U.S. Rare Earth Miners' Shares Rise on New Reserve Plan
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 7h ago
0mins
Should l Buy AREC?
Source: Benzinga
- Share Price Surge: Shares of U.S. rare earth miners rose in pre-market trading following President Trump's announcement of a $12 billion critical mineral reserve, indicating a positive market response to the initiative.
- Project Context: Known as Project Vault, this critical mineral reserve aims to counter China's dominance in rare earth minerals, protecting U.S. tech firms and automakers from supply shocks while reducing reliance on Chinese resources.
- Funding Structure: The plan combines $2 billion in private funding with a $10 billion loan from the U.S. Export-Import Bank, with Trump stating that American taxpayers are expected to profit from the interest on the loan, highlighting the project's potential economic benefits.
- National Security Strategy: The new reserve is modeled after existing strategic petroleum and critical stockpiles, intended to support U.S. industry and prevent future supply disruptions, thereby enhancing national security and economic resilience.
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Analyst Views on AREC
Wall Street analysts forecast AREC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for AREC is 6.00 USD with a low forecast of 5.00 USD and a high forecast of 7.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
3 Analyst Rating
3 Buy
0 Hold
0 Sell
Strong Buy
Current: 2.930
Low
5.00
Averages
6.00
High
7.00
Current: 2.930
Low
5.00
Averages
6.00
High
7.00
About AREC
American Resources Corporation is a raw materials solutions provider in the critical materials space for the rare earth magnet, lithium-ion battery and semiconductor elements supply chain for defense and commercial applications. Its primary operations are the production of rare earth and critical mineral concentrates through its internal operations from mining waste streams as well as through investment in various mines and recyclers that produce such concentrates. It has a portfolio of operations located in the Central Appalachian basin of eastern Kentucky and southern West Virginia. Its subsidiary is American Infrastructure Corporation (AIC). Its AIC has coal mining and processing operating subsidiaries, which include McCoy Elkhorn Coal LLC, Knott County Coal LLC, Deane Mining, LLC (Deane Mining), Wyoming County Coal LLC (Wyoming County), Perry County Resources (Perry County), and ERC Mining Indiana Corporation (ERC) located in southwest Indiana within the Illinois coal basin.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
U.S. Rare Earth Miners' Shares Rise on New Reserve Plan
- Share Price Surge: Shares of U.S. rare earth miners rose in pre-market trading following President Trump's announcement of a $12 billion critical mineral reserve, indicating a positive market response to the initiative.
- Project Context: Known as Project Vault, this critical mineral reserve aims to counter China's dominance in rare earth minerals, protecting U.S. tech firms and automakers from supply shocks while reducing reliance on Chinese resources.
- Funding Structure: The plan combines $2 billion in private funding with a $10 billion loan from the U.S. Export-Import Bank, with Trump stating that American taxpayers are expected to profit from the interest on the loan, highlighting the project's potential economic benefits.
- National Security Strategy: The new reserve is modeled after existing strategic petroleum and critical stockpiles, intended to support U.S. industry and prevent future supply disruptions, thereby enhancing national security and economic resilience.
See More
Trump to Unveil Critical Minerals Stockpile Initiative
- Project Funding: Trump is set to unveil a critical minerals stockpile initiative named Project Vault, which is expected to secure $12 billion in seed funding, including $1.67 billion from private capital and a $10 billion loan from the U.S. Export-Import Bank, highlighting the government's commitment to mineral supply chains.
- Reducing China Dependence: The initiative aims to protect U.S. tech firms, automakers, and other manufacturers from supply shocks while decreasing reliance on Chinese rare earths and minerals, which holds significant national security and economic strategic implications.
- Loan Authorization Process: The Ex-Im Bank is likely to vote on Monday to authorize the 15-year loan, which will provide essential funding support for the project's implementation and further promote the development of a domestic rare earth supply chain.
- Industry Collaboration: Trump is set to meet with General Motors CEO Mary Barra and billionaire mining financier Robert Friedland, indicating a collaborative intent between the government and industry leaders to foster the construction and growth of the rare earth supply chain.
See More
Trump Administration Abandons Mineral Price Support Plans
- Policy Shift: The Trump administration has decided to abandon its plans for minimum price guarantees for U.S. critical minerals projects due to potential congressional funding shortfalls and market pricing complexities, which may impose greater financial pressures on mining projects.
- Industry Response: During a closed-door meeting in Washington, officials informed minerals executives that their projects must be financially viable without government price support, a policy shift that could impact industry investment confidence.
- Domestic Supply Chain Development: American Resources Corp. announced a $1.4 billion deal with ReElement Technologies and Vulcan Elements to establish a fully domestic rare earth magnet supply chain, producing 10,000 metric tons annually, indicating a strategic focus on critical minerals.
- Countering China's Influence: This move is part of the U.S. effort to ramp up mineral development to reduce reliance on China, ensuring national security and economic independence, reflecting the government's emphasis on critical mineral supply chains.
See More
GoldHaven Resources Discovers 334 ppm Indium at Magno Property in British Columbia
- Indium Discovery: GoldHaven Resources has confirmed a significant discovery of 334 ppm indium at its Magno Property in British Columbia, indicating strategic importance in the critical minerals sector and potentially enhancing the company's market position.
- Resource Potential: The indium-rich zones are closely associated with zinc mineralization, suggesting that the polymetallic system at Magno has further development potential, which could provide crucial insights for future exploration and mining efforts.
- Market Demand: As a critical mineral widely used in high-tech applications such as touchscreens and semiconductors, indium demand is expected to surge with the transition to clean energy, and GoldHaven's discovery will help meet this market need.
- Strategic Positioning: GoldHaven is advancing multiple projects across 133,186 hectares, and with ongoing exploration in Brazil and British Columbia, the company is poised to strengthen its competitiveness in the North American critical minerals market.
See More
Progress Software Corp Reports Q4 EPS Beat, Shares Surge 20.5%
- Earnings Beat: Progress Software reported an adjusted Q4 EPS of $1.51, exceeding the market expectation of $1.31, indicating strong profitability growth that is likely to boost investor confidence.
- Revenue Performance: The company's quarterly revenue was $252.67 million, slightly below the consensus estimate of $252.86 million; however, the overall financial performance remains robust, potentially attracting more institutional investor interest.
- Significant Stock Surge: Following the positive earnings report, Progress Software's shares surged 20.5% to $46.50 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: The company issued first-quarter and FY26 guidance above market estimates, demonstrating management's confidence in future performance, which may further drive stock price increases and enhance market recognition of its long-term investment value.
See More
GoldHaven Resources Confirms New Tungsten Zone with 6,550 ppm at Magno Property
- Market Outlook: The global critical minerals market is projected to surge from $328 billion to $587 billion, highlighting a sharp increase in demand for strategic metals, particularly as China restricts exports, positioning GoldHaven Resources as a key investment opportunity.
- Tungsten Discovery: GoldHaven confirmed a new tungsten mineralization zone at its Magno Property in British Columbia, with assays revealing up to 6,550 ppm tungsten, validating historical data and expanding the known mineral footprint, underscoring the area's mineral potential and strategic significance.
- Silver-Lead-Zinc Mineralization: The 2025 surface exploration program also identified bonanza silver grades of up to 2,370 grams per tonne alongside lead values exceeding 20%, enhancing the company's competitive edge in the critical minerals sector and likely attracting increased investor interest in its resource development.
- Multi-Project Advancement: GoldHaven has completed its inaugural drilling program at the Copeçal Gold Project in Brazil, successfully discovering copper mineralization, demonstrating its capability to advance multiple projects simultaneously, which is expected to provide strong momentum for the company's future growth.
See More
U.S. Rare Earth Miners' Shares Rise on New Reserve Plan
- Share Price Surge: Shares of U.S. rare earth miners rose in pre-market trading following President Trump's announcement of a $12 billion critical mineral reserve, indicating a positive market response to the initiative.
- Project Context: Known as Project Vault, this critical mineral reserve aims to counter China's dominance in rare earth minerals, protecting U.S. tech firms and automakers from supply shocks while reducing reliance on Chinese resources.
- Funding Structure: The plan combines $2 billion in private funding with a $10 billion loan from the U.S. Export-Import Bank, with Trump stating that American taxpayers are expected to profit from the interest on the loan, highlighting the project's potential economic benefits.
- National Security Strategy: The new reserve is modeled after existing strategic petroleum and critical stockpiles, intended to support U.S. industry and prevent future supply disruptions, thereby enhancing national security and economic resilience.
See More
Trump to Unveil Critical Minerals Stockpile Initiative
- Project Funding: Trump is set to unveil a critical minerals stockpile initiative named Project Vault, which is expected to secure $12 billion in seed funding, including $1.67 billion from private capital and a $10 billion loan from the U.S. Export-Import Bank, highlighting the government's commitment to mineral supply chains.
- Reducing China Dependence: The initiative aims to protect U.S. tech firms, automakers, and other manufacturers from supply shocks while decreasing reliance on Chinese rare earths and minerals, which holds significant national security and economic strategic implications.
- Loan Authorization Process: The Ex-Im Bank is likely to vote on Monday to authorize the 15-year loan, which will provide essential funding support for the project's implementation and further promote the development of a domestic rare earth supply chain.
- Industry Collaboration: Trump is set to meet with General Motors CEO Mary Barra and billionaire mining financier Robert Friedland, indicating a collaborative intent between the government and industry leaders to foster the construction and growth of the rare earth supply chain.
See More
Trump Administration Abandons Mineral Price Support Plans
- Policy Shift: The Trump administration has decided to abandon its plans for minimum price guarantees for U.S. critical minerals projects due to potential congressional funding shortfalls and market pricing complexities, which may impose greater financial pressures on mining projects.
- Industry Response: During a closed-door meeting in Washington, officials informed minerals executives that their projects must be financially viable without government price support, a policy shift that could impact industry investment confidence.
- Domestic Supply Chain Development: American Resources Corp. announced a $1.4 billion deal with ReElement Technologies and Vulcan Elements to establish a fully domestic rare earth magnet supply chain, producing 10,000 metric tons annually, indicating a strategic focus on critical minerals.
- Countering China's Influence: This move is part of the U.S. effort to ramp up mineral development to reduce reliance on China, ensuring national security and economic independence, reflecting the government's emphasis on critical mineral supply chains.
See More
GoldHaven Resources Discovers 334 ppm Indium at Magno Property in British Columbia
- Indium Discovery: GoldHaven Resources has confirmed a significant discovery of 334 ppm indium at its Magno Property in British Columbia, indicating strategic importance in the critical minerals sector and potentially enhancing the company's market position.
- Resource Potential: The indium-rich zones are closely associated with zinc mineralization, suggesting that the polymetallic system at Magno has further development potential, which could provide crucial insights for future exploration and mining efforts.
- Market Demand: As a critical mineral widely used in high-tech applications such as touchscreens and semiconductors, indium demand is expected to surge with the transition to clean energy, and GoldHaven's discovery will help meet this market need.
- Strategic Positioning: GoldHaven is advancing multiple projects across 133,186 hectares, and with ongoing exploration in Brazil and British Columbia, the company is poised to strengthen its competitiveness in the North American critical minerals market.
See More
Progress Software Corp Reports Q4 EPS Beat, Shares Surge 20.5%
- Earnings Beat: Progress Software reported an adjusted Q4 EPS of $1.51, exceeding the market expectation of $1.31, indicating strong profitability growth that is likely to boost investor confidence.
- Revenue Performance: The company's quarterly revenue was $252.67 million, slightly below the consensus estimate of $252.86 million; however, the overall financial performance remains robust, potentially attracting more institutional investor interest.
- Significant Stock Surge: Following the positive earnings report, Progress Software's shares surged 20.5% to $46.50 on Wednesday, reflecting market optimism regarding the company's future growth potential.
- Optimistic Guidance: The company issued first-quarter and FY26 guidance above market estimates, demonstrating management's confidence in future performance, which may further drive stock price increases and enhance market recognition of its long-term investment value.
See More
GoldHaven Resources Confirms New Tungsten Zone with 6,550 ppm at Magno Property
- Market Outlook: The global critical minerals market is projected to surge from $328 billion to $587 billion, highlighting a sharp increase in demand for strategic metals, particularly as China restricts exports, positioning GoldHaven Resources as a key investment opportunity.
- Tungsten Discovery: GoldHaven confirmed a new tungsten mineralization zone at its Magno Property in British Columbia, with assays revealing up to 6,550 ppm tungsten, validating historical data and expanding the known mineral footprint, underscoring the area's mineral potential and strategic significance.
- Silver-Lead-Zinc Mineralization: The 2025 surface exploration program also identified bonanza silver grades of up to 2,370 grams per tonne alongside lead values exceeding 20%, enhancing the company's competitive edge in the critical minerals sector and likely attracting increased investor interest in its resource development.
- Multi-Project Advancement: GoldHaven has completed its inaugural drilling program at the Copeçal Gold Project in Brazil, successfully discovering copper mineralization, demonstrating its capability to advance multiple projects simultaneously, which is expected to provide strong momentum for the company's future growth.
See More
