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USAR vs. TECK: Which Mining Stock Deserves a Spot in Your Portfolio?
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Key Takeaways
Teck Resources plans Anglo merger to boost copper output and generate $800M in synergies.
USA Rare Earth is advancing its Stillwater plant but remains pre-revenue with rising costs.
Teck faces higher zinc costs and lower QB output, while USAR posts continued losses.
USA Rare Earth, Inc. (USAR - Free Report) and Teck Resources Limited (TECK - Free Report) are both major players operating in the Zacks Mining - Miscellaneous industry. As peers, each company is engaged in the extraction and development of important minerals that support electrification, clean energy technologies and advanced manufacturing.
Both companies operate in capital-intensive mining industries that involve long development cycles, regulatory clearances and significant investments in infrastructure and advanced technologies. At the same time, rising demand for minerals and metals essential for electric vehicles and renewable energy is creating strong growth prospects for these companies, with the ongoing Iran-Israel conflict further tightening global markets by disrupting supply chains and reducing oil supply.
The Case for USAR
USA Rare Earth is advancing its Stillwater magnet manufacturing facility in Oklahoma closer to commercial production. The plant will produce Neodymium Iron Boron (NdFeB) magnets, which are essential for defense, aviation, automotive and other high-growth applications. The Stillwater facility is expected to become one of the first large-scale magnet plants in the United States, supporting the country’s efforts to build a domestic rare earth supply chain.
USA Rare Earth is installing key equipment, assembling Line 1a and completing final preparations at the Stillwater facility for commissioning in early 2026. It is worth noting that the company started hiring and training engineers and technicians to operate the facility.
USA Rare Earth also bolstered its balance sheet through PIPE financing and warrant exercises. It is worth noting that the company completed the $1.5 billion PIPE financing in January 2026. This funding is being used to make upgrades at the Stillwater plant, expand magnet finishing capabilities and complete Line 1b to increase total NdFeB magnet-producing capacity to roughly 1,200 metric tons.
USAR completed the acquisition of Less Common Metals in November 2025, which will supply critical metal and alloy feedstock for the Stillwater plant. In December 2025, LCM partnered with Solvay and Arnold Magnetic Technologies Corp. (Arnold) to provide a stable and premium-quality source of rare-earth materials.
Also, in January 2026, USA Rare Earth entered into a non-binding Letter of Intent (the LOI) with the U.S. Department of Commerce and announced collaboration with the U.S. Department of Energy (DOE). The Department of Commerce’s CHIPS Program has provided an LOI entailing $277 million in proposed federal funding and a $1.3 billion senior secured loan under the CHIPS Act, a total of $1.6 billion.
However, since its inception, USA Rare Earth has remained in the exploration and research stages, incurring losses while yet to generate any revenues. Amid its project development phase, the company has been grappling with rising operational expenses, adversely impacting its margins and profitability. In fourth-quarter 2025, USAR’s selling, general and administrative expenses increased to $18.5 million from $4.5 million in the year-ago quarter due to a rise in legal and consulting costs.
Research and development expenses rose to $15.9 million compared with $6.3 million reported in the year-ago quarter due to an increase in employee-related expenses. The lack of revenues and elevated expenses resulted in a loss of 19 cents per share in the fourth quarter.
The Case for TECK
Teck Resources is undergoing a significant strategic transformation to position itself for long-term growth, with an increased focus on copper and other critical minerals essential for the global energy transition. The company has entered into a merger agreement with Anglo American plc to create the Anglo Teck group, which will be one of the world’s leading copper producers with more than 70% of its portfolio in copper. The combined company will feature six top-tier copper assets, along with premium iron ore and zinc operations. Its annual copper production is projected at 1.2 million tons, expected to rise 10% to 1.35 million tons by 2027.
Anglo Teck is expected to rank among the world’s largest zinc producers, operating major assets like the Red Dog mine in Alaska and the Trail Operations in British Columbia. The merger is expected to generate approximately $800 million in annual pre-tax synergies within four years, with around 80% of that to be achieved within the first two years through operational efficiencies and economies of scale. The company’s Zafranal copper-gold project has an expected mine life of 19 years and will produce copper-gold concentrates through open-pit mining and conventional concentration process. The mine and concentrator are expected to produce an average of 126,000 tons of copper contained in the concentrate during their first five years of production.
The Highland Valley Mine Life Extension is likely to extend the mine’s life from 2028 to 2046. Expected average annual copper production will likely be 132,000 tons over the life of the mine. The San Nicolas project’s annual estimated production (on a 100% basis) is 63,000 tons of copper and 147,000 tons of zinc in the first five years. It is progressing through engineering, procurement and site mobilization, with early and permanent works including infrastructure setup, pipeline relocations, tree clearing and earthworks. The company expects to increase copper production to around 800,000 tons before the end of this decade.
However, at Quebrada Blanca (QB), total production in 2025 was down 8.6% year over year to 190 thousand tons, impacted by the ongoing TMF development at the mine. This has caused additional downtime of the concentrator.
Also, for 2026, the company expects total cash unit costs for the zinc segment to be $0.80-$0.90 per pound, higher than $0.60 per pound in 2025. The net cash unit cost for the segment is anticipated to be $0.65-$0.75 per pound compared with $0.33 in 2025.
How Does the Zacks Consensus Estimate Compare for USAR & TECK?
The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 24 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 66 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TECK’s 2026 bottom line is pegged at 2.19 per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at 2.31 cents per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & TECK
In the past six months, USAR’s shares have declined 22.7%, while TECK stock has gained 9.5%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 41.57X while Teck Resources’ forward earnings multiple sits at 21.82X.
Image Source: Zacks Investment Research
Final Take
While USA Rare Earth remains in the development stage, its Stillwater magnet facility positions it well to capitalize on the long-term demand for NdFeB magnets. Recent financing activities and the acquisition of Less Common Metals have strengthened its strategic positioning. However, the company has yet to generate revenues and continues to face rising operating expenses, resulting in sustained losses in 2025.
In contrast, Teck Resources’ strong performance in the coming quarters is supported by its scale of operation, asset diversity and strategic transformation. The planned merger with Anglo American will create a global copper and critical minerals leader, with more than 70% exposure to copper and strong zinc operations. Though near-term production at Quebrada Blanca has been impacted by operational issues, TECK’s long-life assets, growth projects and expected cost and operational synergies are expected to generate stronger cash flow and lower execution risk.
Teck Resources’ strong earnings outlook and diversified asset base make it a more attractive pick for investors compared with USA Rare Earth at present. Also, TECK stock outperformed USAR in the past six months, reflecting stronger investor confidence. Both Teck Resources and USA Rare Earth currently have a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
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USAR vs. TECK: Which Mining Stock Deserves a Spot in Your Portfolio?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) and Teck Resources Limited (TECK - Free Report) are both major players operating in the Zacks Mining - Miscellaneous industry. As peers, each company is engaged in the extraction and development of important minerals that support electrification, clean energy technologies and advanced manufacturing.
Both companies operate in capital-intensive mining industries that involve long development cycles, regulatory clearances and significant investments in infrastructure and advanced technologies. At the same time, rising demand for minerals and metals essential for electric vehicles and renewable energy is creating strong growth prospects for these companies, with the ongoing Iran-Israel conflict further tightening global markets by disrupting supply chains and reducing oil supply.
The Case for USAR
USA Rare Earth is advancing its Stillwater magnet manufacturing facility in Oklahoma closer to commercial production. The plant will produce Neodymium Iron Boron (NdFeB) magnets, which are essential for defense, aviation, automotive and other high-growth applications. The Stillwater facility is expected to become one of the first large-scale magnet plants in the United States, supporting the country’s efforts to build a domestic rare earth supply chain.
USA Rare Earth is installing key equipment, assembling Line 1a and completing final preparations at the Stillwater facility for commissioning in early 2026. It is worth noting that the company started hiring and training engineers and technicians to operate the facility.
USA Rare Earth also bolstered its balance sheet through PIPE financing and warrant exercises. It is worth noting that the company completed the $1.5 billion PIPE financing in January 2026. This funding is being used to make upgrades at the Stillwater plant, expand magnet finishing capabilities and complete Line 1b to increase total NdFeB magnet-producing capacity to roughly 1,200 metric tons.
USAR completed the acquisition of Less Common Metals in November 2025, which will supply critical metal and alloy feedstock for the Stillwater plant. In December 2025, LCM partnered with Solvay and Arnold Magnetic Technologies Corp. (Arnold) to provide a stable and premium-quality source of rare-earth materials.
Also, in January 2026, USA Rare Earth entered into a non-binding Letter of Intent (the LOI) with the U.S. Department of Commerce and announced collaboration with the U.S. Department of Energy (DOE). The Department of Commerce’s CHIPS Program has provided an LOI entailing $277 million in proposed federal funding and a $1.3 billion senior secured loan under the CHIPS Act, a total of $1.6 billion.
However, since its inception, USA Rare Earth has remained in the exploration and research stages, incurring losses while yet to generate any revenues. Amid its project development phase, the company has been grappling with rising operational expenses, adversely impacting its margins and profitability. In fourth-quarter 2025, USAR’s selling, general and administrative expenses increased to $18.5 million from $4.5 million in the year-ago quarter due to a rise in legal and consulting costs.
Research and development expenses rose to $15.9 million compared with $6.3 million reported in the year-ago quarter due to an increase in employee-related expenses. The lack of revenues and elevated expenses resulted in a loss of 19 cents per share in the fourth quarter.
The Case for TECK
Teck Resources is undergoing a significant strategic transformation to position itself for long-term growth, with an increased focus on copper and other critical minerals essential for the global energy transition. The company has entered into a merger agreement with Anglo American plc to create the Anglo Teck group, which will be one of the world’s leading copper producers with more than 70% of its portfolio in copper. The combined company will feature six top-tier copper assets, along with premium iron ore and zinc operations. Its annual copper production is projected at 1.2 million tons, expected to rise 10% to 1.35 million tons by 2027.
Anglo Teck is expected to rank among the world’s largest zinc producers, operating major assets like the Red Dog mine in Alaska and the Trail Operations in British Columbia. The merger is expected to generate approximately $800 million in annual pre-tax synergies within four years, with around 80% of that to be achieved within the first two years through operational efficiencies and economies of scale. The company’s Zafranal copper-gold project has an expected mine life of 19 years and will produce copper-gold concentrates through open-pit mining and conventional concentration process. The mine and concentrator are expected to produce an average of 126,000 tons of copper contained in the concentrate during their first five years of production.
The Highland Valley Mine Life Extension is likely to extend the mine’s life from 2028 to 2046. Expected average annual copper production will likely be 132,000 tons over the life of the mine. The San Nicolas project’s annual estimated production (on a 100% basis) is 63,000 tons of copper and 147,000 tons of zinc in the first five years. It is progressing through engineering, procurement and site mobilization, with early and permanent works including infrastructure setup, pipeline relocations, tree clearing and earthworks. The company expects to increase copper production to around 800,000 tons before the end of this decade.
However, at Quebrada Blanca (QB), total production in 2025 was down 8.6% year over year to 190 thousand tons, impacted by the ongoing TMF development at the mine. This has caused additional downtime of the concentrator.
Also, for 2026, the company expects total cash unit costs for the zinc segment to be $0.80-$0.90 per pound, higher than $0.60 per pound in 2025. The net cash unit cost for the segment is anticipated to be $0.65-$0.75 per pound compared with $0.33 in 2025.
How Does the Zacks Consensus Estimate Compare for USAR & TECK?
The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 24 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 66 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TECK’s 2026 bottom line is pegged at 2.19 per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at 2.31 cents per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & TECK
In the past six months, USAR’s shares have declined 22.7%, while TECK stock has gained 9.5%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 41.57X while Teck Resources’ forward earnings multiple sits at 21.82X.
Image Source: Zacks Investment Research
Final Take
While USA Rare Earth remains in the development stage, its Stillwater magnet facility positions it well to capitalize on the long-term demand for NdFeB magnets. Recent financing activities and the acquisition of Less Common Metals have strengthened its strategic positioning. However, the company has yet to generate revenues and continues to face rising operating expenses, resulting in sustained losses in 2025.
In contrast, Teck Resources’ strong performance in the coming quarters is supported by its scale of operation, asset diversity and strategic transformation. The planned merger with Anglo American will create a global copper and critical minerals leader, with more than 70% exposure to copper and strong zinc operations. Though near-term production at Quebrada Blanca has been impacted by operational issues, TECK’s long-life assets, growth projects and expected cost and operational synergies are expected to generate stronger cash flow and lower execution risk.
Teck Resources’ strong earnings outlook and diversified asset base make it a more attractive pick for investors compared with USA Rare Earth at present. Also, TECK stock outperformed USAR in the past six months, reflecting stronger investor confidence. Both Teck Resources and USA Rare Earth currently have a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.