Note 8 - Equity-Accounted Investment

9 Months Ended

Apr. 30, 2023

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 8: EQUITY-ACCOUNTED INVESTMENTS

As at April 30, 2023, we owned 15,000,000 shares of Uranium Royalty Corp. (“URC”), representing a 15.0% ( July 31, 2022: 15.5%) interest in URC.  In addition, two of our officers are members of URC's board of directors, which consists of a total of five members. Furthermore, one of these officers also holds an executive position within URC. As a consequence, our ability to exercise significant influence over URC’s operating and financing policies continued to exist during the three and nine months ended April 30, 2023.  Should URC’s outstanding options and warrants be fully exercised, the Company’s ownership interest would decrease from 15.0% to 12.7%. 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 April 30, 2023, the fair value of our investment in URC was approximately $29.6 million ( July 31, 2022: $43.7 million).

As at April 30, 2023, 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. The Company’s 50% interest in JCU is a joint venture, which is accounted for using the equity method.

We incurred $813 and $1,564 in exploration expenditures on behalf of JCU for the three and nine months ended April 30, 2023, respectively. As at April 30, 2023, the amount receivable from JCU totaled $1,148 ( July 31, 2022: $Nil).

During the nine months ended April 30, 2023, the changes in carrying value of our equity-accounted investments are summarized as follows:

Balance, July 31, 2022	$	24,177
Addition from UEX Acquisition - JCU		24,502
Capital contribution to JCU		595
Share of losses		(1,609	)
Gain on dilution of ownership interest in URC		624
Foreign exchange difference		(2,403	)
Balance, April 30, 2023	$	45,886

For the three and nine months ended April 30, 2023 and 2022, income (loss) from our equity-accounted investments consisted of the following:

	Three Months Ended April 30,					Nine Months Ended April 30,
	2023			2022		2023			2022
Share of income (loss)	$	(908	)	$	801	$	(1,609	)	$	983
Gain on dilution of ownership interest		8			1,158		624			3,731
Total	$	(900	)	$	1,959	$	(985	)	$	4,714