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USAR vs. NB: Which Mining Stock Offers a Better Value Right Now?
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Key Takeaways
USAR commissioned Phase 1a magnet line, targeting NdFeB output and 600 metric tons' capacity by 2026.
NioCorp is advancing the Elk Creek Project, investing $44.6M and securing funding to move toward production.
Both USAR and NB face rising costs, ongoing losses and dilution risks despite a strong demand outlook.
USA Rare Earth, Inc. (USAR - Free Report) and NioCorp Developments Ltd. (NB - Free Report) are U.S.-based companies that are engaged in the exploration and mining of minerals and metals, primarily in North America. Both companies operate in the ZacksMining - Miscellaneous industry.
Both companies operate in capital-intensive mining sectors with long development timelines, complex regulatory approvals and substantial investments in infrastructure and advanced technologies. However, rising demand for minerals critical to electric vehicles and renewable energy is strengthening their long-term growth outlook. Geopolitical tensions, including the Iran-Israel conflict, are further tightening global markets by disrupting supply chains and constraining oil availability.
The Case for USAR
USAR has reached a key milestone with the commissioning of Phase 1a of its commercial magnet production line at its Stillwater, OK, facility. Backed by this development, the company will be able to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets starting in the second quarter of 2026.
The commissioning confirms the facility’s ability to operate a complex, multi-step manufacturing process at a commercial scale. The production process involves the transformation of rare earth and metallic elements into ultra-fine powder, refining it through jet milling in a controlled environment and then shaping, coating and magnetizing the material into NdFeB magnets. These high-performance magnets are used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to ramp up to an annual run rate capacity of 600 metric tons by the end of 2026. In the quarters ahead, the addition of Phase 1b is expected to double the Stillwater facility’s total capacity to 1,200 metric tons per annum by the first quarter of 2027. Once fully operational, the Stillwater facility is expected to be one of the first large-scale NdFeB magnet plants in the United States, helping strengthen the country’s domestic rare earth supply chain.
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.
In April 2026, USAR inked a deal with InfraVia to acquire approximately a 12.5% stake in a France-based rare earth processing company, Carester SAS. Also, in the same month, the company entered into an agreement to acquire Serra Verde Group, which is the owner of Brazil-based Pela Ema rare earth mine and processing facility. The deal adds an operational rare earth mine with significant output of critical heavy rare earths like dysprosium and terbium. The transaction is anticipated to be completed in the third quarter of 2026, subject to customary closing conditions and regulatory approvals.
In March 2026, USA Rare Earth inked a deal to acquire Texas Mineral Resources Corp. in an all-stock deal worth about $73 million. This will give the company full ownership and operational control of the Round Top Project. USAR expects commercial production at Round Top to begin in 2028, with a target to process around 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. Also, USAR completed the acquisition of Less Common Metals in November 2025, which will supply critical metal and alloy feedstock for the Stillwater plant. It is worth noting that in April 2026, USA Rare Earth achieved its first commercial production of high-purity yttrium metal through Less Common Metals, marking a key step in building a rare earth supply outside China.
However, since its inception, the company has remained in the exploration and research stages, incurring losses. Amid its project development phase, USAR has been grappling with rising operational expenses, adversely impacting its margins and profitability. In fourth-quarter 2025, its 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 & consulting costs, higher headcount & recruiting fees and other costs.
Research and development expenses rose to $7.2 million compared with $1.4 million reported in the year-ago quarter due to an increase in employee-related expenses. Elevated expenses resulted in a loss of 19 cents per share in the fourth quarter.
The Case for NioCorp
NioCorp is advancing its Elk Creek Project in Nebraska toward production, targeting the extraction of niobium, scandium, titanium and rare earth elements. These critical minerals are vital for applications in electric vehicles, clean energy systems and defense technologies. In February 2026, NB started constructing the main underground portal for its Elk Creek Project, marking a shift from planning to pre-construction. The company is investing about $44.6 million in this phase and has already raised around $500 million to advance the project.
In January 2026, NioCorp signed a non-binding term sheet with Traxys to market and sell minerals from its Elk Creek Project. If finalized, Traxys would act as NB’s global marketing partner, covering nearly all planned production for the first 10 years.
In November 2025, NioCorp acquired additional land in Johnson County, NE, related to the Elk Creek Project. With the acquisition, NB currently owns a square mile of land at the site, which will be used to host both its surface processing facility and underground critical minerals mine.
Niocorp’s deal with the U.S. Department of Defense will also support its engineering and drilling activities at the site. These initiatives will facilitate NioCorp in launching the Elk Creek Project and take it to the commercial operation phase.
However, NB raised about $100 million through public offerings in February 2026 to fund its progress. Although its long-term growth initiatives hold positive, selling shares might cause its dilution, potentially having an adverse impact on earnings per share.
How Does the Zacks Consensus Estimate Compare for USAR & NB?
The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 71 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of $1.31 per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NB’s fiscal 2026 bottom line is pegged at a loss of 57 cents per share. Also, the company’s consensus estimate for fiscal 2027 bottom line is pegged at a loss of 45 cents per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & NB
In the past year, USAR’s shares have surged 110%, while NB stock has soared 137.5%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 23.31X, while NioCorp’s forward earnings multiple sits at negative 13.04X.
Image Source: Zacks Investment Research
Final Take
USAR recently commissioned Phase 1a of its commercial magnet production line at its Stillwater, OK, facility. The company has also strengthened its strategy through the acquisition of Less Common Metals and its planned purchase of Serra Verde Group and Texas Mineral Resources. However, despite these advances, USAR remains in an early commercial stage with rising operating and R&D expenses, which are expected to weigh on the near-term performance.
In contrast, NioCorp is advancing its Elk Creek Project with portal construction, land expansion and support from the government, moving closer to commercial production. The company has also signed a potential long-term marketing deal with Traxys North America LLC that could cover most of its output for the first 10 years.
Given these factors, NB seems a better pick for investors than USAR currently. While NioCorp sports a Zacks Rank #1 (Strong Buy) at present, USA Rare Earth has a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
USAR vs. NB: Which Mining Stock Offers a Better Value Right Now?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) and NioCorp Developments Ltd. (NB - Free Report) are U.S.-based companies that are engaged in the exploration and mining of minerals and metals, primarily in North America. Both companies operate in the Zacks Mining - Miscellaneous industry.
Both companies operate in capital-intensive mining sectors with long development timelines, complex regulatory approvals and substantial investments in infrastructure and advanced technologies. However, rising demand for minerals critical to electric vehicles and renewable energy is strengthening their long-term growth outlook. Geopolitical tensions, including the Iran-Israel conflict, are further tightening global markets by disrupting supply chains and constraining oil availability.
The Case for USAR
USAR has reached a key milestone with the commissioning of Phase 1a of its commercial magnet production line at its Stillwater, OK, facility. Backed by this development, the company will be able to begin fulfilling customer orders for sintered neodymium-iron-boron (NdFeB) permanent magnets starting in the second quarter of 2026.
The commissioning confirms the facility’s ability to operate a complex, multi-step manufacturing process at a commercial scale. The production process involves the transformation of rare earth and metallic elements into ultra-fine powder, refining it through jet milling in a controlled environment and then shaping, coating and magnetizing the material into NdFeB magnets. These high-performance magnets are used in defense, aerospace, automotive and other high-growth industries.
Phase 1a is expected to ramp up to an annual run rate capacity of 600 metric tons by the end of 2026. In the quarters ahead, the addition of Phase 1b is expected to double the Stillwater facility’s total capacity to 1,200 metric tons per annum by the first quarter of 2027. Once fully operational, the Stillwater facility is expected to be one of the first large-scale NdFeB magnet plants in the United States, helping strengthen the country’s domestic rare earth supply chain.
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.
In April 2026, USAR inked a deal with InfraVia to acquire approximately a 12.5% stake in a France-based rare earth processing company, Carester SAS. Also, in the same month, the company entered into an agreement to acquire Serra Verde Group, which is the owner of Brazil-based Pela Ema rare earth mine and processing facility. The deal adds an operational rare earth mine with significant output of critical heavy rare earths like dysprosium and terbium. The transaction is anticipated to be completed in the third quarter of 2026, subject to customary closing conditions and regulatory approvals.
In March 2026, USA Rare Earth inked a deal to acquire Texas Mineral Resources Corp. in an all-stock deal worth about $73 million. This will give the company full ownership and operational control of the Round Top Project. USAR expects commercial production at Round Top to begin in 2028, with a target to process around 40,000 metric tons of rare earth and critical mineral feedstock per day by 2030. Also, USAR completed the acquisition of Less Common Metals in November 2025, which will supply critical metal and alloy feedstock for the Stillwater plant. It is worth noting that in April 2026, USA Rare Earth achieved its first commercial production of high-purity yttrium metal through Less Common Metals, marking a key step in building a rare earth supply outside China.
However, since its inception, the company has remained in the exploration and research stages, incurring losses. Amid its project development phase, USAR has been grappling with rising operational expenses, adversely impacting its margins and profitability. In fourth-quarter 2025, its 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 & consulting costs, higher headcount & recruiting fees and other costs.
Research and development expenses rose to $7.2 million compared with $1.4 million reported in the year-ago quarter due to an increase in employee-related expenses. Elevated expenses resulted in a loss of 19 cents per share in the fourth quarter.
The Case for NioCorp
NioCorp is advancing its Elk Creek Project in Nebraska toward production, targeting the extraction of niobium, scandium, titanium and rare earth elements. These critical minerals are vital for applications in electric vehicles, clean energy systems and defense technologies. In February 2026, NB started constructing the main underground portal for its Elk Creek Project, marking a shift from planning to pre-construction. The company is investing about $44.6 million in this phase and has already raised around $500 million to advance the project.
In January 2026, NioCorp signed a non-binding term sheet with Traxys to market and sell minerals from its Elk Creek Project. If finalized, Traxys would act as NB’s global marketing partner, covering nearly all planned production for the first 10 years.
In November 2025, NioCorp acquired additional land in Johnson County, NE, related to the Elk Creek Project. With the acquisition, NB currently owns a square mile of land at the site, which will be used to host both its surface processing facility and underground critical minerals mine.
Niocorp’s deal with the U.S. Department of Defense will also support its engineering and drilling activities at the site. These initiatives will facilitate NioCorp in launching the Elk Creek Project and take it to the commercial operation phase.
However, NB raised about $100 million through public offerings in February 2026 to fund its progress. Although its long-term growth initiatives hold positive, selling shares might cause its dilution, potentially having an adverse impact on earnings per share.
How Does the Zacks Consensus Estimate Compare for USAR & NB?
The Zacks Consensus Estimate for USAR’s 2026 bottom line is pegged at a loss of 71 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of $1.31 per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NB’s fiscal 2026 bottom line is pegged at a loss of 57 cents per share. Also, the company’s consensus estimate for fiscal 2027 bottom line is pegged at a loss of 45 cents per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & NB
In the past year, USAR’s shares have surged 110%, while NB stock has soared 137.5%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-earnings ratio of negative 23.31X, while NioCorp’s forward earnings multiple sits at negative 13.04X.
Image Source: Zacks Investment Research
Final Take
USAR recently commissioned Phase 1a of its commercial magnet production line at its Stillwater, OK, facility. The company has also strengthened its strategy through the acquisition of Less Common Metals and its planned purchase of Serra Verde Group and Texas Mineral Resources. However, despite these advances, USAR remains in an early commercial stage with rising operating and R&D expenses, which are expected to weigh on the near-term performance.
In contrast, NioCorp is advancing its Elk Creek Project with portal construction, land expansion and support from the government, moving closer to commercial production. The company has also signed a potential long-term marketing deal with Traxys North America LLC that could cover most of its output for the first 10 years.
Given these factors, NB seems a better pick for investors than USAR currently. While NioCorp sports a Zacks Rank #1 (Strong Buy) at present, USA Rare Earth has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.