Release Date: May 10, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Lightbridge Corp (LTBR, Financial) achieved a critical milestone with the successful extrusion of a uranium-zirconium alloy rod at Idaho National Laboratory, advancing their nuclear fuel technology.
- The company is actively involved in international nuclear policy, with CEO Seth Grae appointed as Chair of the American Nuclear Society's International Council, enhancing global cooperation.
- Lightbridge Corp (LTBR) is expanding its influence in the nuclear industry with VP of Program Management, Jim Fornof, appointed to the Board of Directors at the United States Nuclear Industry Council.
- The company is engaged in multiple collaborative projects and studies, including with RATEN ICN and Centrus Energy, to further the development and deployment of Lightbridge Fuel.
- Lightbridge Corp (LTBR) has a strong financial position with ample working capital of $27.4 million as of March 31, 2024, to support ongoing fuel development and operational expenditures.
Negative Points
- The company reported a net loss of $2.8 million for the first quarter of 2024, which is an increase from the $2 million loss in the same quarter the previous year.
- Increased R&D and G&A expenses led to higher operational costs in the first quarter of 2024, contributing to the net loss.
- There was a decrease in cash and cash equivalents, from $28.6 million at the end of 2023 to $27.9 million by March 31, 2024.
- The increase in cash used in operating activities to $1.9 million in Q1 2024 from $1.5 million in Q1 2023 indicates higher cash burn rates.
- Despite ongoing projects and advancements, the commercial deployment and regulatory approval of Lightbridge Fuel are still in developmental stages, posing risks associated with technological and market acceptance uncertainties.
Q & A Highlights
Q: Can you provide an update on the recent achievements in Lightbridge's fuel development efforts?
A: (Andrey Mushakov - Executive Vice President - Nuclear Operations) Lightbridge achieved a critical milestone with the successful extrusion of a rod sample of Lightbridge Fuel material at Idaho National Laboratory. This sample, made from an alloy of depleted uranium and zirconium, is part of a strategic partnership project aimed at generating irradiation performance data essential for commercial deployment.
Q: What are the next steps in the project at Idaho National Laboratory following the extrusion demonstration?
A: (James Fornof - Vice President, Government Program Management) Following the successful extrusion demonstration, the next steps include analyzing the extruded rod to confirm process parameters and material characteristics. We plan to produce irradiation coupon samples using enriched uranium and zirconium for further testing in the Advanced Test Reactor next year.
Q: How is Lightbridge advancing its technology in terms of international cooperation and industry involvement?
A: (Seth Grae - President, Chief Executive Officer, Director) Lightbridge is deeply involved in the global nuclear power industry, with strategic appointments such as my role as Chair of the American Nuclear Society's International Council and Jim Fornof's position on the Board of Directors at the US Nuclear Industry Council. These roles enhance our ability to influence and participate in global nuclear policy and development.
Q: What are the financial results for Lightbridge in the first quarter of 2024?
A: (Lawrence Goldman - Chief Financial Officer) For Q1 2024, Lightbridge reported a net loss of $2.8 million with total R&D expenses of $1 million, primarily due to increased project costs at INL and other R&D activities. Our working capital was $27.4 million, and we have a strong cash position to support ongoing fuel development.
Q: What strategic collaborations is Lightbridge currently engaged in to advance its fuel technology?
A: (Andrey Mushakov - Executive Vice President - Nuclear Operations) Lightbridge is collaborating on several fronts, including an engineering study with RATEN ICN for CANDU reactors compatibility, a FEED study with Centrus Energy, and ongoing projects with Texas A&M University and Massachusetts Institute of Technology to enhance our fuel's development and deployment.
Q: How is Lightbridge preparing for the future commercial deployment of its nuclear fuel technology?
A: (Scott Holcombe - VP, Engineering) We are expanding our R&D team and enhancing capabilities in critical areas like computer modeling, simulation, and regulatory licensing. Our roadmap includes extensive testing and collaborations with commercial reactors and potential fuel vendors to achieve regulatory approvals and commercial deployment.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
