Drew Nordquist's questions to USA Rare Earth Inc (USAR) leadership • Q2 2025
Question
Drew Nordquist of Cantor Fitzgerald inquired about the production timeline for the first magnet line, the status of the feasibility study for the Round Top mine, the potential benefits from the MP Materials DoD price support deal, and whether the current cash balance is sufficient to fund the full 4,800-ton production capacity.
Answer
CEO Joshua Ballard confirmed the timeline for the first production line and noted the company is targeting a pilot plant for the Round Top mine within a couple of years. He explained that while the MP Materials deal doesn't directly impact their heavy rare earth focus, it signals positive government support for the industry. CFO Rob Steele addressed the financials, stating that while the current cash of over $130 million covers the initial phase, more capital will be needed for the full $250 million expansion, which could be sourced from over $280 million in unexercised warrants.