Company Receives Air Permit from Alabama Department of Energy Management
Company Completes Earthwork at Kellyton Graphite Processing Plant Site
CENTENNIAL, Colo.–(BUSINESS WIRE)–Westwater Resources, Inc. (NYSE American: WWR), an energy technology and battery-grade natural graphite development company (�Westwater or the Company), today announced its second quarter results for the period ended June 30, 2022 and provided an update on its Kellyton graphite processing plant currently under construction in east-central Alabama.
During the second quarter of 2022, Westwater continued construction activities related to Phase I of its Kellyton Graphite Plant, including earthwork and site grading, which was completed in July 2022. The Company moved approximately 97 thousand cubic yards of dirt during earthwork and site grading.
Construction activity during the second quarter also included the mobilization of the general contractor, receipt of the first components of long-lead equipment, and beginning work on underground utilities, foundations, and the manufacturing of plant buildings.
Also in June 2022, the Company received its air permit from the Alabama Department of Environmental Management and now has all necessary permits to complete the construction of phase I of the Kellyton Graphite Plant.
Our team not only continues to work diligently and progress the construction of Phase I of our Kellyton graphite plant but has done so without a recordable safety incident since the beginning of the project, said Chad Potter, President and CEO. We continue, with the world class construction management team weve assembled and our team at Westwater, to progress the construction of Phase I despite continued supply chain disruptions and challenges. We continue to work to mitigate the supply chain pressures and are targeting to begin commissioning of Phase I by the end of the second quarter in 2023.
In June 2022, the Company announced the retirement of its Chief Financial Officer (CFO) and Vice President – Finance, Jeffrey L. Vigil, effective August 26, 2022. Chief Accounting Officer Steven M. Cates, who has been with Westwater since May 2021, has been elected Westwaters new CFO and Vice President Finance, also effective August 26, 2022. Mr. Catess appointment is the result of a planned succession strategy dating back to 2021.
We finished the second quarter with a cash balance of $109.0 million and a working capital balance of $102.7 million, said Mr. Vigil. Since beginning construction of Phase I of the Kellyton graphite plant in the fourth quarter of 2021, we have incurred approximately $30.0 million of costs, of which $27.5 million represents cash expended with the remainder remaining on the Companys balance sheet as liabilities as of June 30, 2022.
After the close of the second quarter, Westwater executed a letter of intent with a global manufacturer of consumer batteries (Manufacturer) under which Westwater committed to support the Manufacturers consumer battery programs by providing its PMG product (from the Kellyton graphite processing facility once operational), and the Manufacturer committed to evaluate the product in its official qualification programs.
Financial Summary
($ in 000’s, Except Share and Per Share Amounts) |
Q2 2022 |
Q2 2021 |
Variance |
Net Cash Used in Operations* | $(5,911) | $(9,133) | (35%) |
Net Cash (Used in)/Provided by Investing Activities* | $(24,853) | $233 | n/m |
Net Cash Provided by Financing Activities* | $24,509 | $77,713 | (68%) |
Product Development Expenses | $(367) | $(2,109) | (83%) |
General and Administrative Expenses | $(2,644) | $(2,198) | 20% |
Net Loss | $(3,155) | $(3,480) | (9%) |
Net Loss Per Share | $(0.07) | $(0.11) | (36%) |
Avg. Weighted Shares Outstanding | 47,083,720 | 32,431,919 | 45% |
* Presented on a year-to-date basis.
Conference Call
Management will host a conference call to discuss these results on August 11, 2022, at 11:00 AM EDT (9:00 AM Mountain).
The dial-in numbers are:
Canada/USA TF: 1-800-319-4610
International Toll: +1-604-638-5340
Callers should dial in 5-10 min prior to the scheduled start time and simply ask to join the call.
A live webcast of the conference call presentation will also be available at www.westwaterresources.net
For a replay of the call:
Canada/USA TF: 1-855-669-9658
International Toll: +1-412-317-0088
Replay Access Code: 9184
About Westwater Resources, Inc.
Westwater Resources, Inc. (NYSE American: WWR), an energy technology company, is focused on developing battery-grade natural graphite. The Companys primary project is the Kellyton graphite processing plant that is under construction in east-central Alabama. In addition, the Companys Coosa graphite deposit is the most advanced natural flake graphite deposit in the contiguous United States and located across 41,900 acres (~17,000 hectares) in Coosa County, Alabama. For more information, visit www.westwaterresources.net.
Cautionary Statement Regarding Forward-Looking Statements
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, targets and other similar words. Forward looking statements include, among other things, statements concerning the construction and operation of the Companys Kellyton graphite processing facility, the Companys Coosa graphite deposit, and the costs and schedules associated with them. The Company cautions that there are certain factors that could cause actual results to differ materially from the forward-looking information that has been provided. The reader is cautioned not to put undue reliance on this forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are outside the control of the Company; accordingly, there can be no assurance that such suggested results will be realized. The following factors, in addition to those discussed in Westwaters Annual Report on Form 10-K for the year ended December 31, 2021, and subsequent securities filings, could cause actual results to differ materially from management expectations as suggested by such forward-looking information: (a) the spot price and long?term contract price of graphite (both flake graphite feedstock and purified graphite products) and vanadium, and the world-wide supply and demand of graphite and vanadium; (b) the effects, extent and timing of the entry of additional competition in the markets in which we operate; (c) the ability to obtain contracts with customers; (d) available sources and transportation of graphite feedstock; (e) the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of the Kellyton graphite processing facility; (f) the ability to construct and operate the Kellyton graphite processing plant in accordance with the requirements of permits and licenses and the requirements of tax credits and other incentives; (g) effects of inflation; (h) the availability and supply of equipment and materials needed to construct the Kellyton graphite processing facility; (i) stock price volatility; (J) government regulation of the mining and manufacturing industries in the United States; (k) unanticipated geological, processing, regulatory and legal or other problems we may encounter; (L) the results of our exploration activities at the Coosa graphite deposit, and the possibility that future exploration results may be materially less promising than initial exploration results; (m) any graphite or vanadium discoveries at the Coosa graphite deposit not being in high enough concentration to make it economic to extract the metals; (n) our ability to finance growth plans; (l) the potential effects of the continued COVID-19 pandemic; (o) currently pending or new litigation or arbitration; and (p) our ability to maintain and timely receive mining, manufacturing, and other permits from regulatory agencies.
Contacts
Westwater Resources, Inc.
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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