enCore Energy(EU) - 2025 Q2 - Quarterly Report

Cautionary Note Regarding Forward-Looking Statements This section outlines forward-looking statements, their inherent risks, uncertainties, and underlying material assumptions Cautionary Note Regarding Forward-Looking Statements This section outlines forward-looking statements and information, identifying common terminology and specifying that these statements are not historical facts but reflect current views subject to known and unknown risks, uncertainties, assumptions, and other factors, also listing key material assumptions and potential risks that could cause actual results to differ materially - Forward-looking statements are not historical facts and are made as of the date of this Quarterly Report, reflecting the Company's current views with respect to future events[12][13][17] - Material assumptions include the Company's future financial and operational performance, sufficiency of working capital, timing of work programs, future exchange rates, estimated capital costs, plans for property/exploration/development, regulatory approvals, uranium market prices, and potential impacts of litigation[13][14] - Key risks and uncertainties that could cause actual results to differ materially include budget assumptions, ability to raise additional capital, regulatory approvals, demand/supply of uranium, market prices, tax rates, decommissioning obligations, mineral resource estimates, compliance with environmental/safety regulations, political instability, negative operating cash flows, and material weaknesses in internal controls[15][16] PART I - FINANCIAL INFORMATION This part presents the company's unaudited consolidated financial statements and management's discussion and analysis Item 1. Financial Statements This section presents enCore Energy Corp.'s unaudited consolidated financial statements, including balance sheets, statements of operations, comprehensive loss, cash flows, and stockholders' equity, with detailed notes Consolidated Balance Sheets This section presents the company's financial position, detailing assets, liabilities, and equity at specific reporting dates | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Cash and cash equivalents | $26,897 | $39,701 | | Inventory, net | $9,678 | $20,967 | | Total current assets | $49,918 | $87,414 | | Mineral rights and properties, net | $267,350 | $271,922 | | Total assets | $359,379 | $392,722 | | Total current liabilities | $19,721 | $30,080 | | Total liabilities | $64,460 | $74,180 | | Total equity | $294,919 | $318,542 | Consolidated Statements of Operations This section details the company's revenues, cost of sales, gross profit or loss, operating loss, and net loss over specific reporting periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $3,664 | $5,320 | $21,904 | $35,714 | | Cost of sales | $2,534 | $10,428 | $20,796 | $41,291 | | Gross profit (loss) | $1,130 | $(5,108) | $1,108 | $(5,577) | | Operating loss | $(19,277) | $(22,972) | $(34,903) | $(35,249) | | Net loss | $(8,835) | $(23,621) | $(34,222) | $(31,363) | | Net loss attributable to enCore Energy Corp. | $(6,326) | $(22,019) | $(30,569) | $(29,301) | | Net loss per share (basic and diluted) | $(0.03) | $(0.12) | $(0.16) | $(0.16) | Consolidated Statements of Comprehensive Loss This section presents the company's net loss and other comprehensive income or loss components for specific reporting periods | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net loss | $(8,835) | $(23,621) | $(34,222) | $(31,363) | | Foreign currency translation adjustment | $1,264 | $(1,117) | $1,329 | $(915) | | Comprehensive loss | $(7,571) | $(24,738) | $(32,893) | $(32,278) | | Comprehensive loss attributable to enCore Energy Corp. | $(5,062) | $(23,136) | $(29,240) | $(30,216) | Consolidated Statements of Cash Flow This section reports the cash inflows and outflows from operating, investing, and financing activities for the reporting periods | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(17,629) | $(40,117) | | Net cash provided by (used in) investing activities | $(2,115) | $(10,914) | | Net cash provided by financing activities | $6,551 | $99,327 | | Cash, cash equivalents and restricted cash, end of period | $34,922 | $63,455 | Consolidated Statements of Stockholders' Equity This section details changes in the company's equity accounts, including common stock, additional paid-in capital, and accumulated deficit | Metric (in thousands) | Balance at January 1, 2025 | Balance at June 30, 2025 | | :-------------------------------- | :------------------------- | :----------------------- | | Common Stock Shares | 186,115 | 187,058 | | Common Stock Amount | $380,325 | $381,861 | | Additional Paid-in-Capital | $59,856 | $66,500 | | Accumulated Deficit | $(150,848) | $(181,417) | | Total Equity | $318,542 | $294,919 | Notes to Consolidated Financial Statements This section provides detailed explanations and breakdowns of figures in the consolidated financial statements, covering accounting policies and specific account balances Note 1. Nature of Operations This note describes the company's primary business activities, focusing on uranium acquisition, exploration, development, and extraction - enCore Energy Corp. is primarily engaged in the acquisition, exploration, development, and extraction of uranium resource properties in the United States[39] - The Company utilizes In-Situ Recovery (ISR) technology for domestic uranium extraction to fuel clean, reliable, and carbon-free nuclear energy[40] - As of June 30, 2025, the Company is classified as an 'Exploration Stage Issuer' as it has not established proven or probable mineral reserves[41] Note 2. Summary of Significant Accounting Policies This note outlines the key accounting principles and methods used in preparing the consolidated financial statements - Effective January 1, 2025, the Company became a U.S. Domestic Issuer and prepares its consolidated financial statements in accordance with U.S. GAAP[43] - The Company consolidates entities it controls, including the Alta Mesa Project (70% interest) which is considered a Variable Interest Entity (VIE) where enCore is the primary beneficiary[46][47] - As an Exploration Stage company, expenditures for mineral rights acquisition are capitalized, while exploration and pre-extraction expenditures are expensed until proven or probable reserves are established[52][53] - Inventories are measured at the lower of cost and net realizable value, and marketable equity securities are classified as available-for-sale, with changes in fair value recognized in other income (loss)[62][63] - The Company adopted ASU 2023-07 (Segment Reporting) effective **January 1, 2