We recently published 10 Big Names Delivering Outsized Gains. USA Rare Earth Inc. (NASDAQ:USAR) was one of the top performers on Wednesday.
USA Rare Earth Inc. (NASDAQ:USAR) grew its share prices by 9.66 percent on Wednesday to close at $18.28 apiece as investors loaded portfolios ahead of the start of its magnet facility’s commercial operations, supported by rosy prospects from the United States’ invasion of Venezuela.
Earlier this month, the US invaded Venezuela with the arrest of its former president, Nicolas Maduro and his wife over narco-related charges, as well as the seizure of up to 50 million barrels of sanctioned oil from the South American country.
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Despite the move that earned the ire of various neighboring countries, investors took the invasion as a cue for the US’ potential access to the untapped mineral resources in Venezuela, especially as the world’s largest economy is underway with the expansion of domestic rare earth manufacturing to reduce dependence on China.
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 support USA Rare Earth Inc.’s (NASDAQ:USAR) magnet facility in Stillwater, Oklahoma currently under development.
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Disclosure: None. This article is originally published at Insider Monkey.
