Construction Activities Underway of
Commercial Scale Facility in Coosa County, Alabama
National Pollutant Discharge
Elimination System (NPDES) Permit Granted to Westwater for
Commencement of Site Grading
Construction Plan on Schedule for 2023
Completion
Westwater Resources, Inc. (NYSE American: WWR), a
battery-grade, natural graphite development company (“Westwater” or
the “Company”), is pleased to announce its year-end 2021 results
and provide a business review, including the recently announced
management succession changes.
On February 9, 2022, the Company announced the retirement of
Christopher M. Jones, President and Chief Executive Officer (CEO)
and a member of the Board, effective February 25, 2022. Chad M.
Potter, who is serving as Chief Operating Officer (COO), has been
elected Westwater’s new President and CEO, and appointed to fill
the Board vacancy created by Mr. Jones’ departure, effective
February 26, 2022. Mr. Potter’s appointment is the result of a
planned succession strategy dating back to 2021. The Board also
announced that, effective February 26, 2022, Terence J. Cryan will
become the Company’s Executive Chairman.
Messrs. Cryan, Jones, and Potter, along with Jeffrey L. Vigil,
Westwater’s Vice President – Finance and Chief Financial Officer
(CFO), will be available to discuss these changes further during
the Company’s year-end conference call at 11 am EST/9 am MST on
Monday, February 14, 2022. See dial-in details below.
2021 Review
During 2021, the Westwater team achieved critical milestones and
achievements, notably:
- Completed the Definitive Feasibility Study (“DFS”) for Phase I
of the Company’s proposed battery-grade graphite processing
facility near Kellyton, Alabama (the “Coosa Plant”) – defining our
process parameters and providing critical information for detailed
design and construction.
- Completed our Pilot Program, resulting in 13 metric tonnes of
finished product.
- Acquired two buildings adjacent to the Coosa Plant, which
provides 90,000 sq ft of office, laboratory and warehouse space and
avoids the need to construct similar facilities as part of plant
construction.
- Entered into incentive agreements with the State of Alabama and
local municipalities for the siting of the Coosa Plant.
- Signed a lease with a nominal cost for 70 acres where the Coosa
Plant is sited.
- Applied for a patent on purification of graphite
concentrate.
- Signed a letter of intent for the sale of 125-250 metric tonnes
of product.
- After year-end, received the NPDES Permit required for site
grading.
“In a very challenging global business environment, we had our
most productive year, achieving meaningful milestones towards our
goal to develop a battery-grade graphite manufacturing business in
Alabama,” said Chris Jones, CEO of Westwater. “These
accomplishments were the result of our extraordinary team advancing
the Company towards the construction of our Coosa Plant which is on
schedule for completion in the first half of 2023.”
“Westwater has in place a contract for the purchase of graphite
flake as feedstock for the Coosa Plant until the Coosa Deposit is
developed,” said Chad Potter, COO of Westwater. “In addition to the
letter of intent we recently signed, Westwater has initiated
discussions with several battery manufacturers, with the goal of
signing multi-year supply agreements. Our marketing plan activities
also include a number of automobile manufacturers who will soon
begin manufacturing and marketing electric vehicles.”
“Westwater’s decision to focus on developing and producing
energy materials was enhanced in February 2021, when the U.S.
Government named graphite and vanadium as critical minerals that
are essential to the U.S. economy and national security,” Mr.
Potter continued. “With construction of the Coosa Plant and
production of battery-grade graphite scheduled for 2023, plus
permitting and development of the Coosa Deposit for flake graphite
production planned for 2028, we are poised to become the first
fully integrated U.S. domestic graphite producer.”
Westwater previously announced vanadium was discovered in
addition to graphite on the Coosa Deposit, and programs have been
implemented to demonstrate the possible size and value of the
vanadium and the extent of the overall ore body. In 2021, we began
further exploration of the Coosa Deposit to increase our knowledge
of the geology, mineralization and economic potential of both the
graphite and vanadium present on the deposit. This exploration will
continue through the first quarter of 2022, with a technical report
completed by the end of 2022.
“Our financial results for the year ended December 31, 2021,
reflect increases in product development, exploration and general
and administrative costs as we significantly increase our
activities in executing our plans to bring the Coosa Project into
commercial development,” said Jeff Vigil, CFO of Westwater.
Financial Summary
($ in 000's, Except Per Share
Amounts)
FY
2021
FY
2020
Variance
Net Cash Used in
Operations
$(16,916)
$(15,183)
11%
Product Development
Expenses
$(5,975)
$(4,049)
48%
General and Administrative
Expenses*
$(8,875)
$(7,343)
21%
Net Loss
$(16,144)
$(23,574)
-32%
Net Loss Per Share
$(0.49)
$(2.68)
-82%
Avg. Weighted Shares
Outstanding
32,653,089
8,799,190
271%
*General and Administrative Expenses for
the year ended December 31, 2020, includes $1.7 million of expenses
attributable to discontinued operations.
Net cash used in operations increased $1.7 million due to
increased graphite product development, exploration and general and
administration and arbitration costs.
Product development expenses for the year ended December 31,
2021, increased by $1.9 million, as compared to 2020. Product
development costs were primarily related to the DFS, which began in
February 2021 and was completed in October 2021, and our product
development program that continued through the end of 2021. The
product development program includes costs incurred to collaborate
with outside experts for lab work, product testing and other
auxiliary costs associated with the Coosa Project.
General and administrative costs for the year ended December 31,
2021, increased by $1.5 million, as compared to 2020. The increased
costs were primarily due to increased sales and marketing costs,
higher stock compensation expense, as well as higher public company
expenses. These increases were offset partially by the elimination
of $1.7 million of costs attributable to Westwater’s uranium
business, which was sold in the fourth quarter of 2020.
Net loss from continuing operations was $16.1 million for the
year ended December 31, 2021, or $0.49, as compared to a net loss
in 2020 of $13.9 million or $1.58 per share. The $2.2 million
increase was due largely to increases in production development,
exploration expenses and general and administrative costs.
Net loss from discontinuing operations of $9.7 million for 2020
relates to the sale of Westwater’s uranium business in the fourth
quarter of 2020.
Westwater also incurred exploration expenses of $1.1 million in
2021 to investigate the extent of mineral concentrations at the
Coosa Deposit. Westwater anticipates completing its exploration
program during the first quarter of 2022. Following the completion
of its exploration program on the Coosa Deposit, Westwater intends
to complete a technical report related to the mineral
concentrations discovered.
Cash and Working Capital
As of December 31, 2021, the Company’s cash balance was $115.3
million, compared to $50.3 million as of December 31, 2020. The
significant increase in 2021 was due to capital raises utilizing
the Company’s financing facilities with Cantor Fitzgerald & Co.
and Lincoln Park Capital LLC.
Shares Outstanding
Total shares outstanding are 35.4 million as of February 10,
2022.
Conference Call
Management will host a conference call to discuss these results
and the management succession change on February 14, 2022, at 11:00
AM EDT (9:00 AM Mountain).
The dial-in numbers are: Canada/USA TF: 1-800-319-4610
International Toll: +1-604-638-5340 Callers should dial in 5 – 10
min prior to the scheduled start time and simply ask to join the
call.
A live webcast of the conference call presentation will also
be available through the Company’s website:
www.westwaterresources.net
For a replay of the call: Canada/USA TF: 1-855-669-9658
International Toll: +1-412-317-0088 Replay Access Code: 8289
About Westwater Resources Inc.
Westwater Resources Inc. (NYSE American: WWR) is focused on
developing battery-grade natural graphite. The Company’s primary
project is the Coosa Project — the most advanced natural flake
graphite project in the contiguous United States — which includes
the Coosa Plant located near Kellyton, Alabama and the associated
Coosa Deposit located across 41,900 acres (~17,000 hectares) in
east-central Alabama. For more information, visit
www.westwaterresources.net.
Cautionary Statement Regarding Forward-Looking
Statements
This news release contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are subject to risks, uncertainties and
assumptions and are identified by words such as "expects,"
"estimates," "projects," "anticipates," "believes," "could,"
“scheduled,” and other similar words. Forward looking statements
include, among other things, statements concerning the construction
and operation of the Company’s Coosa Plant and the costs and
schedules associated therewith, our business strategy, any future
drilling or production from the Company’s properties, including the
expected mining operations at the Coosa Deposit, expected
mineralization at the Coosa Deposit, expected date of the technical
report for the Coosa Deposit and the expected commencement date of
drilling at the Coosa Deposit The Company cautions that there are
certain factors that could cause actual results to differ
materially from the forward-looking information that has been
provided. The reader is cautioned not to put undue reliance on this
forward-looking information, which is not a guarantee of future
performance and is subject to a number of uncertainties and other
factors, many of which are outside the control of the Company;
accordingly, there can be no assurance that such suggested results
will be realized. The following factors, in addition to those
discussed in Westwater’s Annual Report on Form 10-K for the year
ended December 31, 2021, and subsequent securities filings, could
cause actual results to differ materially from management
expectations as suggested by such forward-looking information: (a)
the spot price and long‑term contract price of graphite (both flake
graphite feedstock and purified graphite products) and vanadium,
and the world-wide supply and demand of graphite and vanadium; (b)
the effects, extent and timing of the entry of additional
competition in the markets in which we operate; (c) the ability to
obtain contracts with customers; (d) available sources and
transportation of graphite feedstock; (e) the ability to control
costs and avoid cost and schedule overruns during the development,
construction and operation of the Coosa Project; (f) the ability to
construct and operate the Coosa Plant in accordance with the
requirements of permits and licenses and the requirements of tax
credits and other incentives; (g) government regulation of the
mining and manufacturing industries in the United States; (h)
unanticipated geological, processing, regulatory and legal or other
problems we may encounter; (i) the results of our exploration
activities, and the possibility that future exploration results may
be materially less promising than initial exploration results; (j)
any graphite or vanadium discoveries not being in high enough
concentration to make it economic to extract the metals; (k) our
ability to finance growth plans; (l) the potential effects of the
continued COVID-19 pandemic; (m) currently pending or new
litigation or arbitration; and (n) our ability to maintain and
timely receive mining, manufacturing, and other permits from
regulatory agencies.
Except as required by law, the Company disclaims any obligation
to update or publicly announce any revisions to any of the
forward-looking statements contained in this news release.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220214005298/en/
Westwater Resources Inc. Terence J. Cryan, Chairman of
the Board Phone : 303-531-0516 Jeff Vigil, VP Finance & CFO
Phone: 303.531.0481 Email: Info@WestwaterResources.net
Product Sales Contact: Jay Wago, Vice President – Sales
and Marketing Phone: 303.531.0472 Email:
Sales@westwaterresources.net
Investor Relations Porter, LeVay & Rose Michael
Porter, President Phone: 212.564.4700 Email:
Westwater@plrinvest.com
Westwater Resources (NASDAQ:WWR)
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