Westwater Resources(WWR)2025-05-14 20:30Production and Capacity - Westwater expects the Kellyton Graphite Plant to produce 12,500 metric tons of CSPG per year in Phase I, primarily for lithium-ion batteries[87] - Westwater has secured offtake agreements for 100% of its anticipated Phase I production capacity and a portion of anticipated Phase II production capacity[89] - The company produced over an 800 kg sample of CSPG for pre-production cell trials during the first quarter of 2025[94] Financial Performance - Net loss for the three months ended March 31, 2025, was $2.7 million, a decrease from a net loss of $2.9 million for the same period in 2024[113] - Net cash used in operating activities was $2.3 million for the three months ended March 31, 2025, a decrease of $0.5 million compared to the same period in 2024[118] - Net cash provided by financing activities increased by $3.7 million for the three months ended March 31, 2025, due to increased shares sold under the ATM Sales Agreement and 2024 Lincoln Park PA[122] Funding and Financial Challenges - The company is working to complete a secured debt facility for approximately $150 million to finance the completion of Phase I of the Kellyton Graphite Plant[96] - The Company's planned non-discretionary expenditures for one year exceed the cash on hand as of the date of the Interim Financial Statements[124] - The Company has faced challenges in securing additional financing due to market volatility, higher interest rates, and uncertain economic conditions[126] - The ability to raise additional funds under the ATM Sales Agreement may be limited by the Company's market capitalization, share price, and trading volume[126] - Construction activities related to the Kellyton Graphite Plant have been significantly reduced until additional funding is secured[124] Cash Position - As of March 31, 2025, the Company's cash balance was approximately $3.3 million[125] - During the three months ended March 31, 2025, the Company sold 2.5 million shares of Common Stock for net proceeds of $2.0 million and approximately 3.8 million shares for net proceeds of $2.6 million[125] - The Company has approximately $49.9 million remaining available for future sales under the ATM Sales Agreement[125] Supply Chain and Geopolitical Risks - The U.S. is almost 100% dependent on imports for battery-grade graphite, highlighting the geopolitical risks and supply-chain vulnerabilities[105][107] - Westwater is at an advanced stage in securing a backup feedstock supplier due to recent protests affecting its primary supplier[97] Forward-Looking Statements and Risks - Forward-looking statements regarding funding adequacy and operational timelines are subject to various risks and uncertainties[129] - The Company cautions that actual results may differ materially from forward-looking statements due to factors such as inflation, supply chain disruptions, and geopolitical issues[130] - The Company has no off-balance sheet arrangements[128]