Rare Element Resources (REE)

Business description

Rare Element Resources is a mineral resource company currently advancing the development of the Bear Lodge rare earth oxide project in Wyoming, US.

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Stock data

Market cap.US$57.7m
Last closeUS$1.210
High / Low (52 weeks)US$3.3 / US$1.2
Stock market listingNYSE, TSX
Forecast net cash (US$m)19.5
Forecast gearing ratio (%)N/A
TeamResources - Mining

Price performance

Relative *(11.2)(14)(49.8)

* % Relative to local index

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Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2012A 0.0 (15.5) (15.2) (34.2) N/A N/A
2013A 0.0 (19.4) (19.3) (45.1) N/A N/A
2014E 0.0 (18.1) (18.2) (39.0) N/A N/A
2015E 0.0 (19.5) (19.6) (37.4) N/A N/A

Last updated on 19/06/2014

Investment summary

Rare Element Resources (REE) is in the process of developing the Bear Lodge rare earth oxide (REO) project in Wyoming, US. REE has announced improved potential recoveries relating to its proprietary extraction technology, with a concentrate purity of 97% REOs. The project's measured and indicated resource has been increased by 10% as a result of additional drilling. The EIS process is underway and the initial scoping stage of the EIS has been completed. The project is large, with expected output of 10,400tpa of REOs over a potential 40-year life of mine. The ore body is enriched with heavy rare earth elements and REOs, considered critical by the US Energy and Defence departments. However, it has yet to sign up an offtake partner. Our DCF-based company valuation, at a 10% discount rate, is US$5.29/share.

Last updated on 30/06/2014

Industry outlook

Rare Element Resources is well positioned to benefit from the global move to de-risk access to rare earth oxides by diversifying production away from China.

Last updated on 30/06/2014

Key management

Randy Scott , CEO
Paul Zink, CFO
Robbin Lee, IR

Company address

225 Union Blvd
Suite 250
CO 80228
United States
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