Note 11 - Equity-Accounted Investment

12 Months Ended

Jul. 31, 2024

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 11: EQUITY-ACCOUNTED INVESTMENT

As at July 31, 2024, we owned 17,978,364 shares of Uranium Royalty Corp. (“URC”), representing a 14.8% ( July 31, 2023: 14.9%) 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 2024.  Should URC’s outstanding options and warrants be fully exercised, UEC’s ownership interest would decrease from 14.8% to 13.2%.

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, 2024, the fair value of our investment in URC was approximately $ 43.3 million ( July 31, 2023 - $34.2 million).

As at July 31, 2024, 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 $63 in exploration expenditures on behalf of JCU for the year ended  July 31, 2024 ( July 31, 2023: $1,667).  As at July 31, 2024, the amount receivable from JCU totaled $6 ( July 31, 2023: $201).

During Fiscal 2024, Fiscal 2023 and Fiscal 2022, the changes in carrying value of our equity-accounted investment are summarized as follows:

	Investment in
	URC			JCU			Total
Balance, July 31, 2021	$	20,730		$	-		$	20,730
Share of income		153			-			153
Gain on dilution of ownership interest		3,973			-			3,973
Foreign exchange difference		(679	)		-			(679	)
Balance, July 31, 2022		24,177			-			24,177
Addition from UEX Acquisition		-			24,502			24,502
Capital contribution		-			1,415			1,415
Share of income (loss)		414			(2,062	)		(1,648	)
Gain on dilution of ownership interest		654			-			654
Foreign exchange difference		(634	)		(356	)		(990	)
Balance, July 31, 2023		24,611			23,499			48,110
Addition		9,238			-			9,238
Capital contribution		-			2,876			2,876
Share of income (loss)		2,032			(1,439	)		593
Gain on dilution of ownership interest		424			-			424
Foreign exchange difference		(1,327	)		(1,105	)		(2,432	)
Balance, July 31, 2024	$	34,978		$	23,831		$	58,809