enCore Energy (EU) risk factors, FY2025 10-K

Other

1. 01The following is a summary of some of the risks and uncertainties that could materially adversely affect our business, financial condition and results of operations. You should read this summary together with the more detailed description of each risk factor contained below36% rewritten

Risks related to enCore’s Business and Operations

1. 02We are an exploration stage company with a history of negative operating cash flows and we may never develop or be unable to maintain positive cash flow from our mining activities31% rewritten
2. 03We may need additional financing in connection with the implementation of our business and strategic plans from time to time
3. 04We have experienced negative cash flows from operations and may need additional financing in connection with the implementation of our business and strategic plans from time to time
4. 05Servicing our debt requires a significant amount of cash, and we may not have sufficient cash flow from our business operations to pay our debtNew
5. 06Our corporate strategy includes acquisitions of mining assets and businesses. Such acquisitions are subject to risks and we may not realize the anticipated benefits of an acquisition, which could impair our results of operations, financial condition, cash flows and liquidity
6. 07Our properties do not contain Mineral Reserves under S-K 1300, and some of the Company’s properties, projects and facilities may not be economic at any point in time or at all
7. 08Mining on properties having no known Mineral Resources or Mineral Reserves is inherently speculative and may not prove to be economic at any point in time or at all
8. 09We may not realize any or all of the anticipated benefits from the Alta Mesa Project22% rewritten
9. 10the Company’s ongoing relations with Boss with respect to the joint venture in the Alta Mesa Project20% rewritten
10. 11We depend on key personnel, and our success will depend on our continued ability to retain and attract such qualified personnel
11. 12Certain directors and officers may be subject to conflicts of interest with respect to the Company due to their relationship with other resource companies
12. 13Fluctuations in the fair value of our marketable equity securities could materially affect our results of operations, financial condition, and cash flowsNew

Risks related to our Industry

1. 14There are risks associated with the exploration of, development of, and extraction from mineral properties33% rewritten
2. 15climate conditions, which can be abated through safety training, adherence to high safety standards and the use of modern communication technologiesNew
3. 16The nature of our use of independent contractors to conduct drilling rig operations presents inherent risks of loss, including weather-related risks, that could adversely affect our results of operations
4. 17We are subject to the risks and hazards normally encountered by companies in the mineral exploration and extraction industry
5. 18The Company risks potential for obsolescence, unexpected maintenance costs, dependence on the lessor's financial stability, potential for damage or loss of equipment, and not having full control over asset usage due to lease terms
6. 19Economic extraction of minerals from uranium deposits may not be commercially viable
7. 20Estimation of Mineral Resources is subjective and uncertain
8. 21No assurances can be given that future mineral production estimates will be achieved
9. 22regulatory restrictions imposed by government agencies
10. 23Our business relies on the use of drilling rigs operated by independent contractors to conduct exploration activities, and as such, their operating expense includes fixed costs that may not decline in proportion to decreases in rig utilization and day rates
11. 24Shortages of drilling contractors, drilling supplies or other key materials could adversely affect our operations
12. 25No assurance can be given that estimates of commodity prices used in preliminary economic assessments will actually be realized
13. 26Projects may not advance or achieve production if key permits are not obtained or retained
14. 27Native American tribes may be involved in the permitting process, which could cause delays or increased expenses
15. 28Opposition to mining may disrupt our business activities
16. 29Permits received are subject to expiration and we may not be able to obtain, maintain or amend rights, authorizations, licenses, permits or consents required for our operations
17. 30The title to our mineral property interests may be challenged
18. 31The procurement of mining interests and retaining skilled employees is highly competitive26% rewritten
19. 32The uranium industry is highly competitive, and we may not be successful in acquiring additional contracts and projects
20. 33Nuclear energy competes with other sources of energy and is subject to public acceptance of nuclear energy as a means of generating electricity
21. 34The Company’s operations are sensitive to the market price of uranium, which may be volatile
22. 35Changing global and regional political and economic conditions could adversely impact our businessNew
23. 36Hedging activities may not be successful
24. 37We currently are subject to, and in the future may be subject to, litigation, disputes or regulatory inquiries for a variety of claims, which could adversely affect our results of operations, harm our reputation or otherwise negatively affect our businessNew
25. 38Worldwide demand for uranium is directly tied to the demand for electricity produced by the nuclear power industry, which is also subject to extensive government regulation and policies, and any change in these regulations or policies may have a negative impact on enCore’s business or financial condition
26. 39Insurance may not be available to cover the gamut of risks associated with mineral exploration, development and mining
27. 40We rely on contractors and experts in our operations, which could subject the Company to liability that could adversely impact the Company’s operations and financial condition
28. 41Extraction, capital and operating cost estimates may be inaccurate
29. 42Increased exposure to foreign exchange rate fluctuations may adversely affect our costs, earnings and value of some of our assets, including our common shares21% rewritten
30. 43We utilize novel mining methods for extraction at our properties, which may not yield anticipated results28% rewritten
31. 44We are subject to technical innovation and obsolescence
32. 45There is no liquid public market for the sale of uranium. The uranium futures market on the Chicago Mercantile Exchange does not provide for physical delivery of uranium, only cash on settlement
33. 46The international nuclear fuel industry, including the supply of uranium concentrates, is relatively small compared to other minerals, and is generally highly competitive and heavily regulated
34. 47Possible amendments to the general mining law could make it more difficult or impossible for us to execute our business plan
35. 48There are risks associated with the Company’s joint venture operations and projects20% rewritten
36. 49From time to time, the Company may enter into other joint venture or shared ownership arrangements with third parties to develop and/or operate its projects

Risks Related to Taxation

1. 50We are subject to Canadian tax on our worldwide income
2. 51Dividends, if ever paid, on the common shares are subject to Canadian withholding tax
3. 52Changes in tax laws may affect us and our shareholders

Risks Related to enCore’s common shares

1. 53The issuance of additional common shares may dilute shareholders’ interest in the Company, including pursuant to the conversion of our Convertible Senior Notes, and may affect the trading price of our common shares 79% rewritten
2. 54enCore may also issue additional common shares in the future pursuant to proposed acquisitions and on the exercise of its outstanding stock options and warrants
3. 55The capped call transactions related to our Convertible Senior Notes may affect the value of our common sharesNew
4. 56Securities markets have experienced a high level of price and volume volatility, and the market price of securities of many companies has experienced wide fluctuations which have not necessarily been related to the operating performance, underlying asset values or prospects of such companies47% rewritten
5. 57enCore has never paid dividends and does not currently intend to do so in the foreseeable future. If our share price does not appreciate, our investors could potentially lose on their investment in our common shares
6. 58Our common shares are listed on Nasdaq, which subjects us to various listing standards, noncompliance of which could result in the delisting of our common shares, which could result in lower trading volumes and liquidity in the United States

General Risks

1. 59Global financial conditions and risks could materially impact our ability to raise equity or obtain debt and impact global supply chains, which could adversely impact the Company’s operations and financial condition
2. 60General inflationary pressures may impact the Company’s costs and affect our results of operations24% rewritten
3. 61We are dependent on information technology systems, which are subject to certain risks, including cybersecurity risks and data leakage risks associated with implementation and integration56% rewritten
4. 62prosecution, as well as fines and penalties, litigation, loss of licenses or permits and other collateral consequences and reputational harmNew
5. 63We are a “smaller reporting company” under the federal securities laws and will be subject to reduced public company reporting requirementsNew
6. 64The SEC’s disclosure requirements for Mineral Reserves and Mineral Resources, as codified in Subpart 1300 of Regulation S-K 1300, create ambiguity for issuers required to comply with both the requirements of S-K 1300 and NI 43-101, and may result in increased compliance costs for the Company
7. 65U.S. investors may not be able to obtain enforcement of civil liabilities against the Company27% rewritten
8. 66Changes in accounting rules and other policy or regulatory changes could occur at any time and could impact us in significantly negative ways that we are unable to predict or protect against
9. 67Our proprietary data, technology and intellectual property may be compromised or lost, which could result in decreased competitive advantage and/or loss to the value of such assets
10. 68Investors may experience future dilution as a result of additional debt and equity offerings