RARE ELEMENT RESOURCES LTD Releases Q2 2024 10-Q Report

RARE ELEMENT RESOURCES LTD, a company focused on the extraction and processing of rare earth elements (REEs), has released its Form 10-Q report for the second quarter of 2024. The report provides insights into the company's financial performance and operational progress, particularly highlighting advancements in its Demonstration Plant and the Bear Lodge REE Project.

Financial Highlights

• Net loss: $6,179 thousand for the three months ended June 30, 2024, compared to $2,744 thousand for the same period in 2023, reflecting increased exploration and evaluation costs.
• Net loss: $9,805 thousand for the six months ended June 30, 2024, compared to $4,966 thousand for the same period in 2023, primarily due to higher costs associated with the Bear Lodge REE Project and the Demonstration Plant.
• Loss per share - Basic and Diluted: $(0.01) for the three months ended June 30, 2024, consistent with the same period in 2023.
• Loss per share - Basic and Diluted: $(0.02) for the six months ended June 30, 2024, consistent with the same period in 2023.
• Interest income: $371 thousand for the three months ended June 30, 2024, compared to $139 thousand for the same period in 2023, due to higher average cash balances.
• Interest income: $452 thousand for the six months ended June 30, 2024, compared to $261 thousand for the same period in 2023, reflecting increased cash holdings from the 2024 Rights Offering.

Business Highlights

• Demonstration Plant Progress: The company is focused on the engineering, permitting, licensing, construction, and operation of a Demonstration Plant to process and separate rare earth elements (REEs) from high-grade sample materials extracted from the Bear Lodge REE Project. The plant's construction is nearing completion, with operations expected to follow for up to 12 months.
• Bear Lodge REE Project: The Bear Lodge REE Project consists of several large, disseminated REE deposits, including neodymium-praseodymium (NdPr), which are among the highest-grade deposits identified in North America. The project is a key focus for the company, with potential plans for a mine and separation plant.
• Cost Increases and Funding: Due to inflationary pressures and design enhancements, the Demonstration Plant project cost estimate increased from $43.8 million to approximately $53.6 million. The company completed a 2024 Rights Offering, raising approximately $35.8 million to fund these cost increases and other corporate purposes.
• WEA Grant: The company received a $4.4 million grant from the Wyoming Energy Authority (WEA) to support the Demonstration Plant. The first $2 million was received in January 2024, with the remaining $2.4 million contingent on future milestones.
• General Atomics Partnership: The company is part of a consortium led by General Atomics, which includes a cost-share agreement with the Department of Energy (DoE) for the Demonstration Plant. The DoE's funding covers 50% of the project's costs.
• Future Outlook: The company anticipates further losses as it continues to develop its business. It will require substantial additional funds for the Bear Lodge REE Project's full-scale production facility. If additional financial resources are not secured, the company may need to curtail or suspend its operational plans.

SEC Filing: RARE ELEMENT RESOURCES LTD Releases Q2 2024 [ OTC:REEMF ] - 10-Q - Aug. 07, 2024