Westwater Resources(US:WWR)2025-11-12 21:17Financial Performance - Westwater reported a net loss of $9.8 million, or $0.12 per share, for the three months ended September 30, 2025, compared to a net loss of $3.1 million, or $0.05 per share, for the same period in 2024, marking a $6.7 million increase in net loss [150]. - For the nine months ended September 30, 2025, the net loss was $16.4 million, or $0.21 per share, compared to a net loss of $9.8 million, or $0.17 per share, for the same period in 2024, reflecting a $6.6 million increase [151]. - General and administrative expenses increased by $1.0 million and $1.4 million for the three and nine months ended September 30, 2025, respectively, primarily due to increased stock compensation expenses [153]. - Net cash used in operating activities increased by $4.2 million to $7.9 million for the nine months ended September 30, 2025, compared to the same period in 2024 [156]. - Net cash used in investing activities rose by $2.4 million for the nine months ended September 30, 2025, primarily due to construction capital expenditures for the Kellyton Graphite Plant [157]. - Net cash provided by financing activities increased by $21.6 million for the nine months ended September 30, 2025, driven by proceeds from Convertible Notes and Common Stock sales [158]. - As of September 30, 2025, the Company's cash balance was approximately $12.9 million, with net proceeds of $10.1 million from the sale of 13.8 million shares of Common Stock [162]. - Subsequent to September 30, 2025, the Company sold 22.2 million shares of Common Stock for net proceeds of $43.3 million, raising its cash balance to approximately $53 million as of November 5, 2025 [163]. - The Company has approximately $26.2 million remaining available for future sales under the 2024 Lincoln Park PA as of September 30, 2025 [165]. - The Company has not recorded revenue from operations since 2009, and current liabilities exceeded current assets as of September 30, 2025, indicating risks associated with development stage companies [159]. Project Development - The company incurred approximately $125.1 million in costs related to the Kellyton Graphite Plant project as of September 30, 2025 [130]. - Westwater's qualification line at the Kellyton Graphite Plant produced multiple samples of over 1 metric ton of CSPG for customers for pre-production cell trials and testing [131]. - Construction activities for the Kellyton Graphite Plant have been significantly reduced until additional funding is secured [161]. Strategic Initiatives - The company has received a U.S. Patent for its graphite purification method, which avoids the use of hazardous substances and positions Westwater as a leader in sustainable production [128]. - Westwater continues to explore additional offtake opportunities after FCA unexpectedly terminated its Offtake Agreement, while agreements with SK On and Hiller Carbon remain in effect [124][125]. - The company is working on securing a $150 million secured debt facility, which is currently on hold due to the termination of the FCA contract [136]. - The Company filed a prospectus supplement on October 17, 2025, to register the offer and sale of shares of Common Stock for up to $75 million under the ATM Sales Agreement [164]. Market Context - The U.S. is almost 100% dependent on imports for battery-grade graphite, highlighting the geopolitical risks and supply-chain vulnerabilities associated with critical minerals [140]. - The Company faces significant risks related to funding availability, market volatility, and operational challenges that could impact its business plan and construction timelines [166].