Battery Mineral Resources Provides ESI Performance and Manufacturing Expansion Update
ESI's proposed Phoenix facility would approximately triple its manufacturing footprint, subject to completing the lease and related arrangements.
Sentiment and the balance of points
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Rhea-AI Summary
Battery Mineral Resources (BTRMF) reported higher first-half earnings at its wholly owned ESI Energy Services subsidiary and outlined a proposed manufacturing expansion.
For the six months ended June 30, 2026, ESI revenue was approximately C$16.4 million, up 51% from approximately C$10.9 million a year earlier. Income from continuing operations rose to approximately C$4.8 million from approximately C$1.5 million. Adjusted EBITDA, a supplemental earnings measure outside IFRS accounting standards, was approximately C$6.6 million versus approximately C$3.2 million.
The proposed Phoenix facility would approximately triple ESI's manufacturing footprint. Subject to completing the lease and related arrangements, equipment installation and relocation are expected to begin in December 2026, with full operations expected in early Q2 2027. The company expects the expansion to increase capacity and improve operating efficiencies.
How this balance works
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It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Moderate pointESI revenue increased 51% to approximately C$16.4 million for six months ended June 30, 2026, versus 2025.
- Moderate pointESI continuing-operations income rose to approximately C$4.8 million for first-half 2026, versus approximately C$1.5 million in 2025.
- Moderate pointESI adjusted EBITDA reached approximately C$6.6 million for first-half 2026, versus approximately C$3.2 million in 2025.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Proposed Phoenix expansion would approximately triple ESI's manufacturing footprint and increase manufacturing capacity.
- Minor point. Forward-looking: it has not happened yet and may not happen.Installation and relocation are expected in December 2026, with full operations expected in early Q2 2027.
- Minor point. Forward-looking: it has not happened yet and may not happen.BMR expects the completed expansion to improve efficiencies, increase vertical integration and accelerate new product development.
Negative
- Moderate pointPhoenix expansion remains proposed and subject to completion of the lease and related arrangements.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Vancouver, British Columbia--(Newsfile Corp. - September 29, 2026) - Battery Mineral Resources Corp. (TSXV: BMR) (OTCQB: BTRMF) (the "Company" or "BMR") provides an update on its wholly owned subsidiary, ESI Energy Services Inc. ("ESI"), including its performance for the six months ended June 30, 2026 and the proposed expansion of its manufacturing operations in Phoenix, Arizona.
ESI Performance and Manufacturing Expansion Update
As previously reported, for the six months ended June 30, 2026, ESI generated revenue of approximately C
To provide additional information regarding ESI's operating performance, the Company is also reporting Adjusted EBITDA for ESI. Adjusted EBITDA for the six months ended June 30, 2026, was approximately C
*Adjusted EBITDA is a non-IFRS financial measure. This measure does not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures presented by other issuers. See "Non-IFRS Financial Measure" below for additional information and a reconciliation of Adjusted EBITDA to income from continuing operations.
Laz Nikeas, CEO of BMR, commented:
"ESI continues to see increased demand for its products and services. In 6M 2026, ESI generated revenue growth of approximately
ESI continues to advance its manufacturing expansion plans and is in the process of finalizing arrangements for a proposed new facility in Phoenix. Subject to completion of the lease and related arrangements, equipment installation and relocation activities are expected to begin in December 2026, with the facility expected to become fully operational in early Q2 2027. The proposed facility would approximately triple ESI's current manufacturing footprint, providing greater manufacturing capacity, improved production flow and additional space to support its expanding portfolio of specialized energy equipment.
If completed as planned, the expanded facility is expected to provide ESI with the infrastructure and flexibility to scale production, increase vertical integration and improve operating efficiencies, accelerate new product development and pursue growth opportunities across its existing and emerging markets.
Non-IFRS Financial Measure
This news release includes Adjusted EBITDA, a non-IFRS financial measure that has not been prepared in accordance with International Financial Reporting Standards ("IFRS"). Adjusted EBITDA does not have a standardized meaning prescribed by IFRS and therefore may not be comparable to similar measures presented by other issuers. It is provided as supplemental information to assist investors in understanding ESI's operating performance and should not be considered in isolation or as a substitute for financial information prepared in accordance with IFRS.
Adjusted EBITDA: Adjusted EBITDA is defined as income from continuing operations before foreign exchange gains and losses, net interest expense, income taxes, depreciation and amortization and intercompany transactions. Management believes Adjusted EBITDA provides supplemental information for assessing the operating performance of ESI's underlying operations.
Reconciliation of Income from Continuing Operations to Adjusted EBITDA
| (C$ millions) | 6M 2026 | 6M 2025 |
| Income from continuing operations | 4.8 | 1.5 |
| Foreign exchange loss (gain) | 0.3 | (0.3) |
| Interest expense (net) | 0.3 | 0.5 |
| Income tax expense | 0.0 | 0.0 |
| Depreciation and amortization | 1.2 | 1.3 |
| Intercompany transactions | 0.0 | 0.2 |
| Adjusted EBITDA | 6.6 | 3.2 |
Note: Amounts may not sum due to rounding.
Adjusted EBITDA has been calculated using ESI financial information prepared on a basis consistent with the ESI segment information previously disclosed in the Company's consolidated financial statements.
About ESI Energy Services Inc.
ESI Energy Services Inc., operating under the brand Ozzies, Inc., is a designer and manufacturer of specialized equipment serving the renewable and conventional energy sectors. Headquartered in Phoenix, Arizona, ESI provides equipment leasing, sales and manufacturing solutions supporting large-scale solar, wind, oil and gas, and utility infrastructure projects. ESI is a wholly owned subsidiary of Battery Mineral Resources Corp.
About Battery Mineral Resources Corp.
Battery Mineral Resources operates the Punitaqui Mining Complex, a historic copper, gold, and silver-producing mine in the Coquimbo region of Chile. The Company's portfolio also includes
For more information, please contact:
Lazaros Nikeas, CEO
Phone: +1 (672) 887-5010
Email: info@bmrcorp.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities laws. Forward-looking information contained in this news release includes, but is not limited to, statements regarding ESI's ability to finalize arrangements for and enter into a lease for the proposed Phoenix facility; the anticipated timing of equipment installation and relocation activities and the proposed facility becoming fully operational; the anticipated size of the proposed facility relative to ESI's existing manufacturing footprint; the anticipated manufacturing footprint, manufacturing capacity, production flow, vertical integration, operating efficiencies and product development benefits of the proposed facility; and ESI's ability to pursue growth opportunities across its existing and emerging markets.
Forward-looking information is based on management's reasonable expectations and assumptions as of the date of this news release, including assumptions regarding ESI's ability to successfully negotiate and enter into a lease and related arrangements for the proposed Phoenix facility on acceptable terms and within the anticipated timeframe; completion of equipment installation and relocation activities substantially as planned and without material disruption to ESI's operations; the availability of sufficient capital, equipment, contractors, labour and other resources to complete the proposed facility expansion and relocation; the proposed facility providing the anticipated manufacturing footprint, manufacturing capacity, production flow, vertical integration, operating efficiencies and product development benefits; and continued customer demand in the markets served by ESI.
Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied by such forward-looking information. Such risks and uncertainties include, among others, the possibility that ESI may not enter into a lease for the proposed Phoenix facility on acceptable terms or within the anticipated timeframe; changes to the proposed facility, relocation plan or anticipated schedule; delays, cost increases or operational disruptions associated with the facility expansion, equipment installation or relocation activities; ESI's ability to realize the anticipated manufacturing footprint, manufacturing capacity, production flow, vertical integration, operating efficiencies and product development benefits of the proposed facility; and changes in customer demand and market conditions in the industries served by ESI. Additional risks are described in the Company's continuous disclosure filings available under its profile on SEDAR+.
The foregoing list of risks and uncertainties is not exhaustive. Although the Company believes that the assumptions and expectations reflected in the forward-looking information are reasonable as of the date of this news release, there can be no assurance that such information will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking information. The forward-looking information contained in this news release is made as of the date of this news release. Except as required by applicable securities laws, the Company undertakes no obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/316705
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How did Battery Mineral Resources' ESI subsidiary perform in the first half of 2026?
ESI generated revenue of approximately C$16.4 million for the six months ended June 30, 2026, up 51% from approximately C$10.9 million in the corresponding 2025 period. Income from continuing operations was approximately C$4.8 million versus approximately C$1.5 million, while adjusted EBITDA was approximately C$6.6 million versus approximately C$3.2 million.
When is Battery Mineral Resources' proposed ESI Phoenix facility expected to open?
The proposed facility is expected to become fully operational in early Q2 2027. Equipment installation and relocation activities are expected to begin in December 2026, subject to completion of the lease and related arrangements. The facility would approximately triple ESI's current manufacturing footprint.
How does Battery Mineral Resources define ESI's adjusted EBITDA?
ESI's adjusted EBITDA is income from continuing operations before foreign exchange gains and losses, net interest expense, income taxes, depreciation and amortization, and intercompany transactions. It is a non-IFRS measure without a standardized meaning and may not be comparable with similarly named measures from other issuers. It is supplemental, not a substitute for IFRS financial information.