Electra Battery Materials Corporation (TSX-V:ELBM, NASDAQ:ELBM) said it made progress with the first plant-scale recycling of black mass material in North America using its proprietary hydrometallurgical process in the second quarter of its financial year.
Releasing its results for the three months to June 30, 2023, the company said progress was marked by high recoveries of critical metals, including lithium, nickel, cobalt, copper, manganese, and graphite, needed for the EV battery supply chain, and the production of high-quality nickel-cobalt mixed hydroxide, graphite, and lithium carbonate products.
CEO Trent Mell noted that the company’s recent efforts have been primarily focused on strengthening its balance sheet and updating its refinery project and back mass economics.
“With completion of our re-baseline engineering report, scoping study, and recent equity financing, which raised $21.5 million in gross proceeds, now behind us, we will accelerate our black mass recycling strategy,” Mell said.
“This will entail building continuous operations at our refinery complex capable of processing up to 2,500 tonnes of black mass material per year and advancing our joint venture with Three Fires to process lithium-ion battery scrap in a primary recycling facility in Ontario.”
Also over the quarter, the company released highlights of a re-baseline engineering report focused on determining the capital spend requirements for completing construction of a cobalt refinery complex capable of producing 5,000 tonnes of cobalt contained in sulfate per year.
It said the total capital expenditure for completing the refinery project is currently estimated at $155 to $167 million of which $81.7 million of capitalized development costs have been incurred to date.
It also signed a memorandum of understanding with the First Nation-owned Three Fires Group to form a joint venture focused on the recycling of lithium-ion battery waste in Ontario.
New CFO
The company also highlighted the appointment of Peter Park, a senior finance professional with more than 20 years of experience, as chief financial officer in early July.
Net income for the quarter amounted to $12 million or $0.33 per share, driven by a gain of $14.4 million of fair value adjustments.
The company’s operating loss widened to $4.5 million, from $3.9 million in 2Q 2022, as a result of higher compensation costs due to more staff and higher legal and professional fees.
It ended the quarter with cash and marketable securities of $7.4 million, down from $12.9 million a year earlier, primarily driven by capital costs related to the construction of the cobalt refinery project and costs related to its black mass trial.
The cash balance at the end of 2Q does not include the remaining $5.1 million of government investments it expects to receive or the $21.5 million raised in equity financing.
Following the end of the quarter, Electra extended and expanded the terms of its battery-grade cobalt supply agreement with LG Energy Solution.
It also made the first customer shipment of nickel-cobalt produced at its refinery complex north of Toronto from recycled battery material.
“Over the longer term, we remain committed to completing our cobalt sulfate refinery project in Ontario, supplying battery grade material to LG Energy Solution and other customers, and advancing plans for a second refinery in Bécancour, Quebec,” Mell concluded.
Contact the author at stephen.gunnion@proactiveinvestors.com