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MP vs. IDR: Which Rare Earth Stock is the Smarter Buy Now?
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Key Takeaways
MP Materials' Q2 revenues jumped 84% to $57.4M, driven by higher NdPr and rare earth oxide production.
Idaho Strategic's Q2 revenues rose 55% to $9.5M, with record gold sales offset by rising exploration costs.
MP stock has soared 348% YTD, outpacing Idaho Strategic's 161% gain, though IDR trades at a lower valuation.
MP Materials (MP - Free Report) and Idaho Strategic Resources (IDR - Free Report) are two prominent players in the U.S. critical minerals sector.
Las Vegas, NV-based MP Materials is the largest producer of rare earth materials in the Western Hemisphere. It operates the Mountain Pass Rare Earth Mine and Processing Facility, the only rare earth mining and processing site of scale in North America. The company has a market capitalization of $12.4 billion.
Coeur d'Alene, ID-based Idaho Strategic is a gold producer that also owns the largest rare earth elements (REE) land package in the United States. It includes three of the top domestic rare earth elements projects, Mineral Hall, Lemhi Pass and Diamond Creek, which are currently in the exploration stage. The company has a market capitalization of around $385 million.
REEs are critical inputs across many existing and emerging clean-tech applications. With China dominating the global supply, the United States is increasingly prioritizing the development of domestic rare earth capabilities. Both companies are expected to play a key role in this drive. For investors seeking to capitalize on future growth, the question is which stock they should put their bets on. To make an informed decision, let us analyze their fundamentals, growth potential and key challenges.
The Case for MP Materials
MP Materials’ second-quarter 2025 revenues surged 84% year over year to $57.4 million. The company produced 597 metric tons of NdPr (neodymium and praseodymium), a 119% increase from the year-ago quarter. Rare earth oxides (REO) production increased 45% to 13,145 metric tons on higher recoveries from the continued implementation of Upstream 60K optimizations.
The Materials segment’s revenues increased 20% to $37.5 million on higher sales volumes and realized pricing. The Magnetics segment continues to ramp up commercial metal deliveries and generated revenues of $19.9 million in the quarter.
MP Materials reported a loss of 13 cents per share in the second quarter son higher production costs and selling, general and administrative expenses. The company reported a loss of 17 cents in the second quarter of 2024. Notably, its strategy of producing and selling more separated products at Mountain Pass and the ramp-up of output of magnetic precursor products are expected to lead to higher costs this year.
In July, MP Materials announced a landmark long-term agreement to supply Apple (AAPL) with rare earth magnets manufactured in the United States, entirely from recycled materials. Apple and MP Materials have collaborated over the past five years to develop advanced recycling technology that enables recycled rare earth magnets to be processed into material that meets Apple’s rigorous standards.
Also, in July, MP Materials entered into a public-private partnership with the United States Department of Defense (DoD) that will fast-track the development of a domestic rare earth magnet supply chain. Backed by DoD’s investments, MP will construct the second domestic magnet manufacturing facility (the 10X Facility), which will take total U.S. rare earth magnet manufacturing capacity to 10,000 metric tons and cater to both the defense and commercial sectors.
As of Dec. 31, 2024, MP Materials’ total proven and probable reserves were estimated at 2.04 million short tons of REO contained in 29.69 million short tons of ore at Mountain Pass, with an average ore grade of 5.97%. Based on this, combined with the production ramp-up of its midstream operations, the estimated mine life is 29 years. MP expects to extend this lifespan through further exploration and enhanced processing, which could lead to revisions in reserve estimates over time.
The Case for Idaho Strategic Resources
The company’s gold properties include the Golden Chest Mine (currently in production), the New Jersey Mill (majority ownership interest), the Eastern Star exploration property and other less advanced properties.
The Golden Chest Gold Mine lies within the Murray Gold Belt. Idaho Strategic has consolidated many historic gold mines and prospects within the belt to form an impressive land package consisting of 1,500 acres of patented mining claims and 5,800 acres of unpatented claims — the largest private land position in the area.
IDR has conducted numerous exploration programs on its REE properties, which include drilling, trenching, sampling and mapping certain areas within its 19,090-acre landholdings. The company plans for its busiest exploration season to date in 2025, targeting REE and thorium at its properties.
Idaho Strategic’s second-quarter 2025 revenues rose 54.7% year over year to $9.5 million, its highest quarterly revenues on record. Top-line growth was driven by a 57.7% increase in average realized gold prices and a 3.7% rise in gold production to 3,010 ounces for the quarter. Earnings improved 17.65% to 20 cents per share.
The earnings growth lagged the surge in revenues due to 262% higher exploration costs (related to exploration drilling at the Golden Chest mine). All-in-sustaining costs per ounce increased 42.8% to $1,980.41, driven by higher exploration costs.
Idaho Strategic expects exploration spending to remain elevated, or even increase, through the rest of 2025 as it continues to develop the Golden Chest mine and other properties.
The company recently signed a MoU with Clean Core Thorium Energy, Inc. (“CCTE”) to evaluate the feasibility of thorium mining, processing and advancing a “Made in America” supply chain for CCTE’s ANEEL fuel — an advanced nuclear fuel comprised of thorium and high assay low-enriched uranium for use in pressurized heavy water reactors.
IDR’s improved cash flow and low debt levels allow it to invest in existing mines while exploring and developing gold and REE prospects. This year, the company plans to execute its largest exploration program ever at the Golden Chest Mine. Regarding the REE projects, IDR plans to fly magnetics, radiometrics and lidar surveys at Mineral Hill in 2025. A large-scale radiometrics and soil sampling program is planned at Lemhi Pass project.
How do Estimates Compare for MP & IDR?
The Zacks Consensus Estimate for MP Materials’ fiscal 2025 earnings is pegged at a loss of 32 cents per share, wider than the loss of 44 cents reported in fiscal 2024. The estimate for fiscal 2026 earnings for MP Materials is pegged at 96 cents per share, suggesting a return to profitability. While the estimate for 2026 has moved south over the past 60 days, the same for 2026 has moved upward.
The Zacks Consensus Estimate for Idaho Strategic’s fiscal 2025 earnings is 76 cents per share, indicating a year-over-year increase of 13.4%. The 2026 estimate implies a dip of 1.32%. Both the estimates have moved up over the past 60 days.
Image Source: Zacks Investment Research
MP & IDR: Price Performance & Valuation
So far this year, MP Materials stock has gained 347.6% compared with Idaho Strategic’s 160.5% rise.
Image Source: Zacks Investment Research
MP Materials is currently trading at a forward 12-month price-to-sales ratio of 24.59X. Meanwhile, Idaho Strategic is trading lower at a forward 12-month price-to-sales ratio of 11.05X.
Image Source: Zacks Investment Research
MP Materials or Idaho Strategic: Which Stock is the Better Buy?
MP Materials continues to deliver strong production results while investing heavily to expand capacity. Although near-term earnings remain under pressure, the company stands out as the only fully integrated rare earth producer in the US, with operations spanning from mining to processing. Strategic partnerships with Apple and the DoD further reinforce its long-term growth potential.
Both stocks currently carry a Zacks Rank #2(Buy), which make choosing one difficult. MP trades at a premium valuation, but its leadership in the rare earths sector and solid earnings growth outlook for 2026 position it as an appealing play on the long-term fundamentals of rare earth products.
On the other hand, Idaho Strategic provides unique dual exposure to both gold production and rare earth exploration, making it the only publicly traded company with such a combination. While near-term earnings are weighed down by higher exploration costs tied to its Golden Chest mine and other projects, the stock offers long-term investors both diversification and upside potential in rare earths and gold.
Image: Bigstock
MP vs. IDR: Which Rare Earth Stock is the Smarter Buy Now?
Key Takeaways
MP Materials (MP - Free Report) and Idaho Strategic Resources (IDR - Free Report) are two prominent players in the U.S. critical minerals sector.
Las Vegas, NV-based MP Materials is the largest producer of rare earth materials in the Western Hemisphere. It operates the Mountain Pass Rare Earth Mine and Processing Facility, the only rare earth mining and processing site of scale in North America. The company has a market capitalization of $12.4 billion.
Coeur d'Alene, ID-based Idaho Strategic is a gold producer that also owns the largest rare earth elements (REE) land package in the United States. It includes three of the top domestic rare earth elements projects, Mineral Hall, Lemhi Pass and Diamond Creek, which are currently in the exploration stage. The company has a market capitalization of around $385 million.
REEs are critical inputs across many existing and emerging clean-tech applications. With China dominating the global supply, the United States is increasingly prioritizing the development of domestic rare earth capabilities. Both companies are expected to play a key role in this drive. For investors seeking to capitalize on future growth, the question is which stock they should put their bets on. To make an informed decision, let us analyze their fundamentals, growth potential and key challenges.
The Case for MP Materials
MP Materials’ second-quarter 2025 revenues surged 84% year over year to $57.4 million. The company produced 597 metric tons of NdPr (neodymium and praseodymium), a 119% increase from the year-ago quarter. Rare earth oxides (REO) production increased 45% to 13,145 metric tons on higher recoveries from the continued implementation of Upstream 60K optimizations.
The Materials segment’s revenues increased 20% to $37.5 million on higher sales volumes and realized pricing. The Magnetics segment continues to ramp up commercial metal deliveries and generated revenues of $19.9 million in the quarter.
MP Materials reported a loss of 13 cents per share in the second quarter son higher production costs and selling, general and administrative expenses. The company reported a loss of 17 cents in the second quarter of 2024. Notably, its strategy of producing and selling more separated products at Mountain Pass and the ramp-up of output of magnetic precursor products are expected to lead to higher costs this year.
In July, MP Materials announced a landmark long-term agreement to supply Apple (AAPL) with rare earth magnets manufactured in the United States, entirely from recycled materials. Apple and MP Materials have collaborated over the past five years to develop advanced recycling technology that enables recycled rare earth magnets to be processed into material that meets Apple’s rigorous standards.
Also, in July, MP Materials entered into a public-private partnership with the United States Department of Defense (DoD) that will fast-track the development of a domestic rare earth magnet supply chain. Backed by DoD’s investments, MP will construct the second domestic magnet manufacturing facility (the 10X Facility), which will take total U.S. rare earth magnet manufacturing capacity to 10,000 metric tons and cater to both the defense and commercial sectors.
As of Dec. 31, 2024, MP Materials’ total proven and probable reserves were estimated at 2.04 million short tons of REO contained in 29.69 million short tons of ore at Mountain Pass, with an average ore grade of 5.97%. Based on this, combined with the production ramp-up of its midstream operations, the estimated mine life is 29 years. MP expects to extend this lifespan through further exploration and enhanced processing, which could lead to revisions in reserve estimates over time.
The Case for Idaho Strategic Resources
The company’s gold properties include the Golden Chest Mine (currently in production), the New Jersey Mill (majority ownership interest), the Eastern Star exploration property and other less advanced properties.
The Golden Chest Gold Mine lies within the Murray Gold Belt. Idaho Strategic has consolidated many historic gold mines and prospects within the belt to form an impressive land package consisting of 1,500 acres of patented mining claims and 5,800 acres of unpatented claims — the largest private land position in the area.
IDR has conducted numerous exploration programs on its REE properties, which include drilling, trenching, sampling and mapping certain areas within its 19,090-acre landholdings. The company plans for its busiest exploration season to date in 2025, targeting REE and thorium at its properties.
Idaho Strategic’s second-quarter 2025 revenues rose 54.7% year over year to $9.5 million, its highest quarterly revenues on record. Top-line growth was driven by a 57.7% increase in average realized gold prices and a 3.7% rise in gold production to 3,010 ounces for the quarter. Earnings improved 17.65% to 20 cents per share.
The earnings growth lagged the surge in revenues due to 262% higher exploration costs (related to exploration drilling at the Golden Chest mine). All-in-sustaining costs per ounce increased 42.8% to $1,980.41, driven by higher exploration costs.
Idaho Strategic expects exploration spending to remain elevated, or even increase, through the rest of 2025 as it continues to develop the Golden Chest mine and other properties.
The company recently signed a MoU with Clean Core Thorium Energy, Inc. (“CCTE”) to evaluate the feasibility of thorium mining, processing and advancing a “Made in America” supply chain for CCTE’s ANEEL fuel — an advanced nuclear fuel comprised of thorium and high assay low-enriched uranium for use in pressurized heavy water reactors.
IDR’s improved cash flow and low debt levels allow it to invest in existing mines while exploring and developing gold and REE prospects. This year, the company plans to execute its largest exploration program ever at the Golden Chest Mine. Regarding the REE projects, IDR plans to fly magnetics, radiometrics and lidar surveys at Mineral Hill in 2025. A large-scale radiometrics and soil sampling program is planned at Lemhi Pass project.
How do Estimates Compare for MP & IDR?
The Zacks Consensus Estimate for MP Materials’ fiscal 2025 earnings is pegged at a loss of 32 cents per share, wider than the loss of 44 cents reported in fiscal 2024. The estimate for fiscal 2026 earnings for MP Materials is pegged at 96 cents per share, suggesting a return to profitability. While the estimate for 2026 has moved south over the past 60 days, the same for 2026 has moved upward.
The Zacks Consensus Estimate for Idaho Strategic’s fiscal 2025 earnings is 76 cents per share, indicating a year-over-year increase of 13.4%. The 2026 estimate implies a dip of 1.32%. Both the estimates have moved up over the past 60 days.
Image Source: Zacks Investment Research
MP & IDR: Price Performance & Valuation
So far this year, MP Materials stock has gained 347.6% compared with Idaho Strategic’s 160.5% rise.
Image Source: Zacks Investment Research
MP Materials is currently trading at a forward 12-month price-to-sales ratio of 24.59X. Meanwhile, Idaho Strategic is trading lower at a forward 12-month price-to-sales ratio of 11.05X.
Image Source: Zacks Investment Research
MP Materials or Idaho Strategic: Which Stock is the Better Buy?
MP Materials continues to deliver strong production results while investing heavily to expand capacity. Although near-term earnings remain under pressure, the company stands out as the only fully integrated rare earth producer in the US, with operations spanning from mining to processing. Strategic partnerships with Apple and the DoD further reinforce its long-term growth potential.
Both stocks currently carry a Zacks Rank #2(Buy), which make choosing one difficult. MP trades at a premium valuation, but its leadership in the rare earths sector and solid earnings growth outlook for 2026 position it as an appealing play on the long-term fundamentals of rare earth products.
On the other hand, Idaho Strategic provides unique dual exposure to both gold production and rare earth exploration, making it the only publicly traded company with such a combination. While near-term earnings are weighed down by higher exploration costs tied to its Golden Chest mine and other projects, the stock offers long-term investors both diversification and upside potential in rare earths and gold.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.