TORONTO, May 26, 2022
/CNW/ - Electra Battery Materials Corporation (NASDAQ: ELBM)
(TSXV: ELBM) ("Electra") today provided an update on its plans
to develop a low carbon, fully-integrated battery materials park
for the North American electric vehicle industry and announced the
filing of its financial results for the first quarter ended
March 31, 2022.
"Despite supply chain disruptions and inflationary price
pressures caused by the lingering effects of the global pandemic
and recent geopolitical developments Electra made considerable
progress in Q1, advancing the construction of our expanded cobalt
refinery," said Trent Mell, CEO of
Electra Battery Materials Corporation. "Most notably, we
received our Industrial Sewage Works permit, started construction
of the solvent extraction plant, and received approval of our
Closure Plan. Completion of these milestones paves the way for the
commissioning of our refinery expansion in Q4 2022, consistent with
our expected timelines."
Mr. Mell added, "We have sustained this momentum into Q2 with
our successful listing on NASDAQ, strengthening of our senior
leadership team, and signing an offtake agreement for nickel and
cobalt produced at our battery recycling plant starting in 2023. We
anticipate building on this progress through 2022 and beyond as
construction of the refinery is completed and we begin
production."
Electra has successfully kept the project on schedule to
commence dry commissioning in December, despite global supply chain
disruptions. Cost pressures have emerged from systemic inflation,
constrained global supply chains and the sanctions on trade with
Russia, increasing the average
cost of project inputs, such as steel, copper, nickel and freight
rates, all of which have put the original budget at risk. Labour
and contractor rates are also higher with recent 8 to 9% wage
settlements with construction trades, as well, a number of
concurrent development projects in Canada have created a very competitive market
for experienced trades. Based on trends in the market, management
believes that the US$67 million
capital budget could be exceeded by approximately 5 to 10%. The
Company's early decision to create an experienced owner's team has
helped mitigate some of these impacts and management believes the
Company is well positioned to navigate a more complex
landscape.
Q1 2022
HIGHLIGHTS
- Held cash of $51.9 million as at
March 31, 2022, a total that does not
include the remaining $6.5 million of
government investments expected to be received.
- Total incurred costs for the refinery construction project at
quarter end were $25 million.
- Net income for the period was $2.3
million or $0.08 per basic
share.
- Received Industrial Sewage Works Permit and approval for the
Refinery Closure Plan.
- Commenced construction of foundation works for a new solvent
extraction plant expected to be commissioned in December 2022.
- Drill results to the west of the Iron Creek cobalt-copper
project successfully extended mineralization by 130 metres along
strike and by 110 metres at depth. Drill results subsequent to
quarter end successfully extended mineralization by an additional
180 metres to the east of the deposit as well as down dip from the
eastern edge of the resource zone.
- Announced the launch of a battery materials park study in
partnership with the Government of Canada, the Government of Ontario, Glencore Plc and Talon Metals. The
group is collaborating on engineering, permitting, socio-economic
and cost studies associated with the construction of a nickel
sulfate plant as well as co-location by a global battery precursor
cathode active materials (PCAM) manufacturer adjacent to Electra's
cobalt refinery and recycling plant.
- Signed a battery recycling and cobalt sulphate supply agreement
with Japanese conglomerate Marubeni Corporation.
- Launched a new at-the-market equity program for the issuance of
up to $20 million in common shares
from treasury. As at May 26, 2022 the
Company has issued a total of 448,517 common shares at an average
price of $5.65 per share for gross
proceeds of $2.5 million.
Highlights Subsequent to Quarter End
- Signed a two-year offtake agreement for nickel and cobalt
produced from recycled battery material. Electra expects to
commission its recycling plant in 2023. A demonstration plant is
expected to begin operation in 2022 at a cost of $3 million using existing equipment.
- Commenced trading on Nasdaq Capital Market effective
April 27, 2022 under the ticker
symbol "ELBM" and consolidated its outstanding common shares on the
basis of one post-consolidated share for every 18 pre-consolidated
shares.
- Strengthened the management team with the appointment of
Renata Cardoso as Vice President
Sustainability and Low Carbon, Joe
Racanelli as Vice President, Investor Relations, and
Zoran Jankovic, PhD, as Process Lab
Superintendent at the Refinery.
- Strengthened the Refinery Site owner's team with the addition
of tradespeople, engineers, human resources, and training
personnel.
For complete details of the consolidated financial statements
and the associated management's discussion and analysis, please
refer to the Company's filing on SEDAR (www.sedar.com) or the
Company's website (www.ElectraBMC.com).
About Electra Battery Materials
Electra's core strategy is to produce low carbon, ethically
sourced battery materials for the North American electric vehicle
supply chain. Electra is specifically focused on creating the first
integrated battery materials park in North America, providing refined cobalt,
nickel and recycled battery materials to North American battery
precursor manufacturers. Electra also owns the advanced
exploration-stage Iron Creek cobalt-copper project in Idaho, USA.
On behalf of Electra Battery Materials Corporation
Joe Racanelli
Vice President, Investor Relations
For more information visit www.ElectraBMC.com
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Cautionary Note Regarding Forward-Looking
Statements
This news release may contain forward-looking statements and
forward-looking information (together, "forward-looking
statements") within the meaning of applicable securities laws and
the United States Private Securities Litigation Reform Act of 1995.
All statements, other than statements of historical facts, are
forward-looking statements. Generally, forward-looking statements
can be identified by the use of terminology such as "plans",
"expects', "estimates", "intends", "anticipates", "believes" or
variations of such words, or statements that certain actions,
events or results "may", "could", "would", "might", "occur" or "be
achieved". Forward-looking statements involve risks, uncertainties
and other factors that could cause actual results, performance, and
opportunities to differ materially from those implied by such
forward-looking statements. Factors that could cause actual results
to differ materially from these forward-looking statements are set
forth in the management discussion and analysis and other
disclosures of risk factors for Electra Battery Materials
Corporation, filed on SEDAR at www.sedar.com. Although Electra
Battery Materials Corporation believes that the information and
assumptions used in preparing the forward-looking statements are
reasonable, undue reliance should not be placed on these
statements, which only apply as of the date of this news release,
and no assurance can be given that such events will occur in the
disclosed times frames or at all. Except where required by
applicable law, Electra Battery Materials Corporation disclaims any
intention or obligation to update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise.
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SOURCE Electra Battery Materials Corporation