Note 8 - Equity-accounted Investment

6 Months Ended

Jan. 31, 2022

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 8: EQUITY-ACCOUNTED INVESTMENT

As at January 31, 2022, we owned 15,000,000 shares of Uranium Royalty Corp. (“URC”), representing a 16.2% ( July 31, 2021: 18.1%) 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 the three and six months ended January 31, 2022. Should URC's outstanding options and warrants be fully exercised, UEC's ownership interest would decrease from 16.2% to 13.5%.

URC is a public company listed on the TSX Venture Exchange with the trading symbol “URC.V” and on NASDAQ with the trading symbol “UROY”. As at January 31, 2022, the fair value of our investment in URC was approximately $48.8 million.

During the six months ended January 31, 2022, the change in carrying value of the equity-accounted investment is summarized as follows:

Balance, July 31, 2021	$	20,729,674
Share of income from URC		182,717
Gain on dilution of ownership interest		2,572,182
Translation loss		(474,741	)
Balance, January 31, 2022	$	23,009,832

For the three and six months ended January 31, 2022 and 2021, income (loss) from our equity-accounted investment consisted of the following:

	Three Months Ended January 31,					Six Months Ended January 31,
	2022			2021		2022		2021
Share of income (loss) from URC	$	(651,996	)	$	600,913	$	182,717	$	(102,692	)
Gain on dilution of ownership interest		653,728			-		2,572,182		-
Total	$	1,732		$	600,913	$	2,754,899	$	(102,692	)

For the three and six months ended January 31, 2022, we recorded a gain on dilution of ownership interest of $653,728 and $2,572,182, respectively, as a result of URC issuing shares under its at-the-market offering and the exercise of certain URC stock options and share purchase warrants.

For the three and six months ended January 31, 2022, we recorded translation losses of $617,910 and $474,741 (three and six months ended January 31, 2021: translation gains of $486,038 and $548,799), respectively, as a result of translating the ending balance of the equity-accounted investment denominated in Canadian Dollars to U.S. Dollars using the respective period end exchange rates, which was included in other comprehensive (loss) income in our condensed consolidated statements of operations and comprehensive loss.