China’s Xi speaks with Trump by phone, discusses Taiwan and bilateral ties
TORONTO - Electra Battery Materials Corporation (NASDAQ:ELBM; TSX-V:ELBM) has restarted construction of its cobalt sulfate refinery after securing approximately US$82 million in project financing, the company announced Wednesday. The stock, currently trading at $0.98, has fallen 33% in the past week and 56% over the last year, according to InvestingPro data. The company carries a total debt of $51.88 million with a concerning debt-to-equity ratio of 1.38.
The brownfield expansion project aims to establish North America's first cobalt sulfate refinery, designed to produce 6,500 tonnes of battery-grade cobalt annually when operational. The facility is expected to be commissioned in 2027.
The financing package includes US$48 million in non-dilutive funding from government sources, with contributions from the U.S. Department of War, the Government of Canada, and Invest Ontario. The remaining funds come from equity financing completed in October.
"With infrastructure and equipment already in place, the restart of construction represents a major milestone for Electra," said Paolo Toscano, Vice President of Projects & Engineering, in the press release statement.
Current activities include finalizing detailed engineering, restarting piping, electrical, and instrumentation work, and issuing tenders for major mechanical packages. The company has engaged EXP to provide construction management support. Investors should note that Electra is scheduled to report earnings on November 13, with analysts maintaining a consensus "Buy" recommendation despite the company's financial challenges. InvestingPro analysis reveals a current ratio of just 0.05, indicating short-term obligations significantly exceed liquid assets.
The workforce is expected to increase substantially once major contracts are awarded, with full-scale construction planned for early 2026. Electra intends to provide an updated construction schedule and capital estimates in January.
The company has secured offtake arrangements with LG Energy Solution and feedstock supply agreements with Glencore and Eurasian Resources Group. The refinery is designed with a modular and flexible configuration to accommodate potential future expansion.
According to the company, the project aligns with U.S. and Canadian industrial policies aimed at strengthening domestic critical minerals processing capabilities and reducing dependence on overseas supply chains. InvestingPro data suggests the stock is currently overvalued compared to its Fair Value, with an overall financial health score rated as "WEAK." Investors seeking deeper insights into Electra's financial position and growth prospects can access over 10 additional ProTips and comprehensive metrics through InvestingPro's advanced analysis tools.
In other recent news, Electra Battery Materials Corporation announced it has secured $30 million through a private placement, with Cantor Fitzgerald Canada Corporation and ECM Capital Advisors Ltd. acting as co-lead agents. The company received strong interest from both existing shareholders and new institutional investors. Additionally, Electra Battery Materials has amended its restructuring terms for its cobalt sulfate refinery, converting approximately $41.3 million of outstanding secured convertible notes into about 55 million units. Each unit is priced at $0.75 and includes one common share and one warrant exercisable at $1.25 per share for 36 months.
Furthermore, Electra Battery Materials has signed a term sheet for C$17.5 million in proposed funding from Invest Ontario to support its refinery construction. H.C. Wainwright has reaffirmed its Buy rating on Electra Battery Materials, maintaining a price target of $2.20. In leadership developments, the company appointed Paolo Toscano as Vice President of Projects and Engineering, who will oversee the construction and commissioning of the refinery. Additionally, Jody Thomas, a former National Security and Intelligence Advisor to the Prime Minister of Canada, has been nominated to Electra's Board of Directors.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.