Westwater Resources (WWR) Q2 2025 earnings summary

Executive summary

• Advanced construction at the Kellyton Graphite Plant, with $124.4 million spent of the $245 million Phase I budget as of June 30, 2025, and 85% of equipment received and key systems installed.

• Commissioned two commercial-scale micronizing and shaping mills, transitioned to the Alabama power grid, and continued operation of the qualification line, producing over one metric ton of CSPG samples for customer trials.

• Secured offtake agreements for 100% of anticipated Phase I production and partial Phase II, with strong customer interest driven by tariffs and supply chain concerns.

• Maintained focus on execution, transparency, and long-term value creation amid strong policy and market tailwinds.

• Ongoing strategic review for Coosa Graphite Deposit to identify investment partners, with further advancement expected after Kellyton financing closes.

Financial highlights

• Ended the quarter with $6.7 million in cash, including proceeds from a $5 million convertible note issued in June; cash increased to $12.5 million by August 11, 2025, after an additional $5 million note.

• Net loss for Q2 2025 was $3.9 million ($0.05/share), slightly higher than Q2 2024, mainly due to higher stock compensation and note issuance costs.

• Operating cash outflow for six months ended June 30, 2025: $4.7 million, a $0.5 million improvement year-over-year.

• Net cash provided by financing activities for six months ended June 30, 2025: $11.9 million, up from $0.7 million in 2024, driven by convertible notes and equity sales.

• No revenue from operations since 2009; sales of raw material inventory in 2025 were not recognized as revenue under ASC 606.

Outlook and guidance

• Construction at Kellyton Graphite Plant will continue at a measured pace until additional funding is secured; update on timing to be provided upon financing.

• Focused on completing Phase I financing and moving toward commercial production and operational readiness.

• Management expects continued cash losses until Kellyton operations commence; additional financing is critical to complete Phase I.

• Strong customer engagement and expectations to finalize a non-Chinese backup feedstock supplier in the near term.

• Ongoing efforts to syndicate a $150 million secured debt facility and pursue an EXIM Bank loan for project funding.