Rebounding After a Drought
Westwater Resources, Inc. WWR shares have seen a notable uptick following the release of their FY23 financial results.
An interesting turn of events for a firm that had languished without revenue since the distant memory of 2009.
In a significant development, the company reported a decrease in EPS loss, falling from $(0.25) in 2022 to $(0.15) in 2023. This was attributed to several factors, including a $3.1 million cash settlement from the Republic of Turkey and a $1.2 million write-off of accrued uranium royalties. Additionally, an increase of $0.3 million in interest income from investments and $0.5 million less exploration expenses played a part in this positive shift.
Furthermore, the expenses related to product development for the year 2023 skyrocketed by 156% to $2.9 million as the company focused on enhancing product features, optimization efforts, and producing additional samples for customer evaluations.
The net cash outflow from operations witnessed a 13% decline year-over-year, amounting to $(11.4) million in 2023, chiefly due to a $3.1 million cash boost from an arbitration settlement in the fourth quarter.
As of December 31, 2023, Westwater boasted a healthy cash balance of $10.9 million. The company has invested approximately $119.2 million since initiating the construction of Phase I of the Kellyton Graphite Plant.
Terence J. Cryan, Executive Chairman, chimed in, expressing enthusiasm: “We are especially delighted about the off-take agreement with a major Tier 1 battery manufacturer, the increased Phase I production projections within budget, and the encouraging future economic prospects stemming from our early evaluation of the Coosa Graphite Deposit.”
Frank Bakker, the President, and CEO, shared his optimism, stating, “Westwater stands out as the lone U.S.-based natural graphite company actively building a processing facility with a long-term off-take deal for CSPG. Moreover, having a graphite deposit in close proximity to the future processing plant sets us apart. The accomplishments achieved by the Westwater team in 2023 not only hold significance for the past year but also position us favorably for the year ahead.”
Price Action: WWR shares are on a winning streak, up by 11.3% and currently trading at $0.54 as of the latest Wednesday check.
