Westwater Resources Inc. (NYSE American: WWR) is a mineral resource company that develops graphite resources for use in the battery industry. The company is largely focused on its Coosa Project, a graphite resource in Alabama. Through its subsidiary, Alabama Graphite, the company extracts and processes natural flake-graphite for battery applications.
The global battery market is expanding with high demand created by the increased use of smartphones and wearables, laptops, tablets, electric vehicles, and other battery-operated devices. The market is likely to expand at a compound annual growth rate of 14.1% up until 2027. Westwater Resources is expecting to capitalize on the growth in demand. It is developing the capacity to deliver high-margin products for battery manufacturers and could contribute to the production of over 85,000 electric vehicles per year by 2023.
Like many of its bargain peers, this stock is highly speculative. Its success relies on both the success of the Coosa Project, as well as continued growth in demand for battery technologies. The latter can almost be taken for granted, while the former is unproven. The risk is somewhat mitigated by the low price. Investors seeking a ground-up investment in the battery market can consider this stock. A small holding could generate strong returns if Westwater Resources can meet its executive targets.
- 1 Year Price Growth: 96%
- YTD Price Growth: 26%
- 3 Month Price Growth: 81%
All information is based on current and historical market data, as well as publicly available financial data. As with any financial decision, your own research is important. Stock market outcomes can never be 100% accurately predicted. Familiarity with historical data, individual industries, and individual stocks is key to developing a robust portfolio. Note that stock prices can fluctuate rapidly during trading sessions.