MeritValue

RARE ELEMENT RESOURCES LTD

REEMFdata completeness 75%18 fiscal years on file

Data notes: no data for concept 'pretaxIncome'

The thesis, from the filings

RARE ELEMENT RESOURCES LTD earns about -55% on equity, but has diluted owners by 197% over 5 years — worth asking whether the growth reaches owners. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue————$01
Net income−$5.4M2−$9.43M3−$9M4−$18.5M5−$4.9M5
Operating cash flow−$2.84M6−$9.4M7−$11.7M8−$10.6M9−$7.12M9
Capital expenditure——$16,00010——
Free cash flow (derived)——−$11.7M8——
Total debt$1M11————
Cash & equivalents$22.2M12$15.5M13$3.63M14$26.7M15$19.3M15
Diluted shares173.5M212.5M257.1M498.1M516.1M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$0.43
your share of equity
Profit it earned you last year
−$0.09
Free cash flow it threw off
—
Debt you’d be carrying
—

10 shares is a claim on $0.43 of net worth that earned you −$0.09 last year.

iii. Is this a good business?
Moat signal · return on equity
-55% avg · 5y
FY21 -23%FY22 -56%FY23 -107%FY24 -68%FY25 -22%

It earned an average -55% on equity over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
+197% shares · 5y

Share count is up 197% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has held roughly steady.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
DCF · Growth Exit 5Y
not applicable
only 1 years of FCF (need ≥3) — model not applicable
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2025-12-31 · accession 0001419806-26-000004 (Revenues)
  2. 10-K · period ending 2021-12-31 · accession 0001419806-23-000005 (NetIncomeLoss)
  3. 10-K · period ending 2022-12-31 · accession 0001419806-24-000003 (NetIncomeLoss)
  4. 10-K · period ending 2023-12-31 · accession 0001419806-25-000004 (NetIncomeLoss)
  5. 10-K · period ending 2024-12-31 · accession 0001419806-26-000004 (NetIncomeLoss)
  6. 10-K · period ending 2021-12-31 · accession 0001419806-23-000005 (NetCashProvidedByUsedInOperatingActivities)
  7. 10-K · period ending 2022-12-31 · accession 0001419806-24-000003 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-12-31 · accession 0001419806-25-000004 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-12-31 · accession 0001419806-26-000004 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2023-12-31 · accession 0001419806-24-000003 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2021-12-31 · accession 0001419806-23-000005 (LongTermDebt)
  12. 10-K · period ending 2021-12-31 · accession 0001419806-23-000005 (CashAndCashEquivalentsAtCarryingValue)
  13. 10-K · period ending 2022-12-31 · accession 0001419806-24-000003 (CashAndCashEquivalentsAtCarryingValue)
  14. 10-K · period ending 2023-12-31 · accession 0001419806-25-000004 (CashAndCashEquivalentsAtCarryingValue)
  15. 10-K · period ending 2024-12-31 · accession 0001419806-26-000004 (CashAndCashEquivalentsAtCarryingValue)