Rare Element Resources Reports Q3 Results

Rare Element Resources (TSX:RES) released its results for the third quarter of 2015, reporting a net loss of $2.6 million for the quarter. As of September 30, the company had cash and equivalents of $6.2 million.
As quoted in the press release:

The Company does not have production-related revenues at this time. The net loss for the quarter ended September 30, 2015, totaled $2.6 million, or $0.05 per share, compared with a net loss of $3.6 million, or $0.08 per share, for the same period in 2014.  The key drivers behind the year-over-year decrease in net loss for the quarter were:

• A decrease in exploration and evaluation expenses of $0.8 million, from a reduction in exploration and technical and economic evaluation work with the focus shifting to permitting and separation testing; and
• Lower corporate administrative costs of $0.2 million, primarily due to the Company’s cost containment efforts and a reduction in stock-based compensation.

The consolidated net loss for the nine-month period ended September 30, 2015 was $7.1 million, or $0.14 per share, compared with $11.1 million, or $0.23 per share, for the same period in 2014.  The key drivers behind the decrease in net loss were:

• A decrease in exploration and evaluation expenses of $3.3 million;
• Lower corporate administrative cost of $0.8 million;
• Partially offset by an unfavorable variance in currency translation and unrealized gains on derivatives, collectively of $0.2 million.

Rare Earth Elements President and CEO, Randall Scott, said:

We are excited with the success at taking our innovative separation technology to the next level by completing the first phase of pilot plant testing.  This work confirmed our ability to upgrade the Bear Lodge concentrate to more than 99.9% pure while selectively removing 85% of the cerium and all the detectable thorium in the initial stage of separation using only three steps.  This also indicates a significantly more efficient and environmentally attractive process than traditional separation methods and sets an excellent foundation for the remaining separation test work. While permitting remains generally on track, the draft environmental impact statement (EIS) is now not expected until the end of the year, which likely means the final record of decision (ROD) will be in late 2016.  We continue to work closely with the relevant government agencies for timely completion of the process.

Click here for the full press release.