Release Date: February 27, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Lightbridge Corp (NASDAQ:LTBR) is experiencing a positive industry trend with a resurgence in nuclear energy, supported by both public and private sectors globally.
• The company has developed a unique metallic fuel technology that offers economic and safety benefits, potentially transformative for the nuclear industry.
• Lightbridge Corp (NASDAQ:LTBR) has signed a memorandum of understanding with OLO, which could create significant fuel fabrication synergies and opportunities in advanced fuel recycling.
• The company achieved a manufacturing milestone at Idaho National Laboratory, demonstrating their proprietary co-extrusion process.
• Lightbridge Corp (NASDAQ:LTBR) has a strong financial position with ample working capital of $39.9 million as of December 31, 2024, supporting near-term fuel development expenditures.

Negative Points

• The company reported a net loss of $11.8 million for the year ended December 31, 2024, an increase from $7.9 million in the previous year.
• Research and development expenses increased significantly to $4.6 million in 2024 from $1.9 million in 2023, indicating higher costs associated with fuel development.
• General and administrative expenses also rose to $8.5 million in 2024 from $7.1 million in 2023, driven by increased employee compensation and consulting fees.
• The increase in cash used in operating activities to $9.5 million in 2024 from $6.5 million in 2023 reflects higher spending on R&D and G&A expenses.
• Lightbridge Corp (NASDAQ:LTBR) faces uncertainties related to tariffs and sourcing of uranium, which could impact the economics of their fuel and future profits.

Q & A Highlights

• Warning! GuruFocus has detected 2 Warning Sign with LTBR.

Q: Is Lightbridge fuel suitable for use in Small Modular Reactors (SMRs), and which companies do you intend to supply? A: Yes, Lightbridge is developing its fuel to be suitable for SMRs. Many SMRs are smaller versions of water-cooled reactors, and Lightbridge expects its fuel to be usable in most of them, providing significant benefits. The U.S. Department of Energy's Nuclear Energy University Program is funding studies at MIT and Texas A&M University that include Lightbridge fuel in SMRs, particularly the SMR being developed by NuScale.

Q: What is the feedstock for Lightbridge fuel, and how does it source its uranium? A: The main feedstocks for Lightbridge fuel are uranium and zirconium. The uranium used in the development and testing program at Idaho National Laboratory is provided by U.S. Department of Energy stockpiles. For commercial use, utilities will source the uranium needed. Major uranium mining companies are located in countries like Canada, Australia, and Kazakhstan, with increased interest in domestic mining in the U.S.

Q: What is the significance of recent co-extrusion demonstrations, and what are the next steps? A: The recent co-extrusion at Idaho National Laboratory marks the completion of casting and extrusion demonstration efforts. This demonstration established techniques and processes needed to produce high-quality and repeatable castings and billets. The next steps involve using these techniques to produce samples with enriched uranium for testing in the Advanced Test Reactor, expected in early 2026.

Q: What is the total addressable market for Lightbridge fuel? A: The global total addressable market for commercial nuclear fuel is currently about $16.7 billion, with approximately $4 billion in the United States. With pledges to triple nuclear power globally by 2050, the market is expected to expand significantly.

Q: How does Lightbridge fuel contribute to nuclear nonproliferation and safety, and could it open new markets worldwide? A: Lightbridge fuel is designed to enhance nuclear nonproliferation and safety by design, supplementing traditional methods like inspections. This design advantage is crucial, especially with the potential increase in the number of reactors worldwide, including in remote locations. Lightbridge aims for its fuel to become the standard, offering superior benefits for nuclear plants.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.