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 revenues at this time. The net loss for the quarter ended June 30, 2015, totaled $2.1 million, or $0.04 per share, compared with a net loss of $3.1 million, or $0.06 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, the result of a reduction in exploration and technical and economic evaluation work and a focus on permitting and separation work;
- Lower corporate administrative costs of $0.3 million, primarily due to the Company's cost-containment efforts and a reduction in stock-based compensation;
- Partially offset by an unfavorable variance in currency translation of $0.2 million.
- A decrease in exploration and evaluation expenses of $2.5 million;
- Lower corporate administrative cost of $0.6 million;
- Partially offset by an unfavorable variance in currency translation and unrealized gains on derivatives, collectively $0.2 million.
During the remainder of the year, we expect to:
- Support the U.S. Forest Service in their preparation of the EIS and ROD on the Project. The draft EIS is expected in the second half` of 2015 and will be followed by a public comment period;
- Continue elemental separation test work with completion of pilot plant testing expected by the end of 2015;
- Continue to work with regulatory agencies on permit applications filed in the second quarter as well as submit applications for other relevant permits/licenses in a timely manner with the goal of having all the necessary permits/licenses at the same time as the final ROD, currently expected in the second half of 2016;
- Initiate certain engineering studies, including geotechnical confirmation and condemnation drilling, to support the next phase of engineering; and
- Continue our discussions with potential offtake partners, including providing upgraded, separated product samples and regular Project updates.
The unaudited quarterly financial statements are available through the Canadian securities regulatory authorities at www.sedar.com, and with the U.S. Securities and Exchange Commission at www.sec.gov. They are also available on the Company's website at www.rareelementresources.com.Rare Element Resources Ltd. is a publicly traded, strategic materials company focused on delivering rare earth products for technology and defense applications by advancing the Bear Lodge Critical Rare Earth Project 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 an affiliate 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. For additional information, please visit the Company's website at www.rareelementresources.com or contact Robbin Lee at 720-278-2462 or firstname.lastname@example.org. 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 expecting timing and outcomes relating to state and federal permit applications and approvals, metallurgical and separation test work progress and outcome, feasibility study timing and outcomes, rare earth price fluctuations and demand and expectations regarding financing needs and the Company's expectations regarding its ability to raise capital.
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, delay or failure to receive government approvals and permits; 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 and timing; results from geological evaluations and programs; timing of and unexpected events at the Bear Lodge property and in connection with construction of the pilot plant; changes in U.S. and Canadian securities markets; and our ability to raise additional financing necessary to construct the pilot plant and 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 Unite 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.