$USARB There are no rare earth metals in the basket
⠀
USA Rare Earth is building a chain from extraction to finished permanent magnets. For $USARB , this means that one raw material price does not describe the entire investment story.
⠀
Let’s imagine that rare earth metals become more expensive. For the whole investment thesis, that’s not enough. The company still needs to go through the remaining stages: develop the resource base, launch processing, bring the metals and alloys to the required quality, scale up magnet production, and find buyers.
⠀
At each transition there is a specific risk. The deposit still needs to be developed. Production capacity must be financed and started. The products must be brought to the customer’s specifications. Demand must turn into regular deliveries.
⠀
Therefore, $USARB provides exposure not just to the “metal price,” but to the company that must execute the entire mine-to-magnet plan.
⠀
Before buying, I would ask not only “where is the raw material going?”, but also “what is the next stage the company must realistically complete?”
⠀
@BinanceCIS #bStocksCIS
⠀
USA Rare Earth is building a chain from extraction to finished permanent magnets. For $USARB , this means that one raw material price does not describe the entire investment story.
⠀
Let’s imagine that rare earth metals become more expensive. For the whole investment thesis, that’s not enough. The company still needs to go through the remaining stages: develop the resource base, launch processing, bring the metals and alloys to the required quality, scale up magnet production, and find buyers.
⠀
At each transition there is a specific risk. The deposit still needs to be developed. Production capacity must be financed and started. The products must be brought to the customer’s specifications. Demand must turn into regular deliveries.
⠀
Therefore, $USARB provides exposure not just to the “metal price,” but to the company that must execute the entire mine-to-magnet plan.
⠀
Before buying, I would ask not only “where is the raw material going?”, but also “what is the next stage the company must realistically complete?”
⠀
@BinanceCIS #bStocksCIS
