Rare Element Resources Ltd. (NYSE MKT: REE and TSX: RES) (hereinafter the "company"), one in the field of mineral Raw Materials The Company, which is committed to developing the Bear Lodge Critical Rare Earth Project (hereinafter referred to as the "Project"), today announced that it has unaudited its consolidated balance sheet for the 31. March 2014 ended three-month period on Form 10-Q www.sec.gov and www.sedar.com submitted.
"Our company continues to draw industry insiders' attention to the quality of our deposit and the progress we make in its development," said Randall J. Scott, President and Chief Executive Officer. "During the quarter, we conducted additional research into our proprietary technology and refined the process further, reducing the associated investment and operating costs. We have used the products we have obtained in these studies to provide samples and to advance discussions with potential customers. We have begun a study on the benefits of additional downstream deposition, either independently or as a joint venture. And we have continued to gather data that is crucial for incorporating the revised performance study into the project; these are expected to be available around the middle of the year. Importantly, in April, the US Forest Service held scoping meetings in the community and collected comments from interested groups to feed into the project when setting up the Environmental Impact Statement ("EIS"). We believe that this advance, subject to timely approval and funding, should allow us to put the next mine into production for the area Rare earth to become in North America. "
financial results (Please note that all financial results published by the company are expressed in US dollars.)
For tax purposes, the company is run as an exploration company, which means it has no income from mining-related activities at this point in time. Net loss for the quarter ended March 31, 2014 was $ 4,4 million or $ 0,09 per share, resulting in a net loss of $ 4,4 million or $ 0,10 Dollars per share for the same period in 2013. The main factors behind the constant annual results were:
- a reduction in the company's administrative expenses to $ 0,3 million, primarily due to lower stock-based compensation expenses, and
- a favorable change in the exchange rate of $ 0,5 million,
- outweighed by increased exploration and appraisal expenses of $ 0,9 million as the company advanced the updated feasibility study and continued to test the process recovery technology at the pilot facility.
cash balances
The Company had cash and other liquidity of $ 31 million as of March 2014, 19,8, compared to $ 23,9 million on December 31, 2013. Net cash used during the quarter of $ 4,1 million Dollars were primarily spent on additional testing at the pilot facility, work to support the updated feasibility study, and general administrative expenses. Cash and other liquidity as of March 31, 2014 is deemed sufficient to continue our ongoing exploration and development plans through the end of 2014.
We assume that during the remainder of the year:
- submit an update to the feasibility study about mid-year,
- start work on a final feasibility study in the second half of the year,
- Contribute to the work of the US Forest Service and the third party contractor to further develop the draft EIS on the project and request additional permits and licenses as needed;
- continue with our initial analysis of the benefits of continued subsequent separation, including identifying potential technology partners
- Talk to potential buyers based on the quality of our over 97 percent pure, near-thorium-free total rare earth concentrate.
"With our stable measured and indicated resources, our focus now is on determining how to deliver the highest levels of business profitability to our shareholders," said Paul H. Zink, senior vice president and chief financial officer. "The updated feasibility study will take into account the many refinements in technology and mining that we have seen over the past 18 months, as well as reflecting the current conditions in the rare earth market. As we continue to keep track of the many moving parts of the rare earth industry, we believe we have a particular advantage in the market because of the elemental distribution of our project. "
The unaudited quarterly statement is available through the Canadian Securities and Exchange Commissionwww.sedar.com and the US Securities and Exchange Commission SEC underwww.sec.gov visible. It is also available on the company's website at www.rareelementresources.com.
Rare Element Resources Ltd. is a publicly traded mineral resource company specializing in the exploration and development of rare earth element deposits, particularly those with a significant proportion of critical rare earths. The company is currently driving the development of the Bear Lodge project in northeastern Wyoming. Bear Lodge is an area of significant mineral resources that contains many of the lesser-known, more valuable critical rare earths. These are used in electronic devices, fiber optic products, laser systems for the health and armaments sector as well as in many emerging environmental technologies such as hybrid cars, solar modules and wind turbines. Work related to the approval and feasibility of the project is currently underway.
For additional information, visit the company's website atwww.rareelementresources.com or from Robbin Lee on Tel. + 1 720-278-2462 or below [email protected].
Forward-looking statements
This press release contains forward-looking statements within the meaning of US and Canadian securities laws. Except for historical facts, certain information contained herein is forward-looking statements. Forward-looking statements are typically made by our use of certain terms, such as "will," "believe," "may," "expect," "should," "seek," " foresee "," plan "," have the potential "or" intend ", or characterized by the discussion of strategies or intentions. Such forward-looking statements include statements about the timing and expected results of a revised performance study, the process tests and expected outcomes, the results anticipated during the drilling, the approval process, and the progress and future project development plans. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause our actual results or performance to be materially different from the results or achievements expressed or implied by such forward-looking statements. Factors that may cause a significant variance in actual results include, but are not limited to, the progress of our Bear Lodge project, variability in demand and price of rare earth products, the success of the tested process technology, and the results of geological evaluations and operations, the timing of events and unexpected events on the Bear Lodge property, the delay or absence of regulatory approvals and approvals, changes in the US and Canadian securities markets, and general economic conditions. We make no representation that future developments to which the Company is exposed will be commensurate with the events anticipated by management. Please also read the discussion of these and other factors in our interim report on Form 10-K for the half-year to 31. December 2013. We anticipate that the above estimates regarding development plans, technologies and other procedures, time horizons and financial needs will change as new information becomes public and actual results may differ materially from those estimates. While we reserve the right to do so at any time, we assume no obligation to update any forecasts at any given time or as a result of a particular event. Investors and other readers are cautioned that the forecasts in this press release are for the sole discretion of management on the date of their release.
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