Rare Element Resources Ltd.

What they do

The company's main assets are its proprietary rare earth processing, beneficiation, and separation technology and its 100% interest in the Bear Lodge Property, a group of unpatented mining claims and adjacent private property in northeast Wyoming held through subsidiary Rare Element Resources, Inc. It operates a Demonstration Plant to prove the technical and economic feasibility of its extraction technology on high-grade sample material from Bear Lodge, and it has restarted federal and state permitting and licensing for the project. The company also holds the Sundance Gold Project, which has been on hold since 2011.

Revenue drivers

• Demonstration Plant operations — No revenue is generated today; the plant is intended to produce up to 10 tons of NdPr oxide during its operations phase and to inform the design and cost estimate for a full-scale facility.
• Bear Lodge REE Project — A planned mine and hydrometallurgical plant that the company describes as one of the highest-grade REE deposits identified in North America with a favorable distribution of critical rare earth elements; development is subject to permitting, feasibility, financing, and board approval.
• Sundance Gold Project — A 100% owned gold asset containing a historical inferred mineral resource that has been on hold since 2011; management may explore options to advance or monetize it given higher gold prices.
• Government and shareholder funding — The company is funded by a Department of Energy cost-share award, a Wyoming Energy Authority grant, and equity raised from its majority shareholder affiliate and rights offerings rather than from sales.

Recent performance

Reported revenue was $0.00 for the 2025 fiscal year and for each of the quarters ended June 30, 2025 through March 31, 2026. Annual net loss narrowed to $4.9 million in 2025 from $18.5 million in 2024, with diluted EPS of -$0.01 versus -$0.04. Operating cash flow was negative $7.1 million in 2025, an improvement from negative $10.6 million in 2024. As of June 30, 2026, the company reported total assets of $49.6 million, total liabilities of $1.7 million, shareholder equity of $48.0 million, and cash and equivalents of $26.8 million.

Strategy

Management's primary focus is operating the Demonstration Plant and advancing Bear Lodge permitting and licensing, which it expects to continue into early 2028. Demonstration Plant operations formally commenced in March 2026 after design and equipment issues forced an as-built design review; full end-to-end processing is now expected to begin in the third quarter of 2026 and run for up to 12 months. The company estimates total Demonstration Plant costs from inception through completion at approximately $82.0 million, funded partly by the DoE cost-share award and a $30.97 million gross 2026 rights offering that closed March 4, 2026. It also plans to apply the as-constructed plant beyond NdPr separation to heavy rare earth elements and possibly third-party feed sources, and to restart detailed engineering for a mine and commercial plant if conditions are met.

Risks

• No revenue and recurring losses — The company reported $0.00 revenue for fiscal 2025 and the four most recent quarters, and has recorded net losses every year from 2021 through 2025.
• Additional funding required — Management states that even with cash on hand and remaining DoE funds, the company will still require additional funding to design, construct, and operate the Bear Lodge REE Project.
• Demonstration Plant delays and cost inflation — Design and equipment issues identified in early 2025 delayed formal operations to March 2026 and pushed full end-to-end processing to the third quarter of 2026, while project costs have risen due to corrective actions, upgrades, and inflation.
• Limited control over the DoE relationship — The DoE agreement is with General Atomics, and the company states it does not have direct control over the DoE relationship, invoicing, or disposition of equipment post-operations, and does not control contractor disputes.

Outlook

Management expects full end-to-end processing at the Demonstration Plant to commence in the third quarter of 2026 and continue for up to 12 months, producing up to 10 tons of NdPr oxide, with licensing and permitting activities continuing into early 2028. The company anticipates that all permits and licenses for Bear Lodge could be received within the next 24 months under U.S. federal streamlining measures, and it may receive approximately $3.7 million remaining from the DoE under the current cost-share award. It states it will still need additional funding beyond current resources and expected DoE receipts.