Thank you for standing by. This is the conference operator. Welcome to the Westwater Resources, Inc. Full Year 2019 Results and Business Update Conference Call. As a reminder, all participants are in a listen-only mode and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. [Operator Instructions] I would now like to turn the conference over to Chris Jones, President and CEO. Please go ahead, sir.

Thanks, [Anastasia]. Good morning everyone. Thanks for joining us today and welcome to the Westwater Resources Fiscal Year 2019 Results and Energy Materials Business Update Conference Call. With me on the call today is Jeff Vigil, our CFO and Vice President of Finance; and with us by phone is Dain McCoig, our Vice President of Operations. I would like to remind our listeners to read our cautionary statements on the following pages as we will be discussing some forward-looking statements and information. Turning to Slide 3, Westwater is a green energy materials developer with a diverse portfolio of assets in graphite, lithium and uranium. 2019 saw several a key milestones achieved by the Company and the development in its battery-ready to graphite business. I'll speak more these details in later slides, but we are very proud of these accomplishments that led in many cases to material cost savings to the Company, positive revisions to our business plan, all of a shorter duration towards cash flow generation. Our diverse asset portfolio includes lithium and uranium properties, each providing opportunities for Westwater to monetize in support of our long-term goal of building our battery graphite business. With that, I'll end the call to Jeff to discuss our financial.

Thank you, Chris, and good morning everyone. First, let's look at our capital structure on Slide 4. Recent share price is $2.57 with approximately 4.2 million shares outstanding. Market capitalization stands at $10.8 million. Fundamentally, our business is strong and we believe our current asset diversification strategy, our expansion and progression towards developing our battery-materials business along with our vanadium discovery at our Coosa Project and other factors internally and within our industry provide significant upside potential for the Company in the long-term. Turning to Slide 5 and our financial summary for fiscal year 2019. Net cash used in operating activities was $10 million for the year ended December 31 2019, as compared to $11.60 for the same period in 2018. The $1.6 million decrease was due to a decrease in mineral property expense and general administrative expense of year-over-year. For the year ended December 31 2019, mineral property expenses decreased by approximately $700,000 as compared to the corresponding trade in 2018. Decrease was primarily due to a reduction in the reclamation activities at the Vasquez and Rosita projects due to extremely weather adverse and rainy weather conditions in the first half of 2019, and a reduction in operating activities at the Temrezli Project due to the revocation of the mining licenses by the Government of Turkey in June, 2018. General administrative expenses decreased by approximately $900,000 as compared with the corresponding period in 2018. The decrease was primarily due to decreases in executive incentive compensation, consulting expenses and sales and marketing expenses. Our consolidated net loss for the year ended December 31, 2019 and 2018 was $10.4 million and $35.7 million or $5.31 and $38.48 per share respectively. Decrease in consolidated net loss was mainly the result of nearly $18 million impairment charge made during the second quarter of 2018 related to the Temrezli and Sefaatli uranium mineral assets in Turkey. Company's cash balance was $1.9 million at December 31, 2019 and is $1.6 million at February 12, 2020. Our current cash position is supported by certain financial instruments including our stock purchase agreement with Lincoln Park Capital and our controlled equity offering sales agreement with Cantor Fitzgerald. Company intends to pursue project finance to support execution of the battery graphite business plan, putting discretionary capital s expenditures associated with graphite battery material product development, construction of pilot plant facilities and construction of commercial production facilities. With that, I'll turn back to you, Chris.

Thanks, Jeff. On Slide 6, we've listed our asset portfolio as it stands today. This includes our Coosa Graphite Project, our lithium projects, our uranium assets and our vanadium discoveries. More on that as we go along. Please turn to Slide 7. We believe our Coosa Graphite Project will position Westwater as the leading graphite supplier in the United States. Located in East Central, Alabama, we are ideally situated geographically to take advantage of the rapidly growing energy minerals and markets, which includes several of the leading battery and automobile manufacturers. I will discuss in the next several slides how certain milestones we have met in the project have allowed us to accelerate our graphite business plan execution, which will be the catalyst to securing contracts, realizing revenue and cash flow opportunities quicker than originally anticipated. I will also speak to the strengthening fundamentals of graphite that underpin our efforts towards developing the project. U.S. is currently 100% import dependent for graphite with current global graphite production controlled by China, which may not hold to strict environmental standards and procedures. Having a United States based supply of graphite provides improved operational efficiency while not compromising on the required quality. Most importantly, graphite production in the United States and the robust environmental protection we have here ensures more sustainable production process than some overseas jurisdictions. Turning to Slide 8, we announced in September that, we secured a long-term purchase agreement with an internationally respected supplier of natural flake graphite concentrate. In securing this agreement, we can process our three battery grade products without having to wait until the Coosa mine is permitted. This means that, we can process graphite in 2022, when we expect our production facilities to be up and running. In order to find the proper supplier, we conducted…

We will now begin the question-and-answer session. [Operator Instructions] The first question comes from Debra Fiakas with Crystal Equity Research. Please go ahead.

I have a couple questions about the pilot plant and then a couple more questions about the business pipeline. In regard to the pilot plant, I just want to make sure I understand from your comments as well as the presentation, the timeline. You expect to have the pilot plant completed by the end of 2020? Or is it expected to have completed processing the 20 tons of concentrate that that you've received?

Dabra, thanks for the question and thanks for attending the call, always appreciated. We are going to run 20 tons of material through the pilot before the end of this year.

And is this material then targeted towards fulfilling that customer requests for the 1 ton of PMG for testing purposes?

You bet. So, certainly that ton and we will be making bulk material samples for any other perspective customers along the way.

And then maybe just one more question again about the pilot plant. Thank you for putting the flow chart in the presentation. They've been added now for several weeks since you originally hired them the Dorfner folks. Can you maybe give us a little bit of color on the work that they've been doing? To what extent have they changed the process? Or to what extent have they made any modifications to the flow of things?

Not much beyond our disclosures of course, but a little color. What Dorfner Anzaplan is doing, is scaling up lab processes to run in a pilot scale. I think a reasonable person would expect that there's a little bit of a change and basically efficiency design and scaling it up to a pilot plant that's, it's running about 120th, 110th scale of a production process. So, they've been working very hard at those, particular processes. And along the way, they are testing multiple different ways to purify the material, so that we can upgrade to once again production, scale process as opposed to a lab scale. So, I know this, that we were in Germany a couple of three weeks ago, visiting with them and some equipment suppliers in Frankfurt, and we're very excited about the progress are making and we expect news bulletins that we can release sometime in the March, April timeframe.

Now, I'd like if I could to continue monopolizing this call for just a couple more minutes because I have a couple of questions about the business pipeline and thank you for that slide that shows the three product, the products, the PMG and the CPSG, the pictures of them help to really bring home the differentiation amongst the three. And of course, it's exciting to know that there are customers out there that want the PMG and the CPSG, but let's talk about the product that doesn't have a highlighted an asterisk, a love note next to it, the DEXDG product. What sort of customer might be interested in that? Who are you going after to buy that delaminated expanded product?

Well, first DEXDG, we'll go into all three of the battery types that we targeted alkaline power cell, lead acid and lithium ion batteries as a conductivity enhancement. So, we're looking after the same customers. That's the good part. The better part is that, what this stuff actually is as you expand the graphite and de-laminate the flakes and as you approach graphing type flakes, so single molecule, thick graphite, if you will, the electrical performance of that material, increases. So, our DEXDG can be a substitute or an additive, to go along with our PMG material for instance, in the first two battery types led acid and alkaline power cell. And then just to increase the battery performance, lithium ion exclusive of the anode where the CSPG goes, it also enhances better performance in the rest of the matter. So for us, it is a development material. In a lot of respects, it is a relatively complex to make, but we've shown that we can do that already in previous announcements. So, it's a matter of making sure we can market this stuff to our prospective clients and customers along the way.

And then maybe just one more question, if I could about that same product. I was looking at the flowchart and there's the sizing and sorting step. The things that end up as the DEXDG, the delaminated product, are those the things that simply got rejected for spheronization and conversion into that CSPG product that goes into the lithium-ion battery anode?

Not really, we size and sort for purpose for DEXDG. We want bigger flakes basically.

Okay. So, one isn't necessarily dependent on the other.

No, and you can re-blend the graphite to service any particular customer order on the flies the way we've designed this particular flowchart. So, if you've got a higher demand for CSPG, you can send a larger flake into CSPG. If you've got a higher demand for DEXDG, and remember, the margins are quite high on either one of those two products. So, we really want to make those two materials as much as we can and sell them. So, the manufacturing process to be designed by the pilot plant performance will allow us to switch back and forth between those products.

I see, very good, and then this will be my very last question. And this is in regard again to slide 11, where you talked about your three products. You know that there's an R&D project underway within automotive manufacturer. And I wondered if you might just give us a little bit more color if you can on, what the character of this R&D project is about? Is this a request or you being paid for example buy a car manufacturer to explore something? Could just maybe tell us a little bit more about that R&D project, and maybe also its timeline?

Well, it's certainly a cost sharing effort as opposed to revenue effort at this point. I'll be perfectly candid there, but as we develop this product for this particular manufacturer, it is a different use for one of our products, the CSPG than a conventional lithium-ion battery. So, it's pretty exciting for us. It's pretty early stage and the manufacturer like the alkaline power cell manufacturer, they prefer to keep their names out of the press for now.

Understood. So, this is an R&D project. You're actually exploring something entirely new. Can you tell us whether or not this car manufacturer might have at some previous time tested the [CPSG] for a battery purpose?

I really can't say, the testing that has been successful with these guys has been for this new purpose, if you will.

The next question comes from Michael Porter with Porter, LeVay & Rose. Please go ahead.

We're getting a lot of calls in the office from shareholders who've been asking us, if there's any effect on the virus in any way on Westwater. Could you comment on that please?

Yes. Certainly, coronavirus has been in the news, and our thoughts and prayers are out to anyone affected by the virus itself or as a family member concerned about somebody that was. And our thoughts and prayers also go to the caregivers to hopefully they have the tools and the protection they need to cure this once and for all. Our view beyond that, however, is that, I think it is really an indicator of the fragile nature of the Chinese business ecosystem. This disease has spread quickly and it is absolutely and totally disrupted the supply chain for Graphite, the use on the manufacturer of lithium-ion batteries. And I think it speaks directly to really our credo around being a U.S. based, a U.S. producer of graphite materials so that our clients and our customers can enjoy a diversity of supply and the face of disruptions that are totally outside the norm of product change. So thanks for the question. I appreciate it.

[Operator instructions] This concludes the question-and-answer session. I would like to turn the conference back over to Chris Jones for any closing remarks.

Thanks [Anastasia]. And thank you all for spending time with us today and learning about our business and its potential. Please have a great day.

This concludes today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.