Canada Rare Earth Posts Record Revenues and Profits - Nine Months Ended December 31, 2022
Canada Rare Earth Posts Record Revenues and Profits
Nine Months Ended December 31, 2022
We are pleased to announce record revenues and profits while continuing to develop our property portfolio and extending processing capabilities.
“We are extremely pleased to be generating increasing levels of revenues, net income, and positive cashflow concurrent with executing our strategy to establish the Bom Futuro tailings asset, expand our property portfolio, and collaborate with a crown corporation to establish an in-country rare earth industry. One of our key criteria is ‘speed to revenues’ and, as such, we continue to focus on income generation while developing our property portfolio,” Tracy A. Moore, chief executive officer, emphasized.
Speeding to higher levels of revenues and increasing gross profits
Revenues for the nine months ended December 31, 2022 totalled $4,991,855, which were 12 times higher than revenues achieved in the comparable nine month period ($410,297) and nearly triple the combined revenues for the previous 24 months ($1,686,030).
Gross profit increased to an average of 19.5% of revenues compared to 16% achieved during the comparable period, even with the significantly increased level of revenues.
Achieving positive net income and generating cash from operations
Anthony Wong, chief financial officer, explained, “net operating income for the nine months ended December 31, 2022 was positive $125,705, which is an improvement of nearly $800,000 over the comparable nine months ended December 31, 2021. This was accomplished with significantly higher sales, a strong gross profit percentage, and maintaining our cost structure.
Operations generated positive cashflow of $581,380 during the past nine months, an improvement of over $500,000 compared to the nine months ended December 31, 2021.”
Our expanding mineral property portfolio
Peter Shearing, chief operating officer, elaborated on Canada Rare Earth’s property portfolio centered on the Bom Futuro tailings asset and several prospective properties.
“At Bom Futuro, we are making significant development strides towards the goal of establishing and commencing near term operations. We are excited about the quantities of essential and critical minerals contained in the tailings, including cassiterite/tin, zircon, ilmenite, and rare earths. Our activities include bulk tests, flow sheet development, equipment selection, and financial modelling. Permits for extraction activities are in place,” Mr. Shearing explained.
“We are approaching prospective financers for the funding required to acquire, install and commission the equipment for Bom Futuro’s near-term production and to support our intentions to acquire and develop certain targeted properties which we believe are rich in essential and critical minerals and could be major opportunities for our Company,” Mr. Moore added.
Joint venture with a crown corporation
Canada Rare Earth signed a memorandum of understanding with a government crown corporation to jointly establish an in-country rare earth industry. The first of five stages is complete, and the parties have agreed to proceed to Stage 2, which involves an increased level of detail and planning. Decisions will be made after each stage on whether to proceed to the following stage. Due to a confidentiality agreement we are unable to disclose additional particulars at this time.
The Laos refinery continues to be of interest, however, as it is still not permitted we have not made efforts recently to acquire the refinery.
About Canada Rare Earth Corp.
Canada Rare Earth Corp. is developing an international integrated business focusing on essential and critical minerals, including rare earths. Our strategy is to generate revenues and positive cash flow as we acquire and develop our own properties and establish value-add processing capabilities.
Certain Information
The Company’s quarterly report (financial statements and management discussion and analysis) for the nine months ended December 31, 2022 was recently filed on SEDAR.com.
Certain information included herein and in the recent filing may constitute forward-looking statements within the meaning of applicable laws and regulations. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, which could cause actual results to differ materially from those anticipated. We expressly disclaim any obligation to update forward-looking statements, unless so required by applicable law, and readers should read this news release with the understanding that actual future results may be materially different from those expected.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the ‘safe harbour’ provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
For more information on the Company, interested parties should review the Company's filings that are available at www.sedar.com.
“We are extremely pleased to be generating increasing levels of revenues, net income, and positive cashflow concurrent with executing our strategy to establish the Bom Futuro tailings asset, expand our property portfolio, and collaborate with a crown corporation to establish an in-country rare earth industry. One of our key criteria is ‘speed to revenues’ and, as such, we continue to focus on income generation while developing our property portfolio,” Tracy A. Moore, chief executive officer, emphasized.
Speeding to higher levels of revenues and increasing gross profits
Revenues for the nine months ended December 31, 2022 totalled $4,991,855, which were 12 times higher than revenues achieved in the comparable nine month period ($410,297) and nearly triple the combined revenues for the previous 24 months ($1,686,030).
Gross profit increased to an average of 19.5% of revenues compared to 16% achieved during the comparable period, even with the significantly increased level of revenues.
Achieving positive net income and generating cash from operations
Anthony Wong, chief financial officer, explained, “net operating income for the nine months ended December 31, 2022 was positive $125,705, which is an improvement of nearly $800,000 over the comparable nine months ended December 31, 2021. This was accomplished with significantly higher sales, a strong gross profit percentage, and maintaining our cost structure.
Operations generated positive cashflow of $581,380 during the past nine months, an improvement of over $500,000 compared to the nine months ended December 31, 2021.”
Our expanding mineral property portfolio
Peter Shearing, chief operating officer, elaborated on Canada Rare Earth’s property portfolio centered on the Bom Futuro tailings asset and several prospective properties.
“At Bom Futuro, we are making significant development strides towards the goal of establishing and commencing near term operations. We are excited about the quantities of essential and critical minerals contained in the tailings, including cassiterite/tin, zircon, ilmenite, and rare earths. Our activities include bulk tests, flow sheet development, equipment selection, and financial modelling. Permits for extraction activities are in place,” Mr. Shearing explained.
“We are approaching prospective financers for the funding required to acquire, install and commission the equipment for Bom Futuro’s near-term production and to support our intentions to acquire and develop certain targeted properties which we believe are rich in essential and critical minerals and could be major opportunities for our Company,” Mr. Moore added.
Joint venture with a crown corporation
Canada Rare Earth signed a memorandum of understanding with a government crown corporation to jointly establish an in-country rare earth industry. The first of five stages is complete, and the parties have agreed to proceed to Stage 2, which involves an increased level of detail and planning. Decisions will be made after each stage on whether to proceed to the following stage. Due to a confidentiality agreement we are unable to disclose additional particulars at this time.
The Laos refinery continues to be of interest, however, as it is still not permitted we have not made efforts recently to acquire the refinery.
About Canada Rare Earth Corp.
Canada Rare Earth Corp. is developing an international integrated business focusing on essential and critical minerals, including rare earths. Our strategy is to generate revenues and positive cash flow as we acquire and develop our own properties and establish value-add processing capabilities.
Certain Information
The Company’s quarterly report (financial statements and management discussion and analysis) for the nine months ended December 31, 2022 was recently filed on SEDAR.com.
Certain information included herein and in the recent filing may constitute forward-looking statements within the meaning of applicable laws and regulations. These forward-looking statements are not guarantees of future performance and involve risks and uncertainties, which could cause actual results to differ materially from those anticipated. We expressly disclaim any obligation to update forward-looking statements, unless so required by applicable law, and readers should read this news release with the understanding that actual future results may be materially different from those expected.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Forward-looking statements in this release are made pursuant to the ‘safe harbour’ provisions of the Private Securities Litigation Reform act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties.
For more information on the Company, interested parties should review the Company's filings that are available at www.sedar.com.
FOR FURTHER INFORMATION, PLEASE CONTACT:
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Tracy A. Moore Chief Executive Officer |
Peter Shearing Chief Operating Officer |
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Telephone: (604) 638-8886 Website: www.canadarareearth.com |
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