Executive Summary

Announced optimization of Phase I at the Kellyton graphite processing plant, more than doubling total annual throughput to 16,000 metric tons and CSPG output to 7,500 MTPA; Phase I pre-tax NPV increased to $417M and IRR to 24.7% while total Phase I capex rose to $271M .
Signed a non-binding, non-exclusive indicative term sheet for $150M of private debt to fund the remaining Phase I capex; targeting close in Q2 2023 .
Entered an agreement with a Tier 1 EV battery manufacturer to qualify Kellyton CSPG for use as a high-performance anode, with potential sale of all Kellyton anode material subject to further terms; joint announcement expected later in March 2023 .
Cash and equivalents were $75.2M with no debt at FY-end 2022; working capital $51.0M; construction spend to date ~$76.4M (including $55.3M cash) .
Testing and commissioning now expected in late 2023, first production in H1 2024; Phase I optimization completion targeted for H2 2024—key catalysts include customer agreement finalization, debt close, and commissioning progress .

What Went Well and What Went Wrong

What Went Well

Significant improvements to project economics: Phase I NPV raised to $417M, IRR to 24.7%; Phase II pre-feasibility indicates CSPG output of ~40,500 MTPA, combined NPV ~$2.2B and IRR ~36.3% .
Customer engagement strengthened: Agreement with a Tier 1 EV battery maker to qualify CSPG, with potential to sell all Kellyton anode material, and strong ongoing sample requests; “Interest from potential customers is strong” .
Operational excellence and safety: Zero recordable safety incidents through construction; major building progress and long-lead equipment arriving on site .

What Went Wrong

Capex increased: Phase I capex guide raised from $202M to $271M, driven mainly by optimization and longer duration to reach full capacity; management acknowledged inflation and schedule impacts as contributing factors .
Commissioning timing shifted later: From mid-2023/2H 2023 towards late 2023 commissioning; first production now guided for H1 2024 .
Arbitration outcome disappointment: Final Turkey arbitration decision awarded $1.3M; management stated the decision is binding/non-appealable and expressed disappointment in the amount .

Financial Results

Quarterly and Annual Summary

Metric	Q2 2022	Q3 2022	Q4 2022
Net Loss ($USD Millions)	$3.2	$3.5	n/a (not disclosed in Q4 materials)
Diluted EPS ($USD)	$(0.07)	$(0.07)	n/a (not disclosed in Q4 materials)
Cash and Equivalents ($USD Millions)	$109	$100	$75.2
Working Capital ($USD Millions)	$103	n/a	$51.0

Notes: Q4 2022 press release provided annual results but did not disclose quarter-specific net loss/EPS; annual net loss was $11.1M and EPS $(0.25) .

Operating and Project KPIs

KPI	Q2 2022	Q3 2022	Q4 2022
Phase I Total Annual Throughput (All Products, MTPA)	7,500	7,500	16,000
Phase I CSPG Output (MTPA)	n/a	n/a	7,500
Phase I Capex Estimate ($USD Millions)	$202	$202	$271
Phase I Spend-to-Date (Cumulative) ($USD Millions)	$30.0	$50.5	$76.4 (incl. $55.3 cash)
Debt Indicative Term Sheet ($USD Millions)	n/a	n/a	$150 (target close Q2 2023)

Wall Street Consensus vs Actual (Q4 2022)

Metric	Consensus	Actual
Revenue ($USD)	Unavailable via S&P Global	Not disclosed in Q4 materials
Primary EPS ($USD)	Unavailable via S&P Global	Not disclosed in Q4 materials

S&P Global consensus estimates data were unavailable due to data limitations at the time of retrieval; as such, estimate comparisons could not be completed.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Phase I Capex	Project	~$202M	~$271M	Raised
Phase I Throughput (All Products)	Steady-state	7,500 MTPA	16,000 MTPA	Raised
Phase I CSPG Output	Steady-state	Split within 7,500 total (CSPG + fines)	7,500 MTPA CSPG	Raised clarity and CSPG emphasis
Commissioning Start	Timeline	Mid-2023; commissioning into 2H 2023	Late 2023	Pushed later
First Production	Timeline	Not previously specified	H1 2024	New explicit timing
Phase I Optimization Completion	Timeline	n/a	H2 2024	New
Financing	Q2 2023	Seeking additional capital	$150M private debt term sheet, targeting Q2 close	Progressed
Phase II Capacity (CSPG)	Steady-state	n/a	~40,500 MTPA CSPG	New

Earnings Call Themes & Trends

Topic	Previous Mentions (Q2 2022)	Previous Mentions (Q3 2022)	Current Period (Q4 2022)	Trend
Customer engagement and LOIs	LOI with global consumer battery maker; broad pilot samples; goal to pre-sell output	27 potential customers evaluating; 4 LOIs; continued pilot sampling	Agreement with Tier 1 EV battery OEM to qualify CSPG; potential full offtake; joint announcement pending	Strengthening
IRA/domestic content tailwinds	Pending legislation; expected to benefit domestic producers; Made-in-USA content view	IRA passed; domestic content and 10% tax credit highlighted; interest intensified	Management reiterates domestic advantage; positioning benefits	Positive structural tailwind
Construction progress & safety	Air permit received; underground utilities/foundations; no recordable incidents	Earthwork completed; long-lead equipment arriving; buildings progressing; zero incidents	Two major buildings near complete; equipment arriving; zero incidents	Steady execution
Financing strategy	$109M cash; exploring lowest-cost capital; ATM inactive since early April	$100M cash; seeking debt/other funding; rising rates headwind	$75.2M cash; $150M debt term sheet signed, targeting Q2 close	Progress toward closure
Project economics	DFS Phase I: ~15% IRR at 8% discount; 7,500 MTPA total throughput	Reaffirmation of DFS assumptions and supply/demand backdrop	Optimization boosts Phase I IRR to 24.7%, NPV to $417M; Phase II at 36.3% IRR, $2.2B NPV	Materially improved
Turkey arbitration	Awaiting decision	Awaiting decision	Binding decision awarded $1.3M; disappointment in amount	Resolved; modest outcome

Management Commentary

“We now expect to double our throughput capacity in Phase I to approximately 16,000 metric tons per annum, more than doubling our estimated CSPG production to 7,500 metric tons per year.”
“More than tripling the expected pre-tax NPV to approximately $417 million… and increasing the Phase I estimated IRR… from 15.0% to 24.7%.”
“We have signed a non-binding, non-exclusive indicative term sheet for $150 million of private debt… targeting to close… in the second quarter of this year.”
“Agreement with a Tier 1 battery manufacturer… [potential] sale of potentially all graphite anode material from the Kellyton Graphite Processing Plant.”
“Westwater finished the year with a cash balance of $75.2 million and no debt.”
“Since the beginning of construction… we have had zero recordable safety incidents.”

Q&A Highlights

Optimization drivers and scope: Demand and improved IRR from ~15% to ~25%; optimization focused on rerouting process flows, removing bottlenecks, and adding some equipment .
Capex increase attribution: Mainly due to optimization and longer ramp duration; schedule remains consistent with prior call, commissioning end-2023 .
Capacity and modular expansion: Phase II designed modularly; potential to expand within footprint; target total capacity 40,500 MTPA CSPG .
Ramp timeline clarity: Commissioning end-2023; initial production H1 2024; ramp to full capacity over 2024 .
Financing term sheet specifics: Indicative terms include coupon/repayment, subject to final negotiation; lender could be single or multiple parties .
Turkey arbitration: Binding, non-appealable $1.3M award; company disappointed in amount .
Product mix focus: Priority on CSPG due to higher margins; purified fines optional based on economics .

Estimates Context

S&P Global consensus estimates for Q4 2022 revenue and EPS were unavailable at time of retrieval; as a result, we cannot quantify beats/misses versus Street. We note WWR did not disclose Q4-specific revenue/EPS figures in the press release or call, and the company remains pre-revenue as it builds the Kellyton plant .

Key Takeaways for Investors

Optimization materially improves Phase I economics and doubles output, tightening the path to scale in a favorable domestic policy environment; capacity uplift offsets higher capex with stronger returns .
Customer de-risking underway: Tier 1 EV battery agreement to qualify CSPG, with potential full offtake, is a pivotal commercial step; watch for the joint announcement and details on volumes/pricing .
Financing progress reduces execution risk: $150M private debt term sheet targeting Q2 close would fund remaining Phase I capex—closing and terms are key near-term catalysts .
Commissioning pushed to late 2023 and first production to H1 2024—timeline clarity and ramp execution will drive sentiment; monitor equipment installation and building completion milestones .
Liquidity remains adequate but declining as construction progresses—cash $75.2M, working capital $51.0M at FY-end; funding close will be important to avoid equity dilution in volatile markets .
Arbitration outcome removes an overhang but provides limited capital ($1.3M); management’s disappointment suggests no material change to funding needs or plan .
Medium-term thesis: Domestic CSPG supply with IRA tailwinds, scalable modular expansion to Phase II, and customer offtake momentum position WWR to capture rising anode demand; execution on commissioning, qualification, and financing are the gating items .

WESTWATER RESOURCES, INC. (WWR)·Q4 2022 Earnings Summary