enCore Energy(EU) - 2025 Q2 - Quarterly Results

Q2 2025 Financial and Operational Results Overview Highlights for Q2 2025 The second quarter of 2025 saw significant improvements in operational efficiency, leading to increased U3O8 extraction and a reduced net loss per share compared to the prior year Operational Highlights (Q2 2025) Operational efficiency at Alta Mesa continued to improve, with monthly increases in U3O8 extraction, averaging 2,678 pounds per day in June 2025 - Improvements in operational efficiency at Alta Mesa In-Situ Recovery ("ISR") Uranium CPP and Wellfield continued through Q2 2025, with monthly increases in U3O8 extraction[3] Daily U3O8 Production (Q2 2025) | Month | Pounds per day | | :---- | :------------- | | June 2025 | 2,678 | | May 2025 | 2,103 | | April 2025 | 1,942 | - U3O8 extraction for Q2 2025 totaled 203,798 pounds, an increase of 89,983 pounds or 79% from Q1 2025[4] Financial Highlights (Q2 2025) The company reported a significantly reduced net loss per share and successful sales of U3O8 at favorable prices, alongside a healthy inventory balance Key Financial Metrics (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | Change | | :----------------------- | :------ | :------ | :----- | | Net loss per share | $(0.03) | $(0.12) | Improved | - Sale (delivery) into contract of 60,000 pounds of uranium ("U3O8") at a sales price of $61.07 and a weighted average cost of $42.23[4] - Closing balance of 244,204 pounds of U3O8 in inventory at a cost of $39.63 per pound[4] Highlights for H1 2025 The first half of 2025 was marked by substantial U3O8 deliveries into sales contracts and a significant reduction in the weighted average cost of U3O8 sold compared to the previous year Financial Highlights (H1 2025) The company delivered a substantial amount of U3O8 into sales contracts at a strong average price, while significantly reducing the cost of U3O8 sold. No U3O8 purchases are planned for 2025 Key Financial Metrics (H1 2025 vs. H1 2024) | Metric | H1 2025 | H1 2024 | Change | | :-------------------------------- | :------ | :------- | :----- | | Weighted average cost of U3O8 sold | $59.42/lb | $100.71/lb | Reduced | - Delivery of 350,000 pounds of U3O8 into sales contracts at an average price of $62.58 per pound[4] - No U3O8 has been, nor is forecasted to be, purchased in 2025[4] - Closing cash and equivalent balance of $26.9 million with working capital of $30.2 million[4] Detailed Financials and Costs Total Costs of U3O8 Sold in Q2 2025 The total cost of 350,000 pounds of U3O8 sold in Q2 2025 was $59.42 per pound, with extracted uranium having a significantly lower cost per pound compared to purchased uranium Total Costs of U3O8 Sold (Q2 2025) | Category | Pounds U3O8 | Cost ('000) | Cost/pound | | :----------------- | :---------- | :---------- | :--------- | | Total Cost of all Pounds | 350,000 | $20,796 | $59.42 | | Purchased (2024) | 225,000 | $15,430 | $68.58 | | Extracted total cost | 125,000 | $5,365 | $42.92 | | Extracted cash cost | - | $3,607 | $28.86 | | Extracted non-cash cost | - | $1,758 | $14.06 | Inventory Remaining on Hand (End Q2 2025) At the end of Q2 2025, enCore held 244,204 pounds of U3O8 inventory at an average cost of $39.63 per pound, with the majority being lower-cost extracted uranium Inventory Remaining on Hand (End Q2 2025) | Category | Pounds U3O8 | Cost ('000) | Cost/pound | | :----------------- | :---------- | :---------- | :--------- | | Total Cost of Inventory | 244,204 | $9,678 | $39.63 | | Purchased (2024) | 20,000 | $1,188 | $59.42 | | Extracted total cost | 224,204 | $8,490 | $37.87 | | Extracted cash cost | - | $6,098 | $27.20 | | Extracted non-cash cost | - | $2,392 | $10.67 | Operational Developments and Project Overviews Alta Mesa Project Updates Wellfield development at Alta Mesa's Wellfield 7 continued to expand with 75 new wells, part of an accelerated ramp-up strategy. The project is a 70/30 joint venture with Boss Energy Limited, managed by enCore, with a total operating capacity of 1.5 million pounds uranium per year - Wellfield development at the Alta Mesa Project's Wellfield 7 continued to expand throughout Q2 2025 with the addition of 75 wells (35 extraction, 40 injection), as part of an ongoing ramp-up strategy[9] - The Company anticipates increasing the number of drill rigs operating to 30 in Q3 2025, up from 24 at the end of Q2[9] - The Alta Mesa Uranium Project hosts a fully licensed and constructed ISR Central Processing Plant and operational wellfield, operating under a 70/30 joint venture with Boss Energy Limited, managed by enCore[10] - Total operating capacity at the Alta Mesa CPP is 1.5 million pounds uranium per year with additional drying capacity of 0.5 million pounds[10] Upper Spring Creek ISR Uranium Project Significant permitting progress was made for the Upper Spring Creek ISR Uranium Project, with its inclusion in the existing Radioactive Materials License, allowing for construction of wellfields and a Satellite IX Plant. This 100% Company-owned project is planned as a Satellite IX Plant operation for the Rosita CPP - Important permitting progress during Q2 2025 included the Upper Spring Creek ISR Uranium Project in the existing Radioactive Materials License ("RML") from the TCEQ, allowing construction of wellfields and a Satellite Ion Exchange ("IX") Plant[9] - Construction activities for the Satellite IX Plant commenced during the quarter[9] - The 100% Company-owned Upper Spring Creek Project is a planned Satellite ion exchange ("IX") Plant operation for the Rosita CPP[12] Rosita ISR Uranium Central Processing Plant The Rosita CPP serves as a central processing hub, receiving uranium-loaded resin from remote Satellite IX Plants across South Texas, enabling cost-effective and modular operations - The Rosita CPP can receive uranium-loaded resin from remote project areas across the South Texas region through a network of Satellite IX Plants[13] - These modular, efficient, and relocatable IX Plants allow for cost-effective operation across multiple sites without the need to construct full processing facilities at each location[13] Corporate Information and Disclosures Investor Information enCore's full interim financial statements and Management's Discussion and Analysis are available in the Company's Quarterly Report on Form 10-Q, filed with the SEC - enCore's interim financial statements, including the accompanying Management's Discussion and Analysis, are available in the Company's Quarterly Report on Form 10-Q, filed with the SEC[14] - The report can be accessed at www.sec.gov and on enCore's investor relations page at www.encoreuranium.com[14](index=14&type=chunk) Technical Disclosure and Qualified Person Technical disclosure in the news release has been reviewed and approved by John M. Seeley, enCore's Chief Geologist and a Qualified Person - John M. Seeley, Ph.D., P.G., C.P.G., enCore's Chief Geologist, and a Qualified Person under Canadian National Instrument 43-101 and S-K 1300, has reviewed and approved the technical disclosure in this news release[15] About enCore Energy Corp. enCore Energy Corp. positions itself as America's Clean Energy Company™, focused on providing clean, reliable, and affordable fuel for nuclear energy through its ISR uranium operations, with multiple central processing plants and a pipeline of future projects - enCore Energy Corp., America's Clean Energy Company™, is committed to providing clean, reliable, and affordable fuel for nuclear energy[16] - The company is the only United States uranium company with multiple central processing plants in operation, solely utilizing ISR for uranium extraction[16] - enCore operates the 100% owned Rosita CPP in South Texas and manages the 70/30 joint venture with Boss Energy Ltd. at Alta Mesa[17] - Future projects in enCore's planned project pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming[18] Cautionary Note Regarding Forward Looking Statements The press release contains forward-looking statements based on management's expectations, which are subject to significant risks and uncertainties that could cause actual results to differ materially - This press release contains "forward-looking statements" regarding future or potential extraction, success of ISR operations, development plans, and uranium purchase forecasts[21][22] - These statements are not guarantees of future results and are subject to important risks and uncertainties, many beyond the Company's control, that could cause actual results to differ materially[22] Non-GAAP Financial Measures The press release includes non-GAAP financial measures such as total cost of extracted pounds and uranium cost per extracted pound, which are used to evaluate operational efficiency but should not be considered in isolation from GAAP results - This press release contains non-GAAP financial measures, including total cost of extracted pounds, uranium cost per extracted pound, total cost of extracted inventory, and uranium cost per pound of extracted inventory[23] - These non-GAAP measures are used in evaluating the efficiency and cost-effectiveness of the Company's extraction operations and overall cost structure[23] - The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for reported results under U.S. GAAP, and may not be comparable to similarly titled measures used by other companies[23]