5E Advanced Materials FEAM Earnings Transcript

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Date

Tuesday, Feb. 17, 2026 at 5 p.m. ET

Call participants

• Chief Executive Officer — Paul Weibel

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Takeaways

• Federal financing engagement -- Advanced discussions with the U.S. Export-Import Bank under the Make More in America framework continued, and 5E Advanced Materials (NASDAQ:FEAM) plans to formally start the EXIM underwriting process next week.
• DOE grant application -- Submitted a detailed application to the Department of Energy's Mines of the Future NOFO for non-dilutive funding, with Fort Katy aligning to eight of nine DOE focus areas; winners are expected to be announced next month.
• Omnibus patent filing -- Filed a patent covering the in-situ leaching mining process to protect technical differentiation and intellectual property for Fort Katy.
• Glass industry trial -- Successfully completed a full-scale glass trial shipment, which progressed commercial discussions with prospective customers toward offtake agreements.
• Mineral resource expansion -- Achieved a substantial increase in the mineral resource estimate at the Fort Katy project, reinforced by confirmed nearly 40-year mine life based only on proven and probable reserves.
• Market structure -- Management noted Turkey controls approximately 70% of global boron reserves and 65% of global production, underpinning U.S. supply chain risk and strategic interest in domestic production.
• Customer pipeline development -- Expanded engagement now includes specialty ferroboron applications for permanent magnets, with plans to provide magnet-grade samples for customer testing in late spring.
• Critical mineral designation -- Federal and industry engagement increased following boron's addition to the USGS critical minerals list, positioning Fort Katy in broader national supply chain discussions.
• Engineering and pre-FID progress -- Continued to advance FEED-related work, with a focus on process design and execution readiness, to move Fort Katy toward final investment decision.

Summary

The call outlined tangible progress across federal funding, engineering, and commercial validation, positioning 5E Advanced Materials for transition from development to project execution. Management confirmed that Fort Katy's technical attributes meet multiple Department of Energy objectives, increasing its candidacy for imminent non-dilutive funding awards. The successful glass industry validation and patent actions may enable competitive advantages and long-term supply discussions outside the legacy market structure. Ongoing customer engagement now targets structured offtake agreements, with specific specialty boron streams such as ferroboron being prioritized for commercial samples. Advancements in financing and regulatory positioning continue to align the project with broader U.S. industrial policy aims.

• The company set clear fiscal 2026 priorities to convert customer trials into offtake agreements and execute FEED work streams for Fort Katy.
• Management articulated a capital-efficient financing strategy focused on non-dilutive pathways, emphasizing the strategic value of federal programs unlocked by critical mineral status.
• Fort Katy's patent portfolio could provide leverage in industry consolidation or strategic partnerships as the U.S. market landscape evolves.
• No operating or financial risk factors were cited by management during the call that would directly impact the reported milestones.

Industry glossary

• FEED: Front-End Engineering Design — Detailed project planning and engineering to define scope, costs, and execution readiness before full investment decision.
• FID: Final Investment Decision — The project milestone where the company commits capital to full-scale construction based on engineering, financing, and market factors.
• NOFO: Notice of Funding Opportunity — U.S. government process soliciting grant or loan applications for strategic projects.
• In-situ leaching: A mining technique involving the injection of solvents to extract target minerals from underground ore bodies without extensive surface excavation.
• Ferroboron: An alloy containing iron and boron, used especially in the manufacture of permanent magnets and specialty steels.

Full Conference Call Transcript

Good afternoon, everyone, and thank you for joining us today. The 2026 marked another step forward in a transformational year for 5E Advanced Materials Inc. and for boron in the United States. Q2 was defined by execution, validation, and advancement, turning the strategic momentum we discussed last quarter into tangible progress across financing, customer engagement, critical minerals awareness, resource expansion, and project readiness. Last quarter, we spoke about alignment—alignment between market fundamentals, U.S. industrial policy, and 5E Advanced Materials Inc.'s position as the most advanced domestic boron development asset. This quarter, that alignment was translated into measurable progress. Before diving into the details, let me briefly summarize this quarter's key highlights.

First, we continue to advance federal financing engagement, building on boron's designation as a critical mineral and deepening discussions across multiple agencies aligned with critical minerals, supply chain security, and advanced manufacturing. Second, we made further progress on customer validation, expanding to successfully complete a full-scale glass trial, which has progressed commercial discussions with future customers following our initial large-scale shipment and successful trial.

Paul Weibel: Third, we advanced engineering and pre-FID work streams, maintaining alignment with our objective of reaching a final investment decision. And finally, we continued strengthening the long-term foundation of the Fort Katy project, including mineral tenure, a substantial increase in our mineral resource estimate, and technical differentiation as we filed an omnibus patent that covers our in-situ leaching mining process and strategic positioning as a next-generation boron producer. Altogether, these milestones reinforce that 5E Advanced Materials Inc. is moving decisively from development towards execution. I want to start again with the market backdrop because it continues to underpin the fundamental economic opportunity in front of us.

The global borates market remains structurally tight with Turkey controlling approximately 70% of global reserves and approximately 65% of global production. Turkey is to boron what China is to rare earths. The U.S. legacy supply continues to face rising costs, declining grades, and limited flexibility, while demand for boron-based materials continues to expand across energy transition technologies, advanced manufacturing, national defense, and high-performance glass and ceramics. What has become increasingly clear through customer discussions and trials is that security of supply, jurisdiction diversification, and reliability now matter as much as price, which all play directly to Fort Katy's strengths. Fort Katy is a long-life, scalable U.S.-based asset that aligns with national supply chain priorities.

Since boron's inclusion on the USGS critical minerals list, engagement with strategic stakeholders has increased. The designation has moved boron and Fort Katy from a niche industrial mineral conversation into a broader national supply chain discussion. That is an important shift and one that continues to open doors. Building on what we outlined last quarter, we made additional progress across federal financing pathways. We remain engaged with the U.S. Export-Import Bank under the Make More in America framework, where 5E Advanced Materials Inc. holds a previously issued letter of interest. During the quarter, we further advanced discussions about how Fort Katy aligns with U.S. export competitiveness, downstream manufacturing, and supply chain resilience.

We also progressed work related to the Engineering Multiplier program, which is designed to support advanced engineering activities on a non-dilutive basis. This effort was slightly delayed given the 2025 government shutdown, but we will formally kick off with EXIM’s underwriting team next week. As a reminder, this program has the potential to fund a significant portion of our FEED activities and further de-risk the project ahead of FID. In parallel, we continue to evaluate opportunities across the Department of Energy's Loan Programs Office, the Office of Strategic Capital, and the U.S. Development Finance Corporation. Each of these frameworks are now directly accessible as a result of boron's critical mineral designation.

Part of our federal engagement, we submitted a detailed application to the Department of Energy's Mines of the Future NOFO, which provides non-dilutive funding for projects piloting advanced mining and processing technologies. Fort Katy aligns with eight of the nine DOE focus areas in this NOFO, demonstrating that we are not just a boron development project, but a technology-forward next-generation critical minerals platform. The DOE is expected to announce winners next month. While the program is highly competitive, Fort Katy's technical sophistication, strategic partners, and alignment with U.S. priorities makes 5E Advanced Materials Inc. a compelling candidate.

With the DOE expected to announce winners next month, our objectives remain clear: to construct a capital-efficient financing strategy that strengthens the balance sheet and supports long-term shareholder value. Operationally, the Fort Katy project continues to progress in line with our development roadmap. As discussed previously, our pre-feasibility study confirmed a strong economic foundation, including a nearly 40-year mine life, based only on our proven and probable mineral reserves, and compelling project economics based solely on Phase One of the development cycle. That foundation continues to guide our engineering and our execution strategy. During Q2, our team continued advancing FEED-related work streams, refining process design, infrastructure planning, and execution sequencing.

These efforts are focused on ensuring that Fort Katy is construction-ready, not just permitted or engineered on paper. In parallel, we advanced initiatives to strengthen long-term mineral tenure, define and expand our mineral resources, and began laying the groundwork for a portfolio of intellectual property related to our proprietary in-situ recovering and processing approaches. As the largest borate producer in the U.S. undergoes strategic review, we believe the IP for our recovery and processing technology can play a pivotal role in expanding the resource life and improving economics at this producer.

While the omnibus patent was a strategic move with the anticipation that our IP can be accretive to the strategic review process, these efforts are designed to protect competitive advantages and support scalable long-term growth. On the commercial front, Q2 represented continued momentum. Following the successful shipment and trial for the glass trial, we expanded engagement with additional customers across multiple applications, and this now includes specialty applications such as ferroboron, a critical component in permanent magnet manufacturing. Importantly, commercial discussions for boric acid are now increasingly centered on commercial structures and long-term supply relationships, rather than just technical qualifications. Each successful trial shipment and validation milestone brings us closer to offtakes.

As we look toward the remainder of fiscal 2026, our priorities remain focused. First, we will progress customer engagement towards commercial discussions, converting validation and discussion into structured offtake agreements. Second, we will execute our pre-FID and FEED work streams with discipline, ensuring Fort Katy is the next long-term borate producer in the United States. Third, we will continue advancing non-dilutive federal financing pathways, leveraging the critical minerals designation to access larger and more strategic pools of capital. Layered on these three objectives will be the specialty boron stream, where ferroboron has become a priority with a goal of providing magnet-grade ferroboron to potential customers for testing in late spring.

We remain committed to moving methodically, de-risking each stage of development, and building a project that is durable, scalable, and strategically aligned with U.S. priorities. In closing, Q2 reinforced that 5E Advanced Materials Inc. is moving decisively from development towards execution. We operate in a market that values a secure, fully integrated domestic supply chain, and we are aligned with U.S. policy priorities. With these tailwinds, 5E Advanced Materials Inc. is positioned to become the next major U.S. boron producer, creating long-term value for shareholders. Thank you to our employees, partners, and shareholders for your continued support. We look forward to updating you again as we continue advancing towards construction and commercial production.

With that, we are ready to open up the line to any questions.

Operator: Thank you. At this time, we will be conducting a question and answer session. If you would like to ask a question, please press 1 on your telephone keypad. You may press 2 if you would like to remove your question from the queue. Participants using speaker equipment, it may be necessary to pick up your handset. Please press 1 if you have a question or a comment. Once again, that is 1 if you have a question or a comment. Okay. There are currently no questions in the queue. I would like to turn the floor back over to Paul for any closing remarks.

Paul Weibel: Thank you, everyone, for joining us today. We believe 5E Advanced Materials Inc. has a rare opportunity to become the next major boron producer globally and the leading domestic supplier in the United States. Fort Katy is a long-life asset with a clear development path. We remain focused on executing responsibly and creating long-term value. We appreciate your continued interest and support, and we look forward to speaking with you again.

Operator: This concludes today's conference, and you may disconnect your lines at this time. Thank you for your participation.

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