Westwater Resources Inc (NYSE-A:WWR)) has unveiled an Initial Assessment (IA) with an economic analysis for its Coosa Graphite Deposit in Coosa County, Alabama. The Coosa Deposit is deemed a vital asset within the domestic graphite supply chain and is believed to be the largest and most advanced natural graphite deposit in the lower 48 states.
Frank Bakker, president and CEO of Westwater, emphasized the significance of the Coosa Deposit, stating: "With estimated pre-tax NPV of $229 million, estimated pre-tax internal rate of return of 26.7%, and estimated free cash flow of $714 million, the Coosa Deposit continues to be an attractive asset for Westwater and its stockholders."
The IA was based on drilling results from less than 10% of the Coosa Deposit acreage, and did not consider any potential benefit from vanadium previously discovered. Bakker asserted that the estimated pre-tax NPV is six times greater than Westwater's market cap as of December 12, 2023.
“We believe there is the potential for additional value creation at the Coosa Deposit through expansion to supply Westwater’s graphite concentrate needs for many years as well as the broader North American graphite industry that is under development," Bakker added.
"Westwater has begun a process to seek strategic investments to explore, develop, and unlock the potential additional value at the Coosa Deposit.”
The IA, completed as a Technical Report Summary (TRS), was conducted by SLR International Corporation and filed with the Securities and Exchange Commission on December 13, 2023.
The Coosa Deposit, situated in the flake graphite belt of central Alabama, spans approximately 41,965 acres. Westwater holds the mineral rights under a long-term lease, positioning the company strategically in the growing graphite industry.
Westwater is an energy technology company focused on developing battery-grade natural graphite.