Pilot Program Has Processed 13 Metric Tonnes
of Battery Graphite
Feasibility Study Underway with Samuel
Engineering
Exploration and Development Drill Program
Underway at Coosa Graphite Deposit
Westwater Resources, Inc. (NYSE American: WWR), an
explorer and developer of U.S. mineral resources essential for
batteries for energy storage, today announced its results for the
quarter ended March 31, 2021.
“As I mentioned in our 2020 year-end earnings release in
February, we had an immensely successful 2020, and I am very proud
to state the first quarter ended March 31, 2021 has continued this
trend,” said Chris Jones, CEO of Westwater Resources. “The
President signed a declaration naming graphite critical to the
safety and security of the United States. We believe this
declaration, and the actions expected to follow it, will have a
significant positive impact on our ability to develop and build our
graphite business.”
“The definitive feasibility study for the Coosa Graphite Project
processing facility is underway and, when completed at mid-year
2021, will provide detailed specifications and inform the detailed
engineering work we need to execute prior to construction,” Jones
continued. “This design work is expected to be used to start
construction of the plant toward the end of 2021. At this time, we
have processed over 13 metric tonnes of our battery product
material during our pilot program, and the three products we
produced can go to potential customers for testing.”
“Exploration and development drilling on the Coosa Graphite
Deposit began in April 2021,” Jones concluded. “We are expanding
our knowledge of the graphite deposit with this 10,000-foot
program. Assays for both graphite and vanadium, an important alloy
material for high strength and tool steels, will be performed and
integrated into our geologic model, then used to re-optimize the
extraction of the resource and re-estimate the deposit economics.
I’m thrilled with the progress we’re making, none of which could
have been accomplished without the hard work of our dedicated and
innovative management team and drilling contractor.
Financial Summary
($ in 000's, Except Per
Share)
Q1
2021
Q1
2020
Variance
Net Cash Used in Operations
$(4,850)
$(3,455)
40%
Product Development Expenses
$(1,823)
$(126)
n/m
General and Administrative
Expenses*
$(2,084)
$(1,779)
17%
Arbitration Costs
$(1,532)
$(669)
129%
Net Loss
$(5,390)
$(3,287)
64%
Net Loss Per Share
$(0.19)
$(0.82)
-77%
Avg. Weighted Shares
Outstanding
28,597,938
4,004,948
614%
* General and Administrative Expenses for
the three months ended March 31, 2020, includes $417 thousand of
expense attributable to discontinued operations.
- Net Cash Used in Operations. Net
cash used in operating activities was $4.9 million for the three
months ended March 31, 2021, as compared with $3.5 million for the
same period in 2020. The $1.4 million increase in cash used was
primarily due to increased graphite product development expenses,
general and administrative expenses, and arbitration costs in 2021
compared to 2020, offset by the elimination of costs from
discontinued operations and an increase in cash from working
capital items of $0.6 million.
- Product Development Expenses. For
the three-month period ended March 31, 2021, $1.8 million was spent
on product development. Of that, approximately $1.2 million related
to the operation of our graphite processing pilot program with the
remaining attributable to product testing and other lab work,
shipping, travel, and other auxiliary costs associated with the
Coosa Graphite Project.
- General and Administrative
Expenses. For the three months ended March 31, 2021 general
and administrative expenses increased by $0.3 million from the
respective period in 2020. The difference is primarily due to
increased legal and consulting expenses related to the Company’s
Coosa Graphite Project.
- Arbitration Costs. During the
first quarter of 2021, Westwater incurred arbitration related legal
and expert consulting costs of $1.5 million. This represents an
increase of 114% or $0.8 million in costs associated with the
Request for Arbitration against The Republic of Turkey compared to
the first quarter of 2020.
- Net Loss. Our consolidated net
loss for the three months ended March 31, 2021 was $5.4 million, or
$0.19 per share, as compared with a consolidated net loss of $3.3
million, or $0.82 per share for the same period in 2020. The $2.1
million increase in our consolidated net loss from the respective
prior period was largely the result of an increase in product
development costs, general and administrative costs and arbitration
costs, offset by the elimination of $1.1 million in costs from
discontinued operations.
- Cash and Working Capital. On March
31, 2021 the Company’s cash balances were $117.9 million and the
Company had working capital of $115.1 million, which represented an
increase of $66.8 million from a working capital balance of $48.3
million at December 31, 2020. This increase in working capital was
primarily the result of a higher cash balance from the sale of
shares of common stock for net proceeds of $72.2 million pursuant
to our Controlled Equity OfferingSM Sales Agreement with Cantor
Fitzgerald & Co. and our Purchase Agreement with Lincoln Park
Capital, LLC.
- Shares Outstanding. Total shares
outstanding are 32,336,315 as of May 12, 2021.
Conference Call & Webcast
The Company will hold a conference call to discuss its financial
results for the first quarter ended March 31, 2021, and the results
of business activities during the first quarter, on Thursday, May
13, 2021 at 11:00 AM EDT (9:00 AM MDT and 8:00 AM PDT).
During the call, in addition to financial results, management
will discuss the company’s progress at its Coosa Graphite Project
in Coosa, AL, recent milestones at its pilot plant and the
President’s February 24, 2021 Executive Order that seeks to provide
for more resilient supply chains to revitalize and rebuild domestic
manufacturing capacity.
DIAL-IN-NUMBERS:
- +1 (800) 319-4610 (US and Canada)
- +1 (604) 638-5340 (international)
- Conference ID: Westwater Resources Conference Call
Replay Numbers
- +1 (855) 669-9658 (US and Canada)
- +1 (412) 317-0088 (international)
- Replay access code 6297
Hosting the call will be Christopher M. Jones, President and
Chief Executive Officer of Westwater Resources, who will be joined
by Jeffrey L. Vigil, Vice President-Finance and Chief Financial
Officer, and Dain McCoig, Vice President of Operations. Mr. Jones
will present an update on the Company’s business position,
including an update on the Coosa Graphite Project and a review of
the operations of the pilot program. Mr. Vigil will review the
financial results and financial condition of the Company. Mr.
McCoig will be available for questions as part of the call.
The conference call presentation will also be available via a
live web cast through the Company’s website,
www.westwaterresources.net.
About Westwater Resources
Westwater Resources (NYSE American: WWR) is focused on
developing battery-grade graphite. The Company’s projects include
the Coosa Graphite Project — the most advanced natural flake
graphite project in the contiguous United States — and the
associated Coosa Graphite Deposit located across 41,900 acres
(~17,000 hectares) in east-central Alabama. For more information,
visit www.westwaterresources.net.
Cautionary Statement
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks, uncertainties and
assumptions and are identified by words such as "expects,"
"estimates," "projects," "anticipates," "believes," "could,"
“scheduled,” and other similar words. All statements addressing
events or developments that WWR expects or anticipates will occur
in the future, including but not limited to the commencement of
operations at the Company’s proposed pilot program facilities,
future production of battery graphite products, future financing
activities and financial resources, and activities involving the
Coosa Graphite Project and the Coosa Graphite Deposit. Because they
are forward-looking, they should be evaluated in light of important
risk factors and uncertainties. These risk factors and
uncertainties include, but are not limited to, (a) the Company’s
ability to successfully operate a pilot program capable of
producing battery grade materials in quantities and on schedules
consistent with the Coosa Graphite Project business plan; (b) the
Company’s ability to raise additional capital in the future
including the ability to utilize existing financing facilities; (c)
spot price and long-term contract price of graphite and vanadium;
(d) risks associated with our operations and the operations of our
partners such as Dorfner Anzaplan and Samuel Engineering, including
the impact of COVID-19 and its potential impacts to the capital
markets; (e) operating conditions at the Company’s projects; (f)
government regulation of the graphite industry and the vanadium
industry; (g) world-wide graphite and vanadium supply and demand,
including the supply and demand for energy storage batteries; (h)
unanticipated geological, processing, regulatory and legal or other
problems the Company may encounter in the jurisdictions where the
Company operates or intends to operate, including but not limited
to Alabama and Colorado; (i) any graphite or vanadium discoveries
not being in high-enough concentration to make it economic to
extract the minerals; (j) currently pending or new litigation or
arbitration; and (k) other factors which are more fully described
in the Company’s Annual Report on Form 10-K, subsequent Quarterly
Reports on Form 10-Q, and other filings with the Securities and
Exchange Commission. Should one or more of these risks or
uncertainties materialize or should any of the Company’s underlying
assumptions prove incorrect, actual results may vary materially
from those currently anticipated. In addition, undue reliance
should not be placed on the Company’s forward-looking statements.
Except as required by law, the Company disclaims any obligation to
update or publicly announce any revisions to any of the
forward-looking statements contained in this news release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210513005293/en/
Westwater Resources Christopher M. Jones, President &
CEO Phone: 303.531.0480 Jeff Vigil, VP Finance & CFO Phone:
303.531.0481 Email: Info@WestwaterResources.net Investor
Relations Porter, LeVay & Rose Michael Porter, President
Phone: 212.564.4700 Email: Westwater@plrinvest.com Product Sales
Contact Jay Wago, Vice President – Sales and Marketing Phone:
303.531.0472 Email: Sales@westwaterresources.net
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