On Tuesday, 5E Advanced Materials (NASDAQ:FEAM) discussed third-quarter financial results during its earnings call. The full transcript is provided below.

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View the webcast at https://www.webcaster5.com/Webcast/Page/3053/54001

Summary

5E Advanced Materials discussed its potential revenue increase through contracts for boric acid and metaboric acid, with a focus on higher value product pathways.

The company is pursuing a provisional patent to protect its intellectual property and is advancing commercial discussions for its new boric acid products.

5E Advanced Materials is conducting a ferroboron product trial, aiming to support U.S. specialty steel and magnet supply chains, which are crucial for sectors like electric motors and wind turbines.

The company completed a successful $36 million public equity offering to bolster its balance sheet and support the Fort Katy Project.

5E Advanced Materials is progressing on financing needs with the Export-Import Bank of the United States and focusing on converting customer interest into commercial agreements.

The company aims to expand its market presence in Asia and capitalize on the tightening boric acid supply, reinforcing its strategy of becoming a mine-to-market supplier.

Full Transcript

OPERATOR

56.3% B2O3 and boron oxide is approximately 98% B2O3. Typically, boron oxide is selling for three to four times the price of boric acid. So for example, if boric acid is sold for $1,000 per ton and boron oxide is sold for $3,000 per ton, the boric acid is 56.3% B2O3 and boron oxide is 98% B2O3. There is a stoichiometric price for an intermediary product with 80% B2O3 where we believe we can achieve a higher price point somewhere in between. Hypothetically speaking, A contract for 10,000 tons of boric acid with a fixed price of $1,000 per ton would potentially yield $10 million in future annual revenue. A 10,000 ton contract for metaboric acid could yield an equivalent stoichiometric price relative to boric acid of 1,750 per ton or a contract yielding approximately 17.5 million in future revenue. There is also a logistical advantage whereby the cost to ship 10,000 tons is the same for both boric acid and metaboric acid where the metaboric acid ultimately drives the same shipping costs as boric acid, yet is a much more valuable contract. This accomplishment solidifies the next step in becoming the US's only domestically owned, vertically integrated producer of boron and high value advanced boric acid products from mine to end products Given this technological advancement, we filed a provisional patent application to protect the company's intellectual property and enable additional commercialization pathways. Thank you. At this time we'll be conducting a question and answer session. If you would like to ask a question, please press Star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press Star two if you would like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. And once again, that will be Star one on your phone at this time if you wish to ask a question. Okay and there were no questions currently from the lines. I will now hand the call back to Paul Weibel.

Paul Weibel

Thank you to everyone for joining today. We look forward to keeping you updated as the next milestones come in. Advancing through additional customer offtakes, engineering project financing and Phase one construction readiness. Thank you and have a great day.

OPERATOR

Thank you. This does conclude today's conference. You may disconnect your lines at this time. Thank you for your participation.

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