Westwater Resources(US:WWR)2022-02-11 21:32Financial Performance - Westwater reported a net loss from continuing operations of $16.1 million, or $0.49 per share, for the year ended December 31, 2021, compared to a net loss of $13.9 million, or $1.58 per share, in 2020[206]. - Net loss decreased to $16,144,000 in 2021 from $23,574,000 in 2020, a reduction of 31%[248]. - Basic and diluted loss per share from continuing operations improved to $(0.49) in 2021 from $(1.58) in 2020[248]. - For the year ended December 31, 2021, the net loss was $16,144,000, compared to a net loss of $13,912,000 in 2020, representing an increase in loss of approximately 16%[329]. Expenses - Product development expenses increased to $6.0 million in 2021, up $1.9 million from the previous year, primarily due to costs associated with the Definitive Feasibility Study (DFS) for the Coosa Plant[207]. - General and administrative expenses rose to $8.9 million in 2021, an increase of approximately $3.2 million compared to 2020, driven by higher stock compensation and public company expenses[210]. - Total operating expenses increased to $18,225,000 in 2021, up from $11,236,000 in 2020, reflecting a rise of 62%[248]. - The Company recorded stock-based compensation expense of $0.9 million for the year ended December 31, 2021, compared to $0.4 million for the year ended December 31, 2020[318]. Cash and Financing - Westwater's cash balance was approximately $115.3 million at December 31, 2021, following total net proceeds of $84.1 million from equity financing activities during the year[204]. - Cash and cash equivalents rose significantly to $115,293,000 in 2021, up from $50,315,000 in 2020, an increase of 129%[247]. - Cash flows from financing activities provided $83,992,000 in 2021, compared to $63,945,000 in 2020, an increase of 31%[252]. - The company issued 16,050,518 shares of common stock in 2021, raising $84,142,000 net of issuance costs[250]. Assets and Liabilities - Total assets increased to $132,983,000 in 2021 from $61,937,000 in 2020, representing a growth of 114%[247]. - Total liabilities increased to $6,785,000 in 2021 from $4,466,000 in 2020, marking a rise of 52%[247]. - The net book value of property, plant, and equipment at December 31, 2021, was $14.479 million, with a significant increase due to the purchase of two buildings and land grants[295]. Project Development - The company completed the Definitive Feasibility Study for Phase I of the Coosa Plant, which is expected to produce 3,700 metric tons of ULTRA-CSPG™ and 3,800 metric tons of SPG Fines annually for 35 years, with production anticipated to start in 2023[194]. - The estimated remaining capital expenditures to construct Phase I of the Coosa Plant are approximately $198 million, with construction expected to continue through 2022 and be completed in the first half of 2023[220]. - The Company completed its pilot program for processing flake graphite into battery-grade graphite products in Q4 2021, which will inform the requirements for building the Coosa Plant[220]. - The Company expects to begin generating revenues from sales of battery-grade graphite products upon completion of Phase I of the Coosa Plant[220]. Legal and Regulatory - Westwater incurred $2.2 million in arbitration costs related to a Request for Arbitration against the Republic of Turkey, an increase of $0.7 million from the prior year[211]. - The Company has entered into incentive agreements with the State of Alabama for tax credits and incentives related to the Coosa Plant construction[230]. - The Company does not expect any legal settlements to materially affect its financial position or cash flows[332]. Internal Controls - The Company’s management concluded that its internal control over financial reporting was effective as of December 31, 2021[346]. - The Company has not made any changes in its internal control over financial reporting that materially affected its effectiveness during the quarter ended December 31, 2021[349].