Note 9 - Equity-accounted Investments

3 Months Ended

Oct. 31, 2022

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 9: EQUITY-ACCOUNTED INVESTMENTS

As at October 31, 2022, we owned 15,000,000 shares of Uranium Royalty Corp. (“URC”), representing a 15.4% ( July 31, 2022: 15.5%) interest in URC.  In addition, two of our officers are members of URC’s board of directors, and one of which is also an executive officer of URC. As a consequence, our ability to exercise significant influence over URC’s operating and financing policies continued to exist during the three months ended October 31, 2022.  Should URC's outstanding options and warrants be fully exercised, UEC's ownership interest would decrease from 15.4% to 12.9%. URC is a public company listed on the TSX Venture Exchange with the trading symbol “URC.V” and on NASDAQ with the trading symbol “UROY”. As at October 31, 2022, the fair value of our investment in URC was approximately $33.3 million ( July 31, 2022: $43.7 million).

As at October 31, 2022, we owned 50% of the outstanding shares of JCU (Canada) Exploration Company Limited (“JCU”) acquired through the UEX Acquisition completed on August 19, 2022. JCU is a private Canadian company engaged in the exploration and development of uranium assets in Canada. It has partnership and interests in 12 uranium exploration and development projects in the Athabasca Basin and Nunavut, including a 10% interest in Denison’s Wheeler River Project, a 30.1% interest in Cameco’s Millennium Project, a 33.8% interest in Orano’s Kiggavik Project and a 34.5% interest in UEX’s Christie Lake Project. The Company’s 50% interest in JCU is a joint venture, which is accounted for using the equity method.

During the three months ended October 31, 2022, we incurred $394 primarily on recoverable exploration expenditures with JCU.  As at October 31, 2022, the amount owing from JCU totaled $577 ( July 31, 2022: $Nil)

During the three months ended October 31, 2022, the change in carrying value of our equity-accounted investments is summarized as follows:

	In USD$
Balance, July 31, 2022	$	24,177
Investment in JCU (Note 3)		24,502
Share of loss from JCU		(598	)
Share of income from URC		403
Gain on dilution of ownership interest in URC		226
Foreign exchange difference		(2,637	)
Balance, October 31, 2022	$	46,073

For the three months ended October 31, 2022 and 2021, income (loss) from our equity-accounted investment consisted of the following:

	Three Months Ended October 31
	2022			2021
Share of income (loss)	$	(195	)	$	835
Gain on dilution of ownership interest in URC		226			1,918
Total	$	31		$	2,753