Westwater Resources, Inc. Announces Results for the First Quarter Ended March 31, 2022

Company completes drilling to measure the size and extent of graphite and vanadium concentration at the Coosa Graphite Deposit near Rockford, AL

Westwater Resources, Inc. (US NYSE: WWR)an energy technology and battery-grade natural graphite development company (“Westwater” or the “Company”), today announced its first quarter results for the period ended March 31, 2022 and provided an update on its Kellyton graphite processing plant currently under construction in east central Alabama.

“During the first quarter, construction activities continued at the Kellyton site where we commenced civil and earthworks, hired a general contractor, constructed administrative offices, held a groundbreaking ceremony , continued to order equipment for the plant and submitted the application for our wastewater disposal permit,” said Chad Potter, President and CEO.

Mr Potter continued: “In March 2022, the White House invoked the Defense Production Act to encourage domestic production of critical materials, including graphite, for electric vehicle batteries and clean energy storage. to reduce our country’s dependence on imported graphite, most of which comes from China. In May 2022, the Department of Energy (DOE) released a $3.1 billion funding opportunity announcement to fund investments in the electric vehicle battery supply chain and increase domestic manufacturing of batteries. At Westwater, we are watching these developments closely to determine the benefits to Westwater and its shareholders.

“Given the current supply chain issues, management has prioritized ordering all long-lead equipment for the plant. We have assembled a world-class construction management team and we are extremely focused on managing the impact to our schedule and budget due to these global supply chain issues,” Potter concluded.

In April 2022, the Company completed its graphite and vanadium drilling activities at its Coosa graphite deposit. The exploration program was conducted on approximately 4,000 acres of the 41,900 acres for which Westwater holds mineral rights; core samples are currently being evaluated and the Company expects to prepare a report on technical resources by the end of this year.

On April 19, 2022, the Company held a groundbreaking ceremony for the Kellyton Graphite Processing Plant. Governor Kay Ivey of Alabama and other elected officials attended the company’s groundbreaking ceremony. Alabama is home to Mercedes, Honda, Hyundai, Mazda, and Toyota, and is among the nation’s top four states in the automotive industry. Westwater’s Kellyton Graphite Processing Plant is well positioned to participate in the growing electric vehicle sector.

Westwater’s patent-pending process that will be used at the Kellyton Graphite Processing Plant is safer and more environmentally friendly than any other process used in the world. The Company plans to process graphite into coated spherical purified graphite (“CSPG”), a high-performance anode material for lithium-ion batteries. CSPG also improves electrical conductivity for battery use in smart phones, computers, and other electronic devices.

“We ended the first quarter with a cash balance of $116.0 million and a working capital balance of $108.6 million. Our large working capital balance and zero debt allow us to continue to advance the construction of the Kellyton Graphite Processing Plant,” said Jeff Vigil, Vice President – ​​Finance and Chief Financial Officer. Mr. Vigil concluded, “We have incurred costs of $17.8 million since construction began on Phase I of the Kellyton Graphite Processing Plant. With our cash balance and no debt, we believe we have the cash to continue advancing our investment in the Phase I plant.

Financial Summary

(in thousands of dollars, except per share and per share amounts)

Q1 2022

Q1 2021


Net cash used in operations




Product development expenses




General and administrative expenses




Net loss




Net loss per share




Avg. Outstanding Weighted Shares




  • Net cash used in operations was $2.1 million lower for the quarter ended March 31, 2022, compared to the same period in 2021. The decrease in cash flow used in operations is the result of reduced product development expenses and arbitration fees.
  • Product development expenses for the quarter ended March 31, 2022, decreased by $1.6 million compared to the same period of 2021. Product development costs for the first quarter of 2022 were related to ongoing development and optimization costs of products ; the prior year period was impacted by expenditures related to the definitive feasibility study for Phase I of the Kellyton graphite processing facility and the company’s pilot program, both of which were completed in second half of 2021.
  • General and administrative expenses for the three months ended March 31, 2022, increased $0.1 million from the prior year period. The quarter-over-quarter increase is primarily due to higher labor costs as the Company continues to build its team and invest in sales and marketing.
  • Consolidated net loss for the three months ended March 31, 2022, was $2.8 million, or $0.08 per share, compared to a net loss of $5.4 million, or $0.19 per share, for the same period in 2021. The $2.6 million reduction in net loss was primarily due to lower product development expenses and lower arbitration costs.
  • Cash and working capital as of March 31, 2022, was $116.0 million, which is our cash balance as of December 31, 2021. Working capital as of March 31, 2022 was $108.6 million, representing a decrease of $1.7 million compared to December 31, 2021. The decrease in working capital was primarily the result of costs incurred during the quarter of $14.5 million related to the Kellyton graphite processing plant and cash operating expenses of $2.7 million; partially offset by 7.4 million common shares sold for net proceeds of $15.6 million under our controlled equity offeringSM Sales contract with Cantor Fitzgerald & Co.

Conference call

Management will host a conference call to discuss these results on May 11, 2022 at 11:00 a.m. EDT (9:00 a.m. Mountain).

The call numbers are:

TF Canada/US: 1-800-319-4610

International Toll: +1-604-638-5340

Callers should dial the number 5-10 minutes before the scheduled start time and simply ask to join the call.

A live webcast of the conference call will also be available at www.westwaterresources.net

To replay the call:

TF Canada/US: 1-855-669-9658

International toll: +1-412-317-0088

Replay access code: 8767

About Westwater Resources, Inc.

Westwater Resources, Inc. (NYSE American: WWR), an energy technology company, is focused on the development of battery-grade natural graphite. The Company’s principal project is the Kellyton Graphite Processing Plant which is under construction in east central Alabama. Additionally, the Company’s Coosa Graphite Deposit is the most advanced natural flake graphite deposit in the contiguous United States – and located on 41,900 acres (~17,000 hectares) in Coosa County, Alabama. For more information, visit www.westwaterresources.net.

Caution Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as “expects”, “estimates”, “plans”, “anticipates”, “believes”, “could”, “planned” and other similar words. Forward-looking statements include, among other things, statements regarding the construction and operation of the Company’s Kellyton graphite processing facility, the Company’s Coosa graphite deposit, and associated costs and schedules. The Company cautions that certain factors could cause actual results to differ materially from the forward-looking information provided. Readers are cautioned not to place undue reliance on such forward-looking information, which is not a guarantee of future performance and is subject to a number of uncertainties and other factors, many of which are beyond the Company’s control; therefore, there can be no assurance that these suggested results will be achieved. The following factors, in addition to those discussed in Westwater’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and subsequent securities filings, could cause actual results to differ materially from management, as suggested by this forward-looking information: (a) the spot price and long-term contract price of graphite (both flake graphite feedstock and purified graphite products) and vanadium, as well as global graphite and vanadium supply and demand; (b) the effects, extent and timing of the entry of additional competition into the markets in which we operate; (c) the ability to obtain contracts with customers; (d) available sources and transportation of graphite feedstocks; (e) the ability to control costs and avoid cost and schedule overruns during the development, construction and operation of the Kellyton Graphite Processing Facility; (f) the ability to construct and operate the Kellyton Graphite Processing Plant in accordance with permit and license requirements and tax credit and other incentive requirements; (g) government regulation of the mining and manufacturing industries in the United States; (h) geological, processing, regulatory, legal or other unforeseen problems we may encounter; (i) the results of our exploration activities at the Coosa graphite deposit and the possibility that future exploration results may be materially less promising than the initial exploration results; (j) any discovery of graphite or vanadium at the Coosa Graphite Deposit not being in a sufficiently high concentration to make it economic to extract the metals; (k) our ability to fund growth plans; (l) the potential effects of the continuation of the COVID-19 pandemic; (m) pending or new litigation or arbitration; and (n) our ability to maintain and timely receive mining, manufacturing and other permits from regulatory agencies.