Loop Industries Inc (LOOP) 2024 Q4 法說會逐字稿

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Loop Industries fourth-quarter 2024 corporate update call. My name is [Carla], and I'll be coordinating your call today.(Operator Instructions)

早安，女士們，先生們。謝謝你的支持。歡迎參加 Loop Industries 2024 年第四季公司更新電話會議。我的名字是 [Carla]，今天我將協調您的通話。

This conference call is being recorded today, May 30, 2024, and the press release accompanying this conference call had -- was issued last evening, May 29, 2024. On our call today is Loop Industries' Chief Executive Officer, Daniel Solomita; and Fady Mansour, Chief Financial Officer, and Kevin O'Dowd, Head of Investor Relations.

本次電話會議於今天（2024 年 5 月 30 日）錄製，伴隨本次電話會議的新聞稿於 2024 年 5 月 29 日昨晚發布。今天與我們通話的是 Loop Industries 執行長 Daniel Solomita；財務長 Fady Mansour 和投資者關係主管 Kevin O'Dowd。

I would now like to turn the conference call over to Kevin to read a disclaimer about the forward-looking statements.

我現在想將電話會議轉交給凱文，讓他宣讀有關前瞻性陳述的免責聲明。

Thank you, operator. Before we get started, let me remind you that today's meeting will include forward-looking statements within the meaning of security laws. These forward-looking statements relate to, among other things, current plans, expectations, events and industry trends that may affect the company's future operating results and financial positions.

謝謝你，接線生。在我們開始之前，讓我提醒您，今天的會議將包括安全法含義內的前瞻性陳述。這些前瞻性陳述涉及可能影響公司未來營運績效和財務狀況的當前計劃、預期、事件和行業趨勢等。

Such statements involve risks and uncertainties in future activities and results may differ materially from these expectations. Additional information concerning these statements and related risks and uncertainties is contained in the Risk Factors and Forward-Looking Statements section of our latest annual report Form 10-K of our quarterly report and 10-Q filed with the SEC yesterday -- in yesterday's press release. Copies of these documents are available by at sec.gov or from our Investor Relations department.

此類陳述涉及未來活動的風險和不確定性，結果可能與這些預期有重大差異。有關這些陳述以及相關風險和不確定性的更多信息包含在我們昨天向 SEC 提交的最新年度報告 10-K 季度報告和 10-Q 表格的風險因素和前瞻性陳述部分 - 在昨天的新聞稿中。這些文件的副本可透過 sec.gov 或我們的投資者關係部門取得。

At this time, I'd like to turn the call over to Daniel Solomita, Chief Executive Officer of Loop Industries. Please go ahead, Daniel.

現在，我想將電話轉給 Loop Industries 執行長 Daniel Solomita。請繼續，丹尼爾。

Thank you, Kevin. Good morning, everyone, thank you for joining our call. It's been a very eventful quarter and year end. We have made great strides towards the commercialization of our technology. This morning, I'll be outlining our partnership with Ester Industries, which combines Loops, monomer and specialty polymer business with low cost manufacturing.

謝謝你，凱文。大家早安，感謝您加入我們的通話。這是一個非常重要的季度和年末。我們在技術商業化方面取得了長足進步。今天早上，我將概述我們與 Ester Industries 的合作夥伴關係，該公司將循環、單體和特種聚合物業務與低成本製造結合。

I'll be updating you on our progress at Olson with our partnership with SKGC, an update on our status of the refinancing and finally, our on-shoes partnership, which showcases Loop's ability to recycle polyester textile waste.

我將向您介紹 Olson 與 SKGC 合作的進展、再融資狀況的最新情況，最後是我們的鞋類合作夥伴關係，這展示了 Loop 回收聚酯紡織廢料的能力。

So let's get started with The Infinite Loop India, which combines the monomer business opportunity with low-cost manufacturing. The monomer business model is filling a market need for sustainably produced DMT and MEG and high margin specialty polymers. This is complementary to our PET business. The monomer business is addressing a huge underserved market for sustainably produced DMT and MEG.

因此，讓我們從無限循環印度開始，它將單體商業機會與低成本製造結合在一起。單體業務模式正在滿足永續生產的 DMT 和 MEG 以及高利潤特種聚合物的市場需求。這是對我們的 PET 業務的補充。單體業務正在解決可持續生產的 DMT 和 MEG 服務不足的龐大市場。

Today, the market opportunity is greater than $20 billion annually. DMT and MEG are used worldwide as intermediate chemicals to supply the automotive, cosmetics, packaging and other industries. Today, there's a global shortage in DMT, and this is how we develop the business model. We've been receiving a lot of calls from chemical companies asking if we could supply them with DMT.

如今，每年的市場機會超過 200 億美元。DMT 和 MEG 在全球範圍內用作中間化學品，供應汽車、化妝品、包裝和其他行業。如今，DMT 全球短缺，這就是我們開發商業模式的方式。我們收到很多化工公司的電話，詢問我們是否可以提供 DMT。

As for Wood Mackenzie, Virgin petroleum base DMP is selling for $1,950 per metric ton and MEG is selling at $835 per metric ton for a combined price of $2,785. This is with no sustainably -- sustainability linked premiums which is for Virgin petroleum based products. In talking to potential customers who are the large petrochemical company that we feel comfortable that a 15% premium can be applied for sustainability and Loops product.

至於Wood Mackenzie，維珍石油基礎DMP 的售價為每噸1,950 美元，MEG 的售價為每噸835 美元，總計價格為2,785 美元。這與基於維珍石油的產品沒有永續發展相關的溢價。在與大型石化公司的潛在客戶交談時，我們感到 15% 的溢價可以適用於永續發展和 Loops 產品。

The DMT and MEG that are produced through Loops, the polymerization technology, our drop-in replacements to the petroleum-based DMT and MEG, which is extremely important. This means that our customers do not have to modify anything in their production facilities to replace their current supply. The Infinite Loop India facility will produce 70,000 metric tons of DMT and 23,000 tons of MEG made through loops the polymerization technology.

透過 Loops、聚合技術生產的 DMT 和 MEG，是我們對石油基 DMT 和 MEG 的直接替代品，這是極為重要的。這意味著我們的客戶無需修改其生產設施中的任何內容即可更換當前的供應。Infinite Loop 印度工廠將透過循環聚合技術生產 70,000 噸 DMT 和 23,000 噸 MEG。

The Indian market offers an abundance of low-cost waste polyester fibre that can be deep polymerized using Loops technology and turned into the DMT and MEG. Many of our customers in the textile manufacturing industry have production facilities in India and neighboring countries such as Bangladesh. So it's very close to sub to our customer supply chain.

印度市場提供大量低成本廢聚酯纖維，可以使用 Loops 技術進行深度聚合，轉化為 DMT 和 MEG。我們的許多紡織製造業客戶在印度和孟加拉等鄰國擁有生產設施。所以它非常接近我們的客戶供應鏈。

OpEx estimate for India is $165 million. Therefore, the equity commitment for Loops is under $25 million to $30 million range, which our partners at (inaudible) and a government agency are fully onboard to fund. The partnership with Ester is a 50, 50 joint venture who receives a 5% royalty fee on all revenue generated from the facility, which is estimated the licensing fee is estimated to be at $8 million per year.

印度的營運支出預計為 1.65 億美元。因此，Loops 的股權承諾在 2500 萬至 3000 萬美元範圍內，我們的合作夥伴（聽不清楚）和政府機構已全力提供資金。與 Ester 的合作關係是一家 50, 50 的合資企業，該企業收取該設施產生的所有收入的 5% 的特許權使用費，預計許可費約為每年 800 萬美元。

Loop is solely responsible for all sales and marketing of the final product, which is to be sold through the joint venture. It's all sold under Loop's brand. The expected EBITDA for the Indian facility is$70 million per year, which of Loop owns 50% and a 35% un-levered IRR. Therefore, the economics of low cost manufacturing, coupled with the monomer business model are really provide very, very attractive shareholder returns.

Loop 全權負責最終產品的所有銷售和行銷，最終產品將透過合資企業銷售。全部以 Loop 的品牌出售。印度工廠的預期 EBITDA 為每年 7,000 萬美元，其中 Loop 擁有 50% 的股份，並擁有 35% 的無槓桿 IRR。因此，低成本製造的經濟性，加上單體商業模式確實可以提供非常非常有吸引力的股東回報。

Our partners in India, Ester industries have been working with Loop for the past five years today, entire bond with the polymerized with polyester and PET into DMT and MEG. Then ship those chemicals, the DMT and MEG to Ester in India for polymerization. Examples of some of the products we've launched using this partnership with Ester is most recently our shoes with the Swiss shoe brand on shoes, Avion water bottles which are for sale in South Korea and the L'Oreal skin care products, which are on sale at all stores in the United States.

我們在印度的合作夥伴 Ester Industries 在過去的五年裡一直與 Loop 合作，將聚酯和 PET 聚合成 DMT 和 MEG。然後將這些化學品、DMT 和 MEG 運送到印度的 Ester 進行聚合。我們與 Ester 合作推出的一些產品的例子包括最近我們與瑞士鞋履品牌 on Shoes 合作的鞋子、在韓國銷售的 Avion 水瓶以及在韓國銷售的歐萊雅護膚品。

So we have a long-standing relationship with Ester, and we are fully aligned on our partnership and views for the future. This is a 50/50 joint venture and the partners are fully aligned on the execution and the strategy. As I said before, Loop is exclusively responsible for all sales of the DMT and MEG and specialty polymers such as PBT, PTT, PETG.

因此，我們與 Ester 有著長期的合作關係，我們在合作夥伴關係和對未來的看法上完全一致。這是一家 50/50 的合資企業，合作夥伴在執行和策略上完全一致。正如我之前所說，Loop 專門負責 DMT 和 MEG 以及 PBT、PTT、PETG 等特種聚合物的所有銷售。

Specialty Polymers offer a high margin business, which today is really in need of sustainability and Loop's DMT allows for sustainability to now reach these specialty polymers, which today cannot be have any type of sustainability because there's no monomers available to be used as the base building blocks. The Infinite Loop India project leverages Loop's existing engineering package has the same major equipment suppliers as the Canadian facility we have running here and there.

特種聚合物提供高利潤業務，如今確實需要永續性，而Loop 的DMT 現在可以實現這些特種聚合物的可持續性，而如今這些特種聚合物無法具有任何類型的可持續性，因為沒有單體可用作基礎建築塊。Infinite Loop 印度專案利用 Loop 現有的工程包，與我們到處運作的加拿大工廠擁有相同的主要設備供應商。

The turbine facility we've had operational for the past four years and those four years have been allowing us to secure all of the long, the major equipment that we need for the facility. So we have had four years of experience running all of these pieces of equipment and therefore very comfortable with all of our suppliers. So this project leverages our existing very mature engineering package and all of our key equipment suppliers.

我們的渦輪機設施已經運行了四年，這四年使我們能夠確保該設施所需的所有長期主要設備的安全。因此，我們擁有四年運行所有這些設備的經驗，因此與我們所有的供應商都非常滿意。因此，這個專案利用了我們現有的非常成熟的工程包和我們所有的關鍵設備供應商。

Loop and Ester have hired a global leading engineering firm to secure land for the project, which we're expecting to be in the Hyderabad area, and they will be providing all of the local engineering support for the project.

Loop 和 Ester 已聘請一家全球領先的工程公司來確保該項目的土地，我們預計該項目位於海得拉巴地區，他們將為該項目提供所有當地工程支援。

We expect to break ground on the facility by the end of this fiscal year. This is in line with this partnership is in line with Loop strategy of deploying capital to low cost manufacturing countries such as India to enhance shareholder returns. We will move to a more asset-light business model focused on licensing our technology in higher cost manufacturing countries.

我們預計該設施將在本財年末破土動工。這符合這種夥伴關係，也符合Loop將資本部署到印度等低成本製造國家以提高股東回報的策略。我們將轉向更輕資產的商業模式，重點是在成本較高的製造國家授權我們的技術。

As far as at Ulsan update, Loop and SKGC are negotiating with the Korean government for grants and subsidies for the project. We are currently also studying the possibility of putting up a monomer plant in Ulsan, the other big significant for the monomer business model is that it significantly reduces the CapEx and increases financial returns in the business -- in the monomer business model.

根據蔚山最新消息，Loop 和 SKGC 正在與韓國政府就該計畫的贈款和補貼進行談判。我們目前也正在研究在蔚山建立單體工廠的可能性，單體商業模式的另一個重要意義是，它可以顯著降低資本支出並增加業務的財務回報——在單體商業模式中。

We do not need the polymerization section. So about 40% of the CapEx is not needed because we are selling the chemicals rather than we polymerizing it into PET. So this is something that we're studying in Ulsan as well, again, this is a huge market opportunity and we're stealing a market opportunity that exists today because of this tremendous underserved market.

我們不需要聚合部分。因此，大約 40% 的資本支出是不需要的，因為我們是銷售化學品，而不是將其聚合成 PET。所以這也是我們在蔚山研究的東西，這也是一個巨大的市場機會，我們正在竊取當今存在的市場機會，因為這個巨大的服務不足的市場。

As far as India as well under the thing that's very important to stress is that Indian is a high growth opportunity and the Indian economy is the fastest-growing economy in the world, which 1.5 billion people, the population is growing. A lot of our customers are leaving China or finding a China Plus One solution and moving a lot of their manufacturing into India, especially on the textile manufacturing.

就印度而言，需要強調的是，印度是一個高成長機會，印度經濟是世界上成長最快的經濟體，有15億人口，人口還在增加。我們的許多客戶正在離開中國，或尋找「中國加一」解決方案，並將大量製造轉移到印度，特別是紡織品製造。

So all of the large clothing companies. Low cost manufacturing labor rates are significantly cheaper in India. I was reading an EY presentation of the specialty chemical markets where labor costs for operators in a chemical plant in India are 80% less than what they are in China today. So we believe Asia is going to be the main driver for demand for the next several decades, which is why the Indian project is so important for us. And also the monomer business potentially in Korea is also very exciting because of the location.

所有的大型服裝公司都是如此。印度的低成本製造業勞動力價格便宜得多。我正在閱讀安永關於特種化學品市場的介紹，其中印度一家化工廠操作員的勞動成本比目前中國低 80%。因此，我們相信亞洲將成為未來幾十年需求的主要驅動力，這就是為什麼印度項目對我們如此重要。由於地理位置的原因，韓國潛在的單體業務也非常令人興奮。

I'll switch now to the Reed financing. Over the past several months, we've been read have been working diligently on completing our joint venture partnership and are mainly nondilutive financing to fund Loop's global expansion of our technology. Reed has hired several independent firms to conduct through the due diligence of all aspects of Loops business, including technology.

我現在將轉向里德融資。在過去的幾個月裡，我們了解到我們一直在努力完成我們的合資夥伴關係，並且主要是非稀釋性融資，為 Loop 技術的全球擴張提供資金。Reed 聘請了多家獨立公司對 Loops 業務的各個方面（包括技術）進行盡職調查。

So technology due diligence, financial due diligence, legal due diligence, ESG due diligence and all of the our independent firms have concluded their due diligence and all of it was completed successfully. The joint venture with Reed is consistent with our business model to invest capital in low-cost manufacturing countries and to have a more asset-light business model built on licensing and higher cost manufacturing companies such as Europe.

所以技術盡職調查、財務盡職調查、法律盡職調查、ESG盡職調查以及我們所有的獨立公司都已經完成了盡職調查，並且全部順利完成。與勵展的合資企業符合我們的商業模式，即在低成本製造國家投資資本，並在歐洲等許可和成本較高的製造公司的基礎上建立更輕資產的商業模式。

The partnership with Reed is for Europe specific, where Reed comes with Loop as our financial partner. So any equity commitments, any funding commitments that we would have to develop our technology in Europe. It will be split 50/50 between Loop and Reed. So on the equity side, we'll be splitting with Reed, but our licensing revenue and our engineering revenue comes directly to Loop. So again, more of an asset-light business model where Loop splits on the equity side, so much less equity check, but we get the licensing revenue, which is standard at 5% of sales.

與 Reed 的合作夥伴關係專門針對歐洲，其中 Reed 與 Loop 作為我們的財務合作夥伴。因此，我們必須做出任何股權承諾、任何資金承諾來在歐洲開發我們的技術。它將在 Loop 和 Reed 之間以 50/50 分配。因此，在股權方面，我們將與 Reed 分拆，但我們的授權收入和工程收入直接歸 Loop 所有。同樣，更多的是一種輕資產商業模式，其中 Loop 在股權方面進行分割，更少的股權檢查，但我們獲得了許可收入，標準為銷售額的 5%。

On the financing side, the funding since Reed, which is largely non-dilutive, coupled with financing from our other partner, will fund 100% of the capital need for our equity commitment for India and Reed leftover funds for Loop's head office. The completion of the agreement is imminent. We had hoped to have everything signed off by the time of this call, but we are very confident in the signing and announcing the final agreements by the end of this week.

在融資方面，自 Reed 以來的資金基本上是非稀釋性的，再加上我們其他合作夥伴的融資，將為我們對印度的股權承諾和 Reed 為 Loop 總部的剩餘資金提供 100% 的資本需求。協議即將完成。我們原本希望在這次通話時簽署所有協議，但我們對在本週末簽署並宣布最終協議非常有信心。

Lastly, we had a -- this quarter we had a launch with on shoes, the Swiss shoe manufacturer, they launched a cloud, easy cyclone shoe on May 21, the upper part of the shoe is crafted with polyester fiber made from Loop's facility here in Tarbun, Canada. It's a 100% recycled fiber using our technology.

最後，本季我們與瑞士鞋類製造商 on Shoes 合作推出了一款雲易旋風鞋，鞋面採用 Loop 工廠生產的聚酯纖維製成。它是採用我們技術的 100% 再生纖維。

They're starting -- we started with waste polyester fiber, broke it down into the DMT and DNVG purified, the DMP and MEG send that over to Ester, our partners that Ester industry produced a polymer, which was then sent to On Shoes, which they used to produce the upper part of the shoes. The program at a subscription program and so as these people pay a monthly subscription fee or they have access to the shoe. When the shoe is sent back On Shoes, we'll remove the upper portion, send that over to us and we will recycle it for them and send it back to them.

他們開始——我們從廢聚酯纖維開始，將其分解成DMT和DNVG純化，DMP和MEG將其發送給Ester，我們的合作夥伴Ester工業生產了一種聚合物，然後發送給On Shoes，他們用它來生產鞋子的鞋面。該計劃是訂閱計劃，因此這些人每月支付訂閱費或可以使用這雙鞋。當鞋子被送回 On Shoes 時，我們將拆下鞋面部分，將其發送給我們，我們將為他們回收並寄回給他們。

So it shows the complete circularity for textiles and for running shoes. This is the first shoe launch by on using Loops fiber to fiber recycling technology and sets a precedent for sustainability in the foot wear and textile markets.

因此，它顯示了紡織品和跑鞋的完整循環性。這是第一款採用 Loops 纖維到纖維回收技術的鞋款，為鞋類和紡織品市場的可持續發展樹立了先例。

With that, I'll hand it over to Fady to go through the financials.

這樣，我就會把它交給 Fady 來檢查財務狀況。

Thank you, Dan, and good morning to all, and thank you for joining. Exciting times I've done a lot of business cases in my life, but I've never seen anything close to the risk return profile and how attractive the India opportunity is for us. I mean, they're excited about the opportunity set the specificity of India in terms of there favorable demographics, the growth profile, you see a lot of migration into India.

謝謝丹，大家早安，謝謝您的加入。激動人心的時刻我一生中做過很多商業案例，但我從未見過任何接近風險回報的案例以及印度機會對我們來說有多麼有吸引力。我的意思是，他們對印度的特殊性感到興奮，因為印度有有利的人口結構、成長狀況，你會看到大量移民進入印度。

So it's attracting a lot of capital. We want to be part of that. The supply-demand dynamics of the monomer business that we're undertaking the partner where we have full alignment of roles and responsibilities. There's no channel conflict it. It's built upon our respective strengths to create synergy to the joint venture.

所以它吸引了大量的資本。我們希望成為其中的一部分。我們正在與合作夥伴承擔單體業務的供需動態，我們的角色和責任完全一致。不存在通路衝突。它建立在我們各自的優勢之上，為合資企業創造協同效應。

But really a naturally as a CFO, I'm really excited about the financial metrics. We're talking about as Daniel alluded to, $70 million of EBITDA at the joint venture level for a 25 -- that's consolidated. Our share would be 50% of that for about $35 million for a $25 million equity check, which is well within our wheelhouse.

但身為財務官，我很自然地對財務指標感到非常興奮。正如 Daniel 所提到的，我們正在談論 25 家合資企業的 7000 萬美元 EBITDA（已合併）。我們的份額將是其中的 50%，價值約 3500 萬美元，用於 2500 萬美元的股權支票，這完全在我們的掌控範圍之內。

The capital intensity, something that we've been discussing more and more $165 million of capital for $160 million of revenue was almost a 1:1 ratio in terms of EBITDA, it's just over 2.3. These are very, very favorable economics. Daniel alluded to with our IRR north of 30% -- 35%. I mean, the payback on the equity we're looking at under two years.

資本密集度，我們一直在討論，1.65 億美元的資本與 1.6 億美元的收入幾乎是 1:1 的 EBITDA 比率，剛剛超過 2.3。這些都是非常非常有利的經濟效益。Daniel 提到我們的內部報酬率在 30% 到 35% 之間。我的意思是，我們正在考慮兩年內的股本回報。

So this strikes -- this takes a lot of boxes for Loop really, really excited about this. The estimate that we've done is that every plant that we build with our partner, Ester India creates on $1 of a stock price, depending on the metrics you use but let me walk you through that the validation of how we get to those numbers. We did it both from a price earnings perspective and an enterprise value perspective from a price-earnings perspective, if you use the $70 million EBITDA impute the interest expense of about, we're in our pro forma guesstimating $11 million of interest, a 5% on the CapEx of $165 million, about $8 million. That brings us to just north of $50 million from a pre-tax income, after tax at a tax rate of 25% we're at $40 million.

所以這很令人震驚——Loop 需要很多盒子，這真的非常非常興奮。我們所做的估計是，我們與合作夥伴 Ester India 合作建造的每座工廠的股價為 1 美元，具體取決於您使用的指標，但讓我向您介紹一下我們如何獲得這些數字的驗證。我們從市盈率的角度和企業價值的角度進行了計算，如果您使用 7000 萬美元的 EBITDA 估算利息費用，我們在預估中預計 1100 萬美元的利息，即 5資本支出為1.65 億美元，約合800萬美元。這使我們的稅前收入略高於 5000 萬美元，以 25% 的稅率計算稅後收入為 4000 萬美元。

Our stake, as you all know, is 50%. So that's about $20 million. And then when you add the royalty that Daniel alluded to of $8 million or $6 million after tax, we're getting into the $26 million range. And then when you factor out the financing costs that we need to for our equity raise that's about $3 million after-tax. So we're talking about a pro forma of $23 million of net income for one plant.

眾所周知，我們的股份是 50%。大約是 2000 萬美元。然後，當你加上 Daniel 提到的 800 萬美元或稅後 600 萬美元的特許權使用費時，我們就進入了 2600 萬美元的範圍。如果算上我們股權融資所需的融資成本，稅後約為 300 萬美元。因此，我們談論的是一家工廠預計淨利潤為 2,300 萬美元。

And if you use that over a dilutive number based, we're just south of 50 million shares right now. You're getting and giving effect of if we have -- for some of the securities that kind of come out there. We're looking at about $0.4 of EPS. The S&P as of today is trading just north of 21. So that's about $8 per share. So if people want to take a discount, if they think it's closer to 16, 17 as a longer-term rate within our stock price shouldn't value accretion would be $6 to $7, if they think we should trade at a premium because we're a high-growth high-tech and a lot of that comes from the royalty in itself were closer to $9, $10. So we're straddling between $7 and $10 range, our estimates about $8.

如果你用這個稀釋數字來計算的話，我們現在的股票數量就只有 5,000 萬股左右。如果我們有一些這樣的證券，你就會得到並發揮作用。我們預計每股收益約為 0.4 美元。截至今天，標準普爾指數的交易價格略高於 21 點。所以每股價格約 8 美元。因此，如果人們想要打折，如果他們認為它更接近 16、17，因為我們的股票價格內的長期利率不應該增值，則增值將是 6 至 7 美元，如果他們認為我們應該溢價交易，因為我們是一種高成長的高科技，其中很大一部分來自特許權使用費本身，接近9 美元、10 美元。因此，我們的價格介於 7 美元到 10 美元之間，我們的估計約為 8 美元。

Same thing from an enterprise value perspective, if you look at $70 million and apply the S&P multiple, which is just north of 14, you get almost $1 billion of enterprise value. Once you subtract out the debt, just north of $100 million, you get about a $900 million, our share of that 50%, about $450 million, that gives you -- and then you add the royalty that also gives you about $8 a share.

從企業價值的角度來看也是如此，如果您考慮 7000 萬美元並應用標準普爾倍數（略高於 14），您將獲得近 10 億美元的企業價值。一旦你減去債務，大約1 億美元以上，你就會得到大約9 億美元，我們佔那50% 的份額，大約4.5 億美元，這給你——然後你加上特許權使用費，這也給你每股大約8 美元。

So both valuation metrics, whether it's price earnings based or whether it's enterprise value based kind of gravitate towards about an $8 share price for every single plant that we build in India. So there's no version of this, which is one and done. We plan to build multiple plants. You can see the accretion value of this opportunity.

因此，無論是基於市盈率還是基於企業價值，這兩個估值指標都傾向於我們在印度建造的每家工廠的股價約為 8 美元。所以沒有這個版本，這是一個已經完成的版本。我們計劃建造多個工廠。您可以看到這個機會的增值價值。

In line with Daniel said, asset-light for countries that have low cost -- sorry, asset heavy for countries that have low costs and more of an asset-light model for high-cost countries where we just we've been the royalties go straight to our bottom line. So the financing, as Dan alluded to, yes, it's taking a little longer than we wanted to, but it's definitely well worth it.

根據丹尼爾的說法，對於低成本國家來說是輕資產——抱​​歉，對於低成本國家來說是重資產模式，而對於高成本國家來說則是輕資產模式，我們只是在這些國家收取了特許權使用費。因此，正如丹所提到的，融資的時間比我們想要的要長一些，但這絕對是值得的。

We are getting into the final throes and it is our priority number one in the next couple of weeks to come to finality for that. Please allow me to walk through the financial statements. If you look at our P&L, our total research and development costs were $3 million for the quarter ended February 29, there were two adjustments which affect the baseline of that one is we did have a write-down of about of exactly $817,000, and we also had some one-time project related expenses related to our project in France for $500,000.

我們正在進入最後的陣痛，在接下來的幾週內，我們的首要任務是確定這一點。請容許我瀏覽一下財務報表。如果你看一下我們的損益表，我們截至 2 月 29 日的季度的總研發成本為 300 萬美元，有兩項調整影響了該基準，即我們確實減記了約 817,000 美元，並且我們還有一些與我們在法國的項目相關的一次性項目相關費用，金額為500,000 美元。

So that's $1.3 million that are non-recurring. So the $3 million as reported would have been $1.7 million, if you exclude those two items, and that result a decrease of 23% over the prior period. So that's been a focus for us as with the industries we continue to focus on not only our R&D spend, but we want to also continue to preserve the integrity of the pipeline of innovation that's going on at Loop.

這就是 130 萬美元的非經常性費用。因此，如果排除這兩項，報告中的 300 萬美元將是 170 萬美元，結果比上一期減少了 23%。因此，這一直是我們關注的重點，就像我們繼續關注的行業一樣，我們不僅繼續關注研發支出，而且還希望繼續保持 Loop 正在進行的創新管道的完整性。

For the G&A expenses. In the last comparative quarter, we did have a one-time stock-based comp adjustment for forfeitures to the tune of $200,000. If you normalize for that on a pro forma perspective, our G&A would have been down 10%. So solid cost reductions for the quarter, as I've guided the market in the previous quarter and the quarter before that, if you look at our total expenses for the quarter, they were $5.1 million. If you back out non-cash expenses, which include the write-down of $800,000, the non-cash stock-based comp expense of a total of $300,000, and obviously depreciation, which is non-cash of $100,000-plus total project costs for Ulsan and Europe of $800,000 for the quarter.

用於一般及行政費用。在上一個比較季度，我們確實對沒收的股票進行了一次性補償調整，金額高達 20 萬美元。如果從備考角度將其正常化，我們的一般管理費用將會下降 10%。正如我在上一季和之前的季度指導市場那樣，本季的成本大幅降低，如果你看看我們本季的總支出，你會發現它們為 510 萬美元。如果您取消非現金費用，其中包括 800,000 美元的減記、總計 300,000 美元的非現金股票補償費用，以及明顯的折舊，即 100,000 美元的非現金加上項目總成本蔚山和歐洲本季度收入為800,000 美元。

Our total cash burn rate is $3.1 million for the quarter. So that averages to about $1 million per month. So well within sight of our target between $1 million and $1.2 million. We're holding our baseline as tight as we could. From a liquidity perspective at February 28t, obviously, from a statement of cash flow, we'd have $7 million in cash and we have a total of $9.5 million of liquidity.

本季我們的總現金消耗率為 310 萬美元。所以平均每月約 100 萬美元。距離我們 100 萬至 120 萬美元的目標非常遙遠。我們盡可能嚴格地保持我們的底線。從 2 月 28 日的流動性角度來看，顯然，從現金流量表來看，我們有 700 萬美元的現金，總共有 950 萬美元的流動性。

So we've got decent runway on that to make sure that it gets us until we've got the financing solved, which, as Daniel alluded to, is happening over the course of the next weeks. So we're monitoring carefully our cash balances, but we've got enough dry powder to last us towards the balance of the calendar year.

因此，我們在這方面有良好的跑道，以確保它能幫助我們解決融資問題，正如丹尼爾所提到的，這將在接下來的幾週內發生。因此，我們正在仔細監控我們的現金餘額，但我們有足夠的乾粉來維持日曆年的餘額。

That said, I continue to guide that our expenses from a cash burn rate for fiscal 2025 are going to be between $1 million and $1.2 million. Obviously, Q1 2025, maybe a little higher because we spent quite a bit on legal fees with respect to the Ester agreements and getting to finality on the Reed agreements. But after that, you'll see it revert to more of a long-term mean of $1 million to $1.2 million.

也就是說，我繼續預期 2025 財年的現金消耗率支出將在 100 萬至 120 萬美元之間。顯然，2025 年第一季可能會更高一些，因為我們在 Ester 協議和 Reed 協議的最終確定方面花費了相當多的法律費用。但在那之後，您會看到它恢復到 100 萬至 120 萬美元的長期平均值。

So with that, I'll -- that's my section, and I'll turn it back over to Dan for final concluding remarks.

因此，我將——這就是我的部分，我將把它轉回丹進行最後的總結發言。

Thank you very much, Fady. So in conclusion, I think the monomer business and the low cost manufacturing model really showcases the ability to sort of loop to be agile and really be able to work within the constraints of the market. It's a tremendous market opportunity in an underserved market. Like I said, the total combined price of DMT and MEG sold separately today is much higher than if they would be recombined into PET.

非常感謝你，法迪。所以總而言之，我認為單體業務和低成本製造模式確實展示了敏捷循環的能力，並且真正能夠在市場的限制下工作。在服務不足的市場中，這是一個巨大的市場機會。正如我所說，今天單獨出售的 DMT 和 MEG 的總價遠高於將它們重新組合成 PET 的價格。

And that's something where the mark we have to take advantage of these type of market conditions. So we're really excited about our partnership with Ester. We're very excited with our partnership with Reed, finalizing the financing and moving to the next phase of commercialization for the company.

這就是我們必須利用此類市場條件的標誌。因此，我們對與 Ester 的合作感到非常興奮。我們對與 Reed 的合作感到非常興奮，最終完成了融資並進入了公司商業化的下一個階段。

With that, I'll turn it over to questions.

說到這裡，我將把它轉為問題。

Thank you. (Operator Instructions)

謝謝。（操作員說明）

Gerard Sweeney, ROTH Capital Partners.

傑拉德‧斯威尼 (Gerard Sweeney)，羅仕資本合夥人。

Good morning, Daniel, Fady. Thanks for taking my call.

早安，丹尼爾，法迪。感謝您接聽我的電話。

Hi, Jerry.

嗨，傑瑞。

Thanks. Thanks for help. Should we go over I just wanted to go over the economics real quick on the India plans. I got most of it, but so 70,000 metric tons, DMT, could you go over how many pounds for DMT and MEG and the pricing per pound or time, I should say however you present it, if you could do that quickly.

謝謝。感謝幫助。如果我們回顧一下的話，我只想快速回顧一下印度計劃的經濟狀況。我得到了大部分，但是 70,000 公噸，DMT，您能詳細說明一下 DMT 和 MEG 的價格以及每磅或每次的定價嗎？

So today, so the -- yeah, thank you. So the model right now is 70,000 metric ton of DMP and 23,000 tons of MEG. So that's the total output of the facility. Today, according to Wood Mackenzie, the price Virgin petroleum-based DMT is selling at $1,950 per metric ton and MEG is selling at $835 per metric ton.

所以今天，所以——是的，謝謝。所以現在的模型是70,000噸DMP和23,000噸MEG。這就是該設施的總產量。據 Wood Mackenzie 稱，目前基於維珍石油的 DMT 售價為每噸 1,950 美元，MEG 售價為每噸 835 美元。

[$835] Okay, got it --

[$835] 好的，明白了--

And today (multiple speakers) today to combine that combined prices much higher than PET today.

而今天（多位發言者）今天結合起來，今天的綜合價格遠高於PET。

Yeah, got it. and you're looking at $70 million of EBITDA from (inaudible) client to plant, correct?

是的，明白了。您正在查看從（聽不清楚）客戶到工廠的 7000 萬美元 EBITDA，對嗎？

Yes, yes, correct.

是的，是的，正確。

Got it, okay. The question I have is on DMT, MEG, their commodities -- they fluctuate. Obviously, this looks very appealing, but I'm just curious -- if we could do it maybe even if you could maybe give a little background as much as you can on some of the drivers behind the pricing of these chemicals? I mean, just initially off-the-cuff, some concerns are -- if there's definitely volatilities in the volatility in this market or anything currently going on the market, that's creating it excess of pricing or higher pricing. Or is this sort of the pricing we're seeing for DMT, MEG sort of been relatively stable in a certain (inaudible) -- (multiple speakers)

明白了，好吧。我的問題是關於 DMT、MEG 以及它們的商品——它們是波動的。顯然，這看起來非常吸引人，但我只是很好奇——我們是否可以做到這一點，即使您可以盡可能多地介紹這些化學品定價背後的一些驅動因素？我的意思是，剛開始時，一些擔憂是——如果這個市場或目前市場上任何東西的波動肯定存在波動，那就會導致定價過高或更高。或者說，我們看到的 DMT、MEG 的定價在某種程度上是否相對穩定？（聽不清楚）－（多位發言者）

Yeah. So if you look at the last five (technical difficulty) pricing is very stable. This is where we are as far as MEG pricing for the past five years on the DMT side, you're slightly above the five-year average -- 5-year averages about $1,550 to $1,600. So you're slightly above that. There was a major DMT plant that was taken offline in Europe, which was damaged during an earthquake.

是的。因此，如果你看看過去五個（技術難度）定價是非常穩定的。這就是過去五年 DMT 方面 MEG 的定價，略高於五年平均水平——5 年平均價格約為 1,550 美元至 1,600 美元。所以你的水平略高於這個水平。歐洲有一家大型 DMT 工廠在地震中受損，目前已經停產。

And there's no plans to -- there's no plan right now to put that facility back online. And there was another factory that was shut down in Germany during the war -- when the war with Russia started. So it's caused a little bit of a global shortage and those have -- I've increased the price of the DMT and MEG. The DMT -- sorry, not the MEG, the DMTs slightly, but even if you just take out the five-year averages of the DMT and MEG. That coupled with the low cost manufacturing in India, still allow you to have tremendous returns.

目前還沒有計劃讓該設施重新上線。德國還有另一家工廠在戰爭期間被關閉——當與俄羅斯的戰爭開始時。因此，這導致了全球範圍內的一些短缺，我提高了 DMT 和 MEG 的價格。DMT——抱歉，不是 MEG，DMT 稍稍，但即使你只是取出 DMT 和 MEG 的五年平均值。再加上印度的低成本製造，仍可讓您獲得巨大的回報。

Got it. And the other concern I do have is CapEx pricing. Obviously, I think what you saw was the $165 million of CapEx?

知道了。我真正關心的另一個問題是資本支出定價。顯然，我認為您看到的是 1.65 億美元的資本支出？

(multiple speakers) yeah, $165 million (multiple speakers)

（多個發言者）是的，1.65 億美元（多個發言者）

Considerably lower than the Ulsan project, but obviously the Ulsan project started at a much lower number. Is there any concern that or I should rephrase that, how are we certain that CapEx pricing doesn't escalate to a much higher level with the India project as we saw with the Ulsan project?

明顯低於蔚山項目，但顯然蔚山計畫的起始價要低得多。是否有任何擔憂，或者我應該重新表達一下，我們如何確定印度項目的資本支出定價不會像我們在蔚山項目中看到的那樣升級到更高的水平？

Yes. So with the oil sand project, I guess the initial estimate was about $400 million and then the being closer to 500 -- a little bit of $500 million. So we've done engineering work. We've done all the preliminary work, all of the equipment and all of the -- like I said, all of the major equipment pieces from Loops technology.

是的。因此，對於油砂項目，我猜最初的估計約為 4 億美元，然後接近 500——大約 5 億美元。所以我們已經完成了工程工作。我們已經完成了所有的前期工作，所有的設備以及所有的設備——就像我說的，所有來自循環技術的主要設備部件。

We have all the relative pricing because of Ulsan. We have all of the relative placing that we can apply to India. Our partners at Ester have also have relative construction experience. They put up a polymer plant in 2021.

由於蔚山，我們擁有所有相對定價。我們擁有可以應用於印度的所有相對排名。我們Ester的合作夥伴也有相關的施工經驗。他們於 2021 年建立了一座聚合物工廠。

We've hired a global engineering firm to be doing all of the engineering work for us. So distillation columns, pumps, piping, all of those things which are very standard for chemical plants. There's a lot of relative data on the costing of those equipment’s and all of the proprietary equipment that we use for loose technology, which is some filtration and distillation columns.

我們聘請了一家全球工程公司為我們完成所有工程工作。因此，蒸餾塔、泵浦、管道，所有這些都是化工廠的標準配置。關於這些設備以及我們用於鬆散技術的所有專有設備（例如一些過濾和蒸餾塔）的成本核算有很多相關數據。

That's we're using pricing that we have from Ulsan -- from the Ulsan plant. So we have a lot of relative data for all of those. If you think about total cost, if you take a $500 million, which would be a total project on takeaway, 40% of it just on the polymerization. So you're bringing down your CapEx from $500 million, you bring it down to $300 million right off the bat.

我們使用的是蔚山工廠的定價。所以我們有很多所有這些的相關數據。如果你考慮總成本，如果你拿 5 億美元，這將是一個外賣的總項目，其中 40% 僅用於聚合。因此，您將資本支出從 5 億美元降低到 3 億美元。

And then if you look at labor rates like I've been studying through various reports that I've been reading, the labor rates in India versus labor rates in South Korea are dramatically different. Like I said, India's, 80% labor rates are 80% cheaper than they are in China.

然後，如果你像我透過閱讀的各種報告所研究的那樣來觀察勞動力價格，你會發現印度的勞動力價格與韓國的勞動力價格有很大的不同。就像我說的，印度80%的勞動價格比中國便宜80%。

And Korea is one of the higher cost manufacturing countries in the world. I'm so, we've done a lot of work. This is not something that we just started recently. We've been thinking about building a plant in India for many years, we have a really great partner who has experience in operation side and on relative experience on the construction site. So we're relatively -- we're very comfortable with the $165 million number at this time.

韓國是世界上製造成本較高的國家之一。我就是這樣，我們已經做了很多工作。這不是我們最近才開始的事。多年來我們一直在考慮在印度建廠，我們有一個非常好的合作夥伴，他在營運方面和施工現場都有相關經驗。因此，目前我們對 1.65 億美元的數字感到非常滿意。

Got it. On the value or making monomers the DMT, MEG., does this change the marketing strategy? I mean, previously we -- US marketing fully recycled PET, if I heard you correctly, DMT, MEG could be or pure drop-ins totally understand that there's a huge additive bonus to that --

知道了。關於DMT、MEG.的價值或製造單體，這是否會改變行銷策略？我的意思是，之前我們在美國行銷完全回收的 PET，如果我沒聽錯的話，DMT、MEG 可能是或純粹的臨時產品，完全明白這有巨大的附加好處--

Yeah.

是的。

But just does this change the marketing side if it goes into end markets that maybe are a little less -- maybe to some ESG standards. Obviously, the consumer market's very tuned to that sort of standard. But does this other markets are less. So does this change marketing or create any headwinds on that front?

但如果它進入終端市場（可能不符合某些 ESG 標準），這是否會改變行銷方面的情況。顯然，消費市場非常適應這種標準。但這其他市場則較少。那麼這是否會改變行銷或在這方面產生任何阻力？

No, no, it doesn't really change any of our marketing or any of our branding efforts. Obviously, for selling the chemicals and we're not selling the final product. There's a little bit of a difference there, but we're still branding it as Loop material. A lot of customers in our supply chain, especially like I said, the textile companies need textile to textiles.

不，不，它並沒有真正改變我們的任何行銷或品牌推廣工作。顯然，我們銷售的是化學品，而不是最終產品。那裡有一點區別，但我們仍然將其標記為 Loop 材料。我們供應鏈中有很多客戶，特別是像我說的那樣，紡織公司需要紡織品到紡織品。

So they'd want material starting from the textile weights, which is huge in India because a lot of the sewing factories and spinning factories are all in India. So we've already secured over 50% of the feedstock needed for the facility coming from sewing factories.

因此，他們需要從紡織品重量開始的材料，這在印度是巨大的，因為許多縫紉廠和紡紗廠都在印度。因此，我們已經從縫紉廠獲得了該設施所需原料的 50% 以上。

So they're cutting waste. So that supply chain is very robust in India and Bangladesh and in those countries. And so the availability of very low cost feedstock and our customers wanting the material coming from that type of feedstock is really a perfect fit and there's a lot of marketing and branding that can go around that because like you saw with on-shoes. This fiber to fiber is something that's really exciting for these brands. They really need that, and that's something that we hope -- we can offer them and that's a huge bonus for us.

所以他們正在減少浪費。因此，印度和孟加拉以及這些國家的供應鏈非常強大。因此，成本非常低的原料的可用性以及我們想要來自該類型原料的材料的客戶確實是完美的契合，並且有很多營銷和品牌可以圍繞這一點，因為就像您在鞋上看到的那樣。這種纖維對纖維的技術對於這些品牌來說確實令人興奮。他們確實需要這個，這也是我們希望的——我們可以為他們提供，這對我們來說是一個巨大的獎勵。

Got it. And then just one last question and I'll jump in line. I don't want to monopolize (inaudible) , but financing, I think you said -- I'm assuming you have Reed and have government financing. It's it sounds as though the Reed financing was coming this week, maybe next week or two are in the very near future. I'm just curious if you have one that's correct, too. What are there any major -- are there any hurdles remaining with that? Are we literally just in the last final stages?

知道了。最後一個問題我就插隊了。我不想壟斷（聽不清楚），但是融資，我想你說過──我假設你有里德和政府融資。聽起來里德融資似乎會在本周到來，也許下週或兩週就在不久的將來。我只是好奇你是否也有一個正確的。有什麼主要的——還有什麼障礙嗎？我們真的只是處於最後階段嗎？

For the last final stages of signing all of the binding agreement. There is a closing condition, and we're expecting to have the entire financing package closed within the next -- I think we said the second quarter of the fiscal year.

在簽署所有具有約束力的協議的最後階段。有一個結束條件，我們預計整個融資方案將在下一個財政年度第二季內完成。

Got it. Okay. I Appreciate it. Thank you.

知道了。好的。我很感激。謝謝。

Thanks, [Gerrad].

謝謝，[傑拉德]。

(Operator Instructions) As we currently have no further questions, I'll hand back over to Kevin O’Dowd for final remarks.

（操作員說明）由於我們目前沒有其他問題，我將把最後的發言交回給 Kevin OâDowd。

Thank you, everyone, for joining us today to discuss Loop Industries fourth quarter results. Before we conclude, I'd like to express our appreciation for your continued support and interested in Loop. If you have any questions or need any additional information, please feel free to reach out. Thank you again for your time today. We look forward to continuing our dialogue and updating you on our future developments.

感謝大家今天加入我們討論 Loop Industries 第四季業績。在結束之前，我想對您一直以來的支持和對 Loop 的興趣表示感謝。如果您有任何疑問或需要任何其他信息，請隨時與我們聯繫。再次感謝您今天抽出時間。我們期待繼續我們的對話並向您通報我們未來的發展。

Have a great day.

祝你有美好的一天。

Thank you everybody.

謝謝大家。

This concludes today's call. Thank you for joining. You may now disconnect your lines.

今天的電話會議到此結束。感謝您的加入。現在您可以斷開線路。