USA Rare Earth (USAR) Tumbles After Trump Signs Deal with Australia

We recently published 10 Firms Crashing Harder Than Wall Street. USA Rare Earth, Inc. (NASDAQ:USAR) is one of the worst performers on Tuesday.

USA Rare Earth fell by 15.38 percent on Tuesday to end at $26.73 apiece as investors unloaded portfolios while digesting the Unites States’ newly signed deal with Australia for the development of critical minerals in their countries.

On Monday, President Donald Trump announced that the US signed a mutual agreement with Australia to boost the production of rare earths and other critical minerals, in a bid to counter China’s dominance of the said markets.

Australian Prime Minister Anthony Albanese said that the deal would unlock $8.5 billion worth of “ready-to-go” projects and expand Australia’s mining and processing abilities.

Meanwhile, USA Rare Earth, Inc.’s (NASDAQ:USAR) price drop can also be attributed to profit-taking following a 14 percent surge the day prior, buoyed by William Blair’s optimistic coverage for its stock.

In a market note, William Blair gave an outperform rating on USA Rare Earth, Inc. (NASDAQ:USAR), alongside United States Antimony Corp., American Resources Corp., NioCorp Developments Ltd., and Royalty Management Holding Corp., on the belief that they were uniquely positioned to benefit from the surge in interest and investments in domestic rare earth production.

For USA Rare Earth, Inc. (NASDAQ:USAR) alone, William Blair highlighted the looming start of operations of a magnet facility that is expected to support its growth.

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