웨스트워터 리소스(WWR) 2026년 2분기 실적 발표 콘퍼런스 콜: 2,500만 달러 EXIM 대출

핵심 요약

• 웨스트워터 리소스(Westwater Resources)는 2026년 2분기 순손실이 430만 달러(주당 0.03달러)를 기록해 2025년 2분기의 390만 달러(주당 0.05달러) 대비 확대됐다고 발표했다.
• 2026년 6월 30일 기준 현금 잔액은 약 3,820만 달러다. 켈리턴(Kellyton) 1단계 프로젝트는 예상 개발 비용 2억 4,500만 달러 중 약 1억 3,000만 달러가 집행되었으며, 약 1,500만 달러의 예비비를 포함해 1억 1,500만 달러가 아직 미집행 상태다.
• 미국 수출입은행(EXIM)은 켈리턴 1단계 프로젝트를 위해 2,500만 달러 규모의 직접 대출을 승인했다. 해당 대출은 최종 계약서 체결 및 관례적인 마감 조건을 전제로 하며, 일시금이 아닌 건설 자금 인출 방식으로 자금이 집행될 예정이다.
• 켈리턴 1단계는 연간 약 1만 2,500메트릭톤의 구상코팅구상정제흑연(CSPG)을 생산하도록 설계되었다. 경영진은 추가 자금이 확보됨에 따라 2027년에 상업 생산이 시작될 수 있다고 밝혔다.
• 품질 인증(Qualification) 라인은 양산 전 시험용으로 1메트릭톤 이상의 CSPG를 생산했다. 웨스트워터는 2026년 상반기 동안 잠재적인 전기차 및 배터리 에너지 저장 장치 고객사에 샘플을 공급했다.
• 쿠사(Coosa) 프로젝트의 연방 환경 영향 평가 및 인허가는 현재 2027년 6월에 완료될 것으로 예상된다. 경영진은 2028년 말 또는 2029년 초 가동을 목표로 하고 있다.

주요 재무 데이터

사업 및 운영 실적

켈리턴은 미국 내 배터리급 천연 흑연 생산 기반을 구축하려는 웨스트워터 전략의 핵심으로 남아 있다. 회사는 품질 인증 라인과 R&D 연구소를 운영하는 한편, 2025년에 발주한 조달 기간이 긴 주요 장비에 대한 상세 설계 및 제조 작업을 지속했다.

품질 인증 라인은 제품 개발, 고객 샘플 제공, 품질 관리 테스트 및 임직원 교육을 지원한다. 이 라인은 향후 상업 운전에서 생산될 소재를 대표하는 CSPG를 1메트릭톤 이상 생산했다.

웨스트워터는 또한 배터리 에너지 저장 장치(ESS)용 천연 흑연 기반 음극재를 개발하고 있으며, 이에는 기존에 인조 흑연이 담당하던 성능 요구 사항을 충족하기 위한 저부팽창 소재가 포함된다. 상반기 동안 회사는 글로벌 리튬이온 배터리 제조업체 및 전기차·에너지저장 시장의 완성차 업체(OEM)에 샘플을 공급했다.

쿠사 프로젝트와 관련해 웨스트워터는 환경, 문화, 수문 및 지구화학 조사를 완료했다. 2026년 6월 15일 미국 육군 공병단(USACE)에 섹션 404 허가 신청서를 제출했으며, 6월 26일 공공 공고가 이어졌다. 또한 이 프로젝트는 연방 인허가 간소화 프로그램인 FAST-41에 따라 대상 프로젝트(covered-project) 지위를 획득했다.

경영진 전망

경영진은 켈리턴 1단계 총 개발 자본이 2억 4,500만 달러에 달할 것이라는 기존 전망을 유지하고 있다. 경영진은 현재 설정된 예비비와 물가상승 충당금으로 해당 예산 내에서 프로젝트를 완료하기에 충분할 것이라고 밝혔다.

2,500만 달러 규모의 EXIM 대출은 켈리턴 1단계에 배정되어 있다. 최종 조건이 체결되지는 않았으나, 경영진은 예상 자본 비용이 한 자릿수로 사모 채권 시장에서 관찰된 10%대 중반 금리보다 상당히 낮은 수준이라고 설명했다.

웨스트워터는 EXIM 승인 이후 3개의 추가 정부 지원 프로그램을 추진 중이다. 회사는 경쟁적인 프로세스와 기관별 절차 차이를 이유로 예상 결과나 일정을 밝히지 않았다.

경영진은 EXIM 자금 조달을 통해 켈리턴 프로젝트를 계속 추진하는 한편, 전체 자금이 확보되면 약 12개월의 완공 일정을 유지할 수 있을 것이라고 밝혔다. 회사의 목표는 여전히 2027년 상업 생산이지만, 1단계 자본 전체를 확보하기 위한 시한을 정하지는 않았다.

쿠사 프로젝트의 경우 FAST-41 대시보드는 현재 환경 영향 평가 및 인허가가 2027년 6월에 완료될 것으로 추정하고 있다. 경영진은 쿠사 프로젝트가 2028년 말 또는 2029년 초에 가동될 수 있다고 언급했다.

리스크 및 주요 점검 사항

• 켈리턴은 2026년 6월 30일 기준 1단계 개발 자본 중 1억 1,500만 달러가 아직 집행되지 않아 여전히 상당한 추가 자금 조달이 필요한 상황이다.
• EXIM 대출은 승인되었으나 최종 계약서 체결 및 관례적인 마감 조건이 남아 있다. 대출금은 공사 진행에 따라 순차적으로 인출될 예정이다.
• 켈리턴의 2027년 생산 목표는 지속적인 프로젝트 진행과 추가 자본 조달 여부에 달려 있다.
• 경영진에 따르면 필요한 NPDES(국가 오염물질 배출 감소 시스템) 허가가 발급될 때까지 쿠사의 건설 작업은 실질적으로 진행될 수 없다.
• 인편상 흑연 가격은 원산지와 운송 조건에 따라 웨스트워터가 구매하는 소재 기준 메트릭톤당 약 500~600달러 수준으로, 경영진이 역사적 저점으로 규정한 수준 부근에 머물러 있다.
• SK온 및 스텔란티스(Stellantis)와의 기존 오프테이크(장기 구매) 계약은 재협상이 진행 중이나, 경영진은 고객 관계가 여전히 견고하다고 밝혔다.

애널리스트 Q&A 주요 내용

경영진은 켈리턴이 고정 가격 항목, 단가 추정치, 이미 구매 또는 인도된 장비 등이 혼재되어 있다고 설명했다. 경영진은 총 2억 4,500만 달러의 1단계 비용 추정치에 대해 여전히 확신을 갖고 있다.

EXIM은 프로젝트 및 환경 검토를 포함한 주요 실사 절차를 완료했다. 남은 단계는 최종 대출 계약서 체결 및 마감 조건 이행이다. 자금 조달은 여러 차례 인출을 통해 자금을 사용하는 건설 자금 대출과 유사하게 운영될 예정이다.

경영진은 검토 중인 다른 3개 정부 지원 프로그램이 무엇인지 밝히지 않았다. 그러나 경영진은 웨스트워터의 수직계열화 전략이 켈리턴과 쿠사 모두에 대한 자금 조달 기회를 뒷받침할 수 있다고 밝혔다.

고객 품질 인증과 관련해 경영진은 스케일업(규모 확장) 리스크를 줄이기 위해 상업용 규모의 장비를 사용해 수 톤 단위 배치로 샘플을 생산했다고 강조했다. 회사는 이러한 접근 방식이 SK온 및 스텔란티스와의 오프테이크 계약 체결에 기여했다고 설명했으며, 해당 계약들은 현재 재협상이 진행 중이다.

실적 발표 컨퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

Operator

Hello, everyone. Thank you for joining us, and welcome to Westwater Resources, Inc. Second Quarter 2026. [Operator Instructions] I will now hand the conference over to Steve Cates, Chief Financial Officer. Steve, please go ahead.

Steven Cates

Thank you, operator, and good morning, everyone. Thank you for joining us today for Westwater Resources Second Quarter 2026 Business Update. Our Form 10-Q was filed earlier this week and is available in the Investors section of our website at westwaterresources.com. Joining me today on the call are Terence Cryan, our Executive Chairman; and Frank Bakker, our President and Chief Executive Officer. Both will be available to answer questions following our prepared remarks.

As a reminder, today's discussion will include forward-looking statements, including, but not limited to, future events and expectations, including projected demand for graphite products, expected time lines and costs related to the Kellyton Graphite Processing Plant and the Coosa Graphite Deposit, financing activities, permitting time lines and customer qualification efforts. These statements are subject to risks and uncertainties that could cause actual results to differ materially from management's current expectations. Please refer to our SEC filings and the cautionary language included in our press releases for additional detail.

With that, I'll turn the call over to our Executive Chairman, Terence Cryan.

Terence Cryan

Thanks, Steve, and good morning, everyone. This week marked a major step forward for Westwater, for Kellyton and for the build-out of American-made battery-grade natural graphite. On Monday, we announced that EXIM approved a $25 million loan to support continued development of our Kellyton Graphite Plant in Alabama.

EXIM's $25 million approval is more than a financing milestone. It's a clear recognition of the strategic importance of Kellyton and the role domestic graphite production can play in strengthening the U.S. critical mineral supply chain. For years, the United States has relied heavily on foreign sources of graphite and battery-grade graphite materials. Kellyton is being developed to help change that by advancing domestic processing capacity for graphite, a U.S. critical mineral essential to lithium-ion batteries, energy storage and advanced manufacturing. We are now one step closer to something the country urgently needs, American-made battery-grade natural graphite produced here in the United States for U.S. supply chains.

And importantly, the loan approval moves us one step closer to commercial production from Kellyton, which could commence as soon as next year. The loan was approved under EXIM's Make More in America Initiative, which supports domestic manufacturing projects tied to critical U.S. supply chains, and Kellyton fits the bill. For Westwater, this approval provides nondilutive capital to advance Kellyton from construction and equipment installation to commissioning and operational readiness.

As we shared in our first quarter call, we and our advisers have been actively engaged in D.C. in the pursuit of sourcing nondilutive, lower-cost sources of capital. The EXIM approval we received this week is a direct reflection of that ongoing effort. Our Kellyton Graphite Plant is an advanced physical asset with significant capital already deployed. Since inception, the company has invested approximately $130 million in Phase 1. We have buildings in place, equipment on site and on order, an operating qualification line, an R&D lab and a team advancing the technical and operational capabilities needed to support commercial production.

We believe that progress gives Westwater a 3- to 5-year first-mover advantage versus our competitors. In an industry where projects can take years to advance, the work already completed at Kellyton gives us a head start as the U.S. works to build domestic battery-grade graphite production capacity. The Kellyton plant is designed to produce coated spherical purified graphite, or CSPG, a battery-grade natural graphite material used primarily in lithium-ion batteries.

Phase 1 is designed to produce approximately 12,500 metric tons per year of CSPG. That is why EXIM's approval is so important. It supports the next stage of work at Kellyton and recognizes the strategic value of building this type of processing capacity here in the U.S. It also reflects the amount of work our team has already done to move Kellyton forward from engineering and equipment procurement to customer qualification and operational readiness.

At the same time, the EXIM approval is one step in a broader financing strategy. We are also continuing to pursue additional government funding sources and other financing alternatives to support the completion of Kellyton Phase 1 and beyond. Our financing objective is clear: secure the capital needed for Kellyton on the best terms available and begin producing American-made battery-grade natural graphite here in the United States. We have been disciplined, focused and persistent in our approach and the EXIM approval reflects that strategy. As we move forward, we will continue customer qualification activities at Kellyton and Coosa permitting and continue to advance our business.

With that, I'll turn the call over to Frank to provide an operational update.

Frank Bakker

Thank you, Terence, and good morning, everyone. As Terence mentioned, Kellyton remains central to Westwater's strategy to build U.S.-based production of battery-grade graphite. During the second quarter and first half of 2026, we continue to advance Kellyton at a measured pace. We oversaw detailed engineering and manufacturing progress related to long lead equipment ordered last year, and we are continuing to support its progress and delivery. We also continue to operate our qualification line and R&D lab at Kellyton. These capabilities are important because they allow us to continue product development, produce material for customer evaluation, support in-house quality control testing and train our team on the processes and equipment for future commercial operations.

To date, the qualification line has enabled Westwater to produce samples in excess of 1 metric ton of CSPG for use in preproduction evaluation and testing. The CSPG produced on the qualification line is representative of material we expect to produce in the future commercial setting, and we expect the line to support additional bulk sample production for customer qualification activities. Our R&D work also remains an important part of our customer engagement strategy. One area of focus is the battery energy storage market. We recognize that certain battery chemistries used in energy storage applications, including LFP, have historically relied heavily on synthetic graphite because of performance characteristics such as lower swelling.

That said, natural graphite has certain advantages, including higher energy density. Our R&D team is focused on developing a natural graphite-based anode material, including work aimed at developing lower swelling material that could potentially address opportunities in the energy storage market over time. This is not something we view as theoretical. It is part of the product development and qualification work taking place at Kellyton today. As the market evolves, we are ensuring Westwater is positioned to respond to customer needs across battery applications.

During the first half of 2026, Westwater provided product samples for evaluation and qualification to prospective customers in the electric vehicle and battery energy storage systems. Many of these prospective customers include large global lithium-ion battery manufacturers and original equipment manufacturers. We continue to explore additional offtake opportunities with prospective customers, and we will continue providing product samples to support their evaluation and qualification processes.

Turning to Coosa. We advanced permitting and technical work during the first half of the year. Coosa is intended to serve as a long-term domestic source of natural graphite flake concentrate for the Kellyton Graphite Plant. During the first half of 2026, we completed environmental, cultural, hydrologic and geochemical studies supporting federal and state-permitting efforts. These activities included wetland and stream delineations, jurisdictional determination activities, cultural resource surveys, habitat assessments and others across the project area.

On June 15, 2026, we submitted our Section 404 permit application to the U.S. Army Corps of Engineers. And on June 26, 2026, the Corps issued the project's public notice, formally beginning the public review process. Coosa also received covered project designation under the FAST-41 federal permitting program. FAST-41 is intended to improve the timeliness, predictability and transparency of the federal permitting process through publicly available permitting schedules and formal coordination mechanism. The current estimated completion date for environmental review and permitting as reflected on the FAST-41 dashboard is June 2027. That timing matters because Coosa is intended to support Kellyton over the long term as a domestic source of natural graphite feedstock. As we work to bring Kellyton closer to production, we are also advancing the resource that can support a more fully integrated U.S. graphite supply chain over time.

So, operationally, our priorities remain clear: continue advancing Kellyton, support customer qualification, progress Coosa through permitting and position Westwater to produce battery-grade natural graphite in the United States.

With that, I will turn the call over to Steve for a financial update.

Steven Cates

Thank you, Frank, and good morning, everyone. I'll provide a brief overview of our second quarter results, liquidity position and financing strategy.

For the second quarter of 2026, Westwater reported a consolidated net loss of $4.3 million or $0.03 per share compared with a consolidated net loss of $3.9 million or $0.05 per share for the same period in 2025. For the first 6 months of 2026, consolidated net loss was $9 million or $0.07 per share compared with $6.5 million or $0.09 per share for the same period in 2025. The increase in net loss was primarily due to costs associated with progressing permitting for the Coosa Graphite Deposit, higher stock-based compensation expense and greater product development costs, partially offset by additional interest income.

Product development expenses increased during the first half of the year as we continued equipment maintenance and enhancements on the qualification line, used raw material inventory and sample production and continued developing active anode materials. Exploration expenses increased as we advanced permitting related to the Coosa Graphite Deposit. General and administrative expenses increased primarily due to higher stock-based compensation, increased third-party services related to the evaluation of government funding opportunities and other service fees. From a liquidity perspective, Westwater had approximately $38.2 million in cash as of June 30, 2026.

During the first half of 2026, we continue to progress construction activities at Kellyton at a measured pace while seeking financing to fund the remaining construction of Phase 1. As of June 30, 2026, the company had incurred approximately $130 million of costs associated with Phase 1 of Kellyton. We continue to expect Phase 1 development capital of $245 million, of which $115 million has not yet been incurred. That amount includes approximately $15 million in contingency. We have and are currently pursuing potential government funding opportunities with the support of our advisers across multiple funding pathways, including engagements in D.C., proposal and application submissions and diligence processes.

As Terry discussed, EXIM's approval of a $25 million direct loan is an important step in our financing strategy, and we will continue working with our advisers to pursue additional government funding opportunities. The EXIM approval represents real progress in that strategy. While the loan remains subject to definitive documentation and customary closing conditions, it is an important step towards securing nondilutive capital to support continued development at Kellyton.

And I'd like to pause on that point for a moment. There's a saying I heard when I first joined Westwater. Luck may come to visit, but hard work and preparation makes it stay. That idea captures how we have approached this process. We have worked hard to position Westwater to pursue multiple funding pathways while maintaining flexibility and discipline. We are focused on nondilutive and lower cost capital where available. We are making decisions with long-term shareholder value in mind. The EXIM approval reflects that approach. It is not the end of the process. Our focus is clear: remain prepared, maintain flexibility and advance Kellyton towards commercial production as we secure additional capital.

With that, I'll turn the call back to Terry for closing remarks.

Terence Cryan

Thank you, Steve. Westwater is on the right path. EXIM's approval is an important milestone and the announcement by the President last Friday of our loan approval is a clear validation of the work our team has done to advance Kellyton and to put it right in the middle of the fairway in terms of what this administration is seeking to do in terms of domestic production of critical minerals.

At Westwater, our vision is clear: to be America's source for battery-grade graphite. EXIM's approval moves us one step closer to that objective. It supports our broader financing strategy, strengthens our ability to advance Kellyton and reinforces our first-mover advantage in the development of a U.S.-based battery-grade natural graphite production. We've been working to position the company with flexibility and discipline. That means pursuing nondilutive and lower cost capital wherever available. It means advancing Kellyton at a measured pace as we continue to successfully secure low-cost financing. It means continuing customer qualification work. It means supporting Coosa through permitting, and it means staying focused on the long-term opportunity in front of us.

The need to secure domestic supply chains and the importance of battery-grade graphite is clear. And as Kellyton is the most advanced graphite processing plant in North America, it is well positioned to help address that need. We appreciate the continued support of our shareholders, employees, partners and the communities where we operate.

Thank you again for joining us today. We look forward to keeping you updated as we continue advancing America's source for battery-grade graphite. Operator, we can now open the line for questions.

Operator

[Operator Instructions] Your first question comes from the line of Heiko Ihle with H.C. Wainwright.

질의응답

Heiko Ihle

It's hard to argue that we need Kellyton to ensure domestic supply, but I assume your vendors presumably know that, too. With costs at Kellyton, can you name which, if anything, still give you a bit of a headache related to pricing maybe?

Frank Bakker

Yes. Thank you, Heiko. So, on the -- for the construction cost, we have sufficient contingency in our forecast at completion of the project. So, if you look at the amount of money to be capital to be committed and if you take the contingency plus escalation that we have, we still have a 15% percentage there. So, I think we're looking pretty good on the forecast at completion for our project to complete it within the amount of $245 million total.

Heiko Ihle

Okay. So there is nothing really that where the pricing hasn't been set? Or what you're saying is the contingency should cover all of that? Because if it's the former, I guess the question is what components are they? What major ones?

Frank Bakker

Well, it's a mix of items. So for certain items, we have fixed pricing. For some items, we use unit rates to get to the estimated forecast at completion. Some items are already on order and purchased and actually delivered. So there's no more risk over there, of course. So, I'm comfortable with the contingency that we -- and the escalation that we still have in our forecast at completion that we can complete it within the $245 million.

Heiko Ihle

Okay. Fair enough. And then another thing, I think twice or maybe even 3 times on this call, you mentioned additional government funding sources. Can you give a bit more color on what departments, what entities you're approaching? And maybe I assume that's probably asking for a lot, a bit of a time line even?

Steven Cates

Heiko, thanks. I don't want to get into the specific programs, mainly because a lot of them are, kind of, competitive, right? And so we want to reserve that and not maybe give a road map to others that are seeking funding in the critical mineral space. But what I will say is that during the year and since we've engaged with our advisers, we've had about 4 initiatives going, EXIM was just one of those initiatives. The other 3 are still going and at various stages. Like I said at the Q1 call, I can't make comment on the ultimate outcome of those or the time line because we are dealing with the U.S. government and each one has a different protocol and pace at which they work. But you can rest assured this management team is not going to be the long pole in the tent. I mean we will move very, very quickly, and we'll move as quickly as these agencies can move.

Operator

Your next question comes from the line of Tate Sullivan with Maxim Group.

Tate Sullivan

Great to see the news from EXIM on Friday on the loan. And you're very clear in the release, but I mean, all the $25 million of funding is to Kellyton. Can you use any of that for Coosa?

Steven Cates

The use of proceeds are for Phase 1 of Kellyton. And so the $25 million is earmarked to advance Phase 1.

Tate Sullivan

Okay. And then I mean, it's just -- it will be great to see how quickly you can actually get those -- that EXIM funding in hand. You're clear in the earlier comments. I mean, it's loan documentation and customary closing conditions, but diligence, their diligence process is complete at EXIM to confirm, please?

Steven Cates

We've received the formal approval of the loan and to go through that was an extensive diligence process as far as looking at the project, environmental reviews and things like that. So, yes, what remains is the documentation as well as the customary kind of closing conditions we need to execute that loan.

Tate Sullivan

Is it reasonable? Or are you willing to put timing that you get all the proceeds of the loan, the full extension before the end of the year? Or I mean, are you reasonably confident much earlier?

Steven Cates

I think similar to what I had mentioned to Heiko, we're going to move as fast as EXIM can move as far as getting the documentation signed as well as accessing those loan proceeds. The way I would think about the loan proceeds is it's similar to a construction loan and construction draws as you move forward versus necessarily a onetime loan. Usually, you submit for draws to be able to draw down and purchase additional equipment or additional construction spend.

So, it might come in a little bit over time. But the goal right now is to get the documentation finalized and get the loan closed.

Tate Sullivan

Okay. And given you're already producing -- or have been for many years, CSPG samples to customers, you're a graphite flake purchaser, can you -- are you in a position to give any comments on recent graphite flake prices, please?

Steven Cates

Yes. I think what we're seeing in the market from a graphite flake perspective is we're still seeing them at what we would view as pretty much historic lows. There is still ample supply. And so we've been seeing prices somewhere in the -- depending upon where it's coming from and shipping, kind of, $500, $600 a ton range for the type of flake that we are purchasing.

So, we've seen them maintain a relatively low level right now, which is one of the reasons we're -- Coosa when it comes online, we'd like to be mining that in a much higher price environment. The forward curve for flake graphite as well as anode material is still rising, the estimates that are out there. And so from a Westwater perspective, it would be much more beneficial to be mining that graphite out of Coosa at a higher price environment than what we see today.

Tate Sullivan

Yes, it would be great to get more news from the government side on the FTC initiative or anything of that sort. But then on Coosa as well with the EIA permitting process, you mentioned by June 2027. Is there any site work you can do while that is ongoing? Or do you plan to dedicate more resources to Coosa in that review time line, please?

Frank Bakker

Yes. What we have done already quite a lot of drilling to determine our resource at Coosa. So we really need to wait for our NPDES permit to be issued to advance construction over there. So, looking at the overall time line with the permit being issued on June 2027, we're looking at Coosa being operational at the end of 2028, early 2029 at this moment.

Operator

Your next question comes from the line of Pat McCann with D. Boral Capital.

Patrick McCann

I guess my first question has to do with your discussions with the federal agencies. With -- you mentioned that the recent -- the EXIM loan is going to be for Kellyton. So, I'm wondering, as you have these discussions with other federal agencies, if Kellyton is kind of the leading factor in those discussions based on processing being the bottleneck in the supply chain, would you expect any near-term future funding commitments to similarly be earmarked for Kellyton first and foremost? And how does the Coosa asset also help to play into these discussions?

Terence Cryan

Thanks for your question, Pat. I think when we look at the various initiatives we have currently ongoing with the federal government, the fact that we have a vertically integrated strategy is really appealing to the government. And while the EXIM loan is dedicated towards progressing Kellyton, I certainly wouldn't rule out that other initiatives that we have ongoing could provide funding for Coosa. This is a very supportive environment we have for mining, probably the best environment we've had in decades in the U.S.

And again, the vertically integrated nature with us being able to provide our own feedstock for our processing plant, it's really attractive to the government. It's attractive to customers as well. So we're going to be confidential about the exact status of our discussions with those agencies until we have something definitive to say. But I'm looking forward to having that conversation.

Patrick McCann

Great. And then I was also wondering if -- how you expect the recent federal validation to help with the customer pipeline. I guess, during that process of being approved for the EXIM loan, how much verification work would you have to go through to validate your process and the success that you're having with the customer qualification lines. I guess how much does that help validate the process you have, I guess, for customers in addition to the fact that, of course, you're important from a strategic perspective.

But in terms of the success of your qualification line and kind of a proof point that -- I guess, that you know what you're doing, how does that help with your customer pipeline build?

Terence Cryan

Right. So, I think really from the beginning, we took a somewhat different approach than others when it came to producing customer samples. I mean going back 4 years ago, right out of the gate, we were running samples in 5-ton batches. We were not attempting to do this at a very small lab scale. And the reason we wanted to do that and produce samples on commercial scale equipment is because we wanted to take the scale-up risk off the table. Customers really like that approach. And I think it had a real bearing on the fact that we were able to put offtake agreements in place with SK On and with Stellantis.

Now those contracts are currently in process of being renegotiated. Our relationships with those customers remain strong as with a bunch of other customers. The fact remains that if you want anode material produced here in the United States in '27, 2028 or 2029, Westwater is really the only source that you have. And customers understand that. So, I feel very confident that as we move Kellyton forward towards completion and commissioning, we'll be sold out.

Operator

There are no further questions at this time. So, Pat, if you would like to ask a few more questions, please go ahead.

Patrick McCann

Well, I guess I'll throw another one in there. I was wondering if you could give any type of expectations or ideas around maybe what we might expect for the terms of the loan. I know that's -- nothing is final yet. But in broad strokes, is there any more you could say about what we should expect from that?

Steven Cates

Yes. Thanks, Pat. This is Steve. You're right. I mean, until we have the definitive documents signed and executed, I'm not going to give much details then. But obviously, when that gets signed and executed, those details will come out publicly. But I think broad strokes, what you could see is multiyear, obviously, you know the quantum that has been disclosed. From a cost of capital perspective, what we saw in the private market, the private debt markets is double-digit mid-teens type of cost of capital. This is well below that and much, much more attractive. I think it's easy to expect and estimate that we're talking about single-digit type of cost of capital. So, it's very attractive. But that's about as far as I'm willing to go at this time, but more to come when we get the documentation completed.

Patrick McCann

Excellent. And if I could just squeeze in one more, and this will be it for me. I was wondering if in terms of meeting the current target of getting to production during 2027, what do you think would be the point in 2026 where you need to have the full Phase 1 funding in place? I mean, should we just think about it in terms of add 12 to 14 months or 10 to 12 months to the point at which you get full funding for Phase 1 or when you would start production? How should we think about that time line and how soon you need to have everything in place in order to begin production during 2027?

Steven Cates

Right. Thanks, Pat. Yes, I think what we're still seeing with some of the time lines and us being able to put on -- put in some orders at the end of last year for some additional long-lead equipment items that we need. That was critical for us to maintain that 12-month time line once funding is complete. I think what the EXIM loan does, it allows us to continue to advance Kellyton and hold that 12-month time line. So right now, as we advance and raise additional capital, we're going to continue to progress Kellyton with the goal of getting that done and completed in 2027 and be able to have commercial production.

So, I don't think there's a set time line. Yes, I don't think there's a set time line because as we secure additional capital, we're able to take steps forward and try to maintain that time line.

Operator

There are no further questions at this time. I will now turn the call back to Terence for any closing remarks.

Terence Cryan

Thanks, everyone, for joining us today. We're happy to have an opportunity to keep you updated on our progress. We look forward to speaking with you soon on further progress. Good day.

Operator

This concludes today's call. Thank you for attending. You may now disconnect.