NASDAQ:EU
TSXV:EU
www.encoreuranium.com
DALLAS, March 3,
2025 /CNW/ - enCore Energy
Corp. (NASDAQ: EU) (TSXV: EU) (the "Company" or "enCore"),
America's Clean Energy CompanyTM, today announced its
financial and operational results for the fiscal year ended
December 31, 2024. The Company
expects to file its Annual Report on Form 10-K ("Form 10-K") with
the U.S. Securities and Exchange Commission ("SEC") later today,
which includes the Company's audited consolidated financial
statements, related notes, and management's discussion and analysis
("MD&A") for fiscal year 2024, and strategic milestones and
outlook for 2025.
Financial Reporting Status Change Commentary:
As of January 1, 2025, the
Company's reporting status with the SEC changed from a foreign
private issuer to a U.S. domestic issuer. As a result, the Company
transitioned from International Financial Reporting Standards
("IFRS") to U.S. Generally Accepted Accounting Principles ("U.S.
GAAP") for all its financial reporting requirements.
While this transition resulted in differences in financial
reporting under U.S. GAAP compared to IFRS, it also aligns the
Company's accounting treatment with U.S. reporting standards. By
adjusting the carrying value of certain assets under U.S. GAAP, the
Company expects a lower depreciation base going forward, which may
positively impact reported earnings by reducing future non-cash
expenses. The Company is an Exploration Stage Issuer, as it has not
established proven or probable Mineral Reserves as defined under
Subpart 1300 of Regulation S-K of the Exchange Act of 1934 ("S-K
1300").
Financial Highlights for Fiscal Year 2024 and Future
Outlook:
- Revenue: enCore reported total revenue of $58 million, reflecting a 163 percent increase
from the year ended December 31,
2023, primarily due to increased uranium extraction. In
2024, sales were made from a combination of extracted and purchased
pounds, while in 2023 all sales were from purchased pounds.
- Earnings Per Share: The Company recorded a loss per
share of $0.34 for the year ended
December 31, 2024, compared to a loss
of $0.18 per share for the year ended
December 31, 2023, the increase being
primarily due to:
-
- Increased exploration and extraction activities in preparation
for the ramp-up of the Company's second ISR plant in late 2024 and
the planned increase in well production in early 2025.
- The cost of converting to a large accelerated filer required to
be in compliance with 404b of the
Sarbanes Oxley Act of 2002, which included expenses of
approximately $3 million.
- Net Income/Loss: The Company reported a net loss of
$61.3 million for the year ended
December 31, 2024, compared to a
$25.6 million net loss for the year
ended December 31, 2023. The
inability to capitalize certain exploratory and development costs
under U.S. GAAP which would have been capitalized under IFRS
impacted both years, totaling $15
million for 2024, and $8
million for 2023.
- Balance Sheet Strength: enCore ended the year with
$39.7 million in cash and cash
equivalents.
Operational Achievements and Milestones:
- Uranium Sales: In 2024, enCore completed eight uranium
sales to third parties totaling 720,000 pounds
U3O8 at an average sales price of
$81.02 per pound
U3O8, not including converter and transaction
costs. The Company used 580,000 pounds sourced from purchased
uranium, and 140,000 pounds sourced from uranium extracted at the
Rosita Central Processing Plant ("Rosita CPP") and the Alta Mesa
Central Processing Plant ("Alta Mesa CPP").
- Uranium Extraction Results: In 2024, for the Rosita and
Alta Mesa CPPs combined, 288,589 pounds U3O8
were captured on ion exchange ("IX") resin, the largest amount of
any U.S. producer in 2024. The cost of extraction can be seen in
the non-GAAP table in the Appendix.
- Joint Venture Partner: In February 2024, enCore announced a joint venture
("JV") to develop and operate Alta
Mesa with Boss Energy Ltd. ("Boss"). The JV is 70 percent
owned by enCore and 30 percent owned by Boss, with enCore remaining
the project manager. Through Nov. 30,
2024, 35,181 pounds U3O8 from the JV
were transferred to Boss, pursuant to the JV.
- Uranium Inventories: During 2024, the Company acquired
825,000 pounds U3O8. As of December 31, 2024, the Company held 358,408
pounds U3O8 as inventory.
- Uranium Central Processing Plants: In 2024, enCore
focused on starting up its uranium recovery operations at the
Rosita CPP, which began operations in November 2023; and at the Alta Mesa CPP which
commenced operations in June 2024.
The Company is proud of the team's ability to bring these two
extraction plants online.
- Uranium Contracting: Throughout 2024, enCore created a
balanced uranium sales agreement portfolio to provide multiple
pricing structures to support future market changes and production
plans. The Company has executed twelve uranium sales agreements to
supply uranium to nuclear power plants in the United States and one legacy uranium sales
agreement with a uranium trading company. These agreements
represent various delivery periods from 2024 through 2034. enCore's
uranium sales agreement portfolio is a mix of market related
pricing, hybrid base price and market related pricing, base
escalated pricing, and fixed prices. As of December 31, 2024, the Company had 8.30 million
pounds U3O8 in committed uranium sales from
2025 through 2033. Six of the current contracts provide the
optionality to add an additional 2.2 million pounds
U3O8 through 2033.
- Sustainability: In October
2024, enCore issued its inaugural Sustainability Report
detailing the Company's environmental, social responsibility, and
governance for its South Texas
operations. The report also set forth key performance indicators
that establish goals for continuing improvement.
2025 Outlook and Future Planned Activities:
enCore remains committed to advancing extraction-ready projects,
deploying capital responsibly, and strengthening its team to
support the continued growth of its ISR uranium production capacity
to meet the growing demand for a secure domestic uranium
supply.
- Focusing on Continued Extraction Growth: enCore is
focused on installing wellfield patterns to expand uranium
extraction in South Texas. Since
the start of 2024, the Company has increased the number of drilling
rigs to 17 operating in South
Texas. The increased drilling rig count will alleviate
bottlenecks in wellfield pattern replacement rates observed earlier
in the year that delayed expansion of uranium extraction. The Upper
Spring Creek Project will provide uranium-bearing resin to the
Rosita CPP following final permitting expected to be complete in
2025. The Company also made substantial progress at its
Dewey Terrace and Dewey-Burdock
Projects along the Wyoming-South
Dakota border, as well as the Gas Hills Project in
Wyoming. These efforts align with
the Company's strategy to advance extraction-ready projects and
scale its ISR uranium recovery capacity.
- Regulatory Approvals: enCore continues to advance key
permitting and licensing milestones for its projects in
South Texas, South Dakota and Wyoming.
On March 2, 2025, the board of
directors of enCore appointed Robert
Willette, the current Chief Legal Officer, as Acting Chief
Executive Officer, effectively immediately. Mr. Willette succeeds
Paul Goranson, who is no longer
serving as enCore's Chief Executive Officer or as a member of the
board of directors.
Investor Information
enCore's full financial statements, including MD&A, are
available in the Company's Annual Report on Form 10-K, to be filed
with the SEC. The report can be accessed at www.sec.gov and on
enCore's investor relations page at www.encoreuranium.com.
Technical Disclosure and Qualified Person
John M. Seeley, Ph.D., P.G.,
C.P.G., enCore's Manager of Geology and Exploration, and a
Qualified Person under Canadian National Instrument 43-101 and S-K
1300, has reviewed and approved the technical disclosure in this
news release on behalf of the Company.
About enCore Energy Corp.
enCore Energy Corp., America's Clean Energy Company™, is
committed to providing clean, reliable, and affordable fuel for
nuclear energy as the only United
States uranium producer with multiple extraction facilities
in operation. The enCore team is led by industry experts with
extensive knowledge and experience in all aspects of In-Situ
Recovery 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.
Following up on enCore's demonstrated success in South Texas, future projects in enCore's
pipeline include the Dewey-Burdock Project in South Dakota and the Gas Hills Project in
Wyoming. The Company holds other
non-core assets including significant New
Mexico resources and conventional projects in Arizona, Utah, and Wyoming along with proprietary databases.
enCore is committed to working with local communities and
Indigenous governments to create positive impact from corporate
developments.
Learn more at www.encoreuranium.com.
Cautionary Note Regarding Forward Looking
Statements:
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release contains "forward-looking statements"
within the meaning of the Private Securities Litigation Reform Act
of 1995 and Canadian securities laws that are based on management's
current expectations, assumptions, and beliefs. Forward-looking
statements can often be identified by such words as "expects",
"plans", "believes", "intends", "continue", "potential", "remains",
and similar expressions or variations (including negative
variations) of such words and phrases, or statements that certain
actions, events or results "may", "could", or "will" be
taken.
Forward-looking statements and information that are not
statements of historical fact include, but are not limited to, any
information relating to statements regarding future or potential
extraction, and any other statements regarding future expectations,
beliefs, goals or prospects, statements regarding the success of
current and future ISR operations, including projects in our
pipeline, our development plans, our future extraction plans and
associated economics, including the assumptions underlying the
economic analyses, the Company's expectations for a lower
deprecation base going forward and the impact to reported earnings,
the belief that 2025 will demonstrate improvements in efficiency,
timing and overall productivity, that the projects will be a
reliable supplier of fuel, the expected timing of a commercial
operation, estimated mineral resources and financials, expected
major plant aspects that the projects will be successfully operable
ISR operations, the ability to meet the increasing demand for
clean, reliable nuclear energy, the ability to complete and
expected timing of completion of permitting and licensing and our
commitment to working with local communities and indigenous
governments to create positive impact from corporate developments
should be considered forward looking statements. All such
forward-looking statements are not guarantees of future results and
forward-looking statements are subject to important risks and
uncertainties, many of which are beyond the Company's ability to
control or predict, that could cause actual results to differ
materially from those expressed in any forward looking statement,
including those described in greater detail in our filings with the
SEC and on SEDAR+, particularly those described in our Annual
Report on Form 10-K, annual information from and MD&A.
Forward-looking statements necessarily involve known and unknown
risks, including, without limitation, risks associated with
assumptions regarding project economics; discount rates;
expenditures and the current cost environment; timing and schedule
of the projects, general economic conditions; adverse industry
events; future legislative and regulatory developments; the ability
of enCore to implement its business strategies; and other risks. A
number of important factors could cause actual results or events to
differ materially from those indicated or implied by such
forward-looking statements, including without limitation
exploration and development risks, changes in commodity prices,
access to skilled personnel, the results of exploration and
development activities; extraction risks; uninsured risks;
regulatory risks; defects in title; the availability of materials
and equipment, timeliness of government approvals and unanticipated
environmental impacts on operations; litigation risks; risks posed
by the economic and political environments in which the Company
operates and intends to operate; increased competition; assumptions
regarding market trends and the expected demand and desires for the
Company's products and proposed products; reliance on industry
equipment manufacturers, suppliers and others; the failure to
adequately protect intellectual property; the failure to adequately
manage future growth; adverse market conditions, the failure to
satisfy ongoing regulatory requirements and factors relating to
forward looking statements listed above. Should one or more of
these risks materialize, or should assumptions underlying the
forward-looking statements prove incorrect, actual results may vary
materially from those described herein as intended, planned,
anticipated, believed, estimated, or expected. 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.sedarplus.ca.
Forward-looking statements are provided for the purpose of
providing information about the current expectations, beliefs and
plans of management. Such statements may not be appropriate for
other purposes and readers should not place undue reliance on these
forward-looking statements, that speak only as of the date hereof,
as there can be no assurance that the plans, intentions or
expectations upon which they are based will occur. Such
information, although considered reasonable by management at the
time of preparation, may prove to be incorrect and actual results
may differ materially from those anticipated. Forward-looking
statements contained in this news release are expressly qualified
by this cautionary statement.
Non-GAAP Financial Measures
This press release contains non-GAAP financial measures. A
"non-GAAP financial measure" is defined as a numerical measure of a
company's financial performance that excludes or includes amounts
so as to be different than the most directly comparable measure
calculated and presented in accordance with GAAP in the statements
of income, balance sheets or statements of cash flows of the
Company. The non-GAAP financial measures used within this press
release are total cost of extracted pounds, uranium cost per
extracted pound, total cost of extracted inventory and uranium cost
per extracted pound in inventory. Total cost of extracted pounds is
the cost of sales less the cost of sales of purchased goods, which
includes the aggregate purchase price of uranium sourced from
purchased uranium. Uranium cost per extracted pound is the total
cost of extracted pounds divided by the pounds of uranium extracted
during the period. Total cost of extracted inventory is inventory
less purchased uranium inventories. Uranium cost per pound of
extracted inventory is the total cost of extracted inventory
divided by pounds of extracted inventory. We consider the total
cost of extracted pounds, uranium cost per extracted pound total
cost of extracted inventory and uranium cost per pound of extracted
inventory, including allocations of cash and non-cash costs, in
evaluating the efficiency and cost-effectiveness of the Company's
extraction operations and overall cost structure.
Appendix: Tables
Non-GAAP measures for 2024 uranium product
sold and inventory held on December 31,
2024
Table 1.1 - Non-GAAP Measures for 2024
Uranium Product Sales
Table 1.2 - Non-GAAP Measures for Inventory
Held by the Company on December 31,
2024.
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SOURCE enCore Energy Corp.
