Here's Why USA Rare Earth Rocketed Higher by 72% in April

USA Rare Earth (NASDAQ: USAR) stock soared by 71.6% in April, according to data from S&P Global Market Intelligence. The move comes as a series of developments have helped derisk the company's business model and encouraged investors to believe it can achieve its aims as laid out earlier this year. As a reminder, USA Rare Earth aims to become a vertically integrated mine-to-magnet rare-earth company. However, it's relatively unusual in that it relies on the downstream (magnets) part of the model to provide the earnings and cash flow needed to support commissioning the Round Top mine in 2028. The plan is to ultimately produce 8,000 tonnes per annum (tpa) of rare-earth elements, 27,500 tpa of metals and alloys (rare-earth elements account for only a portion of their total weight), and 10,000 tpa of magnets in 2030.Management believes this will result in revenue of $2.6 billion and earnings before interest, taxation, depreciation, and amortization (EBITDA) of $1.2 billion, and free cash flow of $900 million in 2030. Those figures, in themselves, make USA Rare Earth an extremely attractive stock given its current market cap of $5.74 billion. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool