r/americanbattery

Using a spot price of 22K/MTU. Tonopah flats would generate 1+ Bill in annual cash flows by year 8 and start generating significant net positive cash by year 3.

Again, having a proven low cost tech in extraction and purification using unconventional techniques create a significant comfort room for investors. ABATs technology separates it from high cost spodumene and brine operators that are more sensitive to spot prices.

Looking for a rapid financing announcement following the feasibility report.

(disclaimer..yes I used AI to write down my own thoughts.. but the content is mine)

link for the call: Third Quarter Fiscal Year 2026 Earnings Call

After reading the full ABAT earnings call transcript, I think the market may still be misunderstanding what this company is becoming.

This was NOT a “lithium hype” call.

Management spent the vast majority of the presentation talking about:

• scaling recycling operations,
• operational efficiency,
• margin improvement,
• industrial expansion,
• and domestic critical mineral infrastructure.

The most important numbers from the quarter were not just the record $7.8M revenue (+64% QoQ), but the fact that cash operating costs only increased ~11%.

That is the real story here.

For the first time, ABAT achieved positive gross margin at its Nevada recycling facility. Ryan Melsert specifically emphasized that “many startups never get to” this stage. To me, that was one of the most important moments of the call.

ABAT increasingly sounds like a company trying to transition from a speculative lithium story into a real industrial recycling and critical minerals manufacturing business.

Another detail that stood out was the AI/data center angle.

Management explicitly stated that a significant portion of recent feedstock came from large energy storage systems supporting data centers and AI infrastructure. That potentially opens a much broader narrative than just EV battery recycling.

The company also confirmed:

• $38.5M cash,
• zero debt,
• no ATM usage during the quarter,
• and continued progress toward a second recycling facility in the Southeast U.S.

Meanwhile, the Tonopah Flats lithium project was discussed in a much more disciplined and less promotional tone:

• DFS progression,
• FAST-41 streamlined permitting,
• environmental studies,
• federal coordination.

No exaggerated timelines. No lithium price pumping. No overhype.

At the same time, risks absolutely remain:

• the company is still net-income negative,
• execution risk is high,
• detailed profitability guidance is still missing,
• second facility details are pending,
• and dilution/share compensation clearly remains a sensitive topic.

But overall, this call felt materially different from prior quarters.

Honestly, this sounded much more like an early-stage industrial infrastructure company than a typical speculative lithium junior.

Not financial advice. Just my interpretation after reading the full transcript.