USA Rare Earth, Inc.

Pre-commercial rare-earth mine-to-magnet developer, strategically important and well-funded but with no production and deeply negative economics.

Strengths

• Strong liquidity — $360M cash, current ratio 10x (95th pct); LCM acquisition adds real ex-China metal/alloy capability
• Powerful strategic tailwind: $1.6B proposed US government (CHIPS Act) funding LOI and DFARS 2027 non-China sourcing mandate

Risks

• Essentially pre-revenue — net margin -181x, operating margin -36x, OCF margin -30x on negligible sales; ROA -43%
• Stillwater facility not complete and Round Top still at exploration stage with no declared reserves — heavy execution/financing risk
• Outcome is binary on feedstock, offtake, permitting and definitive government agreements

Notable findings

• Exec changeRecent 8-K item 5.02 8-K ↗
• Net lossNet loss (net margin -18110.7%)
• Strong balance sheetStrong balance sheet — $360M cash & investments
• Pending mergerOn March 4, 2026, we entered into a Definitive Agreement and Plan of Merger (the “TMRC Merger Agreement”) with TMRC and two newly formed merger subsidiaries that are our wholly owned subsidiaries, pur
• China exposureIn addition, during 2025, China imposed and expanded export controls and restrictions on certain rare earths and related materials, requiring companies to secure special export licenses and obtain Chi