WWR stock rose in after-hours trading on February 11, 2020, in the wake of a budget proposal to increase domestic supply of Uranium.
Westwater Resources, Inc. (Nasdaq: WWR), an energy materials development company, is pleased to support the Federal Fiscal Year 2021 budget proposal to set aside $150 million to establish a domestic Uranium Reserve.
Christopher M. Jones, President and Chief Executive Officer, said, “We believe this is an important development for the U.S. uranium industry that provides a real-time opportunity for Westwater. The Federal FY2021 budget, announced today, provides for a mechanism to build a strategic stockpile of uranium to secure our nation’s defensive needs. $150 million has been allocated for that new Uranium Reserve which addresses immediate challenges to the production of domestic uranium. Westwater stands ready to participate using our large uranium resource portfolio and two fully licensed facilities and wellfields in Texas.
“We also support the continued efforts of the Administration and the Nuclear Fuel Working Group to continue to evaluate issues related to the uranium supply chain and fuel supply,” concluded Mr. Jones.
Westwater Resources’ Uranium Portfolio
Westwater’s holdings in New Mexico encompass approximately 188,700 acres and include:
- The Cebolleta and Juan Tafoya properties immediately west of Albuquerque;
- Nose Rock, Ambrosia Lake and West Largo properties located in the prolific Grants Mineral Belt where much of the uranium produced in the United States over four decades was sourced; and
- Parts of the Santa Fe Railroad minerals rights checkerboard between Grants and Gallup, New Mexico.
Westwater’s holdings in Texas encompass approximately 11,000 acres and include:
- Two processing plants with unlimited licenses to produce uranium; and
- Wellfields in place as well as permits in hand to develop added capacity.
- Westwater believes that the uranium business in the United States is producing at what may be an all-time low level, and one that is not capable of satisfying domestic demand for nuclear power. With uranium designated by the Federal Government as a Critical Mineral, this low production level is at odds with the security of the United States – something that is clearly stated in the Government’s position paper. Westwater Resources looks forward to further bulletins from the Administration over coming months as they apply to the uranium business and how the Nuclear Fuel Working group intends to recommend implementation of the program for purchases of uranium for the Uranium Reserve. Westwater stands ready to implement production restart plans as soon as prices support.
WWR is focused on developing energy-related materials. The Company’s battery-materials projects include the Coosa Graphite Project — the most advanced natural flake graphite project in the contiguous United States — and the associated Coosa Graphite Mine located across 41,900 acres (~17,000 hectares) in east-central Alabama. In addition, the Company maintains lithium mineral properties in prospective lithium brine basins in Nevada and Utah. Westwater’s uranium projects are located in Texas and New Mexico. In Texas, the Company has two licensed and currently idled uranium processing facilities and approximately 11,000 acres (~4,400 hectares) of prospective in-situ recovery uranium projects. In New Mexico, the Company controls mineral rights encompassing approximately 188,700 acres (~76,000 hectares) in the prolific Grants Mineral Belt, which is one of the largest concentrations of sandstone-hosted uranium deposits in the world. Incorporated in 1977 as Uranium Resources, Inc., Westwater also owns an extensive uranium information database of historic drill hole logs, assay certificates, maps and technical reports for the western United States.
Many analysts have been calling for improved uranium prices over the mid-term from a supply deficit as uranium market fundamentals for supply and demand improve. Uranium demand is expected to increase over the mid-term from an increase of nuclear power generation in China, and to a lesser extent, India, Russia and other countries.