Lightbridge (LTBR) investor relations material

Industry context and technology overview

• Global plastic production is about 500 billion pounds, with polypropylene accounting for 200 billion pounds due to its versatility and low density, making it widely used but difficult to recycle.

• Traditional recycling methods struggle with polypropylene due to diverse feedstock, leading to low-quality recycled products; PureCycle uses a proprietary dissolution process licensed from Procter & Gamble to achieve high-purity recycled resin.

• The dissolution process selectively dissolves polypropylene, producing pellets nearly identical to virgin material and enabling applications in automotive, packaging, and consumer goods.

• Regulatory trends in states like California, New Jersey, and Oregon favor physical recycling processes over chemical recycling, supporting the company's approach.

• Third-party credits (ISCC PLUS) for recycled content are trading at premiums, enhancing margins for high-quality recycled polypropylene.

Operations, facilities, and product applications

• The Ironton, Ohio facility, with a nameplate capacity of 107 million pounds per year, is in commercial production and expects to ramp up output through 2026.

• Vertical integration includes a sorting facility in Denver, PA, which allows for flexible feedstock sourcing and improved cost efficiency.

• The company has demonstrated the ability to produce a wide range of products, including stadium cups, automotive bumpers, and flexible packaging films, with certifications from GreenCircle and the Association of Plastic Recyclers.

• Compounding capabilities enable customization of melt flow and product grades, allowing direct supply to major brands and converters.

• Co-products from the process, such as polyethylene and additives, are also sold into industrial markets, maximizing value from all output streams.

Growth strategy and financial outlook

• Revenue has been generated for several quarters, with expectations for material ramp-up in 2026 as Ironton approaches full utilization.

• Expansion plans include new facilities in Rayong, Thailand (mechanically complete by end of 2027) and Antwerp (targeted for a year later), leveraging more capital-efficient, integrated petrochemical sites.

• Gen 2 facility design aims for 500 million pounds capacity, significantly reducing fixed and variable costs per pound and positioning the company as a low-cost global producer.

• Regulatory tailwinds from minimum recycled content laws in California (SB 54, 2027) and Europe (PPWR) are expected to drive demand.

• Recent capital raises and project financing support the growth strategy, with a focus on scaling production and driving down costs over the next five years.