ASP Isotopes Inc.

Good day and welcome to the ASP Isotopes Business Update Call. Please note this event is being recorded. I would now like to turn the conference over to Shweta Digge, Head of Investor Relations. Shweta, your line is, please go ahead.

Good morning and thank you for joining ASP Isotopes Business Update Call. I am Shweta Digge, Head of Investor Relations at ASP Isotopes. Joining me today are Paul Mann, Executive Chairman and Chief Executive Officer, Heather Kiesling, Chief Financial Officer, and Dr. Reino Pretorius, Chief Executive Officer of a nuclear energy subsidiary, Quantum Leap Energy. Our remarks today include forward-looking statements which are subject to risks and uncertainties that can cause actual results to differ materially from those discussed today. We encourage you to view the forward-looking statements, disclosures included on slide two. Additional information on relevant risk factors is described in our filings with the SEC. We undertake no obligation to update forward-looking statements except as required by law. With that, I'll turn the call over to Paul.

Thank you. Good morning, everyone, and thanks for joining us today. Here's how we'll structure today's call. I'll begin with a corporate overview and our key themes for 2026. I'll then walk through each of our product and business segments. Heather will cover our financial performance and capital position, and we'll close out our upcoming milestones and EBITDA outlook before opening the line for questions. We are transitioning from a company that has built infrastructure to one that will be delivering commercial product across multiple high-value end markets. Over the past four years, we've built three enrichment facilities in South Africa using our proprietary aerodynamic separation process and quantum enrichment technologies. These technologies span nuclear medicine, electronics, and nuclear energy. Let me walk you through our 2026 plan. First, we expect first commercial shipments of silicon-28, ytterbium-176, and carbon-14 this year. Each of these products serves a different critical end market, electronics, nuclear medicine, nuclear fuels, and each has a limited global supply. Second, on radiopharmaceuticals, our business continues to grow, and we're expanding operations beyond South Africa into the United States and other jurisdictions to meet increasing demand for radiotherapeutics. Third, our helium and LNG operations at the Virginia Gas Project are progressing towards nameplate capacity, with drilling now complete approximately four months ahead of schedule. This positions us as a meaningful contributor to global helium supply at a time when approximately 25% to 30% of the world's supply is offline. And fourth, Quantum Leap Energy continues its path towards becoming an independent public company, the confidential S1 submitted. The key takeaway here is that we are no longer a development stage company. We are a critical materials platform with revenue potential across all business lines. We have built one integrated critical materials platform, serving three multi-billion dollar end markets. In each one, supply chains are constrained, geographically concentrated, or strategically vulnerable. and each one, no credible Western alternative exists at commercial scale today. That is the position we have built, and it's what makes this platform differentiated. Now, nuclear medicine, we are at an intersection of two powerful trends, the global shift towards targeted cancer therapies and a critical shortage of isotopes that make those therapies possible. Utopium-176 is the feedstock for lutetium-177, a medical isotope used in targeted therapy for neuroendocrine tumors and prostate cancer. That supply runs predominantly through Russia. We are building a Western alternative. Carbon-14 is a separate but equally critical market, a regulatory requirement in pharmaceutical drug development globally with an acute supply shortage. And through varied pharmaceuticals, we close the loop, producing isotopes and delivering finished doses directly to patients across South Africa and the United States. In electronics, we are building a next-generation electronic gases company. Supplying a semiconductor fabrication facility means delivering a full suite of high-purity materials—silicon-28, helium, and fluorinated gases. The semiconductor industry has exhausted what traditional silicon delivers. The next generation of chips requires isosceles computer materials for superior thermal conductivity, and quantum computing requires them for two-bit stability. There is no commercial supplier of silicon-28 at scale anywhere in the world today. We are yet with three signed purchase orders, and every semiconductor fab on Earth needs helium to operate. We own the most concentrated helium resource in the world. Nuclear fuels for quantum leap energy. Nuclear power is back on the global agenda, but the fuel supply chain is not ready. HALU, LEU+, lithium-7, the materials next-generation reactors depend on, have no secure Western supply chain. It duly exists to fix that. Let me take you through our near-term milestones for each segment. Let me start with our nuclear medicine update, beginning with our first quantum enrichment plant. This plant uses our proprietary laser-based quantum enrichment technology, and it's currently producing Ytterbium-176. Ytterbium-176 is the feedstock for lutetium-177, the active ingredient in Novartis Revicto, one of the most important radiopharmaceutical therapies for metastatic prostate cancer. Demand is growing rapidly. Supply today runs predominantly through Russia. We are building the credible Western alternative at commercial scale. We shipped our first Utobium 176 sample in September 2025. In October 2025, we experienced a brief operational pause, which has been fully resolved. The plant is back in operation and enriching product. We believe our plant is capable of enriching approximately one kilogram per year with approximately two kilograms of indicated customer demand. We're entering this market with demand ahead of our initial capacity. We expect first commercial shipments around mid-year or third quarter 2026. Our carbon plant has been enriching carbon 12 and building operational confidence throughout its time in service. Science is not in question. Carbon 14 is our near-term commercial priority from this plant. Carbon 14 is used to trace how drugs metabolise in the body. It is not operational, it's a regulation requirement in drug development. Global supply is acutely constrained. signed a take-or-pay contract with a North American customer of a minimum of $2.5 million per year, with a potential upside of $5 million or more. Contracted recurring revenue. The feedstock has now shipped out of Canada and is being processed in the United States. We expect delivery to South Africa by the end of this month. The concentration of carbon-14 in that feedstock will determine our revenue timing. At 0.5% concentration, we expect to book revenue in Q3. At 1% or higher, we will book in Q2. We will know once we receive it. To be direct, this is a timing issue, not a science issue. The plant works, the contract is signed. Penn Labs is our radio pharmaceutical platform and a business that is scaling fast. Revenue grew from $3.9 million in 2024 to $5.7 million in 2025, driven by capacity expansion and favorable pricing. Our first cyclotron is at peak utilization, and our second came online in July 2025. South Africa is no longer a proof-of-concept. It is a fully operational radiopharmacy delivering record doses. The plant that we built there is exactly what we are replicating in the United States. On U.S. expansion, we acquired East Coast Nuclear in Florida, our first U.S. entry, a SPECT-focused initially with pet capability planned for 2027. We subsequently acquired a second site in North Carolina, now delivering SPECT services with pet expansion planned for 2028. We have an active pipeline of additional radiopharmacy acquisition targets in due diligence. The 2026 revenue target is $10 million or more, roughly double that of 2025. Now let me turn to silicon-28 and where we stand on commercial delivery. A stock of QPR silicon-28 is a key material in the development of solid-state quantum computing and advanced semiconductor architectures. By removing the nuclear spin noise present in natural silicon, enriched silicon-28 provides a pristine environment for qubits dramatically improving coherence times and overall device performance. This unique material advantage is crucial for building scalable, fault-tolerant quantum processors that can operate reliably at industrial scale. We have signed three purchase orders, one with a major U.S. semiconductor company, one with a large global industrial gas company, and one with a large U.S. buyer. We shipped first enriched samples in August 2025. Emissions is tracking exactly in line with our theoretical calculations. technology is working precisely as designed. Two customers visited the plant in October and November, and those visits were constructive and collaborative. We jointly agreed to make modifications to the plant for safety, operational efficiency, and long-term plant robustness. We implemented them because we want this plant to run reliably for years, not just for the first batch. We expect to ship the first 728 product during the second quarter of 2026. We completed the religion acquisition on January 6, Let me explain why helium is central to our strategy and why the timing of this acquisition matters. We own the most concentrated helium resource in the world. Qatar averages 0.05% helium concentration. Russia is 0.06%, and the US averages 0.35%. Our three state wells average over 3%, and we have seen concentrations as high as 12%. Now phase one status, well drilling is complete, four months ahead of schedule, with flow rates up to 16 times those of earlier wells. We're ramping to nameplate capacity, expected in the third quarter of 2026. At nameplate, phase one produces approximately 2,500 gigajoules per day of LNG. One gigajoule is approximately equal to one mm BTU, and 58 MCF per day of helium. 60% of phase one LNG is already contracted. and we expect a positive operational cash flow before year-end 2026. Phase two is the transformational step. 34,000 gigajoules of LNG per day and approximately 895 MCF per day of helium, representing roughly 7% of projected global supply. Phase two financing benefits from $750 million of committed debt, half a billion dollars from the USDFC and $250 million from Standard Bank. unlocked by a $170 million capital commitment. The U.S. government has designated this facility as critical to national infrastructure. QuantumLeap Energy is our nuclear fuel subsidiary. I want to note up front we are limited in some of what we can say today because QLE is in the S-1 registration process with the SEC. Our comments will be consistent with publicly disclosed information. The confirmation of S-1 was submitted in November 2025. The QLE spin-out is a 2026 event. I'll ask you to watch for updates as you work through the SEC process. With that, I'll turn the call over to Heather.

Thank you, Paul. Good morning, everyone. I'll walk you through our key financial metrics for the year ended December 31, 2025. At this stage, we consider our key metrics to be revenue, cash, and our capital position. Total 2025 revenue was $23.8 million. compared to 4.1 million in 2024, an increase of 480%. This reflects our full year of radiopharmacy operations in 2025 and the investment in Skyline, which is comprised of 5.7 million from specialized isotopes and services and 18.1 million from construction services, which is from Skyline. Looking at just product revenue, 2025 was 5.7 million from our radiopharmacies, an increase of 46% compared to the 3.9 million in 2024, reflecting our growth in radiopharmacy operations and expansion into the United States. As of December 31st, 2025, ASP Isotopes had cash, cash equivalents, and marketable securities of $333 million. During 2025, the company significantly strengthened its balance sheet raising over $345 million in total capital through the issuance of common stock and convertible notes. This included $199.7 million in net proceeds from a stock issuance in October 2025 and $42.2 million from a private placement of quantum LEAP energy convertible notes in November 2025. We are well positioned for executing our plans. With that, I will hand it back to Paul.

Thank you, Heather. Let me walk through our 2026 milestones. The company expects the first enriched silicon-28 product to ship in the second quarter of 2026. The company anticipates initial carbon-14 commercial shipments around mid-year, contingent on the timing receipt of feedstock from our Canadian supplier. And the company expects initial commercial shipments for October 176 around mid-year, or the third quarter of 2026. The company expects to obtain helium phase one nameplate capacity during the third quarter of 2026. And for radiopharmaceuticals, we expect continued growth of the radiopharmacy operations. We expect to advance four pipeline assets into phase one human clinical trials. Today, we are sharing a segment-level range of how we get to a greater than $20 million EBITDA target in 2031. Starting with electronic gases, we're targeting between $150 million and $20 million. This is driven by silicon-28, helium, and a broader and richer electronic gases portfolio that is building behind them. The demand here is structural, not cyclical. It grows as chips get smaller, data centers scale, and quantum computing moves towards commercialization. There's no credible Western supplier of silicon-28 at commercial scale today, and we're building that. Natural gas contributes between $100 million and $200 million. This is the energy that comes up alongside the helium in the Virginia gas project. At well-hard costs of 35 cents per mm BTU, the economics are compelling. This is not our core business. Without this cost structure, the returns are exceptional. On medical isotopes, this should contribute between $40 million and $100 million. It should be 176 and carbon-14. Most products address acute supply shortages in their respective markets. The 176 supply today runs predominantly through Russia, and carbon-14 supply is equally constrained. We are building the Western alternative for both. Invaded pharmaceuticals contributes between $40 million and $100 million. Pet Labs, a business that has already generated revenues, is growing and expanding internationally. It delivered greater than 40% revenue growth in 2025 and is targeting $10 million in 2026. Taken together, these four segments get us to greater than $300 million in EBITDA in 2031. Let me close with a few brief remarks. From a list on NASDAQ, we made a set of commitments, built the technology, and proved it works. We have done that. Our science works, our customers are engaged, and our master's ahead of us are defined and achievable. The world needs what we are building, but the platform, the capital, and the team to deliver, I'm confident in what this year holds. Thank you all for your continued interest and support. Up to later, we're ready to open the line for questions.

Thank you. We will now begin the question and answer session. If you would like to ask a question, please press star 1 in your telephone keypad. As a reminder, please limit yourself to one question at a time. We will now take our first question, which comes from the line of George Gianarchos from Canaccord Genuity. Your line is open.

Hi, everyone, and thank you for taking my questions. Maybe first set of questions is to focus on quantifying some things. So for 2026, you talked about operationalizing several of your assets. So can you help us at least understand a range of revenue that we should expect for the firm for the full year, particularly as you're bringing to life, as we said, you know, helium, natural gas, and a few of the isotopes. And also, as an add-on to that, the $300 million in EBITDA that you discussed, just to be clear, does not include anything regarding QLE. Thank you.

Thanks, George. So I'll take, first of all, the range of revenues for the firm for full year 2026. and then um regarding the fin of million guidance and and cure leaves so you know it's quite challenging to give you an exact guidance for 2026 given we don't know exactly which month for which quarter that the plants will start up and start shipping in so let me kind of give you an idea of what the annualized number may look like so um you know for silicon 28 You know, it's going to be, my guess is low single digits, millions of dollars, you know, but again, it depends on when it starts up and demand. As I said, we've signed three contracts of customers. There's lots more customers potentially interested. We haven't signed those contracts yet. So a number of uncertainties for Silicon 28. As I said earlier, we'd expect over $10 million for pet labs this year. For carbon 14, which is annualized, the contract is about $2.5 million a year. And perhaps they might want as much as $5 million a year. So depending on exactly what month we start up in, you can even pro rata that number for the year. And for your terbium 176, we've kind of said that we think that plant can do about a kilogram a year at about $20,000 a gram. So that'd be $20 million of annualized revenues. I don't know, we think that's plants starting up around mid-year, that kind of timeframe, two, three. So again, you can proform that for the year. And importantly, as we start the plants up and we ship our first commercial productions, we can tell you that date, and then you can proform those numbers. For LNG and helium, you know, we said LNG is about 2,500 gigajoules per day. And, you know, I would assume a price of, you know, $13 to $14 per gigajoule. So annualized. that'd be about slightly over $12 million a year. And then liquid helium, it was said 58 MCF per day. Now, the price there is clearly, you know, right now we're seeing extreme tightness in that market. So if you'd asked me three months ago, I'd have said assume maybe an average price would be a mixture of spot and contract, call it $400 per MCF, and that would give you can make million dollars in revenue. But right now, if we sign in contracts, we could be signing well over $1,000 per MCF and that's more like $25,000 or $20,000, $20 million a year. So, you know, and obviously our costs are fixed on that business as well. So a dollar of incremental helium revenue drops straight to the bottom line. So there's a lot of operating leverage, a lot of operating leverage there. And then, yes, just to confirm, the $300 million EBITDA target for 2031 excludes any contribution from QLE, which we expect to spin out this year.

Thank you. And maybe as a follow-up, I want to ask about your helium business. Any thoughts on, I know you just acquired it, but any thoughts on potentially, you know, monetizing that or highlighting the value to the market in the future? Thank you.

Thanks for the question. So it's a good time to be involved in the helium market. We've actually had customers fly to South Africa from Asia to visit us to try and secure helium. That ship to South Africa wasn't on their travel plans three months ago. We've had a lot of interesting investors who would like to invest specifically in the helium business. I've always said that our look is, there are four verticals here. And helium is one of them. And so it's obviously a very fine time for us to try and extract some value from that helium business. And also they put a market value on that. So we would certainly look to doing a market debut listing or spin out or whatever the right terminology is, the right phrases for that helium business. I think it'd be a lot of interesting investors in it right now.

Great. Thank you so much.

Again, if you'd like to ask a question, it's star one in your telephone keypad. Your next question comes from a line of Alex Furman from Lucid Capital Market. Your line is open.

Hey, guys. Thanks very much for taking my questions. You know, a lot of exciting milestones that you're hitting this year. Wanted to ask about the first commercial shipments of Silicon 28 that you have coming this year. It sounds like some of these customers have already been testing it. your silicon, can you give us a sense of what they're doing with it and potentially what the timeline might be for these to turn into larger orders?

Great. So thanks for the question. So we shipped some samples of silicon-28 to customers or to a customer. Well, our argument is it was representing two customers, but to one customer to test that silicon-28. There aren't many labs in the world, we think there are probably only two, that can measure silicon-28 to the kind of purity we need to measure it to. We have one, that particular customer has another. And so we tested it. The samples looked like they were, well, they were, our measurement, our analytics, measured exactly the same measurements, which is exactly what we wanted. You can't buy a standard for silicon-28, so we're having to invent the process as we're doing it. And so that confirmed, first of all, our analytics were correct, and that the enrichment was going exactly in line with our theoretical calculations. That was encouraging as well. Right now, we've signed free contracts with customers, but we had a lot of interest from other customers, The customers we've signed right now are more for the quantum computing side, so looking at 99.995% isotopic and pure. There's a lot of interest as well from lower enriched products, maybe 99.9 or 99.99, more for normal computing or next generation semiconductors, so faster semiconductors, semiconductors that can transmit heat better than current semiconductors can. So, you know, we'd expect as we go into production to get more interest in those customers. And we'd expect quantity to remain very much a niche market, whereas lower levels of enrichment for advanced semiconductors would be a much larger market. But we're in discussions with all those customers today. Many of them have flown out to visit our plants in South Africa. And, you know, we're very excited to service them.

Okay, that's really helpful. Thanks for that. And then, Paul, if I could ask about uterbium, you know, nice to see there's a lot of demand there. It sounds like particularly you indicated pretty strong demand in non-Russian supply. Curious if you're seeing, you know, non-Russian uterbium starting to be contracted at a premium price. And then it also sounds like you've got line of sight to production of one kilogram, but potentially demand for two kilograms or more. Is there a strategy to get production up to that two kilogram level?

Yeah, so we're actually, there isn't a clear spot price or market price for your terbium. It's all done customer to customer. So you can't log onto your Bloomberg screen and see a forward curve or a futures curve for your terbium or or what the market's paying for it. So we're told in the marketplace that typically Russian uterbium-176 trades between $20,000 and $35,000 a gram. Our plan is to try and charge $20,000 a gram, so actually price the slight discount to Russia. We would like to be a reliable, low-cost supplier of these very valuable isotopes. However, we still pick up an exceptionally high gross margin. So the geography of the customer as well as the price never comes into question with the customer. And then in terms of the second part of your question as to expanding the plant from one kilogram to a larger quantity. So right now we are procuring the equipment for the continuous vessel. We've got one item left to procure. We're expecting that to arrive during the second quarter. and that then we can start um increasing increasing the processing and throughput for the plant right now we're processing for about sort of three hours a day three to four times a week that's not how you produce a commercial large quantity product um so the continuous vessel should allow us to process 24 7 for about three months and that's where we get to really large um large scale and expect us to build a second vessel and a second plant straight away And we're already procuring equipment for the second plot. So we can expand our capacity from one kilogram to two kilograms. And that's work in progress right now.

Okay, that's really helpful. Thank you very much.

And that concludes our question and answer session. I will now turn the call back over to Paul for some final closing remarks.

Thanks for your interest in our company. 2026 is a transformational year for the company. It's a lot going on, a lot to happen. And we look forward to reporting on these events as and when they happen over the next several months and becoming a major supplier of isotope and critical materials to the world by the end of this year. So thank you all for your interest. If you have any questions, please contact our Investor Relations Department and I'm sure to answer them. Thank you very much.

This concludes today's ASP Isotopes Business Update call. Thank you for your participation. You may now disconnect.