Note 9 - Equity-Accounted Investment

12 Months Ended

Jul. 31, 2022

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 9: EQUITY-ACCOUNTED INVESTMENT

As at July 31, 2022, we owned 15,000,000 shares of Uranium Royalty Corp. (“URC”), representing a 15.5% ( July 31, 2021: 18.1%) interest in URC.  In addition, two of our officers are members of URC’s board of directors, and one 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 Fiscal 2022.  Should URC’s outstanding options and warrants be fully exercised, UEC’s ownership interest would decrease from 15.5% to 13.0%.

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 July 31, 2022, the fair value of our investment in URC was approximately $43.7 million.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, the changes in carrying value of our equity-accounted investment are summarized as follows:

Balance, July 31, 2019	$	8,680
Share of loss from URC		(89	)
Gain on dilution of ownership interest		3,057
Translation loss		(133	)
Balance, July 31, 2020		11,515
Addition		3,397
Share of income from URC		732
Gain on dilution of ownership interest		4,473
Translation gain		613
Balance, July 31, 2021		20,730
Share of income from URC		153
Gain on dilution of ownership interest		3,973
Translation loss		(679	)
Balance, July 31, 2022	$	24,177

During Fiscal 2021, we participated in an equity financing and acquired an additional 1,000,000 common shares of URC at a price of CA$4.10 per share for total consideration of $3,397.

During Fiscal 2022, Fiscal 2021 and Fiscal 2020, we recorded a gain on dilution of ownership interest of $3,973, $4,473 and $3,057, respectively, as a result of URC issuing more shares from its equity financings and the exercises of certain of URC’s share purchase warrants.

During Fiscal 2022 and Fiscal 2020, we recorded a translation loss of $679 and $133, respectively, whereas during Fiscal 2021 we recorded a translation gain of $613, as a result of translating the ending balance of the equity-accounted investment denominated in Canadian Dollars to U.S. Dollars using the period end exchange rates, which was included in other comprehensive income (loss) in our Consolidated Statements of Operations and Comprehensive Income (Loss).