Westwater Resources Announces 2024 Business and Financial Updates
Westwater Resources (NYSE: WWR) announced significant developments in its natural graphite business for 2024. The company secured two major off-take agreements: with SK On and Fiat Chrysler Automobiles, committing 100% of Phase I production capacity and partially committing Phase II capacity of its Kellyton Graphite Plant.
The company achieved a $26 million reduction in estimated Phase I capital costs, now at $245 million. Construction progress includes completion of a qualification line capable of producing 1 metric tonne per day of Coated Spherical Purified Graphite (CSPG). Capital expenditures for Phase I reached $123 million since project inception.
Financial results show a consolidated net loss of $12.7 million ($0.22 per share) in 2024, compared to $7.8 million in 2023. The company is working with Cantor Fitzgerald to finalize a $150 million debt financing syndication for completing Phase I construction, though recent federal policy decisions have created market uncertainty affecting timing.
Westwater Resources (NYSE: WWR) ha annunciato sviluppi significativi nel suo business della grafite naturale per il 2024. L'azienda ha ottenuto due importanti accordi di approvvigionamento: con SK On e Fiat Chrysler Automobiles, impegnandosi per il 100% della capacità di produzione della Fase I e impegnando parzialmente la capacità della Fase II del suo impianto di grafite di Kellyton.
L'azienda ha raggiunto una riduzione di $26 milioni nei costi di capitale stimati per la Fase I, ora fissati a $245 milioni. I progressi nella costruzione includono il completamento di una linea di qualificazione in grado di produrre 1 tonnellata metrica al giorno di Grafite Purificata Sferica Rivestita (CSPG). Le spese in conto capitale per la Fase I hanno raggiunto $123 milioni dall'inizio del progetto.
I risultati finanziari mostrano una perdita netta consolidata di $12.7 milioni ($0.22 per azione) nel 2024, rispetto a $7.8 milioni nel 2023. L'azienda sta collaborando con Cantor Fitzgerald per finalizzare una sindacazione di finanziamento del debito di $150 milioni per completare la costruzione della Fase I, sebbene recenti decisioni politiche federali abbiano creato incertezze di mercato che influenzano i tempi.
Westwater Resources (NYSE: WWR) anunció desarrollos significativos en su negocio de grafito natural para 2024. La empresa aseguró dos importantes acuerdos de compra: con SK On y Fiat Chrysler Automobiles, comprometiendo el 100% de la capacidad de producción de la Fase I y comprometiendo parcialmente la capacidad de la Fase II de su Planta de Grafito de Kellyton.
La empresa logró una reducción de $26 millones en los costos de capital estimados de la Fase I, que ahora ascienden a $245 millones. El progreso de la construcción incluye la finalización de una línea de calificación capaz de producir 1 tonelada métrica por día de Grafito Esférico Purificado Recubierto (CSPG). Los gastos de capital para la Fase I alcanzaron los $123 millones desde el inicio del proyecto.
Los resultados financieros muestran una pérdida neta consolidada de $12.7 millones ($0.22 por acción) en 2024, en comparación con $7.8 millones en 2023. La empresa está trabajando con Cantor Fitzgerald para finalizar una sindicación de financiamiento de deuda de $150 millones para completar la construcción de la Fase I, aunque recientes decisiones políticas federales han creado incertidumbre en el mercado que afecta los plazos.
Westwater Resources (NYSE: WWR)는 2024년 자연 흑연 사업에서 중요한 발전을 발표했습니다. 이 회사는 SK On 및 Fiat Chrysler Automobiles와 두 개의 주요 구매 계약을 체결하여 1단계 생산 능력의 100%를 약속하고 Kellyton 그래파이트 공장의 2단계 생산 능력을 부분적으로 약속했습니다.
회사는 1단계 자본 비용을 2600만 달러 절감하여 현재 2억 4500만 달러에 도달했습니다. 건설 진행 상황에는 하루 1톤의 코팅된 구형 정제 흑연(CSPG)을 생산할 수 있는 자격 라인의 완료가 포함됩니다. 1단계에 대한 자본 지출은 프로젝트 시작 이후 1억 2300만 달러에 도달했습니다.
재무 결과는 2024년에 1270만 달러의 순손실($0.22 주당)을 기록했으며, 이는 2023년의 780만 달러에 비해 증가한 수치입니다. 이 회사는 1단계 건설을 완료하기 위해 1억 5000만 달러의 채무 금융 조합을 마무리하기 위해 Cantor Fitzgerald와 협력하고 있지만, 최근의 연방 정책 결정으로 인해 시장의 불확실성이 발생하여 시기에 영향을 미치고 있습니다.
Westwater Resources (NYSE: WWR) a annoncé des développements significatifs dans son activité de graphite naturel pour 2024. L'entreprise a sécurisé deux grands contrats d'approvisionnement : avec SK On et Fiat Chrysler Automobiles, s'engageant à 100 % de la capacité de production de la Phase I et en s'engageant partiellement sur la capacité de la Phase II de son usine de graphite de Kellyton.
L'entreprise a réalisé une réduction de 26 millions de dollars des coûts de capital estimés de la Phase I, désormais fixés à 245 millions de dollars. Les progrès de la construction comprennent l'achèvement d'une ligne de qualification capable de produire 1 tonne métrique par jour de graphite purifié sphérique revêtu (CSPG). Les dépenses en capital pour la Phase I ont atteint 123 millions de dollars depuis le début du projet.
Les résultats financiers montrent une perte nette consolidée de 12,7 millions de dollars (0,22 dollar par action) en 2024, contre 7,8 millions de dollars en 2023. L'entreprise travaille avec Cantor Fitzgerald pour finaliser une syndication de financement de dette de 150 millions de dollars pour achever la construction de la Phase I, bien que des décisions politiques fédérales récentes aient créé une incertitude sur le marché affectant les délais.
Westwater Resources (NYSE: WWR) hat bedeutende Entwicklungen in seinem Geschäft mit natürlichem Graphit für 2024 angekündigt. Das Unternehmen hat zwei große Abnahmeverträge mit SK On und Fiat Chrysler Automobiles abgeschlossen, die 100 % der Produktionskapazität der Phase I und teilweise die Kapazität der Phase II seiner Kellyton-Graphitfabrik sichern.
Das Unternehmen hat eine Reduzierung der geschätzten Investitionskosten der Phase I um 26 Millionen Dollar erreicht, die nun bei 245 Millionen Dollar liegen. Der Baufortschritt umfasst den Abschluss einer Qualifikationslinie, die in der Lage ist, 1 metrische Tonne pro Tag von beschichtetem sphärischem gereinigtem Graphit (CSPG) zu produzieren. Die Investitionsausgaben für Phase I beliefen sich seit Projektbeginn auf 123 Millionen Dollar.
Die finanziellen Ergebnisse zeigen einen konsolidierten Nettoverlust von 12,7 Millionen Dollar (0,22 Dollar pro Aktie) im Jahr 2024, verglichen mit 7,8 Millionen Dollar im Jahr 2023. Das Unternehmen arbeitet mit Cantor Fitzgerald zusammen, um eine Syndizierung von Schuldenfinanzierungen in Höhe von 150 Millionen Dollar abzuschließen, um den Bau der Phase I abzuschließen, obwohl jüngste Entscheidungen der Bundesregierung Unsicherheiten auf dem Markt geschaffen haben, die den Zeitplan beeinflussen.
- Secured 100% off-take agreements for Phase I production with SK On and Fiat Chrysler
- Reduced Phase I construction costs by $26 million
- Completed qualification line capable of 1 metric tonne/day CSPG production
- Received investment committee approval from lead lender for $150M debt facility
- Decreased net cash used in operations by $5.6 million compared to 2023
- Reduced product development expenses by $1.8 million
- Increased net loss to $12.7 million in 2024 from $7.8 million in 2023
- Received going concern qualification in audit opinion
- Delayed debt financing due to market uncertainty from federal policy decisions
- Recognized $1.5 million loss on graphite concentrate sales
- Decreased financing cash flows by $1.5 million due to lower stock sales proceeds
Insights
Westwater Resources presents a contradictory investment case with important commercial progress counterbalanced by significant financial challenges. The company has secured offtake agreements with SK On and Fiat Chrysler, effectively committing 100% of Phase I CSPG production - a crucial commercial validation from major automotive players.
The
However, the financial deterioration is substantial. The net loss widened to
The critical financing gap presents the most immediate risk. While Westwater has received investment committee approval from a lead lender for a
The reduction in construction activity while seeking financing indicates remaining capital resources. Without successful debt syndication, Westwater faces a precarious position where continued delays could impact supplier relationships, construction timelines, and potentially jeopardize the company's ability to fulfill its offtake commitments.
2024 Key Highlights
During 2024, Westwater achieved critical milestones and achievements related to its planned natural graphite business, notably:
- On February 5, 2024, Westwater announced its off-take agreement with SK On for Coated Spherical Purified Graphite (“CSPG”).
- On July 18, 2024, Westwater announced its offtake agreement for CSPG with Fiat Chrysler Automobiles (“FCA”).
-
With these Offtake Agreements in place, the Company has committed to sell
100% of its anticipated Phase I production capacity and partially committed a portion of the anticipated Phase II production capacity from its Kellyton Graphite Plant. -
During 2024, Westwater continued to evaluate its plant design, construction schedule and related costs, resulting in a decrease of
$26 million $245 million 11% contingency and2% escalation factor on the remaining uncommitted spend. - As of December 31, 2024, Westwater has completed construction of its qualification line at the Kellyton Graphite Plant to purify and coat larger bulk samples of CSPG for customer evaluations. The qualification line is designed to produce approximately 1 metric tonne per day of CSPG and the samples produced on it will be representative of CSPG mass production at the plant.
-
During 2024, Westwater continued Phase I construction at the Kellyton Graphite Plant deploying approximately
$123 million -
Westwater received investment committee approval from the lead lender (a global financial institution), and the Company now is working with its investment banker, Cantor Fitzgerald, to finalize the overall syndication and closing of the
$150 million
“Recent policy decisions by the federal government have created uncertainty in the capital markets, which has negatively impacted the timing and increased the number of lenders needed to complete the syndication of the debt financing to complete Phase I construction of the Kellyton Graphite Plant,” said Terence J. Cryan, Westwater’s Executive Chairman. “However, while the debt financing is taking longer than we originally estimated, the fundamentals of our business remain solid and customer engagement is active.”
Construction Financing Update
On September 4, 2024, the Company announced that it had executed a term sheet with the lead, or arranging, lender (a global financial institution) for a
During the fourth quarter, Westwater continued to move through the due diligence and loan documentation processes related to the transaction. Those processes included hosting lenders at the Kellyton Graphite Plant site in
In January of 2025, Westwater announced that it had received investment committee approval from the lead lender and is working to finalize the overall syndication of the debt facility. Recently announced policy decisions by the federal government, primarily tariffs, by the
The progression from signing the term sheet to loan closing is subject to customary agreement on completing the syndication, final due diligence and approval by other potential lenders in the syndication, and final loan conditions and terms. No assurance can be given that the Company will ultimately enter into the secured debt facility, or that financing will be available in amounts sufficient to meet its needs, or on terms acceptable to the Company
Financial Summary for The Year Ended December 31, 2024
($ in thousands, Except Share and Per Share Amounts) |
2024 |
2023 |
Variance |
Net Cash Used in Operations |
|
|
( |
Net Cash Used in Investing Activities |
|
|
( |
Net Cash Provided by Financing Activities |
|
|
( |
Product Development Expenses |
|
|
( |
General and Administrative Expenses |
|
|
|
Net Loss |
|
|
|
Net Loss Per Share |
|
|
( |
Avg. Weighted Shares Outstanding |
58,538,139 |
52,037,463 |
|
-
Net cash used in operations decreased
$5.6 million $3.6 million $2.4 million $1.4 million $3.1 million Republic of Turkey in the fourth quarter of 2023, and lower interest income of$1.1 million -
Net cash used in investing activities decreased
$53.7 million -
Net cash provided by financing activities decreased
$1.5 million -
Product development expenses for 2024 decreased by
$1.8 million -
General and administrative expenses increased
$0.2 million $0.5 million -
Consolidated net loss was
$12.7 million $0.22 $7.8 million $0.15 $3.1 million Republic of Turkey , and the$1.2 million $1.5 million $1.1 million $1.8 million
Going Concern Audit Opinion
Pursuant to Section 610(b) of the NYSE American Company Guide, the Company notes that the audit opinion provided by the Company's independent public accounting firm relating to the Company's audited consolidated financial statements for the year ended December 31, 2024, included a going concern qualification. The financial statements with that opinion were included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, which was filed with the Securities and Exchange Commission on March 20, 2025.
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 Plant that is under construction in east-central
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 “anticipated,” “partially,” “evaluate,” “estimated,” “contingency,” escalation,” “approximately,” “representative,” “uncertainty,” and other similar words. Forward looking statements include, among other things, statements concerning: the off-take agreements with SK On and FCA ; Westwater’s future sales of CSPG products to SK On and FCA, including the amounts, timing, and types of products included within those sales; possible off-take agreements with other customers; potential debt financing arrangements, including due diligence processes, terms and conditions in loan documents, lenders included in the syndication, and timing for closing; the anticipated annual production from Phase I of the Kellyton Graphite Plan, including the timing for commencing production; the anticipated economic results from the Initial Assessment with Economic Analysis related to its Coosa Graphite Deposit; the construction and operation of the Kellyton Graphite Plant, the Company’s Coosa Graphite Deposit and the costs, schedules, production and economic projections associated with them; and policy decisions and tariffs by the federal government including their impact on capital markets in general and our business specifically. The Company cautions that there are 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, 2024, 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) our ability to obtain contracts or other agreements 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 Plant and the Coosa Graphite Deposit; (f) the ability to construct and operate the Kellyton Graphite Plant and the Coosa Graphite Deposit in accordance with the requirements of permits and licenses and the requirements of tax credits and other incentives; (g) effects of inflation, including labor shortages and supply chain disruptions; (h) rising interest rates and the associated impact on the availability and cost of financing sources; (i) the availability and supply of equipment and materials needed to construct the Kellyton Graphite Plant; (j) stock price volatility; (k) government regulation of and tariffs associated with the mining and manufacturing industries in
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Westwater Resources, Inc.
Email: Info@WestwaterResources.net
Investor Relations
Email: Investorrelations@westwaterresources.net
Source: Westwater Resources, Inc.
FAQ
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How much did WWR reduce its Phase I Kellyton Graphite Plant construction costs in 2024?
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What was Westwater Resources' (WWR) net loss for the year 2024?
How much debt financing is WWR seeking to complete Phase I construction?
