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Financial Results of Operations for the Year Ended March 31, 2017

 

August 2, 2017

 

VANCOUVER, BRITISH COLUMBIA - Canada Rare Earth Corp. ("Canada Rare Earth" or the "Company") (TSX.V: LL) is pleased to announce the filing of the audited financial statements and related management discussion and analysis for the year ended March 31, 2017.

The financials and analysis can be found on our website (www.canadarareearth.com) and on SEDAR.com. They are are summarized and highlighted as follows:

Canada Rare Earth increased revenues by 75% and decreased the net loss and comprehensive loss for the year by 85%, respectively, compared to the prior year.

A summary of the revenues and expenses for the years ended March 31, 2017 and 2016 respectively is as follows:

 

2017

2016

Comment

Revenues

$161,000 

$92,000 

75% improvement

Cost of sales

   $114,000 

         -  

Consulting and wages    

   $214,000 

         $360,000 

Share based payments    

    $41,000 

         $116,000 

Travel    

     $47,000 

  

           $27,000 

Other    

   $127,000 

         $264,000 

Loss before other items    

$(382,000)

$(675,000)

43% improvement

Write-off exploration costs    

       - 

$(1,840,000)

Gain on sale

       - 

      

         $460,000 

Other, net

     $66,000 

    

$(80,000)

Net loss for the year

$(316,000)

$(2,135,000)

85% improvement

A summary of the balance sheets as at March 31, 2017 and 2016 respectively is as follows:

 

2017

 

2016

Current Assets

Cash and receivables

$129,000

$341,000

Deposits and prepaid

$180,000

$9,000

$309,000

$350,000

Non-current assets

Promissory note

  $1,596,000

$1,558,000

Intangibles and other

$290,000

$282,000

$1,886,000

$1,840,000

Total assets

$2,195,000

$2,190,000

Current liabilities

Accounts payable and accruals

$144,000

$26,000

Trade finance loans

$161,000

                 -  

$305,000

$26,000

Shareholders' equity

$1,890,000

$2,164,000

Total

$2,195,000

$2,190,000

 

Canada Rare Earth has arranged trade-financing loans to support approximately $150,000 per month of sales based on the payment terms currently in place with suppliers and the customer base. The amount of trade financing required by the Company is dependent on a number of factors including increasing frequency and and sizes of transactions and changing terms of payments and collections. Management is actively pursuing a larger and more permanent trade finance facility to support the Company’s growing revenues.

In the four months subsequent to the March 31, 2017 year-end, the Company completed more than $400,000 of sales of rare earth products and has placed deposits with suppliers in excess of $100,000.

Tracy A. Moore, CEO of Canada Rare Earth explained, “we have established a solid base and method of trading rare earths from which we are confidently gaining momentum. The trading activities are providing a positive contribution to our cash flow allowing our team additional resources to develop even more trading opportunities while we also focus on our key-value of acquiring and developing proprietary rare earth enhancement facilities.”

Salil Dhaumya, CFO of Canada Rare Earth added, “we are scheduling to issue the June 30, 2017 quarterly financial statements and management discussion and analysis by August 23, 2017. These reports will document the increasing momentum of our Company.”

On behalf of the Board

Tracy A. Moore, CEO and Peter Shearing, COO

ABOUT CANADA RARE EARTH CORP.

Canada Rare Earth is developing an international integrated business within the global rare earth industry. Our immediate key focus is to generate revenues and positive cash flow from a variety of profit centres in the rare earth production and sales chain by sourcing, adding value and selling rare earths in all stages and forms. We are in the process of establishing our own mining, concentrating and refinery capabilities in addition to working with affiliated and third party organization

"Neither the 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." The information contained herein contains "forward-looking statements" within the meaning of applicable securities legislation. Forward-looking statements relate to information that is based on assumptions of management, forecasts of future results, and estimates of amounts not yet determinable. Any statements that express predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance are not statements of historical fact and may be "forward-looking statements."  Forward-looking statements are subject to a variety of risks and uncertainties that could cause actual events or results to differ from those reflected in the forward-looking statements. Investors are cautioned against attributing undue certainty to forward-looking statements.  These forward-looking statements are made as of the date hereof and the Company does not assume any obligation to update or revise them to reflect new events or circumstances.  Actual events or results could differ materially from the Company's expectations or projections.”

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:

 

Tracy A. Moore

Chief Executive Officer

canadarareearth%23com|tmoore

Peter Shearing

Chief Operating Officer 

canadarareearth%23com|pshearing

Tel: (604) 638-8886

Website:  www.canadarareearth.com

 

 
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