From Seekingalpha · The Bullionaire · · 1m
USA Rare Earth Stock Price Assumes Western Premium
USA Rare Earth's stock price reflects Western market premium despite contract not promising upside.
In brief
USA Rare Earth's stock price reflects Western market premium despite contract not promising upside. USA Rare Earth's stock price assumes Western market premium while its contract doesn't guarantee magnet metal upside. Originally reported by Seekingalpha.
USA Rare Earth owns Pela Ema mine
USA Rare Earth now owns Pela Ema, a Brazilian mine that sells magnet metals to US government-backed buyers at floor prices for 15 years.
Stock price reflects Western premium
The stock price assumes a western premium of 1.67x versus 0.56x for critical-minerals peers, with 70% upside share tied to an unconfirmed index.
Magnet business hasn't sold a magnet
The magnet business has not sold a magnet yet, with $1.55B of new equity still to be raised.
Analyst rates stock at hold
The analyst rates USA Rare Earth a hold with a $10.20 price target, preferring Almonty for the same theme.
In short
USA Rare Earth's stock price assumes Western market premium while its contract doesn't guarantee magnet metal upside.
