USA Rare Earth, Inc.

Rumour spreadin’ ‘round

Near that Texas mound

USA Rare Earth stock will change

And you know what I’m talkin’ about

Just let me know

We all wanna go

To that mountain on the range

Its got a lot of nice HREEs

Have mercy

A haw, haw, haw, haw, a haw

A haw, haw, haw

Well, I hear it’s fine

If you got the time

And the twenties to buy some shares

A hmm, hmm

Security is tight

Most every night

But now I might be mistaken

Hmm, hmm, hmm

Ah have mercy

The guitar solos in the ZZ Top classic La Grange were buzzing in my head while Gravy Train and I were hunting for investment ideas at the Consumer Electronics Show in January. We saw USA Rare Earth signage near the industrial automation section of the show floor. There were some very seasoned executives from larger corporations manning the booth. We asked a few basic questions and quickly learned that this firm is bringing a magnet supply chain back to the United States. The visit was timely because China had placed restrictions on rare earth and magnet shipments to the United States (especially defense related materials/products). We sent our notes to Frances “Tactical Frannie” MacAllister. She is the Senior Global Advisor at The Stock Pawnshop. Her contacts verified that “dare wuh be no magneh sheepmen too Meesta Tumps wah musheen”

Less than a month later, USAR announced a $1.6 billion deal with the federal government to expand mine-to-magnet operations. CEO Barbara Humpton did a great job on the conference call and the firm’s slides were fantastic. After Dr. Rhesus crunched the numbers, he came up with a $30 valuation by 2028 if management executes on its plan.

Notably, two days ago USA Rare Earth announced that it produced yttrium grade metal at a subsidiary. This material is used on turbine blades and aerospace components. It’s chemical stability and high-temperature performance are essential in lasers, superconductors, advanced ceramics, electronics, and energy systems. Yesterday, the company appointed Chaitan Kandal as Chief Commercial Officer. His resume is impressive and adds to an already impressive group of patriots.

This new Stock Pawnshop idea is dedicated to Sleepy Pete. He is currently on the injured reserve list and we wish him a speedy recovery.