Lightbridge reports progress in nuclear fuel development By Investing.com

© Reuters.

Lightbridge Company (NASDAQ: LTBR), a nuclear gasoline expertise firm, offered an replace on its enterprise developments and monetary outcomes throughout its fiscal yr 2023 earnings name.

The corporate reported progress in its nuclear gasoline expertise, with its Lightbridge Gasoline reaching Know-how Readiness Stage (TRL) 4 to five, indicating profitable laboratory validation and preparations for in-reactor testing.

Regardless of a web lack of $7.9 million for the yr, the corporate has a powerful monetary place with $28.3 million in working capital and is optimistic in regards to the growing international demand for nuclear energy.

Key Takeaways

Lightbridge Gasoline has achieved TRL 4 to five, signaling readiness for in-reactor testing.Partnerships with Centrus Vitality (NYSE:) and the Pitesti Nuclear Analysis Institute have been established.The corporate plans to increase its gasoline growth workforce and conduct an engineering research for CANDU reactors.International nuclear energy demand is on the rise, doubtlessly growing the marketplace for Lightbridge Gasoline.Financially, Lightbridge has a working capital of $28.3 million and complete belongings of $29.4 million.The corporate reported a web lack of $7.9 million for 2023 however expects authorities funding and strategic alliances to help future R&D.

Firm Outlook

Lightbridge anticipates elevated demand for nuclear energy and superior nuclear gasoline.The corporate plans to leverage international traits in direction of small modular reactors and nuclear newbuilds.Authorities funding and new strategic alliances are anticipated to contribute to future monetary stability.

Bearish Highlights

Lightbridge Gasoline reported a web lack of $7.9 million in 2023.R&D bills elevated by $1.2 million as a result of gasoline growth actions.Different working revenue dropped to zero with the completion of a challenge.

Bullish Highlights

costs are approaching file highs, helpful for the nuclear business.The corporate sees potential progress in market measurement as a result of reactor license extensions, newbuilds, and restarts.

Misses

Internet loss elevated barely from $7.5 million within the earlier yr to $7.9 million in 2023.Whole G&A bills decreased as a result of decrease worker compensation and advantages.

Q&A Highlights

Lightbridge mentioned the potential for nuclear growth to extend their market measurement.The corporate emphasised its robust working capital place to help gasoline growth expenditures.Curiosity was expressed within the firm’s methods for capitalizing on the rising nuclear energy development.

InvestingPro Insights

Lightbridge Company (NASDAQ: LTBR) has been navigating by way of a difficult monetary interval as evidenced by the latest information. The corporate’s market capitalization stands at $36.68 million, reflecting its place available in the market. Whereas the online lack of $7.9 million reported for the fiscal yr 2023 is important, it’s value noting that Lightbridge holds additional cash than debt, which is a constructive signal for the corporate’s liquidity and monetary well being.

InvestingPro Suggestions point out that Lightbridge’s liquid belongings exceed its short-term obligations, demonstrating the corporate’s capacity to fulfill its short-term monetary commitments. Nonetheless, the corporate’s weak gross revenue margins and the truth that it has not been worthwhile over the past twelve months stay areas of concern. Moreover, Lightbridge doesn’t pay a dividend to shareholders, which may very well be an element for buyers searching for income-generating investments.

Key InvestingPro Information metrics for Lightbridge embrace:

A Value to Earnings (P/E) Ratio of -4.34, indicating that the corporate shouldn’t be at present producing income relative to its share worth.A Value to E book (P/B) Ratio of 1.27 as of the final twelve months ending This fall 2023, suggesting that the inventory is buying and selling at a degree barely above its e book worth.A adverse Return on Belongings (ROA) of -26.87% for a similar interval, highlighting challenges in producing earnings from its asset base.

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Full transcript – Lightbridge Corp (LTBR) This fall 2023:

Operator: Thanks for standing by, and welcome to the Lightbridge Company Enterprise Replace and Fiscal Yr 2023 Convention Name. Please word that at present’s name is being recorded. It’s now my pleasure to introduce Matthew Abenante, Director of Investor Relations for Lightbridge Company.

Matthew Abenante: Thanks, Abigail, and because of all of you for becoming a member of us at present. The corporate’s earnings press launch was distributed yesterday and will be considered on the Investor Relations web page of the Lightbridge web site at www.ltbridge.com. Becoming a member of us on the decision at present is Seth Grae, Chief Govt Officer; together with Andrey Mushakov, Govt Vice President for Nuclear Operations; Scott Holcombe, Vice President of Engineering; Larry Goldman, Chief Monetary Officer; and Sherrie Holloway, Controller. I wish to remind our listeners that any statements on this name that aren’t historic info are forward-looking statements. As we speak’s presentation consists of forward-looking statements in regards to the firm’s aggressive place and product and repair choices. Throughout at present’s name, phrases akin to count on, anticipate, imagine and intend might be utilized in our dialogue of targets or occasions sooner or later. This presentation is predicated on present expectations and contain sure dangers and uncertainties that will trigger precise outcomes to vary considerably from such estimates. These and different dangers are set forth in additional element in Lightbridge’s filings with the Securities and Trade Fee. Lightbridge doesn’t assume any obligation to replace or revise any such forward-looking statements, whether or not on account of new developments or in any other case. And with that, I wish to flip the decision over to our first speaker, Seth Grae, Chief Govt Officer of Lightbridge. Good morning, Seth.

Seth Grae: Thanks, Matt, and thanks all for becoming a member of us to debate Lightbridge’s 2023 outcomes. I’m happy with the momentum constructing inside the nuclear sector and the pivotal position Lightbridge is poised to play on this transformative interval. Our developments in gasoline expertise, mixed with a rising community of strategic partnerships place us to handle the challenges and alternatives introduced by the rising international mandates to significantly increase nuclear capability. In 2023, Lightbridge achieved a number of key milestones and made vital developments in our ongoing gasoline growth efforts. Earlier within the yr, we strengthened our management workforce by welcoming Sherrie Holloway and Dr. Scott Holcombe to our workforce. Mr. Goodman, a acknowledged nationwide safety knowledgeable, joined Lightbridge as an unbiased director, bringing invaluable insights into the intersection of vitality and nationwide safety. As our new Vice President of Engineering, Dr. Holcombe brings in depth experience in nuclear gasoline and supplies growth and administration of interdisciplinary groups of engineers and material consultants, additional bolstering our nuclear gasoline expertise management. In December, we introduced an settlement with Centrus Vitality to conduct a front-end engineering and design research for a Lightbridge pilot gasoline fabrication facility in Piketon, Ohio. Centrus at present hosts a U.S.-based manufacturing facility for high-assay low-enriched uranium or HALO, partnering with the U.S. Division of Vitality, DOE, on the positioning. The important thing goal of the FEED research is to find out the scope of labor, value and schedule estimates and determine key danger elements for establishing a Lightbridge Pilot Gasoline Fab facility. The outcomes of this research will type the premise for a call on the way in which for establishing the Lightbridge Pilot Gasoline Fab facility for manufacture of full size gasoline rods for demonstrating and licensing Lightbridge Gasoline in business reactors. We additionally entered into an settlement with the Pitesti Nuclear Analysis Institute, often known as RATEN ICN, primarily based in Romania, to evaluate the compatibility of Lightbridge Gasoline to be used in CANDU reactors. This research will determine any essential parameters for additional analysis and design. The findings will information future financial evaluations and help navigating potential regulatory licensing associated points. If feasibility of utilizing Lightbridge Gasoline in CANDU reactors is confirmed, we imagine this kind of reactor might provide a chance for quicker time to market as a result of distinctive design and working circumstances of CANDU reactors. Final summer season, we introduced a analysis research led by Texas A&M College and together with Lightbridge, NuScale Energy and Structural Integrity Associates as a part of the DOE Nuclear Vitality College Program R&D awards. This challenge focuses on thermal hydraulic modeling and testing which goals to extend the understanding of the general efficiency of Lightbridge Gasoline underneath simulated regular and off regular circumstances in NuScale’s SMR. This follows a equally structured research with MIT introduced in 2022 that focuses on Neutronics modeling and security analysis of Lightbridge Gasoline within the NuScale SMR. In an effort to higher talk our gasoline growth progress to business, buyers and different key stakeholders, Lightbridge is adopting the expertise readiness degree or TRL system. We’re utilizing the TRL framework to plan our growth in a logical and environment friendly means. The TRL system was initially developed by NASA and is well known throughout technical industries. The group for financial cooperation and growth, the OECD features a nuclear vitality company, which gives a standardized TRL framework for assessing and speaking the maturity of nuclear gasoline expertise. As with NASA’s TRLs, this framework encompasses a scale from 1 to 9 with TRL 1 representing the preliminary idea or theoretical stage and TRL 9 denoting a expertise that has been confirmed in its operational atmosphere. Using the TRL system permits Lightbridge to map the event of our nuclear gasoline expertise in opposition to a transparent standardized metric, enabling stakeholders to gauge progress in a structured and clear method. At present, we imagine Lightbridge Gasoline is positioned at TRL 4 to five, indicating a big section in our growth course of. At this stage, Lightbridge gasoline has moved past TRL 1 to three theoretical analysis and entered into the realm of validation in a laboratory atmosphere or TRL 4 and preparations for validation in consultant working circumstances or TRL 5. This signifies that the core ideas underlying Lightbridge Gasoline have been efficiently demonstrated by way of numerous pc modeling analyses and preliminary proof-of-concept experiments. We count on our ongoing challenge at INL will generate in-reactor information to additional validate thermophysical properties of our uranium-zirconium alloy in coupon samples, which helps late phases of TRL 4. As the subsequent step, we plan to conduct a radiation testing of rodlets with our uranium-zirconium alloy to confirm the expertise’s efficiency underneath circumstances that can intently simulate operational eventualities. This work will help TRL 5. This can signify a pivotal transition from conceptual designs and laboratory checks to in-reactor testing in consultant and precise circumstances the gasoline will expertise in business reactors. This section is essential for demonstrating our fuels design, supplies efficiency and figuring out potential challenges, permitting for changes and enhancements earlier than advancing to system prototype demonstration in operational environments, which make up TRL 6 and seven. Reaching TRL 4 to five is a crucial milestone that validates Lightbridge Gasoline and our achievements so far and units the stage for subsequent growth steps shifting us nearer to commercialization and widespread adoption of our superior nuclear gasoline, which might be TRL 8 and 9. I am going to flip the decision over to Andrey Mushakov, Govt VP for Nuclear Operations, to assessment our ongoing gasoline growth actions. Andrey?

Andrey Mushakov: Thanks, Seth. I am going to now focus on our ongoing challenge, the Idaho Nationwide Laboratory. In 2023, we accomplished a number of key challenge milestones at Idaho Nationwide Laboratory. First, we issued a high quality implementation plan for our collaborative challenge to make sure work carried out at Idaho Nationwide Laboratory and outcomes on take a look at date on our challenge would meet nuclear business high quality assurance necessities. Two, we issued a gasoline specification for the coupon samples that we’re at present engaged on to organize for irrigation testing on the superior take a look at reactor. Three, we shaped the preliminary casting and characterization of a number of of [indiscernible] ingots utilizing Idaho Nationwide Laboratory’s present gear with depleted uranium and zirconium alloy supplies. And 4, we carried out extra casting of bigger sized ingots utilizing depleted uranium and zirconium supplies. This yr, in 2024, we plan to, primary, proceed to validate the casting course of on scaled up ingots with depleted uranium; two, carry out preliminary extrusion demonstration with depleted uranium utilizing bigger sized ingots; three, advance our procurement efforts for customized Lightbridge Extrusion tooling for Idaho Nationwide Laboratory facility; and 5, replace neutronic and thermal evaluation for the experimental information package deal. As soon as the demonstration work with depleted uranium produced acceptable outcomes, Idaho Nationwide Laboratory will now manufacture coupon samples utilizing enriched uranium for insertion on the superior take a look at reactor for radiation testing underneath — on the circumstances that can simulate the efficiency of our gasoline. This work helps the late phases of TRL 4. Experimental information obtained throughout subsequent postradiation examination work to be launched as future challenge take a look at assertion underneath our present settlement with Idaho Nationwide Laboratory might be very important for our mannequin growth and validation efforts. Now I am going to ask Scott Holcombe, our Vice President of Engineering, to offer us an replace on a number of different ongoing initiatives and initiatives. Scott?

Scott Holcombe: Thanks, Andrey. First, we’re increasing our gasoline growth workforce. This growth goals to construct our in-house pc modeling capabilities in essential areas akin to neutronics, thermal hydraulics, gasoline efficiency and transient evaluation. We imagine it will help development by way of TRL ranges 4 to 9 because it underpins our capacity to mannequin and simulate our gasoline’s habits underneath varied working circumstances, a vital side of our growth course of. Moreover, we’re progressing with our engineering research for the usage of Lightbridge Gasoline in CANDU reactors in collaboration with RATEN ICN. This research is evaluating the compatibility and suitability of Lightbridge Gasoline to be used in CANDU pressurized heavy water reactors, which spans actions pre-TRL degree 4, confirming the feasibility of our gasoline in one other reactor kind. Lastly, our introduced FEED research for our Lightbridge pilot gasoline fabrication facility in Piketon, Ohio with Centrus Vitality may help actions throughout TRL ranges 5 to eight, shifting us nearer to realizing our imaginative and prescient for business scale gasoline rod manufacturing. With that, I am going to flip the decision again over to Seth.

Seth Grae: Nicely, thanks, Scott. For the primary time at a UN COP convention of the events at international local weather change occasions at COP28 in December in Dubai, nuclear vitality was acknowledged alongside different clear vitality sectors within the negotiation’s closing assertion. As well as, the US and over 20 different international locations pledged to triple nuclear vitality capability globally by 2050. This bold purpose requires sustaining the operation of roughly 400 giant nuclear reactors at present in operation worldwide, together with 93 in the US and setting up round 800 extra giant reactors. This might symbolize an unprecedented growth of nuclear energy infrastructure. As we speak, practically three months after COP28, there are 62 giant reactors underneath development with over 100 extra crops to be constructed and public proposals for one more 300 reactors. Nearly all of those are for giant reactors. Furthermore, ought to the business shift its focus towards small modular reactors, the required quantity may escalate dramatically doubtlessly to hundreds of items, relying on their particular person capacities. We’re seeing indicators of the shift in direction of higher demand for nuclear energy throughout the provision chain, not simply in license extension for present plans and reactor newbuilds, but additionally restarts of beforehand shut down reactors. Uranium costs are approaching file highs throughout each the commodity and ETFs, outpacing even the NASDAQ 100 index because the pandemic. This approaching nuclear growth may enhance the potential measurement of addressable marketplace for Lightbridge Gasoline. We anticipate a possible enhance in demand for extra environment friendly, safer and economically viable nuclear gasoline. This makes Lightbridge Gasoline a horny choice for each the present reactors and the long run crops being constructed at present and sooner or later. Going ahead, our focus stays on advancing our gasoline growth, strengthening our collaborations with each business and educational companions and hitting our key milestones. Our ongoing analysis and growth efforts and powerful mental property portfolio place us favorably in an business set to increase dramatically all through the world, making certain that Lightbridge stays on the forefront of the nuclear renaissance that is underway. I’ll now flip the decision over to Larry Goldman, Chief Monetary Officer, to summarize the corporate’s monetary outcomes. Larry?

Lawrence Goldman: Thanks, Seth, and good morning, everybody. For additional data relating to our year-end 2023 monetary outcomes and disclosures, please seek advice from our earnings launch that we filed yesterday in addition to our annual report on Type 10-Okay that might be filed with the Securities and Trade Fee inside the subsequent few days. The corporate’s working capital place was $28.3 million at December 31, 2023, versus $28.7 million at December 31, 2022. The Whole belongings have been $29.4 million and complete liabilities have been $0.5 million at December 31, 2023. As we speak, we’ve ample working capital and monetary flexibility to help our near-term gasoline growth expenditures. This is essential to Lightbridge and our stockholders, in addition to our exterior stakeholders such because the federal authorities to make sure that we’ve ample working capital in addition to the flexibility to entry capital sooner or later as a way to conduct our R&D actions. Whole money and money equivalents have been $28.6 million as in comparison with $28.9 million at December 31, 2022, a lower of $0.3 million for the yr ended December 31, 2023. Whole money utilized in working actions for the yr ended December 31, 2023, was $6.5 million, a lower of $0.2 million in comparison with the $6.7 million of money utilized in working actions for the yr ended December 31, 2022. Whole money offered by financing actions for the yr ended December 31, 2023, was $6.2 million, a lower of $4.7 million in comparison with the $10.9 million for the yr ended December 31, 2022. This lower was as a result of a lower within the web proceeds from the issuance of widespread inventory by our at-the-market or ATM facility. In help of our long-term enterprise and future financing necessities with respect to our gasoline growth, we count on to proceed to see authorities funding sooner or later, together with new strategic alliances that will comprise cost-sharing contributions and extra funding from others as a way to assist fund our future R&D milestones resulting in the commercialization of Lightbridge Gasoline. I’ll now flip the decision over to Sherrie Holloway, our Controller, who will go over our P&L monetary data for the yr 2023. Sherrie?

Sherrie Holloway: Thanks, Larry. Internet loss was $7.9 million for the yr ended December 31, 2023, in comparison with $7.5 million for the yr ended December 31, 2022. Whole R&D bills amounted to $1.9 million for the yr ended December 31, 2023, in comparison with $0.7 million for the yr ended December 31, 2022, a rise of $1.2 million. This enhance was primarily as a result of enhance in R&D actions associated to the event of our gasoline. This enhance primarily consisted of a rise in INL challenge labor prices of $0.8 million, a rise in allotted worker compensation and worker advantages of $0.4 million, a rise in consulting bills of $0.1 million, a rise in journey bills of $0.1 million and a rise in stock-based compensation bills of $0.1 million. This enhance was offset by lower of $0.3 million, primarily associated to Gateway for Accelerated Innovation in Nuclear (GAIN) voucher work recorded as analysis and growth bills in 2022 that was accomplished within the first quarter of 2023. Whole G&A bills have been $7.1 million for the yr ended December 31, 2023, in comparison with $7.5 million for the yr ended December 31, 2022. The lower of $0.4 million was primarily as a result of a lower in worker compensation and worker advantages of $0.4 million as a result of enhance within the time allocation proportion of in-house worker labor prices to analysis and growth bills, a lower in consulting bills of $0.1 million, a lower in insurance coverage expense of $0.1 million, lower in dues and subscriptions of $0.1 million and a lower in promotion bills of $0.1 million offset by enhance in stock-based compensation of $0.4 million, which was as a result of partial vesting for restricted inventory awards granted in 2022. Whole stock-based compensation included in G&A bills was $1.1 million for the years ended December 31, 2023 and 2022. Whole different working revenue was 0 for the yr ended December 31, 2023, in comparison with $0.4 million for the yr ended December 31, 2022; this $0.4 million lower was as a result of GAIN Voucher challenge that was accomplished within the first quarter of 2023. Whole different revenue was $1.1 million for the yr ended December 31, 2023, in contrast with different revenue of $0.3 million for the yr ended December 31, 2022, a rise of $0.8 million. The rise in different revenue was as a result of a rise in curiosity revenue earned from the acquisition of treasury payments and from our financial institution financial savings account. Again to you, Seth.

Seth Grae: Thanks, Sherrie, and thanks, all people, for collaborating on at present’s name. I perceive there aren’t questions. We stay up for offering extra updates. Within the meantime, you’ll be able to attain us at ir@ltbridge.com. Keep protected and effectively. Goodbye.

Operator: Thanks on your participation in at present’s convention. This does conclude this system. Chances are you’ll now disconnect.

Operator:

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