USA Rare Earth (USAR) Investor update summary

Strategic collaboration and funding

• Announced a proposed collaboration with the U.S. government, including $1.6 billion in incentives and loans to support a domestic rare earth value chain, with $277 million in incentives and a $1.3 billion senior secured loan, disbursed based on milestones.

• Raised $1.5 billion in an oversubscribed PIPE transaction, bringing total accessible capital to $3.5 billion, with additional support from the French government and allied nation investments.

• Government receives 16.1 million shares and 17.6 million warrants, aligning incentives and enabling taxpayer participation in value creation.

• Funding structure aligns taxpayer returns with institutional investor objectives, without government price supports or offtake agreements.

• Collaboration aligns with national priorities, including the CHIPS Act, to strengthen supply chain capacity for advanced materials in key industries.

Operational progress and expansion

• Accelerated Round Top mine plan, targeting commercial production in late 2028, two years ahead of schedule, with flow sheet finalized and Accelerated Mining Plan completion in 2H 2026.

• Acquired Less Common Metals, expanding ex-China metal and alloy production, and announced a new plant in France with 3,750 metric tons annual capacity.

• Magnet-making facility in Stillwater, Oklahoma, on track for commissioning in Q1 2026, with plans to reach 10,000 metric tons annual capacity by June 2030.

• Metal-making capacity to reach 27,500 metric tons by December 2027, with 10,000 metric tons domestic.

• Partnerships with Solvay and Arnold Magnetic Technologies to supply advanced permanent magnets.

Financial outlook and milestones

• Targeting gross profit breakeven in 2027, EBITDA breakeven in 2028, and cash flow breakeven in 2029.

• Projecting 2030 revenue of $2.6 billion, $1.2 billion in EBITDA, and $900 million in free cash flow, assuming specified rare earth prices.

• 2025 guidance: operating expenses and loss of $56–62 million, capex of $37–43 million, and year-end cash over $350 million.

• Total project funding needs estimated at $4.1 billion, with current resources and government support covering most requirements.

• Funding and PIPE transaction closings are subject to customary conditions and are expected in Q1 2026.