54
Net cash used in investing activities was $38 for the six-month period ended December 31, 2012 as compared with
$200 for the same period in 2011. The decrease in cash used of $162 from the prior period is the result of an
increase in cash invested in guaranteed investment contracts of $485, a decrease in the restricted cash balance of
$422, which was due to the replacement of our cash-funded reclamation bond with a surety bond that did not require
cash collateral, and a decrease of $259 for the purchase of equipment.
Financing Activities
Net cash used in financing activities was $42 for the year ended December 31, 2014 and net cash provided by
financing activities was $7,400 for the year ended December 31, 2013. The cash used in 2014 resulted from taxes
paid associated with a cashless exercise of stock options. The cash received in the 2013 period was the result of the
Company’s registered direct offering, which closed on September 27, 2013.
Net cash provided by financing activities was $7,400 and $1,108 for the years ended December 31, 2013 and 2012,
respectively. The cash received in the 2013 period was the result of the Company’s registered direct offering, which
closed on September 27, 2013. The cash received in the 2012 period was the result of employee stock option
exercises.
Net cash provided by financing activities was $390 for the six-month period ended December 31, 2012, which was
the result of cash received upon the exercise of stock options. Net cash provided by financing activities was $55 for
the six-month period ended December 31, 2011, which was also the result of the exercise of stock options.
Liquidity and Capital Resources
At December 31, 2014, our total current assets were $10,481, compared with $24,337 at December 31, 2013. The
decrease of $13,856 is primarily due to cash expenditures during the year which reduced our cash and cash
equivalents by $13,763.
At December 31, 2013, our total current assets were $24,337, compared with $40,640 at December 31, 2012. The
decrease of $16,303 is primarily due to cash expenditures during the year which reduced our cash and cash
equivalents and short-term investments by $1,083 and $15,118, respectively.
At June 30, 2012, our total current assets were $52,175, compared to $73,046 as of June 30, 2011, which is a
decrease of $20,871. The decrease in total current assets is primarily due to a decrease in cash and cash equivalents
of $35,282, which was partly offset by an increase in short-term investments of $14,633.
Our working capital at December 31, 2014 was $9,219, compared with working capital of $22,605 at December 31,
2013. Working capital was $37,041 and $50,120 at December 31, 2012 and June 30, 2012, respectively.
Our plans for 2015 are to continue moving forward with the Environmental Impact Statement and permitting
processes, and to evaluate the feasibility of incorporating downstream separation of rare earths into our project,
while limiting expenditures in other areas. Additional financing would be desirable to support our balance sheet and
continue the optimal pace of project spending for further permitting, evaluation, development and construction of
the Bear Lodge REE Project.
We extended the option covering up to 840 acres of private land in Upton, Wyoming. The option now expires in the
fourth quarter of 2017. If we choose to purchase the land, the purchase price is the greater of $1 per acre or the
appraised value at the time of exercise.
We have effective shelf registration statements in the U.S. and Canada, with remaining capacities of $35.9 million in
the U.S. and CDN$50.0 million in Canada; however, our ability to access our shelf capacity in the U.S. may be
substantially limited by applicable shelf eligibility rules.
