USAR Stock Drops Overnight As Loss Widens, But Retail Turns ‘Bullish’ On Serra Verde Rare Earth Shipment Milestone

Higher expenses widened USA Rare Earth’s adjusted losses, even as commercial shipments from Brazil commenced.

• USA Rare Earth generated $3 million in Q3 revenue, but adjusted loss widened to $0.44 per share. 
• USA Rare Earth began commercial-scale rare earth shipments from its Brazil operation and received its first payments in November. 
• The shipments are covered by a 15-year U.S.-backed deal for all initial production. 

USA Rare Earth (USAR) stock fell overnight after reporting a wider adjusted third-quarter (Q3) loss, despite generating its first commercial revenue. The company also began rare earth shipments from Brazil’s Serra Verde operation under a 15-year U.S. government-backed deal. 

Retail sentiment turned ‘bullish’ as investors weighed production progress against ongoing losses and expansion plans. USA Rare Earth stock traded over 2% lower overnight Monday, after a 6% gain in regular session. 

USA Rare Earth’s Revenue Turns Positive, But Loss Widens 

For Q3, USA Rare Earth recorded $3 million in revenue, compared with no revenue last year. However, the company recorded $22.9 million in cost of revenue, resulting in a gross loss of $19.9 million. Operating expenses jumped over 600% to $121.6 million. 

Adjusted losses per diluted share increased to $0.44 from $0.25, missing the analysts’ consensus estimate of a $0.2 per share loss, as per Fiscal.ai. 

Financing activities generated $1.41 billion, supported primarily by $1.5 billion in proceeds from common stock issued through private investment in public equity (PIPE) financing. The company ended September with approximately $1.16 billion in cash, cash equivalents and restricted cash, compared with $257.6 million at the beginning of the year.

USA Rare Earth Begins Commercial Shipments From Brazil's Serra Verde Mine 

USA Rare Earth announced that it has started commercial-scale deliveries of rare earth materials from its Serra Verde operation in Brazil, a huge step toward having a supply chain for critical minerals outside China. The company began shipping mixed rare earth carbonate (MREC) in October and received its first payments in November under a long-term agreement backed by the U.S. government.

“USA Rare Earth is the only scaled producer outside Asia of the vital heavy rare earths used in advanced permanent NdFeB magnets, as well as other elements embedded in technologies such as renewable energy, mobility, robotics, drones, semiconductors, medical applications and defense,” said USAR CEO Thras Moraitis.

The shipments are covered by a 15-year, fully committed purchase agreement with U.S. SIIE LLC, a special-purpose entity funded by the U.S. government. The arrangement covers all output from Serra Verde's first production phase and uses pricing benchmarks outside China, with minimum prices guaranteed for four key materials used in advanced permanent magnets.

These minimum prices stand at $110 per kilogram for neodymium and praseodymium, $575 per kilogram for dysprosium and $2,050 per kilogram for terbium. Serra Verde is increasing output to an initial target of 4,000 metric tons of total rare earth oxides (TREO), expected in the second quarter of 2027.

What USAR Retail Traders Are Saying 

On Stocktwits, retail sentiment around the stock improved to ‘bullish’ from ‘neutral’. The stock recorded 1,122% surge in message volume over the past 24 hours. 

A user said, “I agree USAR could see new lows, but I wouldn’t completely bet against a company receiving government support. I could definitely see this stock reaching $20+ again eventually. Personally, I’d invest small, buy the dips, and take profits during rallies while building a bigger position for 2027.”

Another user said, “I couldn’t listen to the call, but they just bought their own mine, production will start ramping up and so will revs. This is another year long hold at least.”

A third user said, “Fully funded, tons of cash, us gvt backing and production has started. Extremely undervalued imo. Looking at 1 yr and 5 yr charts i see a quick jump soon to possible $10 - $12.”

USAR stock has declined 26% year-to-date. 

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