Company: FEAV
Filing Date: 2025-01-17
Form Type: DEFA14A
Source: 0000950170-25-006729
Chunk: 10

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-17
Form: DEFA14A
Chunk 10
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 two mechanisms combined with the healthy capital structure, I think we're in a position to deliver. And I think the goal is to get to the debt piece and there's multiple things that kind of tie into that.

Graham Van’t Hoff

Chairman

Paul, can you talk a little bit about, cause I see also in the chat about. What are the kind of requirements of XM and how you see that conversation, that process going?

Paul Weibel

CEO

Yeah. So I think it's good. Great question. S next step with XM, I'll have a fly in with Josh at the end of this month.

We kind of, DC is changing right now and we want the new administration to come in. And so that's when we'll have our first kind of game planning meeting with the XM team. Really that's going to be a let's set expectations, give an update where the project's at, where we're tracking for our PFS and in completion of pre feed engineering.

Then I think from a requirements perspective, we're going to need offtake agreements. They're going to need to come in place. We're going to need atechnical routes from our EPC firm. We're going to need a fixed price EPC contract. And there's kind of numerous steps along the way to get there.

But I think what's at least been kind of outlined to me is that what we'll do is that after this meeting, we're going to be working towards what, what would be a term sheet. And my hope is that kind of lands right around the pre feed engineering time, cause with the pre feed engineering, we're going to have a plus or minus 25 percent capital estimate.

And we have a higher degree of certainty on what the project's going to cost and that can dovetail into the term sheet, where we outline terms, and run the paydowns in the financial model, and it then opens up six months of hard diligence while we're going through feed, and that is where we need to paper up the off takes.

That is where we really need to be sharp on our logistics. You're gonna have multiple project sponsors. Who are we going to be supplying natural gas from? Who are we going to be? Which pipeline is it? Is it? Is it Kinder Morgan or is it SoCal gas? And there's a lot of work that will go into that.

But that process drives to a conditional loan commitment where you're basically there, but