Westwater Resources Inc (NYSE-A:WWR) has reported continued Phase 1 construction activities at its flagship Kellyton graphite processing plant located in east-central Alabama during the first quarter, including the receipt of additional long-lead equipment components, further work on underground activities, and the construction and assembly of plant buildings.
Five processing buildings have been completed and are ready for equipment installation to begin as of May 11, 2023, the company said.
As of March 31, 2023, the last day of the first quarter, Westwater held $39.7 million in cash and had a working capital balance of $22.7 million.
The company noted it was continuing with its efforts to close a financing transaction for $150 million of private debt to cover the balance of the estimated Phase 1 capital requirements.
As of the end of the first quarter, the company said it had approximately $182 million of cash spend remaining related to Phase 1 at Kellyton.
For 1Q, the company’s net loss was $2.4 million or $0.05 per share, down from a loss of $2.8 million or $0.08 per share in the year-ago quarter.
Westwater attributed the $0.4 million decrease in net loss to higher interest income earned on its cash balance of $0.6 million, lower exploration costs, and reduced legal costs related to the company’s arbitration against the Republic of Turkey, offset by higher product development and general and administrative costs.
Along with the release of its 1Q results, the company also highlighted its recently announced joint development agreement (JDA) with electric vehicle battery manufacturer SK On.
“The JDA with SK On is another major advancement in Westwater’s graphite business, and we are extremely excited to partner with a leading global battery manufacturer like SK On,” said Westwater executive chairman Terence Cryan in a statement.
“Following the passage of the Inflation Reduction Act, many battery manufacturers are seeking to secure North American anode material from our Kellyton plant.”
Westwater is an energy technology company focused on developing battery-grade natural graphite.
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