USA Rare Earth posts first sales after Serra Verde acquisition

Overview

• US rare earths producer reported Q3 revenue of $3 mln, its first reported sales

• Company posted Q3 operating loss of $141 mln, but net income was positive due to other income

• Company completed Serra Verde acquisition and began commercial-scale rare earth shipments

Outlook

• Company expects Serra Verde Q4 sales volume of at least 325 tonnes total rare earth oxides

• Company reports Q4 average Serra Verde TREO basket value at floor prices of ~$43/kg

• Company reports Q4 average Serra Verde TREO basket value at market prices of ~$97/kg

Result Drivers

• FIRST MAGNET SALES - Co achieved initial commercial sales of neodymium-iron-boron magnets from Stillwater, Oklahoma facility

• NEW OXIDE PRODUCTION - Co produced first samples of light and heavy rare earth oxides at Wheat Ridge, Colorado for customer qualification

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the non-gold precious metals & minerals peer group is "buy"

• Wall Street's median 12-month price target for USA Rare Earth, Inc. is $33.00, about 301.2% above its November 6 closing price of $8.23

Reuters Recommended Reads

• Nov 9 - China extends suspension of new rare earth controls until January

• Nov 7 - US urges China to meet rare earths, agriculture commitments ahead of Trump-Xi meetings

• Nov 9 - JX Advanced Metals raises full-year profit estimate on robust chip material demand

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)