Skip Navigation Links

Bookmark and Share
Canada Rare Earth Corp. (TSX.V: LL): Developing an Integrated Global Rare Earth Business, Interview with Tracy A. Moore, CEO

on 12/24/2017
Canada Rare Earth Corp. (TSX.V: LL) is developing a vertically and horizontally integrated business, within the global rare earth industry. The company is building a rare earth supply chain by connecting mining operations to rare earth enhancement and separation processes and to major international customers. We learned from Tracy A. Moore, CEO of Canada Rare Earth, that their goal is to provide a dependable and transparent source of rare earths for 200 major international companies who, are currently dependent on one dominant supplier.

Plans for 2018 include:
Increasing the amount of trading activities, both in terms of frequency and dollar amounts,
Obtaining the operating permit for a completed rare earth refinery
Exercising the right to purchase the refinery, once permitted.

The refinery will become the cornerstone of their business, where the rare earth will be separated and the salable product will be made available to major international manufacturing companies, some of whom have expressed desire to become customers.

Canada Rare Earth is also looking for joint venture partners, with advanced stage and promising rare earth properties and strategic allies to accelerate the growth of the company rapidly, through financing and operational contributions.

The Red Wine Rare Earths project

Dr. Allen Alper: This is Dr. Allen Alper, Editor-in-Chief of Metals News, interviewing Tracy A. Moore, the CEO of Canada Rare Earth Corp. Tracy, could you give us an overview of your company?

Tracy Moore: Yes, certainly. Canada Rare Earth is focused on providing an integrated solution in the rare earth industry, creating an alternative to the dominant supplier and a choice for 200 major international companies around the world.

Dr. Allen Alper: Could you tell our readers/investors a bit more about your strategy and the focus of your company?

Tracy Moore: We look at the rare earth business from two perspectives. One is extracting the rare earth bearing minerals from the earth and, secondly, adding value by performing a series of processes in order to create a salable rare earth product like an oxide or metal. We are also cognizant of the specific and precise product requirements from the customer's perspective. We look to provide a bridge - a unique capability of arranging for the specialized processing of the rare earth concentrate to meet the specific and wide-ranging specifications of product manufacturing companies.

Dr. Allen Alper: Sounds great! Could you tell us a bit more about your strategy in this and with whom you're working?

Tracy Moore: We are part of a very capable group of people with experience in all aspects of the rare earth sector including; mining, concentrating, enhancing the concentrate, processing the concentrate, separation, metal and alloy making and commercial sales. Our extensive capability to design, build and operate concentration and separation facilities is fundamental to our business and is almost unique.

Dr. Allen Alper: That sounds very good, excellent. Could you refresh the memories of our readers/investors on the market and applications for rare earths?

Tracy Moore: I often refer to a June 2011 article in National Geographic entitled “The Secret Ingredients of Everything”. The range of rare earths applications is quite spectacular: high powered magnets, ceramics, polishing powders, glass additives and many others. Some of the more interesting end-applications include electric vehicles as well as hybrid and regular autos, catalysts in the oil industry, electronics, batteries, controlled drives, lasers, motors, and generators, and sensors-- The list goes on and on.

Dr. Allen Alper: My, it sounds very good. Could you tell our readers/investors a bit more about your background, your team and your board?

Tracy Moore: Yes, of course. We are a balanced, cohesive team with a broad range of technical, commercial and finance backgrounds. My background is corporate finance and international business development, having worked in over 20 countries. Peter Shearing, our COO, has a background in engineering. He worked at the executive level of a number of businesses in electronics and high tech manufacturing, which are some of the downstream industries that depend on rare earths. Other team members have worked in 70 countries in; the downstream oil industry, commodity trading, international business development, seeking to explore and develop mining properties, and managing construction projects with budgets in excess of $500 million. One team member, a former Canadian Ambassador, has been advising us on our interactions with the many government agencies we encounter. We're very pleased with our complete team.

Dr. Allen Alper: Sounds excellent! Could you tell us a bit about your plans for the remainder of 2017 and 2018?

Tracy Moore: Our primary two focuses are:

The first is expanding the size and frequency of our trading activities to generate positive cash flow and to solidify our relationships with suppliers and customers. In 2017 we completed more than 10 sales and generated over $1 million in revenues with solid gross profits. The second key focus is working towards the permitting of the completed rare earth refinery and then exercising our option to acquire a majority interest in the refinery. This refinery is one of four sizeable refineries outside of China and we fully expect it to become the cornerstone of our business. This facility will produce saleable products suitable for major international manufacturing companies, some of whom have already expressed desire to become customers.


We're looking at entering into joint ventures at each level of the supply chain including:

Advanced stage and promising rare earth properties because we can help them bridge to the customers through our midstream processing ability. We offer to become the joint venture partner or to be an off-taker of their concentrate production. With our involvement, the resource properties will have a much easier time obtaining financing to implement their plans;

Strategic partners for financing the refineries we have in varying stages of development; and

Well-known companies with established sales and service relations with the 200+ international manufacturing companies requiring rare earths.

Dr. Allen Alper: Well that sounds very good. Could you tell us, our readers/investors, a bit more about your capital structure?

Tracy Moore: We have taken great care to minimize the number of shares we issue from treasury. Currently there are 166 million shares issued and outstanding. We would consider issuing shares to a partner or investor as part of a strategic partnership that would bring significant extra value to our company, beyond just financing. Our trading activities are generating gross profits and so we are able to manage our cash flows through sales and some borrowings. There are currently 8 million options granted and we have the support of our shareholders to issue more. Our strategy is to finance projects at the subsidiary level to avoid causing significant dilution to our existing shareholder base. Any financing we do will be done on a debt basis or on a project-specific basis to minimize any dilution to our existing shareholder base to the best of our abilities.

Dr. Allen Alper: Excellent! What are the primary reasons our high-net-worth readers/investors should consider investing in Canada Rare Earths?

Tracy Moore: Rare earths have played a very important part in today's global economy. About $3 billion a year of rare earths are critically incorporated into $1 trillion of products. The way the industry is structured, a very dominant percentage of the supply of rare earths comes from one particular country, which tends to oversee the participants in that industry, causing an uneasy situation for many of the major international manufacturing companies. It's good business practice to have multiple suppliers. We're creating an alternative supply to relieve some of the pressure felt by manufacturing customers.

With our team’s midstream processing know-how and experience, we are uniquely positioned to bridge the sources of rare earths, with the specific demands of quantity and quality of the 200 major international manufacturing companies and their supply networks. Our team and our plans are capable of rapid organic growth. If we are successful in partnering with one or more of the established companies, with whom we are in discussions, our growth will be very rapid.

Dr. Allen Alper: That sounds very good. Tracy, is there anything else you'd like to add?

Tracy Moore: We are forming a very important link in the supply chain for the rare earth industry. We are actively in business, with commercial activities and our midstream processing capabilities. Many companies can explore and mine and even produce a concentrate. But unless that concentrate can be processed into saleable products at a competitive cost, it is of little use. Our team is capable of enhancing and processing and creating saleable oxides, metals and alloys, which are necessary to create the broad range of wonderful products relying on rare earths. We're an important link in that supply chain. There are not many companies able to do this. We have a unique position and are capitalizing on that position.

Canada Rare Earth is one of only a very small number of rare earth businesses outside of China that has revenues. We're generating good gross profits. We are sustainable and we have a very good upside. Our platform is forming very nicely, and we feel very comfortable about the next couple of years.

Dr. Allen Alper: Sounds excellent!

Tracy A. Moore, CEO and Peter Shearing, COO
Tel: (604) 638-8886

Disclaimer | Terms Of Use And Privacy Statement

© Metals News. All rights reserved.