By Katherine Hamilton
Westwater Resources has doubts it can continue as a going concern due to widening loss, a lack of funding and construction delays.
The Centennial, Colo., company, which sources minerals for clean energy production, said there is substantial doubt about its ability to continue as a going concern.
In an annual report filed Thursday, Westwater said it has incurred significant losses since ceasing production of uranium in 2009 and expects those losses to continue. It had negative net working capital of about $6.9 million and an accumulated deficit of $373.7 million at the end of 2024.
Westwater has sold equity securities to fund capital needs in recent years. If it can't raise sufficient additional funds, it might have to further delay, reduce or severely cut back operations, it said.
During 2024, Westwater decreased its capital cost for its Phase 1 production capacity by $26 million. Construction on its Kellyton Graphite Plant has experienced delays and cost overruns, the company said.
"Recent policy decisions by the federal government have created uncertainty in the capital markets, which has negatively impacted the timing and increased the number of lenders needed to complete the syndication of the debt financing to complete Phase I construction of the Kellyton Graphite Plant," said Executive Chairman Terence Cryan.
Write to Katherine Hamilton at katherine.hamilton@wsj.com
(END) Dow Jones Newswires
March 21, 2025 06:51 ET (10:51 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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