Westwater Resources Announces Update on Debt Financing and Feasibility Results for Phase II of Its Kellyton Graphite Processing Plant
Westwater Resources (NYSE: WWR) has received final investment committee approval from the lead lender for its Kellyton Graphite Processing Plant project. However, the debt financing closing has been delayed as the company works with Cantor Fitzgerald to finalize syndication.
The company has also released its Definitive Feasibility Study (DFS) for Phase II of the Kellyton plant, revealing key metrics: estimated capital costs of $453 million (including 20% contingency), pre-tax NPV of $1.4 billion (8% discount rate), total pre-tax cash flows of $6.3 billion over 35 years, pre-tax IRR of 31.8%, and annual pre-tax cash flow of $192.6 million. Phase II will add 37,500 metric tons of CSPG production capacity, bringing total plant capacity to 50,000 MT including Phase I.
Westwater Resources (NYSE: WWR) ha ricevuto l'approvazione finale del comitato investimenti dal principale finanziatore per il progetto dello stabilimento di lavorazione del grafite di Kellyton. Tuttavia, la chiusura del finanziamento debitorio è stata ritardata mentre l'azienda collabora con Cantor Fitzgerald per finalizzare la sindacazione.
L'azienda ha inoltre pubblicato il suo Studio di Fattibilità Definitivo (DFS) per la Fase II dello stabilimento di Kellyton, rivelando metriche chiave: costi capitali stimati di 453 milioni di dollari (incluso un margine di contingenza del 20%), un NPV pre-tasse di 1,4 miliardi di dollari (tasso di sconto dell'8%), flussi di cassa totali pre-tasse di 6,3 miliardi di dollari in 35 anni, un TIR pre-tasse del 31,8% e un flusso di cassa annuale pre-tasse di 192,6 milioni di dollari. La Fase II aggiungerà 37.500 tonnellate metriche di capacità di produzione di CSPG, portando la capacità totale dello stabilimento a 50.000 MT, inclusa la Fase I.
Westwater Resources (NYSE: WWR) ha recibido la aprobación final del comité de inversiones del prestamista principal para su proyecto de planta de procesamiento de grafito de Kellyton. Sin embargo, el cierre del financiamiento de la deuda se ha retrasado mientras la empresa trabaja con Cantor Fitzgerald para finalizar la sindicación.
La compañía también ha publicado su Estudio de Viabilidad Definitivo (DFS) para la Fase II de la planta de Kellyton, revelando métricas clave: costos de capital estimados en 453 millones de dólares (incluyendo un 20% de contingencia), un NPV antes de impuestos de 1.4 mil millones de dólares (tasa de descuento del 8%), flujos de efectivo totales antes de impuestos de 6.3 mil millones de dólares durante 35 años, un TIR antes de impuestos del 31.8%, y un flujo de efectivo anual antes de impuestos de 192.6 millones de dólares. La Fase II añadirá 37,500 toneladas métricas de capacidad de producción de CSPG, llevando la capacidad total de la planta a 50,000 MT, incluida la Fase I.
Westwater Resources (NYSE: WWR)는 켈리턴 흑연 가공 플랜트 프로젝트에 대해 주요 대출자의 최종 투자 위원회 승인을 받았습니다. 그러나 회사는 간터 피츠제럴드를 통해 신디케이션을 마무리하려고 작업 중이어서 부채 금융 마감이 지연되었습니다.
회사는 또한 켈리턴 공장의 2단계에 대한 확정 타당성 조사(DFS)를 발표했습니다. 여기에는 주요 지표가 포함되어 있으며: 추정 자본 비용은 4억 5천 3백만 달러(20%의 비상 비용 포함), 세전 NPV는 14억 달러(8% 할인율), 35년 동안의 총 세전 현금 흐름은 63억 달러, 세전 IRR은 31.8%, 연간 세전 현금 흐름은 1억 9천 2백 6십만 달러입니다. 2단계에서는 CSPG 생산 능력을 37,500 미터 톤 추가하여, 1단계를 포함한 총 공장 용량을 50,000 MT로 늘립니다.
Westwater Resources (NYSE: WWR) a obtenu l'approbation finale du comité d'investissement de son prêteur principal pour son projet d'usine de traitement du graphite de Kellyton. Cependant, la clôture du financement par emprunt a été retardée alors que l'entreprise collabore avec Cantor Fitzgerald pour finaliser la syndication.
L'entreprise a également publié son Étude de Faisabilité Définitive (DFS) pour la Phase II de l'usine de Kellyton, révélant des indicateurs clés : des coûts d'investissement estimés à 453 millions de dollars (y compris 20% de marge de sécurité), une VAN avant impôts de 1,4 milliard de dollars (taux d'actualisation de 8%), des flux de trésorerie totaux avant impôts de 6,3 milliards de dollars sur 35 ans, un TRI avant impôts de 31,8 % et un flux de trésorerie annuel avant impôts de 192,6 millions de dollars. La Phase II ajoutera une capacité de production CSPG de 37 500 tonnes métriques, portant la capacité totale de l'usine à 50 000 MT, y compris la Phase I.
Westwater Resources (NYSE: WWR) hat die endgültige Genehmigung des Investitionsausschusses von dem Hauptdarlehensgeber für sein Kellyton Graphit Processing Plant-Projekt erhalten. Der Abschluss der Fremdfinanzierung hat sich jedoch verzögert, während das Unternehmen mit Cantor Fitzgerald an der Finalisierung der Syndizierung arbeitet.
Das Unternehmen hat auch seine Definitive Machbarkeitsstudie (DFS) für Phase II des Kellyton-Werks veröffentlicht, die wichtige Kennzahlen offenbart: geschätzte Investitionskosten von 453 Millionen US-Dollar (inklusive 20% Puffer), ein NPV vor Steuern von 1,4 Milliarden US-Dollar (8% Diskontsatz), gesamte Nettocashflows vor Steuern von 6,3 Milliarden US-Dollar über 35 Jahre, eine vorsteuerliche IRR von 31,8% und einen jährlichen Nettocashflow vor Steuern von 192,6 Millionen US-Dollar. Phase II wird 37.500 metrische Tonnen Produktionskapazität von CSPG hinzufügen, wodurch die Gesamtkapazität des Werks auf 50.000 MT, einschließlich Phase I, steigt.
- Lead lender approval secured for Kellyton Plant financing
- Phase II DFS shows strong financials with $1.4B pre-tax NPV
- High projected IRR of 31.8%
- Substantial annual pre-tax cash flow projection of $192.6M
- Existing offtake agreements already secure portion of Phase II capacity
- Debt financing closing delayed
- High capital cost requirement of $453M for Phase II
- Final loan terms and syndication still pending completion
Insights
The investment committee approval from a global financial institution marks a important milestone for Westwater Resources' Kellyton Graphite Processing Plant, though the extended due diligence process reflects both the project's complexity and its pioneering nature in the U.S. market. The involvement of Cantor Fitzgerald in syndication adds credibility to the financing process.
The Phase II Definitive Feasibility Study reveals robust economics with a pre-tax NPV of
Several key factors enhance the project's investment thesis:
- The 35-year operating life with annual pre-tax cash flow of
$192.6 million provides substantial long-term visibility - Existing offtake agreements partially secure Phase II capacity, reducing market risk
- The total Kellyton capacity of 50,000MT positions WWR as a significant player in the domestic battery-grade graphite market
- The potential integration with the Coosa Graphite Deposit (NPV
$229 million ) could create additional synergies
The delayed debt financing closure, while causing near-term uncertainty, reflects thorough due diligence appropriate for a first-of-its-kind facility in the U.S. This strategic positioning aligns with the critical minerals initiatives and domestic supply chain development for battery materials, potentially qualifying for various government incentives and support programs.
“Given the ‘first of its kind’ nature of the Kellyton Plant, the due diligence process undertaken by the lead lender has been significant, and we are pleased to have approval from the lead lender,” said Steve Cates, Westwater’s SVP-Finance and CFO. “We are focused on getting the other interested lenders through their diligence and approval process and will provide further updates on timing once we have a better line of sight to closing.”
Westwater notes the closing of the debt transaction is also subject to customary agreement on final terms, completion of the syndication, final due diligence, and loan conditions.
Kellyton Graphite Processing Plant - Phase II Definitive Feasibility Study
The Company is also announcing the results of its completed Definitive Feasibility Study (“DFS”) for Phase II and reminds investors that a portion of the Phase II capacity is already committed via the previously announced offtake agreements.
The estimated Phase II amounts below exclude contribution from Phase I of the Kellyton Graphite Processing Plant.
-
Estimated capital costs for Phase II is
$453 million 20% contingency. -
Estimated pre-tax NPV of
$1.4 billion 8% discount rate). -
Total estimated cumulative pre-tax cash flows of
$6.3 billion -
Estimated pre-tax IRR of approximately
31.8% . -
Estimated annual pre-tax, cash flow of
$192.6 million - Planned annual production of CSPG to 37,500 metric tons (Total Kellyton capacity projected as 50,000 MT including Phase I and II).
Note the above amounts do not include any potential cost savings or synergies from the Company’s Coosa Graphite Deposit. As previously disclosed, the Coosa Graphite Deposit Initial Assessment has a stand-alone estimated pre-tax NPV
About Westwater Resources, Inc.
Westwater Resources, Inc. (NYSE American: WWR), an energy technology company, is focused on developing battery-grade natural graphite. The Company’s primary project is the Kellyton Graphite Processing Plant that is under construction in east-central
Cautionary Statement Regarding Forward-Looking Statements
This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “working to finalize,” “estimated timing,” “due diligence,” “line of sight,” “estimated,” “planned,” “projected,” “potential,” “update” or “further updates,” and other similar words or phrases. Forward looking statements include, among other things, statements concerning: off-take agreements with customers; Westwater’s future sales of CSPG products to customers, including the amounts, timing, and types of products included within those sales; possible off-take agreements with other customers; potential debt financing arrangements, including due diligence, the amount and type of debt, its syndication, and the schedule for closing; the anticipated annual production from Phase I and Phase II of Kellyton Graphite Plan; the construction and operation of the Kellyton Graphite Plant and its qualification line; the Company’s Coosa Graphite Deposit; potential synergies or cost savings attendant to the Kellyton Plant and the Coosa Deposit; and the costs, schedules, production and economic projections associated with them. The Company cautions that there are factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of the Company; accordingly, there can be no assurance that such suggested results will be realized. Those uncertainties and other factors are discussed in Westwater’s Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent securities filings, and they could cause actual results to differ materially from management expectations.
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Westwater Resources, Inc.
Email: Info@WestwaterResources.net
Investor Relations
Email: Investorrelations@westwaterresources.net
Source: Westwater Resources, Inc.
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