Hazer Group Limited

afternoon everyone and thank you for joining us today on behalf of hazer group i'd like to welcome you to this investor webinar today's session is in listen mode only if you would like to ask a question please type it into the chat box and we'll address it during the q a at the end of the session Presenting today will be our Managing Director, Glenn Corrie, and Chief Technical Officer, Tim Forbes. They will provide an update on the September quarterly report and progress across the business before we move into Q&A. I'll now hand over to Glenn and Tim to run through the presentation.

Thanks, Simon. Good morning, folks, or good afternoon, folks. Welcome to our webinar. As Simon said, I'm joined on the call by Tim Forbes, our Chief Technology Officer. Together, we'll be presenting our results, both the full-year results for 2025, the fiscal year, but also the quarterly results for our first quarter of 2026, plus some other highlights which we think are relevant to investors. If you haven't managed to read our quarterly, which was out last week, there's a lot of really good content in there as well. So I'd encourage you to take a flick through that at your leisure. In terms of our agenda, we'll kick off with the highlights from the fiscal year as well as the first quarter, a bit of an update on our strategy, Then I'd like to come back and do a just a macro check in on where the hydrogen market and more broadly the graphite markets are heading. There's been some new updates from both the IEA as well as DNV, which I think are really exciting for both markets. uh then turn to progress on our commercial scale up our marketing plan there's a lot going on in graphite as well so we want to come back and and really talk to what we're doing on graphite hazer graphite in particular and how we're thinking about the marketing strategy finish off with a corporate update talk about catalyst and then open the call for q a Just moving to the next one, for those that are joining us perhaps for the first time, very simplistically, Hazer converts methane emissions, which are 25 times more harmful than CO2, we convert those into clean energy in the form of hydrogen and critical minerals in the form of a very high purity graphite. Our strong competitive advantage is that we're affordable, low cost, We're scalable, as Tim will describe very shortly, and we're ready and available now to disrupt a very dirty industry that has been using a very dirty source of hydrogen for a very long time. This technology has been in development for over 17 years. We've deployed about $130 million in developing and advancing our technology to a very advanced stage where it is ready for now commercial deployment. Moving to our fiscal year highlights for 2025, we continue to build the foundations or pillars of our commercialization strategy, as I like to say. First of all, we received made and operating revenues from FortisBC that flowed throughout the year. And I'd expect that as we move more projects into feasibility, that we start to get that multiplier effect and stack up those revenues from those early stage studies, which are in flight at the moment. Top line growth grew just shy of 125% year on year. So we finished the fiscal year with $8.5 million of revenue. So that was one of the highest revenue streams that we've seen in the history of the company. Secondly, major milestone with the completion of our CDP performance test program. We've talked about this a lot. This is a world first commercial demonstration of thermocatalytic methane pyrolysis. So we're in a very good position competitively and we've now materially de-risked our technology. Thirdly, in May, only four or five months after completing that important test program, we were able to join forces with one of the world's largest engineering firms, KBR, Kellogg, Brown and Root, to accelerate the scale up and our go-to-market strategy, as well as the licensing of our technology. And we'll talk to the progress on this very shortly. And then corporately, we lowered OPEX 17% year on year and maintain that very important funding position of just shy of $20 million. We did a top up placement throughout the year and we received more non-dilutive funding through two grants that we received and grant milestones received throughout the year as well. So we've got that now extended runway and pathway through some very significant licensing and commercialization milestones. If we then move to the quarterly highlights, more of the same. We continue to drive our business and our strategy forward. We've made material progress with KBR on the scale up of our tech. We've now selected the major equipment, including the reactor concept. This is a very big milestone. Tim will talk to this very shortly. And we have now full alignment with KPR and our technical team on that design package. So a really important milestone achieved throughout the quarter. Graphite markets continue to tighten. You've seen a lot of news flow coming out of China and the US and more recently in Australia. We've done several deals now in this space that position Hazer very importantly in a very tight market. We've also secured some very crucial and important graphite processing and purification intellectual property. so we've now got that end-to-end solution we've got the supply side we've got the marketing and we've got that uh commercialization pathway through mitsui and our own avenues and we've got that purification and our ability to take our hazer graphite and put it into some of the highest and some of the highest value markets that are available today Two new deals as well during the quarter that have got near-term potential for paid studies and more revenue for the company. The one I just want to call out, which we'll again just talk to very shortly, is Energy Pathways. We've got really early momentum with that project with two big milestones during the quarter. And then we exited the quarter with a solid cash, that funding position. Again, quarter on quarter, $20 million of liquidity. That included $4.5 million R&D cash refund that we also received post the end of the quarter in October of this year. So good momentum all round. Our priority focus right now is on progressing our scale up and our marketing strategy. Just turning to our strategic staircase, as I like to call it. Look, our strategy is on track. Our technology is de-risked, it's commercially ready. We've got that strong, high quality strategic partnership now locked in with KBR. There's certainly potential for more in markets and industries. That revenue model that we've been developing is now established and it's operating with our first revenues and our continuous revenues from FortisBC. Our IP or intellectual property moats are strong and we've got a very robust intellectual property protection strategy. We've got something in the order of 72 to 75 patents worldwide covering over 32 jurisdictions. So a really strong IP moat around the technology. And then finally, we've got that clear roadmap to cost competitive And we know we're able to match the incumbents on a cost base, which is really important for the climate tech that we're currently developing. So conversion into paid studies, conversion into licenses are our strategic imperatives at this stage. Turning to markets, dual strategy. I guess what we're saying here is we've got two compelling markets that we effectively serve, the hydrogen market, as well as the graphite market. And we're well positioned in both of those markets. So turning firstly to the hydrogen market, It's a big market with a big problem, but a massive prize for Hazer. The International Energy Agency and DNV both this quarter have put out updates on the market, very positive about the outlook for the market. The market continues to grow roughly at about 4% on a CAGR basis year on year. It's sitting at around 100 million tonnes per annum, valued at about $200 billion. All of this, is dirty hydrogen produced with a very carbon intensive process called steam ethane reforming. One ton of hydrogen, 10 tons of CO2. That's our disruption. Positively, the forecast in particular DNV see by 2050 to 2060 that 85% of this dirty market will be replaced with low carbon sources. That's an incredible statistic for us. because it positions us very constructively as a technology that's ready to disrupt the market today. So we see that as well, that our technology can come in here and disrupt a market that is ready for effectively a replacement technology without the CO2. Growth markets, low carbon ammonia, Methanol, we're very well positioned there with KPR. And then steelmaking is the other market or manufacturing of iron and steel. You'll see on the chart there, it goes from around 5 million tonnes to about 50 million tonnes 10 times in the next 25 years. So we're in the sweet spot again with steelmaking. So again, big market, big problem, very ripe for a solution. Hazer, extremely well positioned to disrupt with a cost parity. solution that is available today. Turning to graphite, the markets are hotting up. You've seen a lot of news flow. It's a critical mineral. It's essential to many components of the energy transition. You can reference the chart there on the left where you can see the DOE, the Department of Energy in the United States, categorizes graphite as in the top five to seven critical minerals. And that is really a signpost for the importance of this market. China dominates the supply. If you look at the chart on the bottom right-hand side, they can control over 80% of the market. So it's a major sovereign risk, but not just Australia, the US, but other developed nations. And in fact, both Australia and US don't produce any domestic supply of graphite at all. So they are relying or we are all relying both on importation as well as future production from potentially technology like hazers. There was a couple of supply shocks during the quarter that are worth calling out. The US imposed tariffs on Chinese graphite that further tightens the market. China then retaliated with the tightening of export controls on not just supply, but also processing and intellectual property. Tim will talk about about our intellectual property on graphite very shortly and then in the last week or so australia and the us have signed another critical minerals deal valued in the order of three billion dollars so haze's opportunity this market's opening up for hazer to locally produce graphite agnostic and independent of the location minimizing these important supply chain risks our deal flow our interest in this technology or at least in this space has grown enormously from government defense through to high-end applications and others and you'll have seen a couple of big strategic deals that have been called out exxon mobil recently acquired superior graphite and that is another strong market signal for the tightening of of this critical market So just turning now to our technology scale up and our go-to-market strategy before I hand it over to Tim, we put a slide together to show the sort of progress that we're making with the alliance. We signed the deal in May this year, so we're only four months into it. And I'm really pleased with the progress we've been making. We're spending a lot of time with the working team. We're spending a lot of time with the the management team in Australia, but also in the US. The design package is taking shape. We're looking at a base design in between 30 and 50 tonnes per annum, 1000 tonnes per annum, potentially above that. The key equipment that has now been selected, including the reactor, that's a major milestone that supports the all important feasibility studies with customers that are in the pipeline. The global sales force is trained up. They're in the market. We're getting actually very good direct feedback as well as indirect feedback that Hazer is being talked about a lot. So we're excited about the momentum that we've got with the early stage marketing that is currently ongoing with KBR as well as ourselves. Those target markets continue to be North America, Asia Pacific, as well as aspects of Europe and of course, Australia. In terms of the next steps, it's about completing the PDP or the Process Design Package, which is due to be completed in the early part of 2026. updates further updates on key projects and and the existing uh deals and projects that we've got new deals new markets and key industries as well as visibility on licensing and that's all ahead of us in the next six to 12 months tim i think that's a good time to hand over to you on the technology update yeah thanks glenn and uh good afternoon everyone great to be here again uh

give you a brief update on technology development and what we've been up to in the recent months. So really what we're working on at the moment, I'd characterize as low cost and high value. Please don't take the low cost as in any way diminishing the value of the work. We're really making some strong headway at the moment. Before I get into the work that we're currently doing, I just want to talk a little bit about some of the key wins that are enabling this next phase of development. So obviously the 2024 CDP test campaign, demonstration scale, TRL7, continuous operation, produce large amounts of graphite and really, really de-risk the technology and enhance the credibility of the technology when interacting with external parties. So that was obviously a big milestone for us. As Glenn touched on the KBR Alliance, really significant. So great working relationships there at this point, access to the leader in ammonia technology, of course, using hydrogen for that production, access to more than half the global supply through KBR. But also they have a strong background in fluid cat cracking, which is my technical background and one of the most widely deployed fluid bed, fluid solids process. So really relevant expertise to help us develop our technology there. We've also complemented it with PSRI, Particulate Solids Research Incorporated. They're a consortium research organization out of Chicago, global leaders in fluid solids and fluidization processes and scale up. So all the oil majors are members. Hazer has joined up as a member this year. And also we've trained all of our staff, all of our technical staff with their fluidization seminar. So we've really upskilled substantially in this last year and now also have access to their more than 50 years of research to help build the rigor around our technology development. So those three things provide a pretty strong foundation for the work that's ongoing. We are doing cold flow testing in Chicago at a large scale. So that's enabled by the demonstration plant graphite production and also the membership with PSRI. And what we get out of that is an improved understanding of gas solids, load behavior, contacting and properties. All that's important to make sure we optimize our reactor design and hardware design for reliable operations that perform and meet the design requirements. We've also building in-house expertise here. So in the picture on the left is our small scale cold flow test rig that we have up and running now. And that allows us to learn as well as we do work with PSRI. We do some complimentary work here over a broader range of samples because it's low cost and small scale. and really build that depth of expertise in-house. As well as this, we've got bench scale testing for reactor performance, kinetics, different molecules that we're building into our in-house proprietary kinetic model. And we'll be coupling in fluid solids contacting behavior from the PSRI test work into that model to, again, further enhance rigor and de-rest the design. And then as Glenn touched on, we're working on the process design package with KBR. So what this does is we'll build a design package at approximately basic engineering level that allows us to get more confidence in our design. It allows Hazer to focus on the core process of the fluid solids and the reaction and bring in KBR expertise and depth of capability in engineering and the process external facilities so that we can have improved confidence in the overall facility design, performance, and cost. And the end result of that is improved marketing, accelerated commercialization when folks sign up to feasibility studies and the next phase. So at this stage, we continue to be very confident. All of this work is reinforcing the existing design basis and economics, and we're doing it with world-class partners getting ready to go faster and bigger. So with that, I'll hand over to Glenn to give a bit more of an update on the project front.