REalloys Funds SRC Rare Earth Upgrade, Advances U.S. Army Lease Talks

REalloys (ALOY) has fully funded the upgrade of the Saskatchewan Research Council's Rare Earth Processing Facility and its planned Heavy Rare Earth Metallization Facility, the company said Tuesday. The moves put the company's mining-to-magnet strategy on a funded path toward commissioning, with cash reserves of $122.4 million at the end of the second quarter.

SRC is expected to start the facility upgrade in the third quarter, targeting increased capacity of roughly 525 tonnes of NdPr metal, 30 tonnes of dysprosium oxide and 15 tonnes of terbium oxide per year. REalloys holds supply rights to about 80% of that expanded output. Separation trials using recycled mixed rare earth oxide feedstock are planned for the second half of this year, with customer qualification materials potentially ready by the fourth quarter, and commercial intake of NdPr metal and dysprosium/terbium oxides from SRC expected in the third quarter of 2027.

The Heavy Rare Earth Metallization Facility is targeting commissioning in the first quarter of 2028, with first operations in the first half of that year. REalloys has committed roughly $58.3 million in capital for the SRC upgrade and the metallization project through commissioning. The company said its existing cash is enough to fund those projects without additional financing.

Net revenues for the six months ended June 30 hit $1.5 million, up from $0.4 million in the same period last year. The net loss widened to $143.5 million, or $2.49 per diluted share, from $3.9 million, or $0.11 per share, a year earlier. The six-month loss included $113.9 million in non-cash stock-based compensation linked to the company's February 2026 reverse recapitalization and public listing, a $9.2 million non-cash accretion charge on Series C Convertible Preferred Stock conversion, a $6.4 million impairment on its EVTEC investment, and a $3.4 million change in the fair value of contingent consideration.

Advancing Tooele Army Depot talks

REalloys said it had been selected by the U.S. Army for exclusive negotiations toward a long-term Enhanced Use Lease at Tooele Army Depot in Utah. Under the arrangement, REalloys would design, finance, build and operate heavy rare earth processing facilities at the site. The negotiation phase is scheduled to finish by mid-September.

The company also signed non-binding arrangements to explore feedstock supply with U.S. Critical Materials Corp., Ramaco Resources, and Patriot Exploration & Mining, as it builds a diversified North American feedstock network ahead of expanded processing capacity.

Leadership moves

Craig Cunningham joined as Chief Financial Officer on June 24, replacing Robert Winspear. Cunningham is a Chartered Professional Accountant with over two decades of finance leadership in mining and critical minerals, including stints as CFO of Li-Cycle Holdings Corp. and Electra Battery Materials Corporation, and 12 years in senior finance roles at Kinross Gold Corporation.

On September 1, Anupam Ghildyal moves from Chief Operating Officer to the newly created Chief Growth Officer role, focusing on strategic partnerships and offtake relationships. Dr. Muhammad Imran joins as COO the same day, coming from SRC where he served as Chief Technology Officer and Vice President of its Rare Earth Elements Division. Imran led SRC's rare earth capabilities since 2020, including directing development of the Saskatoon processing facility.

CEO Leonard Sternheim said the capital commitments put the flagship projects on a clear path to commissioning. Non-Executive Chairman Stephen S. duMont called building a non-Chinese rare earth supply chain "one of the most consequential industrial challenges of our time."

Disclosure: Kinross Gold Corp. (KGC) was listed in the metadata for this article. An executive named in the article previously served in senior finance roles at Kinross. No portfolio positions are implied. The KGC stock page is here.