Bonus Episode: Definitive Feasibility Study Recap

Coosa Conversations with Chris

Chris Jones shares positive news for investors and Westwater with the results from the Definitive Feasibility Study (DFS) for their graphite site in Alabama. In this recap, Chris outlines the significance of the results and explains what this study means for Westwater shareholders and investors.

Here’s a breakdown of the main points:
8:10
So, the definitive phase defines the parameters and the process for phase one, which is 3,700 tons a year of CSPG production, and about that same amount in addition to it as fines, purified fines. We sell both those products into the marketplace. Or different markets, of course. Purified fines can be made into purified micronized graphite for alkaline-powered cells and the like, and the CSPG goes into electric vehicles and all lithium-ion batteries.

11:05
But the phase one is interesting and unique in a lot of different ways. First of all, it puts us in the market for selling battery-grade graphite. Secondly, it estimates that it's going to produce around $20 million a year in cashflow. So, our dream for this company has been to make it sustainable in terms of cashflow to start, and then use that as a platform for growth later. Well, phase one does that. And we have a pretty conservative estimate of the capital expenditures. We're pretty sure about what the operational costs are going to be. And based on that, $20 million per year of cashflow is just nothing to be ashamed of, that's for sure. It's a darn good start on what is destined to be a far larger project.

13:54
we had also acquired two more buildings in the industrial park, and in fact, closed on those day before yesterday, about 90,000 square feet of warehouse and office space that will jumpstart our production schedule certainly by that amount. So about 60,000 feet of an open structure and open floor plan structure will be utilized for warehousing, both for finished product storage and for our parts and pieces warehouses that we'll need for spare parts. The other building is 30,000 square feet, and it will be our admin. And ultimately, in addition to that, it will house our core storage for our geologic materials, stuff we generate when we drill, and our lab, as well as a full-blown office building, training facility, and some other stuff. So, we are super excited about that.
17:14
So, what does it mean for a shareholder? It means we're doing what we said we're going to do. And we expect, then, in 17 months that we're going to be commissioning a facility that produces graphite for lithium ion business and producing cash so that our investors can enjoy the benefits of us being a cash-positive organization. I think you don't need a telescope anymore to see when this thing's going to work. I think you just stand on your tippy toes and you can see 17 months into the future.

Resources
Learn more about Westwater’s subsidiary Alabama Graphite Products on our website.
Check out our website.
Got questions? Send us a message.
Partner with us to fuel the energy of the future.