Note 7 - Equity-Accounted Investments

3 Months Ended

Oct. 31, 2023

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 7: EQUITY-ACCOUNTED INVESTMENTS

During the three months ended October 31, 2023, we participated in an equity financing and acquired an additional 1,930,750 common shares of URC at a price of $2.94 per share for total consideration of $5,676.

As at October 31, 2023, we owned 16,930,750 shares of Uranium Royalty Corp. (“URC”), representing a 15.1% ( July 31, 2023: 14.9%) interest in URC.  In addition, two of our officers are members of URC's board of directors.  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 months ended October 31, 2023.  Should URC’s outstanding options and warrants be fully exercised, the Company’s ownership interest would decrease from 15.1% to 13.0%.  URC is a public company listed on the Toronto Stock Exchange with the trading symbol “URC” and on NASDAQ with the trading symbol “UROY”.  As at October 31, 2023, the fair value of our investment in URC was approximately $48.42 million ( July 31, 2023: $34.2 million).

As at October 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 $30 in exploration expenditures on behalf of JCU for the three months ended October 31, 2023. As at October 31, 2023, the amount receivable from JCU totaled $9 ( July 31, 2023: $201).

During the three months ended October 31, 2023, the changes in carrying value of our equity-accounted investments are summarized as follows:

Balance, July 31, 2023	$	48,110
Addition in URC		5,676
Capital contribution to JCU		653
Share of income from URC and JCU		1,038
Gain on dilution of ownership interest in URC		421
Foreign exchange difference		(2,534	)
Balance, October 31, 2023	$	53,364

For the three months ended October 31, 2023 and 2022, income (loss) from our equity-accounted investments consisted of the following:

	Three Months Ended October 31, 2023
	2023		2022
Share of income (loss)	$	1,038	$	(195	)
Gain on dilution of ownership interest		421		226
Total	$	1,459	$	31