Note 8 - Equity-accounted Investments

6 Months Ended

Jan. 31, 2023

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 8:          EQUITY-ACCOUNTED INVESTMENTS

As at January 31, 2023, we owned 15,000,000 shares of Uranium Royalty Corp. (“URC”), representing a 15.1% ( July 31, 2022: 15.5%) interest in URC. In addition, two of our officers are members of URC’s board of directors, and one of which 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, 2023. Should URC’s outstanding options and warrants be fully exercised, the Company’s ownership interest would decrease from 15.1% to 12.7%. 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, 2023, the fair value of our investment in URC was approximately $42.5 million ( July 31, 2022: $43.7 million).

As at January 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.

During the three and six months ended January 31, 2023, we incurred $357 and $751, respectively, primarily on exploration expenditures that UEX incurred on behalf of JCU, 50% of which are recoverable.  As at January 31, 2023, the amount owing from JCU totaled $346 ( July 31, 2022: $Nil)

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

Balance, July 31, 2022	$	24,177
Addition from UEX Acquisition		24,502
Capital contribution to JCU		588
Share of losses		(701	)
Gain on dilution of ownership interest in URC		616
Foreign exchange difference		(1,600	)
Balance, January 31, 2023	$	47,582

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

	Three Months Ended January 31,						Six Months Ended January 31,
	2023			2022			2023			2022
Share of income (loss)	$	(506	)	$	(652	)	$	(701	)	$	183
Gain on dilution of ownership interest		390			654			616			2,572
Total	$	(116	)	$	2		$	(85	)	$	2,755