Canada Rare Earth Corp V.LL

9 month revenues

[kingscorpion]

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.