SamsonCapital
Sep 25, 8:03 PM
$USAR BBG: The Trump's administration's
$1.6 billion investment in USA Rare Earth stinks to high heaven.
--- With regards to U.S. government money going out the door and questionable connections with the Lutnick/Commerce administration and Cantor Fitzgerald, we carefully looked at USAR.
They have a mine in Texas that we have people on the record who have looked at the deposit for years who said it is a mountain of dirt. We have people who have looked at the Serra Verde mine in Brazil, according to people familiar and have seen the mines and understand the mine, and the trouble USAR is having is processing of the rare earth that are being pulled out of the ground.
We have been told that USAR cannot separate the clay from the rock. These processing problems in Serra Verde are enough of a problem for outside investors to stay away from investing in it. Every major asset that USAR owns has major questions around them. USAR hasn't reached the original milestones set by the U.S. Commerce Department. ---
Samson Capital notes:
>We swung this stock twice with profits (
$16 to
$20 and from
$13 to
$18 recently)
>The company is still too premature for us to go long. At one point this year we thought we would go long. But after conducting our own independent research prior to the BBG report, we found the same company asset concerns with regards to seeing a clear path to profitability in the foreseeable future.
>We will revisit this stock once the dust settles and the global rate environment becomes friendlier.
cc:
$MP $INTC $REA
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