Westwater Resources announces 2024 business, financial updates

By Editor | April 4, 2025 |

Company reports 10% reduction in estimated construction costs of Kellyton plant

Special to the News

Westwater Resources Inc. is pleased to announce its results for the year ended December 31, 2024, and to provide business and financial updates.

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 off-take agreement for CSPG with Fiat Chrysler Automobiles (FCA).
With these off-take 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 in the estimated capital cost of Phase I. The revised estimate of $245 million includes an 11% contingency and 2% 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 in capital expenditures since inception of the project.
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 debt financing to complete Phase I construction of the Kellyton Graphite Plant.

“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 chair. “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 for a $150 million secured debt facility, which would be used to complete the construction of Phase I of the Kellyton Graphite Plant.

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 Alabama, completing technical due diligence using an independent third-party engineering firm, completing legal and insurance due diligence using additional firms, and working with legal counsel to prepare and negotiate loan documents.

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 U.S., EU, Canada, Mexico, and China have created general market uncertainty in the capital markets, which has negatively impacted the timing, and increased the number of lenders needed to complete the syndication of the proposed debt facility. The company remains focused on completing the debt facility and will update investors as appropriate.

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

Net cash used in operations decreased $5.6 million in 2024 compared to 2023 primarily due to $3.6 million of cash received for sales of raw material inventory, a decrease in raw material inventory purchases of $2.4 million, and a decrease in third-party services related to product development of $1.4 million. These changes in operating cash flows were partially offset by the $3.1 million settlement of the Company’s arbitration against the Republic of Turkey in the fourth quarter of 2023, and lower interest income of $1.1 million in 2024 compared to 2023.
Net cash used in investing activities decreased $53.7 million during 2024 compared to 2023. The decrease was a result of lower capital expenditures as the Company reduced construction activity while seeking debt financing to fund the remaining construction of Phase I of the Kellyton Graphite Plant.
Net cash provided by financing activities decreased $1.5 million during 2024, compared to 2023, due to lower cash proceeds related to sales of common stock pursuant to the Company’s equity financing facilities.
Product development expenses for 2024 decreased by $1.8 million compared to 2023 primarily due to the Company utilizing its in-house R&D Lab for sample processing, resulting in lower costs for each batch of samples produced. Product development expenses for the year ended December 31, 2024, related primarily to sample production of battery-grade natural graphite products for evaluation by potential customers.
General and administrative expenses increased $0.2 million during 2024 compared to 2023, due to higher stock compensation expense of $0.5 million resulting from an increase in the number of stock awards granted in 2024, and stock award forfeitures that reduced stock compensation expense in 2023.
Consolidated net loss was $7 million, or $0.22 per share, for 2024 compared to a consolidated net loss of $7.8 million, or $0.15 per share, in 2023. The increase in the Company’s net loss from continuing operations in 2024, was due primarily to the $3.1 million gain on the settlement with the Republic of Turkey, and the $1.2 million write-off of accrued uranium royalties, both of which occurred in 2023. Additionally, for the year ended December 31, 2024, Westwater recognized a $1.5 million loss on the sale of graphite concentrate and had $1.1 million less interest income on our investment account. These increases in net loss were partially offset by $1.8 million less product development expenses.

Going Concern Audit Opinion

Pursuant to Section 610(b) of the NYSE American Company Guide, Westwater 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.

About Westwater Resources Inc.

Westwater Resources Inc., 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 Alabama. In addition, the company’s Coosa Graphite Deposit is the most advanced natural flake graphite deposit in the contiguous United States and located across 41,965 acres (approximately 17,000 hectares) in Coosa County. For more information visit www.westwaterresources.net.

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