Electra Battery Materials Corporation Q3 FY2023 earnings call

• Strengthened capital and balance sheet: Raised CAD 21.5 million in August and sought nondilutive financing up to USD 60 million for the cobalt refinery. - Cobalt refinery progress: Completed re-baseline engineering report. - Black mass trial: Extended to Q4, aiming to recover high-value metals like nickel, cobalt, lithium, with recovery rates at or superior to lab results. - Cobalt sulfate project: Solvent extraction plant and crystallizer circuit completed, though some equipment delays occurred. - Commercial relationship: Extended with LG, a 5-year contract for 19,000 tonnes of cobalt, up to 80% of production, providing steady earnings. - Partnership: With Three Fires to explore primary recycling business in Southern Ontario, focusing on supply chain extension and business plan development.

At the end of Q3 2023, Electra Battery Materials Corporation held $15.7 million in cash and marketable securities, up from $7.4 million at the end of Q2. The net loss for the period was $9.2 million, with $4.4 million due to fair value adjustments related to convertible notes. The financial statements reclassified convertible notes from current to long-term liabilities due to a waiver received post-quarter end. Cash management is a key priority, with steps taken to reduce costs, such as reducing the owner's team and general and administrative (G&A) costs.

• Seeking nondilutive financing to reach USD 60 million for refinery completion. - Optimistic about 2024 prospects, with focus on project funding and commercial advancements. - Anticipates black mass report by end of January or early February, followed by further studies and capital allocation.

• Market uncertainty and inflation impacts on project costs. - Delays in project funding, both from government and partners. - Equipment transportation issues, such as the damaged falling film evaporator during shipping.

Q: About liquidity, are long lead items prepaid and what's the holdup on government and Three Fires funding?

A: Long lead items are reflected as commitments, no new liabilities. For Three Fires, focus is on commercial pieces; for government, close to securing funding but timing out of control.

Q: When to expect black mass report and ramp-up?

A: Report expected end of January, ramp-up dependent on capital and study validation.

Q: Sales price of MHP and customer feedback?

A: Sales price was about USD 82,000, customer feedback positive with exceeded met content and low impurity levels.