USA Rare Earth (USAR) Climbs 10.9% as US-Venezuela Tensions Spark Rosy Prospects

We recently published 10 Stocks With Eye-Popping Double-Digit Gains; 4 Hit All-Time Highs. USA Rare Earth Inc. (NASDAQ:USAR) was one of the top performers on Tuesday.

USA Rare Earth extended its winning streak to a third consecutive day on Tuesday, jumping 10.89 percent to close at $17.52 apiece as investors took path from ongoing geopolitical tensions between the US and Venezuela, which could potentially open doors for the former’s access to the latter’s mineral-rich resources.

Over the weekend, the US government announced that it had captured Venezuelan President Nicolas Maduro who had been brought to the US for criminal charges, including narco-terrorism and drug trafficking. Traders took the arrest as a cue for the US’ potential access to the untapped mineral resources in Venezuela, especially as the world’s largest economy is ramping up its rare earth manufacturing to reduce dependence on China.

USA Rare Earth’s magnet facility in Stillwater, Oklahoma. Photo from the USA Rare Earth website

Venezuela’s Orinoco Mining Arc reportedly holds as much as 300,000 metric tons of rare earth deposits, including lanthanum, thorium, and crucially, neodymium—a key ingredient for manufacturing high-performance permanent magnets, which could spark rosy prospects for USA Rare Earth Inc.’s (NASDAQ:USAR) large magnet facility in Stillwater, Oklahoma.

Currently under development, USA Rare Earth Inc. (NASDAQ:USAR) said it targets commercial operations in the first half of the year.

Apart from USA Rare Earth Inc. (NASDAQ:USAR), other rare earth stocks also rallied during the session, including MP Materials Corp. ad Texas Mineral Resources Corp., among others.

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Disclosure: None. This article is originally published at Insider Monkey.