[Foreign Language] Bonjour, mesdames et messieurs. Merci d'avoir patienté et bienvenue à la conférence téléphonique des résultats du troisième trimestre 2022 de 5N Plus. Présentement, les lignes des participants sont en mode d'écoute seulement. Après la présentation, il y aura une période de questions et réponses. Pour poser une question, appuyez sur l'étoile et le un sur votre clavier téléphonique. Si vous avez besoin d'assistance, veuillez appuyer sur étoile zéro. Je vais maintenant céder la parole à monsieur Richard Perron, chef de la direction financière. Thank you for standing by and welcome to 5N Plus Inc. third quarter 2022 results conference call. At this time, note that all participants are in a listen-only mode. After the speakers' remarks, there will be a question and answer session. To ask a question during the session, you will need to press star one on your telephone. If you require operator assistance, please press star zero. I would now like to hand the conference over to your speaker today, Richard Perron, Chief Financial Officer. Please go ahead, sir. Merci. Bonjour à toutes et à tous. Good morning, everyone, and thank you for joining us for our Q3 2022 results conference call and webcast. We'll begin with a short presentation, followed by a question period with financial analysts. Joining me this morning is Gervais Jacques, our President and CEO. We issued our financial results yesterday and posted a short presentation on the investors section of our website. I would like to draw your attention to slide 2 of this presentation. Information in this presentation and remarks made by the speakers today will contain statements about expected future events and financial results that are forward-looking, and therefore subject to risks and uncertainties. A detailed description of the risk factors that may affect future results is contained in our management's discussion and analysis of 2021 dated February 22nd, 2022, available on our website and in our public filings. In the analysis of our quarterly results, you will note that we use and discuss certain non-IFRS measures, which definitions may differ from those used by other companies. For further information, please refer to our management discussion and analysis. I will now turn the conference over to Gervais Jacques. Merci, Richard, et bonjour à tous. Welcome, everyone. Yesterday, we released our third quarter results with a 31% increase in revenues and Adjusted EBITDA of CAD 9.1 million, bolstered by our new and higher value-added products. We are quite pleased with these results, especially given the challenging and dynamic environment in which we have been operating. The revenue and Adjusted EBITDA growth compared to Q3 2021 reflects strong demand in specialty semiconductors for renewable energy and space applications. This is further supported by the strategic acquisition of AZUR SPACE in November last year. Performance Materials continues to deliver a strong performance, significantly above the same quarter last year. This is supported by dynamic pricing adjustments to mitigate the impact of inflation and improve operational competitiveness for pharmaceutical and health products. Our revenue and earnings growth in Q3 2022 are a testament to our ability to execute on our strategy to focus on value-added businesses and client partnerships. Part of that strategy is our commercial excellence program. Under that program, we recently signed two strategic agreements that further solidify our position as a leading supplier of specialty semiconductors. The first of these strategic agreements is the largest award in the history of 5N Plus. Our long-term partnership with First Solar is now reaching another level with this new multiyear agreement for the supply of semiconductor materials for the manufacturing of thin-film PV modules. Our annual production volume will increase by 35% in 2023 and by more than 100% in 2024, consistent with First Solar's own growth plans. We are definitely entering a unique period to support the world's clean energy transition and other technological advancements as an essential provider of sustainable solutions. We will be initiating production capacity ramp-up to address rapidly increasing demand in the renewable energy, solar space, and medical imaging markets. The second strategic agreement is the 10-year exclusive partnership with Sierra Space through our AZUR SPACE subsidiary, signed subsequent to quarter end. After several years of collaboration, we are thrilled to now begin a commercial relationship with Sierra Space, an American company at the forefront of space innovation. Under the terms of the agreement, we will produce a new solar cell. The strategic review of our operations remain ongoing during the third quarter. We previously announced our intention to halt production in Tilly, Belgium. The low-margin products produced at this facility will no longer be part of our offering. At this stage, we are contemplating two options for the site. An orderly closure following the Renault law process, or finding a third party willing to take over the site. We will keep the market informed should there be any important developments as this process follow its course. With respect to our Saint-Laurent project, which will expand the development and manufacturing of advanced II-VI-based semiconductors in Montreal, it continues to progress. We are currently performing the pre-operational verification process and operating the equipment with pressurized water. The project is now expected to be completed and fully commissioned during the fourth quarter of 2022, in time with the reception of tellurium feed in the first quarter of 2023. Capitalizing on our segmented approach to commercial partnering and value pricing strategy, we believe we are advantageously positioned in key fast-growing markets. Several of our key end markets are expected to sustain well above double digit growth rates over the coming years. Specifically, we expect high growth in the renewable energy and space sectors, supported by growing demand in both North America and Europe. We also expect significant growth in medical imaging applications. This is supported by technology advancement and medical imaging equipment manufacturers introducing photon counting detectors to replace scintillator technology, allowing significantly lower radiation and improve image-enhancing diagnostic accuracy. The successful integration of AZUR SPACE is also progressing as planned, a business which is now under the supervision of Roland Dubois. In addition to his appointment as Chief Commercial Officer, Roland has also assumed the leadership of our specialty semiconductors segment. A disciplined approach to the execution of our growth strategy is our top priority across our business segments. We will continue to execute on our commercial excellence program while extending into value-added markets and adding value-creating partnerships. As with the signed agreements with First Solar and Sierra Space, we continue to approach all business opportunities with discipline in terms of partners and project selection. This continues to be critical as we invest in our business to ramp up production capacity to capitalize on anticipated industry growth and increase our total addressable market. I will now hand over to Richard to discuss our results in more detail before we take questions from analysts. Richard, over to you. Thank you, Gervais. The company's key business sectors continued to outperform in the third quarter, despite macroeconomic and geopolitical uncertainties. This outperformance translated into significant revenue and adjusted EBITDA growth over the same quarter last year, supported by strong demand in the specialized semiconductor segment on the renewable energy and space, and the acquisition of AZUR SPACE. The renewal of our supply agreement with First Solar, as well as the agreement with Sierra Space, which Gervais spoke, both confirm the company is advantageously positioned in these markets. Regarding these two significant incremental supply contracts, it is important to note that we expect the net cash out that will be deployed from a CapEx perspective over the coming years to fulfill this incremental demand will not exceed, in terms of value, our typical annual depreciation charge for PPE. This is because either supported by our partners or well within our scope of expertise. Turning now to revenue growth, margin, Adjusted EBITDA for Q3. Revenue increased by 31%, reaching CAD 66.4 million, compared to CAD 50.8 million for the same quarter last year, reflecting our demand in specialty semiconductors from renewable energy space, supported by the acquisition of AZUR SPACE, as well as pharmaceutical and health and performance materials. Adjusted gross margin was favorably impacted by the product mix, reaching CAD 16.2 million compared to CAD 10.8 million in Q3 of last year. Adjusted EBITDA reached CAD 9.1 million compared to CAD 5.5 million in the same period last year. The Adjusted EBITDA increased by CAD 2.5 million under specialty semiconductors and CAD 1.7 million under performance materials, despite the impact of inflation supported by a favorable product mix. Now looking at annualized backlog. The backlog on September 30th represented 192 days of annualized revenue, an increase of 52 days or 37% over the backlog of June. The increase is attributable to favorable negotiations of long-term contracts under specialty semiconductors, confirming the near-term growth potential in renewable energy and solar space applications. With specialty semiconductors representing 297 days of annualized segment revenue, an increase of 102 days or 52% over the backlog of June. The backlog for performance materials represented 93 days of annualized segment revenue, a decrease of 6 days over the backlog of June. The decrease on the performance materials reflecting our intention to cease operations in Tilly, Belgium. Turning to expenses. Depreciation and amortization expenses in Q3 amounted to CAD 4 million compared to CAD 3 million for the same period of 2021. The increase is mainly explained by the acquisition of AZUR SPACE in Q4 2021. SG&A expenses in Q3 were CAD 6.5 million compared to CAD 4.7 million. The increase is mainly explained by the acquisition of AZUR SPACE as well as general inflation impacting various expenses and easing of restrictions related to COVID-19. Financial expense in Q3 2022 amounted to CAD 1.6 million compared to CAD 0.8 million. The negative impact is mainly due to the interest on long-term debt and imputed interest, which arose following the acquisition of AZUR SPACE, as well as the significant increase in interest rates noticed in Q3 2022, with similar impact on a year-to-date basis. In terms of income taxes, the company continues to be impacted by different tax assets applicable only in certain jurisdictions. Covering liquidity in Q3, cash generated by operating activities amounted to CAD 10.1 million compared to CAD 5.2 million in Q3 of last year, due to the positive changes in non-cash working capital. In Q3, cash used in investment activities totaled CAD 3.3 million compared to CAD 2.3 million in Q3 last year, mainly attributed to the timing of additions to PPE, such as Projet St. Laurent in Montreal, which was partially mitigated by the proceeds of CAD 2.8 million from the disposal of assets held for sale in the quarter. In Q3 of this year, cash used in financing activities amounted to CAD 3.3 million compared to CAD 0.2 million in Q3 of last year. The increase of CAD 3.1 million was mainly explained by the reimbursement of CAD 2.5 million of the credit facility in Q3 and an increase in lease payments. Now looking at gross and net debt. Total debt stood at CAD 123.5 million on September 30th from CAD 126 million at the end of Q2. However, net debt, after considering cash and cash equivalent, decreased by CAD 6.3 million to CAD 83.3 million at the end of September from CAD 89.6 million at the end of Q2. In conclusion, let me reiterate that we intend to continue to approach business opportunities with discipline in terms of partners and project selection to strategically position ourselves over the midterm and long term. The Sierra Space and the First Solar agreements are strong demonstrations of this commitment and strategic focus. We remain focused on our long term strategy to position 5N Plus for growth in value added markets and look forward to capturing value added growth opportunities. Thanks to our unique expertise we can bring in our targeted and rapidly growing end markets, whether for specialty semiconductors or performance materials. One last comment. In terms of adjusted EBITDA for the full year, no surprise, but we expect to reach the upper range of our yearly guidance well positioned into 2023. This concludes our presentations. Operator, back to you for the question period. Thank you, ladies and gentlemen. We will now begin the question and answer session. Should you have a question, please press star one on your touch tone phone. If you'd like to withdraw your request, please press star followed by the two. One moment, please. Your first question comes from David Ocampo from Cormark Securities. Please go ahead. Richard, I first want to start on your last comments there on the 2022 guidance, your expectation to come in the top end of the range of CAD 25 million-CAD 30 million. When I take a look at the year to date performance, you're at CAD 23.3 million. It would imply that if you do get to the top end, there is a pretty material step back in profitability from the Q2 and Q3 performance. Is there anything driving that or is there just a lot of conservatism baked into your recent guidance? It's a combination of conservatism plus the fact that historically Q4 has always been a bit more soft than the other quarters. With the acquisition of AZUR SPACE, there's a bit of unknown. Historically, AZUR SPACE has always been very strong in the second half and in particular in Q4, while this year seems to be a bit more evenly distributed throughout the year. Those are the main reasons for the, let's say, conservatism. Obviously, we're working definitely hard to beat it. Okay, that makes a lot of sense. You guys provided some revenue numbers for the Sierra contract, but you only provided volume guidance for the First Solar agreement. Can we expect the revenue to ramp up proportionally with the volumes, or is there gonna be some price decreases that's embedded in the First Solar contract? No, you can assume an increase in volume pretty much, in terms of revenue, aligned with the volume. There's been no pressure on prices. If anything, it's the other way around. The team this time is really about securing supply. It was not at all the same pressure on prices that we have experienced in the previous years. It's a completely different context now, very favorable to 5N. Okay. That's helpful. I guess when I'm thinking about the growth of 35% and 100%, is that based on 2022 volumes or year to date volumes that are annualized? No, it's on the full year 2022 perspective. Mm-hmm. Remember, in the previous years, what we've mentioned is that the current contract, out of which we're in the second year, it was backloaded. That increases over the best of the two years of the current contract. Got it. Last one for me, just on FX, just given all the changes that we've been seeing, and it's been quite topical, is there any material impact to you guys with the U.S. dollar increasing and the euro deteriorating? Well, it's definitely we're in two businesses where the USD is the functional currency for most of it, from a revenue perspective, and also for a lot of the actual raw material purchases and chemical purchases and all of that. For us, it's favorable in our case. Okay. That's it. I'll hand the call over. Thanks, guys. Thanks. Your next question comes from Michael Glen from Raymond James. Please go ahead. Hey, good morning. I just wanna hash out this First Solar agreement in a bit more detail. Look, if you're running somewhere between $40-$45 million annualized right now in 2022 for First Solar, we should think about that business, approaching $80-$90 million of revenue in 2024? As we've said, the volume's gonna be 100% more than what we're gonna achieve this year. Okay. The margins for that business, I know you don't explicitly break them out, but, you know, year to date for that segment, you're somewhere in the, call it between 20.5% EBITDA margin. Is the First Solar margin that we should think about, is it in line with that type of margin that you've reported? It's usually better than the average. Again, if I may say, Michael, I think that the context we are currently in with the geopolitical situation is very different than a couple of years ago. I think it is part of 5N Plus's strategy to really differentiate itself with the friendshoring strategy, talking, you know, being sure that we can connect furthermore with our customers while building our commercial partnership. I think this will benefit to 5N Plus going forward. I mean, I don't wanna. This is all obviously very positive, okay? I just wanna try to. Like, what can go wrong with this contract, basically? If you're looking out over the next two years, you know, I'm sitting here looking at my model, seeing, wow, like, this is gonna add quite a bit to EBITDA. But what, like, where are the risks embedded in terms of how this contract shakes out? I just wanna. Is there anything that you can speak about there where there might be some uncertainty? We see risk extremely limited for the following reasons. First Solar has the capacity to make their products, okay? They have new plants up and running. They have new ones coming up. They have a strong backlog. The agreement we have with them is they take or pay. The risks are extremely limited. Can you just hash that out a little bit more, the take or pay aspect of it? How exactly that works? It's a minimum volume commitment per year. Okay. That's in line with the numbers that you've disclosed then for the ramping? Yes. Yes. Mm-hmm. Okay. Then just on AZUR SPACE, can you disclose what AZUR SPACE's revenue expectation is for this year or what the current run rate for revenue is year to date for AZUR SPACE? We don't disclose by unit, as you know. If you recall, when we made the acquisition, we've mentioned that historically it's a business that does around EUR 60 million a year of sales. That's pretty much the pace that they're at for 2022. When you look into 2023 for AZUR, given everything that you have signed, customer pipeline. Yeah. Would you expect growth above EUR 60 million in 2023? Yes, exactly. Just remember, the AZUR SPACE business is different than the rest of our business. The business that we're locking in now is for like late 2023, 2024. Whatever we're gonna realize in 2022 was secured before the acquisition, okay? Everything that we're mentioning in terms of news announced, so it's incremental to what they were historically doing and that's to come in the coming years, 2023, 2024 and on. Okay. I'll jump out of queue. Thanks, guys. Good. Thanks. Your next question comes from Nick Agostino from Laurentian Bank Securities. Please go ahead. Yes. Good morning, everybody. I guess a few questions from me. First, on the corporate expense, it looks like this quarter, the number that you guys recorded somewhere around CAD 2.5-CAD 2.6 million. Just looking at my model, it seems like the run rate historically or in recent quarters is more like CAD 3.3 million. I'm just wondering, is that new number for Q3, is that sustainable or was just a one-time some one-time savings in the quarter? No. I suspect Q3 should be a typical quarter. Yeah. We have obviously different projects going on, and that triggers some corporate expenses. Like, but no, that should be pretty much no, that's the range. That should be a typical quarter. Okay. I appreciate that. Maybe for Gervais on this question here. I know when you joined the company, obviously you brought some good sales techniques and all that other good stuff to the firm. I'm just wondering, obviously, we've got a new commercial officer, I believe that's the title. You've got that new role implemented. Is there anything else that you guys have done in the last, say, nine months or so to change that's changing your sales approach, that's helping you guys deliver on the First Solar side, helping you guys deliver on the Sierra Space side? Is there anything you guys plan to implement, again, from a sales perspective, either the back half of 2022 or even into 2023 when it comes to contracts, new contracts and negotiations and all that good stuff? Well, thanks for the question. I think I would say with the arrival of Roland Dubois, what we're currently doing is one step further into market segmentation. Looking at the end market, looking at the needs and going back to our current customers and identifying future customers. When we're sitting down with them, we're looking at the end markets, we're looking at what we can bring in terms of competitive advantage. We're talking also about partnering in terms of R&D, which is identifying the pain for these organization and trying to look at where we can support them. You know, looking at how we can differentiate our products, which could be from the fact that we are, let's say, in a friend country, located where outside of China, and being able to provide, you know, security of supply for their long-term needs. Also looking at what can we bring in terms of ESG component as well. Those are the things that we're currently working with the current customers and the future customers to really differentiate from them with the current geopolitical context. In a nutshell, I will say we're probably halfway through in terms of deployment. We're still working on other potential partnership. We're also quite active with the big mining companies to incentivize them to, you know, to valorize their by-products to get access to more of these minor metals. That's the portfolio of activities that we're currently doing. Okay. Appreciate that color. Very helpful. Just one last question, maybe for Richard. Just wanna confirm on the bookings number for the quarter, that would include the First Solar contract but does not include Sierra Space, which would be part of the Q4 number. Just confirm that and I'll pass over the line. Thanks. Just very important, the backlog, it looks forward 12 months, so it does not obviously have all of First Solar's contract. It does not have all of Sierra's contract, and it's everything locked on September 30. You would have a portion of Sierra. The same thing on the bookings number? Bookings is the metric, yes. Okay. Okay, thank you. Your next question comes from Frédéric Tremblay from Desjardins. Please go ahead. Thank you. Good morning. The first question for me is on Europe. Just wondering if the energy crisis that we're seeing over there has had an impact on your manufacturing activities or if you're expecting any impact on your business outlook in that region. At this point, the short answer is no. What we've done is in order to mitigate any risk of I don't know, gas shortages or else, we have installed at our German facilities LNG capabilities in terms of storage and conversion that represents many days and then weeks of supply. Great. Great. Just on Performance Materials, you spoke about strong volume in health and pharma as well as dynamic pricing. I see that revenue for that segment in the quarter declined a little bit. Just wondering, what caused that. Is that, like, volumes from Tilly already sort of, declining or is there something else, another category that's- The main- -uh, not... Yes. The main cause. Of course. is definitely Tilly, the phase-out that we have initiated. Just something to remember. In general, on the Performance Materials, H1 is always better than H2. But in the present case, what you're referring to is mainly 2. Okay, perfect. That's helpful. Lastly for me on those new agreements with Sierra Space and First Solar, you did comment on CapEx. Was wondering if you could comment maybe on working cap, sort of inventories, how that might be impacted by that new piece of business, if there's any impact whatsoever. Definitely, especially in the second half of 2023 and then 2024, to have a slightly higher level of net working cap. Keep in mind that we'll have Tilly ultimately idled. Still not 100% sure, but it will likely be at equal level to today. Not an increase on the net basis.