Note 11 - Equity-Accounted Investment

12 Months Ended

Jul. 31, 2023

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 11: EQUITY-ACCOUNTED INVESTMENT

As at July 31, 2023, we owned 15,000,000 shares of Uranium Royalty Corp. (“URC”), representing a 14.9% ( July 31, 2022: 15.5%) 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 2023.  Should URC’s outstanding options and warrants be fully exercised, UEC’s ownership interest would decrease from 14.9% to 12.7%.

URC is a public company listed on the TSX with the trading symbol URC and on NASDAQ with the trading symbol UROY. As at July 31, 2023, the fair value of our investment in URC was approximately $34.20 million ( July 31, 2022 - $43.7 million).

As at July 31, 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 $1,667 in exploration expenditures on behalf of JCU for the year ended  July 31, 2023. As at July 31, 2023, the amount receivable from JCU totaled $201 ( July 31, 2022: $Nil).

During Fiscal 2023, Fiscal 2022 and Fiscal 2021, the changes in carrying value of our equity-accounted investment are summarized as follows:

Balance, July 31, 2020	$	11,515
Addition in URC		3,397
Share of income from URC		732
Gain on dilution of ownership interest in URC		4,473
Foreign exchange difference		613
Balance, July 31, 2021		20,730
Share of income from URC		153
Gain on dilution of ownership interest in URC		3,973
Foreign exchange difference		(679	)
Balance, July 31, 2022		24,177
Addition from UEX Acquisition - JCU		24,502
Capital contribution to JCU		1,415
Share of losses from URC and JCU		(1,648	)
Gain on dilution of ownership interest in URC		654
Foreign exchange difference		(990	)
Balance, July 31, 2023	$	48,110

During Fiscal 2023, Fiscal 2022 and Fiscal 2021, we recorded a gain on dilution of ownership interest of $654, $3,973 and $4,473, respectively, as a result of URC issuing more shares from its equity financings and the exercises of certain of URC’s share purchase warrants.