Tue, May 13, 7:04 PM (40 days ago)
**Rare Element Resources Ltd. (RELXF) Q1 2025 Financial Summary** Rare Element Resources Ltd. (RELXF) reported a net loss of $2,395,000 for Q1 2025, compared to a net loss of $3,626,000 in Q1 2024. The company had no revenue for the quarter. Key financial metrics and operational updates include: **Financial Health:** - **Cash Position:** Cash and cash equivalents decreased to $24,402,000 from $26,732,000 in Q4 2024. - **Working Capital:** Working capital was $22,383,000, down from $24,821,000 in Q4 2024. - **Total Assets:** Total assets were $27,332,000, down from $29,685,000 in Q4 2024. - **Total Liabilities:** Total liabilities were $2,539,000, up from $2,501,000 in Q4 2024. **Performance Metrics:** - **Operating Expenses:** Total operating expenses were $2,672,000, down from $3,630,000 in Q1 2024. - **Non-operating Income:** Non-operating income was $277,000, up from $4,000 in Q1 2024. - **Cash Flow:** Net cash used in operating activities was $2,269,000, up from $784,000 in Q1 2024. **Profit Margins:** - **Net Margin:** The net margin was -100% for Q1 2025, indicating ongoing losses. **Earnings Changes:** - **Earnings per Share (EPS):** Basic and diluted EPS was -$0.00, compared to -$0.01 in Q1 2024. **Quarterly Performance Discussion:** - **Demonstration Plant:** The company continued work on the Demonstration Plant, with operations expected to commence in Q4 2025 and extend into 2026. Several design and equipment issues were identified, leading to an as-built design review. - **Funding:** The company received $2,000,000 from the Wyoming Energy Authority (WEA) grant in Q1 2025. Additional funding is expected from the WEA and other sources. - **Cost Increases:** The Demonstration Plant project costs have increased due to inflation and other factors, with the company expecting to cover additional costs above the revised budget of $66,000,000. **Trends and Uncertainties:** - **Market Risks:** The company faces uncertainties related to the supply and demand for rare earth elements, regulatory changes, and geopolitical factors. - **Future Operations:** The company will need substantial additional funds for the permitting, development, and construction of the Bear Lodge REE Project. Failure to secure funding could lead to curtailment or suspension of operations. **Future Operations Impact:** - **Strategic Transactions:** The company is exploring strategic transactions and additional funding sources, including a potential loan from the Export-Import Bank of the United States (EXIM Bank). - **Government Support:** The U.S. government has issued executive orders to support the development of a domestic rare earth supply chain, which could benefit the company's operations.