Base Carbon Inc. (BCBN:CA) Investor Town Hall Call (Transcript)

2025-09-30 16:14:46 ET

Base Carbon Inc. - Special Call

Company Participants

Michael Costa - CEO, Founder & Director
Wesley Fulford - President

Presentation

Michael Costa
CEO, Founder & Director

I am Michael Costa, CEO of Base Carbon, I am here with Wes Fulford, our President. We're going to run a very similar format that we've done in similar calls like this. As usual, we know how busy everybody is and very, very grateful for everybody taking the time out of their day on a Tuesday morning to meet with us. I know a lot of people are going to be listening to the recording as well. So thank you guys for taking the time out. Whatever time of day it is for you guys.

To frame this call, we've spent a lot of time on prior calls talking about the margin of safety based investing, the execution within our portfolio and the manner in which we've allocated capital in the initial turn of capital into this operating portfolio. All of that's very, very intact. And everybody here has either listened to us live, talk about this or has listened to us on these recordings, talk about the way we think about allocating the value of the risk of this firm's capital into this developing market.

As I've said, all of that's incredibly intact. But I think what we're ready to begin talking about today because the market has started to move there as our expectation has been, is to talk about what's really exciting us in the upside of this business. We've talked to you guys repeatedly in our -- about our projects in this initial 3 projects, the initial turn of the capital in this business and all equity capital financed by the way, every dollar in our project is equity financed. We've talked repeatedly about how we've protected the downside. We've talked about how we've allocated capital so that we can turn our portfolio thoughtfully and efficiently. And we've told everybody how we've had multiple options and optionality to the upside.

The upside is starting to come to the fore for us. And it's -- we're both excited for it. And as I said, grateful for it, but it's also very humbly, what we expected. We've measured thrice, we've cut once. And we're starting to get to the point in time where we have real upside in this business, and we're very, very excited about it.

The -- when we talk about upside. What we see is the potential for multiples of money and significant price expansion. And I'm also getting -- I'm getting a text message from our lawyers right now that I didn't say anything about forward-looking statements, please be mindful that this presentation will have forward-looking statements. So now that the lawyers have been have satisfied, I can carry on. In any event, the last call we had in May, we did about around share price. I think our share price is around $0.84. We've traded in a range since then. We're sitting here 4 months after that.

What's transpired in the time between now and 4 months ago is we've had significant advances in the project portfolio and we've had significant advances in the marketplace overall in terms of the optionality of our business. I want to also keep in mind and have people keep in mind that this -- and I think it's really lost on our business being in the junior market is -- and I challenge anybody on this call to go find more than 1 or 2 that might be similar to our business that our junior market businesses that generate free cash flow they have no debt and they've never had debt on their balance sheet. They have a significant cash balance in which they operate their business and support their projects.

They have no significant contingent liabilities across their business, i.e., we're not a junior mine that needs to go out and raise hundreds and hundreds of millions of dollars to have a chance of generating revenue and free cash flow. We do that now that has "near mine" -- I will use the same analogy, near mine expansion optionality in virtually all of their projects. It just -- this kind of business doesn't exist in our opinion. And I think that it's the fact that environmental markets and carbon markets are starting to be understood and priced not only by our shareholder base and the investors that are prospectively looking at our business but by markets overall and what we're seeing just in the broader marketplace in the carbon markets sets us up incredibly well for the next 6, 12, 24 months in this business, but also in the marketplace.

All of that said, I think that to use the -- to probably gloss over it a little bit more than one needs to. We're way closer to the bottom of the market for the perception of our business, environmental markets businesses, carbon businesses. And we have material upside events that we've been playing for. We've been playing for since the day we started this business 4 years ago is what we underwrote this book for and they're coming to fruition. And the first one that we've spent some time -- we spend a lot of time in our disclosures preempting people on this, and we're now ready to start talking about it in detail where we're at in terms of the CORSIA market.

So with that, I know people are probably more interested in hearing about that than me right now on this. So I will pass it over to Wes and to talk about CORSIA.

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