LAKEWOOD, COLORADO -- (Marketwire) -- 05/10/12 -- Rare Element Resources Ltd. (TSX:RES)(NYSE Amex:REE) (the "Company" or "Rare Element") announced that its unaudited consolidated financial statements and Form 10-Q for the third quarter ended March 31, 2012 have been filed on www.sedar.com and www.sec.gov.
All dollar amounts stated below are in United States dollars.
Third Quarter Ended March 31, 2012 Financial Highlights:
The net loss for the third quarter ended March 31, 2012 totaled $5.3 million or $0.12 per share as compared to a net loss of $1.6 million or $0.04 per share for the same period in 2011. The $3.7 million negative variance in net loss between the periods was due to the following:
-- Increased exploration spending at the Bear Lodge property ($1.5
-- Reduced foreign exchange gain due to the impacts on the Company's
Canadian dollar cash balances related to exchange rate fluctuations in
the US dollar on the balance sheet date ($0.9 million);
-- Increased corporate administrative expenses due to more employees ($0.7
-- Increased stock-based compensation expenses due to increased number of
options outstanding as a result of an increase in employees ($0.2
-- Negative variances in non-operating income and expenses amounted to $0.4
million and were the result of mark-to-market losses on purchase
warrants ($0.3 million) and decreased interest income ($0.1 million).
Cash and cash equivalents, and short-term investments at March 31, 2012 were $56.0 million compared to $59.5 million as of December 31, 2011. The $3.5 million decrease in cash and cash equivalents was primarily due to exploration and general & administrative spending.
Rare Element currently has 44.4 million common shares and 4.6 million options and warrants outstanding.
The unaudited financial statements are available through the Canadian securities regulatory authorities at www.sedar.com, and with the Securities and Exchange Commission at www.sec.gov. They are also available on the Company's website at www.rareelementresources.com.
Update on the Bear Lodge Project:
On April 12, 2012, we announced revised results of a preliminary feasibility study ("PFS") for the Bear Lodge Project. This revision supersedes the previous announcement made March 1, 2012. Several changes were made to optimize the Bear Lodge Project, including revised and improved estimates of both capital and operating costs. The revised and improved estimates are now based on an optimally-sized hydrometallurgical ("hydromet") plant.