Westwater Resources announces first quarter business updates
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Estimated costs for Kellyton graphite plant (Phase I) remain at $245 million
Special to the News
Westwater Resources Inc., an energy technology and battery-grade natural graphite development company, is pleased to announce its results for the first quarter ended March 31, and to provide business and financial updates.
2025 First Quarter Business Highlights:
- Expected Phase I construction costs at the Kellyton Graphite Plant remain $245 million.
- Shipped a customer sample of more than 800 kg produced on the qualification line at the Kellyton Graphite Plant.
- Increased the technical readiness of the Kellyton Graphite Plant.
“Despite tariffs and an inflationary environment, we still expect the overall construction cost of Phase I to remain at $245 million, which includes a significant unutilized contingency,” said Frank Bakker, Westwater’s president and CEO. “This confidence reflects in part that 85% of the Phase I equipment has already been delivered.”
Kellyton Graphite Plant
Total expected construction costs for Phase I of the Kellyton Graphite Plant remain at $245 million.
During the first quarter of 2025, construction activities at the Kellyton Graphite Plant included the receipt of additional long-lead equipment components and the continued installation of equipment and structural steel.
As of the end of the first quarter of 2025, Westwater has received approximately 85% of the Phase I equipment, installed all micronization (sizing) and spheroidization (shaping) mills in the SG building and completed the structural steel work.
During the quarter ended March 31, Westwater operated its qualification line at the Kellyton Graphite Plant and produced a CSPG sample more than 800 kg for one of its customers to conduct its pre-production cell trials and testing. Samples produced on the qualification line are representative of CSPG mass production.
The company expects that the operation of the qualification line will allow Kellyton to supply customers with bulk samples of CSPG in 1 to 10 mt batches while Westwater completes the construction of Phase I of the Kellyton Graphite Plant. The line will also be used to train Westwater’s operations team, which the company expects will expedite the commissioning and startup of the Kellyton Graphite Plant.
Debt Financing Update
As previously announced, the company is working to complete the syndication of a secured debt facility for approximately $150 million to finance the completion of construction of Phase I of the Kellyton Graphite Plant.
During 2024, Westwater executed a term sheet and received investment committee approval from the lead lender (a global financial institution), and since then the company has been working with its investment banker to complete the syndication of the loan.
Beginning in February, tariffs announced by the U.S. federal government, EU, Canada, Mexico, and China have created concerns regarding domestic EV adoption rates and general market uncertainty in the capital markets. Recent protests at the location of the company’s feedstock supplier have also impacted the syndication process.
While Westwater’s feedstock supplier has announced resolution of the protests and expects to be back in operations in the near term, Westwater is at an advanced stage in securing a backup feedstock supplier.
During the first quarter, Westwater continued the process of syndicating the loan, which included advancing loan documentation, advancing the technical readiness level of Phase I, updating technical due diligence using an independent third-party engineering firm, responding to diligence requests from multiple lenders interested in joining the syndication, hosting interested lenders at the Kellyton Graphite Plant site in Alabama, and advancing the identification and selection of a backup feedstock supplier.
No assurance can be given that the company will ultimately enter into the secured debt facility.
In April, Westwater received a letter of interest from Export-Import Bank of the United States for its Kellyton Graphite Plant, under the “Make More in America” initiative and the “China and Transformational Exports Program.”
The letter of interest is separate from the Phase I debt syndication process discussed above and could be an additional source of funding. The progression from a letter of interest to a loan commitment from EXIM requires a formal application and for EXIM to complete due diligence, underwriting and finalization of terms and conditions.
Management remains focused on completing the debt facility and will continue to update investors as appropriate.
