Centrus Energy Corp.

Thank you for standing by. My name is John, and I will be your conference operator for today. At this time, I would like to welcome everyone to the Centris Energy second quarter 2024 earnings call. All lives have been placed in me to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, please press star one again. Thank you. I would now like to turn the call over to Dan Laisico. Please go ahead.

Good morning. Thank you all for joining us. Today's call will cover the results for the second quarter of 2024, ended June 30th. Today we have Amir Vexler, President and Chief Executive Officer, and Kevin Harrell, our Chief Financial Officer. Before turning the call over to Amir Vexler, I'd like to welcome all of our callers, as well as those listening to our webcast. This conference call follows our earnings news release issued yesterday afternoon. We expect to file our report for the second quarter on Form 10-Q later today. All of our news releases and SEC filings, including our 10-K, 10-Qs, and 8-Ks, are available on our website. A replay of this call will also be available later this morning on the Centris website. I would like to remind everyone that certain information we may discuss in this call today can be considered forward-looking information that involves a risk and uncertainty, including assumptions about the future performance of CentRIS. Our actual results may differ materially from those in our forward-looking statements. Additional information concerning factors that would cause actual results to materially differ from those in our forward-looking statements is contained in our filings with the SEC, including our annual report on Form 10-K and quarterly reports on Form 10-Q. Finally, the forward-looking information provided today is time-sensitive and accurate only as of today, August 7, 2024, unless otherwise noted. This call is the property of Centris Energy. Any transcription, redistribution, retransmission, or rebroadcast of the call in any form without the expressed written consent of Centris is strictly prohibited. Thank you for your participation, and I'll now turn the call over to Amir Vexler.

Thank you, Dan, and thank you to everyone on the call today. I am pleased to report another strong and productive quarter for Centris in which we delivered strong revenue, achieved positive profit margins, strengthened our balance sheet, and positioned ourselves for long-term growth. As always, we remind listeners that our results vary substantially from quarter to quarter due to the timing of customer deliveries, which is why we encourage folks to focus on the annual numbers as opposed to any one quarter. We had 189 million in revenue and reported 30.6 million in net income for the quarter, driven by a large number of customer deliveries in our LEU business segment. We expanded our cash balance to 227 million while strengthening and de-risking our balance sheet by eliminating the majority of our remaining pension obligations. Kevin will discuss this in greater depth shortly. Last October, we made history. by becoming the first U.S. uranium enrichment company to commence plant operations using U.S. enrichment technology in 70 years. We are continuing to produce high-assay, low-enriched uranium, or HALU, which is urgently needed to fuel the next-generation reactors. The modest quantity of HALU we can produce today is the foundation for the Department of Energy in supporting demonstration reactors and new fuel designs. Our potential is exponentially larger. The current HALU production cascade occupies a small corner of our Ohio facility, which is designed to accommodate more than 10,000 centrifuges. Our goal is clear, to expand our capacity at our American centrifuge plant in Ohio so that we can meet the full range of commercial and national security requirements for enriched uranium, including not only HALU, but also low enriched uranium for the existing fleet of commercial reactors. The global uranium enrichment market is dominated by state-owned enterprises, which is why U.S. government support for domestic enrichment technology through public-private partnership is so critical. Government investment is especially justified here given the fact that the government has its own requirements for enriched uranium, including national security missions that explicitly require the use of U.S.-origin enrichment technology, a technology only we can provide today. While the build-out of a scaled enrichment facility will require new investment as well as the support of the U.S. government, in the past few months alone we have seen strong signals that give us confidence in our strategic plans. Last quarter we announced $900 million in LEU purchase commitments from commercial customers contingent on our ability to secure financing necessary to build the new enrichment capacity. In addition, the Department of Energy has issued RFPs designed to jumpstart American production of both LEU and HALU. We submitted our proposals for HALU earlier this year. We are now developing our proposals for the LEU RFP, which is due next month. These RFPs are backed by more than $3.4 billion in congressional appropriations that were approved as part of the Inflation Reduction Act in 2022 and the bipartisan government funding bill in March 2024. Taken together, they represent the largest federal investment in domestic nuclear fuel production in decades. These are competitive solicitations. There are no guarantees. I have told my team to take nothing for granted. Our job is to put together competitive proposals that highlight our capabilities to bring the best value for the government. We have a strong case to make. We have a proven technology that is already in operations. We have one of only two U.S. sites currently licensed for LEU production and the only one licensed for ALU production. We are the only American-owned enrichment company. We are the only technology that will fully rely on and utilize an American supply chain. We manufacture our centrifuges in the U.S. Our technology is U.S. origin. That is crucially important because Under long-standing nonproliferation agreements, only a U.S.-origin technology can be used to support national security missions. In short, we are uniquely positioned to deliver an all-in-one, made-in-America solution, restoring a truly domestic uranium enrichment capability which will strengthen our energy security and our national security while creating family-supporting, high-tech jobs for American workers. If we are successful, we will play a pivotal role in enabling the United States to transition away from depending on foreign supplies of enrichment. And there's no time to waste. In May 2024, the President signed into law the ban on the imports of enriched uranium from Russia, which is set to take effect on August 11, 2024. However, lawmakers recognize the reality that the transition is going to take some time. So the law authorizes the Department of Energy to issue waivers through 2027. Centris has been clear that we need waivers for the next few years as we complete our Russian supply contracts and to enable us to transition back to our own production. We have also been consistent in our communications with our government partners that waivers are necessary to ensure an uninterrupted supply of fuel to the reactors that millions of Americans rely on every day for power. Last month, the Department of Energy granted Centris a waiver covering our importations for U.S. customers in 2024 and 2025, while deferring a decision on 2026 and 2027. We are pleased with the OE's approach to the process and this outcome, which reflects a shared understanding between government and industry that new capacity won't come online for several years and avoid the near-term disruption that would harm our American customers. We have also requested a waiver covering imports for our international customers that have their enriched uranium fabricated into fuel in the United States and re-exported. And longer term, we plan to request the waiver covering imports in 2026 and 2027 that we have not yet committed to customers. The reality is that Russia accounts for 44% of the world's enrichment capacity today. and U.S. utilities relied on Russian origin enrichment for more than a quarter of their needs last year. That's why these waivers are so important during this transition period, not just for Centris, but for the industry and the country, as we work to scale up domestic enrichment capacity over the next few years. Working together in partnership between government and business, America can do great things. Rebuilding our domestic uranium enrichment capacity is one of them. Centra stands ready to lead that effort. With that, I'm going to turn things over to Kevin.