Westwater's Q3 2025 Earnings Call: Contradictions Emerge on Graphite Pricing, Permitting, Expansion Timelines, and Government Incentives

Guidance:

• Complete Kellyton Phase 1 optimization evaluation by Q4 and communicate updated strategy early 2026.
• Align Phase 1 capacity with existing offtake commitments to reduce capital requirements and accelerate commercial ramp.
• Continue qualification-line sample production and scale to Phase 1 using recent equipment upgrades to improve yields and cycle times.
• Advance permitting at Coosa, pursue FAST-41 and government funding (EXIM, DOE critical-minerals, Office of Strategic Capital).
• Preserve liquidity (cash ~ $53M, ~$55M raised since June) and remain disciplined on spending.

Business Commentary:

• **Impact of Stellantis' Termination of Of

Sentiment Analysis:

Overall Tone: Neutral

• Negative: "Fiat Chrysler ... unexpectedly terminated its offtake agreement ... paused our debt syndication process." Positive/constructive: "We've invested approximately $125 million..."; "The $55 million we raised ... provides us with flexibility and additional runway." Operational progress: "delivering large sample quantities of battery-grade natural graphite" and "securing that U.S. patent."

Q&A:

• Question from Heiko Ihle (H.C. Wainwright): Provide color on permitting at Coosa and whether there have been bottlenecks due to the government shutdown; how long until things return to normal?
  Response: We are pursuing FAST-41 with advisers, completing necessary studies to strengthen our application; the shutdown delayed activity (travel, due diligence) but overall permitting environment is favorable—no definitive timeline for normalization.

• Question from Heiko Ihle (H.C. Wainwright): What are you hearing on anode/graphite pricing and what government incentives beyond EXIM are on the short list?
  Response: Customer discussions show prices holding with upside potential; pursuing DOE critical-minerals funding, Office of Strategic Capital allocations and other administration programs with advisers assisting applications.

• Question from John Grazioli (Morgan Stanley): Are small modular reactor (SMR) companies or related data-center projects sourcing graphite from you or showing interest?
  Response: Not aware of current engagement from SMR players; management will investigate the opportunity further.

• Question from Shareholders (Pre-submitted): Clarify reports of a $75 million offering—did you complete a $75M offering or was that something else?
  Response: The $75 million referenced was an ATM refresh, not a single one-time offering; the majority of the ~$55 million raised since June occurred prior to that refresh.

Contradiction Point 1

Graphite Pricing and Market Demand

It involves differing perspectives on the stability and potential increase in graphite pricing, which directly impacts the company's revenue projections and investor expectations.

What is the current market sentiment on graphite pricing and long-term demand? - Heiko Ihle(H.C. Wainwright)

2025Q3: Pricing remains stable with potential for increase due to tariffs and export restrictions. - Steven Cates(CFO)

Have there been any updates on global graphite demand, pricing, and market dynamics since the last call? - Michael Pierce(Gene Law Firm)

2023Q2: We are seeing a rise in demand. We are seeing an increase in prices, and we are seeing a rise in volumes that are being forecasted to be needed over the next several years. - Steven Cates(CFO)

Contradiction Point 2

Permitting and Government Incentives

It involves differing statements about the progress and challenges in attaining government permits and incentives, which can impact project timelines and costs.

Can you explain the permitting status at Coosa and any bottlenecks from the government shutdown? How long until normal operations resume? - Heiko Ihle(H.C. Wainwright)

2025Q3: Completion of some studies is necessary to enter solidly. Government shutdown impacts, but predicting return to normal is challenging. - Steven Cates(CFO)

Have you encountered any regulatory or other issues during the permitting process? - Dmitry Silversteyn(Water Tower Research)

2023Q2: We continue to work in a fully transparent fashion with many of the regulatory agencies, and we are on time and on budget with every single one of them. - Steven Cates(CFO)

Contradiction Point 3

Phase II Expansion Timeline

It involves differing expectations regarding the timing of Phase II expansion, which affects the company's growth strategy and investor expectations.

Is there interest in your graphite for data centers from SMR reactors, and are they sourcing it through you? - John Grazioli(Morgan Stanley)

2025Q3: Phase II has the potential to be executed faster than we had previously anticipated. - Frank Bakker(CEO)

Given Phase I is still under construction but strong industry demand driven by the IRA and domestic production interest, have you considered how Phase II timing compares to expectations from a couple of years ago? - Dmitry Silversteyn(Water Tower Research)

2023Q2: We do think that we can speed it up, and it's probably going to be a couple years earlier than what we have thought at this moment. - Frank Bakker(CEO)

Contradiction Point 4

Government Incentives

It involves changes in the company's strategy regarding government incentives, which are crucial for potential funding and support.

What is the current status of permitting at Coosa and any delays caused by the government shutdown? How long will it take for operations to return to normal? What are the market's expectations for pricing and long-term graphite demand? What government incentives are available beyond the Export-Import Bank? - Heiko Ihle (H.C. Wainwright)

2025Q3: Government funding opportunities with DOE and Office of Strategic Capital are being explored for critical mineral processing and extraction. - Steven Cates(CFO)

How much of the expected rate cuts will be reflected in the financing package after announcement, assuming the deal closes post-implementation? - Heiko Ihle (H.C. Wainwright)

2025Q2: The Export-Import Bank is also a potential source of funding but we believe that's somewhat of a longer-term perspective. - Steven Cates(CFO)

Contradiction Point 5

Graphite Pricing and Long-term Demand

It directly impacts expectations regarding graphite pricing and demand, which are critical factors for Westwater's revenue projections and investor assessments.

What is the current status of permitting at Coosa and any bottlenecks caused by the government shutdown? How long until operations return to normal? What are current market trends in pricing and long-term graphite demand? What other government incentives are available besides the Export-Import Bank? - Heiko Ihle (H.C. Wainwright)

2025Q3: Pricing remains stable with potential for increase due to tariffs and export restrictions. - Steven Cates(CFO)

How much of the anticipated interest rate cuts will be reflected in the financing package once announced? Will the lower rates reasonably translate if the financing is signed after the cuts are official? - Heiko Ihle (H.C. Wainwright)

2025Q2: We're not hearing anything differently than we've been hearing from the start, which is that demand is going to accelerate. - Steven Cates(CFO)