Impact: Neutral
Electra Battery Materials recently released a Q3/23 financial and activity update, and although there was little new information provided, a following conference call did provide some clarity on development timelines. Q3 ended with C$15.1M cash, following a C$21.5M raise in Aug/23 (read notable); ELBM still seeks C$5.1M of Government investment. Management believes this improved liquidity will help sustain momentum. A C$9.2M net loss included C$4.4M of non-cash fair value adjustments, though we don’t focus on earnings for development companies. In light of the update, we tighten our valuation, taking ELBM’s multiple pending start-ups one step at a time. Focus remains on funding and construction completion of the US$6M black mass and US$62M Co sulphate plants. Plans for an Ontario Ni sulphate refinery are deferred in our model to 2028, and we don’t include any Quebec Co sulphate plant or battery recycling yet. We look forward to a black mass study in Jan/24 and project financing for the Co sulphate refinery.
