enCore Energy Corp. (EU)·Q4 2024 Earnings Summary

Executive Summary

• Q4 2024 showed sequential improvement with revenue rising to $13.36M from $9.26M in Q3, but gross profit remained slightly negative and EPS held at $(0.09) as average costs on sold pounds exceeded realized pricing amid ramp costs .
• FY24 revenue grew 163% to $58.33M on 720k lbs delivered at $81.0/lb realized price, yet the company posted a larger net loss (controlling) of $61.39M as start-up, exploration, GAAP transition effects, and higher costs on purchased pounds weighed on margins .
• Operationally, enCore captured 288,589 lbs on IX resin in 2024—“the largest amount of any U.S. producer in 2024”—and ended the year with 358,408 lbs in inventory at a $58.50/lb total cost, underpinning 2025 delivery capability .
• Strategic contracting and visibility improved: 8.30M lbs committed for 2025–2033 with options for an additional 2.2M lbs; management expects to double uranium extraction in 2025 versus 2024 as South Texas wellfields scale and Upper Spring Creek feed is targeted for Rosita following permitting in 2025 .
• Leadership transition: Robert Willette was appointed Acting CEO on March 2, 2025; the company also shifted to U.S. GAAP/domestic filer status as of Jan 1, 2025, which management says lowers the depreciation base prospectively, a potential EPS tailwind for 2025+ .

What Went Well and What Went Wrong

• What Went Well
  • Delivered material revenue growth in FY24 (+163% YoY to $58.33M) on higher pounds delivered and elevated realized prices; quarterly revenue also rose sequentially to $13.36M in Q4 from $9.26M in Q3 .
  • Extraction scale-up: “288,589 pounds U3O8 were captured on IX resin, the largest amount of any U.S. producer in 2024,” reflecting strong progress at Rosita and Alta Mesa; two CPPs online in Texas .
  • Contracting visibility: 8.30M lbs in committed sales (2025–2033) with optionality for 2.2M lbs more; pricing structures diversified (market-related, hybrid, escalated, fixed) to balance upside and downside .
• What Went Wrong
  • Profitability pressure persisted: Q4 gross profit was $(0.29)M, with cost of goods sold ($13.65M) still exceeding revenue ($13.36M); EPS remained $(0.09) as ramp expenses and cost mix weighed on margins .
  • FY24 net loss widened to $67.99M total and $61.39M attributable to controlling interest; factors included higher exploration/extraction costs, ~$3M SOX 404(b) compliance costs, and ~$15M of costs expensed under U.S. GAAP that would have been capitalized under IFRS .
  • Leadership uncertainty and execution risk: CEO transition announced March 2, 2025; while management expects benefits from GAAP transition (lower depreciation base), the near-term ramp still requires flawless execution on wellfields and permitting .

Financial Results

Quarterly P&L snapshot

FY comparison

KPIs and operating metrics

Non-GAAP cost disclosures (company-defined)

• Uranium cost per extracted pound sold in 2024: $40.57 (cash $35.99, non-cash $4.59) .
• Extracted inventory cost per lb at 12/31/24: $57.84 (cash $43.06, non-cash $14.78) .

Context from prior quarters (operations)

• Q3-24: 100,261 lbs packaged; Upper Spring Creek advancing (UIC permit; monitor wells installing) to feed Rosita in 2025 .
• Q2-24: Alta Mesa production commenced mid-June; late-Q2 head grades averaged 120 mg/L with productivity “exceeding expectations” .

Guidance Changes

No formal 2025 revenue/EPS or capex guidance was provided in the press materials; management focused on operational scaling and contracting visibility .

Earnings Call Themes & Trends

Note: No Q4 2024 earnings call transcript was available in the document system; themes below reflect Q2/Q3 releases and FY24 materials.

Management Commentary

• “As of January 1, 2025, the Company’s reporting status with the SEC changed from a foreign private issuer to a U.S. domestic issuer… By adjusting the carrying value of certain assets under U.S. GAAP, the Company expects a lower depreciation base going forward, which may positively impact reported earnings by reducing future non-cash expenses.”
• “In 2024… 288,589 pounds U3O8 were captured on ion exchange resin, the largest amount of any U.S. producer in 2024.”
• “In 2024, enCore completed eight uranium sales… totaling 720,000 pounds U3O8 at an average sales price of $81.02 per pound.”
• “As of December 31, 2024, the Company had 8.30 million pounds U3O8 in committed uranium sales from 2025 through 2033… Six of the current contracts provide the optionality to add an additional 2.2 million pounds.”
• “On March 2, 2025, the board… appointed Robert Willette… as Acting Chief Executive Officer.”

Q&A Highlights

• No Q4 2024 earnings call transcript was available in the document system; therefore, Q&A themes and specific analyst questions/answers could not be reviewed or cited from primary sources. We will update this section if a transcript is furnished subsequently.

Estimates Context

• Wall Street consensus (S&P Global) for Q4 2024 revenue/EPS was not retrievable due to data access limits at the time of query. As a result, we cannot present vs-consensus beats/misses for this quarter. We will refresh and provide S&P Global consensus comparisons when access is restored.

Key Takeaways for Investors

• Sequential improvement but profitability still constrained: Q4 revenue grew to $13.36M, yet cost of goods sold remained slightly above revenue, keeping gross profit negative and EPS at $(0.09); profitability inflects as extracted-cost mix displaces high-cost purchased pounds in delivered volumes .
• 2025 inflection watch: Management targets doubling 2025 extraction vs 2024; delivery visibility is strong with 8.3M lbs committed through 2033 and optional upside, positioning the company to leverage a supportive term contracting market .
• Cost trajectory is the swing factor: Company-reported extracted costs (~$40.57/lb in 2024) are below FY24 realized prices ($81.0/lb), implying margin expansion as production mix shifts toward extracted pounds and away from purchased inventory priced near or above realized prices in 2024 .
• Execution catalysts: Accelerated wellfield development (17 rigs), Upper Spring Creek satellite IX feed to Rosita (permitting 2025), and continued Alta Mesa ramp provide tangible volume catalysts; monitor timing and head-grade trends .
• Structural changes could aid reported earnings: U.S. GAAP transition may lower depreciation expense, potentially improving EPS optics in 2025 alongside production scaling; leadership change introduces execution risk to monitor .
• Balance sheet improved versus early 2024: Year-end cash of $39.7M and sizable inventories provide working capital to support ramp; track working capital swings tied to deliveries and build/withdrawal of inventory .
• Absent consensus markers today: Without S&P Global estimates, near-term stock reaction may hinge on investor interpretation of ramp credibility, cost convergence to extracted levels, and contracting updates; we will provide beat/miss analysis when estimates access resumes.