Centrus Energy Corp.

Greetings and welcome to Centris Energy third quarter 2024 earnings conference call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone requires operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Dan Leistico, VP Corporate Communications. Thank you. You may begin.

Good morning. Thank you all for joining us. Today's call will cover the results of the third quarter 2024, ended September 30. Today we have Amir Vexler, President and Chief Executive Officer, and Kevin Harrell, 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 which was issued yesterday. We expect to file our report for the third quarter on Form 10-Q later today. All of our news releases and SEC filings, including our 10K, 10Qs, and 8Ks, are available on our website. A replay of this call will also be available later this morning on the Centris website. I'd like to remind everyone that certain information we may discuss on this call today may be considered forward-looking information and involves 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 could 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 as well as quarterly reports on Form 10-Q. Finally, the forward-looking information provided today is time-sensitive and accurate only as of today, October 29, 2024, unless otherwise noted. This call is the property of Centris Energy. Any transcription, redistribution, retransmission, or rebroadcast of this call in any form without the express written consent of Centris is strictly prohibited. Thank you for your participation, and I'll now turn the call over to Amir.

Thank you, Dan, and thank you to everyone on the call today, both long-time listeners and those of you joining us for the first time. Our industry, and Centris specifically, has a growing sense of momentum. Big tech companies are making historic investments. Reactors that shut down just a few years ago are set to restart. And as international conflicts drive shocks to energy markets around the world, policymakers have made a multi-billion dollar commitment to our domestic nuclear fuel supply chain. At Centris, we are proud to be leading the effort to restore America's ability to enrich uranium, meeting the nation's needs while creating thousands of jobs in the process. Turning to our quarterly numbers, we have consistently stressed on these calls that due to the nature of our business, there is a lot of quarter-to-quarter fluctuation in our results. Most of our revenue comes from the LEU segment, where our customers generally have multi-year contracts to take delivery of a given quantity at a given price each year. But they choose which quarter to take the annual delivery and don't choose the same quarter every year. Revenues and margins go up and down depending on how many deliveries happen to fall into a particular quarter and whether those deliveries come from our higher price contracts or our lower price contracts. And as such, we believe our annual results are more indicative of our progress. In the third quarter of 2024, we achieved $57.7 million in revenue, a gross profit of $8.9 million, and a net loss of $5 million. That is in line with our internal expectations for the quarter, particularly coming after a big second quarter result. Again, this variation is normal for us, and it's why we put our focus on annual numbers. What's even more important, however, is the trajectory we are on as a company and as an industry. As you know, last year, Centris began demonstrating production of high-assay, low-enriched uranium, or halo, in Piketon, Ohio. which is the only licensed and operating HALU production facility in the Western world. I am pleased to report that earlier this month, the Department of Energy selected Centris for a pair of awards aimed at expanded production of HALU, as well as HALU deconversion, which is a secondary step in the HALU production process that occurs after enrichment. The HALE Production Award covers a 10-year period and has a total contract ceiling of $2.7 billion, which is cumulative for all four awardees the department has selected. The contract ceiling for deconversion, cumulative for six awardees, is $800 million. The initial selection only guarantees $2 million under each contract, but it makes us eligible for future task orders from the department. which could underpin a significant expansion of our capacity in Piketon. The ultimate dollar amount associated with these awards and the potential scale of the expansion supported will depend upon task quarters subsequently issued by the U.S. Department of Energy to centrists under the contract. In addition to the contract ceiling, the total value of the task quarters will be limited by the availability of appropriation. Fortunately, the HALU enrichment and deconversion RFPs, as well as a third RFP covering HALU production, which has not yet been awarded, are backed by more than $3.4 billion that has been appropriated by Congress to date. We responded to the LEU RFP in September with a proposal to establish large-scale production of LEU at our Ohio facility alongside what we hope will be expanded HALU production and the new HALU deconversion capability. The federal investment we're seeking coupled with private investment and commercial off-state commitments would form the basis for a public-private partnership aimed at restoring a robust domestic uranium enrichment capacity. As a reminder, we are the only publicly traded uranium enrichment company in the world and the only one with an American technology, American workforce, and American supply chain. All of our competitors that enrich uranium today are foreign, government-owned entities. As another step towards creating a public-private partnership, we have secured a cumulative total of approximately $2 billion in customer commitments to support deployment of our new LEU production capacity in Piketon. These agreements are subject to signing final contracts and are contingent upon us securing the necessary public and private investment to build new capacity. We believe this reflects a strong appetite for new American LEU production and demonstrates customer confidence in centruses, technical capabilities, and commercial competitiveness. Our efforts to restore America's nuclear fuel supply chain have taken on added urgency in the last few months, particularly as major technology companies turn to nuclear to power data centers and the AI systems of the future. For example, Microsoft recently signed a 20-year power purchase agreement to restart a reactor in Pennsylvania. And the Department of Energy also finalized a financial package to enable the restart of the Palisades nuclear plant in Michigan. These represent the first reactors to ever restart after closing down. On October 14th, Google announced a partnership with Kairos Power to deploy a fleet of halo-fueled reactors totaling 500 megawatts. Two days later, Amazon announced a $500 million investment and a commitment to help deploy four of X-Energy's Haley-fueled reactors in Washington State, as well as potential reactor projects in Virginia. That same day, the Department of Energy made $900 million available to support deployments of small modular reactors. That follows action by TVA, which increased its commitment to $350 million to develop small modular reactors at the Clinch River site in Tennessee. The US military is also looking to nuclear energy for national security. Next year, the Pentagon will begin testing prototype alufueled microreactors at Idaho National Laboratory. Meanwhile, the US Air Force is looking to host a microreactor in Alaska. The US Army is evaluating bids for reactors at two of its bases and the Navy recently began exploring possible reactor deployment on underutilized sites in Maryland, Virginia, and North Carolina. Given all of this momentum, it's no surprise that in September, 14 of the world's largest banks, including Bank of America, Morgan Stanley, and Goldman Sachs, committed to support a tripling of nuclear energy capacity by 2050. These initiatives to expand nuclear have something in common. They all require fuel. Where the growth comes from reactor powered by LEU or HALU or a mix of both, Centris is well positioned since our Ohio plant is the only US site license for HALU production and one of only two sites licensed for LEU. I will now turn the call over to Kevin to walk through the numbers.