UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 6-K
Report of Foreign
Private Issuer
Pursuant to Rule 13a-16 or 15d-16 of
the Securities Exchange Act of 1934
For the month of August 2024
Commission File Number 001-41489
enCore Energy
Corp.
(Translation of registrant’s name into English)
101 N. Shoreline Blvd. Suite 450, Corpus
Christi, TX 78401
(Address of principal executive offices)
Indicate by check mark whether the registrant
files or will file annual reports under cover of Form 20-F or Form 40F:
Form 20-F ☐ Form 40-F ☒
The following documents are being submitted herewith:
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
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enCore Energy Corp. |
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(Registrant) |
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| Date: August 14,
2024 |
By: |
/s/ Robert Willette |
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Name: |
Robert Willette |
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Title: |
Chief Legal Officer |
2
EXHIBIT 99.1
enCore Energy Provides Q2
2024 Results and Operational Update
NASDAQ:EU
TSXV:EU
www.encoreuranium.com
DALLAS, Aug. 14, 2024 /CNW/ - enCore Energy Corp.
(NASDAQ: EU) (TSXV: EU) (the "Company" or "enCore"), a uranium producer, today reports results from
the three and six month periods ended June 30, 2024. enCore continued to enjoy rising revenue due to increasing production and sales of
U3O8 ("yellowcake") in the first half of 2024. The Company commissioned the Alta Mesa In-Situ Recovery
("ISR") Central Processing Plant and Wellfield ("Alta Mesa") late in the quarter (June 13, 2024 NR) as its second
uranium producing facility in the United States ("US"), making enCore the only company with two uranium facilities in the US
currently producing yellowcake. The Company met its delivery commitments under contracts with the delivery of 410,000 pounds, partially
purchased and partially produced, of U3O8 during the six month period. enCore continued to move its pipeline
of projects ahead with permitting activities in south Texas and preparation for a drilling program in Wyoming.
Six Month Period Performance Highlights (in USD
unless otherwise noted):
- The Company recorded revenue
of $36 million from the sale of yellowcake under sales contracts with nuclear utility customers;
- Uranium production commencement
from two of its three plants in Texas within an eight-month time period making enCore the only company currently producing uranium at
more than one facility in the US;
- Contract deliveries of 410,000
pounds of U3O8 at an average sales price of $87.11 per pound fully meeting the Company's contractual commitments;
- The Company entered its seventh
uranium supply contract, in Q2 2024, with a US nuclear utility to deliver 200,000 pounds of U3O8 per year in 2028
and 2029 using a pricing structure assuring inflation adjusted realized prices above current spot prices presently in the low $80 per
pound range;
- The Company continues uranium
supply contract negotiations with US nuclear utilities with flexible inflation adjusted pricing designed to assure the Company of known
floor prices and allowing its participation in significant upward pricing.
Summary of Select Financial Highlights for the
Quarter and Six Months Ended June 30, 2024 and 2023:
(in thousands of US dollars)
| |
3 months ended |
|
6 months ended |
|
| |
June 30, 2024 |
June 30, 2023 |
June 30, 2024 |
June 30, 2023 |
| |
|
|
|
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| Revenue and other income: |
5,320 |
* |
35,714 |
* |
| Cost of goods sold |
8,323 |
* |
36,374 |
* |
| Gross Profit |
(3,003) |
* |
(660) |
* |
| |
|
|
|
|
| Expenses (Detail below) |
6,359 |
7,014 |
16,111 |
14,747 |
| Loss from Operations |
9,362 |
7,014 |
16,771 |
14,747 |
| Currency translation of |
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|
|
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| Subsidiaries |
1,369 |
(527) |
5,024 |
(1,197) |
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|
|
|
|
| Comprehensive Loss |
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|
|
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| Attributable to enCore |
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|
|
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| Shareholders: |
9,624 |
6,990 |
18,499 |
13,795 |
| |
|
|
|
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| Loss per share |
(0.05) |
(0.06) |
(0.08) |
(0.11) |
| * In 2023, the Company recorded a gain of $858,000 on the sale of its uranium investment for the three months ended June 30, and a gain of $1,959,000 for the six months ended June 30. This income was classified as investment income, rather than revenue, as the company had not yet commenced production. |
Revenue Discussion
The Company's sales of 410,000 pounds of yellowcake
were sourced from both purchased pounds and those produced at its Rosita In-Situ Recovery ("ISR") Central Processing Plant ("Rosita").
These purchased pounds increased the cost of goods sold. As Alta Mesa came on-line late in Q2 there were no sales of product from
Alta Mesa. Revenues are expected to increase materially during the second half of the year with Alta Mesa's production being the
major source of this expected increase.
Expense Discussion
The increase in expenses is primarily due to activity
associated with the start-up of Alta Mesa. Operational start-up inefficiencies at the Rosita Extension Wellfield also adversely
affected expenses. With both facilities in the early phases of start-up, they have incurred accelerated expenses and investments
crucial to fully achieving our growth strategy and meeting our operational capacity.
Alta Mesa Q2 Performance
On June 13, 2024 the Company announced initial production
from Alta Mesa. As this production commenced with only seventeen days remaining in the second quarter, no dried uranium was inventoried
during the quarter. Average wellfield solution head grades of 120 mg/L U3O8 achieved during the last
two weeks of the quarter indicated productivity at levels exceeding our expectations. Drilling has been continuous at Alta Mesa
as the Company plans on systematically increasing the number of injection and production wells producing in phases through the end of
the year and beyond.
Outlook and Subsequent Events
The Company's outlook is positive with significant
and increasing revenue from Alta Mesa production contributing to financial results in the second half of 2024 and beyond as additional
production wells are completed. The cost/revenue ratio is projected to decline as the Company increases production from Alta Mesa and
to a lesser extent Rosita for the remainder of the year. This trend is projected to accelerate as the Company expects to reach and
exceed one million pounds a year production rate in 2025.
Additional plant feed for Rosita will be developed
at the Upper Spring Creek Project where the Company has submitted various permit and amendment applications to the regulatory authorities
in anticipation of a first half start-up in 2025. Detailed confirmation drilling along with monitor and base well installation will
commence before the end of Q3 2024.
The nuclear industry outlook remains extremely positive
with demand projections outpacing supply for the foreseeable future driven in part by increased electrical demand from Artificial Intelligence
("AI") and the commitment of many sectors of the economy to achieve zero carbon. Regulatory actions and permitting delays, which
restrict or withdraw large uranium deposits from development and production, combined with geopolitical tensions, provide a positive backdrop
for uranium pricing. Current contracting conditions remain favorable, with contract pricing now higher at a spot price in the low
$80s than it was when the spot price reached its twelve-month high of $115 per pound.
Qualified Person
John M. Seeley, Ph.D., P.G., C.P.G., enCore's Manager
of Geology and Exploration, and a Qualified Person under NI 43-101, has reviewed and approved the technical disclosure in this news release
on behalf of the Company.
Shareholder Information
The Company's full quarterly and annual filings are
available on SEDAR+ at www.sedarplus.ca, on the U.S. Securities and Exchange Commission's EDGAR website at www.sec.gov and on enCore's
website at www.encoreuranium.com. Financial results were prepared in accordance with International Financial Reporting Standards,
as issued by the International Accounting Standards Board.
About enCore Energy Corp.
enCore Energy Corp., America's Clean Energy Company™,
is committed to providing clean, reliable, and affordable fuel for nuclear energy as the only United States uranium producer with multiple
production facilities in operation. The enCore team is led by industry experts with extensive knowledge and experience in all aspects
of In-Situ Recovery ("ISR") uranium operations and the nuclear fuel cycle. enCore solely utilizes ISR for uranium extraction,
a well-known and proven technology co-developed by the leaders at enCore Energy.
Following upon enCore's demonstrated production success
in South Texas, future projects in enCore's production pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project
in Wyoming. The Company holds other assets including significant New Mexico resources, non-core assets and proprietary databases.
enCore is committed to working with local communities and indigenous governments to create positive impact from corporate developments.
www.encoreuranium.com
Cautionary Note Regarding Forward Looking
Statements:
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.
Certain information contained in this news release,
including: any information relating to the Company being a leading uranium company, statements regarding future or potential production,
statements regarding the Company's anticipated increase in revenue from Alta Mesa production, statements regarding the Company's projected
cost/revenue ratio, statements regarding future plant feed development for Rosita, future nuclear industry outlook, and any other statements
regarding future expectations, beliefs, goals or prospects; may constitute "forward-looking information" and "forward-looking
statements" within the meaning of applicable Canadian and United States securities laws and regulations (collectively, "forward-looking
statements"). All statements in this news release that are not statements of historical fact (including statements containing
the words "expects", "is expected", "does not expect", "plans", "anticipates", "does
not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled",
"forecast", "budget" and similar expressions or variations (including negative variations) of such words and phrases,
or statements that certain actions, events or results "may", "could", "would", "might" or "will"
be taken) should be considered forward-looking statements. All such forward-looking statements are subject to important risk factors and
uncertainties, many of which are beyond the Company's ability to control or predict. Forward-looking statements necessarily involve known
and unknown risks, including, without limitation, risks associated with general economic conditions; adverse industry events; future legislative
and regulatory developments; the ability of enCore to implement its business strategies; including achieving expected levels of production
at Rosita and Alta Mesa in the planned time frame or at all; and other risks. A number of important factors could cause actual results
or events to differ materially from those indicated or implied by such forward-looking statements, including without limitation exploration
and development risks, changes in commodity prices, access to skilled mining personnel, the results of exploration and development activities;
production risks; uninsured risks; regulatory risks; defects in title; the availability of materials and equipment, timeliness of government
approvals and unanticipated environmental impacts on operations; litigation risks; risks posed by the economic and political environments
in which the Company operates and intends to operate; increased competition; assumptions regarding market trends and the expected demand
and desires for the Company's products and proposed products; reliance on industry equipment manufacturers, suppliers and others; the
failure to adequately protect intellectual property; the failure to adequately manage future growth; adverse market conditions, the failure
to satisfy ongoing regulatory requirements and factors relating to forward looking statements listed above which include risks as disclosed
in the Company's annual information form filings. Should one or more of these risks materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated,
believed, estimated or expected. The Company assumes no obligation to update the information in this communication, except as required
by law. Additional information identifying risks and uncertainties is contained in filings by the Company with the various securities
commissions which are available online at www.sec.gov and www.sedarplus.ca. Forward-looking statements are provided for the purpose
of providing information about the current expectations, beliefs and plans of management. Such statements may not be appropriate for other
purposes and readers should not place undue reliance on these forward-looking statements, that speak only as of the date hereof, as there
can be no assurance that the plans, intentions or expectations upon which they are based will occur. Such information, although considered
reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
View original content to download multimedia:https://www.prnewswire.com/news-releases/encore-energy-provides-q2-2024-results-and-operational-update-302221841.html
SOURCE enCore Energy Corp.
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/August2024/14/c7484.html
%CIK: 0001500881
For further information: For further information: William M. Sheriff,
Executive Chairman, 972-333-2214, info@encoreuranium.com
CO: enCore Energy Corp.
CNW 07:00e 14-AUG-24
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