| Canada Rare Earth Generated Net Income in Fiscal Year 2023 August 1, 2023
VANCOUVER, BRITISH COLUMBIA - Canada Rare Earth Corp. ("Canada Rare Earth" or the "Company") (TSX.V: LL) is pleased to announce revenues of $5,375,513 and net income of $171,267 earned during the year ended March 31, 2023. Audited financial statements and the management discussion and analysis have been filed on SEDAR.
Anthony Wong, chief financial officer of the Company, highlighted, “revenues increased substantially this year (more than 10 times the 2022 revenues) as we were able to deliver more product volume to our customer base which remains committed to buy from us on a long term basis. From a cost perspective, we were able to improve our sales/cost margins from the prior fiscal year while holding our personnel, consulting and office and administration costs to an increase of 28%. Non-cash costs of share based compensation and depreciation decreased by 12% or $49,236 to $332,074 for the year. As a result, we generated $394,482 of income from operations after adding back interest expenses and the non-cash expenses compared to a loss of $668,665 in the prior year calculated on a similar basis.
Additionally, Mr. Wong continued, “we earned $235,575 of other income comprised of a gain from the sale of a property, consulting services fees, foreign exchange gains and expense reimbursement, offset by $23,474, being our share of the costs of development in Brazil, resulting in a net other income of $212,099 for the year. In the prior year, we earned other income of $71,231, comprised of expense recovery and foreign exchange gains, offset by $4,516 being our share of the costs of development in Brazil and an impairment loss of plant and equipment of $15,336, resulting in a net other income of $51,379.”
The net working capital position improved by nearly $500,000 to a deficiency of $406,354 at March 31, 2023 compared to a deficiency of $899,895 at the prior year end. Excluding amounts owing to related parties, our net working capital would have been a surplus of $182,273 as of March 31, 2023. Our cash position at March 31, 2023 was $220,630 compared to $76,982 at March 31, 2022 and our total assets were $2,274,797, an increase of 90% over last fiscal year.
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