Teleconferência de Resultados do 2º Trimestre de 2026 da Westwater Resources (WWR): Empréstimo de US$ 25M do EXIM

Principais Destaques

• A Westwater Resources relatou um prejuízo líquido no 2º trimestre de 2026 de US$ 4,3 milhões, ou US$ 0,03 por ação, em comparação com US$ 3,9 milhões, ou US$ 0,05 por ação, no 2º trimestre de 2025.
• O caixa totalizou aproximadamente US$ 38,2 milhões em 30 de junho de 2026. A Fase 1 de Kellyton já incorreu em cerca de US$ 130 milhões de seu custo de desenvolvimento previsto de US$ 245 milhões, restando US$ 115 milhões ainda não incorridos, incluindo cerca de US$ 15 milhões em contingência.
• O EXIM aprovou um empréstimo direto de US$ 25 milhões para a Fase 1 de Kellyton. O empréstimo continua sujeito à documentação definitiva e às condições habituais de fechamento, com previsão de desembolsos em etapas conforme o avanço da obra, e não em uma única parcela.
• A Fase 1 de Kellyton foi projetada para produzir aproximadamente 12.500 toneladas métricas de grafite purificado esférico revestido por ano. A administração afirmou que a produção comercial pode começar em 2027, à medida que capital adicional for captado.
• A linha de qualificação produziu mais de 1 tonelada métrica de CSPG para testes de pré-produção. A Westwater forneceu amostras para potenciais clientes dos setores de veículos elétricos e de armazenamento de energia em baterias durante o primeiro semestre de 2026.
• A estimativa atual é de que a análise ambiental federal e o licenciamento de Coosa sejam concluídos em junho de 2027. A administração projeta o início das operações para o final de 2028 ou início de 2029.

Principais Dados Financeiros

Desempenho Operacional e dos Negócios

Kellyton continua sendo o centro da estratégia da Westwater para estabelecer a produção de grafite natural de grau de bateria nos EUA. A empresa deu continuidade aos trabalhos detalhados de engenharia e fabricação de equipamentos de longo prazo de entrega encomendados em 2025, enquanto operava sua linha de qualificação e laboratório de P&D.

A linha de qualificação apoia o desenvolvimento de produtos, amostras para clientes, testes de controle de qualidade e treinamento de funcionários. Ela já produziu mais de 1 tonelada métrica de CSPG representativo do material esperado para as futuras operações comerciais.

A Westwater também está desenvolvendo material de anodo à base de grafite natural para aplicações de armazenamento de energia em baterias, incluindo material de menor expansão projetado para atender aos requisitos de desempenho historicamente supridos pelo grafite sintético. Durante o primeiro semestre, a empresa forneceu amostras para potenciais fabricantes globais de baterias de íon de lítio e fabricantes de equipamentos originais (OEMs) nos mercados de veículos elétricos e armazenamento de energia.

Em Coosa, a Westwater concluiu estudos ambientais, culturais, hidrológicos e geoquímicos. A empresa apresentou um pedido de licença da Seção 404 ao Corpo de Engenheiros do Exército dos EUA em 15 de junho de 2026, seguido por um aviso público em 26 de junho. O projeto também recebeu o status de projeto coberto pelo programa federal de licenciamento FAST-41.

Perspectivas da Administração

A administração continua prevendo um capital total de desenvolvimento de US$ 245 milhões para a Fase 1 de Kellyton. Os executivos disseram que as reservas existentes para contingências e reajustes devem ser suficientes para concluir o projeto dentro desse orçamento.

O empréstimo de US$ 25 milhões do EXIM é destinado à Fase 1 de Kellyton. A administração descreveu o custo de capital esperado como sendo de um único dígito e substancialmente inferior às taxas na faixa de 15% observadas nos mercados privados de dívida, embora os termos finais ainda não tenham sido assinados.

A Westwater possui três iniciativas adicionais de financiamento governamental em andamento após a aprovação do EXIM. A empresa não forneceu resultados previstos ou cronogramas, citando processos competitivos e procedimentos distintos entre as agências.

A administração informou que o financiamento do EXIM deve permitir que Kellyton continue avançando, mantendo um cronograma de conclusão de aproximadamente 12 meses assim que o financiamento integral estiver disponível. O objetivo da empresa continua sendo a produção comercial em 2027, mas não estabeleceu um prazo final para obter todo o capital da Fase 1.

Para Coosa, o painel do FAST-41 estima atualmente a conclusão da análise ambiental e do licenciamento para junho de 2027. A administração afirmou que Coosa poderá entrar em operação no final de 2028 ou início de 2029.

Riscos e Pontos de Atenção

• Kellyton ainda exige financiamento adicional substancial, com US$ 115 milhões do capital de desenvolvimento da Fase 1 ainda não incorridos até 30 de junho de 2026.
• O empréstimo do EXIM foi aprovado, mas continua sujeito à documentação final e às condições habituais de fechamento. Espera-se que os recursos sejam sacados gradualmente conforme o avanço das obras.
• O objetivo de produção de Kellyton para 2027 depende do avanço contínuo do projeto e do acesso a capital adicional.
• A construção em Coosa não pode avançar de forma significativa até que a licença NPDES necessária seja emitida, segundo a administração.
• Os preços do grafite em flocos permanecem próximos a níveis caracterizados pela administração como mínimas históricas, entre aproximadamente US$ 500 e US$ 600 por tonelada métrica para o material comprado pela Westwater, dependendo da origem e do frete.
• Os acordos comerciais de aquisição (offtake) existentes com a SK On e a Stellantis estão sendo renegociados, embora a administração tenha afirmado que o relacionamento com os clientes permanece forte.

Destaques da Sessão de Perguntas e Respostas dos Analistas

A administração afirmou que Kellyton possui uma combinação de itens com preços fixos, estimativas por preço unitário e equipamentos já comprados ou entregues. Os executivos permanecem confortáveis com a estimativa do custo total de US$ 245 milhões para a Fase 1.

O EXIM concluiu seu principal processo de diligência, incluindo revisões do projeto e ambientais. As etapas restantes envolvem a documentação definitiva do empréstimo e condições de fechamento. Espera-se que o financiamento funcione de maneira semelhante a uma linha para construção, com os recursos sendo acessados em múltiplos saques.

A administração se recusou a identificar os outros três programas de financiamento governamental em consideração. No entanto, os executivos afirmaram que a estratégia verticalmente integrada da Westwater pode apoiar oportunidades de financiamento tanto para Kellyton quanto para Coosa.

Sobre a qualificação de clientes, a administração destacou que as amostras foram produzidas em lotes de várias toneladas usando equipamentos em escala comercial para reduzir o risco de ganho de escala (scale-up). A empresa afirmou que essa abordagem contribuiu para seus acordos comerciais com a SK On e a Stellantis, que estão sendo renegociados atualmente.

Transcrição Completa da Teleconferência de Resultados

Transcrição completa da teleconferência de resultados

Comentários da administração

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.

Perguntas e respostas

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.