Drew Nordquist's questions to USA Rare Earth (USAR) leadership • Q2 2025
Question
Drew Nordquist of Cantor Fitzgerald inquired about the production capacity of the first magnet line, the timeline for the Round Top mine's feasibility study, the potential benefits from the MP Materials DoD price support deal, and whether the current cash position is sufficient to fund the full 4,800-ton production expansion.
Answer
CEO Joshua Ballard confirmed the first production line's capacity is 1,200 tons and stated there is no updated timeline for the Round Top feasibility study, though a pilot plant is targeted within two years. He noted that while the MP Materials deal doesn't directly benefit USA Rare Earth's heavy rare earth focus, it signals positive government willingness for price support. CFO Rob Steele clarified that while the current cash balance of over $130 million is insufficient for the full four-line expansion, the company has over $280 million in unexercised warrants, placing it in a strong funding position.