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Non-operating income and expenses
Interest income
Interest income decreased to $232 for the year ended December 31, 2013, compared with $627 for the same period
in 2012. The decrease in interest income from the prior period is attributable to lesser average cash balances held in
interest bearing accounts during 2013 when compared with the prior year.
Gain/(loss) on currency translation
We report our financial statements in U.S. dollars. Therefore, any foreign currencies owned are converted to U.S.
dollars at the current exchange rate. We hold Canadian dollars in Canadian and U.S. banks as a result of past
financings that were denominated in Canadian dollars. While the majority of our expenses are in U.S. dollars, we
continue to hold Canadian dollars due to higher investment returns and as a hedge against expected Canadian dollar
spending. A strengthening Canadian dollar will result in gains and a weakening Canadian dollar will result in losses
as long as we continue to hold Canadian dollars.
The loss on currency translation was $1,531 for the year ended December 31, 2013, compared with a gain of $1,525
for the same period in 2012, a negative variance of $3,056. The difference is caused by a decrease in cash balances
held in Canadian dollars at the end of the respective periods as well as depreciation of the Canadian dollar. The
translated Canadian dollar cash balance at December 31, 2013 included approximately CDN$10,233, compared with
CDN$33,287 as of December 31, 2012. The Canadian dollar weakened by 7.0% against the U.S. dollar during 2013,
compared with a 2.6% strengthening during 2012.
Six Months Ended December 31, 2012 Compared to Six Months Ended December 31, 2011 (unaudited)
Summary
Our consolidated net loss for the six-month period ended December 31, 2012 was $15,430 or $0.35 per share
compared to our consolidated net loss of $21,061 or $0.48 per share for the same period in 2011. For the six-month
period ended December 31, 2012, the decrease in consolidated net loss of $5,631 from the respective prior period
was primarily the result of a decrease in stock-based compensation expense of $4,404 and an increase in the gain on
foreign currency translation of $4,143, which were partially offset by an increase in exploration and evaluation costs
of $2,575 and a decrease in interest income of $237.
Exploration and evaluation
Exploration and evaluation costs were $12,938 for the six-month period ended December 31, 2012 as compared
with $10,363 for the same period in 2011. The increase of $2,575 from the prior period was primarily due to an
increase in drilling costs and environmental monitoring costs at our Bear Lodge REE Project as we continue to
advance the project and further define the resource area.
Corporate administration
Corporate administration costs were $4,158 for the six-month period ended December 31, 2012 as compared with
$7,791 for the same period in 2011. The decrease of $3,633 from the prior period was the result of a decrease in
stock-based compensation expense of $4,404, which was partly offset by increased employee compensation and
benefits costs of $842 and increased professional service fees of $211. Stock-based compensation expense
decreased due to the vesting of numerous grants issued in prior periods during the period ended December 31, 2012.
Employee compensation and benefit costs increased during the 2012 period as we continued to establish our
corporate offices and hire key personnel with specialized skills that will enable us to continue to advance the Bear
Lodge REE Project. Lastly, professional service fees increased during the 2012 period as we incurred additional
legal expenses for regulatory compliance as well as to assist us with the permitting process.
