enCore Energy (TSXV: EU) posted a gross loss in the third quarter. Permitting delays in South Texas held back extraction, forcing the company to buy every pound it delivered into its contracts on the market, paying more for that material than it earned from selling it.
That purchased material pushed cost of sales to US$17.4 million for the three months ended September 30, more than offsetting an 88% rise in revenue to US$16.7 million from US$8.9 million a year earlier. The result was a gross loss of US$0.8 million, compared with a gross profit of US$3.9 million in the third quarter of 2025.
Losses on the company’s securities portfolio widened the gap further down the income statement. The net loss attributable to enCore rose to US$33.9 million, or US$0.17 per share, from US$4.8 million, or US$0.03 per share. That figure included a US$17.0 million realized loss on marketable securities, partly offset by a US$5.7 million unrealized gain.
Sponsored · Cambria Gold Mines
The balance sheet thinned over the quarter as well. Unrestricted cash fell to US$5.1 million from US$21.8 million at the end of June. Marketable securities dropped to US$33.6 million from US$52.2 million after enCore distributed Verdera Energy Corp. shares worth US$8.4 million to its shareholders. Working capital stood at US$47.3 million.
Deliveries reached 200,000 pounds of uranium, up from 130,000 pounds a year earlier. Purchased pounds made up 560,000 of the 685,000 sold through the first nine months, compared with 360,000 of 485,000 at the half year mark, so none of the third quarter volume came from the company’s own wellfields. Extraction had already fallen to 131,274 pounds in the first half from 317,613 pounds a year earlier.
The reliance on purchased supply shows clearly in the per pound figures. enCore realized an average of US$83.46 per pound, up from US$68.28, but its weighted average cost of uranium sold rose to US$87.22 from US$38.35. Over nine months, purchased uranium cost US$83.01 per pound and extracted pounds cost US$60.74, including cash costs of US$37.75, up from US$26.20.
Chief Executive Officer Rich Little said 2026 “has been a challenging year for enCore, and we have responded by reducing costs,” pointing to a July workforce reduction that cut headcount by roughly 20%, along with reduced rig activity.
The Alta Mesa wellfield 3 Extension and the first phase of Upper Spring Creek are built and waiting on final state approvals, and both are expected to start operating before year end. Wellfield 8 is slated for early 2027. Dewey Burdock in South Dakota secured Bureau of Land Management approval of its plan of operations in June, and state permitting is still underway.
enCore Energy last traded at $0.82 on the TSX Venture.
