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Westwater Resources(WWR) - 2024 Q3 - Quarterly Report
WWRWestwater Resources(WWR)2024-11-14 21:20

Production and Offtake Agreements - Westwater expects the Kellyton Graphite Plant to produce 12,500 metric tons of CSPG annually in Phase I, primarily for lithium-ion batteries [88]. - The company has entered into a binding off-take agreement with Hiller Carbon for the supply of Graphite Fines, expecting production of approximately 14,000 metric tons per year [89]. - Under the Offtake Agreement with FCA, the anticipated annual offtake volume is 10,000 metric tons in 2026, increasing to 15,000 metric tons from 2027 to 2031 [90]. Construction and Financing - Westwater has reduced the estimated cost of Phase I construction to 245million,adecreaseof9.6245 million, a decrease of 9.6% from the previous estimate of 271 million [93]. - As of September 30, 2024, the company has incurred approximately 121.5millionincostsrelatedtotheconstructionofPhaseIoftheKellytonGraphitePlant[95].−Thecompanyexpectstorequireapproximately121.5 million in costs related to the construction of Phase I of the Kellyton Graphite Plant [95]. - The company expects to require approximately 124 million to complete construction of Phase I, with production anticipated to begin in 2026, subject to securing financing [95]. - The qualification line at the Kellyton Graphite Plant is expected to be operational in Q4 2024, producing approximately 1 metric ton of CSPG per day for customer qualification [96]. - Westwater has executed a term sheet for a 150millionsecureddebtfacilitytocompletetheconstructionofPhaseIoftheKellytonGraphitePlant[99].−Thecompanyisconsideringalternativefinancingsources,includingprojectdebtandjointventures,tofundtheconstructionoftheKellytonGraphitePlant[123].FinancialPerformance−ThenetlossforthethreemonthsendedSeptember30,2024,was150 million secured debt facility to complete the construction of Phase I of the Kellyton Graphite Plant [99]. - The company is considering alternative financing sources, including project debt and joint ventures, to fund the construction of the Kellyton Graphite Plant [123]. Financial Performance - The net loss for the three months ended September 30, 2024, was 3.1 million, a decrease from a net loss of 3.5millionforthesameperiodin2023[111].−ThenetlossfortheninemonthsendedSeptember30,2024,was3.5 million for the same period in 2023 [111]. - The net loss for the nine months ended September 30, 2024, was 9.8 million, compared to a net loss of 9.5millionforthesameperiodin2023[112].−ProductdevelopmentexpensesforQ3andthefirstninemonthsof2024were9.5 million for the same period in 2023 [112]. - Product development expenses for Q3 and the first nine months of 2024 were 0.3 million and 0.9million,respectively,adecreaseof0.9 million, respectively, a decrease of 0.7 million and 1.8millioncomparedtothesameperiodsin2023[113].−ExplorationexpensesforQ3andthefirstninemonthsof2024decreasedby1.8 million compared to the same periods in 2023 [113]. - Exploration expenses for Q3 and the first nine months of 2024 decreased by 0.1 million and 0.2million,respectively,comparedtothesameperiodsin2023duetolowerpersonnelcosts[114].−Netcashusedinoperatingactivitiesforthefirstninemonthsof2024was0.2 million, respectively, compared to the same periods in 2023 due to lower personnel costs [114]. - Net cash used in operating activities for the first nine months of 2024 was 3.8 million, a decrease of 8.4millioncomparedtothesameperiodin2023,primarilyduetocashcollectedonsalesofrawmaterialinventory[117].−Netcashusedininvestingactivitiesdecreasedby8.4 million compared to the same period in 2023, primarily due to cash collected on sales of raw material inventory [117]. - Net cash used in investing activities decreased by 51.8 million for the first nine months of 2024 compared to the same period in 2023, attributed to lower capital expenditures [118]. - Net cash provided by financing activities decreased by 3.0millionforthefirstninemonthsof2024comparedtothesameperiodin2023,duetofewersharessoldundertheATMSalesAgreement[119].−AsofSeptember30,2024,thecompany′scashbalancewasapproximately3.0 million for the first nine months of 2024 compared to the same period in 2023, due to fewer shares sold under the ATM Sales Agreement [119]. - As of September 30, 2024, the company's cash balance was approximately 4.5 million, with 7.8millionremainingavailableforfuturesalesundertheATMSalesAgreement[122].−Thecompanyhasregisteredapproximately10.5millionsharesofcommonstockavailableforfuturesalesunderthe2024LincolnParkPA,whichallowsforupto7.8 million remaining available for future sales under the ATM Sales Agreement [122]. - The company has registered approximately 10.5 million shares of common stock available for future sales under the 2024 Lincoln Park PA, which allows for up to 30.0 million in purchases [122]. - The company expects to continue incurring losses until operations commence at the Kellyton Graphite Plant, relying on debt and equity financing for funding [123]. - The company has not recorded revenue from operations since 2009, and as of September 30, 2024, current liabilities exceeded current assets [120].