enCore Energy Corp. Reports Fiscal Year 2024 Financial Results and Files Annual Report on Form 10-K

PR Newswire

DALLAS, March 3, 2025

NASDAQ:EU

TSXV:EU

www.encoreuranium.com

DALLAS, March 3, 2025 /PRNewswire/ - enCore Energy Corp. (NASDAQ: EU) (TSXV: EU) (the "Company" or "enCore"), America's Clean Energy Company$(TM)$ , 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(TM), 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.

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