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Rare Element Resources Reports Year-End 2014 Financial Results

by User Not Found | Mar 12, 2015
Rare Element Resources reports year-end 2014 financial results and that the draft environmental impact statement is now anticipated in the second half of 2015 with project commissioning still expected as early as mid-2017.

Rare Element Resources Reports Year-End 2014 Financial Results

Draft Environmental Impact Statement Now Anticipated in the Second Half of 2015 with Project Commissioning Still Expected as Early as Mid-2017

March 12, 2015 – Lakewood, Colorado – Rare Element Resources Ltd. (NYSE MKT: REE and TSX: RES), a mineral resources company advancing development of the Bear Lodge Critical Rare Earth Project located in northeast Wyoming, reported today a net loss for the year ended December 31, 2014 of $14.0 million, or $0.29 per share, compared with a net loss of $22.2 million, or $0.48 per share, in the same period of 2013.  The net loss for the quarter ended December 31, 2014 was $2.9 million, or $0.06 per share, compared with $5.7 million, or $0.12 per share, for the same period in 2013. At December 31, 2014, the Company had cash and cash equivalents of $10.1 million, compared with $12.9 million at September 30, 2014 and $23.9 million at December 31, 2013. The Company has filed its Form 10K for the twelve-month period ended December 31, 2014 on www.sec.gov and www.sedar.com.

During the first quarter of 2015, the U.S. Forest Service (USFS), the lead agency on the environmental impact statement (EIS) for the Project, completed the alternatives selection process and began the impact analysis.  Using certain of the identified alternatives to modify its plan of operation, the Company now expects to make its application for some of the other required state and federal permits and licenses in the next quarter.  It also anticipates that the final record of decision (ROD), the decision document from the USFS, will be available in the first half of 2016, which would allow commissioning of the Project as early as mid-2017, subject to timely receipt of the necessary permits and licenses and financing.

“We made great progress in advancing our Bear Lodge Project in 2014 and are undertaking a number of programs in 2015 with the goal of maintaining our momentum,” stated Randall J. Scott, President and Chief Executive Officer. “We will look to expand on the positive results we have had to date on elemental separation test work and will continue the additional technical work necessary for a feasibility study.  We intend to do this while we continue to support efforts by the U.S. Forest Service to complete the EIS with the expectation that the draft will be available early in the second half of this year.  Now that the alternatives identification process has been completed, we intend to apply for other necessary permits over the next few months. With its ideal location, large long-lived resource, heavy concentration of the more valuable, critical rare earth elements and solid project economics, we believe the Bear Lodge Project is in an excellent position to help rebuild America’s rare earth supply chain, greatly reducing the Nation’s dependence on foreign sources.”

Quarter-End December 31, 2014 Unaudited Financial Results (Please note that financial results published by the Company are all stated in U.S. Dollars)

The Company does not have production-related revenue at this time. The net loss for the quarter ended December 31, 2014, totaled $2.9 million, or $0.06 per share, compared to a net loss of $5.7 million, or $0.12 per share, for the same period in 2013.  The $2.8 million decrease in consolidated net loss was primarily the result of:

  • A $2.4 million decrease in exploration and evaluation expense, primarily due to a reduction in drilling and metallurgical test work, as the Company continues to move the Bear Lodge Project toward development;
  • A $0.3 million decrease in corporate administrative costs, predominately related to stock-based compensation; and
  • A $0.1 million positive variance in the loss on currency translation.

Year-End December 31, 2014 Financial Results

The net loss for the year ended December 31, 2014 totaled $14.0 million, or $0.29 per share, compared with a net loss of $22.2 million, or $0.48 per share, in the same period of 2013.  The $8.2 million decrease in the consolidated net loss was primarily the result of:

  • A $5.5 million decrease in exploration and evaluation expense;
  • A $1.7 million decrease in corporate administrative costs, approximately half of which was related to stock-based compensation; and
  • A $1.0 million positive variance in the loss on currency translation.

Year-End Cash Balance

At December 31, 2014, the Company has cash and cash equivalents of $10.1 million, compared with $12.9 million at September 30, 2014 and $23.9 million at December 31, 2013. Cash and cash equivalents used during the year were $13.8 million, compared with $23.6 million in 2013.

Activities funded during 2014 included: engineering and trade-off studies necessary to complete a preliminary feasibility study and technical report, filed in October, on the Bear Lodge Project; test work on both the Company’s proprietary recovery process and initial work on elemental separation, which included the filing of additional patents; completion of an exploration trenching program that gathered valuable structural and geologic data as well as a near-surface, high-grade 1,000-ton bulk sample; baseline environmental data collection and other efforts to support the EIS underway and advance the permit application process for the Project; and general and corporate activities.  Activities to be funded in 2015 include: supporting advancement of the Project’s EIS, making the appropriate federal and state license and permit applications, continuing the evaluation of elemental separation and other evaluation, development and construction efforts as deemed necessary and as supported by the Company’s financial position.

Updated EIS Timeline

The USFS completed the alternatives selection process of the EIS in February and began the impact analysis. This process is likely to be approximately six months behind the original schedule supplied to the public by the USFS as part of scoping meetings conducted in April 2014.  While the Company is awaiting an updated timeline from the USFS, it now anticipates that the draft EIS will not be available until the second half of 2015.  As a result, the Company expects the final ROD to be delivered in the first half of 2016, which, pending receipt of all other permits and securing of financing, would allow the Company to begin commissioning the Bear Lodge Project as early as mid-2017.

Rare Element Resources Ltd. is a publicly traded mineral resource company focused on exploration and development of rare-earth element deposits, specifically those with significant distribution of critical rare earths.  The Company is advancing development of the Bear Lodge Project, located in northeast Wyoming.  Bear Lodge is a significant mineralized district containing many of the less common, more valuable critical rare earths that are essential for electronics, fiber optics, laser systems for health and defense, as well as many evolving green technologies, like hybrid cars, solar panels and wind turbines. Permitting and feasibility work on the Project continue to advance.  The Company is a member of the U.S. Department of Energy’s Critical Materials Institute, a combined government and private sector organization committed to eliminating supply chain issues for rare earths and other critical elements.  Please see CMI’s website at https://cmi.ameslab.gov/ for additional details on its mission and members.

For additional information, please visit the Company’s website at www.rareelementresources.com or contact Robbin Lee at 720-278-2462 or rlee@rareelementresources.com.

Forward Looking Statements

This news release contains forward-looking statements and forward-looking information within the respective meanings of securities legislation in the United States and Canada. Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward-looking statements are usually identified by our use of certain terminology, including "will", "believes", "may", "expects", "should", "seeks", "anticipates", "plans", "has potential to", or "intends" (including negative or grammatical variations thereof) or by discussions of strategy or intentions. Such forward-looking statements include statements regarding the expected timing and completion of permitting, technology test work and results, ability to attract offtake partners and the ability to finance planned activities.

Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements.

Factors that could cause actual results to differ materially include, but are not limited to, the progression plans for the Bear Lodge Project, the progress and results of the feasibility study, fluctuations in demand for, and price of, rare earth products; success of process technology under testing or development; results from geological evaluations and programs; timing of and unexpected events at the Bear Lodge property; delay or failure to receive government approvals and permits; changes in U.S. and Canadian securities markets; and our ability to raise additional financing necessary to conduct our business. There can be no assurance that future developments affecting the Company will be those anticipated by management. Please refer to the discussion of these and other factors set out in our filings made from time-to-time with the United States Securities and Exchange Commission, and the Canadian securities regulators, including without limitation, the Company’s most recent reports on Form 10-K and Form 10-Q. We do not undertake to update any statements or estimate at any particular time or in response to any particular event. Investors and others should not assume that any forecasts in this news release represent management's estimate as of any date other than the date of this news release.

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Rare Element Resources
Fact Sheet

Rare Element Resources
Technology Fact Sheet

Most Recent Presentation
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Open House – October 09, 2023

State and community leaders joined Senator Barrasso, Neal Blue and Brent Berg with the ceremonial groundbreaking shovel

Ceremonial groundbreaking with Senator Barrasso, state and community leaders, Neal Blue (GA) and Brent Berg (RER) 

The Company and General Atomics (GA), supported by state and community leaders, celebrated a ceremonial groundbreaking for their rare earth demonstration plant.

The presentation at the Open House made by Mr. Berg can be found here.

For a summary of the event, please click here.

Please click here to see a video replay from the Newcastle News Letter Journal of the event.

CEO Corner

Commentary from Kelli Kast,
Interim President, CEO and Director

Continuing Our Progress

As I step into the role of Interim President and Chief Executive Officer (“CEO”) for the coming weeks, I do so with confidence that we will seamlessly continue on the path the Board has set for us of progressing construction of the demonstration plant toward operations this summer, and in continuing to build awareness of the Company, the Bear Lodge Project, and the importance of establishing a secure domestic rare earth supply chain.

Please click here to read full content

Please click here to see appointed President and CEO Ken Mushinski's bio

Demo Plant Construction Update (2/20/24)

Utility Upgrades

Utilities Being Upgraded

Services to the site are being upgraded, including power, water and sewer, to support future plant operations.  Mild weather has allowed us to progress this and other outdoor work.

World-Class Technology Partner

General Atomics Fact Sheet
In 2017, an affiliate of General Atomics, one of the largest, most advanced technology companies in the world, took an equity position in Rare Element Resources.  Since that time, they have brought the full force of their technology development team enhance the Company's recovery/separation technology.
To learn more about General Atomics Click Here

Bear Lodge Panoramic
Sample Drilling
Core Samples

The Bear Lodge Project area is a significant mineralized district that contains one of the largest disseminated rare earth deposits in North America. This deposit contains many of the less common, more valuable rare earths that are essential for the magnet materials used in electronics, fiber optics, laser systems for health and defense, and many evolving green technologies, such as hybrid cars, solar panels and wind turbines. Rare Element Resources owns 100% of the Project. 

During the last few years, the Company, along General Atomics, whose affiliate is RER's majority shareholder, have been advancing their proprietary extraction/separation technology and have successfully produced commercial-grade neodymium/praseodymium (Nd/Pr) oxide in pilot-plant testing.  These materials are key components to the fast-growing, permanent magnet sector. The next step will be operations of a demonstration plant, which is currently under construction in Upton, WY.  Results generated from operating this plant will be used for the design and economic evaluation of a commercial rare earth processing facility. 

Project Highlights

  • Proprietary Rare Earth Extraction/Separation Technology – Successfully advanced the Company’s technology and produced neodymium/praseodymium (Nd/Pr) oxide in pilot-plant testing. Construction of a demonstration plant is currently underway to prove the scalability of the process and define the requirements for a commercial plant.
  • World-Class Technology Partner and Majority Shareholder – General Atomics, through its affiliate, is the majority shareholder in Rare Element Resources, is a technology leader with a proven track record of bringing new ideas to market.  Their understanding of the strategic role rare earths play in numerous advancing technologies makes them keenly aware of the need for a secure, domestic supply of rare earths. Their relationship within the U.S. Government have been essential to our ability to advance our technology.
  • Bear Lodge Project – Well-defined resource with excellent concentrations of the rare earth elements essential to high-strength, permanent magnets and the many industries that depend on them.  Two of those industries, electric vehicles and wind turbines, are expected to drive a doubling of demand for magnet materials in the next 10 years.
  • Strategic Location – Located in northeast Wyoming, the Bear Lodge Project has easy access to a major interstate, transcontinental rail, natural gas and low-power.  The area has existing infrastructure with a ready and skilled workforce.  The State of Wyoming has a rich history of mineral development and a pro-business focus, and its leaders are actively committed to economic diversification. 
  • Strong Federal and State Support – Both the Department of Energy (DOE) and the Wyoming Energy Authority (WEA) have shown their support for the Project through funding of over $26M for the demonstration plant.  The DOE continues to pursue ways to secure sources for material that will be key to industrial needs, especially those that support the country’s initiative of reducing carbon emissions, like electric vehicles and wind turbines. The WEA is supporting the State’s desire to diversify employment and understands that Wyoming can play a key role in developing a domestic supply chain – from minerals to magnets. 
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