。

So just with rising costs across the board. And obviously, with the build-out in Rochester. Can you just talk about from a guidance perspective or just internally how you're thinking about the variables there? Like what's the major thing that could maybe go wrong or go right when you're thinking about sort of forecasting the cost structure over the next 6 to 12 months?

所以只是隨著成本的全面上升。顯然，隨著羅切斯特的擴建。你能從指導的角度談談，還是從內部談談你是如何考慮那裡的變量的？例如，當您考慮預測未來 6 到 12 個月的成本結構時，可能出錯或正確的主要事情是什麼？

No problem. And so -- when it comes to the Hub in Rochester, one of the things that we've been very conscious of is the higher volatility in pricing. And that's -- we referred to long-lead procurement and we've been very aggressive in targeting of only procurement packages early on. So on the back of the DFS, we've placed the majority of our long-lead packages, which is locked in the pricing for those. Of course, the world continues to be volatile. So I'm not going to say that it's completely not, but those have been largely locked in. And at this time, we're continuing to move forward with construction with Hatch and MasTec. And we still feel that the project is tracking within that plus/minus 15% range that we targeted on the backs of the DFS.

沒問題。所以 - 當談到羅切斯特的樞紐時，我們一直非常清楚的一件事是定價的更高波動性。那就是 - 我們提到了長期採購，我們在早期非常積極地瞄准採購包。因此，在 DFS 的背面，我們已經放置了我們的大部分長期包，這些包被鎖定在這些包的定價中。當然，世界仍然動盪不安。所以我不會說它完全不是，但這些基本上都被鎖定了。此時，我們正在繼續推進與 Hatch 和 MasTec 的建設。而且我們仍然認為該項目正在跟踪我們在 DFS 背面定位的正負 15% 範圍內。

And we'll take our next question from Evan Silverberg of Morgan Stanley.

我們將向摩根士丹利的埃文·西爾弗伯格提出下一個問題。

Evan Silverberg on for Adam Jonas. Just combining a few different thoughts you guys have thrown out there. You said -- I believe, Ajay, you said that there's enough cash on hand to fund the business for close to 2 years. So I mean if we're looking at the big chunk of cash here, it's going to be the Hub. So I mean, is that really going to -- are we thinking operationally that's more the back half of '23 versus the front half of '23 if you really think you could keep that cash balance for close to 2 years?

埃文·西爾弗伯格（Evan Silverberg）為亞當·喬納斯（Adam Jonas）效力。只是結合了你們提出的一些不同的想法。你說 - 我相信，Ajay，你說手頭有足夠的現金來為這項業務提供近 2 年的資金。所以我的意思是，如果我們在這裡查看大量現金，它將成為中心。所以我的意思是，如果你真的認為你可以將現金餘額保持近 2 年，那麼我們是否真的會在運營上考慮更多的是 23 年的後半部分而不是 23 年的前半部分？

Yes. Maybe I'll start and then I'll turn it over to Debbie. Yes, I think probably you're thinking about the time frame in the right way. Of course, there's a lot of puts and takes, right? There's capital, there's our OpEx component, and there's also the revenue benefit from the additional Spokes to bring them online and alter selling black mass and of course, given the broader environment, which is favorable for us from a supply-demand perspective for those materials and there are associated material pricing that factors in the black mass that's, of course, favorable. There's a few puts and takes, I would say, Debbie can add to that.

是的。也許我會開始，然後我會把它交給黛比。是的，我認為您可能正在以正確的方式考慮時間框架。當然，有很多投入和投入，對吧？有資本，有我們的運營支出部分，還有額外的輻條帶來的收入收益，使它們上線並改變銷售黑人大眾，當然，考慮到更廣泛的環境，從這些材料的供需角度來看，這對我們有利並且有相關的材料定價，這些因素當然是有利的。我想說，有一些看跌期權，黛比可以添加。

Yes. So if you look at the combination of where we sit in terms of Q1 and in Q4. If you're looking to sort of figure out a little bit of math, if you think of that pretty much is a good indication, brining my comments earlier, right, with regards to our run rate. I think that's really helpful. And then if you look at our needs on the capital side, so there is Hub construction, and we've got that 5 Spokes under development for the next couple of years. When you put all of that together, I think, what you get to is we've got the large majority covered by our current situation. And we look at it as a sort of time frame that we can manage, where there's a number of sources available to us that we can execute on.

是的。因此，如果您查看我們在第一季度和第四季度所處的位置的組合。如果你想弄清楚一點數學，如果你認為這幾乎是一個很好的跡象，那麼就我們的運行率而言，早點提出我的評論。我認為這真的很有幫助。然後如果你看看我們在資本方面的需求，那就是樞紐建設，我們在接下來的幾年裡正在開發這 5 個輻條。當你把所有這些放在一起時，我認為，你得到的是我們目前的情況已經涵蓋了絕大多數。我們將其視為一種我們可以管理的時間框架，我們可以在其中執行許多可用的資源。

So when we're looking on both short, medium and long term, we tend to chunk this up a little bit. And we're sort of approaching it from a basis of as we execute additional projects, we've got opportunity to execute additional layers of financing. So what we're trying to do is match our balance sheet on financing alternatives that are open to us as we grow the business in a modular way, in the same way that we're approaching the growth of the business. So kind of see that whole financing plan hand in hand with the approach to building out the growth for the business.

因此，當我們同時考慮短期、中期和長期時，我們傾向於將其細分一點。我們正在從執行額外項目的基礎上接近它，我們有機會執行額外的融資層。因此，我們正在嘗試做的是匹配我們的資產負債表，以便在我們以模塊化方式發展業務時向我們開放的融資替代方案，就像我們正在接近業務增長一樣。所以看到整個融資計劃與建立業務增長的方法齊頭並進。

One follow-up, if you don't mind. While not perfect math here, if we were to take the black mass produced in the first quarter and kind of imply with the lithium-ion battery equivalent into the Spokes was via pricing as the third variable, you kind of get like a low 70% conversion rate, which would make sense given that right now, a lot of the input is feed scrapped. So as we're kind of looking at the back or the rest of the year, and you're looking at your supply, do we think that conversion rate kind of holds? Or do you see maybe larger format items coming into the Spokes, which would then reduce that conversion rate?

如果您不介意，請進行後續操作。雖然這裡的數學並不完美，但如果我們將第一季度生產的黑色質量計算在內，並暗示將鋰離子電池等效於輻條中，是通過定價作為第三個變量，你會得到低 70%轉換率，考慮到現在很多輸入都被廢棄了，這是有道理的。因此，當我們正在關註今年的下半年或餘下時間，而您正在關注您的供應時，我們認為轉換率會保持不變嗎？或者您是否看到可能更大格式的項目進入輻條，這會降低轉換率？

Yes, at a high level, using something in the range of -- and I think we actually have it in the deck as a footnote on one of the pages, but it's roughly speaking, you can use a ratio of like 0.35 tonnes of black mass to 0.65 tonnes of black mass, maybe a little bit more. This is approximate for every tonne of input. And I would just say, obviously it's quite variable as you're getting at, I would just say that's why we like to focus people on that intermediate product production number because the feed can be quite variable.

是的，在高層次上，使用範圍內的東西——我認為我們實際上在甲板上將它作為其中一頁的腳註，但粗略地說，你可以使用 0.35 噸黑色的比例質量到 0.65 噸的黑色質量，也許更多一點。這是每噸輸入的近似值。我只想說，很明顯，正如你所了解的那樣，它的變化很大，我只想說這就是為什麼我們喜歡讓人們關注中間產品的生產數量，因為提要可能會變化很大。

(Operator Instructions)

（操作員說明）

We'll take a follow-up from Brian Dobson of Chardan Capital Markets.

我們將聽取 Chardan Capital Markets 的 Brian Dobson 的後續報導。

So you received licensing for the Rochester facility. New York is a very rigorous jurisdiction to receive such licensing, I suppose. Were there any key takeaways or learnings from that process that you think could accelerate future licensing processes for Hub facilities?

因此，您獲得了羅切斯特設施的許可。我想紐約是一個非常嚴格的司法管轄區來獲得此類許可。您認為從該過程中是否有任何關鍵的收穫或教訓可以加速 Hub 設施的未來許可流程？

Yes, it's a great question. So I would say that -- and I have to take my hat off to my team -- our team that they did an excellent job in terms of managing the communication making sure that all the key stakeholders were well educated in the process, well in advance of us going through the formal application process. But I think that, that point just from -- whilst it's not a direct technical point is just really important. And that's how we approach all [funding] activities. And then going forward, that's, I think, a key aspect of how we operate and combine that with our technologically advanced process. It's easy for people to understand what we're doing and why we're doing it, and easy to see the minimal impact that we're able to have but it starts with communication.

是的，這是一個很好的問題。所以我想說——我必須向我的團隊脫帽致敬——我們的團隊在管理溝通方面做得非常出色，確保所有關鍵利益相關者在這個過程中都受過良好的教育，並且在我們提前通過正式的申請程序。但我認為，這一點只是來自——雖然它不是一個直接的技術點，但它真的很重要。這就是我們處理所有[資金]活動的方式。然後繼續前進，我認為，這是我們如何運營並將其與我們技術先進的流程相結合的一個關鍵方面。人們很容易理解我們在做什麼以及我們為什麼這樣做，並且很容易看到我們能夠產生的最小影響，但它始於溝通。

And just to add a little bit on Tim's point but from a bigger picture, and I touched on this in my remarks, but I just really want to emphasize this because it's -- it just speaks to our importance as Li-Cycle. What we just did on the Rochester Hub, you would not be able to that, and I think everybody knows this, on a primary mine and refinery. You would take 5, 10 years, maybe never, depending on the locale and the various complexities involved.

只是為了補充一點蒂姆的觀點，但從更大的角度來看，我在講話中談到了這一點，但我真的想強調這一點，因為它 - 它只是說明了我們作為 Li-Cycle 的重要性。我們剛剛在羅切斯特樞紐所做的事情，你將無法做到，而且我想每個人都知道這一點，在初級礦山和煉油廠。您可能需要 5 年、10 年，也許永遠不會，這取決於地區和所涉及的各種複雜性。

And you factor up that with a market that is short of these critical materials. So our speed to market, I talked about this in my remarks, but I just really want to emphasize this, is way faster than any primary source. And we're entering a period where the winners of this space in terms of broader EV, our view is, will be driven by their critical material access. And we will be, as the parse there, we try to break it down pretty simply on Page 12, a natural beneficiary of that. So it sounds quite technical when we talk about the permitting, but that's the real big picture importance of it.

而你在缺乏這些關鍵材料的市場上考慮了這一點。所以我們的上市速度，我在發言中談到了這一點，但我真的想強調這一點，比任何主要來源都要快。我們正在進入一個時期，在更廣泛的電動汽車方面，這個領域的贏家，我們認為，將受到他們關鍵材料訪問的驅動。我們將是，作為那裡的解析，我們試圖在第 12 頁上簡單地分解它，自然受益者。所以當我們談論許可時，這聽起來很技術性，但這才是它真正的大局重要性。

And I would just sort of overlay one final point on that, and that is in relation to traditional recycling approaches and their lack of sustainability, and what I'm referring to there is high-temperature processing and the large amount of air emissions and solid waste that is generated from those processes -- is we've deliberately gone away from that, and that is a key advantage for us to be able to address this and ultimately address the needs of domestic supply here in North America.

我只想在最後一點上強調一點，那就是與傳統的回收方法及其缺乏可持續性有關，我指的是高溫處理以及大量的空氣排放和固體這些過程產生的廢物 - 我們是否故意遠離它，這是我們能夠解決這個問題並最終解決北美國內供應需求的關鍵優勢。

We'll take a follow-up from Robin Fiedler of BMO.

我們將跟進 BMO 的 Robin Fiedler。

Just wondering how important the expected feedstock from Ultium's Ohio plant is this year to meet the production guidance, trying to get a sense of if that plant maybe ramps slower than expected, what that impact could be on your side?

只是想知道今年 Ultium 俄亥俄工廠的預期原料對於滿足生產指導有多重要，試圖了解該工廠的產量是否可能比預期的慢，這會對您產生什麼影響？

Yes, I'll maybe start and then Tim can add on. I think when we look at a high level, I think their timing is public. It's out there. It's not showing anything here that's not known, but they are certainly in the ramp-up phase this year -- and I think again, it's public that it's really more through next year that they're into that more ramp-up phase in earnest. But that's some commentary at a high level.

是的，我可能會開始，然後蒂姆可以添加。我認為當我們看高水平時，我認為他們的時機是公開的。它在外面。這裡沒有顯示任何不為人知的東西，但他們今年肯定處於加速階段——我想再一次，公開的是，明年他們真正進入更加加速的階段是公開的.但這是一些高水平的評論。

Yes. I would just add to that is that like any plan, there is a commissioning and ramp-up phase associated with bringing these assets online and we take that into consideration in our own forecast, as we make our estimates.

是的。我只想補充一點，就像任何計劃一樣，將這些資產上線需要一個調試和加速階段，我們在做出估計時會在我們自己的預測中考慮到這一點。

We'll take a follow-up from P.J. Juvekar of Citi.

我們將從花旗的 P.J. Juvekar 那裡得到後續跟進。

Yes. A quick one on your -- some of your key partners. Can you just talk about what was the delay with LG and LG ES contracts, do we read anything into that? And also a question on Koch Engineered Solutions, or KES, that was your partner in building some of the stuff out. Can you just provide some update on that?

是的。快速了解您的一些關鍵合作夥伴。您能談談 LG 和 LG ES 合同的延遲原因嗎？我們對此有什麼了解嗎？還有一個關於 Koch Engineered Solutions 或 KES 的問題，它是您構建某些東西的合作夥伴。你能提供一些更新嗎？

Yes. I'm going to start and P.J. I can start with LG and Tim can take KES. So yes, in short, it was just we needed more time with all there's numerous agreements, numerous parties involved. We filed the amended subscription agreement. You'll see the only thing that's changed is the outside date. And that's it. Simple as that.

是的。我要開始，P.J. 我可以從 LG 開始，蒂姆可以選擇 KES。所以，是的，簡而言之，只是我們需要更多時間來處理所有協議，涉及的各方眾多。我們提交了修改後的認購協議。您會看到唯一改變的是外部日期。就是這樣。就那麼簡單。

And then in relation to Koch and our partnership with Koch, we continue to work with Koch there, in fact, the lead on the build-out for our Norway facility. And so we're utilizing that engineering team to convert our design to meet the European standards as well as managing the construction logistics and logistics support rather for that facility. So we're very happy with our partnership with Koch, they've been a great partner and...

然後關於 Koch 以及我們與 Koch 的合作夥伴關係，我們將繼續與 Koch 在那里合作，事實上，這是我們挪威工廠擴建的領導者。因此，我們正在利用該工程團隊將我們的設計轉換為符合歐洲標準，並為該設施管理建築物流和物流支持。因此，我們對與 Koch 的合作感到非常高興，他們一直是很棒的合作夥伴，而且...

And this does conclude our question-and-answer session. I'd be happy to turn the call over to Tim Johnston for closing comments.

這確實結束了我們的問答環節。我很樂意將電話轉給 Tim Johnston 以徵求意見。

Thank you very much. So briefly closing with a recap. We continue to execute on our Spoke & Hub network growth objectives. We've obtained all key environmental permits for our Rochester Hub to maintain on track commissioning in 2023. And we expect 4 operating Spokes in 2022 and 7 operating Spokes in 2023. Our Spoke & Hub model is leading in North America with IP-protected technology, an environmental net positive solution and speed to market, it is helping us solve the domestic shortage of battery materials.

非常感謝。因此，簡要總結一下。我們將繼續執行我們的 Spoke & Hub 網絡增長目標。我們的 Rochester Hub 已獲得所有關鍵環境許可，可在 2023 年保持正常調試。我們預計 2022 年有 4 個運行輻條，2023 年有 7 個運行輻條。我們的輻條和集線器模型在北美領先，採用 IP 保護技術，環保淨正的解決方案和上市速度，正在幫助我們解決國內電池材料短缺的問題。

We are well funded for our current portfolio of projects with cash on hand and plans to future funding options. Li-Cycle was positioned to capture significant economic value with tightening battery material supply and demand dynamics that are driving pricing for battery materials to all-time highs. And our 2022 performance objectives are directly tied to key value drivers for shareholders.

我們目前的項目組合資金充足，手頭有現金，併計劃未來的融資選擇。 Li-Cycle 的定位是通過收緊電池材料的供需動態，從而將電池材料的價格推至歷史新高，從而獲得顯著的經濟價值。我們的 2022 年業績目標與股東的關鍵價值驅動因素直接相關。

We appreciate your time and interest in Li-Cycle and look forward to continuing to update you regarding our exciting growth prospects.

我們感謝您對 Li-Cycle 的時間和興趣，並期待繼續向您介紹我們令人興奮的增長前景。

This concludes today's Li-Cycle Holdings First Quarter 2022 Earnings Call and Webcast. Please disconnect your line at this time, and have a wonderful day.

今天的 Li-Cycle Holdings 2022 年第一季度財報電話會議和網絡直播到此結束。請在此時斷開您的線路，並祝您有美好的一天。