Lightbridge expands partnership with Idaho lab

Lightbridge Corporation (NASDAQ:LTBR), a management consulting firm with a market capitalization of $182.61 million, has increased its financial commitment to a strategic partnership with Battelle Energy Alliance, LLC, the operator of Idaho National Laboratory. This development was detailed in a recent SEC filing. According to InvestingPro data, the company maintains a strong balance sheet, holding more cash than debt.

On Monday, Lightbridge and Battelle amended their existing agreement, raising the potential reimbursement to Battelle by approximately $600,000. The adjustment brings the total estimated cost of the collaborative work under the "Umbrella" Strategic Partnership Project Agreement to $2.6 million.

The partnership, initially formed on December 9, 2022, involves Lightbridge collaborating with the U.S. Department of Energy (DOE) and Battelle under an overarching agreement. This agreement outlines the scope of work and funding commitments for developing nuclear fuel technologies. The company’s robust financial position is evidenced by its impressive current ratio of 94.95, indicating strong ability to meet short-term obligations, as revealed by InvestingPro analysis.

Lightbridge is tasked with most of the project expenses, including reimbursing Battelle for costs and labor. In return, Battelle and the DOE are supplying materials for the creation of ingots and billets. Battelle’s responsibilities also include the fabrication of irradiation capsule hardware, assembly of experiments with fuel coupons, and the irradiation of these experiments in the Advanced Test Reactor (ATR).

The latest amendment, referred to as Modification No. 4, is part of a series of changes to the agreement, following previous amendments on May 23, 2023, March 26, 2024, and October 24, 2024. The project’s goal is to fabricate a delta-phase enriched uranium/zirconium alloy ingot suitable for extruding fuel coupon specimens according to Lightbridge Fuel™ specifications, and to irradiate these specimens at the ATR.

The financial commitment from Lightbridge to Battelle, post-Modification No. 4, is estimated to be around $6.8 million, excluding project contingencies. The terms outline a cost reimbursable basis for the duration of the project, which spans an initial seven-year term from the effective date of the agreements.

This information is based on a press release statement filed with the SEC. Lightbridge’s investment in this partnership reflects its ongoing efforts in the nuclear energy consulting sector, with the aim of advancing fuel technology research and development. The company’s stock has shown remarkable momentum, delivering a 263.71% return over the past six months. For deeper insights into Lightbridge’s financial health and growth prospects, including 12 additional ProTips and comprehensive valuation metrics, explore InvestingPro’s detailed research report.

In other recent news, Lightbridge Corporation reported a net loss of $11.8 million for fiscal year 2024, up from $7.9 million in the previous year. Despite the financial losses, the company saw a significant rise in its stock price, attributed to investor optimism around its advancements in nuclear fuel technology and strategic partnerships. The company plans to invest $17 million in research and development in 2025, focusing on its metallic fuel technology. This technology is expected to offer power uprates in both new and existing nuclear reactors.

Additionally, Lightbridge has entered into a memorandum of understanding with Oklo, exploring potential synergies in fuel fabrication and recycling. The company also successfully demonstrated its proprietary co-extrusion process at Idaho National Laboratory, an important step in its fuel development efforts. Lightbridge’s collaboration with the Department of Energy’s national laboratories continues to advance its research initiatives. Meanwhile, the company’s working capital stands at $39.9 million, with cash and cash equivalents of $40 million as of December 31, 2024. These developments underscore Lightbridge’s strategic focus on leveraging its technology in the growing nuclear energy market.

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