Westwater Resources, Inc., an energy metals exploration and development company, announced today its results for the third quarter of fiscal year 2017, and also discussed its business outlook and its energy metals business development for the remainder of 2017 and calendar year 2018. Christopher M. Jones, President and Chief Executive Officer, said, “Continued work to strengthen our financing capacity and lithium projects portfolio, a clay deposit discovery, reclamation success in Texas and a strong working capital position combine to give us a robust platform for growth well into 2018. Also, Cameco’s surprise announcement suspending production at two operations on November 8, effectively removing over 8% of the world’s production of uranium, has resulted in an immediate 10% increase in the price of uranium. This is good for the uranium industry.”
3ed Quarter Report Summary:
The Company changed its name from Uranium Resources, Inc. to Westwater Resources, Inc. on August 21, 2017
They completed our Phase 1 exploration drilling and acquired water rights at the Columbus Basin lithium brine project in Nevada.
They announced positive lithium results at the Sal Rica Project in Utah.
They announced the discovery of a new calcium montmorillonite clay deposit at our Tulu Tepe property in Turkey.
They entered into a common stock purchase agreement with Aspire Capital Fund, LLC (“Aspire Capital”) to sell up to $22.0 million in the aggregate of the Company’s common stock on an ongoing basis over a term of 30 months. The Company will control the timing and amount of sales to Aspire Capital, and at a price based on market prices at that time.
Pursuant to the CSPA, on September 27, 2017, Aspire Capital made an initial purchase of 1,428,571 shares of common stock for which the Company received net proceeds of $2.0 million. The Company terminated its listing on the Australian Stock Exchange (“ASX”) as part of our continuing cost reduction process. Cash and working capital balances at September 30, 2017 were $7.2 million and $8.2 million, respectively.
WWR 30-Year Financial Data
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Net cash used in operations. Net cash used in operating activities was $8.9 million for the nine months ended September 30, 2017, as compared with $9.8 million for the same period in 2016. The decrease of $0.9 million in cash used is mostly due to a decrease in interest expense of $0.3 million, an increase in interest income of $0.4 million and an aggregated decrease in operating expenses of $0.3 million.
Operating expenses. For the three and nine months ended September 30, 2017, mineral property expenses increased by $0.3 million and $0.7 million, respectively, from the corresponding periods during 2016. For the three-month period, exploration costs increased by $0.3 million. For the nine-month period, exploration costs increased by $0.5 million, Rosita restoration costs increased by $0.2 million and land and maintenance costs increased by $0.3 million, and Temrezli standby costs decreased by $0.3 million. For the three months ended September 30, 2017, general and administrative charges decreased by $0.2 million primarily due to decreases in salaries expense and stock compensation expense, which were partially offset by an increase in legal, accounting and public company expenses. For the nine-month period, general and administrative charges decreased by $1.1 million primarily due to decreases in stock compensation expense, salaries, consulting and professional services.
Net loss. Consolidated net loss for the three months ended September 30, 2017, was $3.0 million, or $0.12 per share, as compared with $3.7 million, or $0.38 per share for the same period in 2016. For the three-month period, the decrease of $0.7 million from the prior period was mostly the result of a decrease in interest expense of $0.7 million. For the nine months, the loss was $3.8 million, or $0.16 per share, as compared with $12.6 million, or $1.81 per share for the same period in 2016. The decrease of $8.8 million from the prior period was mostly the result of a gain on the disposal of our Churchrock and Crownpoint projects of $4.9 million, a decrease in interest expense of $2.2 million, a decrease in the impairment of uranium properties of $0.5 million, a decrease in general administrative expenses of $1.1 million, a decrease in commitment fees of $0.3 million and a decrease of $0.1 million due to a loss on the sale of marketable securities in 2016. Offsetting these amounts was an increase in mineral property expenses of $0.7 million.