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enCore Energy(EU) - 2024 Q4 - Annual Report
EUenCore Energy(EU)2025-03-03 21:45

Uranium Sales and Market Dynamics - During the year ended December 31, 2024, enCore completed eight uranium sales totaling 720,000 pounds U3O8 for an average sales price of 81.02perpoundU3O8[783].−AsofDecember31,2024,enCorehas4,455,000poundsU3O8incommitteduraniumsalesfrom2025through2029,withoptionaldeliveriesofanadditional1,025,000poundsU3O8[784].−In2023,U.S.utilitiespurchasedapproximately51.63millionpoundsofU3O8,whileU.S.uraniumproductionwasonly0.05millionpounds[771].−Bytheendof2024,spoturaniumpricesmoderatedto81.02 per pound U3O8[783]. - As of December 31, 2024, enCore has 4,455,000 pounds U3O8 in committed uranium sales from 2025 through 2029, with optional deliveries of an additional 1,025,000 pounds U3O8[784]. - In 2023, U.S. utilities purchased approximately 51.63 million pounds of U3O8, while U.S. uranium production was only 0.05 million pounds[771]. - By the end of 2024, spot uranium prices moderated to 73.50 per pound U3O8, down from over 100perpoundinthefirstquarter[773].−enCore′suraniumsalesstrategyincludesamixofmarket−relatedpricingandfixedpricestoadapttochangingmarketconditions[784].−Theglobaluraniummarketisfacingchallengesduetogeopoliticaluncertainties,traderestrictions,andtransportationissues,impactingsupplyavailability[778].FinancialPerformance−TheCompanyreportedrevenueof100 per pound in the first quarter[773]. - enCore's uranium sales strategy includes a mix of market-related pricing and fixed prices to adapt to changing market conditions[784]. - The global uranium market is facing challenges due to geopolitical uncertainties, trade restrictions, and transportation issues, impacting supply availability[778]. Financial Performance - The Company reported revenue of 58,334,000 for the year ended December 31, 2024, a 163% increase from 22,148,000in2023[797].−TheCompanysold720,000lbsofuraniumin2024,an8022,148,000 in 2023[797]. - The Company sold 720,000 lbs of uranium in 2024, an 80% increase compared to 400,000 lbs in 2023[798]. - The realized sales price per pound of uranium increased to 81.0 in 2024 from 55.4in2023,representinga4655.4 in 2023, representing a 46% increase[799]. - Costs applicable to uranium sales rose to 91.0 per pound in 2024 from 48.9perpoundin2023,an8648.9 per pound in 2023, an 86% increase[798]. - The Company experienced a net loss before income taxes of 73,922,000 in 2024, compared to a net loss of 26,078,000in2023,reflectinga18326,078,000 in 2023, reflecting a 183% increase in losses[797]. - Revenue from uranium for the year ended December 31, 2023, was 22,148, an increase of 17,903comparedto17,903 compared to 4,245 in 2022, driven by the sale of 400,000 pounds of uranium[802]. - The company reported a comprehensive loss of 69,798,000for2024,comparedto69,798,000 for 2024, compared to 25,218,000 in 2023, reflecting broader financial difficulties[870]. - The company reported a net loss of 25,611,000fortheyearendingDecember31,2023,comparedtoanetlossof25,611,000 for the year ending December 31, 2023, compared to a net loss of 23,155,000 for the previous year, indicating an increase in losses of approximately 10.6%[878]. Operational Developments - The Company increased its drilling rig count from 6 to 17 in South Texas during 2024 to enhance uranium extraction operations[790]. - The Rosita CPP has a production capacity of 800,000 lbs U3O8 per year, while the Alta Mesa CPP has a capacity of 1.5 million lbs U3O8 per year[788]. - The Dewey-Burdock Uranium Project in South Dakota has demonstrated ISR resources and is in the advanced stage of development with robust economics[794]. - The company utilizes In-Situ Recovery (ISR) technology for uranium extraction, focusing on domestic uranium resources in the United States[884]. Financial Position and Equity - Total current assets rose to 87,414,000in2024,comparedto87,414,000 in 2024, compared to 25,319,000 in 2023, reflecting a growth of 245%[866]. - Total liabilities increased to 74,180,000in2024from74,180,000 in 2024 from 64,601,000 in 2023, representing a rise of 24%[866]. - Cash and cash equivalents at year-end 2024 were 39,701,000,asubstantialincreasefrom39,701,000, a substantial increase from 7,493,000 in 2023[866]. - Total stockholders' equity grew to 285,736,000in2024from285,736,000 in 2024 from 261,966,000 in 2023, an increase of 9%[866]. - The company raised 20,209,000throughprivateplacementsduringtheyear,contributingtotheincreaseintotalequity[878].−Thetotalnumberofsharesoutstandingincreasedfrom98,903,000atthebeginningof2022to108,940,000bytheendof2023,representinganincreaseofapproximately10.320,209,000 through private placements during the year, contributing to the increase in total equity[878]. - The total number of shares outstanding increased from 98,903,000 at the beginning of 2022 to 108,940,000 by the end of 2023, representing an increase of approximately 10.3%[878]. Regulatory and Reporting Changes - The Company has not maintained effective internal control over financial reporting as of December 31, 2024, due to material weaknesses identified in general information technology controls and process-level controls[860]. - The Company transitioned its consolidated financial statements from IFRS to U.S. GAAP, impacting the capitalization of exploration and development costs, which are now expensed as incurred[833]. - The Company has no uranium supply or off-take agreements in place as of December 31, 2024, exposing it to market price fluctuations of uranium[841]. - The Company has adopted U.S. GAAP for its financial reporting as of January 1, 2025, transitioning from IFRS[886]. Asset Management and Impairments - The Company recorded an asset retirement obligation (ARO) liability of 16.9 million as of December 31, 2024, related to estimated future costs for well closure, decommissioning, and environmental remediation[853]. - The company recognized impairment losses of 6,054relatedtopurchaseduranium,recordedincostofgoodssoldfortheyearendedDecember31,2024[964].−Thefairvalueofthecompany′sinvestmentinequitysecuritiesincreasedto6,054 related to purchased uranium, recorded in cost of goods sold for the year ended December 31, 2024[964]. - The fair value of the company's investment in equity securities increased to 24,883 as of December 31, 2024, up from $19,933 in 2023[965]. Future Outlook and Strategy - The company plans to continue expanding its market presence and exploring new product developments as part of its growth strategy[880]. - The company has no plans to establish proven or probable reserves for its uranium projects in the near term, maintaining its exploration focus[895].