enCore Energy Reports Q1 2025 Financial Results Highlighted by Reduced Uranium Extraction Costs
- Uranium sales of 290,000 pounds at $62.89 per pound, generating significant revenue
- Efficient production costs at $36.11 per pound, well below sales price
- Strong working capital position of $35.7 million
- Healthy inventory of 153,058 pounds at competitive cost of $40.39 per pound
- Net loss increased to $0.13 per share from $0.04 in Q1 2024
- Negative operating cash flow of $7.7 million due to uranium loan repayment
- $9.0 million mark-to-market loss on marketable securities
- Cost of delivered pounds ($62.97) slightly exceeded sales price ($62.89)
Insights
enCore's Q1 shows efficient uranium production at $36.11/lb, but faces $9M securities loss leading to increased net loss despite favorable extraction costs.
enCore Energy's Q1 2025 results reveal a company navigating operational improvements amid market challenges. The headline extraction cost of $36.11 per pound for 130,015 pounds of uranium demonstrates efficient production capabilities significantly below their average sales price of $62.89 per pound across 290,000 pounds delivered. This positive extraction-to-sales margin indicates healthy unit economics at their production facilities.
However, the financial performance shows some concerning trends. The company reported a net loss of $0.13 per share, a substantial increase from $0.04 per share in Q1 2024. This deterioration stems primarily from two factors: increased wellfield installation expenses and a substantial $9.0 million mark-to-market loss on securities holdings. The latter suggests vulnerability to broader market conditions beyond operational control.
The company's inventory position appears strategic with 153,058 pounds at $40.39 per pound average cost, positioning them well for future deliveries if uranium prices remain above these levels. The inventory mix shows they're maintaining more extracted uranium (124,347 pounds at $35.91) versus purchased (28,711 pounds at $59.80), intelligently leveraging their cost advantage.
Cash position deserves attention - the $12.2 million uranium loan repayment resulted in negative operating cash flow of $7.7 million. While the company maintains $29.7 million in cash with working capital of $35.7 million, this cash burn rate could become problematic if sustained over multiple quarters without improvement in operational cash generation.
The joint venture structure at Alta Mesa Project (shown by the 29,126 pounds transferred to Boss Energy) adds complexity to evaluating the company's true production capacity and cost structure.
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www.encoreuranium.com
Highlights for Three months ended March 31, 2025 Include:
- Total of 130,015 pounds of uranium ("U3O8") extracted and processed at a cost of
$36.11 - Delivery of 290,000 pounds of U3O8 into sales contracts at an average price of
$62.89 - Cost of pounds delivered from inventory of
$62.97 - In addition to sales of 290,000 pounds, 29,126 pounds of U3O8 were transferred to the account of Boss Energy Ltd, the
30% JV partner at the Alta Mesa Project; - U3O8 inventory at quarter-end totaled 153,058 pounds at a cost of
$40.39 $12.2 million $7.7 million - Cash and equivalents of
$29.7 million $35.7 million - Net loss per share of
$0.13 $0.04 - Increased exploration and extraction activity in 2025 related to wellfield installations; and;
- The mark to market loss on the fair value of marketable securities held of over
$9.0 million
Total Costs of U3O8 Sold in Q1-2025 | ||||||||
Pounds U3O8 | Cost in '000 | Cost/pound | ||||||
Total Cost of all Pounds | 290,000 | |||||||
1Purchased | 216,289 | |||||||
Extracted total cost | 73,711 | |||||||
Extracted | 2cash cost | |||||||
3non-cash cost | ||||||||
1 | lower of actual cost or market price as of end Q1-2025 |
2 | cash costs of extracted pounds related to cost of goods sold are a metric for investors in evaluating the Company's operations |
3 | non-cash costs of extracted pounds related to cost of goods sold is an insight into additional expenses that impact overall costs and include depletion |
Inventory Remaining on Hand (end Q1-2025) | |||||||||
Pounds U3O8 | Cost in '000 | Cost/pound | |||||||
Total Cost of Inventory | 153,058 | ||||||||
1Purchased | 28,711 | ||||||||
Extracted total cost | 124,347 | ||||||||
Extracted | 2cash cost | ||||||||
3non-cash cost | |||||||||
1 | lower of actual cost or market price as of end Q1-2025 |
2 | cash costs of extracted pounds related to cost of goods sold are a metric for investors in evaluating the Company's operations |
3 | non-cash costs of extracted pounds related to cost of goods sold is an insight into additional expenses that impact overall costs and include depletion |
The Company has filed its first quarter Form 10-Q with the
Investor Information
enCore's interim financial statements, including the accompanying Management's Discussion and Analysis, are available in the Company's Quarterly Report on Form 10-Q, 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
enCore operates the
Following upon enCore's demonstrated success in
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 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. The presentation of non-GAAP financial measures should not be considered in isolation or as a substitute for reported results under
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SOURCE enCore Energy Corp.
FAQ
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