Oct 01st 2013 - Edison Investment Research today published a report on Rare Element Resources entitled "Bear Lodge Rare Earth Oxide Project". In summary, the report says:
Rare Element Resources (REE) is well positioned to benefit from the global move to de-risk access to rare earth oxides (REOs) by diversifying production away from China. REE is in the process of developing the Bear Lodge REO project in Wyoming, US. 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 REOs considered critical by the US Energy and Defence departments, underpinning the investment case. REE has developed a proprietary extraction technology, which should improve product quality and reduce the concentrate price discount. However, it has yet to sign up an off-take partner. Our DCF-based company valuation, at a 10% discount rate, is US$5.39/share.
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