Rare Element Resources Reports Significant Financial Developments and Progress on Bear Lodge Rare Earth Elements Project

Rare Element Resources Ltd. reported significant financial developments for the period ending September 30, 2024. The company experienced a substantial increase in cash and cash equivalents, rising to $29.7 million from $3.6 million at the end of 2023. Total current assets also surged to $32.1 million, compared to $9.8 million previously, while total assets increased to $33.3 million from $10.7 million. Shareholders' equity rose to $29.1 million, up from $8.4 million at the end of 2023, reflecting a notable increase in common shares outstanding, which grew to 511.1 million from 212.9 million.

Operating expenses for the three months ended September 30, 2024, totaled $7.1 million, significantly higher than the $3.2 million reported for the same period in 2023. Exploration and evaluation expenses also increased to $6.5 million from $2.5 million year-over-year. For the nine-month period, total operating expenses reached $17.2 million, compared to $8.3 million in the prior year. Despite a rise in non-operating income to $2.3 million from $53,000, the company reported a net loss of $4.7 million for Q3 2024, compared to a loss of $3.1 million in Q3 2023. The nine-month net loss was $14.5 million, up from $8.1 million in the same period last year.

The company’s cash flow dynamics showed net cash used in operating activities increased to $9.2 million from $8.8 million year-over-year. However, net cash provided by financing activities surged to $35.3 million, primarily due to the 2024 Rights Offering, which generated gross proceeds of approximately $35.8 million. This marked a significant increase from just $23,000 in financing activities for the same period in 2023.

Strategically, Rare Element Resources is focused on advancing its Bear Lodge rare earth elements project in Wyoming. The company is working on a demonstration-scale processing and separation plant, with a revised budget of approximately $53.6 million, reflecting a 21% increase due to inflation and design enhancements. The Department of Energy has increased its funding commitment for this project, now totaling approximately $24.2 million. The company has also entered into various agreements, including a $4,400 grant from the Wyoming Energy Authority to support the demonstration plant.

In terms of management changes, Kelli Kast was appointed as Vice President, General Counsel, and Chief Administrative Officer, while Jaye T. Pickarts became Chief Operating Officer. The company is also preparing for the commencement of operations at the Demonstration Plant, with expectations to process and separate rare earth elements from stockpiled materials.