Executive Summary

Q3 results were dominated by a strategic pivot to graphite and a $5.2M impairment tied to the pending sale of uranium assets, driving consolidated net loss to $9.75M and EPS to $(1.23), versus $(1.83) and $(0.95) in Q3 2019 .
Liquidity is the bright spot: the company raised ~$50M via ATM/equity line during late Sep–early Oct and ended Oct with $53.3M cash, fully funding the 2021 pilot plant and feasibility study; management removed the “going concern” disclosure .
Operational milestones advanced: pilot plant commissioning in Germany/New York/Illinois to begin in November, customer qualification underway, and a provisional patent filed for proprietary purification technology; Q3 product tests showed ULTRA-CSPG and ULTRA-PMG performance at or above benchmarks .
Portfolio reshaping to graphite continues: LOI to sell U.S. uranium assets (~$2M in enCore stock), eliminating ~$4.0–$4.2M in annual expenditures and transferring reclamation liabilities, with closing targeted by year-end 2020 .
Stock reaction catalyst: EV battery supply urgency, a Presidential executive order on critical minerals (including graphite/vanadium), and the Piedmont/Tesla announcement spurred 667M shares traded and ~$4.5B in dollar volume from Sep 28–Oct 9; average price $6.77 and market cap ~$79M at ~19M shares outstanding on Nov 11–12 .

What Went Well and What Went Wrong

What Went Well

Liquidity and funding visibility: cash was $53.3M on Oct 31, fully funding 2021 base business, pilot plant program, and remaining product development; management removed going concern language .
Execution progress: pilot plant commissioning across Germany/NY/IL “as early as next week,” enabling large-batch prequalification and validating commercial design; feasibility study targeted for June 30, 2021 .
Technology and product validation: ULTRA‑CSPG showed performance “as well or better” than benchmark natural/synthetic materials; ULTRA‑PMG showed outstanding resistivity as a conductivity enhancer; purification process filed as a provisional patent .
Strategic focus sharpened: pivot to graphite and LOI to sell uranium business, saving ~$4M+ annually and transferring reclamation obligations; management emphasized “conservative promises…well kept” and a laser focus on graphite .

What Went Wrong

Impairment and discontinued ops losses: Q3 included a ~$5.2M impairment on uranium PP&E, elevating discontinued ops loss to $6.39M; management said no further impairment expected at deal close .
Higher cash burn and operating losses: net cash used in operating activities rose to $4.07M in Q3, and net loss from continuing ops expanded to $3.36M on higher product development and arbitration costs .
G&A ticked up year over year due to a non-recurring bonus reversal in 2019; continued arbitration spending and the development ramp drove costs higher .

Financial Results

Quarterly P&L and Cash Metrics

Metric	Q1 2020	Q2 2020	Q3 2020
Net Cash Used in Operating Activities ($USD Millions)	$3.5	$2.6	$4.069
Consolidated Net Loss ($USD Millions)	$3.3	$2.5	$9.751
Net Loss Per Share ($USD)	$(0.82)	$(0.43)	$(1.23)
Cash Balance ($USD Millions)	$0.9	$2.3	$5.5

Notes: Cash was $53.3M on October 31, 2020 (post-quarter) .

Q3 YoY Detail (Select Line Items)

Metric ($000s except per share)	Q3 2019	Q3 2020	YoY Variance
Net Cash Used in Consolidated Operations	$(2,868)	$(4,069)	+42%
Product Development Expenses (Continuing)	$(19)	$(1,641)	n/m
General & Administrative (Continuing)	$(1,003)	$(1,536)	+53%
Net Loss from Continuing Operations	$(1,170)	$(3,362)	+187%
Net Loss from Discontinued Operations	$(664)	$(6,389)	+862%
Net Loss	$(1,834)	$(9,751)	+432%
Net Loss Per Share ($)	$(0.95)	$(1.23)	+29%
Weighted Avg. Shares Outstanding (000s)	1,931	7,905	+309%

Continuing vs. Discontinued (Q3 2020)

Component	Q3 2020 ($USD Millions)
Net Loss – Continuing Ops	$(3.362)
Net Loss – Discontinued Ops	$(6.389)
Total Net Loss	$(9.751)

Operating drivers: increased graphite product development (pilot planning/testing) and arbitration costs drove continuing losses; discontinued losses reflect the impairment ahead of the uranium sale .

Guidance Changes

Metric/Item	Period	Previous Guidance	Current Guidance	Change
Pilot Plant Commissioning start	Q4 2020	Q4 2020 target (design underway)	Commissioning “as early as next week” across Germany/NY/IL	Maintained, timing firmed
Customer Qualification batches	Q4 2020–2021	Large-batch prequalification planned	Large-batch prequalification to begin with pilot output	Maintained
Feasibility Study completion	Mid-2021	Mid-2021	June 30, 2021 target	Timing clarified
Project Financing	Post-feasibility	Considering debt/equity/JV	Pursuing financing (DOE and other options) post-feasibility	Maintained, channels elaborated
Commercial Production (from purchased feedstock)	2022–2023	2022 start, 2023 first full-year positive cash flow	2022 commissioning; revenues expected 2023	Maintained
Mining at Coosa	2028	2028	2028	Maintained
Liquidity runway	2021–2022	Adequate liquidity via LPC/Cantor	Cash $53.3M funds 2021 base business and well into 2022	Strengthened

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1, Q2)	Current Period (Q3)	Trend
Pilot plant execution	Design progressing; Q4 start targeted	Commissioning in Germany/NY/IL to start mid-Nov; batches for qualification	Accelerating
Purification IP and product performance	Proprietary elements under evaluation; lab scale tests ongoing	Provisional patent filed; ULTRA‑CSPG/PMG performance meets/exceeds benchmarks	Positive validation
Liquidity and funding	PPP loan; LPC/Cantor facilities in place; modest cash balances	~$50M raised via ATM/equity line; $53.3M cash; removed going concern	Materially improved
Regulatory/macro catalysts	Turkey arbitration proceeding; battery market growth	Executive order naming graphite/vanadium critical; EV/battery demand themes	Tailwinds strengthening
Portfolio reshaping	Diversified focus (uranium/lithium/graphite)	LOI to sell U.S. uranium assets; lithium investment discontinued to focus on graphite	Focused on graphite
DOE/government financing	Not highlighted	Exploring DOE and other government financing options for project	Opening new avenue

Management Commentary

“We have a cash balance of over $53 million as of October 31, enough to finance our base business through 2022.” — Chris Jones, CEO .
“Our closing share price yesterday was $4.14…approximately 19 million shares outstanding…market capitalization stands at approximately $79 million.” — Jeff Vigil, CFO .
“Independent performance testing of ULTRA‑CSPG™…shows that it performs as well or better than benchmark…materials.” — Q3 press release .
“We continue to execute our business plan without pause.” — Chris Jones, CEO .
“June 30 [2021] on the feasibility study, and the project financing thereafter.” — Chris Jones, CEO .

Q&A Highlights

Impairment charges: The ~$5.2M impairment tied to the uranium sale is the primary driver of discontinued ops losses; management does not expect further impairment at close .
Use of proceeds: 2021 pilot plant, feasibility study, exploration, and base operations fully funded; project CapEx funding (debt/equity/JV) to follow feasibility .
Pilot plant setup: Multi-location commissioning leverages local expertise amid travel restrictions; commissioning means “it’s built—we're just running it to make sure it works” .
Financing partners: Preliminary product sales discussions with auto OEMs; JV considered as one financing path post-feasibility .
Government support: Company engaging broadly, including DOE, recognizing strategic importance of critical minerals; details will depend on counterparties (incl. DoD markets as a potential end-use) .

Estimates Context

Wall Street consensus via S&P Global for Q3 2020 EPS, revenue, EBITDA, and target price was unavailable during our retrieval window; we therefore cannot present “vs. estimates” comparisons for this quarter (S&P Global data access limit) [GetEstimates error].
Given the development-stage profile and lack of reported product revenue in the press release, near-term estimate revisions are likely to focus on operating expenses, cash burn, and milestone timing rather than top-line levels .

Key Takeaways for Investors

Liquidity removes near-term funding risk: $53.3M cash with base and development programs fully funded through 2021 (and into 2022), reducing equity overhang; the removal of going concern is meaningful for institutional participation .
Operational catalysts approaching: Pilot plant commissioning and initial batch deliveries/qualification in Q4–Q1 can validate process economics and product performance; feasibility study by June 30, 2021 is the next de-risking event .
Strategic focus and cost relief: Uranium divestiture should close by year-end, eliminating ~$4M+ annual spend and reclamation liabilities, sharpening focus on graphite .
Technology differentiation: Provisional patent on purification and third-party performance validation for ULTRA‑CSPG/PMG support competitive positioning versus Chinese HF-based processes; environmental profile is a potential OEM driver .
Macro tailwinds: U.S. critical minerals policy and EV adoption support domestic graphite supply chain narratives; potential government financing channels (e.g., DOE) could lower cost of capital .
Watch conversion of interest to contracts: Management cites ongoing customer qualification and auto OEM engagement; announcements of sample approvals or offtake would be stock-moving .
Risk monitor: Execution risk on multi-site pilot commissioning, feasibility assumptions, and project financing cadence; arbitration timeline with Turkey remains a separate binary event (hearing Sep 2021) .

Citations: Q3 2020 8-K 2.02 press release ; Q3 2020 earnings call transcript ; Q2 2020 earnings calls ; Q1 2020 earnings call ; Other relevant 8-Ks (Sep 4 and Oct 8) .

WESTWATER RESOURCES, INC. (WWR)·Q3 2020 Earnings Summary