wanderer said:

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Everybody selling so now is the time to buy right?

cjo03 said:

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TxAgLaw03RW said:

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WWR news:

Arbitration award was issued last Friday in the dispute with Turkey, but can't find any details about the award. Looks like the case stems from WWR's acquisition of a company with uranium mining rights in Turkey.

https://icsid.worldbank.org/cases/case-database/case-detail?CaseNo=ARB/18/46

Also, they have their 2022 year end conference call tomorrow morning at 8:30.

10-K filing: https://fintel.io/doc/sec-wes****er-resources-inc-839470-10k-2023-march-06-19422-6288

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LIQUIDITY AND GOING CONCERN
The Consolidated Financial Statements of the Company have been prepared on a "going concern" basis, which means that the continuation of the Company is presumed even though events and conditions exist that, when considered in the aggregate, raise substantial doubt about the Company's ability to continue as a going concern because it is possible that the Company will be required to adversely change its current business plan or may be unable to meet its obligations as they become due within one year after the date that these financial statements were issued.

Management considered the following events and conditions in its going concern analysis. The Company last recorded revenues from operations in 2009. Since 2009, the Company has relied on equity financings, debt financings and asset sales to fund its operations. During the year ended December 31, 2022, and through the date the consolidated financial statements are issued, the Company continued construction activities related to the Kellyton Graphite Plant. The Company's construction related contracts include termination provisions at the Company's election that do not obligate the Company to make payments beyond what is incurred by the third-party service provider through the date of such termination. In its going concern analysis, the Company considered the construction activity and related costs through the date the consolidated financial statements are issued, and the Company's planned non-discretionary expenditures through March 31, 2024, which combined exceed the cash on hand as of the date of these consolidated financial statements, excluding external funding opportunities and the Company's current equity facilities.

At December 31, 2022 the Company's cash balances were $75.2 million, inclusive of approximately 5.0 million Euros. During the year ended December 31, 2022, the Company sold approximately 13.0 million shares of common stock for net proceeds of $25.9 million pursuant to the ATM Offering Agreement. As of December 31, 2022, the Company has $20.8 million remaining available for future sales under the ATM Offering Agreement and has 9.7 million shares of common stock available for future sales pursuant to the 2020 Lincoln Park PA.

The Company has historically and expects to rely on debt and equity financing to fund its operations and business plan until operations commence at the Kellyton Graphite Plant. Along with evaluating the continued use of the ATM Offering Agreement and the 2020 Lincoln Park PA, the Company is considering other forms of project financing to fund the construction of the Kellyton Graphite Plant, including both Phase I and Phase II. The alternative sources of project financing could include, but are not limited to, project debt, convertible debt, or pursuing a partnership or joint venture. If funds are not available to fund the construction of Phase I of the Kellyton Graphite Plant under the Company's financing facilities or through alternative financing sources, the Company may be required to reduce or severely curtail operations, change its planned business development strategies related to the Coosa Graphite Deposit and Phase I of the Kellyton Graphite Plant, alter the construction and commissioning timeline of Phase I of the Kellyton Graphite Plant, or put the construction of Phase I on hold until additional funding is obtained. If the Company is required to abandon construction and development or alter its intended long-term plans related the Kellyton Graphite Plant, the Company could be required to evaluate the recoverability of its long-lived assets.

While the Company has utilized its equity facilities to advance its business plan and has been successful in the past raising funds through equity and debt financings as well as through the sale of non-core assets, no assurance can be given that additional financing will be available in amounts sufficient to meet its needs, or on terms acceptable to the Company. Recent declines in the equity and debt capital markets, rising interest rates, inflation and generally uncertain economic conditions could significantly impact the Company's ability to access the necessary funding to advance its business plan. Further, given the recent decline in the Company's stock price, trading volume, and the decline in the equity markets, the Company's access to the available capacity on its equity financing facilities may be limited to one-third of its public float.

When considering the above events and conditions in the aggregate, the Company believes such events and conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that these financial statements were issued.

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certainly doesn't sound like we will be buying any maroon yacht's any time soon.

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This disclosure has been in their prior 10-Ks, but now they have an EOM from Moss Adams. Their hands are tied on this stuff…have to call attention to the lack of liquidity to fund the capex budget for the coming year. But this isn't news…

There is more to this story…book value is almost $3 per share and they told ISR to EAD with a 40% premium offer. The BOD believes there is more value here, or they would shut off the lights and call it a day.

I'm not saying it's in buy zone, but no need to assume anything has changed from this release.

I watch this thread, but can't post much. If anyone has questions over financial reporting or anything an audit partner can answer, I'll try to respond as soon as I can.

valverde03 said:

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cjo03 said:

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TxAgLaw03RW said:

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WWR news:

Arbitration award was issued last Friday in the dispute with Turkey, but can't find any details about the award. Looks like the case stems from WWR's acquisition of a company with uranium mining rights in Turkey.

https://icsid.worldbank.org/cases/case-database/case-detail?CaseNo=ARB/18/46

Also, they have their 2022 year end conference call tomorrow morning at 8:30.

10-K filing: https://fintel.io/doc/sec-wes****er-resources-inc-839470-10k-2023-march-06-19422-6288

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Quote:

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LIQUIDITY AND GOING CONCERN
The Consolidated Financial Statements of the Company have been prepared on a "going concern" basis, which means that the continuation of the Company is presumed even though events and conditions exist that, when considered in the aggregate, raise substantial doubt about the Company's ability to continue as a going concern because it is possible that the Company will be required to adversely change its current business plan or may be unable to meet its obligations as they become due within one year after the date that these financial statements were issued.

Management considered the following events and conditions in its going concern analysis. The Company last recorded revenues from operations in 2009. Since 2009, the Company has relied on equity financings, debt financings and asset sales to fund its operations. During the year ended December 31, 2022, and through the date the consolidated financial statements are issued, the Company continued construction activities related to the Kellyton Graphite Plant. The Company's construction related contracts include termination provisions at the Company's election that do not obligate the Company to make payments beyond what is incurred by the third-party service provider through the date of such termination. In its going concern analysis, the Company considered the construction activity and related costs through the date the consolidated financial statements are issued, and the Company's planned non-discretionary expenditures through March 31, 2024, which combined exceed the cash on hand as of the date of these consolidated financial statements, excluding external funding opportunities and the Company's current equity facilities.

At December 31, 2022 the Company's cash balances were $75.2 million, inclusive of approximately 5.0 million Euros. During the year ended December 31, 2022, the Company sold approximately 13.0 million shares of common stock for net proceeds of $25.9 million pursuant to the ATM Offering Agreement. As of December 31, 2022, the Company has $20.8 million remaining available for future sales under the ATM Offering Agreement and has 9.7 million shares of common stock available for future sales pursuant to the 2020 Lincoln Park PA.

The Company has historically and expects to rely on debt and equity financing to fund its operations and business plan until operations commence at the Kellyton Graphite Plant. Along with evaluating the continued use of the ATM Offering Agreement and the 2020 Lincoln Park PA, the Company is considering other forms of project financing to fund the construction of the Kellyton Graphite Plant, including both Phase I and Phase II. The alternative sources of project financing could include, but are not limited to, project debt, convertible debt, or pursuing a partnership or joint venture. If funds are not available to fund the construction of Phase I of the Kellyton Graphite Plant under the Company's financing facilities or through alternative financing sources, the Company may be required to reduce or severely curtail operations, change its planned business development strategies related to the Coosa Graphite Deposit and Phase I of the Kellyton Graphite Plant, alter the construction and commissioning timeline of Phase I of the Kellyton Graphite Plant, or put the construction of Phase I on hold until additional funding is obtained. If the Company is required to abandon construction and development or alter its intended long-term plans related the Kellyton Graphite Plant, the Company could be required to evaluate the recoverability of its long-lived assets.

While the Company has utilized its equity facilities to advance its business plan and has been successful in the past raising funds through equity and debt financings as well as through the sale of non-core assets, no assurance can be given that additional financing will be available in amounts sufficient to meet its needs, or on terms acceptable to the Company. Recent declines in the equity and debt capital markets, rising interest rates, inflation and generally uncertain economic conditions could significantly impact the Company's ability to access the necessary funding to advance its business plan. Further, given the recent decline in the Company's stock price, trading volume, and the decline in the equity markets, the Company's access to the available capacity on its equity financing facilities may be limited to one-third of its public float.

When considering the above events and conditions in the aggregate, the Company believes such events and conditions raise substantial doubt about its ability to continue as a going concern within one year after the date that these financial statements were issued.

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certainly doesn't sound like we will be buying any maroon yacht's any time soon.

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This disclosure has been in their prior 10-Ks, but now they have an EOM from Moss Adams. Their hands are tied on this stuff…have to call attention to the lack of liquidity to fund the capex budget for the coming year. But this isn't news…

There is more to this story…book value is almost $3 per share and they told ISR to EAD with a 40% premium offer. The BOD believes there is more value here, or they would shut off the lights and call it a day.

I'm not saying it's in buy zone, but no need to assume anything has changed from this release.

I watch this thread, but can't post much. If anyone has questions over financial reporting or anything an audit partner can answer, I'll try to respond as soon as I can.

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Have a buddy that grew up AL. His contacts/local's on the ground in Coosa County, AL either have worked at the WWR project site or some who are closely acquainted with it, all say the project is going through. All very positive about WWR. Those locals continue to invest in WWR too. Most impactful comment from one local is, the Gov has too much State money invested and at-risk in this project to allow it to fail. FWIW. I guess we'll see..

Farmer @ Johnsongrass, TX said:

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Have a buddy that grew up AL. His contacts/local's on the ground in Coosa County, AL either have worked at the WWR project site or some who are closely acquainted with it, all say the project is going through. All very positive about WWR. Those locals continue to invest in WWR too. Most impactful comment from one local is, the Gov has too much State money invested and at-risk in this project to allow it to fail. FWIW. I guess we'll see..

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Good update Farmer.

I have no doubt you just reached the pinnacle of posts for this board.

I pass within 25-30 minutes if their site 2X a week. When it's gets a little closer to operational I'll do some drive by pics.

TxAgLaw03RW said:

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A little more from the press release they put out this morning:

https://wes****erresources.net/news-releases/2023/03/07/wes****er-resources-announces-fy-2022-results-and-significant-strategic-operational-and-financial-updates/

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Wes Tw@ter Resources? It's all starting to make sense.

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WES****ER RESOURCES ANNOUNCES FY 2022 RESULTS AND SIGNIFICANT STRATEGIC, OPERATIONAL AND FINANCIAL UPDATES
Mar 7, 2023





AGREEMENT WITH GLOBAL ELECTRIC VEHICLE BATTERY MANUFACTURER
ANNOUNCES INCREASED THROUGHPUT AND SIGNIFICANTLY ENHANCED PROJECT ECONOMICS FOR KELLYTON GRAPHITE PROCESSING PLANT
$150 MILLION NON-BINDING TERM SHEET FOR PRIVATE DEBT THAT WOULD FUND THE BALANCE OF PHASE I CAPITAL REQUIREMENTS
Centennial, CO March 7, 2023: Wes****er Resources, Inc. (NYSE American: WWR) an energy technology and battery-grade natural graphite development company, is pleased to announce its year-end 2022 results and provide various strategic, operational and financial updates.

AGREEMENT WITH EV BATTERY MANUFACTURER
Wes****er Resources has entered into an agreement with a Tier 1 battery manufacturer for electric vehicles. Under the agreement, the parties will work together to ensure that the Coated Spherical Purified Graphite ("CSPG") that is expected to be produced at the Kellyton Graphite Processing Plant can be used as a high-performance anode material for the customer's batteries. Subject to those efforts, the parties expect to negotiate another agreement that will allow for the sale of potentially all graphite anode material from the Kellyton Graphite Processing Plant for those batteries.

"Following the passage of the Inflation Reduction Act, many battery manufacturers have sought to secure North American anode material. We are pleased to be part of that solution and believe this agreement is a significant step in the process," said Terence Cryan, Wes****er's Executive Chairman. "We are excited by the continued progress being made in our engagement with potential customers, and this agreement, and are anticipating making a joint announcement with our partner later this month. At that time, we expect to be in position to provide further details."

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OPTIMIZED DFS TO INCREASE THROUGHPUT AND SIGNIFICANTLY ENHANCE PROJECT ECONOMICS FOR KELLYTON GRAPHITE PROCESSING PLANT
In response to increasing customer demand and strong market conditions for CSPG, the Company is also announcing that it has optimized the original Definitive Feasibility Study ("DFS") to increase the expected throughput for Phase I of the Kellyton Graphite Plant which also results in associated capital and operating efficiencies. As a result of this work with our third-party engineering firm, the Company is more than doubling its expected CSPG production in Phase I resulting in a significant enhancement to the estimated economics of Phase I of the Kellyton Graphite Plant compared to the original DFS.

The Company now expects the total Phase I capital requirements for the Kellyton Graphite Plant to be approximately $271 million, resulting in:

More than doubling the expected annual production of CSPG to 7,500 metric tons and total annual production across all products to 16,000 metric tons.
More than tripling the expected pre-tax net present value ("NPV") to approximately $417 million (at an 8% discount rate).
Nearly tripling the total estimated cumulative pre-tax cash flows to $1.9 billion over a project life of 35-years.
Increasing the Phase I estimated internal rate of return ("IRR"), on a pre-tax basis, from 15.0% to 24.7%, a 65% increase.
The Company also is increasing the planned production capacity for its Phase II expansion of the Kellyton Graphite Plant. Prepared at a pre-feasibility level, the Phase II expansion is subject to its own DFS and securing the necessary funding.

Estimated capital costs for both Phase I and Phase II are estimated to be $736 million.
More than doubling the expected annual production of CSPG to 40,500 metric tons and total annual production across all products to 86,500 metric tons.
Nearly tripling the expected pre-tax NPV to approximately $2.2 billion (at an 8% discount rate).
Total estimated cumulative pre-tax cash flows to increase by a factor of nearly three to $10.3 billion over a project life of 35-years.
Increasing the estimated IRR, on a pre-tax basis, from 20.5% to approximately 36.3%, a 77% increase.

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"Great work by the Wes****er team has resulted in significant improvements to the project economics for the Kellyton Graphite Plant," said Frank Bakker, President and CEO. "We expect to begin testing and commissioning at the Plant in late 2023, and first production from Phase I is expected in the first half of 2024, subject to closing on the additional funding needed to complete construction. Additionally, we expect to complete the Phase I optimization in the second half of 2024. We believe that increasing our production capacity will allow us to position Wes****er to play a more significant role in the domestic battery-grade graphite market."

CONSTRUCTION FINANCING UPDATE
Wes****er is also announcing today that it has signed a non-binding, non-exclusive indicative term sheet for $150 million of private debt, which would cover the balance of the Phase I capital requirements and is targeting to close in the second quarter.

"We finished the year with a cash balance of $75.2 million and a working capital balance of $51.0 million" said Steve Cates, CFO and SVP-Finance. "Since beginning construction of Phase I of the Kellyton graphite plant in the fourth quarter of 2021, we have incurred approximately $76.4 million of costs, which is comprised of $55.3 million in cash outflows and the remainder included in the Company's working capital liabilities as of December 31, 2022."

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first production from Phase I is expected in the first half of 2024, subject to closing on the additional funding needed to complete construction. Additionally, we expect to complete the Phase I optimization in the second half of 2024. We believe that increasing our production capacity will allow us to position Wes****er to play a more significant role in the domestic battery-grade graphite market."

CONSTRUCTION FINANCING UPDATE
Wes****er is also announcing today that it has signed a non-binding, non-exclusive indicative term sheet for $150 million of private debt, which would cover the balance of the Phase I capital requirements and is targeting to close in the second quarter.

"We finished the year with a cash balance of $75.2 million and a working capital balance of $51.0 million" said Steve Cates, CFO and SVP-Finance. "Since beginning construction of Phase I of the Kellyton graphite plant in the fourth quarter of 2021, we have incurred approximately $76.4 million of costs, which is comprised of $55.3 million in cash outflows and the remainder included in the Company's working capital liabilities as of December 31, 2022."

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WWR to announce EV battery partner later this month. Better come in March. He could have said "next few months" to either surprise or meet expectations if lawyers drag feet.

In Q/A WWR mentioned they are looking to finalize financing a loan with one or more I-banks. So hopefully that means no dilution. On other hand, they are disappointed in the arbitration outcome.

FJ43 said:

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I pass within 25-30 minutes if their site 2X a week. When it's gets a little closer to operational I'll do some drive by pics.

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ProgN said:

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FJ43 said:

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I pass within 25-30 minutes if their site 2X a week. When it's gets a little closer to operational I'll do some drive by pics.

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