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enCore Energy Corp.

EU
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Business Summary

enCore Energy Corp., operating as "America's Clean Energy Company," is primarily engaged in the acquisition, exploration, development, and extraction of uranium resource properties within the United States, utilizing In-Situ Recovery (ISR) technology to produce fuel for nuclear energy . The Company was incorporated on October 30, 2009, under the Laws of British Columbia . As of January 1, 2025, enCore ceased to be a "foreign private issuer" and became a "domestic issuer," with a non-accelerated filer status as of December 31, 2025 . The Company's common shares are listed on The Nasdaq Capital Market LLC ("Nasdaq") and the TSX Venture Exchange ("TSX-V") under the trading symbol EU . Despite commencing uranium extraction at its Rosita and Alta Mesa Uranium Projects, enCore remains classified as an "Exploration Stage Issuer" as defined by S-K 1300, due to not having established proven or probable Mineral Reserves through a pre-feasibility or feasibility study for any of its uranium projects .

The Company's core business model revolves around the extraction of domestic uranium in the United States using ISR technology, which is described as minimally invasive, environmentally friendly, and economically competitive . ISR involves injecting a lixiviant (oxygen and sodium bicarbonate in native groundwater) into uranium-bearing sandstone to solubilize uranium, which is then recovered and processed through an ion-exchange (IX) system . The uranium-rich resin is regenerated to produce a uranium "yellowcake" slurry, which is then filtered, dried, and packaged . The Company generates revenue from the sale of these uranium concentrates to customers, primarily major U.S. utilities, under various sales contracts . The sales contracts specify quantity, price, payment terms, and delivery year, with revenue recognized upon book transfer at the storage facility .

enCore controls key mineral properties in Texas, South Dakota, Wyoming, and New Mexico . As of December 31, 2025, the Company owns three of the ten licensed and constructed ISR Central Processing Plants (CPPs) in the United States, all located in Texas . The Rosita Central Processing Plant (CPP) in South Texas, with an 800,000-pound U3O8 per year production capacity, commenced uranium extraction in 2024 from the Rosita Extension wellfield, PAA-5 . For the year ended December 31, 2025, the Rosita CPP produced 5,728 pounds of U3O8, and 73,488 pounds in 2024 . The Alta Mesa Uranium Project, also in South Texas, is a fully licensed and constructed ISR project and CPP located on over 4,597 acres of private land . Its total operating capacity is approximately 1.5 million lbs U3O8 per year . The Company commenced uranium extraction at the Alta Mesa CPP in June 2024 . The Mesteña Grande Uranium Project, an Exploration Stage Property adjacent to Alta Mesa, is 100% owned by the Company and covers approximately 194,119 acres . The Dewey Burdock Project in South Dakota is an Exploration Stage Property where the Company owns 100% interest, controlling approximately 16,962 acres of net mineral rights and 12,613 acres of surface rights . The Gas Hills Project in Wyoming, also 100% owned, is an Exploration Stage Property consisting of approximately 1,280 surface acres and 12,960 net mineral acres .

For the year ended December 31, 2025, total revenue from uranium sales was $43,155 thousand , a decrease of $15,179 thousand or 26% from $58,334 thousand in 2024. Cost of sales decreased by $32,078 thousand or 49% to $33,463 thousand in 2025, compared to $65,541 thousand in 2024. This resulted in a gross profit of $9,692 thousand in 2025, a significant improvement from a gross loss of $7,207 thousand in 2024. Operating expenses, excluding stock option expense, increased by $11,066 thousand or 18% to $71,254 thousand in 2025, from $60,188 thousand in 2024. The net loss before income taxes was $(63,511) thousand in 2025, an improvement from $(73,922) thousand in 2024. Diluted EPS was $(0.30) in 2025, compared to $(0.34) in 2024. Cash and cash equivalents were $52,403 thousand as of December 31, 2025, up from $39,701 thousand in 2024. Total liabilities were $172,042 thousand in 2025, compared to $74,180 thousand in 2024. Total debt, represented by convertible senior notes, was $109,986 thousand as of December 31, 2025, with no comparable amount in 2024 .

Year-over-year, volumes sold decreased by 65,000 pounds or 9% to 655,000 pounds in 2025, from 720,000 pounds in 2024. The realized sales price per pound decreased by $15.13 or 19% to $65.89 in 2025, from $81.02 in 2024, primarily due to ceiling prices in customer contracts . Costs applicable to revenues per pound decreased by $39.94 or 44% to $51.09 in 2025, from $91.03 in 2024, attributed to no purchases of uranium and more sales of extracted uranium at a lower market price . The Company's gross profit improved significantly from a loss in 2024 to a profit in 2025, reflecting better cost management relative to sales.

During 2025, the Company announced new uranium discoveries in areas in or near existing wellfields at the Alta Mesa Project, resulting from a re-analysis of historic drill holes . These discoveries include uranium mineralized roll fronts in at least three areas, with one new roll front progressing to permitting as a Wellfield 3 extension . Mineralized roll fronts were also found overlying past productive mineralization in Wellfield 4, extending over 2,500 feet in length and included in existing permit authorization . This newly discovered shallow mineralization (320 to 345 feet deep) is expected to result in significant cost savings for delineation and extraction . The Company also increased its active drill rig capacity in South Texas from 6 at the beginning of 2024 to 17 by December 31, 2024, and further to 30 by December 31, 2025 . In April 2025, the Company executed a definitive sale and purchase agreement to sell certain mineral rights and properties in New Mexico to Verdera Energy Corp. .

Business Outlook

The Company's sales commitments for all sales contracts total 7,950 thousand pounds of U3O8 through 2030 and thereafter . Specifically, commitments are 900 thousand pounds for 2026, 850 thousand pounds for 2027, 1,000 thousand pounds for 2028, 1,500 thousand pounds for 2029, 1,200 thousand pounds for 2030, and 2,500 thousand pounds thereafter . The Company expects to recognize revenue related to fixed and unconstrained variable consideration of $117,895 thousand through December 31, 2028, and $205,620 thousand thereafter under the non-cancelable portion of these contracts .

A major growth vector for the Company is the continued expansion of uranium extraction at the Alta Mesa Project, with plans to complete the installation of remaining modules in PAA-7 and continue uranium extraction there . The Company also intends to install monitor wells for PAA-8 and production wells and infrastructure for PAA-3 extension, with production expected upon receipt of the PAA . Further resource development is planned in the LC South area to define the next PAA, and exploration will continue at the newly acquired Alta Mesa East property to develop resources . Wide-spread drilling is ongoing to determine sitewide geologic understanding, and closer spaced drilling will continue to define total mineralization and potential production area limits . Permitting efforts have begun for the Aquifer Exemption, RML, and UIC permit for these areas .

Another significant growth area is the commencement of uranium extraction from Upper Spring Creek - Brown . Initial steps include completing regulatory approvals for the RML RO3653 amendment, Class I UIC non-hazardous liquid byproduct disposal well, and the PAA . Installation of wellfield patterns, wellfield infrastructure, and the satellite IX facility for the site are ongoing, with the first modules and half of the IX train expected to be operational once the final PAA is received in 2026 . The Company also plans to conduct additional exploratory drilling on the Geffert and Houdman properties to identify additional Mineral Resources and increase confidence in reported inferred Mineral Resources . In 2026, applications are intended to be filed to amend RML RO3653 to incorporate the Upper Spring Creek–Brown Expansion Project and for Class III and Class I Underground Injection Control permits for the expansion project .

Operationally, the Company anticipates further cost efficiencies as additional wellfield patterns come online and economies of scale improve . The Company remains committed to cost efficiency and production optimization, ensuring competitive uranium extraction and processing . The Company's strategy over the next three years is centered around its two fully licensed Texas CPPs: Rosita and Alta Mesa . The CPPs are designed to process feed resin from relocatable satellite IX plants at various deposits within a 100-mile radius of each plant .

Planned capital allocation includes continued investment in exploration and development activities to advance properties for uranium extraction . Total capital cost estimates for the Gas Hills Project are $120.2 million , including design and permitting, CPP, disposal well, wellfields, and transfer pipeline construction, and other general and administrative costs . For the Dewey Burdock Project, estimated capital costs are $264.2 million , which includes pre-construction permitting and licensing, wellfield development, the CPP, satellite, and associated infrastructure . The Company issued $115,000 thousand aggregate principal amount of Convertible Senior Notes on August 22, 2025, bearing an annual interest of 5.5% and maturing on August 15, 2030 . In connection with this, the Company paid capped call premiums of $12,006 thousand . The Company does not anticipate paying any cash dividends on its common shares for the foreseeable future, intending to retain future earnings to fund business development and growth .

Management explicitly flagged several structural headwinds and execution risks. The timing to prepare applications and for agency review and approval for the Mesteña Grande Project is estimated to be 3 to 4 years and is not entirely in enCore's control, with potential for longer timelines due to increased interest in uranium recovery . The costs to obtain these licenses and permits are estimated at $2.87 million . For the Dewey Burdock Project, the timeframe to obtain licenses and permits is expected to be impacted by environmental non-governmental organizations (NGOs) and public contestation, with time for contested cases accounted for in the project development schedule . The NRC license renewal application is under review, with a licensing decision projected for May 2026 . The OST appeal of the EPA Class III and Class V UIC permits is combined with the appeal of the Aquifer Exemption, currently pending before the 8th Circuit Court of Appeals . For the Gas Hills Project, the WDEQ-URP license preparation and review process will take approximately two years , and the WDEQ-LQD permit to mine application review will also likely take about two years .

Risk Factors

The Company faces significant risks, including its history of negative operating cash flows and the need for additional financing, which may not be available on favorable terms . Its expansion-by-acquisition strategy carries risks of not realizing anticipated benefits and integration challenges . None of the Company's properties currently contain Mineral Reserves under S-K 1300, and some projects may not be economically viable . The estimation of Mineral Resources is subjective and uncertain, and future production estimates may not be achieved . Key permits are required for project advancement, and delays or inability to obtain them, potentially due to involvement from Native American tribes or non-governmental organizations, could adversely affect operations . The uranium industry is highly competitive, and the Company may struggle to acquire additional contracts and projects . Public opinion and geopolitical changes, such as the Russian invasion of Ukraine and conflicts in the Middle East, can impact the demand for nuclear energy and uranium prices, which are inherently volatile . Changes in U.S. trade policy, tariffs, and import/export regulations, as well as potential amendments to mining laws or designation of national monuments on federal lands, could also negatively affect the business . The Alta Mesa joint venture introduces risks related to partner consensus . The Company is subject to Canadian and U.S. tax implications, including potential PFIC status for U.S. Holders . Future equity issuances, including conversions of Convertible Senior Notes, could dilute existing shareholders . The Company relies on information technology systems, making it vulnerable to cybersecurity risks and data leakage . Material weaknesses in internal controls over financial reporting have been identified, and failure to remediate them could harm financial reporting accuracy and investor confidence .

Management Priorities

Management's message to shareholders emphasizes enCore Energy Corp.'s position as "America's Clean Energy Company" focused on extracting domestic uranium within the United States using proven ISR technology to fuel clean, reliable, and carbon-free nuclear energy . The Company's strategic priorities include building uranium extraction capacity by developing and operating a series of facilities in South Texas, followed by a future pipeline of exploration projects in South Dakota and Wyoming, aiming to become a leading supplier of domestic uranium . Management highlights the successful commencement of uranium extraction at the Rosita Central Processing Plant in 2024 and the Alta Mesa CPP in June 2024, making enCore one of only a handful of companies globally with more than one operational uranium extraction operation . The Company's strategy also includes streamlining operations, rationalizing its asset base through non-core asset divestment, and formalizing a contract and sales strategy to leverage its reputation as a reliable multi-facility domestic supplier . Management intends to grow its contract portfolio through new multi-year, hybrid, market-based contracts to maximize profits while protecting against price declines . The Company anticipates further cost efficiencies as additional wellfield patterns come online and economies of scale improve . Management believes that available cash, expected operating cash flows, and future revolving credit facilities or equity/debt financings will provide sufficient funds for operations and anticipated scheduled debt service payments for the next twelve-month period following December 31, 2025 .

View Source Annual Report on SEC.gov ↗

References

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  9. [9] Item 7, MD&A — Sales of Uranium and Sales Agreements
  10. [10] Item 2, Summary of Significant Accounting Policies
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  41. [41] Item 8, Consolidated Balance Sheets
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  64. [64] Item 8, Note 7 — Mineral Rights and Properties
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Analysis on 5/22/2026