Corporate Update - November 2018
December 3, 2018
Canada Rare Earth – In the Business of Rare Earths
November 2018 Corporate Update
Vancouver, British Columbia: Canada Rare Earth Corp. (“Canada Rare Earth” or the “Company”) (TSX.V: LL) is developing an international rare earth business based on our commodity-trading platform and existing, developing and planned rare earth processing facilities.
September 30, 2018 Quarterly Report
We filed our financial statements and management's discussion and analysis for the period ending September 30, 2018. The reports are available under the Company's profile on SEDAR (www.sedar.com) and on the Company's website (www.canadarareearth.com).
Financial highlights for the three months ended September 30, 2018 include revenues of $310,000 and net income and comprehensive income of $232,000.
Important achievements during November 2018 include:
Strategic Relationship with Talaxis Limited
Our strategic and financing relationship with Talaxis Limited (“Talaxis”), a wholly owned subsidiary of the large Asian-based commodity trading company, Noble Group Limited, continues to gain momentum on a number of fronts including:
- Solidifying new and existing sources of supply chains in Asia, Southeast Asia, North and South America, and Africa; and
- Laos rare earth refinery – working together to obtain the final operating permit which will allow us to exercise the option to acquire 60% of the refinery;
- Recently presented opportunity to participate in an additional rare earth refinery currently in construction – Canada Rare Earth is taking the lead on this initiative while allowing Talaxis the opportunity to take a position in the opportunity.
Rare Earth Supply Chain
Demand - Our customer base requirement of 1,000 metric tons per month of rare earth concentrate remains steady with key customers requesting additional (20%) material.
Supply - We are working to increase supply on an aggressive, managed basis to meet customer demand through developing arrangements with a number of businesses in each of the following categories:
- Tailings from various mining operations;
- Heavy mineral sands operations;
- Green field opportunities with a particular focus on licensed, near-term production;
- Existing stock-piles; and
- Rare earth mining opportunities.
We are intending to acquire one or more properties which will develop into dedicated and proprietary near to mid-term source(s) of supply.
Trading Business Activity and Results – since beginning our rare earth trading platform two years ago we generated $2.3 million of revenues from sales of rare earth concentrates and oxides to Asia, Europe and North America. Cost of sales totalled $2.2 million including $109,419 amortization which, if set aside, resulted in an adjusted gross profit of $190,419 (8.3% of revenues). We expect the percentage to increase in the near future as costs currently include conservative estimates relating to a particular initiative and intangible assets are nearly fully amortized. We also expect volumes to increase as we solidify and increase our supply sources.
Rare Earth Production – Enhancement and Separation
Our two key refinery initiatives continue to advance. We will provide details as soon as practical but are generally unable to do so at this time due to the sensitive nature of discussions.
Financing for Capital Projects and Working Capital
We are engaged with prospective financiers in support of our capital projects and business initiatives. The discussions are becoming more specific as we select our proprietary supply sources and as we further define the required financing to support our two refinery initiatives.
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 organizations.
On behalf of the Board
Tracy A. Moore, CEO and Peter Shearing, COO
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:
Tracy A. Moore
Chief Executive Officer
Chief Operating Officer
Tel: (604) 638-8886