Executive Summary

Q2 2025 was operationally constructive but financially pre‑revenue with continued net losses; Kellyton Phase I remained on budget ($245M) and cumulative spend reached ~$124M, 85% of equipment received, and initial micronizing/spheroidizing units commissioned .
Liquidity improved: quarter-end cash was $6.7M, rising to ~$12.5M post quarter on Aug 11; financing tracks advanced (ongoing $150M debt syndication and EXIM LOI with formal application post quarter) .
Convertible notes provided $10M of bridge capital (June $5M; August $5M) with fixed conversion prices ($0.63 and $0.83) or 92% of 5‑day VWAP; monthly installment flexibility; covenants include 9.99% ownership cap and $2.25M minimum cash balance .
No formal revenue/EPS guidance or consensus estimates were available from S&P Global for Q2; comparison to Street cannot be established. Values retrieved from S&P Global where presented [GetEstimates – unavailable].

What Went Well and What Went Wrong

What Went Well

Construction execution: 85% of Phase I equipment received; transition to grid power completed; first two commercial micronizing/shaping mills commissioned, supporting on‑time operational readiness .
Customer qualification progress: qualification line produced CSPG samples exceeding 1 metric ton for pre‑production cell trials; cycle times and flow rates improved, building operator expertise ahead of full-scale start-up .
Financing optionality: dual-track funding progressed—$150M debt syndication sustained lender engagement, and EXIM LOI advanced to formal application post quarter, creating flexibility in the capital stack .
Management confidence: “We remain confident in the strength of our project… well‑positioned to play a leading role in strengthening the domestic battery supply chain,” said Executive Chairman Terence Cryan .

What Went Wrong

Pre‑revenue status and continued losses: Q2 remained pre‑revenue with a net loss and negative EPS, reflecting construction-phase economics [GetFinancials; see tables]. Values retrieved from S&P Global.
Financing timing uncertainty: macro tariff news and lender shifts extended debt syndication timing; management refrained from providing specific closing dates .
Feedstock risks: protests at the existing supplier earlier in 2025 highlighted supply chain vulnerabilities; management pursued non‑Chinese backup sources under NDA to mitigate future risk .
Going concern qualification in the FY2024 audit underscores funding dependence until Phase I financing is secured .

Financial Results

Income Statement Snapshot (USD)

Metric	Q2 2024	Q1 2025	Q2 2025
Net Income - (IS) ($USD)	$(3.819)M	$(2.676)M	$(3.869)M
Diluted EPS - Continuing Operations ($)	$(0.0665)	$(0.0394)	$(0.0509)

Values retrieved from S&P Global.

Revenue

Metric	Q2 2024	Q1 2025	Q2 2025
Revenues ($USD)	N/A*	N/A*	N/A*

*Values retrieved from S&P Global (no reported revenue during construction phase).

Liquidity

Metric	Q1 2025	Q2 2025
Cash And Equivalents ($USD)	$3.262M	$6.704M

Values retrieved from S&P Global. Note: Post-quarter cash was ~$12.5M on Aug 11, 2025, after the second convertible note issuance .

Estimates vs Actuals (S&P Global)

Metric	Q2 2025 Consensus	Q2 2025 Actual
Primary EPS Consensus Mean	N/A*	$(0.0509)
Revenue Consensus Mean ($USD)	N/A*	N/A*

*Consensus values unavailable from S&P Global. Values retrieved from S&P Global.

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Phase I Construction Cost	Project	$245M expected (reduced from prior $271M)	$245M expected; unchanged	Maintained
Construction Timeline	Project	Commissioning post financing; commercial production targeted 2026 (prior commentary)	Update to timeline will be provided once funding is secured	Deferred update
Debt Financing	Phase I	Lead lender IC approval; $150M syndication ongoing	$150M syndication continues; lenders advancing due diligence	Maintained trajectory
EXIM Funding	Additional	LOI received (Apr 2025)	Formal application submitted; due diligence initiated post quarter	Advanced
Feedstock	Near-term supply	Backup non‑Chinese source under evaluation	Advanced stage; under NDA; pursuing diversification	Advanced
Cash Covenant	Corporate	N/A	$2.25M minimum cash balance in notes	New constraint (covenant)
Convertible Notes Terms	Corporate	N/A	June $5M: $0.63 fixed or 92% of 5‑day VWAP; Aug $5M: $0.83 fixed or 92% of 5‑day VWAP; monthly installments; 115% redemption premium; 9.99% ownership cap	New instruments

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024)	Q1 2025	Q2 2025	Trend
Financing & Capital Stack	Lead lender IC approval; syndication required due to market uncertainty	Pivot to multi‑lender syndicate; timing extended by tariffs; strong lender engagement	Continued progress on syndication; EXIM application submitted	Improving optionality; timing uncertain
Supply Chain / Feedstock	N/A	Protests at supplier; pursuing non‑Chinese backup source	Advanced NDA-stage backup; diversification priority	Improving resilience
Construction Progress	$123M deployed; cost cut to $245M; qualification line built	85% equipment received; qualification sample 800kg	Grid power on; mills commissioned; CSPG samples >1mt and process improvements	Positive execution
Customer Engagement / Offtake	100% of Phase I capacity under contract (SK On, FCA)	Ongoing sampling/site visits; Phase II interest	Continued qualification with >1mt samples	Stable/positive demand signals
Policy/Tariffs	Tariffs heightened capital market uncertainty	Monitoring tariff impacts on equipment cost; within budget	DOC anti-dumping duties (93.5%) + countervailing duties and Section 301 raise import penalties >100%; supports domestic anode economics	Supportive tailwinds
IP/R&D	N/A	Patent application successfully reviewed by USPTO (announced same day)	Continued process optimization on qualification line	Positive technical progress
Audit/Going Concern	Going concern qualification disclosed	Emphasis on financing closure	Liquidity improved via converts; financing workstreams active	Still a watch item

Management Commentary

“Westwater continues to make steady progress on all fronts — from construction at Kellyton to advancing multiple financing pathways… well‑positioned to play a leading role in strengthening the domestic battery supply chain.” — Terence Cryan, Executive Chairman .
“With 85% of Phase 1 equipment on site… delivering CSPG samples… building the expertise and operational readiness that will allow us to hit the ground running when we reach full-scale production.” — Frank Bakker, President & CEO .
“We are making steady progress across both financing tracks… advancing both financing tracks provides optionality, flexibility and redundancy…” — Steve Cates, CFO .

Q&A Highlights

Financing timing and lender composition: CFO reiterated multi‑committee lender processes and confidence in closing, but avoided specific dates; EXIM viewed as complementary capital for Phase I/II/Coosa rather than immediate replacement to debt .
Backup feedstock: CEO noted advanced NDA‑stage discussions for non‑Chinese sources; diversification prioritized to mitigate disruptions .
Tariff impacts on costs: CFO highlighted 85% equipment already purchased/on hand and current analyses indicate Phase I remains within the $245M budget despite evolving tariff landscape .
Post‑Turkey arbitration: CFO referenced ~$3M recovery from prior settlement during call coverage (external transcript sources) .

KPIs

KPI	Q1 2025	Q2 2025	Notes
Phase I Expected Cost ($USD)	$245M	$245M	Maintained post prior $26M reduction
Cumulative Project Spend ($USD)	N/A	~$124M incurred to date	Inclusive of liabilities
Equipment Received (%)	~85%	~85%	Ongoing installation/commissioning
CSPG Qualification Samples	800 kg shipped	>1 metric ton produced	For customer cell trials
Debt Facility Target	$150M	$150M	Syndication ongoing
Convertible Notes Raised	$5M (June 2025)	+$5M (Aug 2025)	Registered offerings; terms summarized above

Estimates Context

S&P Global consensus estimates for Q2 2025 EPS and revenue were unavailable; as a result, beat/miss analysis to Street is not possible. Values retrieved from S&P Global.

Key Takeaways for Investors

Execution momentum at Kellyton: commissioning of initial commercial units and improved qualification line throughput reduce ramp-up risk when funded; Phase I cost held at $245M despite tariff volatility .
Capital stack evolving: $10M in converts extends runway; $150M debt syndication plus EXIM application provide multiple pathways, but closing timing remains a catalyst and watchpoint .
Structural policy tailwinds: DOC anti‑dumping and countervailing duties materially raise import costs (>100%), strengthening domestic anode economics and potential pricing power for U.S. producers .
Demand signals intact: 100% of Phase I capacity contracted (SK On, FCA) and active customer trials (>1mt CSPG) support commercialization once the plant is completed and financed .
Risk management: feedstock diversification and NDA‑stage backup supplier reduce supply chain risk; ongoing going concern qualification underscores the importance of financing execution .
Near-term trading: stock likely sensitive to financing milestones (debt close, EXIM progress), additional offtakes or qualification wins, and tariff/regulatory updates; liquidity/covenant levels also relevant due to converts .

Citations: 8-K and SPA/notes terms ; Q2 business updates and call announcement ; Anti‑dumping/countervailing/tariff context ; Q1 press release and call transcript ; FY2024 update, capacity/CapEx reduction, going concern . Values retrieved from S&P Global where noted.

WESTWATER RESOURCES, INC. (WWR)·Q2 2025 Earnings Summary