Westwater Resources Reports $3.9 Million Net Loss for Q2 2025, Progress on Kellyton Graphite Plant

Westwater Resources, Inc. reported a net loss of $3.9 million, or $0.05 per share, for the three months ended June 30, 2025, compared to a net loss of $3.8 million, or $0.07 per share, for the same period in 2024. The increase in net loss was attributed to higher stock compensation expenses, issuance costs related to the Series A-1 Convertible Notes, and increased depreciation expenses from the qualification line, which became operational in January 2025. For the six months ended June 30, 2025, the company recorded a net loss of $6.5 million, or $0.09 per share, a slight improvement from a net loss of $6.7 million, or $0.12 per share, in the prior year.

Total operating expenses for the second quarter of 2025 were $3.6 million, up from $2.8 million in the same quarter of 2024. General and administrative expenses rose to $3.1 million from $2.5 million year-over-year, primarily due to increased stock compensation and reduced capitalized payroll costs. The company’s cash balance as of June 30, 2025, was approximately $6.7 million, reflecting a net cash increase of $2.4 million from financing activities, including proceeds from the sale of common stock under its ATM Sales Agreement and the 2024 Lincoln Park Purchase Agreement.

In terms of strategic developments, Westwater has made significant progress on its Kellyton Graphite Plant, with total expected costs for Phase I remaining at $245 million. As of the end of the second quarter, approximately 85% of the necessary equipment had been received, and construction activities included the installation of equipment and electrical work. The company has also secured offtake agreements for 100% of its anticipated Phase I production capacity, indicating strong customer interest in its products.

Operationally, Westwater continues to engage with potential customers, providing samples of its coated spherical purified graphite (CSPG) for testing and evaluation. The company has produced over 1 metric ton of CSPG for pre-production cell trials and is working to optimize its qualification line to improve production capabilities. However, the company has faced challenges in securing additional funding to complete construction, which has led to a measured pace in construction activities.

Looking ahead, Westwater is actively pursuing a secured debt facility of approximately $150 million to finance the completion of the Kellyton Graphite Plant. The company is also exploring additional funding sources, including a loan application with the Export-Import Bank of the United States. Despite the challenges posed by market conditions and regulatory changes, Westwater remains focused on advancing its business plan and securing the necessary financing to support its operations and growth initiatives.