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CENTENNIAL, Colo. - Westwater Resources, Inc. (NYSE American: WWR), a $38 million market cap company engaged in the development of battery-grade natural graphite, has expressed support for the recent executive order signed by President Donald Trump aiming to boost U.S. production of critical minerals, including graphite. According to InvestingPro data, the stock is currently trading at $0.61, having shown significant volatility over the past year. The order, which took effect on March 20, 2025, seeks to reduce the nation’s reliance on foreign imports by utilizing the Defense Production Act and the U.S. International Development Finance Corporation to offer financial assistance and investment support for domestic processing of these materials.
Steve Cates, the Chief Financial Officer of Westwater, highlighted the significance of the executive order, stating that it could positively influence both the mining and processing stages of critical minerals. The company’s financial position shows potential for growth, though InvestingPro analysis indicates it currently operates with negative EBITDA of -$11.22 million in the last twelve months. He noted the potential benefits for Westwater’s Coosa Deposit in Alabama, which is recognized as the largest known graphite deposit in the contiguous United States. Cates anticipates that the directive may lead to an expedited and improved financing landscape for Westwater, particularly in relation to their ongoing projects.
Westwater Resources is currently constructing the Kellyton Graphite Processing Plant in east-central Alabama and manages the Coosa Graphite Deposit, which spans over 41,965 acres in Coosa County. The company’s focus on developing battery-grade natural graphite positions it to potentially benefit from the government’s initiative to foster a domestic supply chain for critical minerals.
While the executive order is aimed at strengthening the United States’ mineral independence and security, Westwater’s statement includes forward-looking information that is subject to various risks and uncertainties. InvestingPro has identified several key factors investors should consider, including rapid cash burn and high price volatility. InvestingPro subscribers have access to 8 additional crucial tips about WWR’s financial health and market position. The company cautions that actual outcomes may differ materially from those projected in their optimistic statements due to factors beyond their control.
Westwater’s support for the executive order aligns with the broader national interest in establishing a robust U.S. graphite industry and reducing the current dependence on imports, which are predominantly sourced from China. Trading at a Price/Book ratio of 0.29, the stock appears undervalued according to InvestingPro’s Fair Value analysis. Investors seeking deeper insights can access the comprehensive Pro Research Report, which provides detailed analysis of WWR’s financial health, market position, and growth prospects. This development could have significant implications for the U.S. energy technology sector and the supply of materials essential for modern technologies.
This news article is based on a press release statement from Westwater Resources, Inc.
In other recent news, Westwater Resources announced a $50 million "at the market" stock offering, aimed at raising capital through the sale of common stock. The company has also secured contracts for 100% of its anticipated Phase I graphite production from the Kellyton Graphite Plant, with agreements signed with SK On and Fiat Chrysler Automobiles. Additionally, Westwater achieved a 10% reduction in estimated construction costs for the plant, bringing the revised estimate to $245 million. The financial summary for the year ending December 31, 2024, reported a net loss of $12.7 million, an increase from the previous year’s $7.8 million loss.
Moreover, Westwater is finalizing a $150 million debt financing deal to complete the plant’s construction, despite some challenges due to federal policy decisions. In another development, the U.S. International Trade Commission made a preliminary determination supporting the American Active Anode Materials Producers’ stance against China’s graphite exports. This decision is expected to positively impact Westwater’s graphite anode material business. The company continues to develop the Kellyton Graphite Processing Plant and its Coosa Graphite Deposit in Alabama.
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