Company: FEAV
Filing Date: 2025-01-17
Form Type: DEFA14A
Source: 0000950170-25-006729
Chunk: 2

Company: 5E Advanced Materials, Inc.
Filing Date: 2025-01-17
Form: DEFA14A
Chunk 2
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 where we are.

I'm sure a majority of you on this call share the vision of us bringing on a new, World's source of boron, as boric acid, but also, other boron derivatives. And that is the promise of what 5E advanced materials is all about. The same time, I'm sure all of you are bitterly disappointed with our share price performance and I can say that I am and everybody else on the team is, is also. The reality is that a stem from a number of big mistakes that were made in the period around 2021 and 2022.

They stem from over optimism, over promise and a lack of attention to details. The consequences of that was that the small scale facility that we brought on stream took too long for us to build. It was too expensive. It had design flaws, it had procurement flaws, and that led to quality flaws, both in construction and in operations.

And the consequence of that is costs and delays. And of course, with costs and delays, that then created a liquidity drain, which is what we've been struggling with for the last 18 months. The same time, if you go back to like middle of 2022, if you looked at the size of the management team, it was the kind of management team that you would have expected.

From a midsize revenue generating company, not a pre revenue starter. And so that meant we had two high G and A levels, which also was a drain on the liquidity. We still have some issues with the SSF, but the team has done a unbelievable job managing through those. And I'm completely confident we'll continue to do so.

I think the team that we now have in place is a great team. It is small, it is highly motivated, and it is high performing. This is not the team that created the problems. This is the team that is fixing the problems. Similarly, we've reduced the size of the board. So we've cut down on the GNA from the board.

And what we have as a board is now highly focused and driven to achieve the very best that we possibly can. I'm sure that many of you are disappointed with the share dilution involved with this deal. The reality is we needed money and that money was not forthcoming from other sources. The deal we now have is not perfect, but it does position us to have an ownership structure to attract new funds and to have committed backers into the future.

We've made tremendous progress with