Westwater Resources(WWR) - 2022 Q4 - Annual Report

Financial Performance - The net loss from continuing operations for the year ended December 31, 2022, was $11.1 million, or $0.25 per share, a decrease from a net loss of $16.1 million, or $0.49 per share in 2021[209]. - Net cash used in operating activities was $13.2 million for 2022, a decrease from $16.9 million in the prior year, primarily due to reduced costs[217]. - Net cash provided by financing activities was $25.9 million for 2022, a decrease from $84.0 million in 2021, attributed to lower trading volumes and stock prices[219]. Expenses - Product development expenses for 2022 were $1.1 million, a decrease of $4.8 million compared to the prior year, primarily due to the completion of the definitive feasibility study in 2021[210]. - Exploration expenses for 2022 were $0.8 million, a decrease of $0.3 million compared to the prior year, as the initial drilling program at the Coosa Graphite Deposit was completed in April 2022[211]. - General and administrative expenses for 2022 were $9.9 million, an increase of approximately $1.0 million compared to 2021, mainly due to higher personnel costs[212]. Capital Expenditures - Net cash used in investing activities was $52.8 million for 2022, significantly higher than $2.1 million in 2021, due to increased capital expenditures related to the Kellyton Graphite Plant[218]. - The total estimated cost for Phase I construction of the Kellyton Graphite Plant is approximately $271 million, up from the original estimate of $202 million[204]. Production Capacity - The expected production capacity for Phase I of the Kellyton Graphite Plant is now 16,000 metric tons per year, with expected CSPG production of 7,500 metric tons per year[204]. Cash and Assets - As of December 31, 2022, the company's cash balances were $75.2 million, including approximately 5.0 million Euros[221]. - No impairment was recorded in 2022 or 2021, indicating stable asset valuations during these years[228]. - The company values natural flake graphite concentrate inventory at the lower of cost or net realizable value, with write-downs reported as a component of costs applicable to sales[229]. - As of December 31, 2021, the fair value of the land received from the local municipality was recognized at $1.4 million, increasing property, plant, and equipment[234]. Agreements and Incentives - The company entered into incentive agreements with the State of Alabama for the construction of the Kellyton Graphite Plant, which includes tax credits and incentives under the Alabama Jobs Act[230]. - The lease for the land to construct the graphite processing facility has a term of 10 years and includes a nominal lease payment with an option to purchase the land for a nominal amount[230]. - The company accounts for the land grant as a government grant, recognizing income separately within other income to distinguish it from operating income[233]. Future Projections - Future cash flows are estimated based on recoverable minerals, expected commodity prices, production levels, and operating costs, but actual future cash flows may differ significantly from estimates due to various risks[227].