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USA Rare Earth vs. Teck Resources: Which Mining Stock Has Better Potential?
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Key Takeaways
USA Rare Earth is ramping magnet production and building a $1.2B Blacksburg facility.
Teck Resources lifted copper production 25% as LME copper prices rose 40% year over year.
Teck Resources advances its Anglo American merger and projects to expand its copper pipeline.
USA Rare Earth, Inc. (USAR - Free Report) and Teck Resources Limited (TECK - Free Report) are leading players in the Zacks Mining - Miscellaneous industry. Both companies are engaged in the extraction, processing and development of minerals that are essential to modern technologies and industrial applications. USAR and TECK are poised to benefit from the increasing demand for critical materials used in electrification, clean energy technologies and advanced manufacturing.
Both companies operate in capital-intensive mining industries that require significant investments in infrastructure, advanced technologies and project development, while navigating complex regulatory approvals and permitting processes. Rising demand for minerals and metals essential for electric vehicles, renewable energy and other clean-energy technologies is creating favorable long-term growth opportunities for both companies.
The Case for USAR
In September 2026, USAR broke ground on a new rare earth metal and magnet manufacturing facility in Blacksburg, SC. The company is investing almost $1.2 billion to build the approximately 800,000-square-foot facility on a 124-acre site in Cherokee County. The project is expected to create around 490 high-skill manufacturing jobs, with commissioning targeted to begin in 2028. Once operational, the plant is expected to produce 6,400 metric tons per year (tpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 tpa of strip-cast rare earth metal and alloy.
In June 2026, USA Rare Earth commissioned its hydrometallurgical demonstration facility in Wheat Ridge, CO, marking a key step in building an integrated rare earth supply chain outside China. The facility will process material from multiple sources, including the Round Top facility, third-party feedstocks and recycled magnet swarf, while supporting feasibility studies and future commercial-scale operations.
Also, USAR continues to make steady progress at the Stillwater magnet manufacturing facility in Oklahoma as it ramps up commercial production. The facility is designed to manufacture NdFeB magnets, which are critical components for defense, aerospace, automotive, industrial and other high-growth end markets. During the second quarter of 2026, the Stillwater facility began commercial production of NdFeB magnets, although the company has not yet started generating revenues from magnet sales as production continues to ramp up.
Throughout the second quarter of 2026, USAR continued to expand the Stillwater facility by advancing building improvements, installing additional manufacturing equipment and increasing inventories to support production ramp-up. The company also continued investing in construction-in-progress assets and equipment deposits as it prepares the facility for higher production volumes.
However, USAR continues to face profitability pressure as it remains in the investment and commercialization phase. In the first six months of 2026, it reported a net loss attributable to USA Rare Earth of $77.3 million, while its loss from operations widened to $83 million from $17.5 million in the year-ago period. Its operating expenses jumped to $81.5 million from $17.5 million in the same period, due to higher selling, general and administrative expenses, research and development costs, and amortization. Despite generating $11.5 million in revenues during the period, the company reported a negative gross margin of 12.8%.
The weak profitability is accompanied by substantial cash requirements. In the first six months of 2026, USAR used $75.3 million in cash for operating activities, up from $18.2 million reported in 2025. In the same period, investing activities consumed another $108.4 million due to an increase in capital expenditures related to the Stillwater Facility. The company will require further spending on Round Top, Stillwater, Blacksburg and the Less Common Metals-Europe facility, placing additional pressure on its cash resources.
The Case for TECK
As part of its long-term growth strategy, Teck Resources is increasing its focus on copper and other critical minerals that are essential for electrification and clean-energy technologies. The company is benefiting from a favorable copper market, with LME copper prices averaging $6.05 per pound in the second quarter of 2026, up 40% year over year. In the quarter, TECK’s copper production increased 25% year over year to 135,900 tons, while copper sales rose to 135,700 tons from 101,500 tons.
The company maintained its 2026 copper production guidance of 455,000-530,000 tons, supported by higher expected output from Quebrada Blanca, Highland Valley Copper and Antamina. The long-term outlook for copper remains favorable, driven by growing demand from electric vehicles, renewable energy and infrastructure investments, while supply remains constrained by declining ore grades, water constraints, rising input costs and limited new high-quality projects.
Teck Resources is also advancing its merger with Anglo American plc to form the Anglo Teck group, creating one of the world's largest copper-focused mining companies. It will have more than 70% exposure to copper and is set to be among the top five global copper producers. The combined company will consist of six world-class copper assets and premium iron ore and zinc operations with annual copper production of 1.2 million tons, projected to grow to 1.35 million tons by 2027. The deal is also expected to generate about $800 million in annual pre-tax synergies within four years of completion.
Teck Resources is further strengthening its copper growth pipeline by advancing several development projects toward sanction readiness. The company continues permitting activities, securing land access and refining business cases for its Zafranal and San Nicolás projects. Highland Valley Copper Mine Life Extension construction also progressed in the second quarter, with detailed engineering about 95% complete and procurement nearly complete. The project is expected to extend the mine's life from 2028 to 2046 and support average annual copper production of about 132,000 tons.
However, the company's zinc in concentrate production declined to 112 thousand tons in the second quarter of 2026 from 136.6 thousand tons a year earlier, reflecting lower grades at Red Dog in line with the mine plan. TECK maintained its 2026 zinc production guidance of 410-460 thousand tons, below 565 thousand tons produced in 2025, and expects lower grades through 2028 as the mine matures.
Operating costs at several assets increased year over year due to higher diesel, energy, maintenance and contractor expenses. While higher copper production and by-product credits helped lower copper net cash unit costs, continued inflation in fuel, freight and maintenance costs could pressure margins going forward.
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 62 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 78 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TECK’s 2026 bottom line is pegged at $4.13 per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at $3.30 per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & TECK
In the past year, USAR’s shares have declined 11.2%, while TECK stock has surged 60.5%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-sales ratio of 7.81X while Teck Resources’ forward earnings multiple sits at 3.08X.
Image Source: Zacks Investment Research
Final Take
USAR is benefiting from the ramp-up of its commercial magnet production, along with investments and strategic initiatives aimed at building an integrated rare earth supply chain. The company is advancing its Blacksburg facility, Stillwater magnet operations and Wheat Ridge hydrometallurgical demonstration facility to expand its production capabilities. However, USAR remains in the early stages of commercialization and continues to incur losses and significant cash requirements as it invests in capacity expansion and other growth initiatives.
In contrast, Teck Resources is benefiting from strong copper production growth, higher copper prices and a growing portfolio of copper-focused assets. The planned merger with Anglo American will further increase its exposure to copper, while projects such as Highland Valley, Zafranal and San Nicolás provide additional growth opportunities. However, declining zinc production at Red Dog and higher operating costs remain key challenges.
Given these factors, TECK appears better positioned than USAR based on its stronger earnings profile, copper exposure and established operating base. While TECK carries a Zacks Rank #3 (Hold), USA Rare Earth carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
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USA Rare Earth vs. Teck Resources: Which Mining Stock Has Better Potential?
Key Takeaways
USA Rare Earth, Inc. (USAR - Free Report) and Teck Resources Limited (TECK - Free Report) are leading players in the Zacks Mining - Miscellaneous industry. Both companies are engaged in the extraction, processing and development of minerals that are essential to modern technologies and industrial applications. USAR and TECK are poised to benefit from the increasing demand for critical materials used in electrification, clean energy technologies and advanced manufacturing.
Both companies operate in capital-intensive mining industries that require significant investments in infrastructure, advanced technologies and project development, while navigating complex regulatory approvals and permitting processes. Rising demand for minerals and metals essential for electric vehicles, renewable energy and other clean-energy technologies is creating favorable long-term growth opportunities for both companies.
The Case for USAR
In September 2026, USAR broke ground on a new rare earth metal and magnet manufacturing facility in Blacksburg, SC. The company is investing almost $1.2 billion to build the approximately 800,000-square-foot facility on a 124-acre site in Cherokee County. The project is expected to create around 490 high-skill manufacturing jobs, with commissioning targeted to begin in 2028. Once operational, the plant is expected to produce 6,400 metric tons per year (tpa) of sintered neodymium-iron-boron (NdFeB) permanent magnets and 5,000 tpa of strip-cast rare earth metal and alloy.
In June 2026, USA Rare Earth commissioned its hydrometallurgical demonstration facility in Wheat Ridge, CO, marking a key step in building an integrated rare earth supply chain outside China. The facility will process material from multiple sources, including the Round Top facility, third-party feedstocks and recycled magnet swarf, while supporting feasibility studies and future commercial-scale operations.
Also, USAR continues to make steady progress at the Stillwater magnet manufacturing facility in Oklahoma as it ramps up commercial production. The facility is designed to manufacture NdFeB magnets, which are critical components for defense, aerospace, automotive, industrial and other high-growth end markets. During the second quarter of 2026, the Stillwater facility began commercial production of NdFeB magnets, although the company has not yet started generating revenues from magnet sales as production continues to ramp up.
Throughout the second quarter of 2026, USAR continued to expand the Stillwater facility by advancing building improvements, installing additional manufacturing equipment and increasing inventories to support production ramp-up. The company also continued investing in construction-in-progress assets and equipment deposits as it prepares the facility for higher production volumes.
However, USAR continues to face profitability pressure as it remains in the investment and commercialization phase. In the first six months of 2026, it reported a net loss attributable to USA Rare Earth of $77.3 million, while its loss from operations widened to $83 million from $17.5 million in the year-ago period. Its operating expenses jumped to $81.5 million from $17.5 million in the same period, due to higher selling, general and administrative expenses, research and development costs, and amortization. Despite generating $11.5 million in revenues during the period, the company reported a negative gross margin of 12.8%.
The weak profitability is accompanied by substantial cash requirements. In the first six months of 2026, USAR used $75.3 million in cash for operating activities, up from $18.2 million reported in 2025. In the same period, investing activities consumed another $108.4 million due to an increase in capital expenditures related to the Stillwater Facility. The company will require further spending on Round Top, Stillwater, Blacksburg and the Less Common Metals-Europe facility, placing additional pressure on its cash resources.
The Case for TECK
As part of its long-term growth strategy, Teck Resources is increasing its focus on copper and other critical minerals that are essential for electrification and clean-energy technologies. The company is benefiting from a favorable copper market, with LME copper prices averaging $6.05 per pound in the second quarter of 2026, up 40% year over year. In the quarter, TECK’s copper production increased 25% year over year to 135,900 tons, while copper sales rose to 135,700 tons from 101,500 tons.
The company maintained its 2026 copper production guidance of 455,000-530,000 tons, supported by higher expected output from Quebrada Blanca, Highland Valley Copper and Antamina. The long-term outlook for copper remains favorable, driven by growing demand from electric vehicles, renewable energy and infrastructure investments, while supply remains constrained by declining ore grades, water constraints, rising input costs and limited new high-quality projects.
Teck Resources is also advancing its merger with Anglo American plc to form the Anglo Teck group, creating one of the world's largest copper-focused mining companies. It will have more than 70% exposure to copper and is set to be among the top five global copper producers. The combined company will consist of six world-class copper assets and premium iron ore and zinc operations with annual copper production of 1.2 million tons, projected to grow to 1.35 million tons by 2027. The deal is also expected to generate about $800 million in annual pre-tax synergies within four years of completion.
Teck Resources is further strengthening its copper growth pipeline by advancing several development projects toward sanction readiness. The company continues permitting activities, securing land access and refining business cases for its Zafranal and San Nicolás projects. Highland Valley Copper Mine Life Extension construction also progressed in the second quarter, with detailed engineering about 95% complete and procurement nearly complete. The project is expected to extend the mine's life from 2028 to 2046 and support average annual copper production of about 132,000 tons.
However, the company's zinc in concentrate production declined to 112 thousand tons in the second quarter of 2026 from 136.6 thousand tons a year earlier, reflecting lower grades at Red Dog in line with the mine plan. TECK maintained its 2026 zinc production guidance of 410-460 thousand tons, below 565 thousand tons produced in 2025, and expects lower grades through 2028 as the mine matures.
Operating costs at several assets increased year over year due to higher diesel, energy, maintenance and contractor expenses. While higher copper production and by-product credits helped lower copper net cash unit costs, continued inflation in fuel, freight and maintenance costs could pressure margins going forward.
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 62 cents per share. Also, the company’s consensus estimate for the 2027 bottom line is pegged at a loss of 78 cents per share.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for TECK’s 2026 bottom line is pegged at $4.13 per share. Also, the company’s consensus estimate for 2027 bottom line is pegged at $3.30 per share.
Image Source: Zacks Investment Research
Price Performance and Valuation of USAR & TECK
In the past year, USAR’s shares have declined 11.2%, while TECK stock has surged 60.5%.
Image Source: Zacks Investment Research
USA Rare Earth is trading at a forward 12-month price-to-sales ratio of 7.81X while Teck Resources’ forward earnings multiple sits at 3.08X.
Image Source: Zacks Investment Research
Final Take
USAR is benefiting from the ramp-up of its commercial magnet production, along with investments and strategic initiatives aimed at building an integrated rare earth supply chain. The company is advancing its Blacksburg facility, Stillwater magnet operations and Wheat Ridge hydrometallurgical demonstration facility to expand its production capabilities. However, USAR remains in the early stages of commercialization and continues to incur losses and significant cash requirements as it invests in capacity expansion and other growth initiatives.
In contrast, Teck Resources is benefiting from strong copper production growth, higher copper prices and a growing portfolio of copper-focused assets. The planned merger with Anglo American will further increase its exposure to copper, while projects such as Highland Valley, Zafranal and San Nicolás provide additional growth opportunities. However, declining zinc production at Red Dog and higher operating costs remain key challenges.
Given these factors, TECK appears better positioned than USAR based on its stronger earnings profile, copper exposure and established operating base. While TECK carries a Zacks Rank #3 (Hold), USA Rare Earth carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.