Westwater Resources, Inc., a battery-grade, natural graphite development company (“Westwater” or the “Company”), has announced its year-end 2021 results and provide a business review, including the recently announced management succession changes.
On February 9, 2022, the Company announced the retirement of Christopher M. Jones, President and Chief Executive Officer (CEO) and a member of the Board, effective February 25, 2022. Chad M. Potter, who is serving as Chief Operating Officer (COO), has been elected Westwater’s new President and CEO, and appointed to fill the Board vacancy created by Mr. Jones’ departure, effective February 26, 2022. Mr. Potter’s appointment is the result of a planned succession strategy dating back to 2021. The Board also announced that, effective February 26, 2022, Terence J. Cryan will become the Company’s Executive Chairman.
Messrs. Cryan, Jones, and Potter, along with Jeffrey L. Vigil, Westwater’s Vice President – Finance and Chief Financial Officer (CFO), will be available to discuss these changes further during the Company’s year-end conference call at 11 am EST/9 am MST on Monday, February 14, 2022. See dial-in details below.
2021 Review
During 2021, the Westwater team achieved critical milestones and achievements, notably:
- Completed the Definitive Feasibility Study (“DFS”) for Phase I of the Company’s proposed battery-grade graphite processing facility near Kellyton, Alabama (the “Coosa Plant”) – defining our process parameters and providing critical information for detailed design and construction.
- Completed our Pilot Program, resulting in 13 metric tonnes of finished product.
- Acquired two buildings adjacent to the Coosa Plant, which provides 90,000 sq ft of office, laboratory and warehouse space and avoids the need to construct similar facilities as part of plant construction.
- Entered into incentive agreements with the State of Alabama and local municipalities for the siting of the Coosa Plant.
- Signed a lease with a nominal cost for 70 acres where the Coosa Plant is sited.
- Applied for a patent on purification of graphite concentrate.
- Signed a letter of intent for the sale of 125-250 metric tonnes of product.
- After year-end, received the NPDES Permit required for site grading.
“In a very challenging global business environment, we had our most productive year, achieving meaningful milestones towards our goal to develop a battery-grade graphite manufacturing business in Alabama,” said Chris Jones, CEO of Westwater. “These accomplishments were the result of our extraordinary team advancing the Company towards the construction of our Coosa Plant which is on schedule for completion in the first half of 2023.”
“Westwater has in place a contract for the purchase of graphite flake as feedstock for the Coosa Plant until the Coosa Deposit is developed,” said Chad Potter, COO of Westwater. “In addition to the letter of intent we recently signed, Westwater has initiated discussions with several battery manufacturers, with the goal of signing multi-year supply agreements. Our marketing plan activities also include a number of automobile manufacturers who will soon begin manufacturing and marketing electric vehicles.”
“Westwater’s decision to focus on developing and producing energy materials was enhanced in February 2021, when the U.S. Government named graphite and vanadium as critical minerals that are essential to the U.S. economy and national security,” Mr. Potter continued. “With construction of the Coosa Plant and production of battery-grade graphite scheduled for 2023, plus permitting and development of the Coosa Deposit for flake graphite production planned for 2028, we are poised to become the first fully integrated U.S. domestic graphite producer.”
Westwater previously announced vanadium was discovered in addition to graphite on the Coosa Deposit, and programs have been implemented to demonstrate the possible size and value of the vanadium and the extent of the overall ore body. In 2021, we began further exploration of the Coosa Deposit to increase our knowledge of the geology, mineralization and economic potential of both the graphite and vanadium present on the deposit. This exploration will continue through the first quarter of 2022, with a technical report completed by the end of 2022.
“Our financial results for the year ended December 31, 2021, reflect increases in product development, exploration and general and administrative costs as we significantly increase our activities in executing our plans to bring the Coosa Project into commercial development,” said Jeff Vigil, CFO of Westwater.