美国
证券和交易委员会
华盛顿特区 20549
表格
| | 根据1934年证券交易法第13或15(d)节的季度报告 |
截至本季度结束
or
| | 根据1934年证券交易法第13或15(d)节的转型报告书 |
从_____到_____的过渡期
委托文件编号：001-39866
铀能源公司
(根据其章程规定的注册人准确名称)
| | | |
| (公司所在地区或其他司法辖区) | (内部税务局雇主识别号码) | |
| | | |
| （美国公司总部） | （邮政编码） | |
| 1830 –1188 西乔治街 不适用 （加拿大企业总部） | 2023股票激励计划 (计划的全称)
(邮政编码) |
(主要行政办公室地址)
| ( | ||
| (注册人电话号码，包括区号) | ||
| 不适用 | ||
| （前名称、地址及财政年度，如果自上次报告以来有更改） |
在法案第12(b)条的规定下注册的证券：
| 每个类别的标题 | 交易标的 | 在其上注册的交易所的名称 |
| | | |
请在检查标记处注明注册人（1）是否已在证券交易法第13或15（d）条所规定的过去12个月（或注册人需要提交此类报告的较短期间）内提交了所有必须提交的报告，并且（2）自过去90天以来一直受到此类提交要求的限制。
请在以下勾选方框表示注册人是否已在Regulation S-T Rule 405规定的前12个月(或在注册人需要提交此类文件的较短期间内)提交了每个互动数据文件。
请用复选标记指示注册人是大型加速归档者、加速归档者、非加速归档者、较小报告公司还是新兴增长公司。请参阅《交易所法》第120亿.2条中对“大型加速归档者”、“加速归档者”、“较小报告公司”和“新兴增长公司”的定义。
☒
☐ 非快速备案者
如果是新兴成长型公司，在选中复选标记的同时，如果公司已选择不使用根据证券交易法第13(a)条提供的任何新的或修订后的财务会计准则的延长过渡期来符合新的或修订后的财务会计准则，则表明该公司已选择不使用根据证券交易法第13(a)条提供的任何新的或修订后的财务会计准则的延长过渡期来符合新的或修订后的财务会计准则。☐
请在复选标志处注明公司是否为壳公司（根据交易所法令第12b-2条的定义）。
是的
请说明发行人普通股每个类别的流通股票在最近可行日期的流通情况：
目录
| 4 | ||
| 项目1。 |
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| 项目2。 |
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| 项目3。 |
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| 项目4. |
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| 36 | ||
| 项目1。 |
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| 项目1A。 |
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| 项目2。 |
未注册的股票股权销售和筹款用途 | 48 |
| 项目3。 |
48 | |
| 项目4。 |
48 | |
| 项目5。 |
48 | |
| 项目6。 |
49 | |
| 50 | ||
uranium energy corp.
中期简明合并财务报表
对于这个 2024年10月31日结束的三个月
(未经审核 – 以千美元为单位，除非另有说明
uranium energy corp.
临时简明合并资产负债表
(未经审核 – 以千美元表示)
| 注释 | 2024年10月31日 | 2024年7月31日 | |||||||||
| 流动资产 | |||||||||||
| 现金及现金等价物 | $ | $ | |||||||||
| 存货 | 3 | ||||||||||
| 预付费用和存款 | |||||||||||
| 其他流动资产 | |||||||||||
| 投资于股票证券 | 8 | ||||||||||
| 总流动资产 | |||||||||||
| 矿产权和财产 | 4 | ||||||||||
| 财产、植物及设备 | 5 | ||||||||||
| 限制性现金 | 6 | ||||||||||
| 股权相关投资 | 7 | ||||||||||
| 股票投资 | 8 | ||||||||||
| 其他非流动资产 | |||||||||||
| 总资产 | $ | $ | |||||||||
| 流动负债 | |||||||||||
| 应付帐款及应计负债 | $ | $ | |||||||||
| 资产退役义务 - 当前 | 9 | ||||||||||
| 衍生性负债 | 10 | ||||||||||
| 其他流动负债 | |||||||||||
| 流动负债总额 | |||||||||||
| 资产 养老 退休债务 | 9 | ||||||||||
| 其他非流动负债 | |||||||||||
| 递延所得税负债 | |||||||||||
| 负债合计 | |||||||||||
| 股东权益 | |||||||||||
| 股本 | |||||||||||
| 普通股 $ 面值： 授权股份数， 截至2024年7月31日已发行和流通的股票数量 - ) | 11 | ||||||||||
| 资本公积额额外增资 | |||||||||||
| 累积亏损 | ( | ) | ( | ) | |||||||
| 累积其他全面损失 | ( | ) | ( | ) | |||||||
| 总股本 | |||||||||||
| 总负债及股东权益 | $ | $ | |||||||||
| 承诺事项与可能负担之事项 | 3,9 | ||||||||||
| 后续事件 | 3,11 | ||||||||||
附注是这些临时简明合并财务报表的不可或缺部分。
uranium energy corp.
综合损益暂行分户联合财务报表
(未经审核 – 以美元千为单位，除了份额和每股数据)
| 截至三个月 |
||||||||||||
| 10月31日 |
||||||||||||
| 注释 |
2024 |
2023 |
||||||||||
| 销售和服务收入 |
13 | $ | $ | |||||||||
| 销售和服务成本 |
13 | ( |
) | ( |
) | |||||||
| 毛利润 |
||||||||||||
| 营运成本 |
||||||||||||
| 矿业物业支出 |
4 | |||||||||||
| 一般及行政费用 |
||||||||||||
| 折旧、摊销及累计 |
4,5,9 | |||||||||||
| 总经营成本 |
||||||||||||
| 营运损失 |
( |
) | ( |
) | ||||||||
| 其他收入（费用） |
||||||||||||
| 利息费用和融资成本 |
( |
) | ( |
) | ||||||||
| 权益法投资收益（损失） |
7 | ( |
) | |||||||||
| 资产处置收益 |
||||||||||||
| 股权证券的公允价值增值（损失） |
8 | ( |
) | |||||||||
| 衍生负债重估的收益（损失） |
10 | ( |
) | |||||||||
| 利息收入 |
||||||||||||
| 其他 |
||||||||||||
| 其他收入（费用） |
( |
) | ||||||||||
| 综合损益前所得税净额 |
( |
) | ||||||||||
| 递延税款收回 |
||||||||||||
| 期间净利润（损失） |
( |
) | ||||||||||
| 其他综合损益 |
||||||||||||
| 翻译丢失 |
( |
) | ( |
) | ||||||||
| 其他综合亏损总额 |
( |
) | ( |
) | ||||||||
| 本期综合亏损总额 |
$ | ( |
) | $ | ( |
) | ||||||
| 每股净利润（亏损） |
14 | |||||||||||
| 基本 |
$ | ( |
) | $ | ||||||||
| 摊薄 |
$ | ( |
) | $ | ||||||||
| 加权平均股本数 |
||||||||||||
| 基本 |
||||||||||||
| 摊薄 |
||||||||||||
附注是这些临时简明合并财务报表的不可或缺部分。
uranium energy corp.
中期简明综合现金流量表
(未经审核 – 以千美元表示)
| 截至10月31日的三个月 |
|||||||
| 注释 |
2024 |
2023 |
|||||
| 营业活动 |
|||||||
| 期间内的净利润（损失） |
$ | ( |
) | $ | |||
| 对净利润（亏损）进行调整以使其与经营活动中的现金流相符 |
|||||||
| 基于股票的薪酬 |
12 | ||||||
| 折旧、摊销及累计 |
4,5,9 | ||||||
| (收入) 由于权益法核算投资的损失 |
7 | ( |
) | ||||
| 资产处置收益 |
( |
) | ( |
) | |||
| (收益) 公允价值变动损失-权益证券 |
8 | ( |
) | ||||
| (收益) 公允价值变动损失-衍生负债 |
10 | ( |
) | ||||
| 递延税款收回 |
( |
) | ( |
) | |||
| 营业资产和负债的变动 |
|||||||
| 存货 |
( |
) | |||||
| 预付费用和存款 |
( |
) | ( |
) | |||
| 其他流动资产 |
|||||||
| 应付帐款及应计负债 |
( |
) | |||||
| 其他负债 |
|||||||
| 营运活动中的净现金支出 |
( |
) | ( |
) | |||
| 融资活动 |
|||||||
| 发行股票的收入，扣除发行成本后 |
11,12 | ||||||
| 与期权、限制性股票单位（RSUs）和绩效限制性股票单位（PRSUs）相关的员工税款预扣支付 |
( |
) | ( |
) | |||
| 筹集资金活动提供的净现金 |
|||||||
| 投资活动 |
|||||||
| 矿权和物业投资 |
( |
) | ( |
) | |||
| 对权益法核算投资的资本贡献 |
7 | ( |
) | ( |
) | ||
| 购买权益法核算投资的额外权益 |
7 | ( |
) | ||||
| 投资于股票证券 |
8 | ( |
) | ||||
| 出售股权证券的收益 |
8 | ||||||
| 购入不动产、厂房及设备 |
( |
) | ( |
) | |||
| 资产处置收益 |
8 | ||||||
| 投资活动之净现金流入（流出） |
( |
) | |||||
| 现金、货币等同物和受限制现金的净变动 |
|||||||
| 现金的汇率期货差额 |
( |
) | ( |
) | |||
| 现金、现金等价物及受限现金，期初 |
|||||||
| 期末现金、现金等价物及限制性现金余额 |
$ | $ | |||||
附注是这些临时简明合并财务报表的不可或缺部分。
uranium energy corp.
股东权益的中期简明综合报表’权益
(未经审计 - 除每股数据外，金额以千美元表示)
| 普通股 |
额外认购资本 |
累积亏损 |
累积其他综合损失 |
股东权益 |
||||||||||||||||||||
| 股份 |
金额 |
|||||||||||||||||||||||
| 2024年7月31日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
| 普通股 |
||||||||||||||||||||||||
| 在ATm发行中发行，扣除发行成本 |
||||||||||||||||||||||||
| 在行使股票期权时发行 |
||||||||||||||||||||||||
| 在行使warrants时发行 |
||||||||||||||||||||||||
| 基于股票的薪酬 |
||||||||||||||||||||||||
| 发行普通股以取得咨询服务 |
||||||||||||||||||||||||
| 股票奖励摊销 |
- | |||||||||||||||||||||||
| 本期净亏损 |
- | ( |
) | ( |
) | |||||||||||||||||||
| 其他综合损失 |
- | ( |
) | ( |
) | |||||||||||||||||||
| 2024年10月31日的余额 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
附注是这些临时简明合并财务报表的不可或缺部分。
uranium energy corp.
中期简明合并股东财务报表’权益
(未经审计 - 以美元千为单位，股票数据除外)
| 普通股 |
额外认购资本 |
累积亏损 |
累积其他综合损失 |
股东权益 |
||||||||||||||||||||
| 股份 |
金额 |
|||||||||||||||||||||||
| 2023年7月31日余额 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
| 普通股 |
||||||||||||||||||||||||
| 在ATM发行下，扣除发行成本后的净利润 |
||||||||||||||||||||||||
| 在行使股票期权时发行 |
||||||||||||||||||||||||
| 基于股票的薪酬 |
||||||||||||||||||||||||
| 股票奖励摊销 |
- | |||||||||||||||||||||||
| 期间净利润 |
- | |||||||||||||||||||||||
| 其他综合损失 |
- | ( |
) | ( |
) | |||||||||||||||||||
| 截至2023年10月31日之结余 |
$ | $ | $ | ( |
) | $ | ( |
) | $ | |||||||||||||||
附注是这些临时简明合并财务报表的不可或缺部分。
| 注意1: | 业务性质 |
铀能源公司于 2003年5月16日成立。 铀能源公司及其子公司和一家控股合伙企业（统称为“公司”或“我们”）从事铀矿开采及相关活动，包括在位于美国、加拿大和巴拉圭共和国的项目上进行铀浓缩物的勘探、预提取、提取和加工。
截至至今 2024年10月31日在这，我们的营运资本（流动资产减去流动负债）为$
我们能否继续作为持续经营单位，取决于我们能够实现销售我们铀存货的一致正现金流，并获得足够的额外融资，因为我们的业务资本密集，未来的资本支出预计将是相当可观的。 12 历史上，我们主要依赖于通过销售普通股进行的股权融资和债务融资来资助我们的运营，这种依赖预计在可预见的未来将继续。我们的持续运营，包括我们资产的账面价值的可回收性，最终取决于我们实现和维持盈利能力及来自我们运营的正现金流的能力。
| 注意2: | 重要政策摘要 |
演示基础
随附的未经审计的中期简明合并财务报表是根据美国（“美国”）中期财务信息的公认会计原则（“美国公认会计原则”）编制的，以美元列报。因此，他们确实如此 不 包括美国公认会计原则要求的所有信息和脚注，以完成财务报表。这些未经审计的中期简明合并财务报表应与我们的年度报告表格中包含的经审计的合并财务报表一起阅读 10-k（截至年底的年度） 二零二四年七月三十一日 （“财政 2024”）。管理层认为，所有经常性的、被认为是公允列报所必需的调整都已作出。的经营业绩三 已结束的月份 二零二四年十月三十一日 是 不 必须表明结果 可能 预计将在财政年度结束时出现 2025 年 7 月 31 日 （“财政 2025”）。除非另有说明，表中的所有金额均以千美元表示。
矿业权和物业
我们已经确定某些铀项目存在矿化材料，包括我们的帕兰加纳矿、克里斯滕森牧场矿（统称为 “ISR矿山”）以及我们的Roughrider和Christie湖项目。我们有不根据美国证券交易委员会（“SEC”）子部分的定义，已建立的已证储备或可能的储备1300s-k（“S-K”）法规1300”），通过对我们运营的任何铀项目（包括我们的ISR矿山）完成 “最终” 或 “银行可承担” 的可行性研究。此外，我们有没有 提出计划，为我们计划使用原地回收（“ISR”）采矿的任何铀项目（例如我们的ISR矿山）建立已探明或可能的储量。因此，尽管我们开始在ISR矿山开采矿化材料，但根据美国证券交易委员会的定义，我们仍然是勘探阶段的发行人，并将继续作为勘探阶段的发行人，直到确定探明或可能的储量。
由于我们在没有建立已探明或可能储量的情况下开始在我们的ISR矿山中提取矿化材料，因此从我们的ISR矿山建立或提取的任何矿化材料应该 不 与建立或来自已探明或可能储量的任何方式无关。
根据美国公认会计原则，与获取矿权相关的支出在发生时最初计入资本，而勘探和预开采支出在发生时计入费用，直到我们通过确定已探明或可能储量退出勘探阶段。与勘探活动相关的支出，例如钻探项目以建立矿化材料，均在发生时计入费用。与预开采活动相关的支出，例如矿井水田、离子交换设施和处置井的施工，均在发生时计入费用，直到为该项目建立已探明或可能储量，此后与该特定项目的矿山开发活动有关的支出将视为资本支出并在发生时计入。
根据证监会的定义，处于生产阶段的公司已经建立了经核实的和可能的储量并退出了勘探阶段，通常会资本化与持续的开发活动相关的支出，相应地，使用产量法计算核实和可能的储量的逐步减少，并分配到未来报告期的存货中，然后在存货销售时分配给营业成本。我们处于勘探阶段，这导致我们公司报告的亏损较大，原因是对持续的矿山开发活动支出采用了费用化而不是资本化。此外，还将分配相应的减少额到我公司未来报告期，因为这些成本先前已被费用化，导致存货成本和营业成本都更低，毛利润更高，亏损更低，相较于如果我们处于生产阶段。任何资本化成本，如矿权的取得成本，都将使用直线法在估计的采出寿命内逐步减少。因此，我们的合并基本报表可直接与生产阶段公司的财务报表进行比较。 no 由于这些成本已被费用化，我公司未来报告期将有对应的减少分配，导致存货成本和营业成本以及运营结果都比如果我们处于生产阶段时要低，而毛利润更高，亏损更低。任何资本化成本，例如矿权的取得成本，将会使用直线法在估计的采出寿命内逐步减少。因此，我们的合并基本报表 可以 不 可直接与处于生产阶段的公司的财务报表进行比较。
会计宣告 未 尚未被采纳
在 在2023年12月15日之后开始的财政年度， 金融会计准则委员会（"FASB"）发布了会计准则更新（"ASU"） 2023-07, 分部报告 (主题): 改善可报告分部披露要求，主要通过披露重要分部支出和评估分部业绩所使用的信息加以加强。本更新将于公司的财政年度年度报告期生效，允许提前采用。该公司采用了ASU，以前瞻性的方式于 . (日期未给定)上采用了这一标准。本标准的采用并未对公司的中期简明合并财务报表产生任何影响。 280：对可报告部门披露的改进。此ASU通过要求披露定期提供给首席运营决策maker的重要部门费用，幷包含在每个报告的部门利润或损失指标中，要求提供其他部门项目的金额及其组成描述，以及可报告部门的利润或损失和资产的临时披露，从而扩展了公共实体的部门披露。所有关于此ASU的披露要求也适用于只有一个可报告部门的公共实体。此ASU自公司年报的表格 10-k开始适用于截至 七月31, 2025, 的财年及后续的中期，允许提前采用。公司目前正在评估采纳此ASU对其合并基本报表和披露的影响。
在 2023年12月，FASB发布了《会计标准更新》ASU 美国财会标准委员会(FASB)发布了《出版宣布》(ASU)。 2023-09, 所得税（主题 0）：所得税披露的改善，增强所得税披露的透明度和决策有用性。对于公共实体，ASU 0 将于 0 年度起生效。 740): 收入税披露的改进。该ASU通过要求报告实体的有效税率调节的分解信息以及收入税支付信息来扩大公共实体的收入税披露。该标准旨在通过提供更详细的收入税披露来使投资者受益，这对资本配置决策是有用的。该ASU将适用于2024年12月15日后开始的财政年度。 该指导将以预期的方式进行应用，并可以选择追溯适用该标准。允许提前采用。目前公司正在评估采用该ASU对其合并基本报表和披露的影响。
在 2024 年 3 月， 财经局发行 ASU 2024-02, 编纂方面的改进-删除对概念陈述的引用的修正案。本亚利桑那州立大学包含对编纂的修正案，删除了对各种 FasB 概念陈述的引用。这项工作促进了对技术更正的编纂更新，例如一致性修正案、对指南的澄清、指南的措辞或结构的简化以及其他细微的改进。虽然修正案是 不 由于某些实体可能会受到影响，FasB预计将为大多数实体带来重大变化，因此提供了过渡指导。该亚利桑那州立大学将在之后的财政年度内生效 2024 年 12 月 15 日， 允许提前收养。该公司目前正在评估采用该ASU对其合并财务报表和披露的影响。
在 2024年11月， 美国财会标准委员会(FASB)发布了《出版宣布》(ASU)。 2024-03, 损益表-报告综合收益-费用分解披露（二级主题 220-40）：损益表费用的分解。本会计准则更新要求公共实体在每个中期和年度报告期披露关于某些成本和费用的特定信息，包括库存采购、员工报酬、折旧、无形资产摊销以及与石油和燃料币活动相关的费用的金额。本会计准则更新将于 2026年12月15日之后开始的财政年度生效， 以及在2027年12月15日之后开始的中期期间生效， 允许早期采用。公司目前正在评估采用此ASU对其合并基本报表和披露的影响。
| 注意 3: | 存货 |
截至至今 2024年10月31日我们持有的
| 2024年10月31日 | 2024年7月31日 | |||||||
| 原材料和用品 | $ | $ | ||||||
| 生产过程中的存货 | ||||||||
| 从提取中获得的铀浓缩物 | ||||||||
| 购买的铀库存 | ||||||||
| $ | $ | |||||||
As of October 31, 2024, our uranium inventory purchase commitments for the next five fiscal years are as the follows:
| Purchase Commitments | ||||||||
| in Pounds | Purchase Price | |||||||
| Fiscal 2025 | $ | |||||||
| Fiscal 2026 | ||||||||
| Total | $ | |||||||
截至 2024年10月31日 我们致力于卖出
随后 2024年10月31日:
a) 我们出售了
b) 我们签订了合同以购买
| 注意 4: | 矿权与物业 |
矿权
截至至今 2024年10月31日在亚利桑那州、新墨西哥州、得克萨斯州和怀俄明州、加拿大以及巴拉圭共和国，我们拥有矿权。这些矿权是通过申请、购买、租赁或期权协议取得的，并受不同的皇家利益约束，其中一些与铀的销售价格挂钩。截至目前为止， 2024年10月31日，每年大约需要支付维持这些矿权的维护费用为
截至至今 2024年10月31日, 我们的矿权和财产的账面价值如下：
| 成本 | 美国 | 加拿大 | 巴拉圭 | 总计 | ||||||||||||
| 2024年7月31日的余额 | $ | $ | $ | $ | ||||||||||||
| 新增项目 | ||||||||||||||||
| 外币兑换的影响 | ( | ) | ( | ) | ||||||||||||
| 2024年10月31日的余额 | ||||||||||||||||
| 累计减耗和摊销 | 美国 | 加拿大 | 巴拉圭 | 总计 | ||||||||||||
| 2024年7月31日的余额 | ( | ) | ( | ) | ( | ) | ||||||||||
| 新增项目 | ( | ) | ( | ) | ||||||||||||
| 外币兑换的影响 | ||||||||||||||||
| 2024年10月31日的余额 | ( | ) | ( | ) | ( | ) | ||||||||||
| 账面价值 | ||||||||||||||||
| 2024年7月31日的余额 | $ | $ | $ | $ | ||||||||||||
| 2024年10月31日的余额 | $ | $ | $ | $ | ||||||||||||
在此期间记录的矿产资产支出如下：
| 截至10月31日的三个月 | ||||||||
| 2024 | 2023 | |||||||
| 许可和合规 | $ | $ | ||||||
| 物业维修 | ||||||||
| 探索 | ||||||||
| 发展 | ||||||||
| 提取准备工作 | ||||||||
| 总计 | $ | $ | ||||||
| 注意 5: |
财产、植物及设备 |
物业、厂房及设备包括以下内容:
| 2024年10月31日 |
2024年7月31日 |
|||||||||||||||||||||||
| 成本 |
累积的 |
净账面 |
成本 |
累积的 |
净账面 |
|||||||||||||||||||
| 折旧 |
价值 |
折旧 |
价值 |
|||||||||||||||||||||
| 植物和加工设施 |
$ | $ | ( |
) | $ | $ | $ | ( |
) | $ | ||||||||||||||
| 挖矿设备 |
( |
) | ( |
) | ||||||||||||||||||||
| 采伐设备和车辆 |
( |
) | ( |
) | ||||||||||||||||||||
| 计算机设备 |
( |
) | ( |
) | ||||||||||||||||||||
| 家具和固定设施 |
( |
) | ( |
) | ||||||||||||||||||||
| 建筑物 |
( |
) | ( |
) | ||||||||||||||||||||
| 土地 |
||||||||||||||||||||||||
| $ | $ | ( |
) | $ | $ | $ | ( |
) | $ | |||||||||||||||
| 注意6: 限制现金 |
受限现金包括作为担保的现金及现金等价物和货币市场基金，用于发布在亚利桑那州、德克萨斯州和怀俄明州的适用州监管机构的各种债券，以及与我们的工厂、加工设施和各种项目相关的预计复垦成本。受限现金将在矿产财产复垦完成或按金及担保安排重组后释放。
现金、现金等价物和限制性现金包含在以下账户中：
| 2024年10月31日 | 2024年7月31日 | |||||||
| 现金及现金等价物 | $ | | $ | |||||
| 受限现金 | ||||||||
| 现金、现金等价物和限制性现金的总额 | $ | $ | ||||||
潜在使公司面临信用风险集中的金融工具包括现金及现金等价物和受限制的现金。这些资产包括加币和美元计价的存款凭证，货币市场账户和活期存款。这些工具存放在加拿大和美国的金融机构。这些资产的最大信用风险是减去加拿大存款保险公司、证券投资者保护公司或美国联邦存款保险公司承保部分的账面价值，假如这些投资金额存放的金融机构变得资不抵债。截至 2024年10月31日 约为每股29.24美元（即“2028转换价格”），指公司普通股每股的转换率受相关契约所描述的某些事件的惯例调整限制。
| 注意 7: | 股权相关投资 |
截至至今 2024年10月31日, 我们持有
截至至今 2024年10月31日我们拥有
我们产生了$
在 三 截至之月份 2024年10月31日我们的权益核算投资的账面价值变动总结如下：
| 投资 | ||||||||||||
| URC | JCU | 总计 | ||||||||||
| 2024年7月31日的余额 | $ | $ | $ | |||||||||
| 资本出资 | ||||||||||||
| 亏损分担 | ( | ) | ( | ) | ( | ) | ||||||
| 持股减值盈利 | ||||||||||||
| 汇率期货差异 | ( | ) | ( | ) | ( | ) | ||||||
| 2024年10月31日的余额 | $ | $ | $ | |||||||||
For the 三 截至之月份 2024年10月31日 和 2023截至2023年10月，我们的权益法会计投资的收入（损失）包括以下内容：
| 截至10月31日的三个月 | ||||||||
| 2024 | 2023 | |||||||
| 收入（损失）份额 | $ | ( | ) | $ | ||||
| 持股减值盈利 | ||||||||
| 总计 | $ | ( | ) | $ | ||||
| 注意 8: | 股权证券投资 |
在 三 截至2024年10月31日的三个月内 ，我们在股权证券投资方面的变化如下：，我们在股权证券投资方面的变化如下：
| 2024年7月31日的余额 | $ | |||
| 在上市公司的投资销售 | ( | ) | ||
| 股票市值损失 | ( | ) | ||
| 汇率期货差异 | ( | ) | ||
| 2024年10月31日的余额 | $ |
截至持有权益证券的收购以来的累计重估调整为 2024年10月31日 的损失为$
| 注意 9: | 资产养老责任 |
资产退役义务（"ARO"）涉及我们工厂、加工设施和各种项目未来的整治和停产活动，总结如下：
| 二零二四年七月三十一日结余 | $ | |||
| 积聚 | ||||
| 余额，2024 年 10 月 31 日 | ||||
| 资产退休义务，目前 | ( | ) | ||
| 资产退休义务（非流动） | $ |
预计的现金流量金额和时间，以及用于ARO估算的假设如下：
| 2024年10月31日 | 2024年7月31日 | |||||||
| 未打折的估计现金流量金额 | $ | $ | ||||||
| 在年内支付 | ||||||||
| 通胀率 | ||||||||
| 折现率 | ||||||||
我们未折扣的预计现金流金额在接下来的 五 财政年度及之后如下所示：
| 财政2025年 | $ | |||
| 2026财年 | ||||
| 财政2027年 | ||||
| 财政2028年 | ||||
| 财政2029年 | ||||
| 剩余余额 | ||||
| $ |
| 注意10: | 衍生性负债 |
于2022年3月17日，法院发出了一份订单，暂停州级衍生诉讼，等候下文所述的联邦衍生诉讼解决。 2022年8月19日， 公司发布了替代权证（每份为“替代权证”），与UEX收购相关。这些替代权证被视为衍生负债，因为它们的行权价格以加元计价，而不同于我们的功能货币。
截至至今 2024年10月31日，有
| 2024年7月31日的余额 | $ | |||
| 替代权证的行使 | ( | ) | ||
| 在此期间的公平价值变动 | ( | ) | ||
| 2024年10月31日的余额 | $ |
| 笔记11: | 资本股 |
股权融资
于2022年3月17日，法院发出了一份订单，暂停州级衍生诉讼，等候下文所述的联邦衍生诉讼解决。 2022年11月16日， 我们提交了一个S-表格，3 根据经修订的美国证券法（ 1933, “证券法”），该表格在提交时生效，提供了我们自行决定不时公开发行和销售公司某些证券的条款，所涉及的普通股、债务证券、购买普通股或债务证券的认股权证、包括普通股、债务证券、认股权证或其任何组合的单位的认购收据（ “2022 “货架”），其中包括一个市场发行协议招股说明书（“ATm发行”），涵盖了最高售价为
于2022年3月17日，法院发出了一份订单，暂停州级衍生诉讼，等候下文所述的联邦衍生诉讼解决。 2022年11月16日， 我们还与H.C. Wainwright & Co., LLC及某些联合经理（统称为“ATm经理”）签订了市场出售协议（“ATm出售协议”），该协议规定我们 可能， 不时出售我们普通股的股份，累计发行价最高可达$
在 三 截至之月份 2023年10月31日，我们向37N发行了
在 三 截至之月份 2024年10月31日，我们向37N发行了
随后 2024年10月31日 我们发行了
股份购买认股权证
我们优秀股份购买权的连续时间表 三 截至之月份 2024年10月31日，如下所示：
| 数量 | 加权平均 | |||||||
| 认股权证 | 行使价格 | |||||||
| 2024年7月31日的余额 | $ | |||||||
| 已行使 | ( | ) | ||||||
| 已过期 | ( | ) | ||||||
| 2024年10月31日的余额 | $ | |||||||
截至 ，我们尚未行使的分享购买warrants的摘要如下： 2024年10月31日如下：
| 数量 | 加权平均剩余 | ||||||||||
| 加权平均 | 认股权证 | 合约上的 | |||||||||
| 行使价格 | 未解决 | 寿命（年） | 到期日 | ||||||||
| | |||||||||||
在 三 截至之月份 2024年10月31日我们从行使购股权获得了现金收益，总额为$
| 注意12: | 股票报酬 |
期权
我们未偿还的期权的连续性计划为 三 截至之月份 2024年10月31日如下：
| Number of Stock | 加权平均 | |||||||
| 期权 | 行使价格 | |||||||
| 2024年7月31日的余额 | $ | |||||||
| 已授予 | ||||||||
| 已行使 | ( | ) | ||||||
| 已取消/失效 | ( | ) | ||||||
| 2024年10月31日的余额 | ||||||||
下表列出了我们期权行权时发行股票数量和收到现金的情况：
| 截至10月31日的三个月 | ||||||||
| 2024 | 2023 | |||||||
| 现金基础上行使期权数量 | ||||||||
| 非现金基础上行使期权数量 | ||||||||
| 总行使期权数量 | ||||||||
| 现金基础上发行股票数量 | ||||||||
| 非现金基础上发行股票数量 | ||||||||
| 期权行使后已发行股份总数 | ||||||||
| 行使股票期权所收到的现金 | $ | $ | ||||||
| 已行使期权的总内在价值 | $ | $ | ||||||
截至日期，我们优秀的未投放期权持续时间表如下： 2024年10月31日，以及这段时间的变动如下：
| 未授予的股票期权数量 | 加权平均授予日公允价值 | |||||||
| 2024年7月31日的余额 | $ | |||||||
| 已授予 | ||||||||
| 已取消/失效 | ( | ) | ||||||
| 已归属 | ( | ) | ||||||
| 2024年10月31日的余额 | $ | |||||||
在 三 截至之月份 2024年10月31日 我们根据我们的 2024 股票激励计划（“股票激励计划”）授予了 一 我们的高管购买总计
For the 三 截至之月份 2024年10月31日，授予的期权的公允价值为$
| 行使价格 | $ | |||
| 预期无风险利率 | % | |||
| 预期波动性 | % | |||
| 预期生命年限 | ||||
| 预期股息率 | % |
截至至今 2024年10月31日我们所有未发行期权的综合内在价值估计为$
截至目前为止，我们股票期权的概况和行使情况总结如下 2024年10月31日如下：
| 期权未行使 | 可行使的期权 | |||||||||||||||||||||||
| 加权 | 加权 | |||||||||||||||||||||||
| 平均值 | 平均值 | |||||||||||||||||||||||
| 范围 | 加权 | 剩余 | 加权 | 剩余 | ||||||||||||||||||||
| 行使 | 杰出的 | 平均值 | 合约上的 | 可行使于 | 平均值 | 合约上的 | ||||||||||||||||||
| 价格 | 2024年10月31日 | 行使价格 | 期限（年） | 2024年10月31日 | 行使价格 | 期限（年） | ||||||||||||||||||
| $0.91 至 $0.99 | $ | $ | ||||||||||||||||||||||
| $1.00 至 $1.99 | ||||||||||||||||||||||||
| $2.00 至 $2.99 | ||||||||||||||||||||||||
| $3.00 至 $3.99 | ||||||||||||||||||||||||
| $4.00 至 $4.99 | ||||||||||||||||||||||||
| $5.00 至 $5.99 | ||||||||||||||||||||||||
| $6.00 至 $6.99 | ||||||||||||||||||||||||
| $7.00到$7.63 | ||||||||||||||||||||||||
| $ | $ | |||||||||||||||||||||||
限制性股票单位
在 三 截至之月份 2024年10月31日 公司授予
截至目前，我们未归属的RSU简介 2024年10月31日如下：
| 数量 | ||||||||||||||||
| 限制性股票 | 授予日期 | 剩余生命 | 总计 | |||||||||||||
| 授予日期 | 单位 | 公允价值 | (年) | 本益比 | ||||||||||||
| 2022年5月1日 | ||||||||||||||||
| 2022年7月29日 | ||||||||||||||||
| 2023年7月31日 | ||||||||||||||||
| 2024年1月2日 | ||||||||||||||||
| 2024年1月22日 | ||||||||||||||||
| 2024年3月13日 | ||||||||||||||||
| 2024年4月1日 | ||||||||||||||||
| 2024年7月26日 | ||||||||||||||||
| 2024年9月1日 | ||||||||||||||||
| 2024年10月1日 | ||||||||||||||||
| $ | $ | |||||||||||||||
在 三 截至之月份 2024年10月31日与限制性股票单位(RSU)相关的股票补偿为 $
Performance Based Restricted Stock Units
During the three months ended October 31, 2024, our stock-based compensation related to the amortization of performance based restricted stock units (each, a “PRSU”) totaled $
Stock-Based Compensation
A summary of our stock-based compensation expense for the three months ended October 31, 2024, is as follows:
| Three Months Ended | ||||||||
| October 31, | ||||||||
| 2024 | 2023 | |||||||
| Stock-Based Compensation for Consultants | ||||||||
| Common stock issued to consultants | $ | $ | ||||||
| Amortization of stock option expenses | ||||||||
| Amortization of RSU expenses | ||||||||
| Stock-Based Compensation for Management | ||||||||
| Amortization of stock option expenses | ||||||||
| Amortization of RSU and PRSU expenses | ||||||||
| Stock-Based Compensation for Employees | ||||||||
| Amortization of stock option expenses | ||||||||
| Amortization of RSU expenses | ||||||||
| $ | $ | |||||||
| NOTE 13: |
SALES AND SERVICE REVENUE AND COST OF SALES AND SERVICES |
The table below provides a breakdown of our sales and service revenue and cost of sales and service revenue:
| Three Months Ended October 31, |
||||||||
| 2024 |
2023 |
|||||||
| Sales of purchased uranium inventory |
$ | $ | ||||||
| Revenue from toll processing services |
||||||||
| Total sales and service revenue |
$ | $ | ||||||
| Cost of purchased uranium inventory |
$ | ( |
) | $ | ||||
| Cost of toll processing services |
( |
) | ||||||
| Total cost of sales and services |
$ | ( |
) | $ | ( |
) | ||
The table below provides a breakdown of major customers:
| Three Months Ended October 31, |
||||||||
| 2024 |
2023 |
|||||||
| Customer A |
% | % | ||||||
| Customer B |
% | % | ||||||
| Customer C |
% | % | ||||||
| % | % | |||||||
| NOTE 14: |
INCOME (LOSS) PER SHARE |
The following table reconciles the weighted average number of shares used in the calculation of our basic and diluted loss per share:
| Three Months Ended October 31, |
||||||||
| Numerator |
2024 |
2023 |
||||||
| Net Income (Loss) for the Period |
$ | ( |
) | $ | ||||
| Denominator |
||||||||
| Basic Weighted Average Number of Shares |
||||||||
| Dilutive Effect of Stock Awards and Warrants |
||||||||
| Diluted Weighted Average Number of Shares |
||||||||
| Net Income (Loss) Per Share – Basic |
$ | ( |
) | $ | ||||
| Net Income (Loss) Per Share – Diluted |
$ | ( |
) | $ | ||||
| NOTE 15: | SEGMENTED INFORMATION |
We currently operate in reportable segments, three of which are focused on uranium mining and related activities, including exploration, pre-extraction, extraction and processing of uranium concentrates, plus a corporate and administrative segment.
Segment results for the prior periods have been updated to reflect the change in reportable segments. The tables below provide financial information relating to the Company’s segments. All intercompany transactions have been eliminated.:
| Three months ended October 31, 2024 | Sales and service revenue | Depreciation, amortization and accretion | Loss from equity-accounted investment | Interest income | Loss before income taxes | Total expenditures for additions to long-lived assets | ||||||||||||||||||
| Mining | ||||||||||||||||||||||||
| Wyoming | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
| Texas | ( | ) | ||||||||||||||||||||||
| Saskatchewan | ( | ) | ||||||||||||||||||||||
| Others | ( | ) | ||||||||||||||||||||||
| Corporate and administrative | ( | ) | ( | ) | ||||||||||||||||||||
| Consolidated | $ | $ | $ | ( | ) | $ | $ | ( | ) | $ | ||||||||||||||
| Three months ended October 31, 2023 | Sales and service revenue | Depreciation, amortization and accretion | Income from equity- accounted investment | Interest income | Income (loss) before income taxes | Total expenditures for additions to long-lived assets | ||||||||||||||||||
| Mining | ||||||||||||||||||||||||
| Wyoming | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
| Texas | ( | ) | ||||||||||||||||||||||
| Saskatchewan | ( | ) | ||||||||||||||||||||||
| Others | ( | ) | ||||||||||||||||||||||
| Corporate and administrative | ||||||||||||||||||||||||
| Consolidated | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
| As of October 31, 2024 | Total assets | Equity-Accounted Investments | Long-lived assets other than financial instruments | |||||||||
| Mining | ||||||||||||
| Wyoming | $ | $ | $ | |||||||||
| Texas | ||||||||||||
| Saskatchewan | ||||||||||||
| Others | ||||||||||||
| Corporate and administrative | ||||||||||||
| Consolidated | $ | $ | $ | |||||||||
| As of July 31, 2024 | Total assets | Equity-Accounted Investments | Long-lived assets other than financial instruments | |||||||||
| Mining | ||||||||||||
| Wyoming | $ | $ | $ | |||||||||
| Texas | ||||||||||||
| Saskatchewan | ||||||||||||
| Others | ||||||||||||
| Corporate and administrative | ||||||||||||
| Consolidated | $ | $ | $ | |||||||||
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
(Expressed in thousands of U.S. dollars, except per share and per pound amounts)
The following management’s discussion and analysis of the Company’s financial condition and results of operations (the “MD&A”) contain forward-looking statements that involve risks, uncertainties and assumptions including, among others, statements regarding our capital needs, business plans and expectations. In evaluating these statements you should consider various factors, including the risks, uncertainties and assumptions set forth in reports and other documents we have filed with or furnished to the SEC and, including, without limitation, this Form 10-Q Quarterly Report for the three months ended October 31, 2024, and our Form 10-K Annual Report for Fiscal 2024, including the consolidated financial statements and related notes contained therein. These factors, or any one of them, may cause our actual results or actions in the future to differ materially from any forward-looking statement made in this Quarterly Report. Refer to “Cautionary Note Regarding Forward-looking Statements” as disclosed in our Form 10-K Annual Report for Fiscal 2024, and Item 1A, Risk Factors, under Part II - Other Information, of this Quarterly Report.
Introduction
This MD&A is focused on material changes in our financial condition from July 31, 2024, our most recently completed year end, to October 31, 2024, and our results of operations for the three months ended October 31, 2024, and should be read in conjunction with Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, as contained in our Form 10-K Annual Report for Fiscal 2024.
Business
We are engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing, on uranium projects located in the United States, Canada and the Republic of Paraguay, as more fully described in our Form 10-K Annual Report for Fiscal 2024.
In August 2024, we restarted uranium extraction at our fully permitted, and past producing, Christensen Ranch Mine ISR operation in Wyoming. We expect the ramp-up phase will continue while new production areas are being constructed and completing in early 2025. At the same time, we have continued to advance our Roughrider and Burke Hollow Projects with resource expansions and development programs, respectively.
Uranium recovered from the Christensen Ranch Mine ISR Project will be processed at our Irigaray central processing plant (“CPP”). The Irigaray CPP is the hub central to our four fully permitted ISR projects located in the Powder River Basin of Wyoming, including our Christensen Ranch Mine, Reno Creek, Moore Ranch and Ludeman projects. On October 16, 2024, we received approval from the Wyoming Department of Environmental Quality, Uranium Recovery Program, to increase the licensed production capacity at the Irigaray CPP to 4.0 million pounds of U3O8 annually.
In Texas, our fully-licensed and 100% owned Hobson Processing Facility forms the basis for our regional operating strategy in the State of Texas, specifically the South Texas Uranium Belt, where we utilize ISR mining. We utilize a “hub-and-spoke” strategy whereby the Hobson Processing Facility, which has a physical capacity to process uranium-loaded resins of up to a total of two million pounds of U3O8 annually and is licensed to process up to four million pounds of U3O8 annually, acts as the central processing site (the “hub”) for our Palangana Mine, and future satellite uranium mining activities, such as our Burke Hollow and Goliad Projects, located within the South Texas Uranium Belt (the “spokes”).
On September 20, 2024, we entered into a stock purchase agreement (the “Stock Purchase Agreement”) with Rio Tinto America Inc., a Delaware corporation (the “Seller”), pursuant to which we will acquire from the Seller all of the issued and outstanding shares of capital stock (the “Shares”) of (i) Kennecott Uranium Company, a Delaware corporation (“KUC”), which is a joint venture participant of, and owns a 50% ownership interest in, the Green Mountain Mining Venture, an unincorporated Wyoming contractual joint venture (“GMMV”), and (ii) Wyoming Coal Resources Company, a Delaware corporation (“WCRC”), which is a joint participant of, and owns a 50% ownership interest in GMMV (collectively, the “Acquisition”). KUC, WCRC and GMMV, collectively, own or hold the assets, rights and obligations comprised of: (i) the facilities, equipment, improvements and fixtures for the processing of uranium located in Sweetwater County, Wyoming, owned by KUC, WCRC and GMMV, and related facilities and impoundments; (ii) the Jackpot and Big Eagle properties located in Wyoming; (iii) the mineral and real property interests which are owned or leased by KUC, WCRC or GMMV, subject to the permitted encumbrances, including patented and unpatented mining and millsite claims, leaseholds, material easements and rights-of-way of record; and (iv) the other rights and interests in uranium mineralization located in Fremont and Sweetwater Counties, Wyoming, owned or held by any of KUC, WCRC or GMMV (collectively, the “Project”). The consideration for the Acquisition payable at closing of the Stock Purchase Agreement is $175 million in cash, subject to customary working capital adjustments as provided for in the Stock Purchase Agreement, with closing expected to occur during the quarter ending January 31, 2025. Upon completion of the Acquisition, we will replace approximately $25 million in surety bonds securing future reclamation costs relating to the Project. In addition, from and after the completion of the Acquisition we shall continue to indemnify the Seller from most of the liabilities associated with the Project. The closing of the Acquisition is subject to certain conditions customary for an Acquisition of this nature, including that the approval by the Wyoming Nuclear Regulator for the transfer of a Radioactive Materials License to us, which was issued on November 25, 2024.
On November 7, 2024, we filed an initial assessment technical report summary that includes an economic analysis and mineral resource estimate for our Roughrider Project, located in Northern Saskatchewan, Canada. The economic analysis is included in a technical report summary titled “S-K 1300 Initial Assessment Report – Roughrider Uranium Project, Saskatchewan, Canada”, issued on November 5, 2024 and prepared for the Company by Tetra Tech Canada Inc., Understood Mineral Resources Ltd., Snowden Optiro, Terracon Geotechnique Ltd. and Clifton Engineering Group Inc., in accordance with Item 1302 of S-K 1300.
We also hold certain mineral rights in various stages in the States of Arizona, New Mexico, Texas and Wyoming, and in Canada and in the Republic of Paraguay, many of which are located in historically successful mining areas and have been the subject of past exploration and pre-extraction activities by other mining companies.
Our operating and strategic framework is to become a leading low-cost North American focused uranium supplier based on expanding our uranium extraction activities, which includes advancing certain uranium projects with established mineralized materials towards uranium extraction and establishing additional mineralized materials on our existing uranium projects or through acquisition of additional uranium projects.
Key Issues
With the completion of the acquisition of Uranium One Americas, Inc. in December 2021 (the “U1A Acquisition”), we expanded our footprints in Wyoming with our Wyoming hub-and-spoke operations. The acquisition of UEX Corporation ("UEX") in August 2022 and the acquisition of Roughrider Mineral Holdings Inc. in October 2022 further expanded our footprints in Canada and, in particular, the Athabasca Basin in Saskatchewan. In the meantime, we continue to establish additional uranium mines through exploration and pre-extraction activities and direct acquisitions in both the U.S. and Paraguay, all of which require us to manage numerous challenges, risks and uncertainties inherent in our business and operations as more fully described in Item 1A. Risk Factors herein.
Our operations are capital intensive, and we will require significant additional financing to continue with our exploration, pre-extraction and extraction activities and acquire additional uranium projects. Historically, we have been reliant primarily on equity financings from the sale of our common stock to fund our operations. We have also relied on cash flows generated from the sales of our purchased uranium inventories under our physical uranium program to fund our operations. However, we have yet to achieve consistent profitability or develop consistent positive cash flow from operations. Our reliance on equity financings is expected to continue for the foreseeable future, and their availability whenever such additional financing is required will be dependent on many factors beyond our control including, but not limited to, the market price of uranium, the continuing public support of nuclear power as a viable source of electricity generation, the volatility in the global financial markets affecting our stock price and the status of the worldwide economy, any one of which may cause significant challenges in our ability to access additional financing, including access to the equity and credit markets. We may also be required to seek other forms of financing, such as asset divestitures or additional joint venture arrangements, to continue advancing our uranium projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project. However, there is no assurance that we will be successful in securing any form of additional financing when required and on terms favorable to us. Our inability to obtain additional financing would have a negative impact on our operations, including delays, curtailment or abandonment of any one or all of our uranium projects.
We have not established proven or probable reserves through the completion of a final or bankable feasibility study for any of the mineral projects we operate. We have established the existence of mineralized materials for certain uranium projects, including our ISR Mines. Since we commenced uranium extraction at our ISR Mines without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated.
The economic viability of our mining activities, including the expected duration and profitability of our ISR Mines, of any future satellite ISR mines, such as our Burke Hollow, Goliad, Ludeman, Antelope and Charlie Projects, and of our traditional uranium mines in the Athabasca Basin in Saskatchewan, Canada, has many risks and uncertainties. These include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct a mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected uranium extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. Our mining activities may change as a result of any one or more of these risks and uncertainties and there is no assurance that any ore body that we extract mineralized materials from will result in achieving and maintaining profitability and developing positive cash flow.
As at October 31, 2024, we had no uranium supply or off-take agreements in place. Future sales of U3O8 are therefore expected to generally occur through the uranium spot market, with any fluctuations in the market price continuing to have a direct impact on our revenues and cash flows.
Physical Uranium Program
The Company is investing in building the next generation of low-cost uranium projects that will be competitive on a global basis and which will use the ISR mining process which is expected to reduce the impact on the environment as compared to conventional mining. Despite our focus on low cost ISR mining with its low capital requirements, we saw a unique opportunity to purchase drummed uranium at prevailing spot prices which are below most global industry mining costs. Hence, we established a physical uranium portfolio (the “Physical Uranium Program”) and, as of October 31, 2024, we had 1,256,000 pounds of uranium and had entered into agreements to purchase 700,000 pounds of warehoused uranium from Fiscal 2025 to Fiscal 2026 at conversion facilities located in North America at a volume weighted average price of approximately $38.81 per pound. As of October 31, 2024, we were committed to sell 600,000 pounds of uranium inventory in the amount of $49.75 million for delivery between November 2024 to January 2025. Subsequent to October 31, 2024, we sold 500,000 pounds of uranium inventory for $41.40 million at a weighted average price of $82.80 per pound and we entered into contracts to purchase 300,000 pounds of uranium inventory in the amount of $23.43 million at a weighted average price of $78.08 per pound with delivery in December 2024.
Our Physical Uranium Program will support three objectives for our Company: (i) to bolster our balance sheet as uranium prices appreciate; (ii) to provide strategic inventory to support future marketing efforts with utilities that could compliment production and accelerate cash flows; and (iii) to increase the availability of our Texas and Wyoming production capacity for emerging U.S. origin specific opportunities which may command premium pricing due to the scarcity of domestic uranium. One such U.S. origin specific opportunity is the Company’s plan to participate in supplying the Uranium Reserve, as outlined in the Nuclear Fuel Working Group report published by the U.S. Department of Energy (“DOE”).
Uranium Market Developments
The uranium market is currently being driven by a macro demand for more electricity generation, an unprecedented global push to decarbonize electrical grids and geopolitical situations, among other factors. New electricity demand projections outlined from the "US Data Center Power Outlook" report issued in July 2024 showed new data center demand growth ranging from 60 to 90 gigawatt (“GW”) between 2023 and 2030. There is a growing realization that the highly reliable, safe, baseload power nuclear energy provides should be a part of any clean energy platform. Governments around the globe are also pursuing strategies to increase energy independence for national security interests that dovetail well with nuclear power as a key component in their energy mix. In the U.S. the White House recently announced that “the United States will aim to deploy 200 GW of net new nuclear energy capacity by 2050, at least tripling current U.S. capacity. The net new capacity gains are anticipated to come from multiple sources, including building new nuclear power plants, uprating existing reactors, and restarting reactors that have retired for economic reasons.”
Over the past few years, global uranium market fundamentals have improved as the market began a transition from being an inventory driven to a production driven market. The spot market bottomed out in November 2016 at about $17.75 per pound U3O8, but has since shown appreciation, reaching $107.00 per pound U3O8 on February 2, 2024. During the three months ended October 31, 2024, uranium prices averaged $81.13 per pound U3O8. As at October 31, 2024, the spot uranium price was $80.00 per pound U3O8, representing an approximate 7.3% increase from October 31, 2023 when the price was $74.55 per pound U3O8. The period from August 2024 through October 2024 was marked by continued spot price fluctuations between $85.00 and $78.00 per pound U3O8 (all price information is sourced from UxC LLC Historical Ux Daily Prices).
Underinvestment in uranium mining operations over the past decade has been a major factor contributing to a structural deficit between global production and uranium requirements. Reduced production from existing uranium mines has also been a contributing factor with some large producers cutting back and/or unable to reach previously planned production levels. In 2025, the mid-case gap between production and requirements is projected to be more than 58 million pounds of U3O8, and by 2034 accumulates to a total above 355 million pounds of U3O8 (UxC 2024 Q3 Uranium Market Outlook). For context, the U.S. utilities purchased 51.6 million pounds of U3O8 in 2023 (U.S. Energy Information Administration, June 6, 2024 - Uranium Marketing Annual Report). The current gap is being filled with secondary market sources, including finite inventory that has been declining and is projected to decline further in coming years. Secondary supply is also likely to be further reduced with western enrichers reversing operations from underfeeding to overfeeding that requires more uranium to increase the production of enrichment services. As secondary supplies continue to diminish, and as existing mines deplete resources, new production will be needed to meet existing and future utility demand. The timeline for new mining projects can be 10 years or longer and will require prices high enough to stimulate new mining investments.
Since 2022, uranium supply has become more complicated due to Russia's invasion of Ukraine with its State Atomic Energy Corporation, Rosatom, being a significant supplier of nuclear fuel around the globe. Economic sanctions, transportation restrictions and U.S. legislation banning the importation of Russian nuclear fuel is causing a fundamental change to the nuclear fuel markets. The situation has been compounded with a November 15, 2024 announcement from the Russian government stating they have placed “temporary restrictions on the export of enriched uranium to the United States". Additionally, the 2023 coup in Niger, and the new government’s demand for the U.S. and France to vacate the country, as well as the revocation of Canadian and French companies mining rights, operating permits and export capabilities, has underscored jurisdictional risk. Niger is the world's seventh largest producer and accounted for about 5% of global uranium production and about 14% of European Union supply in 2023 (Euratom Supply Agency, World Nuclear Association - Uranium in Niger July 23, 2024, World Nuclear News). As a result of the instability and assurance of supply risks, U.S. and European utilities are shifting more focus to production from areas of low geopolitical risk.
On the demand side of the equation, the global nuclear energy industry continues robust growth, with 69 new reactors connected to the grid in 2014 through October of 2024, and with another 66 reactors under construction. Thus far in 2024, four new reactors have been connected to the grid and two reactors have been permanently shut down (International Atomic Energy Association Power Reactor Information System - November 14, 2024). Total nuclear generating capacity for the world’s 439 operable reactors as of November 4, 2024, stands at 396 GWe (World Nuclear Association). At the COP29 United Nations Climate Change Conference, 6 more countries joined the pledge to triple their nuclear capacity by 2050, bringing the total to 31 countries, further supporting additional growth for the nuclear industry and uranium demand.
In the U.S., H.R. 1042, The Prohibiting Russian Uranium Imports Act, was signed into law and went into effect on August 11, 2024 and extends through 2040. The legislation bans Russian uranium imports but allows a U.S. DOE waiver process through 2027 in the event no alternative viable source of low-enriched uranium (“LEU”) is available to: (i) sustain the continued operation of a nuclear reactor or a U.S. nuclear energy company; or (ii) importation of Russian LEU is determined to be in the national interest. However, the waiver process will be moot if Russia follows through on their recent announcement to suspend exports of enriched uranium to the U.S. In other U.S. legislation, The Nuclear Fuel Security Act (“NFSA”) was enacted as part of the National Defense Authorization Act in December of 2023 and was designed to help rebuild the domestic nuclear fuel cycle, including uranium production, conversion and enrichment. The passage of H.R. 1042 unlocks $3.4 billion in funding under the NFSA and will be used by the DOE to acquire LEU and High Assay Low Enriched Uranium (“HALEU”) for advanced reactors. Under this program DOE will acquire LEU and HALEU with priority given to domestic sources of produced uranium, conversion and enrichment. In combination, the passage of these bills will help rebuild and restore a robust domestic fuel cycle in the U.S.
Additional upside market pressure is also occurring as utilities continue their return to a longer-term contracting cycle to replace expiring contracts. Cumulative uncommitted demand through 2034 is more than 865 million pounds of U3O8 (UxC Uranium Market Overview Q3 2024). This utility demand, along with that from financial entities, government programs and various producers, as well as the increasing interest in nuclear energy for data centers, are adding to the strong fundamentals supporting the uranium market.
Seasonality
The timing of our uranium concentrate sales is dependent upon factors such as extraction results from our mining activities, cash requirements, contractual requirements and perception of the uranium market. As a result, our sales are neither tied to nor dependent upon any particular season. In addition, our ability to extract and process uranium does not change on a seasonal basis. Over the past ten years uranium prices have tended to decline during the calendar third quarter before rebounding during the fourth quarter, but there does not appear to be a strong correlation.
Results of Operations
For the three months ended October 31, 2024, we recorded revenue of $17.09 million and realized gross profit of $6.25 million, which were all related to sales of purchased uranium inventory. For the three months ended October 31, 2023, we recorded revenue of $0.11 million and realized gross profit of $0.02 million, which were all generated from toll processing services.
For the three months ended October 31, 2024, we recorded a net loss of $20.16 million ($0.05 per share) and loss from operations of $13.20 million. During the three months ended October 31, 2023, we recorded net income of $3.32 million ($0.01 per share) and loss from operations of $11.39 million.
While we have commenced uranium extraction at Christensen Ranch in August 2024, we are still ramping up our mining activities during the three months ended October 31, 2024. We expect the ramp-up phase will continue while new production areas are being constructed and completing in early 2025. The rest of our uranium projects are expected to remain in a state of operational readiness and the relevant expenditures, which are directly related to regulatory/mine permit compliance, lease maintenance obligations and maintaining a necessary labor force, are being charged to our consolidated statement of operations.
As of October 31, 2024, we have 700,000 pounds of uranium inventory purchase commitments outstanding at a volume weighted average price of approximately $38.81 per pound. Various deliveries are scheduled to occur from Fiscal 2025 to Fiscal 2026.
As of October 31, 2024, the carrying value of our inventories was $66.07 million (July 31, 2024: $75.83 million, of which purchased uranium concentrate inventories was $64.63 million (July 31, 2024: $75.44 million).
Sales and Service Revenue
The table below provides a breakdown of our sales and service revenue and cost of sales and services:
| Three Months Ended October 31, |
||||||||
| 2024 |
2023 |
|||||||
| Sales of purchased uranium inventory |
$ | 17,087 | $ | - | ||||
| Revenue from toll processing services |
- | 108 | ||||||
| Total sales and service revenue |
$ | 17,087 | $ | 108 | ||||
| Cost of purchased uranium inventory |
$ | (10,836 | ) | $ | - | |||
| Cost of toll processing services |
- | (90 | ) | |||||
| Total cost of sales and services |
$ | (10,836 | ) | $ | (90 | ) | ||
Operating Costs
Mineral Property Expenditures
Mineral property expenditures primarily consisted of costs relating to permitting, property maintenance, exploration and pre-extraction activities and other non-extraction related activities on our mineral projects.
The following table provides the nature of mineral property expenditures for the periods indicated:
| Three Months Ended October 31, |
||||||||
| 2024 |
2023 |
|||||||
| Permitting and compliance |
$ | 290 | $ | 883 | ||||
| Property maintenance |
1,249 | 985 | ||||||
| Exploration |
4,917 | 2,402 | ||||||
| Development |
4,682 | 526 | ||||||
| Extraction readiness |
2,376 | 890 | ||||||
| Total |
$ | 13,514 | $ | 5,686 | ||||
During the three months ended October 31, 2024, exploration expenditures, such as drilling and preliminary economic assessments, were primarily spent on the following projects:
| ● |
Burke Hollow Project: $1.30 million (October 31, 2023: $1.29 million); and |
| ● |
Roughrider Project: $2.89 million (October 31, 2023: $0.03 million). |
During the three months ended October 31, 2024, development expenditures were primarily spent on the following projects:
| ● |
Burke Hollow Project: $1.84 million (October 31, 2023: $nil); |
| ● |
Christensen Ranch Mine: $1.81 million (October 31, 2023: $0.01 million); and |
| ● |
Roughrider Project: $0.52 million (October 31, 2023: $0.50 million). |
During the three months ended October 31, 2024, extraction readiness expenditures were primarily spent on the following projects:
| ● |
Christensen Ranch Mine: $1.60 million (October 31, 2023: $0.44 million); |
| ● |
Irigaray Plant: $0.23 million (October 31, 2023: $0.05 million); and |
| ● |
Palangana Mine: $0.23 million (October 31, 2023: $0.27 million). |
General and Administrative
General and Administrative expenses were comprised of the following:
| Three Months Ended October 31, |
||||||||
| 2024 |
2023 |
|||||||
| Salaries and management fees |
$ | 1,782 | $ | 1,197 | ||||
| Office, investor-communication, insurance and travel |
1,462 | 1,306 | ||||||
| Foreign exchange gain |
(395 | ) | (48 | ) | ||||
| Professional fees |
672 | 1,173 | ||||||
| Sub-total |
3,521 | 3,628 | ||||||
| Stock-based compensation |
1,821 | 1,572 | ||||||
| Total general and administrative expenses |
$ | 5,342 | $ | 5,200 | ||||
| ● |
for the three months ended October 31, 2024, salaries, wages and management fees increased compared to the three months ended October 31, 2023, which was primarily the result of an increase in personnel and corporate-wide salary increases to adjust for inflation; and |
| ● |
for the three months ended October 31, 2024, professional fees decreased compared to the three months ended October 31, 2023, which was primarily the result of a non-recurring advisory fee of $0.50 million incurred during the three months ended October 31, 2023. |
Income (Loss) from Equity-Accounted Investments
Income (loss) from equity-accounted investments was comprised of the following:
| Three Months Ended October 31, |
||||||||
| 2024 |
2023 |
|||||||
| Share of income (loss) |
$ | (481 | ) | $ | 1,038 | |||
| Gain on dilution of ownership interest |
5 | 421 | ||||||
| Total |
$ | (476 | ) | $ | 1,459 | |||
During the three months ended October 31, 2024 and 2023, we recorded a gain on dilution of ownership interest in URC as a result of URC issuing more shares from its equity financing and exercises of warrants and/or stock options. As at October 31, 2024, we had a 14.4% equity interest in URC compared to a 14.8% equity interest as at July 31, 2024.
During the three months ended October 31, 2024, we recorded a share of URC’s loss of $0.06 million (three months ended October 31, 2023: income of $1.32 million) and a share of JCU’s loss of $0.42 million (three months ended October 31, 2023: $0.28 million).
Fair Value Gain (Loss) on Equity Securities
As at October 31, 2024, our investments in certain equity securities were revalued using the market values at period end, which resulted in a fair value loss of $10.35 million on revaluation of equity securities for the three months ended October 31, 2024 (three months ended October 31, 2023: gain of $17.31 million).
Gain (Loss) on Revaluation of Derivative Liabilities
In connection with the UEX Acquisition, we issued Replacement Warrants, which are accounted for as derivative liabilities as the exercise prices of the UEX warrants were denominated in Canadian dollars which differs from the functional currency of the Company. As at October 31, 2024, the Replacement Warrants that had not been exercised expired. A gain of $1.71 million on revaluation of derivative liabilities was recorded for the three months ended October 31, 2024 due to the decrease in time value of the Replacement Warrants as they expired in the quarter. During the three months ended October 31, 2023, we recorded a loss on revaluation of derivative liabilities of $6.90 million primarily due to changes in our share price.
Interest income (expenses)
During the three months ended October 31, 2024, interest income totaled $1.12 million, compared to $0.21 million for the three months ended October 31, 2023. The interest earned resulted from the reinvestment of cash proceeds received from our ATM Offering and the sale of equity securities in short-term deposits.
Summary of Quarterly Results
| For the Quarters Ended |
||||||||||||||||
| October 31, 2024 |
July 31, 2024 |
April 30, 2024 |
January 31, 2024 |
|||||||||||||
| Sales and service revenue |
$ | 17,087 | $ | - | $ | - | $ | 116 | ||||||||
| Gross profit |
6,251 | - | - | 19 | ||||||||||||
| Net income (loss) |
(20,158 | ) | (15,115 | ) | (19,677 | ) | 2,250 | |||||||||
| Total comprehensive income (loss) |
(21,886 | ) | (16,169 | ) | (25,527 | ) | 9,982 | |||||||||
| Basic and diluted income (loss) per share |
(0.05 | ) | (0.04 | ) | (0.05 | ) | 0.01 | |||||||||
| Total assets |
917,798 | 889,828 | 878,268 | 878,878 | ||||||||||||
| For the Quarters Ended |
||||||||||||||||
| October 31, 2023 |
July 31, 2023 |
April 30, 2023 |
January 31, 2023 |
|||||||||||||
| Sales and service revenue |
$ | 108 | $ | 38,949 | $ | 20,217 | $ | 47,931 | ||||||||
| Gross profit |
18 | 15,023 | 6,219 | 14,570 | ||||||||||||
| Net income (loss) |
3,321 | 517 | (10,960 | ) | 10,892 | |||||||||||
| Total comprehensive income (loss) |
(7,728 | ) | 6,835 | (14,549 | ) | 15,509 | ||||||||||
| Basic and diluted income (loss) per share |
0.01 | - | (0.03 | ) | 0.03 | |||||||||||
| Total assets |
798,129 | 737,589 | 722,148 | 733,315 | ||||||||||||
Liquidity and Capital Resources
| October 31, 2024 |
July 31, 2024 |
|||||||
| Cash and cash equivalents |
$ | 190,596 | $ | 87,533 | ||||
| Current assets |
261,197 | 235,244 | ||||||
| Current liabilities |
12,703 | 29,222 | ||||||
| Working capital (Current assets less Current liabilities) |
248,494 | 206,022 | ||||||
During the three months ended October 31, 2024, we received net proceeds of $64.65 million (three months ended October 31, 2023: $56.53 million) from our ATM Offering and from exercises of stock options and share purchase warrants.
Subsequent to October 31, 2024, we received additional net proceeds of $31.04 million under our ATM Offering.
We have a history of operating losses resulting in an accumulated deficit balance since inception. We had an accumulated deficit balance of $339.06 million as at October 31, 2024. Furthermore, we may not achieve and maintain profitability or develop positive cash flow from our operations in the near term.
Historically, we have been reliant primarily on equity financings from the sale of our common stock and on debt financing in order to fund our operations. We have yet to achieve consistent profitability or develop consistent positive cash flow from operations. Currently, we also rely on cash flows generated from the sales of our purchased uranium concentrates to fund our operations. Our reliance on equity is expected to continue for the foreseeable future, and their availability whenever such additional financing is required will be dependent on many factors beyond our control and including, but not limited to, the market price of uranium, the continuing public support of nuclear power as a viable source of electricity generation, the volatility in the global financial markets affecting our stock price and the status of the worldwide economy, any one of which may cause significant challenges in our ability to access additional financing, including access to the equity and credit markets. We may also be required to seek other forms of financing, such as asset divestitures or joint venture arrangements, to continue advancing our uranium projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project. However, there is no assurance that we will be successful in securing any form of additional financing when required and on terms favorable to us.
Our operations are capital intensive and future capital expenditures are expected to be substantial. We will require significant additional financing to fund our operations, including continuing with our exploration, pre-extraction and extraction activities and acquiring additional uranium projects. In the absence of such additional financing, we would not be able to fund our operations, including continuing with our exploration, pre-extraction and extraction activities, which may result in delays, curtailment or abandonment of any one or all of our uranium projects.
We hold mineral rights in the States of Arizona, New Mexico, Texas and Wyoming, in Canada and in the Republic of Paraguay, with annual land-related payments totaling $5.93 million to maintain these rights in good standing.
Our anticipated operations, including exploration, pre-extraction and extraction activities, however, will be dependent on and may change as a result of our financial position, the market price of uranium and other considerations, and such changes may include accelerating the pace or broadening the scope of reducing our operations. Our ability to secure adequate funding for these activities will be impacted by our operating performance, other uses of cash, the market price of uranium, the market price of our common stock and other factors which may be beyond our control. Specific examples of such factors include, but are not limited to:
| ● |
if the market price of uranium weakens; |
| ● |
if the market price of our common stock weakens; and |
| ● |
if a nuclear incident, such as the events that occurred in Japan in March 2011, were to occur, continuing public support of nuclear power as a viable source of electrical generation may be adversely affected, which may result in significant and adverse effects on both the nuclear and uranium industries. |
We believe our existing cash resources and net proceeds of $31.04 million received from the issuance of common stock under the ATM Offering subsequent to October 31, 2024, and if necessary, cash generated from the sale of the Company’s liquid assets, will provide sufficient funds to carry out our planned operations for 12 months from the date that this Quarterly Report is issued. Our continuation as a going concern for a period beyond those 12 months will be dependent upon our ability to generate cash flow from the sales of our uranium inventories under our Physical Uranium Program and to obtain adequate additional financing, as our operations are capital intensive and future capital expenditures are expected to be substantial.
Our long-term success, including the recoverability of the carrying values of our assets and our ability to acquire additional uranium projects and continue with exploration, pre-extraction, extraction and mining activities on our existing uranium projects, will depend ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations by establishing ore bodies that contain commercially recoverable uranium and to develop these into profitable mining activities.
Equity Financings
On November 16, 2022, we filed a Form S-3 automatic shelf registration statement under the Securities Act, which became effective upon filing, providing for the public offer and sale of certain securities of the Company from time to time, at our discretion, of an undetermined dollar value of common stock, debt securities, warrants to purchase common stock or debt securities, subscription receipts for and units which include common stock, debt securities, warrants or any combination thereof (the 2022 Shelf), which included an at-the-market offering agreement prospectus (the ATM Offering) covering the offering, issuance and sale of up to a maximum offering of $300 million under the 2022 Shelf.
On November 16, 2022, we also entered into an at-the-market offering agreement (the ATM Offering Agreement) with H.C. Wainwright & Co., LLC and certain co-managers (collectively, the ATM Manager) as set forth in the ATM Offering Agreement under which we may, from time to time, sell shares of our common stock having an aggregate offering price of up to $300 million through the ATM Managers selected by us.
During the three months ended October 31, 2024, we issued 7,595,626 of the Company’s common stock under the ATM Offering for gross cash proceeds of $62.64 million. The total issuance costs were $1.41 million, all of which were related to compensation paid to the ATM Managers.
Subsequent to October 31, 2024, we issued 3,920,749 of the Company’s common stock under the ATM Offering for gross cash proceeds of $31.76 million. The total issuance costs were $0.71 million, all of which were related to compensation paid to the ATM Managers.
Operating Activities
During the three months ended October 31, 2024, net cash used in operating activities totaled to $11.45 million, which was primarily related to mineral property expenditures incurred in this quarter of $13.51 million, general and administrative expenses of $5.34 million and change in operating assets and liabilities, partially offset by a gross profit from sale of purchased uranium inventory of $6.25 million. During the three months ended October 31, 2023, net cash used in operating activities was $45.73 million, of which $36.73 million was for the change in uranium concentrate inventory.
Financing Activities
During the three months ended October 31, 2024, net cash provided by financing activities totaled $62.01 million, primarily from the net proceeds of $64.65 million from our ATM Offering, as well as the exercises of stock options and share purchase warrants, partially offset by payments of $2.64 million for tax withholding amounts related to RSU and PRSU shares. During the three months ended October 31, 2023, net cash provided by financing activities totaled $55.87 million, primarily from the net proceeds of $56.53 million from our ATM Offering and the exercises of stock options, partially offset by payments of $0.67 million for tax withholding amounts related to RSU and PRSU shares.
Investing Activities
During the three months ended October 31, 2024, net cash provided by investing activities totaled $52.51 million, comprised of proceeds from the sale of equity securities of $54.37 million, cash used for the capital contribution to JCU of $0.54 million and investment in mineral properties and the purchase of equipment for a total of $1.33 million. During the three months ended October 31, 2023, net cash used in investing activities totaled $5.48 million, comprised of cash used for the capital contribution to JCU of $0.65 million, investment in equity securities of $0.81 million, additional investment in URC of $5.68 million, and cash from the sale of equity securities of $3.43 million.
Stock Options and Warrants
As of October 31, 2024, we had in-the-money stock options outstanding representing 4,932,317 shares at a weighted-average exercise price of $2.66 per share, and in-the-money share purchase warrants outstanding representing 159,091 shares at a weighted-average exercise price of $4.13 per share. As of October 31, 2024, outstanding in-the-money stock options and warrants represented a total 5,091,408 shares issuable for gross proceeds of approximately $13.8 million should these stock options and warrants be exercised in full on a cash basis. The exercise of stock options and warrants is at the discretion of their respective holders and, accordingly, there is no assurance that any of the stock options or warrants will be exercised in the future.
Transactions with Related Parties
Related party transactions are based on the amounts agreed to by the parties. During the three months ended October 31, 2024 and 2023, the Company did not enter into any material contracts or undertake any significant commitment or obligation with any related parties.
Material Contractual Obligations and Commitments
As at October 31, 2024, significant payment obligations of the Company over the next five years and beyond are as follows:
| Payment Due by Period |
||||||||||||||||||||
| Less Than |
1-3 |
3-5 |
More Than |
|||||||||||||||||
| Contractual Obligations |
Total |
1 Year |
Years |
Years |
5 Years |
|||||||||||||||
| Asset Retirement Obligations |
$ | 29,030 | $ | 2,953 | $ | 4,998 | $ | 4,970 | $ | 16,109 | ||||||||||
| Operating Lease Obligations |
2,447 | 425 | 709 | 465 | 848 | |||||||||||||||
| Uranium Inventory Purchase Obligations |
27,164 | 16,050 | 11,114 | - | - | |||||||||||||||
| Total |
$ | 58,641 | $ | 19,428 | $ | 16,821 | $ | 5,435 | $ | 16,957 | ||||||||||
As of October 31, 2024, we were committed to sell 600,000 pounds of uranium inventory in the amount of $49.75 million for delivery between November 2024 to January 2025.
As of October 31, 2024, we were renting or leasing office premises in the States of Texas, Arizona and Wyoming, British Columbia and Saskatchewan, Canada, and Paraguay, for total monthly payments of $0.04 million. Office lease agreements for the U.S. and Canada expire between July 2026 and November 2029.
Off-Balance Sheet Arrangements
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Critical Accounting Policies
For a complete summary of all of our significant accounting policies refer to Note 2: Summary of Significant Accounting Policies of the Notes to the consolidated financial statements as presented under Item 8, Financial Statements and Supplementary Data, in our Annual Report on Form 10-K for Fiscal 2024.
Refer to “Critical Accounting Policies” under Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations, in our Annual Report on Form 10-K for Fiscal 2024.
Subsequent Events
Subsequent to October 31, 2024,
a) we received additional net cash proceeds of $31.04 million under our ATM Offering;
b) we sold 500,000 pounds of uranium inventory for $41.40 million at a weighted average price of $82.80 per pound; and
c) we entered into contracts to purchase 300,000 pounds of uranium inventory in the amount of $23.43 million at a weighted average price of $78.08 per pound with delivery in December 2024.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Refer to Item 7A., Quantitative and Qualitative Disclosures About Market Risk, in our Annual Report on Form 10-K for Fiscal 2024.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
As of the end of the period covered by this Quarterly Report, with the participation of the Principal Executive Officer and the Principal Financial Officer, the Company evaluated the effectiveness of its disclosure controls and procedures, as such term is defined in Rule 13a-15(e) and Rule 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”). Based on this evaluation, the Principal Executive Officer and the Principal Financial Officer have concluded that the Company’s disclosure controls and procedures are effective to ensure that information the Company is required to disclose in reports that are filed or submitted under the Exchange Act: (1) is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms; and (2) is accumulated and communicated to Company management, including the Principal Executive Officer and the Principal Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.
It should be noted that any system of controls is based in part upon certain assumptions designed to obtain reasonable (not absolute) assurance as to its effectiveness, and there can be no assurance that any design will succeed in achieving its stated goals.
Changes in Internal Controls
There have been no changes in our internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that occurred during our quarter ended October 31, 2024, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
As of the date of this Quarterly Report, other than as disclosed below, there are no material pending legal proceedings, other than ordinary routine litigation incidental to our business, to which our Company or any of our subsidiaries is a party or of which any of their property is subject, and no director, officer, affiliate or record or beneficial owner of more than 5% of our common stock, or any associate or any such director, officer, affiliate or security holder, is: (i) a party adverse to us or any of our subsidiaries in any legal proceeding; or (ii) has an adverse interest to us or any of our subsidiaries in any legal proceeding. Other than as disclosed below, management is not aware of any other material legal proceedings pending or that have been threatened against us or our properties.
On or about March 9, 2011, the TCEQ granted our Company’s applications for a Class III Injection Well Permit, Permit Area Authorization and Aquifer Exemption (“AE”) for our Goliad Project. On or about December 4, 2012, the EPA concurred with the TCEQ issuance of the AE permit. With the receipt of this concurrence, the final authorization required for uranium extraction, our Goliad Project achieved fully-permitted status. On or about May 24, 2011, a group of petitioners, inclusive of Goliad County, appealed the TCEQ action to the 250th District Court in Travis County, Texas. A motion filed by our Company to intervene in this matter was granted. The petitioners’ appeal lay dormant until on or about June 14, 2013, when the petitioners filed their initial brief in support of their position. On or about January 18, 2013, a different group of petitioners, exclusive of Goliad County, filed a petition for review with the Court of Appeals for the Fifth Circuit to appeal the EPA’s decision. On or about March 5, 2013, a motion filed by our Company to intervene in this matter was granted. The parties attempted to resolve both appeals, to facilitate discussions and avoid further legal costs. The parties jointly agreed, through mediation initially conducted through the Fifth Circuit on or about August 8, 2013, to abate the proceedings in the State District Court. On or about August 21, 2013, the State District Court agreed to abate the proceedings. The EPA subsequently filed a motion to remand without vacatur with the Fifth Circuit wherein the EPA’s stated purpose was to elicit additional public input and further explain its rationale for the approval. In requesting the remand without vacatur, which would allow the AE to remain in place during the review period, the EPA denied the existence of legal error and stated that it was unaware of any additional information that would merit reversal of the AE. We and the TCEQ filed a request to the Fifth Circuit for the motion to remand without vacatur, and if granted, to be limited to a 60-day review period. On December 9, 2013, by way of a procedural order from a three-judge panel of the Fifth Circuit, the Court granted the remand without vacatur and initially limited the review period to 60 days. In March of 2014, at the EPA’s request, the Fifth Circuit extended the EPA’s time period for review and additionally, during that same period, our Company conducted a joint groundwater survey of the site, the result of which reaffirmed our previously filed groundwater direction studies. On or about June 17, 2014, the EPA reaffirmed its earlier decision to uphold the granting of our existing AE, with the exception of a northwestern portion containing less than 10% of the uranium resource which was withdrawn, but not denied, from the AE area until additional information is provided in the normal course of mine development. On or about September 9, 2014, the petitioners filed a status report with the State District Court which included a request to remove the stay agreed to in August 2013 and to set a briefing schedule. In that Status Report the petitioners also stated that they had decided not to pursue their appeal at the Fifth Circuit.
A Class I renewal application for the Goliad Project disposal wells was received by the TCEQ on January 23, 2020 and declared administratively complete on April 27, 2020. The application went through technical review and, on September 13, 2022, the executive director of the TCEQ made a decision that the permit application met the requirements of the law. On or around October 4, 2022, petitioners in Goliad County requested a hearing and reconsideration on the renewal permits. The TCEQ considered the requests on December 14, 2022, during its open meeting, and denied the petitioner’s request for reconsideration but granted its request for hearing. The TCEQ referred the application to the State Office of Administrative Hearing (“SOAH”) to discuss three issues: (i) whether the permit application adequately characterizes the geology and identified and assessed faults in the vicinity of the proposed injections wells; (ii) whether the draft permit provides for adequate monitoring of migration of injected fluids in the vicinity of the proposed injection wells: and (iii) whether the location and design of the injection wells and pre-injection facilities are adequate. Closing statements were submitted by all parties to the SOAH Administrative Law Judges (“ALJs”) on February 5, 2024. On April 10, 2024, the ALJs made a recommendation to remand the matter to the executive director of the TCEQ for further examination, stating the Company failed to meet its burden of proof. The executive director, via Executive Director’s Exceptions to the Proposal for Decision (“PFD”), respectfully disagreed with the recommendation presented in the PFD to remand the application to the executive director for further consideration. The executive director commented that the ALJ’s PFD improperly broaden the scope of the refereed contested case hearing; misapplied the application requirements in commission rule for providing geoscientific information; mischaracterized the position of the executive director; and prematurely imposed monitoring or corrective action requirements before the subject injection wells were drilled, constructed and tested. The TCEQ reissued the permits on August 28, 2024. A Motion for Rehearing was filed on November 21, 2024. No other information is available on the potential proceeding at this time. We continue to believe that the pending appeal is without merit and the Goliad Project remains fully permitted for uranium extraction.
The Company has had communications and filings with the MOPC, the mining regulator in Paraguay, whereby the MOPC is taking the position that certain concessions forming part of the Company’s Yuty, Alto Parana and Colonel Oviedo Projects are not eligible for extension as to exploration or continuation to exploitation in their current stages. While we remain fully committed to our development path forward in Paraguay, we have filed certain applications and appeals in Paraguay to reverse the MOPC’s position in order to protect the Company’s continuing rights in those concessions.
In addition to the information contained in our Annual Report on Form 10-K for Fiscal 2024, and this Quarterly Report on Form 10-Q, we have identified the following material risks and uncertainties which reflect our outlook and conditions known to us as of the date of this Quarterly Report. These material risks and uncertainties should be carefully reviewed by our stockholders and any potential investors in evaluating the Company, our business and the market value of our common stock. Furthermore, any one of these material risks and uncertainties has the potential to cause actual results, performance, achievements or events to be materially different from any future results, performance, achievements or events implied, suggested or expressed by any forward-looking statements made by us or by persons acting on our behalf. Refer to “Cautionary Note Regarding Forward-looking Statements” as disclosed in our Annual Report on Form 10-K for Fiscal 2024.
There is no assurance that we will be successful in preventing the material adverse effects that any one or more of the following material risks and uncertainties may cause on our business, prospects, financial condition and operating results, which may result in a significant decrease in the market price of our common stock. Furthermore, there is no assurance that these material risks and uncertainties represent a complete list of the material risks and uncertainties facing us. There may be additional risks and uncertainties of a material nature that, as of the date of this Quarterly Report, we are unaware of or that we consider immaterial that may become material in the future, any one or more of which may result in a material adverse effect on us. You could lose all or a significant portion of your investment due to any one of these material risks and uncertainties.
Risks Related to Our Company and Business
Evaluating our future performance may be difficult since we have a limited financial and operating history, with significant negative operating cash flow and an accumulated deficit to date. Our long-term success will depend ultimately on our ability to achieve and maintain profitability and to develop positive cash flow from our mining activities.
As more fully described under Item 1, Business, in our Annual Report on Form 10-K for Fiscal 2024, we were incorporated under the laws of the State of Nevada on May 16, 2003 and, since 2004, we have been primarily engaged in uranium mining and related activities, including exploration, pre-extraction, extraction and processing, on projects located in the United States, Canada and the Republic of Paraguay. In November 2010, we commenced uranium extraction for the first time at our Palangana Mine utilizing ISR methods and processed those materials at our Hobson Processing Facility into drums of U3O8. We also hold uranium projects in various stages of exploration and pre-extraction in the States of Arizona, Colorado, New Mexico, Texas and Wyoming, in Canada and the Republic of Paraguay. In August 2024, we restarted uranium extraction at our fully permitted, and past producing, Christensen Ranch Mine ISR operation in Wyoming. We expect the ramp-up phase will continue while new production areas are being constructed and completing in early 2025.
As more fully described under “Liquidity and Capital Resources” of Item 2, Management’s Discussion and Analysis of Financial Condition and Result of Operations, herein, we have a history of significant negative cash flow and net losses, with an accumulated deficit balance of $339.06 million as of October 31, 2024. Historically, we have been reliant primarily on equity financings from the sale of our common stock and on debt financing in order to fund our operations. Although we generated revenues from sales of U3O8 we extracted during Fiscal 2015, Fiscal 2013 and Fiscal 2012 of $3.08 million, $9.03 million and $13.76 million, respectively, and generated revenues from sales of purchased uranium inventory totaling $17.09 million during the three months ended October 31, 2024 , we have yet to achieve consistent profitability or develop consistent positive cash flow from our operations, and we do not expect to achieve consistent profitability or develop consistent positive cash flow from operations in the near term. As a result of our limited financial and operating history, including our significant negative cash flow from operations and net losses to date, it may be difficult to evaluate our future performance.
As at October 31, 2024, we had working capital (current assets less current liabilities) of $248.49 million including cash and cash equivalents of $190.60 million and purchased uranium inventory holdings of $64.63 million. Subsequent to October 31, 2024, we received additional net cash proceeds of $31.04 million under our ATM Offering. We believe that our existing cash resources and, if necessary, cash generated from the sale of the Company’s liquid assets, will provide sufficient funds to carry out our planned operations for 12 months from the date of this Quarterly Report. Our continuation as a going concern for a period beyond those 12 months will be dependent upon our ability to obtain adequate additional financing, as our operations are capital intensive and future capital expenditures are expected to be substantial. Our continued operations, including the recoverability of the carrying values of our assets, are dependent ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations.
Our reliance on equity and debt financings is expected to continue for the foreseeable future, and their availability whenever such additional financing is required will be dependent on many factors beyond our control including, but not limited to, the market price of uranium, the continuing public support of nuclear power as a viable source of electrical generation, the volatility in the global financial markets affecting our stock price and the status of the worldwide economy, any one of which may cause significant challenges in our ability to access additional financing, including access to the equity and credit markets. We may also be required to seek other forms of financing, such as asset divestitures or joint venture arrangements, to continue advancing our projects which would depend entirely on finding a suitable third party willing to enter into such an arrangement, typically involving an assignment of a percentage interest in the mineral project.
Our long-term success, including the recoverability of the carrying values of our assets and our ability to acquire additional uranium projects and continue with exploration and pre-extraction activities and mining activities on our existing uranium projects, will depend ultimately on our ability to achieve and maintain profitability and positive cash flow from our operations by establishing ore bodies that contain commercially recoverable uranium and to develop these into profitable mining activities. The economic viability of our mining activities, including the expected duration and profitability of our ISR Mines and of any future satellite ISR mines, such as our Burke Hollow and Goliad Projects located within the South Texas Uranium Belt, our Christensen Ranch Mine and Reno Creek Project located in the Powder River Basin, Wyoming, and our projects in Canada and in the Republic of Paraguay, have many risks and uncertainties. These include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected capital costs to construct a mine and/or processing plant; (iv) significantly higher than expected extraction costs; (v) significantly lower than expected mineral extraction; (vi) significant delays, reductions or stoppages of uranium extraction activities; and (vii) the introduction of significantly more stringent regulatory laws and regulations. Our mining activities may change as a result of any one or more of these risks and uncertainties and there is no assurance that any ore body that we extract mineralized materials from will result in achieving and maintaining profitability and developing positive cash flow.
Our operations are capital intensive and we will require significant additional financing to acquire additional mineral projects and continue with our exploration, pre-extraction and extraction activities on our existing projects.
Our operations are capital intensive and future capital expenditures are expected to be substantial. We will require significant additional financing to fund our operations, including acquiring additional mineral projects and continuing with our exploration, pre-extraction and extraction activities which include assaying, drilling, geological and geochemical analysis and mine construction costs. In the absence of such additional financing we would not be able to fund our operations or continue with our exploration and pre-extraction activities, which may result in delays, curtailment or abandonment of any one or all of our projects.
Our uranium extraction and sales history is limited. Our ability to generate revenue is subject to a number of factors, any one or more of which may adversely affect our financial condition and operating results.
We have a limited history of uranium extraction and generating revenue. In November 2010, we commenced uranium extraction at our Palangana Mine, which has been our sole source of revenues from the sales of produced U3O8 during Fiscal 2015, Fiscal 2013 and Fiscal 2012, with no revenues from sales of produced U3O8 during the three months ended October 31, 2024, or any other fiscal years. In August 2024, we restarted uranium extraction at our fully permitted, and past producing, Christensen Ranch Mine ISR operation in Wyoming. We expect the ramp-up phase will continue while new production areas are being constructed and completing in early 2025.
During the three months ended October 31, 2024, we continued to remain in a state of operational readiness at our ISR Mines. This strategy has included the deferral of major pre-extraction expenditures and remaining in a state of operational readiness in anticipation of a recovery in uranium prices. Our ability to generate revenue from our Palangana and recently acquired Christensen Ranch Mines is subject to a number of factors which include, but are not limited to: (i) a significant, prolonged decrease in the market price of uranium; (ii) difficulty in marketing and/or selling uranium concentrates; (iii) significantly higher than expected extraction costs; (iv) significantly lower than expected uranium extraction; (v) significant delays, reductions or stoppages of uranium extraction activities; and (vi) the introduction of significantly more stringent regulatory laws and regulations. Furthermore, continued mining activities at our ISR Mines will eventually deplete the mines or cause such activities to become uneconomical, and if we are unable to directly acquire or develop existing uranium projects, such as our Moore Ranch, Reno Creek, Burke Hollow and Goliad Projects, into additional uranium mines from which we can commence uranium extraction, it will negatively impact our ability to generate revenues. Any one or more of these occurrences may adversely affect our financial condition and operating results.
Exploration, pre-extraction and extraction programs and mining activities are inherently subject to numerous significant risks and uncertainties, and actual results may differ significantly from expectations or anticipated amounts. Furthermore, exploration programs conducted on our projects may not result in the establishment of ore bodies that contain commercially recoverable uranium.
Exploration, pre-extraction and extraction programs and mining activities are inherently subject to numerous significant risks and uncertainties, with many beyond our control and including, but not limited to: (i) unanticipated ground and water conditions and adverse claims to water rights; (ii) unusual or unexpected geological formations; (iii) metallurgical and other processing problems; (iv) the occurrence of unusual weather or operating conditions and other force majeure events; (v) lower than expected ore grades; (vi) industrial accidents; (vii) delays in the receipt of or failure to receive necessary government permits; (viii) delays in transportation; (ix) availability of contractors and labor; (x) government permit restrictions and regulation restrictions; (xi) unavailability of materials and equipment; and (xii) the failure of equipment or processes to operate in accordance with specifications or expectations. These risks and uncertainties could result in: (i) delays, reductions or stoppages in our mining activities; (ii) increased capital and/or extraction costs; (iii) damage to, or destruction of, our mineral projects, extraction facilities or other properties; (iv) personal injuries; (v) environmental damage; (vi) monetary losses; and (vii) legal claims.
Success in mineral exploration is dependent on many factors including, without limitation, the experience and capabilities of a company’s management, the availability of geological expertise and the availability of sufficient funds to conduct the exploration program. Even if an exploration program is successful and commercially recoverable material is established, it may take a number of years from the initial phases of drilling and identification of the mineralization until extraction is possible, during which time the economic feasibility of extraction may change such that the material ceases to be economically recoverable. Exploration is frequently non-productive due, for example, to poor exploration results or the inability to establish ore bodies that contain commercially recoverable material, in which case the project may be abandoned and written-off. Furthermore, we will not be able to benefit from our exploration efforts and recover the expenditures that we incur on our exploration programs if we do not establish ore bodies that contain commercially recoverable material and develop these projects into profitable mining activities, and there is no assurance that we will be successful in doing so for any of our projects.
Whether an ore body contains commercially recoverable material depends on many factors including, without limitation: (i) the particular attributes, including material changes to those attributes, of the ore body such as size, grade, recovery rates and proximity to infrastructure; (ii) the market price of uranium, which may be volatile; and (iii) government regulations and regulatory requirements including, without limitation, those relating to environmental protection, permitting and land use, taxes, land tenure and transportation.
We have not established proven or probable reserves through the completion of a final or bankable feasibility study for any of our projects, including our ISR Mines. Furthermore, we have no plans to establish proven or probable reserves for any of our uranium projects for which we plan on utilizing ISR mining, such as our ISR Mines. Since we commenced extraction of mineralized materials from our ISR Mines without having established proven or probable reserves, it may result in our mining activities at our ISR Mines, and at any future projects for which proven or probable reserves are not established, being inherently riskier than other mining activities for which proven or probable reserves have been established.
We have established the existence of mineralized materials for certain of our projects, including our ISR Mines. We have not established proven or probable reserves, as defined by the SEC, through the completion of a final or bankable feasibility study for any of our projects, including our ISR Mines. Furthermore, we have no present plans to establish proven or probable reserves for any of our projects for which we plan on utilizing ISR mining. Since we commenced the extraction of mineralized materials at our ISR Mines without having established proven or probable reserves, there may be greater inherent uncertainty as to whether or not any mineralized material can be economically extracted as originally planned and anticipated. Any mineralized materials established or extracted from our ISR Mines should not in any way be associated with having established or produced from proven or probable reserves.
We prepare estimates of future uranium extraction and recovery, and there are no assurances that such estimates will be achieved.
We may from time to time prepare estimates of future uranium extraction and recovery, or increases in uranium extraction and recovery, for particular operations, or relating to our ability to increase uranium extraction and recovery in response to increases in commodity prices, as market conditions warrant or otherwise. No assurance can be given that any such extraction and recovery estimates will be achieved, nor can assurance be given that extraction or recovery increases will be achieved in a cost effective or timely manner. Failure to achieve extraction and recovery estimates or failure to achieve extraction and recovery in a cost effective or timely manner could have an adverse impact on our future cash flows, earnings, results of operations and financial condition. These estimates are based on, among other things, the following factors: the accuracy of mineral resource estimates; the accuracy of assumptions regarding ground conditions and physical characteristics of mineralized materials, such as hardness and presence or absence of particular metallurgical characteristics; the accuracy of estimated rates and costs of extraction, recovery and processing; assumptions as to future commodity prices; assumptions relating to changes in laws, regulations or policies, or lack thereof, that could impact the cost and time required to obtain regulatory approvals, licenses and permits; assumptions relating to obtaining required licenses and permits in a timely manner, including the time required to satisfy environmental analyses, consultations and public input processes; assumptions relating to challenges to or delays in the licensing and permitting process; and assumptions regarding any appeals or lack thereof, or injunctions or lack thereof, relating to any approvals, licenses or permits.
Our actual uranium extraction and recovery may vary from estimates for a variety of reasons, including, among others: actual mineralized material extracted, mined or recovered varying from estimates of grade, tonnage, dilution, metallurgical and other characteristics; short-term operating factors relating to the mineral resources, such as the need for sequential construction or development of mineralized materials or deposits and the processing of new or different mineral grades; risk and hazards associated with extraction, mining and recovery; natural phenomena, such as inclement weather conditions, underground floods, earthquakes, pit wall failures and cave-ins; unexpected labor shortages or strikes; varying conditions in the commodities markets; and delays in obtaining or denial, challenges or appeals of regulatory approvals, licenses and permits or renewals of existing approvals, licenses or permits.
Since we are in the Exploration Stage, pre-production expenditures including those related to pre-extraction activities are expensed as incurred, the effects of which may result in our consolidated financial statements not being directly comparable to the financial statements of companies in the Production Stage.
Despite the fact that we commenced uranium extraction at our ISR Mines, we remain in the Exploration Stage (as defined by the SEC) and will continue to remain in the Exploration Stage until such time as proven or probable reserves have been established, which may never occur. We prepare our consolidated financial statements in accordance with U.S. GAAP under which acquisition costs of mineral rights are initially capitalized as incurred while pre-production expenditures are expensed as incurred until such time as we exit the Exploration Stage. Expenditures relating to exploration activities are expensed as incurred and expenditures relating to pre-extraction activities are expensed as incurred until such time as proven or probable reserves are established for that uranium project, after which subsequent expenditures relating to mine development activities for that particular project are capitalized as incurred.
We have neither established nor have any present plans to establish proven or probable reserves for our uranium projects for which we plan on utilizing ISR mining. Companies in the Production Stage (as defined by the SEC), having established proven and probable reserves and exited the Exploration Stage, typically capitalize expenditures relating to ongoing development activities, with corresponding depletion calculated over proven and probable reserves using the units-of-production method and allocated to inventory and, as that inventory is sold, to cost of goods sold. As we are in the Exploration Stage, it has resulted in us reporting larger losses than if we had been in the Production Stage due to the expensing, instead of capitalization, of expenditures relating to ongoing processing facility and mine pre-extraction activities. Additionally, there would be no corresponding amortization allocated to our future reporting periods since those costs would have been expensed previously, resulting in both lower inventory costs and cost of goods sold and results of operations with higher gross profits and lower losses than if we would have been in the Production Stage. Any capitalized costs, such as acquisition costs of mineral rights, are depleted over the estimated extraction life using the straight-line method. As a result, our consolidated financial statements may not be directly comparable to the financial statements of companies in the Production Stage.
Our mineral resource estimates may not be reliable and are inherently more uncertain than estimates of proven and probable reserves; there is risk and increased uncertainty to commencing and conducting production without established mineral reserves.
Our properties do not contain mineral reserves as defined under S-K 1300. Until mineral reserves or mineral resources are mined and processed, the quantity of mineral resources and grades must be considered as estimates only and may be inaccurate. We have established the existence of uranium resources for certain uranium projects, including at our Palangana Mine, Christensen Ranch Mine, Roughrider Project and Christie Lake Project. We have not established proven or probable reserves, as defined under S-K 1300, through the completion of a feasibility study, for any of our uranium projects, including the Palangana Mine, Christensen Ranch Mine, Roughrider Project and Christie Lake Project. Furthermore, we currently have no plans to establish proven or probable reserves for any of our uranium projects for which we utilize ISR methods, such as the Palangana Mine and Christensen Ranch Mine. As a result, and despite the fact that we have previously produced U3O8 at the Palangana Mine, there is increased uncertainty and risk that may result in economic and technical failure which may adversely impact our future profitability.
There are numerous uncertainties inherent in estimating quantities of mineral resources, including many factors beyond our control, and no assurance can be given that the recovery of mineral resources will be realized. In general, estimates of mineral resources are based upon several factors and assumptions made as of the date on which the estimates were determined, including (i) geological and engineering estimates that have inherent uncertainties and the assumed effects of regulation by governmental agencies; (ii) the judgment of the geologists, engineers and other professionals preparing the estimate; (iii) estimates of future uranium prices and operating costs; (iv) the quality and quantity of available data and the interpretation of that data; and (v) the accuracy of various mandated economic assumptions, all of which may vary considerably from actual results.
All estimates are, to some degree, uncertain; with in situ recovery, this is due in part to limited sampling information collected prior to mining. For these reasons, estimates of the recoverable mineral resources prepared by different professionals or by the same professionals at different times, may vary substantially. As such, there is significant uncertainty in any mineral resource estimate and actual deposits encountered and the economic viability of a deposit may differ materially from our estimates.
Estimated costs of future reclamation obligations may be significantly exceeded by actual costs incurred in the future. Furthermore, only a portion of the financial assurance required for the future reclamation obligations has been funded.
We are responsible for certain remediation and decommissioning activities in the future, primarily for our Hobson and Irigaray Processing Facilities, our ISR Mines and our recently acquired Roughrider Project, and have recorded a liability of $19.88 million on our balance sheet at October 31, 2024, to recognize the present value of the estimated costs of such reclamation obligations. Should the actual costs to fulfill these future reclamation obligations materially exceed these estimated costs, it may have an adverse effect on our financial condition and operating results, including not having the financial resources required to fulfill such obligations when required to do so.
As at October 31, 2024, the total estimated reclamation costs for all of our projects was $29.03 million. We have secured $27.25 million of surety bonds as an alternate source of financial assurance for the estimated costs of the reclamation obligations, of which $7.25 million is funded and held as restricted cash for collateral purposes as required by the surety. We may be required at any time to fund the remaining $21.78 million or any portion thereof for a number of reasons including, but not limited to, the following: (i) the terms of the surety bonds are amended, such as an increase in collateral requirements; (ii) we are in default with the terms of the surety bonds; (iii) the surety bonds are no longer acceptable as an alternate source of financial assurance by the regulatory authorities; or (iv) the surety encounters financial difficulties. Should any one or more of these events occur in the future, we may not have the financial resources to fund the remaining amount or any portion thereof when required to do so.
We cannot provide any assurance that our Physical Uranium Program involving the strategic acquisition of physical uranium will be successful, which may have an adverse effect on our results of operations.
We have used or allocated a large portion of our cash on hand in order to fund the acquisition of drummed uranium under our Physical Uranium Program. This strategy will be subject to a number of risks and there is no assurance that the strategy will be successful. Future deliveries are subject to performance by other parties and there is a possibility of default by those parties, thus depriving us of potential benefits.
Due to the fluctuation of uranium prices, the price of uranium will fluctuate and we will be subject to losses should we ultimately determine to sell the uranium at prices lower than the acquisition cost. The primary risks associated with physical uranium will be the normal risks associated with supply and demand fundamentals affecting price movements.
We may be required to sell a portion or all of the physical uranium accumulated to fund our operations should other forms of financing not be available to meet our capital requirements.
Since there is no public market for uranium, selling the uranium may take extended periods of time and suitable purchasers may be difficult to find, which could have a material adverse effect on our financial condition and may have a material adverse effect on our securities.
There is no public market for the sale of uranium, although there are several trading and brokerage houses that serve the industry with bid and ask data as well as locations and quantities. The uranium futures market on the New York Mercantile Exchange does not provide for physical delivery of uranium, only cash on settlement, and that trading forum does not offer a formal market but rather facilitates the introduction of buyers to sellers.
The pool of potential purchasers and sellers is limited, and each transaction may require the negotiation of specific provisions. Accordingly, a sale may take several weeks or months to complete. If we determine to sell any physical uranium that we have acquired, we may likewise experience difficulties in finding purchasers that are able to accept a material quantity of physical uranium at a price and at a location that is compatible with our interests. The inability to sell on a timely basis in sufficient quantities and at a desired price and location could have a material adverse effect on our securities.
As part of our Physical Uranium Program, we have entered into commitments to purchase U3O8 and may purchase additional quantities. There is no certainty that any future purchases contemplated by us will be completed.
Storage arrangements, including the extension of storage arrangements, along with credit and operational risks of uranium storage facilities, may result in the loss or damage of our physical uranium which may not be covered by insurance or indemnity provisions and could have a material adverse effect on our financial condition.
By holding our uranium inventory at the ConverDyn conversion facility we are exposed to the credit and operational risks of the facility. There is no guarantee that we can fully recover all of our investment in uranium held with the facility in the event of a disruptive event. Failure to recover all uranium holdings could have a material adverse effect on our financial condition. Any loss or damage of the uranium may not be fully covered or absolved by contractual arrangements with ConverDyn or our insurance arrangements, and we may be financially and legally responsible for losses and/or damages not covered by indemnity provisions or insurance. Such responsibility could have a material adverse effect on our financial condition.
We do not insure against all of the risks we face in our operations.
In general, where coverage is available and not prohibitively expensive relative to the perceived risk, we will maintain insurance against such risk, subject to exclusions and limitations. We currently maintain insurance against certain risks, including securities and general commercial liability claims and certain physical assets used in our operations, subject to exclusions and limitations, however, we do not maintain insurance to cover all of the potential risks and hazards associated with our operations. We may be subject to liability for environmental, pollution or other hazards associated with our exploration, pre-extraction and extraction activities, which we may not be insured against, which may exceed the limits of our insurance coverage or which we may elect not to insure against because of high premiums or other reasons. Furthermore, we cannot provide assurance that any insurance coverage we currently have will continue to be available at reasonable premiums or that such insurance will adequately cover any resulting liability.
Acquisitions that we may make from time to time could have an adverse impact on us.
From time to time we examine opportunities to acquire additional mining assets and businesses. Any acquisition that we may choose to complete may be of a significant size, may change the scale of our business and operations and may expose us to new geographic, political, operating, financial and geological risks. Our success in our acquisition activities depends on our ability to identify suitable acquisition candidates, negotiate acceptable terms for any such acquisition and integrate the acquired operations successfully with those of our Company. Any acquisitions would be accompanied by risks which could have a material adverse effect on our business. For example: (i) there may be a significant change in commodity prices after we have committed to complete the transaction and established the purchase price or exchange ratio; (ii) a material ore body may prove to be below expectations; (iii) we may have difficulty integrating and assimilating the operations and personnel of any acquired companies, realizing anticipated synergies and maximizing the financial and strategic position of the combined enterprise and maintaining uniform standards, policies and controls across the organization; (iv) the integration of the acquired business or assets may disrupt our ongoing business and our relationships with employees, customers, suppliers and contractors; and (v) the acquired business or assets may have unknown liabilities which may be significant. In the event that we choose to raise debt capital to finance any such acquisition, our leverage will be increased. If we choose to use equity as consideration for such acquisition, existing shareholders may suffer dilution. Alternatively, we may choose to finance any such acquisition with our existing resources. There can be no assurance that we would be successful in overcoming these risks or any other problems encountered in connection with such acquisitions.
We may not be able to obtain, maintain or amend rights, authorizations, licenses, permits or consents required for our operations.
Our exploration and mining activities are dependent upon the grant of appropriate rights, authorizations, licences, permits and consents, as well as continuation and amendment of these rights, authorizations, licences, permits and consents already granted, which may be granted for a defined period of time, or may not be granted or may be withdrawn or made subject to limitations. There can be no assurance that all necessary rights, authorizations, licences, permits and consents will be granted to us, or that authorizations, licences, permits and consents already granted will not be withdrawn or made subject to limitations.
The marketability of uranium concentrates will be affected by numerous factors beyond our control which may result in our inability to receive an adequate return on our invested capital.
The marketability of uranium concentrates extracted by us will be affected by numerous factors beyond our control. These factors include: (i) macroeconomic factors; (ii) fluctuations in the market price of uranium; (iii) governmental regulations; (iv) land tenure and use; (v) regulations concerning the importing and exporting of uranium; and (vi) environmental protection regulations. The future effects of these factors cannot be accurately predicted, but any one or a combination of these factors may result in our inability to receive an adequate return on our invested capital.
We hold mineral rights in foreign jurisdictions which could be subject to additional risks due to political, taxation, economic and cultural factors.
We hold certain mineral rights located in the Republic of Paraguay through Piedra Rica Mining S.A., Transandes Paraguay S.A., Trier S.A. and Metalicos Y No Metalicos Paraguay S.R.L., which are incorporated in Paraguay. Operations in foreign jurisdictions outside of the United States and Canada, especially in developing countries, may be subject to additional risks as they may have different political, regulatory, taxation, economic and cultural environments that may adversely affect the value or continued viability of our rights. These additional risks include, but are not limited to: (i) changes in governments or senior government officials; (ii) changes to existing laws or policies on foreign investments, environmental protection, mining and ownership of mineral interests; (iii) renegotiation, cancellation, expropriation and nationalization of existing permits or contracts; (iv) foreign currency controls and fluctuations; and (v) civil disturbances, terrorism and war.
In the event of a dispute arising at our foreign operations in Paraguay, we may be subject to the exclusive jurisdiction of foreign courts or may not be successful in subjecting foreign persons to the jurisdiction of the courts in the United States or Canada. We may also be hindered or prevented from enforcing our rights with respect to a government entity or instrumentality because of the doctrine of sovereign immunity. Any adverse or arbitrary decision of a foreign court may have a material and adverse impact on our business, prospects, financial condition and results of operations.
The title to our mineral property interests may be challenged.
Although we have taken reasonable measures to ensure proper title to our interests in mineral properties and other assets, there is no guarantee that the title to any of such interests will not be challenged. No assurance can be given that we will be able to secure the grant or the renewal of existing mineral rights and tenures on terms satisfactory to us, or that governments in the jurisdictions in which we operate will not revoke or significantly alter such rights or tenures or that such rights or tenures will not be challenged or impugned by third parties, including local governments, aboriginal peoples or other claimants. The Company has had communications and filings with the MOPC, whereby the MOPC is taking the position that certain concessions forming part of the Company’s Yuty, Alto Parana and Colonel Oviedo Projects are not eligible for extension as to exploration or continuation to exploitation in their current stages. While we remain fully committed to our development path forward in Paraguay, we have filed certain applications and appeals in Paraguay to reverse the MOPC’s position in order to protect the Company’s continuing rights in those concessions. Our mineral properties may be subject to prior unregistered agreements, transfers or claims, and title may be affected by, among other things, undetected defects. A successful challenge to the precise area and location of our claims could result in us being unable to operate on our properties as permitted or being unable to enforce our rights with respect to our properties.
Due to the nature of our business, we may be subject to legal proceedings which may divert management’s time and attention from our business and result in substantial damage awards.
Due to the nature of our business, we may be subject to numerous regulatory investigations, securities claims, civil claims, lawsuits and other proceedings in the ordinary course of our business including those described under Item 3, Legal Proceedings, herein. The outcome of these lawsuits is uncertain and subject to inherent uncertainties, and the actual costs to be incurred will depend upon many unknown factors. We may be forced to expend significant resources in the defense of these suits, and we may not prevail. Defending against these and other lawsuits in the future may not only require us to incur significant legal fees and expenses, but may become time-consuming for us and detract from our ability to fully focus our internal resources on our business activities. The results of any legal proceeding cannot be predicted with certainty due to the uncertainty inherent in litigation, the difficulty of predicting decisions of regulators, judges and juries and the possibility that decisions may be reversed on appeal. There can be no assurances that these matters will not have a material adverse effect on our business, financial position or operating results.
We depend on certain key personnel, and our success will depend on our continued ability to retain and attract such qualified personnel.
Our success is dependent on the efforts, abilities and continued service of certain senior officers and key employees and consultants. A number of our key employees and consultants have significant experience in the uranium industry. A loss of service from any one of these individuals may adversely affect our operations, and we may have difficulty or may not be able to locate and hire a suitable replacement.
Certain directors and officers may be subject to conflicts of interest.
The majority of our directors and officers are involved in other business ventures including similar capacities with other private or publicly-traded companies. Such individuals may have significant responsibilities to these other business ventures, including consulting relationships, which may require significant amounts of their available time. Conflicts of interest may include decisions on how much time to devote to our business affairs and what business opportunities should be presented to us. Our Code of Conduct and Ethics provides for guidance on conflicts of interest.
The laws of the State of Nevada and our Articles of Incorporation may protect our directors and officers from certain types of lawsuits.
The laws of the State of Nevada provide that our directors and officers will not be liable to our Company or to our stockholders for monetary damages for all but certain types of conduct as directors and officers. Our Bylaws provide for broad indemnification powers to all persons against all damages incurred in connection with our business to the fullest extent provided or allowed by law. These indemnification provisions may require us to use our limited assets to defend our directors and officers against claims, and may have the effect of preventing stockholders from recovering damages against our directors and officers caused by their negligence, poor judgment or other circumstances.
Several of our directors and officers are residents outside of the United States, and it may be difficult for stockholders to enforce within the United States any judgments obtained against such directors or officers.
Several of our directors and officers are nationals and/or residents of countries other than the United States, and all or a substantial portion of such persons’ assets are located outside of the United States. As a result, it may be difficult for investors to effect service of process on such directors and officers, or enforce within the United States any judgments obtained against such directors and officers, including judgments predicated upon the civil liability provisions of the securities laws of the United States or any state thereof. Consequently, stockholders may be effectively prevented from pursuing remedies against such directors and officers under United States federal securities laws. In addition, stockholders may not be able to commence an action in a Canadian court predicated upon the civil liability provisions under United States federal securities laws. The foregoing risks also apply to those experts identified in this document that are not residents of the United States.
Disclosure controls and procedures and internal control over financial reporting, no matter how well designed and operated, are designed to obtain reasonable, and not absolute, assurance as to its reliability and effectiveness.
Proposed and new legislation in the U.S. Congress, including changes in U.S. tax law, may adversely impact the Company and the value of shares of our common stock.
Changes to U.S. tax laws (which changes may have retroactive application) could adversely affect the Company or holders of shares of our common stock. In recent years, many changes to U.S. federal income tax laws have been proposed and made, and additional changes to U.S. federal income tax laws are likely to continue to occur in the future.
The U.S. Congress passed and is currently considering numerous items of legislation which may be enacted prospectively or with retroactive effect, and which legislation could adversely impact the Company’s financial performance and the value of shares of our common stock. In particular, we understand that new legislation known as the “Build Back Better Act” has been passed by both houses of the U.S. Congress. The legislation includes, without limitation, new corporate minimum income taxes. We understand that the proposals would be effective for 2022 or later years.
In addition, the Inflation Reduction Act of 2022 was recently signed into law and includes provisions that will impact the U.S. federal income taxation of corporations. Among other items, this legislation includes provisions that will impose a minimum tax on the book income of certain large corporations and an excise tax on certain corporate stock repurchases that would be imposed on the corporation repurchasing such stock. It is unclear how this legislation will be implemented by the U.S. Department of the Treasury and the Company cannot predict how this legislation or any future changes in tax laws might affect the Company or purchasers of our common stock.
Mining, extraction, recovery, processing, construction, development and exploration activities depend, to a substantial degree, on adequate infrastructure.
Reliable roads, bridges, power sources and water supply are important determinants affecting capital and operating costs. We consider the existing infrastructure to be adequate to support our proposed operations and activities. However, unusual or infrequent weather phenomena, including drought, flooding, sabotage, government and/or other interference in the maintenance or provision of such infrastructure could adversely affect our operations and activities, financial condition and results of operations.
Risks Related to our Industry
We are subject to the risks normally encountered by companies in the mineral extraction industry.
We are subject to the risks normally encountered by companies in the mineral extraction industry, such as:
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the discovery of unusual or unexpected geological formations; |
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accidental fires, floods, earthquakes, volcanic eruptions and other natural disasters; |
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unplanned power outages and water shortages; |
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controlling water and other similar mining hazards; |
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operating labor disruptions and labor disputes; |
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the ability to obtain suitable or adequate machinery, equipment or labor; |
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our liability for potential pollution or other hazards; and |
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other known and unknown risks involved in the conduct of exploration, development and operation of mines, extraction and recovery facilities and mills, along with the markets for uranium. |
The development of mineral properties is affected by many factors, including, but not limited to: the cost of operations; variations in the grade of mineralized material; fluctuations in the minerals markets; costs of extraction and processing equipment; availability of equipment and labor; labor costs and possible labor strikes; government regulations, including without limitation, regulations relating to taxes, royalties, allowable extraction or production, and importing and exporting of minerals; government actions, including without limitation the establishment or expansion of mineral withdrawals, parks and monuments; land exchanges; foreign exchange; employment; worker safety; transportation; and environmental protection.
Mining operations involve a high degree of risk.
The exploration, construction, development, operation and other activities associated with mineral projects, along with the expansion of existing recovery operations and mining activities and restarting of projects, involve significant risks, including financial, technical and regulatory risks. The development or advancement of any of the exploration properties in which we have an interest is contingent upon obtaining satisfactory exploration results, project permitting and licensing and financing. The exploration, construction, development, operation and other activities associated with mineral projects involves significant financial risks over an extended period of time, which even a combination of careful evaluation, experience and knowledge may not eliminate. While discovery of a mine or other facility may result in substantial value, few properties that are staked and explored are ultimately developed into producing mines or extraction or recovery facilities. Major expenses may be required to establish mineral resources and mineral reserves by drilling and to finance, permit, license and construct extraction, mining, recovery and processing facilities. It is very difficult to ensure that the current or proposed exploration, permitting, construction and development programs on our mineral properties will result in profitable commercial extraction, mining or recovery operations.
Whether a mineral deposit will be commercially viable depends on a number of factors, which include, among other things: the accuracy of mineral resource estimates; the particular attributes of the deposit, such as its size, geology, grade and accessibility; the ability to economically recover commercial quantities of the minerals; proximity to necessary infrastructure and availability of personnel; financing costs; governmental regulations, including regulations relating to prices, taxes, reclamation bonds and royalties; the potential for litigation; land use; importing and exporting; and environmental and cultural protection, including but not limited to the governmental establishment of mineral withdrawals, parks and monuments and land exchanges. The construction, development, expansion and restarting of projects are also subject to: the successful completion of engineering studies with adequate results to proceed; the issuance of necessary governmental licenses and permits; the availability of adequate financing; engineering and construction timetables and capital costs being correctly estimated for our projects, including restarting projects on standby; and such construction timetables and capital costs not being affected by unforeseen circumstances, including but not limited to delays due to litigation/injunctions. The effect of these factors cannot be accurately predicted, but the combination of these factors, along with others, may result in our not receiving an adequate return on invested capital.
It is possible that actual costs and economic returns of current and new extraction, mining, or recovery operations may differ materially from our best estimates. It is not unusual in the mining industry for new mining operations and facilities to experience unexpected problems during the start-up phase, to take much longer than originally anticipated to bring them into a recovery or producing phase, to require more capital than anticipated, to operate at a higher cost than expected and/or to have reclamation liabilities that are higher than expected.
Major nuclear and global market incidents may have adverse effects on the nuclear and uranium industries.
The nuclear incident that occurred in Fukushima, Japan on March 11, 2011 had significant and adverse effects on both the nuclear and uranium industries. If another nuclear incident were to occur, it may have further adverse effects for both industries. Public opinion of nuclear power as a source of electrical generation may be adversely affected, which may cause governments of certain countries to further increase regulation for the nuclear industry, reduce or abandon current reliance on nuclear power or reduce or abandon existing plans for nuclear power expansion. Any one of these occurrences has the potential to reduce current and/or future demand for nuclear power, resulting in lower demand for uranium and lower market prices for uranium, adversely affecting the operations and prospects of our Company. Furthermore, the growth of the nuclear and uranium industries is dependent on continuing and growing public support of nuclear power as a viable source of electrical generation.
Nuclear energy competes with other sources of energy, including oil, natural gas, coal and hydroelectricity. These other energy sources are, to some extent, interchangeable with nuclear energy, particularly over the longer term. Technical advancements in, and government subsidies for, renewable and other alternate forms of energy, such as wind and solar power, could make these forms of energy more commercially viable and put additional pressure on the demand for uranium concentrates. Sustained lower prices of alternate forms of energy may result in lower demand for uranium concentrates.
Market projections for future demand for uranium are based on various assumptions regarding the rate of construction and approval of new nuclear power plants, as well as continued public acceptance of nuclear energy around the world. The rationale for adopting nuclear energy can be varied, but often includes the clean and environmentally friendly operation of nuclear power plants, as well as the affordability and round-the-clock reliability of nuclear power. A change in public sentiment regarding nuclear energy could have a material impact on the number of nuclear power plants under construction, planned or proposed, which could have a material impact on the market’s and the Company’s expectations for the future demand for uranium and the future price of uranium.
The Russia-Ukraine war has highlighted to many global policymakers the significant geopolitical risk associated with an over reliance on sources of energy from politically unstable jurisdictions. In many cases, this has resulted in increased calls for a renewed focus on energy independence, to which many nations have identified nuclear power as a potentially critical energy alternative that can both improve energy sovereignty and support the achievement of carbon emission reduction climate goals.
In March 2020 the COVID-19 pandemic resulted in a black swan event impacting about 50% of the world’s uranium production and has accelerated the market rebalancing. In 2020 significant production cuts were announced in response to the global COVID-19 pandemic, including uranium facilities in Canada, Kazakhstan and Namibia. In 2024 most production impacted by COVID-19 has returned to an operating status. The Company also believes that a large degree of uncertainty exists in the market, primarily due to the size of mobile uranium inventories, transportation issues, premature reactor shutdowns in the U.S. and the length of time of any uranium mine, conversion or enrichment facility shutdowns.
The uranium industry is subject to numerous stringent laws, regulations and standards, including environmental protection laws and regulations. If any changes occur that would make these laws, regulations and standards more stringent, it may require capital outlays in excess of those anticipated or cause substantial delays, which would have a material adverse effect on our operations.
Uranium exploration, pre-extraction and extraction programs and mining activities are subject to numerous stringent laws, regulations and standards at the federal, state and local levels governing permitting, pre-extraction, extraction, exports, taxes, labor standards, occupational health, waste disposal, protection and reclamation of the environment, protection of endangered and protected species, mine safety, hazardous substances and other matters. Our compliance with these requirements requires significant financial and personnel resources.
The laws, regulations, policies or current administrative practices of any government body, organization or regulatory agency in the U.S., or any other applicable jurisdiction, may change or be applied or interpreted in a manner which may also have a material adverse effect on our operations. The actions, policies or regulations, or changes thereto, of any government body or regulatory agency or special interest group may also have a material adverse effect on our operations.
Uranium exploration, pre-extraction and extraction programs and mining activities are subject to stringent environmental protection laws and regulations at the federal, state and local levels. These laws and regulations include permitting and reclamation requirements, regulate emissions, water storage and discharges and disposal of hazardous wastes. Uranium mining activities are also subject to laws and regulations which seek to maintain health and safety standards by regulating the design and use of mining methods. Various permits from governmental and regulatory bodies are required for mining to commence or continue, and no assurance can be provided that required permits will be received in a timely manner.
Our compliance costs, including the posting of surety bonds associated with environmental protection laws and regulations and health and safety standards, have been significant to date, and are expected to increase in scale and scope as we expand our operations in the future. Furthermore, environmental protection laws and regulations may become more stringent in the future, and compliance with such changes may require capital outlays in excess of those anticipated or cause substantial delays, which would have a material adverse effect on our operations.
While the very heart of our business – uranium extraction, which is the fuel for carbon-free, emission-free baseload nuclear power, helps address global climate change and reduces air pollution, the world’s focus on addressing climate change will require the Company to continue to conduct all of its operations in a manner that minimizes the use of resources, including enhancing energy efficiency and reducing our reliance on fossil fuels, in order to continue to minimize air emissions at our facilities, which can also increase mine and facility, construction, development and operating costs. Regulatory and environmental standards may also change over time to address global climate change, which could further increase these costs.
To the best of our knowledge, our operations are in compliance, in all material respects, with all applicable laws, regulations and standards. If we become subject to liability for any violations, we may not be able or may elect not to insure against such risk due to high insurance premiums or other reasons. Where coverage is available and not prohibitively expensive relative to the perceived risk, we will maintain insurance against such risk, subject to exclusions and limitations. However, we cannot provide any assurance that such insurance will continue to be available at reasonable premiums or that such insurance will be adequate to cover any resulting liability.
The uranium industry is subject to influential political and regulatory factors which could have a material adverse effect on our business and financial condition.
The international uranium industry, including the supply of uranium concentrates, is relatively small, competitive and heavily regulated. Worldwide demand for uranium is directly tied to the demand for electricity produced by the nuclear power industry, which is also subject to extensive government regulation and policies. In addition, the international marketing and trade of uranium is subject to political changes in governmental policies, regulatory requirements and international trade restrictions (including trade agreements, customs, duties and/or taxes). International agreements, governmental policies and trade restrictions are beyond our control. Changes in regulatory requirements, customs, duties or taxes may affect the availability of uranium, which could have a material adverse effect on our business and financial condition.
The uranium industry is highly competitive and we may not be successful in acquiring additional projects.
The uranium industry is highly competitive, and our competition includes larger, more established companies with longer operating histories that not only explore for and produce uranium, but also market uranium and other products on a regional, national or worldwide basis. Due to their greater financial and technical resources, we may not be able to acquire additional uranium projects in a competitive bidding process involving such companies. Additionally, these larger companies have greater resources to continue with their operations during periods of depressed market conditions.
Risks Related to Our Common Stock
Historically, the market price of our common stock has been and may continue to fluctuate significantly.
On September 28, 2007, our common stock commenced trading on the NYSE American (formerly known as the American Stock Exchange, the NYSE Amex Equities Exchange and the NYSE MKT) and prior to that, traded on the OTC Bulletin Board.
The global markets have experienced significant and increased volatility in the past, and have been impacted by the effects of mass sub-prime mortgage defaults and liquidity problems of the asset-backed commercial paper market, resulting in a number of large financial institutions requiring government bailouts or filing for bankruptcy. The effects of these past events and any similar events in the future may continue to or further affect the global markets, which may directly affect the market price of our common stock and our accessibility for additional financing. Although this volatility may be unrelated to specific company performance, it can have an adverse effect on the market price of our shares which, historically, has fluctuated significantly and may continue to do so in the future.
In addition to the volatility associated with general economic trends and market conditions, the market price of our common stock could decline significantly due to the impact of any one or more events including, but not limited to, the following: (i) volatility in the uranium market; (ii) occurrence of a major nuclear incident such as the events in Japan in March 2011; (iii) changes in the outlook for the nuclear power and uranium industries; (iv) failure to meet market expectations on our exploration, pre-extraction or extraction activities, including abandonment of key uranium projects; (v) sales of a large number of our shares held by certain stockholders including institutions and insiders; (vi) downward revisions to previous estimates on us by analysts; (vii) removal from market indices; (viii) legal claims brought forth against us; and (ix) introduction of technological innovations by competitors or in competing technologies.
A prolonged decline in the market price of our common stock could affect our ability to obtain additional financing which would adversely affect our operations.
Historically, we have relied on equity financing and debt financing as primary sources of financing. A prolonged decline in the market price of our common stock or a reduction in our accessibility to the global markets may result in our inability to secure additional financing which would have an adverse effect on our operations.
Additional issuances of our common stock may result in significant dilution to our existing shareholders and reduce the market value of their investment.
We are authorized to issue 750,000,000 shares of common stock of which 419,142,428 shares were issued and outstanding as of October 31, 2024. Future issuances for financings, mergers and acquisitions, exercise of stock options and share purchase warrants and for other reasons may result in significant dilution to and be issued at prices substantially below the price paid for our shares held by our existing stockholders. Significant dilution would reduce the proportionate ownership and voting power held by our existing stockholders and may result in a decrease in the market price of our shares.
We are subject to the Continued Listing Criteria of the NYSE American and our failure to satisfy these criteria may result in delisting of our common stock.
Our common stock is currently listed on the NYSE American. In order to maintain this listing, we must maintain certain share prices, financial and share distribution targets, including maintaining a minimum amount of shareholders’ equity and a minimum number of public shareholders. In addition to these objective standards, the NYSE American may delist the securities of any issuer: (i) if in its opinion, the issuer’s financial condition and/or operating results appear unsatisfactory; (ii) if it appears that the extent of public distribution or the aggregate market value of the security has become so reduced as to make continued listing on the NYSE American inadvisable; (iii) if the issuer sells or disposes of principal operating assets or ceases to be an operating company; (iv) if an issuer fails to comply with the NYSE American’s listing requirements; (v) if an issuer’s common stock sells at what the NYSE American considers a “low selling price” and the issuer fails to correct this via a reverse split of shares after notification by the NYSE American; or (vi) if any other event occurs or any condition exists which makes continued listing on the NYSE American, in its opinion, inadvisable.
If the NYSE American delists our common stock, investors may face material adverse consequences including, but not limited to, a lack of trading market for our securities, reduced liquidity, decreased analyst coverage of our securities, and an inability for us to obtain additional financing to fund our operations.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On September 5, 2024, we issued 39,393 shares of common stock pursuant to the exercise of warrants at a price of CA$3.22 per share. We relied upon the exemption from the registration requirements under the Securities Act provided by Rule 903 of Regulation S with respect to the issuance of these shares.
On September 5, 2024, we issued 775,890 shares of common stock pursuant to the exercise of warrants at a price of CA$4.44 per share. We relied upon the exemption from the registration requirements under the Securities Act provided by Rule 903 of Regulation S with respect to the issuance of these shares.
On September 9, 2024, we issued 227,889 shares of common stock pursuant to the exercise of warrants at a price of CA$4.44 per share. We relied upon the exemption from the registration requirements under the Securities Act provided by Rule 903 of Regulation S with respect to the issuance of 196,389 shares and upon the exemption from the registration requirements under the Securities Act provided by Rule 506(b) of Regulation D and/or Section 4(a)(2) of the Securities Act with respect to the issuance of 31,500 shares.
On October 7, 2024, we issued 10,000 shares of common stock to a consultant in consideration for services under a consulting agreement at a deemed issuance price of $6.21 per share. We relied upon the exemption from the registration requirements under the Securities Act provided by Rule 903 of Regulation S with respect to the issuance of these shares.
On October 30, 2024, we issued 5,000 shares of common stock to an entity pursuant to an amendment to uranium mining lease, stand still and right-of-way and easement at a deemed issuance price of $5.11 per share. We relied upon the exemption from the registration requirements under the Securities Act provided by Rule 506(b) of Regulation D and/or Section 4(a)(2) of the Securities Act with respect to the issuance of these shares.
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
Pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, issuers that are operators, or that have a subsidiary that is an operator, of a coal or other mine in the United States, and that is subject to regulation by the Federal Mine Safety and Health Administration under the Mine Safety and Health Act of 1977 (the “Mine Safety Act”), are required to disclose in their periodic reports filed with the SEC information regarding specified health and safety violations, orders and citations, related assessments and legal actions, and mining-related fatalities. During the quarter ended October 31, 2024, our ISR Mines were not subject to regulation by the Federal Mine Safety and Health Administration under the Mine Safety Act.
During our fiscal quarter ended October 31, 2024, of our directors or executive officers adopted, modified or terminated any contract, instruction or written plan for the purchase or sale of our securities that was intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) or any “non-Rule 10b5-1 trading arrangement” as defined in Item 408(c) of Regulation S-K.
The following exhibits are included with this Quarterly Report:
| Exhibit |
Description of Exhibit |
| 31.1(*) |
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| 31.2(*) |
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| 32.1(**) |
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| 101.1NS(*) | Inline XBRL Instance Document |
| 101.SCH(*) |
Inline XBRL Taxonomy Extension Schema Document |
| 101.CAL(*) | Inline XBRL Taxonomy Extension Calculation Linkbase Document |
| 101.DEF(*) | Inline XBRL Taxonomy Extension Definitions Linkbase Document |
| 101.LAB(*) | Inline XBRL Taxonomy Extension Label Linkbase Document |
| 101.PRE(*) | Inline XBRL Taxonomy Extension Presentation Linkbase Document |
| 104(*) |
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) |
Notes:
| (*) |
Filed herewith |
| (**) |
Furnished herewith |
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Quarterly Report to be signed on its behalf by the undersigned thereunto duly authorized.
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URANIUM ENERGY CORP. |
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By: |
/s/ Amir Adnani |
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Amir Adnani |
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President, Chief Executive Officer (Principal Executive Officer) and director |
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| Date: December 4, 2024 | |||
| By: | /s/ Josephine Man | ||
| Josephine Man | |||
| Chief Financial Officer (Principal Financial Officer) | |||
| Date: December 4, 2024 | |||