USAR

USA Rare Earth (NASDAQ: USAR) is quickly becoming one of America's most strategically important mining companies, at least if the economy, technology, and national security count for anything. Why all the attention? Two words: rare earths. Indeed, rare-earth metals, as their name suggests, are a class of elements that are tough to find in economically useful deposits. They are essential to everything from smartphones and electric vehicles (EVs) to fighter jets and guided missiles, and China controls most of the world's capacity to process them. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » USA Rare Earth is one of only a handful of American companies that control a rare-earth deposit on American soil. Its goal is to extract rare-earth elements from a deposit in Texas, process and separate them domestically, and turn them into permanent magnets for American companies out of its factory in Oklahoma. For some time, this has been at the heart of USA Rare Earth's growth thesis; none of it is new. What is new, however, is its pending acquisition of Serra Verde, which could turn USA Rare Earth from a would-be miner with an uncertain start date into the owner of an operating rare-earth mine. That deal will likely close before its next earnings report -- expected in early November -- and could set the stage for a huge rally. Here's what investors should know. For nearly all of its existence, USA Rare Earth has been all map and no territory. True, it owns Round Top Deposit, one of the largest known U.S. sources for heavy rare earths. But Round Top isn't an operational mine, and it won't become one for at least another two years. With no functioning mine yet, and only about $13 million in trailing-12-month revenue, USA Rare Earth's annual cash burn of roughly $100 million has been a flashing warning light for investors. This is where the Serra Verde acquisition could prove to be the best move USA Rare Earth can make. The Brazilian rare-earth mine is expected to generate between $550 million and $650 million in annualized run rate earnings before interest, taxes, depreciation, and amortization (EBITDA) by the end of 2027. Not only would that help offset USA Rare Earth's cash burn, but move it closer to positive cash flow. Oh, but it gets better. Serra Verde has already secured a buyer for 100% of its Phase 1 production. That buyer is US SIIE, a government-backed special-purpose company established specifically to buy Serra Verde's rare-earth products. The 15-year agreement includes price floors and take-or-pay protections, which are supported by $750 million in U.S. government funding. In simple terms, Serra Verde now has a customer obligated to buy its output at protected prices. For a mining company, it doesn't get much safer than that, at least on the demand side. Once the acquisition closes -- shareholders have already approved it -- the protections on Serra Verde would extend to USA Rare Earth. In essence, USA Rare Earth would have an operating mine to help generate cash flow for its other projects, such as its Top Deposit and magnet factories. At its next earnings report, USA Rare Earth could very likely, I think, announce the closing of this acquisition. Investors who buy USA Rare Earth beforehand may be glad they did. Before you buy stock in USA Rare Earth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and USA Rare Earth wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of September 5, 2026. Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Here's Why USA Rare Earth Is a Buy Before Its Next Earnings Report was originally published by The Motley Fool

USA Rare Earth (NASDAQ: USAR) has big ambitions -- and those ambitions aren't cheap. The rare-earth miner -- or would-be miner, since it's not mining yet -- burned roughly $56.7 million in second-quarter operating cash, up from about $19 million in the first quarter. That brings its 2026 cash burn to about $75 million, already more than four times the roughly $18 million it burned in all of 2025. That's a lot of cash, but USAR, fortunately, isn't scrounging for loose change. It ended June with about $1.5 billion in cash and equivalents. If we were to divide that by its latest quarterly cash burn of $56.7 million, that would give USAR a cash runway of about 27 quarters, or nearly seven years. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » That isn't highly accurate, though. For one, it doesn't take into account capital expenditures (capex), which have already totaled about $108 million through the first six months of 2026. USAR is also building a large-scale rare-earth mine and two magnet factories, and potentially acquiring Serra Verde for $300 million in cash. The next few years are going to be costly, and its cash pile will likely dwindle much faster than seven years will pass. Let's say, for the sake of argument, that USAR ends up acquiring Serra Verde for $300 million. That leaves it with about $1.2 billion. Let's also annualize its first-half capex ($108 million) to about $217 million annually. Combined, then, USAR would spend about $444 million annually. At that pace, USAR has about three years of capital on hand. Luckily for USAR, it does have financing options. It has access to $277 million in federal funding and up to $1.3 billion in secured capacity. After adding that to its current funds, USAR could theoretically have access to more than $3 billion in capital, a considerable amount of breathing room for a mining company. Before you buy stock in USA Rare Earth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and USA Rare Earth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $430,571!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,399,268!* Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 28, 2026. Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. USA Rare Earth Is Burning Through Cash at $57 Million a Quarter. At That Rate, Here's How Long the Money Lasts. was originally published by The Motley Fool

USA Rare Earth, Inc. USAR used its second-quarter earnings call to emphasize the buildout of an integrated rare earth chain outside China. Management centered the outlook on closing Serra Verde, ramping Stillwater, qualifying magnet customers and advancing Round Top. The quarter also missed the Zacks Consensus Estimate on adjusted loss per share and revenues. CEO Barbara Humpton said that availability, rather than price alone, has become the defining issue in rare earth supply chains. She described an emerging two-tier market with separate China and non-China sourcing structures. Humpton mentioned that USAR is positioning itself to anchor the non-China tier through mining, processing, metals and magnet manufacturing across three continents. She highlighted the planned Serra Verde acquisition, the Carester investment and Blacksburg, S.C., as a second U.S. metals and magnet site. USAR also signed definitive Commerce Department agreements providing access to up to $1.6 billion in CHIPS Act funding. A Canaccord Genuity analyst asked about remaining Serra Verde closing hurdles. CFO William Steele said that the Aug. 28 shareholder vote was the final hurdle and no additional regulatory approvals remained. Steele said that Serra Verde is targeting 6,400 metric tons of Trio run-rate capacity by the end of 2027. Management plans to provide more detail after closing. Humpton said that Thras Moraitis, currently Serra Verde’s CEO, is scheduled to become USA Rare Earth’s CEO on Oct. 1, marking a leadership handoff. Second-quarter revenues were $5.8 million, missing the Zacks Consensus Estimate of $7.8 million. Adjusted net loss was $0.15 per share, wider than the consensus estimate of a $0.07 loss. USA Rare Earth Inc. price-consensus-eps-surprise-chart | USA Rare Earth Inc. Quote Steele said that higher raw material costs, especially for heavy rare earths, pressured gross margins at LCM. USAR is working with alternative suppliers ahead of anticipated Serra Verde and Carester feedstock access. In response to a William Blair analyst, Steele said that USAR has already raised product prices and expects the impact in upcoming quarters. He tied the action to tighter non-China supply. Steele said that the magnet pipeline includes more than 100 potential customers, with more than 20 in qualification discussions. MOUs and LOIs cover 2,500 metric tons of annual demand. A William Blair analyst asked how those arrangements could develop. Steele said that contracts may range from single purchase orders to annual agreements, with selective offtake agreements based on transaction economics. A ROTH Capital analyst asked about Stillwater’s ramp. Steele said the site should reach 600 metric tons of run-rate magnet capacity by year-end, with another 600 metric tons being installed in the first quarter of 2027. First magnet sales are expected by year-end. Steele said that Round Top drilled more than 10,000 feet in its resource upgrade program, with early assays confirming heavy rare earth distribution above 70%. The definitive feasibility study remains on track for year-end completion. At Wheat Ridge, USAR is running three demonstration circuits covering Round Top ore, third-party mixed rare earth carbonate and magnet swarf recycling. July work produced commercial-grade dysprosium and NdPr oxide samples from recycled swarf. A Cantor Fitzgerald analyst asked about recycling’s future role. Steele replied that swarf could represent 20-30% of finished magnet output and, after recycling, could supply a similar share of raw material needs. Management’s tone remained centered on execution: complete Serra Verde, turn customer qualifications into orders, advance Round Top engineering and keep magnet capacity moving toward planned scale. Humpton framed the next phase as moving material through each link of the chain at scale. Steele reinforced that focus through milestones for magnet sales, Stillwater capacity and project development. USAR carries a Zacks Rank #3 (Hold) at present. Its Value Score is F, Growth Score is F, Momentum Score is C and VGM Score is F. Under the Zacks Style Scores framework, A and B grades are preferred, while F is the weakest grade. The Rank #3 sits below the Zacks Rank #1 (Strong Buy) and 2 (Buy) categories that Zacks identifies as stronger stock-selection signals. USAR’s Style Score offers limited support, with Momentum at C and the other three at F. The Zacks Rank can change as estimates are revised after the results. You can see the complete list of today’s Zacks #1 Rank stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report USA Rare Earth Inc. (USAR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in USA Rare Earth Inc.? Here are five stocks we like better. Q2 financial results: USA Rare Earth reported approximately $6 million in revenue and a $10.3 million net loss, while higher heavy rare-earth input costs pressured margins. The company has raised product prices and expects the benefits to appear in coming quarters. Supply-chain expansion: The company expects its Serra Verde acquisition to close shortly after an Aug. 28 shareholder vote, with the project targeting 6,400 metric tons of rare-earth oxide capacity by the end of 2027. USA Rare Earth also advanced its Round Top mine, processing facilities and Commerce Department funding program. Magnet growth and leadership change: Stillwater is targeting 600 metric tons of annual magnet capacity by year-end, while the company is in discussions with more than 100 potential customers and expects its first magnet sales by year-end. CEO Barbara Humpton will be succeeded by Thras Moraitis on Oct. 1. 3 Rare-Earth ETFs That Help Investors Balance Exposure and Risk USA Rare Earth (NASDAQ:USAR) reported second-quarter revenue of approximately $6 million, generated by third-party sales from its Less Common Metals metal and alloy-making business, while outlining progress on its mine-to-magnet supply chain strategy outside China. The company reported a net loss attributable to common stockholders of $10.3 million, or $0.05 per share. The result included a non-cash fair-value adjustment of about $22.4 million related to warrant and earnout liabilities. Excluding that adjustment, adjusted net loss was $33.5 million, or $0.15 per share. → MarketBeat Week in Review – 08/03 - 08/07 USA Rare Earth Just Moved Closer to Commercial Reality Chief Financial Officer Rob Steele said gross margins were affected by higher raw-material input costs amid supply constraints, particularly for heavy rare earths. The company is pursuing alternative supply sources ahead of expected feedstock access from Serra Verde and Carester. Steele said USA Rare Earth has already raised prices on its products and expects the impact to become visible in upcoming quarters. Chief Executive Officer Barbara Humpton said the company is seeking to establish an integrated rare-earth platform spanning mining, processing, metal and alloy production, and magnet manufacturing. She cited Chinese export restrictions and rising Western prices for certain heavy rare earths as evidence of the need for supply chains outside China. → Quantum Earnings Week: Winners and Losers Are Finally Emerging Critical Metals: Sizing Up This Tiny Rare-Earth Stock Making Big Moves During the quarter, USA Rare Earth announced its intended acquisition of Serra Verde, invested in rare-earth processor Carester, and selected Blacksburg, South Carolina, for a second U.S. metals and magnet facility. The company also signed definitive documentation with the Department of Commerce for a milestone-based capital-expenditure reimbursement program. The Serra Verde transaction’s shareholder vote is scheduled for Aug. 28, which Steele said was the final remaining closing condition. He said there are no remaining regulatory hurdles and that the acquisition is expected to close shortly following the vote. → Take-Two’s Q1 Results Leave GTA 6 Bulls Stuck in the Fog of War Serra Verde is targeting run-rate capacity of 6,400 metric tons of total rare earth oxides by the end of 2027, Steele said. Humpton said the operation’s optimization and growth project was being recommissioned and was developing toward a commercial-production restart and ramp-up on time and within budget. USA Rare Earth ended the quarter with approximately $1.5 billion in cash and cash equivalents and recorded $66 million in capital expenditures. Steele said the company expects to seek its first Commerce Department reimbursement distribution in the coming months. At the company’s Round Top project, USA Rare Earth began a resource-upgrade drilling campaign involving more than 10,000 feet of core across three rigs. Early assay results were in line with expectations for resource grade and confirmed heavy rare-earth distribution above 70%, according to Steele. The company remains on schedule to complete its definitive feasibility study by year-end and publish an S-K 1300 technical report in early 2027. Round Top is targeted to begin commercial operations in late 2028. At its Wheat Ridge, Colorado, research and development headquarters, USA Rare Earth commissioned a hydrometallurgical facility during June. The site is operating three demonstration circuits: the Round Top flowsheet, third-party mixed rare-earth carbonate separation, and magnet-swarf recycling. The data will support the Round Top feasibility study as well as engineering for a consolidated separation plant. Humpton said the company produced its first commercial-grade dysprosium and NdPr oxide samples from recycled magnet-manufacturing swarf in July. During the analyst question-and-answer session, Steele said swarf could represent 20% to 30% of finished magnet production and potentially account for a similar share of future raw-material supply if recycled into oxides, metals and magnets. USA Rare Earth said its Stillwater magnet operation had grown to 140 employees and is targeting 200 employees by year-end. The company expects to have 600 metric tons of annual run-rate magnet capacity at Stillwater by year-end, followed by an additional 600 metric tons in the first quarter of the following year. Steele said Stillwater is expected ultimately to reach 3,600 metric tons of magnet-making capacity and 5,000 metric tons of metal-making capacity. The later-stage Blacksburg facility is expected to begin operating in early 2028, with its building shell due for completion at the end of 2027. Blacksburg is planned to have 5,000 metric tons of metal-making capacity and 6,400 metric tons of magnet-making capacity. Across its magnet business, the company is in active commercial discussions with more than 100 potential customers, including more than 20 in qualification discussions. It has secured memorandums of understanding and letters of intent representing 2,500 metric tons of annual demand from large multinational customers in aerospace and defense, industrial automation, industrial motors and automotive markets. Steele said the company has also received production purchase orders, prototype orders for finished parts and orders for semi-finished magnet blocks. Qualification timelines vary by customer, application and product requirements, but the company expects its first magnet sales by year-end. The company did not quantify the purchase orders that have resulted from prior memorandums of understanding. Humpton said the call would be her final quarterly earnings call as chief executive. Thras Moraitis is scheduled to take over as CEO on Oct. 1. Humpton said she intends to remain focused on the business through the transition. USA Rare Earth (NASDAQ: USAR) is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains. In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "USA Rare Earth Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management is pivoting the business model to address a 'two-tier' market where availability, rather than just price, governs decisions for non-China supply chains. The company is executing an integrated 'mine-to-magnet' architecture to eliminate bottlenecks, arguing that isolated mining or processing assets remain 'stranded' without end-to-end capability. Strategic acquisitions of Serra Verde and Carester are designed to secure the only scaled source of heavy rare earths outside Asia and bring in critical processing intellectual property. The recent Chinese export restrictions are viewed by management as a 'wake-up call' that is driving multinational customers to seek long-term, reliable Western partners. Operational progress is highlighted by the first commercial production of Yttrium metal and successful recycling of magnet swarf into commercial-grade dysprosium and NdPr oxide. The company is leveraging 'customer intimacy' by engineering materials alongside clients for 6 months or more to meet specific tolerances for multi-decade defense and aerospace platforms. Management expects to achieve first magnet sales by the end of 2026, supported by production purchase orders already in hand from the aerospace and defense sectors. The company is targeting a total of 10,000 tons of both metal/alloy and magnet manufacturing capacity in the United States by 2029. The Round Top project is on track for a definitive feasibility study by year-end 2026, with commercial operations targeted for late 2028. Future R&D will focus on 'heavy rare earth free' formulations and grain boundary diffusion to lower cost bases and meet specific customer requirements. The Blacksburg, South Carolina facility is expected to be operational by early 2028, following the completion of the building shell in late 2027. The acquisition of TMRC was closed to consolidate ownership of the Round Top asset and streamline governance and decision-making. A milestone-based CapEx reimbursement program with the Department of Commerce has been finalized, which management views as a validation of their business model. Gross margins were pressured by higher raw material input costs due to industry-wide supply challenges, particularly in heavy rare earths. A leadership transition is underway, with Thras Moraitis set to take over as CEO on October 1, 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed they have secured MOUs covering 2,500 metric tons of annual demand and have already converted several into production purchase orders. Supply agreements will range from single purchase orders to annual agreements, with selective offtake agreements based on transaction economics. There are no remaining regulatory hurdles in Brazil; the final step is a shareholder vote scheduled for August 28, 2026. The facility is expected to scale to a run rate capacity of 6,400 metric tons of Total Rare Earth Oxides (TREO) by the end of 2027. Recycled magnet swarf is expected to represent 20% to 30% of the company's total supply once full-scale production is reached. This process allows the company to turn manufacturing waste back into raw material oxides for metal and magnet production.

STILLWATER, Okla., Aug. 10, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (the Company), (USAR), a rare earth, critical minerals and advanced materials company, today announced its financial and operational results for the second quarter and six months ended June 30, 2026. Executive Commentary “The second quarter of 2026 marked a period of decisive progress for USA Rare Earth, defined by the milestones that bring our integrated global rare earth value chain to life,” said Barbara Humpton, CEO of USA Rare Earth. “We announced our intent to acquire Serra Verde, the only scaled producer of all four magnetic rare earths outside Asia; signed definitive documentation for our funding package with the U.S. Department of Commerce; announced our intent to invest in Carester; and selected Blacksburg, South Carolina, as the site of our second U.S. metal-making and magnet manufacturing facility. We also commissioned our hydrometallurgical facility in Wheat Ridge, Colorado, a critical step that demonstrates our processing capability that lies at the heart of a secure, non-China supply chain.” Ms. Humpton continued, “With these building blocks in place, USA Rare Earth is entering a new chapter. We are moving from assembling a world-class set of operations to delivering for our customers and driving value for our shareholders. The urgency in the market has never been greater, and we are among the very few companies anywhere positioned to meet it. I am confident we have the right assets, the right operations, and the right team to establish ourselves as the global leader in rare earths, the partner of choice for advanced manufacturers, and to secure the critical materials essential for Western industrial leadership.” Second Quarter Highlights Financial Highlights The Company’s cash balance as of June 30, 2026 was approximately $1.53 billion Revenues for Q2’2026 of $5.8 million Business Highlights Finalized Definitive Agreements with the U.S. Department of Commerce: In June 2026, the Company announced the execution of definitive agreements with the U.S. Department of Commerce, unlocking access to up to $1.6 billion in funding under the Department of Commerce’s CHIPS Act program. The definitive agreements comprise up to $277 million in federal funding and up to $1.3 billion in senior secured loan capacity under the CHIPS Act, with disbursements tied to the achievement of project milestones. These agreements significantly de-risk the Company’s path to full scale production, and the Company views them as a validation of its asset base, its business model, and its growth plans. Announced definitive agreement to acquire Serra Verde Group for ~$2.8 billion, creating the global rare earth leader: In April 2026, the Company announced a definitive agreement to acquire 100% of Serra Verde Group, owner of the Pela Ema rare earth mine and processing plant in Goiás, Brazil. The acquisition would secure the only large-scale producer of vital HREEs outside Asia, de-risk upstream supply with a 15-year 100% offtake agreement including price floors, and accelerate the Company’s EBITDA and cash-flow generation. Announced investment in Carester and strategic partnership in France: In April 2026, the Company along with InfraVia, the leading independent European private investment platform specialized in real assets and technology investments, announced it had entered into an investment term sheet to take a stake in Carester, a leading French specialist in rare earth processing and separation technologies, subject to the execution of a definitive documentation and closing conditions. The Company believes the platform will unite the technological expertise, process innovation, and production capacity of USA Rare Earth, Less Common Metals (LCM), and Carester to accelerate development and strengthen capabilities across the rare earth value chain. Selected South Carolina for new rare earth metal and magnet manufacturing operation: In June 2026, the Company announced the selection of Blacksburg, South Carolina, as the site of a new magnet manufacturing and refined metals operation. The facility is targeting production capacity of 6,400 metric tons per annum (tpa) of NdFeB rare earth magnets and 5,000 tpa of strip-cast, metal and alloy. Combined with the planned expansion at the Company’s Stillwater facility, the Company expects total domestic production capacity to reach 10,000 tpa of NdFeB rare earth magnets and 10,000 tpa of heavy rare earth strip-cast, metal and alloy, aligned with the Company’s business plan and government financing. The project is expected to create about 490 high-skill, high-wage jobs, with commissioning targeted to begin in 2028. Commissioned hydrometallurgical demonstration facility, targeting heavy rare earth oxide production in Q3 2026: In June 2026, the Company announced the commissioning of its hydrometallurgical demonstration facility in Wheat Ridge, Colorado. The facility has commenced an initial campaign to de-risk three processing flowsheets in parallel: ore from Round Top, third-party mixed rare earth carbonate (MREC) feedstock — including material from Serra Verde’s Pela Ema mine — and rare earth magnet swarf recycling. Insights from the campaigns are expected to underpin the Round Top Definitive Feasibility Study, on track for Q4 2026 completion and Q1 2027 publication, and to guide commercial engineering of the planned on-site Round Top processing facility and the Company’s anticipated third-party MREC processing and magnet swarf recycling facility. Completed first commercial Yttrium metal production: In April 2026, the Company announced the first commercial pour of 2N–2N5 (99%–99.5% purity) yttrium metal through its wholly-owned subsidiary, LCM, at its facility in Cheshire, United Kingdom. This milestone places the Company among a limited number of producers of commercial-grade yttrium metal operating outside of China. Yttrium is a key material in thermal barrier coatings used on turbine blades and other high-temperature aerospace components, where it enhances oxidation resistance and improves adhesion, helping extend component life under intense thermal and mechanical stress. Yttrium is also used in electronics, energy systems, lasers, superconductors, and advanced ceramics, where its chemical stability and high-temperature performance are essential. Expanded the corporate leadership team with additional expertise: In April 2026, the Company announced the appointment of Chaitan Kansal as Chief Commercial Officer. Mr. Kansal brings more than 25 years of experience across the critical minerals, specialty chemicals, and advanced materials sectors. Mr. Kansal’s deep experience across lithium, battery materials, and specialty chemicals - combined with a track record of executing go-to-market strategies at global scale - makes him the ideal leader to drive customer engagement, secure long-term offtake partnerships, and position the Company as the partner of choice for rare earth products across the Western world. Awarded $14.2 million grant from the Texas Semiconductor Innovation Fund to accelerate round top heavy rare earth project: In May 2026, the Company announced it was selected to receive a grant for up to $14.2 million from the Texas Semiconductor Innovation Fund to accelerate the development of its Round Top Mountain heavy rare earth project in Hudspeth County, Texas. The award would support a project expected to generate approximately 260 new jobs and to represent more than $1.4 billion in capital investment in West Texas. Selected for U.S. Department of Energy Funding Under Critical Minerals Innovation Program: In May 2026, the Company announced that the U.S. Department of Energy (DOE) has selected it to receive up to $19.3 million in funding, subject to final negotiation, under DOE’s Critical Minerals Innovation, Efficiency and Alternatives program. The award will support the development of a pilot-scale rare earth element (“REE”) separations project advancing domestic processing capacity for materials essential to U.S. energy, defense and advanced manufacturing supply chains. Expanded commitment to France with plans for additional investment in the French rare earth ecosystem: In June 2026, the Company announced a planned expansion of its metal, alloy, and magnet production in France, building upon its planned LCM Lacq facility and Carester investment. Aligned with the U.S. Department of Commerce funding plan, the initiative projects over €175 million in investment and 300+ new jobs by 2030, supported by French government incentives such as C3IV, potential debt guarantees, and possible direct equity investment into the USAR European subsidiary. Recent DevelopmentsSubsequent to quarter-end, the Company announced the following achievements and milestones: Successfully produced first light and heavy rare earth oxide samples for qualification: In July 2026, the Company announced that its hydrometallurgical facility in Wheat Ridge, Colorado, had successfully produced commercial-grade dysprosium (Dy) oxide and neodymium-praseodymium (NdPr) oxide samples from recycled rare earth magnet scrap, known in the industry as “swarf.” This positions USA Rare Earth as one of the few Western producers capable of executing this technically demanding process outside Asia. In addition, this capability broadens the Company’s feedstock options and strengthens the circularity of its value chain, with swarf projected to support up to 30% of future magnetic rare earth oxide feedstock needs. Announced retirement of CEO Barbara Humpton, to be succeeded by Thras Moraitis, current CEO of Serra Verde: In July 2026, the Company announced that Barbara Humpton will retire as Chief Executive Officer and Board Director on October 1, 2026. The Company’s Board of Directors named Thras Moraitis, current CEO of the Serra Verde Group (“Serra Verde”) and a highly experienced operator in the rare earths industry, as Ms. Humpton’s successor. Mr. Moraitis will assume the CEO role on October 1, 2026, following the anticipated completion of the Company’s combination with Serra Verde by the end of August. During the interim period, Mr. Moraitis will continue to oversee the combined company’s operations as President. Finalized definitive agreements to acquire minority stake in Carester: In July 2026, the Company announced that it had entered into definitive agreements to acquire a strategic minority stake representing approximately 13.6 percent in Carester SAS, a French leader in rare earth processing and separation. InfraVia, acting through its Critical Metals Fund, seeded by the French State as an anchor investor alongside private institutional capital, is acquiring a similar stake in Carester alongside the Company. In addition to targeting healthy returns, the Company and its subsidiary Less Common Metals – Europe will have the ability to purchase a portion of Carester’s oxide output from its Caremag facility. The Company will have access to Carester’s engineering capabilities and related intellectual property for separation, processing, and recycling. In turn, Carester will have access to the Company’s feedstock sources, including Serra Verde and the Round Top deposit in Texas. Closed Acquisition of Texas Mineral Resources Corp. (TMRC): In August 2026, the company closed the acquisition of TMRC, to which the Company acquired 100% of the outstanding shares of TMRC. Subsequent to closing, the Company will be the sole operator and 100% economic beneficiary of the Round Top project. This strategic transaction is expected to streamline the Company’s operations, governance and decision-making as it builds the global leader in rare earths and critical minerals. 2026 Outlook As it builds a global leader in rare earths, in 2026 the Company expects to: Complete the Round Top Definitive Feasibility Study (DFS) in Q4 2026: This DFS is expected to be completed in Q4 2026 and published in Q1 2027, and is expected to provide the balance of commercial engineering and design and definitive project economics. Reach 600 MTPA of run-rate magnet manufacturing capacity at the Stillwater Facility in Q4 2026: This manufacturing capacity build out is expected to support the Company’s growing pipeline of magnet customers across the aerospace, defense, semiconductor, industrial motor, heavy equipment, mobility, healthcare, and energy sectors. Evaluate metal making and alloy capacity at LCM to optimize for customer demand across rare earth and critical mineral metals and alloys, and geographic footprint distribution: This capacity build out is expected to support the Company’s internal metal and alloy needs for magnet manufacturing, as well as a growing pipeline of third-party rare earth and critical mineral metal and alloy demand. Financial Highlights Non-GAAP Financial Highlights (1) ______________(1)    Refer to the sections “About Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” for definitions of our non-GAAP financial measures and reconciliations of GAAP to non-GAAP amounts, respectively. Forward-looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the proposed acquisition of Serra Verde Group, the expected timing and completion of the Serra Verde acquisition, the expected benefits of the Serra Verde acquisition, the expected benefits from our transactions with Carester SAS and Texas Mineral Resources Corp. (“TMRC”), development of our magnet production facility at Stillwater and our refined metals production facility at Blacksburg, the benefits expected from the acquisition of Less Common Metals Ltd., the ability to satisfy the funding conditions of and to realize the anticipated benefits of the anticipated funding from the U.S. Department of Commerce, demand for magnets from our production facility once it is operational, the opportunity, size and growth rates of the rare earth element market and the market for related magnets, our ability to process raw materials for magnet production including through swarf processing and development of the Round Top Project, development of our Wheat Ridge, Colorado hydrometallurgical demonstration facility, development and results of the Round Top Project, the ability to raise financing in the future and to comply with restrictive covenants contained in our long-term indebtedness, the future financial performance of our business, the ability to retain or recruit key personnel, the ability to comply with laws and regulations applicable to our business, expansion plans and opportunities, our anticipated operating and financial performance, our business plans, strategy, goals and prospects, our plans for and prospects of our other acquisitions, investments and other business development activities, including the announced Carester transaction, our ability to successfully capitalize on growth opportunities and prospects, and other statements regarding the Company’s expectations for future development, operations, strategies, transactions and financial performance. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “accelerate,” “advance,” “aim,” “anticipate,” “believe,” “can,” “continue,” “could,” “estimate,” “expect,” “growth,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “vision,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from our expectations, including without limitation: risks that the proposed transactions with Serra Verde and Carester may not be consummated on their anticipated timeline or at all; risks that we may not realize the anticipated benefits of our proposed, current, and prior acquisitions, including transactions with Serra Verde, Carester and TMRC, including expected synergies, financial performance, estimated EBITDA and, in the case of Serra Verde, integration of operations, on the anticipated timeline or at all; ; political, economic, regulatory, tax, currency and other risks associated with Serra Verde’s operations in Brazil and Switzerland following the consummation of the Serra Verde acquisition; the assumption of substantial indebtedness under Serra Verde’s Retained Finance Agreement, which contains restrictive covenants and other requirements that could adversely affect the combined company’s financial flexibility and operations; the potential failure to satisfy the conditions precedent to the offtake agreement entered into in connection with the Serra Verde acquisition, and the possibility that the offtake agreement may be terminated for any reason; the risk that the planned CEO transition is contingent on the timely closing of the Serra Verde acquisition and that any delay or failure of this acquisition to close could result in leadership uncertainty and may require the Board to identify an alternative CEO successor; the ability of our Stillwater magnet manufacturing facility to generate revenue and the ability of our planned Blacksburg facility to commence commercial operations on the timing and with the production capacity anticipated or at all; our limited operating history; our ability to commercially extract minerals from the Round Top deposit on our anticipated timeline or at all; risks that we may experience delays, unforeseen expenses, increased capital costs, and other complications while developing our projects; our ability to raise necessary capital on acceptable terms or at all; potential dilution to existing stockholders and adverse effect on our stock price if we issue additional common stock or equity-linked securities; the volatility of our stock price; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow us to develop and commercially operate our Stillwater facility and other facilities; our ability to meet individual customer specifications and produce a consistently high quality product; fluctuations in demand for and prices of neo magnets and our other products, including without limitation as a result of dumping, predatory pricing and other tactics by the Company’s competitors or state actors or the overall competitive environment; our ability to achieve positive cash flow or profitability or the ability to access cash flow within our corporate structure due to restrictions contained in our financing agreements; our ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of our neo magnets and other products into definitive orders; our dependence, in part, on the growth of existing and emerging uses for neo magnets; the risk that additional manufacturing, refining and mining competitors could result in a reduction in revenue; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which we operate or sell products or otherwise; our designation on an export control list by China which has had and is expected to continue to have an adverse impact on our ability to source key raw materials and supplies from China; war, terrorism, natural disasters or public health emergencies; our ability to retain or recruit key personnel; environmental, health and safety regulations; the receipt of funding from the U.S. Department of Commerce is subject to the achievement of milestones which may not be achieved on the expected timeline or at all; and our ability to comply with requirements for federal, state and local government incentives and financing. Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company’s filings with the SEC, including the Company’s most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future events or developments. About Non-GAAP Financial Measures This press release includes certain non-GAAP financial measures, including adjusted net loss attributable to USA Rare Earth, Inc., and adjusted net loss per share attributable to USA Rare Earth, Inc. (defined as follows): Adjusted net loss attributable to USA Rare Earth, Inc. is defined as net loss attributable to USA Rare Earth, Inc. adjusted for declared and deemed dividends, and interest accretion, and loss (gain) on fair market value of financial instruments, net. Adjusted net loss per share attributable to USA Rare Earth, Inc. - Diluted is defined as adjusted net loss attributable to USA Rare Earth, Inc. divided by weighted average diluted shares outstanding. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles in the United States of America, or GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same captions, and may differ from non-GAAP financial measures with the same or similar captions that are used by other companies. As such, these non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, financial measures calculated in accordance with GAAP. The Company believes these non-GAAP measures of financial results provide useful supplemental information to management and investors regarding certain financial and business trends related to the Company’s financial condition and results of operations, and as a supplemental tool for investors to use in evaluating its ongoing operating results and trends and in comparing its financial measures with other companies that present similar non-GAAP financial measures. The Company uses these non-GAAP financial measures to analyze its operating performance and future prospects, develop internal budgets and financial goals, and to facilitate period-to-period comparisons. The Company believes these non-GAAP financial measures reflect an additional way of viewing aspects of its operations that, when viewed with its GAAP results, provide a more complete understanding of factors and trends affecting its business. Current and prospective investors should review the Company’s audited annual and unaudited interim financial statements, which are filed with the U.S. Securities and Exchange Commission, and not rely on any single financial measure to evaluate our business. Conference Call to Discuss Financial Results The Company will hold a conference call on Monday, August 10, 2026, at 5:00 PM ET to discuss its second quarter and six months ended June 30, 2026 results. Please see below for dial-in information. LIVE CONFERENCE CALL:Monday, August 10, 2026, at 5:00 PM ETUS / Canada Toll-Free: +1 (833) 890-8030Local / International Toll: +1 (412) 564-6268 CONFERENCE CALL REPLAY:Available approximately three hours after conclusion of the live call.Expiration: September 10, 2026US/Canada Toll-Free: +1 (855) 669-9658International Toll: +1 (412) 317-0088Access code: 7520719 Investors may also access the live call and the replay over the internet on the “Events” page of the Company’s investor website located at www.usare.com or at https://event.choruscall.com/mediaframe/webcast.html?webcastid=SCYm7iDr. Disclosure Information USA Rare Earth uses the investor relations section on its website as means of complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor USA Rare Earth’s investor relations website in addition to following USA Rare Earth’s press releases, SEC filings, and public conference calls and webcasts. About USA Rare Earth USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its development of magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil (subject to closing the SVG transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors. For more information, visit www.usare.com. Investor Relations ContactJ.B. Lowe, CFAVP, Head of Investor [email protected] Media Relations ContactCollected StrategiesDan Moore / Scott [email protected] _____________(1)     Refer to the section “About Non-GAAP Financial Measures” for an explanation of our use of non-GAAP financial measures and the definitions of such measures.

Expected to position USA Rare Earth among the few companies outside China capable of producing separated heavy rare earth oxides — including dysprosium, terbium and yttrium Extends the Company’s integrated platform of proprietary technology and capabilities spanning mining, processing and separation, metals, alloys and magnets WHEAT RIDGE, Colo., June 15, 2026 (GLOBE NEWSWIRE) -- USA Rare Earth, Inc. (Nasdaq: USAR) (“USAR”, “USA Rare Earth”, or the “Company”), a rare earth, critical minerals and advanced materials company, today announced the commissioning of its hydrometallurgical demonstration facility in Wheat Ridge, Colorado. First production of separated oxides is targeted for the third quarter of 2026 and is expected to make USA Rare Earth one of the few Western companies capable of delivering strategic heavy rare earth oxides at commercial quality — the latest milestone in USA Rare Earth’s mission to build a global leader in rare earths, critical minerals and advanced materials. USAR is building a fully integrated, global rare earth and critical mineral value chain, with embedded optionality for both supply and offtake at each link in the chain. Oxide production is expected to be supplied from a growing number of sources including Serra Verde,1 the only scaled producer of all four magnetic rare earths — including heavy rare earths — outside of Asia; Round Top, one of North America’s richest known sources of heavy rare earths with production targeted for late 2028; and other potential third-party sources. The resulting oxides are expected to feed Less Common Metals (LCM), the Company’s subsidiary, one of the few commercial-scale metal, alloy and strip cast producers outside of China, which in turn is expected to supply USA Rare Earth’s permanent magnet business. “The hydromet facility is the latest example of the proprietary technology and capabilities USA Rare Earth is scaling across the entire value chain,” said Barbara Humpton, Chief Executive Officer of USA Rare Earth. “From access to the limited supply of heavy rare earth feedstock, to processing and separation we are advancing at Wheat Ridge and through our planned investment in Carester, to the metals and alloys produced at LCM, to the permanent magnets we manufacture in the United States, we are rapidly building the only fully integrated rare earth platform of its kind outside China — moving deliberately and at speed to be the partner of choice in the materials the most critical industries depend on.” The facility has commenced an initial campaign to de-risk three processing flowsheets in parallel: ore from Round Top, third-party mixed rare earth carbonate (MREC) feedstock — including material from Serra Verde’s Pela Ema mine — and rare earth magnet swarf recycling. Insights from the campaigns are expected to underpin the Round Top Definitive Feasibility Study, on track for Q4 2026 completion and Q1 2027 publication, and to guide commercial engineering of the planned on-site Round Top processing facility and the Company’s anticipated third-party MREC processing and magnet swarf recycling facility. “Very few companies outside China have proven they can produce separated oxides of neodymium and praseodymium (NdPr), dysprosium (Dy), terbium (Tb) and yttrium (Y) at commercial quality, and the best practices we have developed in-house are expected to put us in that small group,” said Dr. Alex Moyes, Senior Vice President of Mining and Processing at USA Rare Earth. “The work at Wheat Ridge can help convert proven chemistry into bankable feasibility studies and move us closer to producing the rare earth materials America’s most critical industries depend on — from mine to magnet.” Program Scope and Objectives The demonstration program is structured as a series of campaigns designed to systematically de-risk USA Rare Earth’s proprietary processing flowsheets across three strategic areas: Round Top ore processing. Validating and optimizing the hydrometallurgical flowsheet for ore from Round Top — one of the most significant heavy rare earth and critical mineral deposits in the United States — to produce separated oxides of Dy, Tb, Y, hafnium (Hf), zirconium (Zr) and other strategic elements. Third-party feedstock processing. Producing separated NdPr, Dy, Tb and Y oxides from externally sourced feedstocks — including material from Serra Verde’s Pela Ema mine — supporting potential toll processing and offtake partnerships. Magnet swarf recycling. Recovering NdPr, Dy and Tb from neodymium-iron-boron (NdFeB) magnet swarf, expanding feedstock sources and reinforcing the circularity of the Company’s value chain. Plant Operations The Wheat Ridge plant is fully automated and instrumented for real-time process monitoring across all unit operations, positioning it among the most advanced facilities of its kind in North America. A multi-stage solvent extraction circuit, live SCADA monitoring and an on-site analytical laboratory enable rapid feedback loops and data-driven adjustments, supported by a team of 28 engineers, scientists and technicians operating in rotating shifts. Process data will also serve as the foundational dataset for a digital twin development program with the U.S. Department of Energy’s National Energy Technology Laboratory (DOE NETL), enabling virtual simulation of the full processing flowsheet and accelerating the path to commercial deployment. About USA Rare Earth, Inc. USA Rare Earth, Inc. (Nasdaq: USAR) is building a fully integrated rare earth and permanent magnet value chain across the United States, the United Kingdom, France and Brazil. Through its ownership of Less Common Metals (LCM), one of the world’s leading producers of rare earth metals and alloys, its magnet manufacturing capacity in Stillwater, Oklahoma, the Pela Ema mine in Brazil (subject to closing the Serra Verde Group transaction) and the Round Top deposit in Texas, USA Rare Earth operates across the entire value chain from mining to metal-making, alloy production and neodymium magnet manufacturing. USA Rare Earth is establishing a secure, Western-aligned supply of materials essential to the aerospace and defense, semiconductor, energy, data center, physical AI, mobility, healthcare and industrial sectors. For more information, visit www.usare.com. Forward-Looking Statements This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements include those relating to the objectives, scope, and anticipated benefits of the demonstration plant program and its constituent campaigns; the Company’s ability to validate and optimize its processing flowsheets; the development of bankable feasibility studies; the planned digital twin development program with DOE NETL; the Company’s plans for a commercial processing facility; and the Company’s global value chain strategy. Such statements can be identified by the fact that they do not relate strictly to historical or current facts. Words such as “anticipate,” “believe,” “can,” “could,” “estimate,” “expect,” “growth,” “intend,” “may,” “might,” “plan,” “potential,” “project,” “propose,” “should,” “target,” “will,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements are subject to risks and uncertainties and potentially inaccurate assumptions that could cause actual results to differ materially from the Company’s expectations, including without limitation: the Company’s ability to execute its business plan, including development of the Round Top deposit and its processing and manufacturing facilities; the timing and advancement of expected business milestones; the significant long-term and inherently risky investments the Company is making in mining and manufacturing facilities; the Company’s ability to obtain additional or replacement financing as needed; risks that the proposed transactions with Serra Verde Group, Carester SAS and Texas Mineral Resources Corp. may not be consummated on their anticipated timelines or at all; the Company may not realize the anticipated benefits of its proposed and prior acquisitions, including expected synergies, financial performance, estimated EBITDA and, in the case of Serra Verde Group, integration of operations, on the anticipated timeline or at all; the ability of the Company’s Stillwater facility or other future magnet manufacturing facilities to commence commercial operations on the timing and with the production capacity anticipated or at all; the Company’s limited operating history; risks that the Company may experience delays, unforeseen expenses, increased capital costs, and other complications in operating its business; potential dilution to existing stockholders and adverse effect on the Company’s stock price if the Company issues additional common stock or equity-linked securities; the volatility of the Company’s stock price; the Company’s ability to satisfy project milestones and other conditions to disbursement under the Company’s financing arrangement with the Department of Commerce (“DOC”) on the anticipated timeline or at all; the Company’s dependence on continued governmental support for the DOC financing transactions, which remains subject to changes in laws, regulations, administrations and appropriations; extensive affirmative and negative covenants, domestic content and national security guardrail provisions and ongoing reporting obligations in the DOC financing agreements that restrict the Company’s operational and financial flexibility; the risk that defaults under the DOC funding agreements could trigger cross-defaults across the Company’s financing arrangements; the impact of the DOC’s equity interest in the Company on the Company’s ability to pursue strategic transactions and on the Company’s relationships with customers, suppliers, partners and other counterparties; the availability of rare earth oxide, metal feedstock and other materials, utilities (including power and water) and equipment in quantities and prices that allow the Company to develop and commercially operate the Company’s Stillwater facility and other facilities; the Company’s ability to meet individual customer specifications and manufacture a consistently high quality product; fluctuations in demand for and prices of the Company’s products, including without limitation as a result of dumping, predatory pricing and other tactics by the Company’s competitors or state actors or the overall competitive environment; the Company’s ability to achieve positive cash flow or profitability or the ability to access cash flow within the Company’s corporate structure due to restrictions contained in the Company’s financing agreements; the Company’s ability to convert current commercial discussions and/or memorandums of understanding with customers for the sale of the Company’s neo magnets and other products into definitive orders; geopolitical developments or disruptions, such as changes in the political environment, export/import or environmental policy of the People’s Republic of China, the United States or other countries in which the Company operates or sells products or otherwise; war, terrorism, natural disasters or public health emergencies; the Company’s ability to retain or recruit key personnel; environmental, health and safety regulations; and the Company’s ability to comply with requirements for federal, state and local government incentives and financing. Additional risks and detailed information regarding factors that may cause actual results to differ materially has been and will be included in the Company’s filings with the U.S. Securities and Exchange Commission, including the Company’s most recently filed Annual Report on Form 10-K and any subsequent Quarterly Reports on Form 10-Q and subsequent filings. Any forward-looking statements speak only as of the date of this press release (or such other date as is specified in such statements), and the Company undertakes no obligation to update any forward-looking statements as a result of new information or future developments except as required by law. Investor Contact JB Lowe Vice President, Investor Relations USA Rare Earth, Inc. [email protected] Media Contact Collected Strategies [email protected] ____________________________ 1 Pending closing of the Company’s proposed acquisition; sourcing of feedstock to be completed via a third-party special purpose vehicle capitalized by a U.S. Government agency as well as private capital sources.

Image source: The Motley Fool. Wednesday, May 13, 2026 at 5 p.m. ET Chief Executive Officer — Barbara Humpton Chief Financial Officer — William Steele Need a quote from a Motley Fool analyst? Email [email protected] Barbara Humpton: Thank you, J.B. USA Rare Earth is at a defining moment. Our mission remains clear, to be the global champion in rare earths and the partner of choice for the advanced materials that underpin Western national security and technological innovation. The initial months of 2026 were defined by our transformational and strategic actions. By announcing 3 critical transactions, Serra Verde, Carester and the consolidation of TMRC, we are successfully closing the loop on our global mine to magnet value chain. Upon completion of these transactions, USA Rare Earth will operate a fully integrated industrial platform that spans 3 continents, and we believe will secure the critical materials essential for Allied technological leadership. Our agreement to acquire 100% of the Serra Verde Group is a watershed moment for the Western rare earth industry. This transaction secures a one-of-a-kind operating asset, the Pela Ema mine in Brazil, which is currently the only scaled producer of all 4 magnetic rare earths outside of Asia. Serra Verde's 100% 15-year offtake agreement with a U.S. government financed SPV that includes price floors for not only NdPr, but for the first time, dysprosium and terbium is a watershed moment. This will provide transparent, reliable price signals previously absent in the market. Additionally, this transaction is expected to accelerate our path to positive cash flow generation, effectively providing an immediate upstream bridge to our domestic Round Top Project. We also believe this acquisition strengthens our U.S. and allied government relationships and provides multiple embedded growth opportunities, including a potential Phase 2 doubling of Pela Ema's production capacity. The transaction adds significant leadership depth through the appointment of Sir Mick Davis and Thras Moraitis to our Board, with Mr. Moraitis also serving as President of the combined company. Next, our planned strategic investment in Carester, amplifies our global leadership in heavy rare earth processing, including from recycled sources. We believe our partnership will provide us with contractual and equity relationships across the allied supply chain. In addition, it will grant us access to world-class engineering capabilities and IP that we can apply to the development of our own facilities. Finally, by consolidating 100% economic ownership of the Round Top Project, we will streamline our operations, governance and decision-making to fully capture the high-margin growth of one of North America's most unique heavy rare earth deposits. Together, we believe these 3 moves will transform USA Rare Earth from a development stage project into the world's most comprehensive integrated rare earth platform, and we're building this platform from a strong financial position. In January, we announced a letter of intent with the Department of Commerce to provide $1.6 billion in funding. We're currently in the final stages of completing definitive documentation and expect this process to be finalized this month. This support following an intense due diligence effort represents a validation of our asset base, business model and growth plans and will significantly derisk our path to full-scale production. We also successfully closed a $1.5 billion PIPE. This capital, augmented by the anticipated funding from the Department of Commerce provides the ability for us to accelerate our build-out, not only in the United States but across 3 continents. Beyond our strategic acquisitions and investments, we also made great strides in the development of our operations as we build the partner of choice in rare earth elements, oxides, metals, and magnets. The sense of urgency we're seeing from industrial partners and customers has increased dramatically in recent quarters and is present across each of our businesses. The growing interest in our capabilities includes deep engagement with blue-chip OEMs, Tier 1 defense contractors and pioneers in the data center, aerospace and physical AI infrastructure sectors. For many of our potential partners, the need for a secure and reliable supply chain for rare earths and critical minerals has moved from an aspiration to a strategic imperative. We're moving with speed to meet this need, and we hit the ground running in the first quarter with several major achievements. In March, we commissioned Phase 1a at our Stillwater magnet manufacturing plant. This transition from developer to operational manufacturer will allow us to initiate customer-ready production of sintered NdFeB magnets in the second quarter, followed by fulfilling sales to customers in the second half of 2026. Our commercial momentum is clear with frequent on-site visits from leaders in the semiconductor, industrial motor, heavy equipment and aerospace sectors. We're seeing strong interest from potential customers in qualifying and purchasing non-China NdFeB magnets. In several cases, we're seeing demand for safety stocks of semi-finished block magnets that can be finished into final shapes as needed. In our midstream operations, we're scaling metal, alloy and strip cast capacity to meet our own internal manufacturing demand and increased interest from a broader set of potential customers. Here, too, we're seeing inquiries for both real-time needs and safety stock. Complementing this growth, we have advanced our plans for less common metals in Lacq, France. Co-located with Carester's Caremag facility, this hub will establish a comprehensive European supply chain for rare earth processing and metal production, further strengthening our globally integrated mine to magnet platform. This heightened level of interest for specialized light and heavy rare earth metals underscores the unique technical capabilities we possess at LCM. Beyond our capabilities in magnetic metals and alloys, we're receiving an increasing number of inquiries for more specialized products, including gallium and gadolinium. And just last month, we completed our first commercial Yttrium metal pour, which places us among a limited number of producers outside of China for a metal essential to high-temperature aerospace components such as turbine blades. Executing this vision requires the A team. We recently expanded our leadership team with the appointments of Valerie Ford Jacob as Chief Legal Officer; Gregory Bowman as Chief Global Policy Officer and Head of External Affairs; J.B. Lowe as Vice President and Head of Investor Relations; and Chaitan Kansal, CK as Chief Commercial Officer. Upon the closing of the Serra Verde Group transaction, the addition of Thras Moraitis as President will further strengthen our executive leadership team. We've also added vital expertise to our Board with Thras, Sir Mick Davis, and GlobalFoundries executive chairman, Dr. Thomas Caulfield, whose experience in scaling complex industrial platforms is essential to our global speed. Now let me hand it off to Rob Steele to cover our financial performance. William Steele: Thanks, Barbara. Now turning to our Q1 results. Revenues for the quarter were approximately $6 million derived from our metal making business at LCM. We are actively expanding our operations at LCM to meet the growing demand for metals and alloys and expect revenue to increase at LCM throughout 2026. Gross profit was slightly positive, and we expect gross margins at LCM to improve as utilization at the U.K. facility increases throughout the year. Operating expenses in the quarter were approximately $37 million. When adjusted for M&A-related expenses and stock-based comp, our ongoing operating expenses were approximately $25 million. We reported a net loss attributable to common stockholders of $67 million or a loss per share of $0.34. This includes a noncash fair value adjustment of $43.6 million related to our warrant and earn-out liabilities. Excluding this, our adjusted net loss was $24.1 million or an adjusted net loss per share of $0.12, which we believe is a more accurate reflection of our core operating performance. Moving to our balance sheet. We are in a very strong financial position, ending the quarter with approximately $1.75 billion in cash, which includes proceeds from the $1.5 billion PIPE that closed in January. Our strong cash position has provided us the flexibility and liquidity to execute and accelerate our mine to magnet strategy, which our recently announced investments and activities demonstrate. As we keep advancing, we will continue to actively and prudently manage the capital intensity required to build out a world-class integrated value chain. Capital expenditures for the quarter were approximately $40 million, largely related to the build-out of our magnet manufacturing capacity and ramp-up at LCM, U.K. As Barbara mentioned, we are currently in the final stages of completing definitive documentation for our LOI with the Department of Commerce and expect this process to be finalized this month. Moving to an update on our operations. At our Wheat Ridge R&D headquarters, our hydrometallurgical facility is currently commissioning solvent extraction circuits for the 3 demonstrations, the Round Top flow sheet, third-party MREC separation and magnet swarf recycling. All 3 demonstrations are expected to be up and running within the next several weeks. We have also commenced vat leaching at Round Top, which will supply feedstock to the hydromet facility. At Round Top, we are moving forward with our definitive feasibility study, which we expect to be completed year-end and published in Q1 2027. We have already put in new infrastructure and have initiated drilling on our water lease. Key process data is currently being validated by Fluor and additional processing inputs critical to the PFS will be completed within the next month. We are also in the process of awarding our civil geotechnical drilling contract for all mining infrastructure, including the heap leach pad sites at Round Top. And in addition to the demonstration work at Round Top and at Wheat Ridge, we will soon commence a 3-rig drilling campaign to drill over 15,000 feet of core for resource upgrading and geotechnical pit design. At Stillwater, we are ramping magnet capacity to reach a run rate of 600 metric tons per annum by year-end. After commissioning Phase 1a in March, we have started to produce commercial magnets that can be used for customer qualification. As Barbara mentioned, much of the near-term demand we see in magnets is from customers looking to build safety or insurance stock of semi-finished block magnets, which we are currently producing at Stillwater. In addition, our finishing equipment is already on site and should be up and running at the beginning of Q3. In midstream, we expect LCM to reach 3,000 metric tons per annum of metal making and strip cast capacity by Q4. As Barbara mentioned, beyond our growing internal metal and alloy needs, we are seeing heightened third-party demand for the unique technical capabilities we possess at LCM from both NdFeB and samarium-cobalt manufacturers and specialty rare earth and critical metal and alloy customers. We are proud of how much we've accomplished this year so far and look forward to closing all of our transactions. While we will not be providing financial guidance at this time, we do look forward to our first Investor Day, which we are planning for Q3 2026 after we close the Serra Verde transaction. Operator, we are now ready to open the lines for Q&A. Operator: [Operator Instructions] The first question is from Derek Soderberg with Cantor Fitzgerald. Derek Soderberg: I wanted to start with the Serra Verde acquisition. In the 8-K, it looks like the valuation currently is $3.64 billion. That might be higher than previous targets. But it says there's potentially a 25% increase should your share price perform. Can you just remind us what the mechanics of the equity portion of the consideration is? Is there a cap on the share issuance? And how should we sort of model the ultimate dilution if the stock performs well here? William Steele: Yes. I mean the way the deal is structured is $300 million of cash and just under 127 million shares of common stock. Derek Soderberg: Got it. That's helpful. And then as my follow-up, sort of a 2-part question on the CHIPS funding. It looks like the agreement was supposed to be signed last month. Barbara, you talked about some intense due diligence. Can you maybe just expand on what might have caused the slight delay? And then I'm curious if anything has changed regarding the milestones the government is requiring to unlock the various tranches of the capital? Barbara Humpton: Okay. Great. Yes, Derek, thanks. Happy to address this. First of all, let me say I am so thrilled to be working with the Department of Commerce because imagine since January, when we first announced the letter of intent, we've had significant announcements on our side. And I will tell you that our -- the professionals at the Department of Commerce, first of all, abided by all guidelines in terms of how they treated us through this. They were an investor and recognize the fact that we have a growing business we needed to attend to. And when we shared with them our intent to, for instance, acquire Serra Verde, it caused them to have to go back through and review and validate decisions they had already made. I'm happy to say that every move we've made has actually strengthened our deal, but there was great work to be done on the commerce side. So we are in the final stages. We look forward to closing the transaction very shortly, and we'll be back to you with news. Rob, anything you would add to answer along the lines? William Steele: No, that's -- I think that really covers it. We're in the final stages of the documentation, and we'll be sharing more when we complete it. Barbara Humpton: Yes. Grateful to those patriots who are busy helping us get this launched. Operator: The next question is from Neal Dingmann with William Blair. Neal Dingmann: Nice details. My question is just on feedstock. You talked about ramping up. I know you continue to be right on schedule for 1A, the 600, I think by the end of this year, and then ramping to the 1,200. Do you already have that feedstock? Is that -- will that be coming partly from Carester? Or could you just talk about where you're going to be sourcing that? William Steele: Yes. I mean, look, we already have the feedstock to commence operation in the initial phases here. And we have a lot of opportunities as we ramp production going forward, including from Carester, where we already have plans and an agreement with them to recycle our swarf that we produce from the Stillwater magnet making facility. And as you know, they have essentially in Europe, unmatched heavy rare earth processing capability. But there's also a lot of other sources that we can obtain feedstock, including through Serra Verde and hopefully, the SPV associated with that. So we feel very good about the position we're in and our ability to scale our feedstock with our operation. Neal Dingmann: Perfect. And then just secondly, I really like the Carester deal, the strategic partnership and everything announced there. Could you talk about just timing behind as far as -- I don't know if you... William Steele: We lost you, Neal. Operator: Yes. Unfortunately, Neal's line disconnected right now. So we're going to move to -- [Operator Instructions] The next question is from Suji Desilva with ROTH Capital. Sujeeva De Silva: So Barbara, you highlighted the customers and wanting safety stock. I'm just curious if you could kind of give us some sense, maybe quantify qualitatively how drastic the situation is relative to where the customers would like to be and if that could soak up the first several quarters or years even of your demand just to get customers in a comfortable position? Barbara Humpton: Yes. I think this is a really critical thing for us to be sharing with all of you about our sales strategy in magnets. We recognize that the situation is dire. Should China choose to withhold materials at any time, it's critical for manufacturers in the U.S. and with our allies to be able to get access to materials. So our strategy is not to devote our manufacturing lines to a small number of offtakers. Instead, we're focused in on reaching a broad set of stakeholders across many sectors of the economy. And already, we're beginning to hear pronouncements from, for instance, auto OEMs who are directing their suppliers to maintain up to a 1-year supply of permanent magnets and/or metals. So we know the demand is out there. We are being approached by aerospace and defense customers who have a January 1, 2027 deadline for being able to source materials from -- sources outside of China. And really, the key thing here is, let me go back to magnets. When we deal with magnets, the process, the sales process is, first, identify potential demand. Let's call that the top of the funnel. Then there's an on-site validation process. We're entertaining many, many potential customers with on-site visits. Third is to actually get a production line up and running, check, completed that during Q1. Now we're capable of producing the prototype material that customers need in order to do their own independent validation of the quality of our magnets. That process is going on right now. That ultimately leads to purchase orders, and we expect those to start flowing in the second half of the year. Now what's interesting is metals are similar, but -- so we've had a lot of success with customers visiting less common metals, having an opportunity to get prototype material, including that very coveted Yttrium metal. So we look for that to get exciting. The thing I've been most surprised by is that here we are doing our pilot drilling and the early demonstration work, our pilot plant, et cetera, for Round Topo and already, we have customers lining up to establish supply agreements for the oxides that we'll be producing from that deposit. I am very bullish on the demand signal being strong. And the only question we have to our team is how fast can we move. Sujeeva De Silva: That's very helpful color. And then maybe for Rob, there were some filings after the close of registrations. Can you talk about which of those are additional shares versus existing shares, new shares planned? Any color there would be helpful. William Steele: Sorry, on the registration statements? Sujeeva De Silva: Correct. No, I mean those are new shares versus existing shareholders registering. William Steele: Yes. I mean it's a combination of shares that are being registered right now. So as part of our merger process, of course, we're going through a proxy where we're registering the shares that we're acquiring, and we're maintaining the registration statements for the securities that we issued associated with the PIPE. And so there's multiple shares that we're registering right now. Operator: [Operator Instructions] Our next question is from Neal Dingmann with William Blair. Neal Dingmann: Sorry about that. I'm not sure what happened. For you Rob, just my question was -- the second question I had was just on Carester love the strategic partnership there. Any details you could give as far as timing, volumes, kind of all that good stuff, how quickly we might continue to see that ramp up? William Steele: Yes. So I mean, timing of the close is coming up. So we're still working on final definitive documentation there. But their facility starts ramping near the end of this year is when they come online, and they'll scale over the course of 2027. And they're going to be sourcing and servicing in Europe. And some of that material will ultimately flow back into us as well as into -- ultimately into Japan. Neal Dingmann: Do you know what percent, Rob, yet is for you all? Or is that too early to tell? William Steele: I mean it's in our agreement. So we have a fixed amount, but it's based upon scaling. And so at this point, it's a little bit too early to tell. Barbara Humpton: Yes. I want to pause on Neal's question because you'll see plenty in the press today about the fact that processing is the weak link in the chain. And so what I think investors really should focus in on is that our ability to bring processing from the world leaders outside of China, have that intellectual property available to the team at USA Rare Earth gives us the ability to work with, not only our own deposits, but deposits anywhere. The third-party MREC line that we're standing up as part of our deal with the Department of Commerce says we can take material from other deposits and actually produce oxides that, again, flow through this value chain. We're not aiming for an integrated supply chain. What we're doing is scaling every link in the chain, recognizing there are multiple offtakers for not only the raw minerals, the oxides as well, ultimately the metals and then the magnets. Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Barbara Humpton for any closing remarks. Barbara Humpton: Great. Thank you so much. And I want to thank everybody for joining us today. Let me come back to the question that Suji asked about customers because there's a real distinction here about the strategy we're taking at USA Rare Earth. We know we're creating the platform that will be the leader within the global rare earth industry. As we get started with this flywheel, we're seeking to serve as many customers as possible, supplying safety stock, knowing that this is the high-margin play. This is going to be generating shareholder value as we address those areas of the economy that are most critical. Now we're playing out this strategy now. You've seen how fast we've been moving. And I just want to call everybody's attention to the things that are still ahead of us this year. We are on the brink of signing that definitive agreement with the Department of Commerce. We're getting ready to commission the hydrometallurgical demonstration facility in Colorado, and you can look for news this quarter. We're going to be working on this definitive feasibility study for Round Top throughout the year, but look for details as we accomplish significant milestones toward that end. In Stillwater, we're building out the capacity and reaching the 600 metric ton per annum run rate that we're striving for. And then we're scaling out metal making. We'll be providing news to you, the shareholders, as we go because we want you to have insight as we build out this global leader. Thanks for joining us today. Operator: The conference has now concluded. Thank you for attending today's presentation. You may now disconnect. Before you buy stock in USA Rare Earth, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and USA Rare Earth wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $472,205!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,384,459!* Now, it’s worth noting Stock Advisor’s total average return is 999% — a market-crushing outperformance compared to 208% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of May 14, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. USA Rare Earth (USAR) Q1 2026 Earnings Transcript was originally published by The Motley Fool

Interested in USA Rare Earth Inc.? Here are five stocks we like better. USA Rare Earth is aggressively reshaping itself into a mine-to-magnet platform through the planned acquisition of Serra Verde, a strategic investment in Carester and full economic control of the Round Top project. Management says the moves are intended to build a vertically integrated rare earth supply chain outside China. The company reported early operating progress but continued losses, with about $6 million in Q1 revenue from Less Common Metals and a net loss of $67 million. USA Rare Earth ended the quarter with roughly $1.75 billion in cash after its January PIPE financing. Magnet production and U.S. government funding are nearing key milestones, as the Stillwater plant began phase 1A commissioning and the company expects customer-ready magnet production in Q2. Management also said it is close to finalizing a $1.6 billion funding agreement with the U.S. Department of Commerce. USA Rare Earth's $2.8B Power Play to Secure the Supply Chain USA Rare Earth (NASDAQ:USAR) said its first quarter was marked by a series of strategic transactions intended to turn the company into a fully integrated rare earths platform spanning mining, processing, metals and magnet production. On the company’s first-quarter 2026 earnings call, Chief Executive Officer Barbara Humpton said the company is pursuing what it describes as a “global mine-to-magnet value chain” through the announced acquisition of Serra Verde Group, a planned strategic investment in Carester and the consolidation of 100% economic ownership of the Round Top project. → Rocket Lab Just Hit a New All-Time High—Time to Buy or Let It Breathe? MarketBeat Week in Review – 03/30 - 04/03 “USA Rare Earth is at a defining moment,” Humpton said, adding that the company aims to become “the global champion in rare earths” and a supplier of materials tied to Western national security and technological innovation. Humpton described the agreement to acquire 100% of Serra Verde Group as a “watershed moment” for the Western rare earth industry. She said Serra Verde’s Pela Ema mine in Brazil is currently the only scaled producer of all four magnetic rare earths outside Asia. → MP Materials Is Quietly Building a Rare Earth Powerhouse USA Rare Earth: As Losses Rise, Operational Progress Matters More Humpton also highlighted Serra Verde’s 15-year offtake agreement with a U.S. government-financed special purpose vehicle, saying it includes price floors not only for neodymium-praseodymium, or NdPr, but also for dysprosium and terbium. She said the structure should provide price signals that have previously been lacking in the market and is expected to accelerate USA Rare Earth’s path toward positive cash flow. In response to a question from Cantor Fitzgerald analyst Derek Soderberg, Chief Financial Officer Rob Steele said the Serra Verde transaction is structured as $300 million in cash and “just under 127 million shares of common stock.” → Micron Investors Face a High-Stakes Moment After the Latest Rally The company also discussed its planned strategic investment in Carester, which Humpton said would expand USA Rare Earth’s role in heavy rare earth processing, including materials sourced from recycling. Steele said the Carester facility is expected to begin ramping near the end of 2026 and scale during 2027, sourcing and servicing material in Europe, with some material ultimately flowing back to USA Rare Earth and to Japan. Separately, Humpton said consolidating full economic ownership of the Round Top project would simplify operations, governance and decision-making around what she called one of North America’s most unique heavy rare earth deposits. Steele said first-quarter revenue was approximately $6 million, generated by the company’s metal-making business at Less Common Metals, or LCM. Gross profit was slightly positive, and he said the company expects LCM revenue and margins to improve as utilization at the U.K. facility rises throughout 2026. Operating expenses were approximately $37 million. Excluding M&A-related expenses and stock-based compensation, Steele said ongoing operating expenses were about $25 million. The company reported a net loss attributable to common stockholders of $67 million, or $0.34 per share. Steele said that figure included a $43.6 million non-cash fair value adjustment tied to warrant and earn-out liabilities. Excluding that adjustment, adjusted net loss was $24.1 million, or $0.12 per share. USA Rare Earth ended the quarter with approximately $1.75 billion in cash, including proceeds from a $1.5 billion private investment in public equity that closed in January. Capital expenditures were approximately $40 million, largely tied to the build-out of magnet manufacturing capacity and the ramp-up at LCM U.K. Humpton and Steele said the company remains in the final stages of completing definitive documentation for a previously announced letter of intent with the U.S. Department of Commerce for $1.6 billion in funding. Humpton said the company expects the process to be finalized this month. Asked about the timing by Soderberg, Humpton said developments since the January letter of intent, including the Serra Verde acquisition plan, required the Department of Commerce to revisit and validate earlier decisions. “Every move we’ve made has actually strengthened our deal,” Humpton said, adding that the company is in the final stages of the process and expects to provide updates after completion. USA Rare Earth said it commissioned phase 1A at its Stillwater magnet manufacturing plant in March. Humpton said that milestone allows the company to begin customer-ready production of sintered NdFeB magnets in the second quarter, with sales to customers expected in the second half of 2026. Steele said the company is ramping Stillwater magnet capacity toward a 600 metric ton per year run rate by year-end. He said the facility has started producing commercial magnets for customer qualification, and finishing equipment is already on site and expected to be operating at the beginning of the third quarter. Humpton said potential customers are showing strong interest in non-China NdFeB magnets, particularly for safety stock. She said USA Rare Earth is seeing engagement from blue-chip original equipment manufacturers, tier 1 defense contractors and companies in data centers, aerospace and “physical AI infrastructure.” During the Q&A session, ROTH Capital analyst Suji Desilva asked about customer demand for safety stock. Humpton said the company is seeking to serve a broad group of customers rather than dedicating production lines to a small number of offtakers. She said some automotive OEMs are directing suppliers to maintain up to one year of supply of permanent magnets or metals, and aerospace and defense customers face a Jan. 1, 2027, deadline for sourcing materials from outside China. “I am very bullish on the demand signal being strong, and the only question we have to our team is: How fast can we move?” Humpton said. Steele said the company’s Wheat Ridge R&D headquarters is commissioning solvent extraction circuits for three demonstrations: the Round Top flow sheet, third-party mixed rare earth carbonate separation and magnet swarf recycling. He said all three demonstrations are expected to be operating within the next several weeks. At Round Top, Steele said the company is moving forward with a definitive feasibility study expected to be completed by year-end and published in the first quarter of 2027. He said USA Rare Earth has begun vat leaching, initiated drilling on its water lease and plans to start a three-rig drilling campaign for more than 15,000 feet of core. For LCM, Steele said the company expects to reach 3,000 metric tons per year of metal making and strip cast capacity by the fourth quarter. Humpton also said the company recently completed its first commercial yttrium metal pour, describing yttrium as important for high-temperature aerospace components such as turbine blades. USA Rare Earth did not provide financial guidance. Steele said the company plans to hold its first Investor Day in the third quarter of 2026 after the expected closing of the Serra Verde transaction. USA Rare Earth (NASDAQ: USAR) is a development-stage critical minerals company focused on advancing a fully integrated rare earth element (REE) and lithium project in the United States. Its flagship asset is the Round Top deposit in West Texas, a large, polymetallic concentration of light and heavy rare earth elements, lithium and other co-products. The company seeks to move this asset through resource delineation, pilot-scale processing and eventual commercial production to address growing domestic demand for secure REE supply chains. In addition to exploration, USA Rare Earth is engineering an on-site separation facility that will utilize dry magnetic separation and hydrometallurgical flowsheets to produce mixed rare earth carbonates. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "USA Rare Earth Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.

USA Rare Earth (NASDAQ:USAR) reported first-quarter financial results on Wednesday. The transcript from the company's first-quarter earnings call has been provided below. This content is powered by Benzinga APIs. For comprehensive financial data and transcripts, visit https://www.benzinga.com/apis/. Access the full call at https://event.choruscall.com/mediaframe/webcast.html?webcastid=c1UqC8rH USA Rare Earth reported a cash position of $128.1 million, with plans to spend $60 million in capex for phase one and to double its workforce by the end of 2025. The company is focused on developing a fully integrated supply chain from mining to magnet production and recycling, with significant progress at its Stillwater, Oklahoma facility. Future outlook includes plans to produce 200-500 metric tons of neo magnets in 2026, with flexibility to scale production further, while also seeking non-China based feedstock. Notable strategic initiatives include securing MOUs with companies in high-growth sectors like data centers and drones, and the company remains engaged with over 70 companies across various industries. Management comments highlighted the U.S. government's support for the rare earth sector, positioning USA Rare Earth as a key player in reducing dependency on China for these materials. OPERATOR Good day everyone and welcome to the USA Rare Earth second quarter 2025 earnings conference call. All participants will be in a listen only mode. If you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then 1. Using a touchtone telephone to withdraw your questions you may press star. Please also note today's event is being recorded at this time. I'd like to turn the floor over to Lionel McBee, the vice president of Investor Relations. Sir, please go ahead. Lionel McBee (Vice President of Investor Relations) Thank you. Operator. Hello everyone and welcome to USA Rare Earth's 2025 second quarter earnings conference call. I'm joined today with our Chief Executive Officer Joshua Ballard and our Chief Financial Officer Rob Steele. Earlier this afternoon we issued our second quarter fiscal 2025 results. Our results, earning release and slide presentation can be found on the Investor relations portion of our website at usare.com. Today's call we may make projections and other forward looking statements under the safe harbor provisions contained in the Private Securities Litigation Reform act of 1995 regarding future events or the future financial performance of the Company. These statements may discuss our business, economic and market outlook, growth expectations, new products and their performance, cost structure and business strategy. Forward looking statements are based on information currently available to us and on management's beliefs, assumptions, estimates or projections. Forward looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors. We refer you to the documents the Company files from time to time with the SEC, specifically the company's Form 10-K and Form 10-Qs. These documents identify important factors that could cause actual results to differ materially from those contained in our projections or or forward looking statements. All statements made during this call are made only as of today, August 11, 2025 and the Company expressly disclaims any intent or obligation to update any forward looking statements made during this call to reflect subsequent events or circumstances unless otherwise required by law. So with that, I'll turn the call over to Josh. Joshua Ballard (Chief Executive Officer) Thank you, Lionel. It's been another exciting quarter in the rare earth, mineral and magnet industries. And before providing perspective on the broader sector developments, I want to emphasize our vision for USA Rare Earth. We are focused on building a highly profitable and fully integrated supply chain from mining, concentrating and separating rare earths to making metals and metal alloys, to forming and finishing rare earth magnets and finally the end of life recycling. We are on a mission to serve a broad array of customers who use, rely on and innovate with metals and magnets across diverse industries and all their varying complexities. We are accelerating development across each of our existing assets while also actively exploring how we will fill in and strengthen any gaps in that mine to magnet strategy while remaining focused on creating shareholder value. Our magnet production facility in Stillwater, Oklahoma is making rapid and tangible progress and remains on target with our commissioning goals. Both our magnet facility in Oklahoma and our research and development facility outside of Denver continue to attract the brightest minds and our highly strategic heavy rare earth Round Top deposit in Texas remains uniquely positioned for its incredible concentration of heavy rare earths and gallium. Taking a step back the Chinese government continues to restrict the export of rare earth metals and magnets by their domestic producers and this is having a profound impact on the multitude of industries that rely on these materials. The cost of rare earth oxides and metals outside of China have increased dramatically, especially for the difficult to obtain heavy rare earths. Tightening Supply we are hearing directly from many of the companies affected by China's restriction on the export of rare earth elements and neomagnets and are working as quickly as we can to address their growing needs. Companies are reaching out to us directly to gain access to domestically sourced magnets for the long term and they have been clear that they require a non China source of supply. Importantly, the US Government has demonstrated its intention to play a key role in supporting the development of the supply chain that we are seeking to develop. The US Government investment in MP materials is an important first step to de risking the sector and has shined a much needed spotlight on the importance of rare earths and rare earth magnets to American industry, technologies and national security. By announcing a price support mechanism to purchase the critical light rare earth mineral oxide NdPr at $110per kg which they recently publicly stated that they plan to replicate, the Trump administration has established an essential tool that will enable us to compete effectively with Chinese producers. At USA Rare Earth. We have a special mix of assets and capabilities that we are leveraging with great effect as we accelerate our own activities in this exciting new world. We have raised the capital we need to begin investing aggressively. We are looking now at ways to advance our plans as quickly as possible, which I believe is our greatest path to value creation for this company, our shareholders and customers. Before I dive into the operational details, let's turn the call over to Rob for a review of our financials. Rob Steele (Chief Financial Officer) Thanks Josh. Let me begin with our cash position which stands at 128.1 million as of August 7, 2025. We are one of the best capitalized companies in the sector and have ample cash to support the initial capital expenditures of our first 600 metric ton phase of magnet production. This includes inflows of 22 million from warrant exercises and 17.5 million from the completion of our forward purchase agreements, reflecting the strength and liquidity of our equity. Since our last call, we've continued executing on our strategic plan, advancing our facility build out and expanding our team across key functions. In the first half of the year, we deployed 6.3 million in capital expenditures and grew to approximately 50 full time employees. Looking ahead, the remainder of 2025 marks a critical inflection point. We anticipate spending at least 60 million in capex to support phase one and plan to double our workforce to around 100 employees. Most new hires will be based at our Stillwater, Oklahoma facility focused on operations and highly specialized engineering alongside strategic additions in sales, marketing and corporate functions. We're also enhancing our core infrastructure including systems and cybersecurity to ensure operational readiness by early next year. As our commercial pipeline expands, we are aligning our capital deployment with customer demand, prioritizing capabilities and technologies that position us for long term success. Our recent MOUs with MOOG and ePropelled underscore our intent to expand into high growth sectors like data centers and drones which are expected to double or triple in size over the next decade. These industries drive digital and physical AI as well as next generation defense systems and require massive quantities of precision engineered micro magnets with advanced surfacing capabilities we are actively developing as we look to the industry's future needs. We're also preparing to secure the metal inventory needed to support projected growth in 2026 and beyond. While we're not yet providing formal revenue guidance, we are planning to produce 200 to 500 metric tons of NEO magnets next year with the flexibility to scale further if needed. Our sourcing strategy incorporates both mined and and recycled non China based feedstock and we're laying the groundwork for sustained supply into 2027. In Q4, we'll begin testing our magnet manufacturing line in Stillwater, a key milestone that will allow us to validate our supply chain, train our workforce and qualify raw materials on a commercial scale equipment. These efforts paved the way for commissioning in Q1 2026 on expenses. We continue to expect ongoing operating costs to average 8 to 9 million per quarter through year end, with a heavier spend anticipated in Q4 as we ramp for the second quarter of 2025, we reported an operating loss of 8.8 million which includes 1.8 million in accruals related to the Kleiner litigation, an overhang we resolved immediately following quarter end. This compares to a $3 million operating loss in Q2 2024, primarily driven by increased SG&A associated with our merger and early team expansion. R and D expenses rose year over year reflecting our continued commitment to advancing the round top joint venture flow sheet and building differentiated capabilities for future phases. We reported a net loss attributable to common stockholders of 142.5 million or $1.54 per share. This includes a non cash fair value adjustment of 134.7 million related to financial instruments. Excluding this, our net loss was 7.8 million or $0.08 per share, which we believe is a more accurate reflection of our core operating performance. Going forward, we will provide this adjustment to facilitate your analysis of our results. We ended the quarter with 121.8 million in cash and no significant debt, positioning us well to execute on our near term milestones. In summary, we remain financially strong and are deploying capital with discipline to support scalable long term growth. We continue to evaluate funding options for future phases and we expect our cost of capital to to improve as we execute, potentially including non dilutive government funding opportunities. I'll now turn it back over to Josh for our operational update. Thanks Robin. Joshua Ballard (Chief Executive Officer) Let's start with an update on our sintered neodymium magnet business in Oklahoma where we are making tremendous progress towards producing and shipping our first magnets in early 2026. Our infrastructure work is ahead of schedule and fully on track to be completed before the end of the year. We have begun to commission our equipment in Stillwater and this work will accelerate in the third and early fourth quarters. Our current target is to achieve the critical milestone of producing magnet blocks from our centering furnace before year end. Our finishing equipment is still set to arrive on schedule in the first quarter. We are also making significant progress on the operational and quality systems we will need as we move to production. We have also exceeded our own expectations with hiring as we ramp up our team in anticipation of production early next year across key manufacturing, highly specialized engineering, sales and back office staff. Our effort to bring a rare earth mine to magnet value chain back to America has resonated deeply with our potential candidates. Importantly, we are finding success in hiring key magnet expertise for our Innovations Lab which is critical as we work through the qualification processes of our key customers and then translate that work in the lab to full scale production on the customer side. We are currently engaged with over 70 companies across a variety of industries such as aviation, defense, energy, industrial equipment, car manufacturing, automotive supply, shipbuilding, robotics, mobile phone companies, among others. While we have publicly announced four agreements across the consumer, defense and automotive industries to date, I'm excited to disclose that we have now signed a dozen MOUs and joint development agreements. These agreements alone imply nearly 300 tons of annual shipments and include industries such as oil and gas, automotive supply and other industrial uses. Our High Confidence commercial pipeline exceeds 2,000 tons of annual production, highlighting robust market demand that could fully book our first line before it's even at full capacity. Overall, we've identified roughly 5 to 7,000 tons of potential demand which does not yet include all the volume at each of these customers. With demand coming from both the United States as well as Europe. The majority of this demand is made up of small to medium sized customers which we estimate could make up more than 70% of the market. Similar to the announcement from MP, we are talking to potential defense customers every day and of course we continue to talk to large EV manufacturers as we plan out our future lines. We are just beginning to tap into what we believe is a once in a generation reshoring opportunity as we put further pieces of our business in place. You will see us accelerate our sales process which we will update you on in future calls. To summarize, we continue to make tangible progress and remain on track with our magnet business. We're excited by the overwhelming response we are seeing from customers across the country and in Europe to what we are building. We're also pleased that customers understand the unique value proposition we provide compared to our peers in the market, namely our focus on customer diversity and high value product complexity across their magnet specs. As we move to the critical phase of our plant build, our sales team is focused on signing contracts and filling out our backlog for 2026. Truly exciting times in our magnet business. Now let's now turn to our Round Top deposit and the processing engineering work underway with our team outside of Denver, Colorado which is key to our long term strategy. As I mentioned in my introductory remarks, we have been investing in the processing capabilities now for nearly five years. This is a critical capability that is not isolated to our work with Round Top Mountain but can be leveraged in other areas of our supply chain as we look to secure oxides for the future scaling of our business. We are committed to building out a reliable and cost effective supply of oxides for our future growth. Our strategy and approach could include working with concentrates from other deposits in addition to Round Top as well as recycling or working hand in hand with other processors. With regards to our own development, I'm pleased to report that we have made great progress this past quarter in separating out our bulk gallium as well as heavy and light rare earths into separate concentrate streams. While we are still fine tuning these processes, we are now also turning to the work of extracting the individual minerals from solution, the separation stage, as well as on the recycling of the acids and reagents we need to run a clean operation while reducing costs. Our team remains confident in our engineering approach and in the technical viability of our work separating these critical heavy rare earths and other tech metals. We have added critical members to our team with immense experience in rare earth extraction. In addition, we commend the Trump administration's bold price support actions which underscore the national urgency around rare earth dependence, a mandate that Round Top Mountain is uniquely positioned to deliver on. I look forward to updating you more on our work in Denver moving forward. In closing, our goal is to be the leader in the ex China rare earth supply chain. We are taking a bold and broad based approach to this layered and complex market to provide the greatest value to our customers and shareholders. The US Will face a major deficit of rare earth metals and magnets in the coming years without multiple solutions to the set of problems we face. We are uniquely positioned to be a cornerstone of these solutions due to our significant deposit of heavy rare earth and gallium in Texas, which is unique in the United States. significant deposit of heavy rare earth and gallium in Texas, which is unique in the United States our ability to scale quickly to 5,000 tons capacity in our existing magnet facility facility starting with the commissioning at scale of our first line beginning in early 2026, only a few short months away. Our strong balance sheet with no debt and nearly $130 million of cash positioning us to be a consolidator in the industry. We see several attractive areas for high return regrowth, both organically and via acquisition, and finally our focus on investing where necessary across the supply chain to ensure that we have the feedstock that we need. Recent geopolitical news and government support for the domestic industry, as well as feedback from customers and suppliers globally, has only reaffirmed this strategy. We believe we are well on our way to achieving our mission of becoming a strategic and valuable national asset. I look forward to keeping you updated on our progress in the coming months. Let's move to Q and A OPERATOR ladies and gentlemen. At this time we'll begin the Question and answer session. To ask a question, you may press STAR and then one using a touch tone telephone. To withdraw your questions, you may press STAR and two, if you are using a speakerphone, we do ask that you please pick up the handset prior to pressing the keys to ensure the best sound quality. Once again, that is star. And then one to join the question queue. We'll pause momentarily to assemble the roster. And our first question today comes from Derek Stodderberg. From Kanner Fitzgerald. Please go ahead with your question. Drew Nordquist Hi, this is Drew Nordquist calling for Derek Soderbergh. Thank you guys for taking the questions. I do have a few questions, but my first question is regarding the supply chain. I know you guys said you should have enough supply to last about until 2027. I was wondering if that roughly equates to supplying that first 1200 ton production line. Joshua Ballard (Chief Executive Officer) That's right. Yeah, that's exactly right. Drew Nordquist Okay, and then more focus on the mining operations. I know you guys did a preliminary economic analysis around the Round Top mine. Everything looks good there. I'm just wondering if there's an updated timeline on when the feasibility study could be expected to be done. Joshua Ballard (Chief Executive Officer) No updated timeline today. What we did talk about last quarter was that we're targeting to build a pilot plant over the next couple of years in order to build that pilot plant. Kind of it's contingent on us getting through our flow sheet and pre feasibility study within that time frame. So that's what we're targeting now. The work we're doing now is what's going to define whether or not we keep to that target or not. So that's something we'll keep you guys updated on in the coming months. Drew Nordquist All right, sounds good. My Next question is NP Materials secured a floor price in their DoD deal for magnet production. I was wondering if that sort of directly or indirectly benefits you guys at all. Joshua Ballard (Chief Executive Officer) Well, MP has quite a bit of ndpr. Our strength are heavy rare earths. So it doesn't necessarily help us directly at this time, but where I believe it sends a strong signal and what we take is a great positive from the Trump administration is that they're willing to do price support. So I would expect them to expand that as they look at the broader industry. I think they know they haven't solved, you know, heavy rare earths yet. MP does not have a strong heavy rare earth at the. So, you know, I believe that they're going to be looking at expanding that. And my expectation would be we'd see similar things not only in rare earth, but also other minerals probably as well. Drew Nordquist Okay, and my final question is just regarding cash burn. Do you guys think your current cash level can sustain you up to full 4800 ton reduction or just go for that first 1200 production line before needing additional funding. Yeah, so what we've said previously is Rob Steele (Chief Financial Officer) that the full four lines of production from a CapEx standpoint is at least $250 million and an additional 50 to $100 million of working capital. And our current cash balance right now is north of $130 million actually. So clearly we will need to raise more capital. But having said that, we have about 280 million plus dollars in unexercised warrants already on our balance sheet. And as you've seen, our capital position has grown over the last three months here since we executed the pipe. And that's mainly because of the exercise of our warrants. So we feel like we're in a good position. Drew Nordquist All right, thank you, guys. OPERATOR Once again, if you would like to ask a question, please press star and 1. To withdraw your questions, you may press star and 2. Our next question comes from Suji da Silva from Roth Capital. Please go ahead with your question. Suji da Silva Hi, Joshua, Rob. Lionel, Congrats on the progress here. Trying to understand on the equipment. I think I heard you say you're putting some of the equipment in 1q26. I guess some of that will come in even as the line starts to produce. I'm just curious on the timeframe there and the CAPEX 60 million you said, will that the bulk of that occur in calendar 25 or that spread over the next few years? Joshua Ballard (Chief Executive Officer) Yeah, I'll take the first pass and Ron could take the second. So right now what we're commissioning is what I like to call the backbone. It's everything from where we get strip cast metal, the pieces of metal all, all the way through the centering furnace where we would have magnet blocks come out of the centering furnace ready for finishing, coating and so forth. That is what we're commissioning actively now and what we're focused on getting commissioned by the end of the year. The finishing and equipment and coating equipment is what arrives next year and allows us to finish out the line. So much of that is arriving throughout the first quarter and then we'd be commissioning throughout the first quarter to get into our finishing. Rob, do you want to take the second half? Rob Steele (Chief Financial Officer) Yeah, sure. In terms of the capex, as we said, we expect another 60 plus million this year. That is the bulk of the first phase of line one. Suji da Silva Okay, great. And then I think, Joshua, you referred to inorganic elements of your strategy. Can you just talk about what some of that may entail strategically? Is it tack on Increasing sort of demand geographic perhaps in terms of sourcing or technical capabilities. Any color there would be helpful. Joshua Ballard (Chief Executive Officer) Yeah, sure, you bet. I mean, I think when you look across the supply chain from mine deposit to processing to metal making, strip casting, all the way to magnets, what we're looking at is how we can fill in and strengthen any gaps we have and as we look forward, how we can make sure that we're covering our own scaling as we grow. So I really look at it in three pieces. One is, you know, first we need to build scale, right. And we need, second, we need that certainty of supply as we scale. And third is we want to control where we can the portions of supply chain just from a profitability perspective so we can avoid having profit on top of profit on top of profit. So what we'll be looking at is first is how and then potentially recycling that can come in on the back end to provide oxide outside of everything else. So what we'll be looking at first is how we strengthen that supply chain, which would add, could potentially add new capabilities and it could potentially add just surety on supply. This could be acquisitions, this could be joint ventures, this could be investments in our partners and other ways to ensure that we're locked and loaded for 26, 27 and onward. Because you know, generally this industry is pretty undercapitalized outside of China. So we know we're going to need to invest to make sure that the capital is there so that we can scale. That's the goal. Suji da Silva Makes sense. Last question and I'll pass it on. In terms of the end market applications, there's some pretty large volume technical applications emerging right now, obviously data center, but then beyond that, drones, humanoid robots. I'm just curious, as you know more generally, your ability to handle these customer requests, you know, for investigating customized magnets for them, you know how that scales. To be customer specific and tackle all these, do you have to kind of stagger these? You can meet the initial request. I'm curious whether some of these can be near term or are more longer term opportunities. Joshua Ballard (Chief Executive Officer) Yeah, so yeah, and you've cited a few that we've announced, right? Drones and other areas. And it's a wide range of sizes in particular. And we'll be investing in the equipment we need to support them. These customers tend to congregate into, you know, general sizes and general shapes that we can hone in on. So it's not like it's bespoke for every customer, but some of it will get phased in. So it's not all going to be ready when we what we're commissioning in the first quarter, going in second quarter, you know, as we start to commission and ship is not necessarily going to be all these capabilities. Some of those capabilities will be adding in mid year. I think I talked last quarter about the fact that we'll be starting out with about 600 tons capacity and then we'll be increasing that to 1200 tons throughout the year. So some of that will happen as we're increasing throughout the year and then some of that could follow on even from there. But we're certainly looking closely, you know, making sure at least from an ROI perspective that the equipment we're adding has the volume profitability we need to have a good ROI on what we're investing in. But our goal is to be a broad player to a lot of these customers who right now don't have a home. Suji da Silva Okay, very helpful. Thanks everybody. OPERATOR Good, thanks. And ladies and gentlemen, with that, we'll be concluding today's question and answer session as well as today's conference call. Disclaimer: This transcript is provided for informational purposes only. While we strive for accuracy, there may be errors or omissions in this automated transcription. For official company statements and financial information, please refer to the company's SEC filings and official press releases. Corporate participants' and analysts' statements reflect their views as of the date of this call and are subject to change without notice. Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga: USA RARE EARTH (USAR): Free Stock Analysis Report This article Transcript: USA Rare Earth Q1 2026 Earnings Conference Call originally appeared on Benzinga.com © 2026 Benzinga.com. 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