Note 7 - Equity-Accounted Investments

3 Months Ended

Oct. 31, 2024

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 7: EQUITY-ACCOUNTED INVESTMENTS

As at October 31, 2024, we owned 17,978,364 shares of Uranium Royalty Corp. ("URC"), representing a 14.4% ( July 31, 2024: 14.8%) interest in URC.  In addition, two of our executive officers are members of URC’s board of directors.  Furthermore, one of these executive 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, 2024.  Should URC’s outstanding options and warrants be fully exercised, the Company’s ownership interest would decrease from 14.4% to 13.1%.  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, 2024, the fair value of our investment in URC was approximately $49.98 million ( July 31, 2024: $43.33 million).

As at October 31, 2024, we owned 50% of the outstanding shares of JCU (Canada) Exploration Company Limited (“JCU”) acquired through our acquisition of UEX Corporation completed on August 19, 2022 (the “UEX Acquisition”).  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 $9 in exploration expenditures on behalf of JCU for the three months ended October 31, 2024.  As at October 31, 2024, the amount receivable from JCU totaled $5 ( July 31, 2024: $6).

During the three months ended October 31, 2024, the changes in carrying value of our equity-accounted investments are summarized as follows:

	Investment in
	URC			JCU			Total
Balance, July 31, 2024	$	34,978		$	23,831		$	58,809
Capital contribution		-			538			538
Share of loss		(62	)		(419	)		(481	)
Gain on dilution of ownership interest		5			-			5
Foreign exchange difference		(253	)		(180	)		(433	)
Balance, October 31, 2024	$	34,668		$	23,770		$	58,438

For the three months ended October 31, 2024 and 2023, income (loss) from our equity-accounted investments consisted of the following:

	Three Months Ended October 31,
	2024			2023
Share of income (loss)	$	(481	)	$	1,038
Gain on dilution of ownership interest		5			421
Total	$	(476	)	$	1,459