Note 7 - Equity-accounted Investments

6 Months Ended

Jan. 31, 2024

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 7: EQUITY-ACCOUNTED INVESTMENTS

During the six months ended January 31, 2024, we participated in an equity financing and acquired an additional 1,930,750 common shares of Uranium Royalty Corp. ("URC") at a price of $2.94 per share for total consideration of $5,676.

As at January 31, 2024, we owned 16,930,750 shares of URC, representing a 15.0% ( July 31, 2023: 14.9%) interest in URC.  In addition, two of our officers are members of URC's board of directors.  Furthermore, one of these 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 and six months ended January 31, 2024.  Should URC’s outstanding options and warrants be fully exercised, the Company’s ownership interest would decrease from 15.0% to 13.0%.  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 January 31, 2024, the fair value of our investment in URC was approximately $57.2 million ( July 31, 2023: $34.2 million) and the carrying amount of URC was $32.3 million ( July 31, 2023: $24.6 million).

As at January 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 $12 and $43 in exploration expenditures on behalf of JCU for the three and six months ended January 31, 2024. As at January 31, 2024, the amount receivable from JCU totaled $8 ( July 31, 2023: $201).

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

Balance, July 31, 2023	$	48,110
Addition in URC		5,676
Capital contribution to JCU		1,645
Share of income (loss) from URC and JCU		1,221
Gain on dilution of ownership interest in URC		431
Foreign exchange difference		(630	)
Balance, January 31, 2024	$	56,453

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

	Three Months Ended January 31, 2024					Six Months Ended January 31,
	2024		2023			2024		2023
Share of income (loss)	$	182	$	(506	)	$	1,221	$	(701	)
Gain on dilution of ownership interest		10		390			431		616
Total	$	192	$	(116	)	$	1,652	$	(85	)

Subsequent to January 31, 2024, we participated in an equity financing and acquired an additional 1,047,614 common shares of URC at a price of $3.40 per share for total consideration of $3.6 million.