WWR Enters into Incentive Package with the
State of Alabama and Local Municipalities, Including a Land Lease
on 70 Acres to Construct Its Commercial Graphite Processing
Facility
Conference Call Scheduled for August 12,
2021, at 11:00 AM EDT
Westwater Resources, Inc. (NYSE American: WWR), an
explorer and developer of U.S.-based mineral resources essential to
green energy production, today announced an update on its
first-of-its-kind graphite processing plant in Alabama and its
second quarter results for the period ended June 30, 2021.
On June 22, 2021 Westwater entered into an incentive package
with the State of Alabama and local municipalities to locate the
site of the Company’s graphite processing facility in Coosa County,
Alabama. The agreement provides certain tax credits and incentives
which are estimated by the State of Alabama to be valued at $36M.
Westwater has also entered into a land lease agreement for
approximately 70 acres to construct its commercial graphite
processing facility, with an option to purchase the land during the
term of the lease.
As previously reported, Westwater has entered into an agreement
with Samuel Engineering, Inc. for a Definitive Feasibility Study on
the Coosa Graphite Processing Facility. The study will address
location, raw material, product quality and infrastructure, and
will provide cost estimates for the Coosa facility. Samuel
Engineering, Inc. will also provide design and drawings. Westwater
anticipates receipt of the report by the end of the third
quarter.
Westwater’s graphite and vanadium exploration program began in
April 2021 and is expected to continue throughout the remainder of
the year. The scope of this program includes core drilling, the
evaluation of extractive techniques and the expansion of general
knowledge of the minerals on the property.
“The second quarter of 2021 has been extremely successful for
our Company, and we reached a number of key goals required to
produce our battery-grade graphite products for an energy-dependent
world,” said Chris Jones, CEO of Westwater. “During the quarter we
continued and are nearing completion of our pilot program in
various locations in Germany and the USA, and the combined effort
has produced approximately 13 metric tonnes of our three
battery-grade graphite products.”
“We are now listed on the NYSE American and we were added to the
Russell Microcap Index,” Mr. Jones added. “Our Russell membership
remains in place for one year and gives us automatic inclusion in
the appropriate growth and value style indexes.”
After a comprehensive search process, Westwater hired Chad
Potter as Chief Operating Officer, who began working with the
Westwater team on August 2, 2021. Mr. Potter will lead Westwater’s
construction, development and future operations of its commercial
graphite processing facility and mine.
“With the addition of Chad Potter to our roster, I believe we
have one of the strongest management teams in the industry,” Mr.
Jones concluded.
FINANCIAL REVIEW
($ in 000's, Except Per Share Amounts)
Q2 2021
Q2 2020
Variance
Net Cash Used in Operations*
$(9,133)
$(6,065)
51%
Product Development Expenses
$(2,109)
$(175)
n/m
General and Administrative Expenses**
$(2,198)
$(1,659)
32%
Net Loss
$(3,480)
$(2,467)
41%
Net Loss Per Share
$(0.11)
$(0.43)
74%
Avg. Weighted Shares Outstanding
32,431,919
5,786,117
461%
* Net Cash Used in Operations is presented on a year-to-date basis.
** General and Administrative Expenses for the three months ended
June 30, 2020, includes $433 thousand of expense attributable to
discontinued operations.
Product Development Expenses
Product development expenditures for the second quarter 2021
were $2.1 million, an increase of $1.9 million compared to the
prior-year quarter. Approximately $0.7 million of the
period-over-period increase was related to Westwater’s graphite
processing pilot program, with the remaining increase due primarily
to product testing, other lab work and other auxiliary costs
associated with the Coosa Graphite Project.
General and Administrative
Expenses
General and Administrative expenses for the second quarter 2021
increased by $0.5 million compared to the prior year-quarter, due
primarily to higher costs related to shareholder meetings, an
increase in stock compensation and higher costs related to
Westwater’s sales and marketing efforts.
Net Cash Used in Consolidated
Operations
Net cash used in operating activities for the first half of 2021
was $9.1 million, an increase of $3.1 million compared to the same
period in the prior year, due primarily to higher graphite product
development, exploration, and general, administrative and
arbitration costs in 2021.
Net Loss
Net Loss for the three months ended June 30, 2021, was $3.5
million, or $0.11 per share, as compared with a consolidated net
loss of $2.5 million, or $0.43 per share, for the same 2020 period.
The $1.0 million increase in Westwater’s consolidated net loss was
due to an increase in product development, and exploration, general
and administrative costs in 2021; offset partially by the
elimination of costs from discontinued operations, and an
unrealized gain related to the enCore common stock.
Cash and Working Capital
The Company’s cash balance at June 30, 2021, was approximately
$119 million.
CONFERENCE CALL & WEBCAST
The Company will hold a conference call on Thursday, August 12,
2021, at 11:00am EDT.
DIAL- IN- NUMBERS
- 1-800-319-4610 (USA and Canada)
- 1-604-638-5340 (International)
- Conference ID: Westwater Resources Conference call
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, Chad Potter, Chief Operating Officer and Dain McCoig, Vice
President of Operations,
Mr. Jones will present an update on the Company’s business, as
well as a special report and update on the Coosa Graphite Project.
Mr. Vigil will review the financial results and financial condition
of the Company. Mr. Potter and Mr. McCoig will be available for
questions as part of the call.
The conference call presentation will also be available via a
live webcast through the Company’s website,
www.westwaterresources.net.
A replay of the call will be available on the Company’s
website for a limited time and by phone:
- 1-855-669-9658 (USA and Canada)
- 1-412-317-0088 (Internationally)
- Replay access code: 7387
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 processing plant facilities,
future production of battery graphite products, future financing
activities and financial resources, the benefits of the incentive
package with the State of Alabama and local municipalities, the
timing and content of the Definitive Feasibility Study on the Coosa
Graphite Processing Facility, 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 construct and operate a processing plant
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; (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) the effect
of inflation and supply chain disruptions on the anticipated cost
to construct and commence operations at our planned processing
plant; (j) any graphite or vanadium discoveries not being in
high-enough concentration to make it economic to extract the
minerals; (k) currently pending or new litigation or arbitration;
and (l) 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/20210812005092/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
Product Sales Contact: Jay Wago, Vice President – Sales and
Marketing Phone: 303.531.0472 Email:
Sales@westwaterresources.net
Investor Relations Porter, LeVay & Rose Michael
Porter, President Phone: 212.564.4700 Email:
Westwater@plrinvest.com
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