Q2 2026 Westwater Resources Inc Earnings Call Transcript
Key Points
- EXIM approved a $25 million loan under the Make More in America initiative, providing non-dilutive capital to advance the Kellyton Graphite Plant.
- The company has a significant first-mover advantage with approximately $130 million already invested in Phase I of Kellyton, positioning it as the most advanced graphite processing plant in North America.
- The qualification line has produced over 1 metric ton of CSPG samples, supporting customer evaluations and reducing scale-up risks, with strong relationships with major customers like SK On and Stellantis.
- Coosa received FAST-41 designation, which improves the predictability and transparency of the federal permitting process, with an estimated completion date of June 2027.
- The company is pursuing multiple additional government funding pathways, with three other initiatives ongoing, and expects to secure lower-cost capital compared to private market rates.
- R&D efforts are focused on developing lower-swelling natural graphite for the energy storage market, potentially expanding market opportunities beyond EVs.
- The company reported a net loss of $4.3 million in Q2 2026, an increase from $3.9 million in the same period last year, due to higher permitting, stock-based compensation, and product development costs.
- Phase I of Kellyton still requires approximately $115 million in additional capital, and the EXIM loan covers only a fraction of this, leaving significant funding uncertainty.
- Graphite flake prices remain at historic lows, around $500-$600 per ton, which could impact the economics of the Coosa mine when it comes online.
- The EXIM loan is subject to definitive documentation and customary closing conditions, and proceeds will be drawn over time, potentially delaying full access to funds.
- Coosa is not expected to be operational until late 2028 or early 2029, meaning the company will rely on purchased graphite at low prices in the interim.
- Customer offtake agreements with SK On and Stellantis are currently being renegotiated, introducing uncertainty in future revenue streams.
Hello, everyone. Thank you for joining us and welcome to West Water Resources Inc. Second Quarter 2026.
(Operator Instructions) I will now hand the conference over to Steve Cates, Chief Financial Officer. Steve, please go ahead.
Thank you, operator, and good morning, everyone. Thank you for joining us today for Westwater Resources' second quarter 2026 business update. Our Form 10-Q was filed earlier this week and is available in the Investors section of our website at westwaterresources.com. Joining me today on the call are Terence Cryan, our Executive Chairman, and Frank Bakker, our President and Chief Executive Officer. Both will be available to answer questions following our prepared remarks.
As a reminder, today's discussion will include forward-looking statements, including but not limited to, future events and expectations, including projected demand for graphite products, expected timelines and costs related to the Kellyton
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