Note 7 - Equity-accounted Investments

9 Months Ended

Apr. 30, 2024

Notes to Financial Statements

Equity Method Investments and Joint Ventures Disclosure [Text Block]

NOTE 7: EQUITY-ACCOUNTED INVESTMENTS

During the nine months ended April 30, 2024, we participated in equity financings 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 and an additional 1,047,614 common shares of URC at a price of $3.40 per share for total consideration of $3,562.

As at April 30, 2024, we owned 17,978,364 shares of URC, representing a 14.9% ( 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 nine months ended April 30, 2024.  Should URC’s outstanding options and warrants be fully exercised, the Company’s ownership interest would decrease from 14.9% to 13.2%.  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 April 30, 2024, the fair value of our investment in URC was approximately $41.2 million ( July 31, 2023: $34.2 million) and the carrying amount of URC was $38.7 million ( July 31, 2023: $24.6 million).

As at April 30, 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 $11 and $54 in exploration expenditures on behalf of JCU for the three and nine months ended April 30, 2024.  As at April 30, 2024, the amount receivable from JCU totaled $3 ( July 31, 2023: $201).

During the nine months ended April 30, 2024, the changes in carrying value of our equity-accounted investments are summarized as follows:

Balance, July 31, 2023	$	48,110
Addition in URC		9,238
Capital contribution to JCU		2,388
Share of income (loss) from URC and JCU		1,325
Gain on dilution of ownership interest in URC		3,633
Foreign exchange difference		(2,146	)
Balance, April 30, 2024	$	62,548

For the three and nine months ended April 30, 2024 and 2023, income (loss) from our equity-accounted investments consisted of the following:

	Three Months Ended April 30,					Nine Months Ended April 30,
	2024		2023			2024		2023
Share of income (loss)	$	104	$	(908	)	$	1,325	$	(1,609	)
Gain on dilution of ownership interest		3,202		8			3,633		624
Total	$	3,306	$	(900	)	$	4,958	$	(985	)