Uranium Energy (UEC) - 2025 Q1 - Quarterly Report

Financial Information Financial Statements Uranium Energy Corp. reported a $20.16 million net loss for Q1 FY2025, driven by fair value losses and increased mineral property expenditures, despite $17.09 million in revenue Interim Condensed Consolidated Balance Sheets Consolidated Balance Sheet Highlights (in thousands of U.S. dollars) | Account | October 31, 2024 | July 31, 2024 | | :--- | :--- | :--- | | Assets | | | | Cash and cash equivalents | $190,596 | $87,533 | | Inventories | $66,074 | $75,833 | | Total Current Assets | $261,197 | $235,244 | | Mineral Rights and Properties | $555,958 | $557,583 | | Total Assets | $917,798 | $889,828 | | Liabilities & Equity | | | | Total Current Liabilities | $12,703 | $29,222 | | Total Liabilities | $93,780 | $111,715 | | Total Equity | $824,018 | $778,113 | | Total Liabilities and Equity | $917,798 | $889,828 | - Cash and cash equivalents more than doubled to $190.6 million from $87.5 million at the end of the previous fiscal year, primarily due to financing activities[13] - Total liabilities decreased to $93.8 million from $111.7 million, mainly due to a reduction in accounts payable and the settlement of derivative liabilities[13] Interim Condensed Consolidated Statements of Operations and Comprehensive Loss Statement of Operations Highlights (in thousands of U.S. dollars, except per share data) | Metric | Three Months Ended Oct 31, 2024 | Three Months Ended Oct 31, 2023 | | :--- | :--- | :--- | | Sales and Service Revenue | $17,087 | $108 | | Gross Profit | $6,251 | $18 | | Loss from Operations | $(13,203) | $(11,385) | | Fair value gain (loss) on equity securities | $(10,349) | $17,313 | | Net Income (Loss) | $(20,158) | $3,321 | | Net Income (Loss) Per Share (Basic & Diluted) | $(0.05) | $0.01 | - The company reported a net loss of $20.16 million, a significant shift from a net income of $3.32 million in the prior-year quarter, largely due to a $10.35 million fair value loss on equity securities compared to a $17.31 million gain in the prior year[16] Interim Condensed Consolidated Statements of Cash Flows Cash Flow Summary (in thousands of U.S. dollars) | Cash Flow Activity | Three Months Ended Oct 31, 2024 | Three Months Ended Oct 31, 2023 | | :--- | :--- | :--- | | Net Cash Used in Operating Activities | $(11,452) | $(45,727) | | Net Cash Provided by Financing Activities | $62,010 | $55,867 | | Net Cash Provided by (Used in) Investing Activities | $52,509 | $(5,482) | - Financing activities provided $62.01 million in cash, primarily from share issuances under the at-the-market (ATM) offering[19] - Investing activities provided $52.51 million in cash, driven by $54.37 million in proceeds from the sale of equity securities[19] Notes to the Financial Statements - The company is classified as an "Exploration Stage" issuer by the SEC, as it has not established proven or probable reserves. Consequently, exploration and pre-extraction expenditures are expensed as incurred, which results in larger reported losses than if it were a "Production Stage" company[33][37] - As of October 31, 2024, the company held 1,256,000 pounds of purchased uranium concentrate inventory and had commitments to purchase an additional 700,000 pounds through Fiscal 2026[43] - During the quarter, the company issued 7,595,626 shares under its ATM Offering for gross proceeds of $62.64 million. Subsequent to the quarter-end, it raised an additional $31.76 million[65][66] Management's Discussion and Analysis of Financial Condition and Results of Operations Management discusses the restart of uranium extraction, a planned $175 million acquisition, and a physical uranium program, emphasizing strong market fundamentals despite reliance on equity financing Business and Strategy - Uranium extraction restarted at the Christensen Ranch Mine in Wyoming in August 2024, with a ramp-up phase expected to complete in early 2025[88] - The company entered into an agreement to acquire a portfolio of uranium projects from Rio Tinto America Inc. for $175 million in cash, with closing expected by January 31, 2025[93] - The Physical Uranium Program held 1,256,000 pounds of uranium as of October 31, 2024, intended to bolster the balance sheet, support future marketing, and increase availability of U.S. production for premium opportunities[104][105] - Management views the uranium market as strong, with the spot price at $80.00/lb as of October 31, 2024. Key drivers include global decarbonization, geopolitical supply risks from Russia and Niger, and new demand from data centers and government initiatives like the U.S. Nuclear Fuel Security Act[106][109][112] Results of Operations Quarterly Results Comparison (in thousands of U.S. dollars) | Metric | Q1 FY2025 (ended Oct 31, 2024) | Q1 FY2024 (ended Oct 31, 2023) | | :--- | :--- | :--- | | Revenue | $17,087 | $108 | | Gross Profit | $6,251 | $18 | | Net Income (Loss) | $(20,158) | $3,321 | | EPS | $(0.05) | $0.01 | - Mineral property expenditures more than doubled to $13.51 million from $5.69 million year-over-year, primarily due to increased exploration at the Roughrider Project and development at the Burke Hollow and Christensen Ranch projects[123] - A fair value loss of $10.35 million on equity securities was a major contributor to the net loss, contrasting with a $17.31 million gain in the same period last year[131] Liquidity and Capital Resources Key Liquidity Metrics (in thousands of U.S. dollars) | Metric | October 31, 2024 | July 31, 2024 | | :--- | :--- | :--- | | Cash & Cash Equivalents | $190,596 | $87,533 | | Working Capital | $248,494 | $206,022 | - The company raised net proceeds of $64.65 million during the quarter from its ATM offering and exercises of stock options and warrants. An additional $31.04 million was raised after the quarter ended[136][137] - Management believes existing cash resources are sufficient to fund planned operations for the next 12 months, but acknowledges that long-term continuation depends on achieving positive cash flow or securing additional financing for its capital-intensive operations[143] Quantitative and Qualitative Disclosures About Market Risk The company refers to its Annual Report on Form 10-K for the fiscal year ended July 31, 2024, for its disclosures regarding market risk - For information on quantitative and qualitative disclosures about market risk, the company directs investors to its most recent Form 10-K annual report[163] Controls and Procedures Based on an evaluation conducted with the participation of the CEO and CFO, the company concluded that its disclosure controls and procedures were effective as of October 31, 2024. There were no material changes to internal controls over financial reporting during the quarter - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures are effective as of the end of the reporting period[164] - No changes in internal controls over financial reporting occurred during the quarter that have materially affected, or are reasonably likely to materially affect, internal control[166] Other Information Legal Proceedings The company discloses ongoing legal challenges related to its Goliad Project in Texas, where permits reissued by the Texas Commission on Environmental Quality (TCEQ) in August 2024 are subject to a Motion for Rehearing. Additionally, the company is in a dispute with the mining regulator in Paraguay (MOPC) over the eligibility for extension of certain exploration concessions - The company is involved in a legal proceeding concerning its Goliad Project, where permits reissued by the TCEQ on August 28, 2024, are being challenged via a Motion for Rehearing filed on November 21, 2024[171] - In Paraguay, the mining regulator (MOPC) has taken the position that certain concessions are not eligible for extension, and the company has filed appeals to protect its rights[172] Risk Factors The company faces significant risks including limited operating history, a substantial accumulated deficit, reliance on equity financing, lack of proven reserves, and uranium price volatility - The company has a history of significant negative cash flow and an accumulated deficit of $339.06 million as of October 31, 2024, making it reliant on equity financing for its capital-intensive operations[179][185] - A primary operational risk is the lack of established proven or probable reserves for any of its projects. Commencing extraction without such reserves increases the uncertainty of economic viability[195][196] - The Physical Uranium Program is subject to risks including price fluctuations, potential losses on sales, and credit and operational risks associated with third-party storage facilities[211][213][219] Unregistered Sales of Equity Securities and Use of Proceeds During the quarter, the company issued common stock on several occasions for the exercise of warrants and in consideration for consulting services. These issuances were made in reliance on exemptions from registration requirements under Regulation S and/or Regulation D of the Securities Act - The company issued shares of common stock for the exercise of warrants and to consultants, relying on exemptions from registration under Regulation S and Regulation D[285][286][287][288] Defaults Upon Senior Securities The company reported no defaults upon senior securities during the period - None reported[290][293] Mine Safety Disclosures For the quarter ended October 31, 2024, the company's In-Situ Recovery (ISR) Mines were not subject to regulation by the Federal Mine Safety and Health Administration under the Mine Safety Act - The company's ISR Mines were not subject to regulation by the Federal Mine Safety and Health Administration during the quarter[291] Other Information During the fiscal quarter, no directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading plans or other non-Rule 10b5-1 trading arrangements - No directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading arrangements during the quarter[292] Exhibits This section lists the exhibits filed with the Quarterly Report, which include certifications from the CEO and CFO as required by the Sarbanes-Oxley Act, and Inline XBRL financial data files - The report includes required certifications from the Chief Executive Officer and Chief Financial Officer, as well as Inline XBRL Instance Documents[294]