Latest news with #MPMaterials
The Market Online
4 hours ago
- Business
- The Market Online
Why Almonty Industries could be a better investment than MP Materials
Valuation gap with billion-dollar potential? Investors may be overlooking a sleeping giant. While MP Materials is riding high on media hype, an Apple partnership, and US government support, Almonty Industries (NASDAQ: ALM | TSX:AII) – a raw materials specialist focused on tungsten – continues to fly under the radar. However, a closer look reveals a striking valuation gap between the two companies, offering investors enormous upside potential. With a highly critical metal, strategically secured production, and extremely low valuation multiples, Almonty could prove to be one of the biggest success stories of the coming years. One analyst recently took a deeper dive into the numbers and fundamentals. Read the report to learn more. This article is disseminated in partnership with Apaton Finance GmbH. It is intended to inform investors and should not be taken as a recommendation or financial advice. Almonty vs. MP Materials – A comparison with explosive potential Two companies – one strategic goal: Both Almonty Industries (NASDAQ: ALM) (TSX:AII) and MP Materials supply essential raw materials for future technologies and defense. While MP Materials focuses on rare earths such as neodymium (for example, for electric motors and wind power), Almonty specializes in tungsten – a metal without which no aircraft can take off, no tank can brake, and no high-performance machine can run. Lewis Black, CEO of Almonty, recently said in an interview with host Lyndsay Malchuk Interview: '*I do not really want to talk about MP – they would probably not like that. But what I can say about Almonty is this: we process everything directly on site, operate in safe regions, and run multiple mine sites. Tungsten is extremely rare. The next major project outside of our company is located in the north of the Yukon, 200 km from the nearest road – and even according to their own statements, about ten years away from the construction phase. So in that sense, we have a pretty free playing field. Tungsten is extremely difficult to process. Anyone coming from the gold, silver, or tin sector will fail with tungsten because it is so brittle. We have been doing this for decades – we are considered the market leader. And the difference to rare earths? In many applications of rare earths, one does not even see the material – it is in magnets, guidance systems, and so on. But without tungsten, no airplane can take off: no engines, no brakes, no ammunition – even guidance systems contain tungsten. Even the displays in the cockpit would not exist without tungsten. However, until last year – when Biden imposed tariffs on this sector – no government had wanted to discuss it at all. Because if one publicly admits to not having enough tungsten, you are signaling to your opponents that you cannot manufacture ammunition. Incidentally, rare earths are not that rare – they are just difficult to process and have many toxic by-products. Tungsten, on the other hand, is both rare and difficult to mine. And that, I think, is * the fundamental difference between us and other producers of strategic metals .'** Two relevant companies in the GBC comparison GBC conclusion: Almonty is projected to achieve twice the EBITDA of MP Materials by 2028 – yet it currently trades at just one-seventeenth of MP's valuation multiple . Applying MP Materials' EBITDA multiples to Almonty's expected earnings would result in valuations of approximately CAD 8.27 billion for 2026, CAD 11.38 billion for 2027, and up to CAD 19.84 billion for 2028. This analysis suggests that Almonty's market capitalization could develop significantly above its current level if it were to receive a comparable valuation relative to MP Materials. – Source: Research Comment dated July 21, 2025. At the current share price of CAD 6.18, Almonty is valued at just CAD 1.33 billion. Rare growth momentum Almonty is set to commence operations at the Sangdong mine in South Korea, which will be one of the world's largest tungsten mines outside of China. Capacity is set to be massively expanded by 2027. In contrast, according to a GBC comparison, growth at MP Materials is stagnating from today's perspective, with EBITDA rising only moderately over the same period. Global tungsten dynamics: China cuts back – prices explode The global tungsten market is in a state of flux. China – with over 80% of the global market share and thus the leading supplier – has reduced its production quotas for 2025 by 4,000 tons from 62,000 tons in 2024 to 58,000 tons, a decrease of 6.8%. At the same time, demand from sectors such as semiconductors, aerospace, and defense is rising significantly. The result: APT prices rise to USD 440/mtu (+USD 20 compared to the previous week) Ferro-tungsten reaches USD 57/kg – and the trend is rising Supply bottlenecks are forcing many traders to only serve domestic markets (source: Fastmarkets Global Ltd.) Where to get it? According to Techcet, global demand for tungsten is expected to grow by 3–5% annually from 2025 to 2030, with an increase of 8% annually in the semiconductor sector, and a 4–6% increase in the defense sector. High tech vs. defense: It will therefore be exciting to see who will ultimately get their hands on the hardest metal on earth. It is precisely this situation that makes Almonty Industries a classic takeover candidate. Conclusion: Get in now before the market realizes the difference The combination of geopolitical tailwinds, growing demand, supply bottlenecks, and a currently absurdly low valuation of CAD 1.33 billion makes Almonty Industries (NASDAQ: ALM| TSX: AII) one of the most intriguing commodity bets of the coming years. While MP Materials, with a market capitalization of USD 9.34 billion, is already receiving a valuation bonus for its strategic role, Almonty is in no way inferior – only the stock market has not yet recognized this. Price setbacks have historically been excellent entry opportunities in the past. Almonty Industries Inc., 12-month chart in CAD, as of July 22, 2025, source: LSEG Conflict of interest Pursuant to §85 of the German Securities Trading Act (WpHG), we point out that Apaton Finance GmbH as well as partners, authors or employees of Apaton Finance GmbH (hereinafter referred to as 'Relevant Persons') currently hold or hold shares or other financial instruments of the aforementioned companies and speculate on their price developments. In this respect, they intend to sell or acquire shares or other financial instruments of the companies (hereinafter each referred to as a 'Transaction'). Transactions may thereby influence the respective price of the shares or other financial instruments of the Company. In this respect, there is a concrete conflict of interest in the reporting on the companies. In addition, Apaton Finance GmbH is active in the context of the preparation and publication of the reporting in paid contractual relationships. For this reason, there is also a concrete conflict of interest. The above information on existing conflicts of interest applies to all types and forms of publication used by Apaton Finance GmbH for publications on companies. Risk notice Apaton Finance GmbH offers editors, agencies and companies the opportunity to publish commentaries, interviews, summaries, news and the like on These contents are exclusively for the information of the readers and do not represent any call to action or recommendations, neither explicitly nor implicitly they are to be understood as an assurance of possible price developments. The contents do not replace individual expert investment advice and do not constitute an offer to sell the discussed share(s) or other financial instruments, nor an invitation to buy or sell such. The content is expressly not a financial analysis, but a journalistic or advertising text. 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Wall Street Journal
9 hours ago
- Business
- Wall Street Journal
Podcast: The American Company Taking on China's Rare-Earth Dominance
Tiny rare-earth magnets are used for building phones, electric cars, and submarines. Nearly all of them are mined in China, but one U.S. company is trying to change that. WSJ's Jon Emont spoke with MP Materials' chief executive about his goals for America's largest rare-earths miner, which has struck deals with the Pentagon, General Motors, and Apple. 🎧 Listen to The Journal podcast.
Yahoo
10 hours ago
- Business
- Yahoo
MP Materials Forges $500M Partnership with Apple for US-Made, Recycled Rare Earth Magnets
MP Materials Corp. (NYSE:MP) is one of the best performing mid cap stocks so far in 2025. On July 16, MP Materials announced a definitive and long-term agreement with Apple Inc. (NASDAQ:AAPL) to supply US-manufactured, sustainable rare earth magnets. The partnership establishes sustainable and domestic supply chains for both companies. The magnets will be produced entirely from 100% recycled materials. Under the terms of this $500 million partnership, MP Materials will manufacture the magnets at its Fort Worth, Texas, facility, known as Independence. The recycled rare earth feedstock for these magnets will be processed at MP Materials' Mountain Pass site in California, which is the only active rare earth mining and processing facility in the United States. This feedstock will be sourced from post-industrial waste and end-of-life products, including magnet scrap and components. A close-up of a large, metallic machine processing ore and minerals in a mine. The collaboration is the culmination of nearly 5 years of joint development between Apple and MP Materials, during which they have piloted advanced recycling technology to ensure that recycled rare earth magnets meet Apple's stringent performance and design criteria. To fulfill the agreement with Apple and in line with a recent public-private partnership with the US Department of Defense/DoD, MP Materials will expand the capacity of its Fort Worth magnetics facility to include neodymium magnet production lines specifically tailored for Apple products. MP Materials Corp. (NYSE:MP) produces rare earth materials in the Western Hemisphere and operates in 2 segments: Materials and Magnetics. While we acknowledge the potential of MP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the . READ NEXT: and . Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
17 hours ago
- Business
- Yahoo
As Trump Bets Big on Rare Earth Magnets, This Hidden-Gem Stock Could Soar
Rare-earth magnets are essential components in electric vehicles (EVs), drones, missiles, and other high-tech and defense systems. For decades, China has held a dominant grip over their production, prompting growing concerns in Washington about supply chain vulnerabilities. In April 2025, those concerns escalated to the highest level. Recently, President Trump signed an executive order triggering a Section 232 investigation into U.S. dependence on imported processed critical minerals. The order followed China's suspension of exports of key heavy rare earths and magnets, a move widely viewed as an attempt to weaponize trade and disrupt U.S. industry. More News from Barchart It's Never 'Happened in the History of Tech to Any Company Before': OpenAI's Sam Altman Says ChatGPT is Growing at an Unprecedented Rate This Penny Stock Wants to Become the MicroStrategy of Dogecoin Robinhood Stock Stumbles as S&P 500 Inclusion Is Once Again Off the Table for HOOD Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Against this backdrop, the U.S. government is doubling down on efforts to secure a domestic magnet supply chain. MP Materials (MP) recently struck a high-profile deal to supply rare-earth magnets to Apple (AAPL) from its Texas plant, signaling strong commercial demand for local production. USA Rare Earth (USAR), meanwhile, is racing to establish itself as a homegrown leader, building out its Oklahoma facility and securing upstream resources to support America's strategic independence. With breakthroughs in domestic processing and bold expansion plans, USAR is emerging as a key player in the domestic rare-earth resurgence. About USAR Stock Founded in 2019, USA Rare Earth (USAR) is a micro-cap company working to build a fully integrated U.S. supply chain for neodymium-iron-boron (NdFeB) magnets. Its mission is to bolster domestic production, from mining rare-earth elements to manufacturing finished magnets, and reduce America's dependence on foreign suppliers. Over the last 52 weeks, USAR stock has surged nearly 29%, climbing from the low single digits to a market capitalization of approximately $1.32 billion. Much of the rally stemmed from investor enthusiasm following MP Materials' high-profile Apple deal, which sparked speculation that USAR could land similar partnerships, despite no official announcements. However, the stock's soaring valuation has drawn attention. With a forward price-to-earnings ratio of 73, far above the sector median of 17, USAR now trades at a significant premium, having spiked 146% from its March year-to-date lows. USAR Ambitious Projects USA Rare Earth, which went public via a SPAC merger, is rapidly building a fully integrated U.S. supply chain for NdFeB magnets, crucial for defense and clean energy technologies. The company is constructing a 310,000 sq. ft. magnet plant in Stillwater, Oklahoma, aiming to produce 5,000 metric tons annually and generate up to $800 million in revenue. The facility will utilize equipment from a decommissioned Hitachi magnet line. USAR also controls the Round Top deposit in Texas, which is rich in heavy rare earths like dysprosium and terbium. In early 2025, it produced high-purity dysprosium oxide from Round Top ore, marking a key milestone in in-house processing. Among its key milestones set recently, the company has launched an Innovations Lab; signed its first customer memorandum of understanding (MOU); and raised over $100 million this year - including a $75 million PIPE deal - to fund its expansion. CEO Joshua Ballard calls the effort a 'Manhattan Project' to reestablish U.S. dominance in rare-earth manufacturing. Financial Overview Despite USAR's lofty valuation, the company remains pre-revenue, with no sales reported to date as it continues to build out its magnet production facilities. In Q1 2025, USAR posted net income of $52,000, largely driven by one-time accounting items. On an adjusted basis, the company recorded a $12 million loss, or $0.19 per share, due to rising R&D and project expenses. USAR has raised over $100 million in 2025, including $75 million through a PIPE deal, providing capital to advance its Stillwater magnet plant. On the balance sheet, the company held $23.4 million in cash and cash equivalents, up from $16.8 million at year‑end 2024. It used $10.3 million in operating cash and $3.1 million on investing activities in the quarter, while financing activities provided $20.0 million, resulting in a net cash increase of $6.6 million for the period. Is USAR Stock a Good Buy? Wall Street analysts are bullish on USAR's growth potential, with all three in coverage giving the stock a unanimous 'Strong Buy' rating. They have set an average price target of $17.33, implying a potential upside of about 26.7% from current levels. As the U.S. ramps up efforts to break China's rare-earth dominance, USA Rare Earth is building critical infrastructure at a pivotal moment. Backed by federal momentum and investor capital, USAR is aggressively expanding its footprint. If it secures commercial deals, this under-the-radar stock could deliver explosive upside for early backers - though given its pre-revenue status, USAR is best reserved for investors with a long time horizon, and a healthier-than-usual appetite for risk. On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. 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Yahoo
21 hours ago
- Business
- Yahoo
MP Materials Announces Date for Second Quarter 2025 Financial Results and Webcast
LAS VEGAS, July 21, 2025--(BUSINESS WIRE)--MP Materials Corp. (NYSE: MP) will release its financial results for the first quarter ended June 30, 2025, after the U.S. markets close on Thursday, August 7, 2025. MP Materials' management will host a conference call and webcast that afternoon at 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time). Prior to the conference call and webcast, MP Materials will issue a press release and post a slide presentation at Conference Call Details Event: MP Materials Q2 2025 Financial Results Conference Call and WebcastDate: Thursday, August 7, 2025Time: 2:00 p.m. Pacific Time (5:00 p.m. Eastern Time)Webcast: Replay: A webcast replay will be available approximately one hour after the call has concluded. About MP Materials MP Materials (NYSE: MP) is America's only fully integrated rare earth producer with capabilities spanning the entire supply chain—from mining and processing to advanced metallization and magnet manufacturing. We extract and refine materials from one of the world's richest rare earth deposits in California and manufacture the world's strongest and most efficient permanent magnets. Our products enable innovation across critical sectors of the modern economy, including transportation, energy, robotics, defense, and aerospace. More information is available at Join the MP Materials community on X, YouTube and LinkedIn. View source version on Contacts Investors: ir@ Media: Matt Sloustchermedia@ Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
