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Financial report summary
?Competition
PCTRisks
- We have no revenues from operations and expect to incur losses for a significant period of time. Any future revenues and profits are uncertain.
- Our largest shareholder beneficially owns a majority of our common shares, has significant influence on, and control over the outcome of, our major corporate decisions, including veto power over some matters, and could take actions that may not be viewed favorably by certain other shareholders, any of which actions could adversely affect the market price of our common shares.
- By granting a license in our intellectual property rights, we may be limited in our ability to protect our intellectual property rights, which could adversely impact our competitive position or results of operations.
- We have suspended our federal and state licensing, permitting progression for our Bear Lodge REE Project, and there is a risk to the resumption of those efforts in a timely and cost-effective manner.
- Our ability and timing to exercise our right to purchase certain non-mineral lands for stockpile storage and processing operations is uncertain.
- We have no history of producing mineral products from our properties.
- The planned development of our Bear Lodge REE Project involves numerous uncertainties that could affect the feasibility or profitability of the project.
- Joint ventures and other partnerships may expose us to risks.
- Subject to further financing, and progression and outcome of the Demonstration Plant, we may commence a FS on our Bear Lodge REE Project, and the results of this FS are uncertain.
- Our viability as a rare earth company depends, in large part, on the financing, licensing, permitting, development and operation of our Bear Lodge REE Project, which is our only rare earth project.
- Increased costs could affect our ability to bring the Bear Lodge REE Project into production and, once in production, to be profitable.
- A future pandemic may have an adverse impact on our business.
- We expect to rely on our proprietary technology and processes to further our Bear Lodge REE Project.
- Our mineral resource estimate may be inaccurate and any material change in this estimate could affect the viability of placing our property into production.
- The historical mineral resource estimates for our Projects are not considered current, need to be updated, and should not be relied upon.
- We depend on key personnel, and the absence of any of these individuals could adversely affect our business.
- U.S. investors may not be able to enforce their civil liabilities against us or our directors, controlling persons and officers.
- We believe that we were a “passive foreign investment company” (“PFIC”) for the year ended December 31, 2023, and could be a PFIC in subsequent years, which could have adverse U.S. federal income tax consequences for U.S. shareholders.
- We may be adversely affected by fluctuations in demand for, and prices of, rare earth products.
- An increase in the global supply of rare earth products, dumping and/or predatory pricing by our competitors may materially adversely affect our ability to raise capital, develop our Bear Lodge REE Project or operate profitably.
- The success of our business may depend, in part, on the establishment of new uses and markets for rare earth products.
- We are subject to significant governmental regulations, including permitting, licensing and approval processes, that affect our operations and could impact the cost and timing of conducting our business.
- Our activities are subject to environmental risks and compliance with environmental laws and regulations that are increasing and costly.
- A shortage of equipment and supplies could adversely affect our ability to operate our business.
- Mineral exploration and development and mining are potentially hazardous and subject to conditions or events beyond our control, which could have a material adverse effect on our business or plans.
- Mineral exploration and development is highly speculative, and certain inherent risks could have a negative effect on our business.
- Title to our Bear Lodge Property may be subject to other claims, or we may lose our interest in our claims, which could affect our property rights and claims.
- Our operations are subject to significant uninsured risks that could negatively impact future profitability as we maintain limited insurance against our operations.
- Increased competition could adversely affect our ability to attract necessary capital funding.
- Land reclamation requirements for our properties may be burdensome or expensive.
- We may elect to deregister our common shares under the Exchange Act. Deregistration would result in less disclosure about us and may negatively affect the liquidity and trading prices of our common shares.
- We do not currently intend to pay cash dividends.
- Future sales of our securities in the public or private markets could adversely affect the trading price of our common shares or our ability to continue to raise funds in new equity offerings.
- Price volatility of our publicly traded securities could adversely affect investors’ portfolios.
- Because our common shares are not listed on a national securities exchange, a broker-dealer may find it more difficult to trade our common shares, and an investor may find it more difficult to acquire or dispose of our common shares in the secondary market.
- Market factors outside of our control could have significant adverse impacts on our business, operations and/or prospects.
- Our directors, officers and consultants may be engaged in other businesses. Potential conflicts of interest or other obligations of directors, officers and consultants could interfere with corporate operations.
- We are subject to the risk of litigation, the causes and costs of which are not always known.
- We depend upon information technology systems, which are subject to cyber-attacks, disruption, damage, or failure and have risks associated with implementation and integration.
Management Discussion
- Our consolidated net loss for the three months ended March 31, 2024 was $3,626, or $0.01 per share, compared with our consolidated net loss of $2,222, or $0.01 per share, for the same period in 2023. See our discussion below for the primary drivers of this change. As an exploration stage company, we had no properties in production and generated no revenues during either period.
- Our exploration and evaluation costs totaled $2,903 for the three months ended March 31, 2024, compared with $1,510 for the same period in 2023. This increase of $1,393 was largely attributable to the activities associated with our Demonstration Plant project as work progressed under the Cost Share Agreement. See Note 4 to the Consolidated Financial Statements for a detailed discussion of this Cost Share Agreement.
- Our corporate administrative costs decreased by $43 over the comparative three-month period, falling from $742 for the three months ended March 31, 2023 to $699 for the three months ended March 31, 2024. This decrease was largely driven by the decrease in our stock-based compensation of $154 over the comparative three-month period, partially offset by an increase in consulting fees.