Company: FEAV
Filing Date: 2025-02-03
Form Type: DEF 14A
Source: 0000950170-25-012391
Chunk: 77

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-02-03
Form: DEF 14A
Chunk 77
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733 |
| Hydrology wells                                            |     |                |   547 |     |          |   547 |
| Asset retirement cost, net of accumulated amortization     
 of $44 and $23 at June 30, 2024 and 2023, respectively (1) |     |                |   336 |     |          |   357 |
| Mineral rights and properties, net                         |     | $              | 7,616 |     | $        | 7,637 |

(1)Represents the carrying value of capitalized costs associated with asset retirement obligations, as discussed in Note 5—Asset Retirement Obligations

3. Construction in Progress

Construction in progress represents the equipment which has been acquired and is not in use, payments for design, engineering, and construction services in relation to the development of the Project, and any amounts of interest that have been capitalized related to such balances. During the fourth fiscal quarter of 2024, the Company placed the Small-Scale Facility (“SSF”) and its related injection and recovery wells, equipment and facilities into full commercial operation and therefore transferred approximately $75.9 million previously recorded as construction in progress to property plant and equipment. As of June 30, 2024, the amounts that continue to be reported as construction in progress relate to costs incurred in connection with the proposed commercial facility.

Construction in progress consisted of the following at the end of each period presented.

|                                |     | June 30,       
 2024           
 (in thousands) |     |     | June 30, 
 2023     |        |
|:-------------------------------|:----|:---------------|----:|:----|:---------|-------:|
| Engineering services           |     | $              | 608 |     | $        |  9,122 |
| Equipment                      |     |                |   — |     |          | 31,692 |
| Construction                   |     |                |   — |     |          | 21,579 |
| Injection and recovery wells   |     |                |   — |     |          |  4,002 |
| Capitalized interest           |     |                |   — |     |          |  1,158 |
| Total construction in progress |     | $              | 608 |     | $        | 67,553 |

4. Properties, Plant and Equipment, Net

During the fourth fiscal quarter of 2024, the Company placed the SSF