enCore Energy Provides Q1/24 ATM Sales Update; Suspends ATM Program

Rhea-AI Summary

enCore Energy Corp. announces the issuance of 495,765 common shares under the ATM Program, generating gross proceeds of US$2,008,256.36 at an average share price of US$4.05 per share. The Company has suspended the program with a remaining balance of approximately US$18.7 million for sale. With a strong financial position, enCore does not foresee further sales under the program due to ample cash reserves and revenue from operations.

Insights

Market Analyst

The issuance of common shares under the at-the-market (ATM) program by enCore Energy Corp. is a strategic move that reflects the company's financing strategy. The average share price of US$4.05 provides an indication of market valuation during the period of issuance. The gross proceeds of over US$2 million, while not overwhelmingly large for a public company, can offer some liquidity and support operational activities or strategic initiatives. However, the commission paid is a routine cost of capital raising activities.

The suspension of the ATM Program with a significant balance of US$18.7 million in common shares still available suggests confidence in the company's financial health. This is reinforced by the reported US$80 million in cash reserves and zero debt, which are strong indicators of financial stability. The revenue from ongoing operations and expected production revenue signal operational efficiency and potential for growth, which could be favorable for the stock performance. Investors might view these developments positively, considering the company's proactive management of its capital structure.

Energy Sector Analyst

enCore Energy Corp.'s activities in the uranium sector position the company within a critical industry for energy production, especially as nuclear power gains attention in the context of clean energy discussions. The Rosita In-Situ Recovery Uranium Central Processing Plant (CPP) and the anticipated revenue from the Alta Mesa CPP are significant as they highlight enCore's operational capabilities and potential for increased market share within the uranium production industry.

The strategic halt of the ATM Program could be seen as a signal of operational self-sufficiency and a reduced need for external financing, possibly due to the revenue streams from these CPPs. For stakeholders, the long-term implications of sustained revenue from uranium production could mean a more stable investment, but this is contingent on the consistent demand for uranium and the regulatory environment surrounding nuclear energy.

Financial Analyst

From a financial perspective, enCore's zero-debt status is particularly noteworthy. Debt-free operations are rare in the capital-intensive energy sector and this positions enCore favorably in terms of risk profile. The company's ability to fund operations through cash on hand rather than through debt or further equity issuance is a testament to its financial management. This could potentially lead to an improved credit rating and lower cost of capital in the future.

Investors often scrutinize the reasons behind the suspension of financing programs like the ATM. In this case, enCore's explanation indicating sufficient liquidity and operational revenue could reassure investors about the company's financial health. However, the market will watch closely for the actual performance of the CPPs to ensure that the expected revenues materialize and support the company's financial projections.

NASDAQ:EU
TSXV:EU
www.encoreuranium.com 

DALLAS, April 4, 2024 /PRNewswire/ - enCore Energy Corp. ("enCore" or the "Company") (NASDAQ: EU) (TSXV: EU), a domestic uranium producer, announced today as required by the TSXV, that the Company issued a total of 495,765 common shares, between the period January 1, 2024 to March 31, 2024, under the at-the-market controlled equity offering program ("ATM Program"). The shares were issued through the facilities of the TSXV and NASDAQ at an average share price of US$4.05 per share for gross proceeds of US$2,008,256.36 with a commission of US$50,206.42 paid to the Agent. The last settlement date was January 16, 2024.

The Company also advises it has suspended its ATM Program with a remaining balance of approximately US$18.7 million of common shares available for sale.  The Company does not anticipate further sales under the ATM program in light of its current cash on hand of approximately US$80 million, zero debt, revenue from ongoing operations at the Rosita In-Situ Recovery Uranium Central Processing Plant ("CPP") and expected near term production revenue from the Alta Mesa CPP.  

About enCore Energy Corp.

enCore Energy Corp., America's Clean Energy Company™, is committed to providing clean, reliable, and affordable domestic nuclear energy as the newest uranium producer in the United States. Uranium production commenced at enCore's licensed and past-producing South Texas Rosita Central In-Situ Recovery ("ISR") Uranium Processing Plant ("CPP") in November 2023 with work underway for a planned 2024 restart of uranium production at its licensed and past-producing South Texas Alta Mesa CPP. The enCore team is led by industry experts with extensive knowledge and experience in all aspects of ISR uranium operations and the nuclear fuel cycle. enCore solely utilizes ISR for uranium extraction, a well-known and proven technology co-developed by the leaders at enCore Energy. In-Situ Recovery extracts uranium in a wellfield using natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.  

Future projects in enCore's production pipeline include the Dewey-Burdock project in South Dakota and the Gas Hills project in Wyoming, along with significant uranium resource endowments in New Mexico providing long term opportunities. enCore diligently works to realize value from other owned assets, including our proprietary uranium database that includes technical information from many past producing companies, from our various non-core assets, and by leveraging our ISR expertise in researching opportunities that support the use of this technology as applied to other metals. enCore is also committed to working with local communities and indigenous governments to create positive impact from corporate developments.

@enCoreEnergy_EU

Cautionary Note Regarding Forward Looking Statements: 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Certain information contained in this news release, including statements regarding future or potential production at the Alta Mesa and pipeline projects, the technical merits of ISR and ion exchange process for uranium extraction and recovery, and any other statements regarding future expectations, beliefs, goals or prospects may constitute forward-looking information and forward-looking statements within the meaning of applicable Canadian and United States securities laws and regulations (collectively, "forward-looking statements"). All statements in this news release that are not statements of historical fact (including statements containing the words "expects", "is expected", "does not expect", "plans", "anticipates", "does not anticipate", "believes", "intends", "estimates", "projects", "potential", "scheduled", "forecast", "budget" and similar expressions or variations (including negative variations) of such words and phrases, or statements that certain actions, events or results "may", "could", "would", "might" or "will" be taken) should be considered forward-looking statements. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with the demand for uranium, adverse industry events, future legislative and regulatory developments, the ability of enCore to implement its business strategies including commencement of production at Alta Mesa in the planned time frames or at all; the expansion of operations to satellite locations, and other risks. Forward-looking statements are provided for the purpose of providing information about the current expectations, beliefs and plans of management. Although considered reasonable by management at the time of preparation, a number of important factors could cause actual results or events to differ materially from those indicated or implied by such forward-looking statements. The Company assumes no obligation to update the information in this communication, except as required by law. Additional information identifying risks and uncertainties is contained in filings by the Company with the various securities commissions which are available online at www.sec.gov and www.sedar.com.

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SOURCE enCore Energy Corp.

FAQ

How many common shares were issued by enCore Energy Corp. under the ATM Program?

enCore Energy Corp. issued a total of 495,765 common shares under the ATM Program.

What was the average share price of the common shares issued by enCore Energy Corp.?

The average share price of the common shares issued by enCore Energy Corp. was US$4.05 per share.

How much gross proceeds did enCore Energy Corp. generate from the issuance of common shares under the ATM Program?

enCore Energy Corp. generated gross proceeds of US$2,008,256.36 from the issuance of common shares under the ATM Program.

Why has enCore Energy Corp. suspended its ATM Program?

enCore Energy Corp. has suspended its ATM Program due to a remaining balance of approximately US$18.7 million for sale and a strong financial position with cash reserves and revenue from operations.

Does enCore Energy Corp. anticipate further sales under the ATM Program?

enCore Energy Corp. does not anticipate further sales under the ATM Program in light of its current cash on hand of approximately US$80 million and revenue from operations.