Ceremonial Ground-Breaking for the Kellyton
Graphite Processing Plant
Company Completes Drilling to Measure Size
and Extent of Graphite and Vanadium Concentration at the Coosa
Graphite Deposit near Rockford, AL
Westwater Resources, Inc. (NYSE American: WWR), an energy
technology and battery-grade natural graphite development company
(“Westwater” or the “Company”), today announced its first quarter
results for the period ended March 31, 2022 and provided an update
on its Kellyton graphite processing plant currently under
construction in east-central Alabama.
“During the first quarter, construction activities continued at
the Kellyton site where we began civil and earth work, hired a
general contractor, built out administrative offices, hosted a
groundbreaking ceremony, continued to order equipment for the plant
and submitted the application for our wastewater disposal permit,”
said Chad Potter, President and CEO.
Mr. Potter continued, “In March 2022 the White House invoked the
Defense Production Act to encourage domestic production of critical
material, including graphite, for batteries in electric vehicles
and clean energy storage to reduce our nation’s dependency on
imported graphite, most of it from China. In May 2022 the
Department of Energy (DOE) issued a Funding Opportunity
Announcement of $3.1 billion to fund investments within the battery
supply chain for electric vehicles and increase domestic battery
manufacturing. We at Westwater are monitoring these developments
closely to determine the benefit to Westwater and its
shareholders.”
“Given the current supply chain issues, Management has
prioritized the ordering of all long-lead equipment for the plant.
We have assembled a world class construction management team, and
we are hyper-focused on managing the impact to our schedule and
budget due to these global supply chain issues,” Mr. Potter
concluded.
In April 2022, the Company completed its graphite and vanadium
drilling activities at its Coosa graphite deposit. The exploration
program was conducted on approximately 4,000 acres of the 41,900
acres for which Westwater holds minerals rights; core samples are
currently being evaluated and the Company anticipates preparation
of a technical resource report by the end of this year.
On April 19, 2022, the Company held a ceremonial groundbreaking
for the Kellyton graphite processing plant. Governor Kay Ivey of
Alabama and other elected officials attended the Company’s
ceremonial groundbreaking. Alabama is home to Mercedes, Honda,
Hyundai, Mazda, and Toyota, and is among the top four states in the
nation in the automotive industry. Westwater’s Kellyton graphite
processing plant is well located to participate in the fast-growing
electric vehicle sector.
Westwater’s patent-pending process to be used at the Kellyton
graphite processing plant is safer and more environmentally
friendly than any other process used worldwide. The Company
anticipates it will process graphite into Coated Spherical Purified
Graphite (“CSPG”), a high-performance anode material for
lithium-ion batteries. CSPG also improves electrical conductivity
for battery use in smart phones, computers, and other electronic
devices.
“We finished the first quarter with a cash balance of $116.0
million and a working capital balance of $108.6 million. Our
significant working capital balance and zero debt provide us with
the ability to continue to move the construction of the Kellyton
graphite processing plant forward,” said Jeff Vigil, Vice President
– Finance and CFO. Mr. Vigil concluded, “We have incurred $17.8
million of costs since beginning construction of Phase I of the
Kellyton graphite processing plant. With our cash balance and no
debt, we believe we have the liquidity to continue advancing our
investment in Phase I of the plant.”
Financial Summary
($ in 000's, Except Share and Per Share
Amounts)
Q1
2022
Q1
2021
Variance
Net Cash Used in Operations
$(2,701)
$(4,850)
(44%)
Product Development Expenses
$(233)
$(1,823)
(87%)
General and Administrative
Expenses
$(2,211)
$(2,084)
6%
Net Loss
$(2,809)
$(5,390)
(48%)
Net Loss Per Share
$(0.08)
$(0.19)
(58%)
Avg. Weighted Shares
Outstanding
36,757,352
28,597,938
29%
- Net cash used in operations was $2.1 million lower for
the three months ended March 31, 2022, compared to the same period
in 2021. The decrease in cash used in operations was a result of
reduced product development expenses and arbitration costs.
- Product development expenses for the three months ended
March 31, 2022, decreased $1.6 million compared to the same 2021
period. Product development costs for the first quarter of 2022
were related to continued product development and optimization
costs; the prior-year period was impacted by the expenses related
to the Definitive Feasibility Study for Phase I of the Kellyton
graphite processing facility and the Company’s pilot program, both
of which were completed in the second half of 2021.
- General and administrative expenses for the three months
ended March 31, 2022, increased by $0.1 million from the prior-year
period. The increase quarter over quarter is due primarily to
higher payroll costs as the Company continues to build out its team
and to invest in sales and marketing.
- Consolidated net loss for the three months ended March
31, 2022, was $2.8 million, or $0.08 per share, compared to a net
loss of $5.4 million, or $0.19 per share, for the same period in
2021. The $2.6 million reduction in net loss was due primarily to
decreased product development expenses and arbitration costs.
- Cash and working capital as of March 31, 2022, was
$116.0 million consistent with our cash balance at December 31,
2021. Working capital at March 31, 2022 was $108.6 million, which
represents a decrease of $1.7 million compared to December 31,
2021. The decrease in working capital was primarily the result of
costs incurred during the quarter of $14.5 million related to the
Kellyton graphite processing plant, and operating cash expenditures
of $2.7 million; offset partially by 7.4 million shares of common
stock sold for net proceeds of $15.6 million pursuant to our
Controlled Equity OfferingSM Sales Agreement with Cantor Fitzgerald
& Co.
Conference Call
Management will host a conference call to discuss these results
on May 11, 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 at 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: 8767
About Westwater Resources, Inc. Westwater Resources, Inc.
(NYSE American: WWR), an energy technology company, is focused on
developing battery-grade natural graphite. The Company’s primary
project is the Kellyton graphite processing plant that is under
construction in east-central Alabama. In addition, the Company’s
Coosa graphite deposit is the most advanced natural flake graphite
deposit in the contiguous United States — and located across 41,900
acres (~17,000 hectares) in Coosa County, 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 Kellyton graphite processing
facility, the Company’s Coosa graphite deposit, and the costs and
schedules associated with them. 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 Kellyton graphite processing
facility; (f) the ability to construct and operate the Kellyton
graphite processing 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 at the
Coosa graphite deposit, and the possibility that future exploration
results may be materially less promising than initial exploration
results; (j) any graphite or vanadium discoveries at the Coosa
graphite deposit 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220511005267/en/
Westwater Resources, Inc. Terence J. Cryan, Executive
Chairman of the Board Phone : 303-531-0516 Chad Potter, President
& CEO 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
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