Westwater Resources Inc.

Westwater Resources Inc. (NYSE: WWR) is a developer of varied energy materials. In Alabama, the company has battery-graphite development properties. Coosa Graphite Project, Bama Mine Project, and COOSA Graphite-Vanadium Project are among the company's projects.

Key Highlights

• Westwater Resources, Inc. announced on 4 May 2022 that on Wednesday, May 11, 2022, at 11:00 a.m. ET will hold a conference call to discuss its financial results for the first quarter ended March 31, 2022, as well as ongoing activities at its Kellyton graphite processing plant and Coosa graphite deposit.
• For the year ended December 31, 2021, the net loss from continuing operations was USD 16.1 million, or USD 0.49 per share, compared to USD 13.9 million, or USD 1.58 per share, in 2020. Increases in production development, exploration charges, and general and administrative costs accounted for the USD 2.2 million raise. The sale of Westwater's uranium business in the fourth quarter of 2020 resulted in a USD 9.7 million net loss from ending operations in 2020.
• Due to increased graphite product development, exploration, and general and administrative and arbitration expenses, net cash utilized in operations rose by USD 1.7 million in FY 2021.
• In comparison to the previous year, product development costs grew by USD 1.9 million in 2021. The DFS, which began in February 2021 and ended in October 2021, accounted for most product development expenses. The expense of collaborating with outside specialists for lab work, product testing, and other auxiliary costs related to the Coosa Project are included in the product development program.
• In comparison to the previous year, general and administrative costs increased by USD 1.5 million in 2021. Increased sales and marketing expenditures, as well as greater stock compensation and public company expenses, contributed to the higher costs. The decrease of USD 1.7 million in costs connected to Westwater's uranium business, which was sold in the fourth quarter of 2020, largely offset these increases.
• The Company's cash balance was USD 115.3 million as of December 31, 2021, compared to USD 50.3 million as of December 31, 2020. Capital increases via the Company's financing arrangements with Cantor Fitzgerald & Co. and Lincoln Park Capital LLC resulted in a large rise in 2021.

One-year technical Price Chart (as of 05 May 2022). Source: REFINITIV, Analysis by Kalkine Group

Conclusion

WWR's stock price has fallen 62.79% in the past six months and is currently leaning towards the lower end of its 52-week range of USD 1.23 to USD 5.70. As can be seen in the technical chart, the price is taking continuous rejections from the short-term (50-day) SMA. Currently, the short-term SMA is at USD 1.73, if broken upwards will bring bullish momentum to the stock.

Given the stock's considerable bearish price movement over the last year, financial results, and technical analysis, we propose a "Watch" rating on the stock at its closing price of USD 1.31, as of 05^th May 2022.

Technical Analysis Summary

* Closing price as of 05^th May, 2022.

Investors can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Technical Indicators Defined: -

Support: A level where-in the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest.

Resistance: A level where-in the stock prices tend to find resistance when they are rising, and the uptrend may take a pause due to profit booking or selling interest.

Stop-loss: It is a level to protect further losses in case of unfavorable movement in the stock prices. 

Note 1: The reference data in this report has been partly sourced from REFINITIV.  

Note 2: Investment decisions should be made depending on the investors' appetite for upside potential, risks, holding duration, and any previous holdings. Investors can consider exiting the stock if the Target Price mentioned as per the valuation has been achieved and subject to the factors discussed above. 

Note 3: The report publishing date is as per the Pacific Time Zone.

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