Name: RARE ELEMENT RESOURCES LTD Q4 2014 Earnings Call
Start: 2015-03-13T00:00:00.000Z

Executive Summary

Q4 2014 net loss was $2.9M ($0.06 per share), improving from $5.7M ($0.12) in Q4 2013 and better than Q3 2014’s $3.6M loss ($0.08), reflecting reduced exploration and admin costs .
Year-end cash and equivalents were $10.1M, down from $12.9M at Q3 and $23.9M at year-end 2013, highlighting ongoing burn and funding needs .
Permitting timeline slipped: Draft EIS now expected in H2 2015 (from spring), final ROD in H1 2016; earliest commissioning remains mid-2017, pushing project de-risking milestones into 2015–2016 .
Strategic progress continued in test work (elemental separation) and feasibility activities; alternatives selection by USFS enables near-term permit applications .
Consensus estimates were unavailable from S&P Global for Q4 2014; comparisons to Street are N/A at this time (consensus unavailable via S&P Global).

What Went Well and What Went Wrong

Lower quarterly and annual losses driven by reduced exploration/evaluation spend and corporate admin costs; Q4 net loss fell to $2.9M from $5.7M YoY, with exploration down $2.4M and admin down $0.3M in the quarter .
Continued technical progress: “We will look to expand on the positive results we have had to date on elemental separation test work and will continue the additional technical work necessary for a feasibility study.” — Randall J. Scott, CEO .
USFS alternatives selection completed; company expects to apply for other state and federal permits over the next few months, advancing the permitting pipeline .

EIS timeline delays: Draft EIS now H2 2015 vs original schedule; final ROD H1 2016. Permitting application timing slid to Q1 2015; commissioning pushed to mid-2017 (from late 2016) .
Material funding need: Company expects to raise $45–$60M over the next two years to complete EIS, FS, detailed engineering, and a 1–3 tpd demonstration plant .
Cash drawdown: Year-end cash fell to $10.1M from $23.9M prior year; net cash used in 2014 was $13.8M (though improved vs $23.6M in 2013) .

Metric	Q2 2014	Q3 2014	Q4 2014
Revenue ($USD Millions)	$0.0	$0.0	$0.0
Net Loss ($USD Millions)	$3.1	$3.6	$2.9
Diluted EPS ($USD)	-$0.06	-$0.08	-$0.06
Cash and Equivalents ($USD Millions)	$16.1	$12.9	$10.1

Metric	Q4 2013	Q4 2014
Net Loss ($USD Millions)	$5.7	$2.9
Diluted EPS ($USD)	-$0.12	-$0.06
Cash and Equivalents ($USD Millions)	$23.9	$10.1

Notes:

Company states no production-related revenue at this time; revenue is effectively nil across periods .
Q2 and Q3 net cash used were $3.7M and $3.2M, respectively (as disclosed), underscoring burn rate ahead of 2015 milestones .

Metric	Period	Previous Guidance	Current Guidance	Change
Draft EIS availability	2015	Spring 2015 (USFS intended to make up time)	Second half of 2015	Lowered/Delayed
Final Record of Decision (ROD)	2016	N/A (not previously specified)	First half of 2016	New
State/federal permit applications	Q4 2014 → Q1 2015	Expected in Q4 2014	Now expected Q1 2015	Delayed
Commissioning date	2016–2017	Late 2016	Mid-2017 (earliest)	Lowered/Delayed
Financing plan	2014–2016	N/A	Raise $45–$60M for EIS, FS, engineering, demo plant	New specificity

(Company did not furnish an earnings call transcript; themes reflect press releases.)

Topic	Previous Mentions (Q2 2014, Q3 2014)	Current Period (Q4 2014)	Trend
Permitting/EIS timeline	Draft EIS anticipated early 2015; scoping completed in April; public scoping summary in July . Alternatives analysis delays; permit applications slipped; USFS intent to make up time	Draft EIS anticipated H2 2015; ROD H1 2016	Slower; calendar pushed right
Commissioning timing	N/A in Q2	Shift from late 2016 to mid-2017	Later start
Elemental separation test work	Ongoing analysis and identification of potential technology partners	Expand on positive results; additional technical work for feasibility study	Continued progress
Demonstration plant	Plan for 1–3 tpd demonstration plant to minimize start-up risk	Reiterated as part of 2015 programs	Ongoing preparation
Financing	N/A in Q2 ; noted cost containment	Needs $45–$60M over the next two years	Higher funding requirement clarity
Offtake engagement	Discussions with potential partners based on +97% pure TREO concentrate	Distribution of separated products to potential offtake partners	Commercial outreach ongoing

“We made great progress in advancing our Bear Lodge Project in 2014… we intend to apply for other necessary permits over the next few months. With its ideal location, large long-lived resource, heavy concentration of the more valuable, critical rare earth elements and solid project economics, we believe the Bear Lodge Project is in an excellent position to help rebuild America’s rare earth supply chain…” — Randall J. Scott, President & CEO .
“During the quarter, we released a very positive Preliminary Feasibility Study… success in our test work on an innovative approach to separation and further optimizing of our proprietary recovery process — both of which will contribute to lower costs.” — Randall J. Scott .
“We have seen some delays by the U.S. Forest Service… This has impacted the Company’s ability to complete the application process for permits… we are shifting our anticipated timing for Project commissioning from late 2016 to mid-2017.” — Jaye T. Pickarts, COO .

No Q4 2014 earnings call transcript was found; the company appears to have furnished results via press releases without hosting a public call during the period.
(No transcript available in the document set; results sourced from 8-K press releases .)

Wall Street consensus estimates for Q4 2014 were unavailable from S&P Global at the time of this analysis; therefore, explicit comparisons to Street EPS and revenue are N/A.
We recommend assuming no formal analyst coverage for quarterly estimates given the company’s exploration-stage status and lack of production-related revenue .

Regulatory path is the principal near-term driver: watch for Draft EIS in H2 2015 and final ROD in H1 2016; slippage directly affects commissioning and cash runway .
Commissioning target moved to mid-2017; de-risking hinges on demonstration plant execution and feasibility work milestones .
Cash burn persists: year-end cash $10.1M vs $23.9M prior year; funding plan of $45–$60M over two years will be a key overhang until capital is secured .
Technical progress continues (elemental separation and process optimization), which, if validated at demo scale, may improve project economics and partner interest .
No revenue yet; focus remains on permitting and development — traders should expect news-driven volatility around permitting milestones and funding announcements .
Cost discipline helped narrow losses; continued containment may extend runway ahead of permitting and demo plant milestones .
Offtake engagement remains ongoing; distribution of separated product samples could act as validation signals to the market and potential financiers .