Undervalued rare earth elements stock acquires processing facility

• Ucore Rare Metals (TSXV:UCU), an undervalued rare earth elements stock, acquired its first commercial processing facility in Alexandria, Louisiana
• The company will ramp up the facility to process 2,000 tonnes of rare earth oxides per year by 2025, expanding to 7,500 tonnes by 2027
• Ucore is focused on critical metals extraction, beneficiation and separation technologies
• Ucore Rare Metals stock (TSXV:UCU) is up by 15 per cent year-over-year, but has gained only 2.22 per cent since 2019

Ucore Rare Metals (TSXV:UCU), an undervalued rare earth elements stock, acquired its first commercial processing facility in Alexandria, Louisiana.

The 80,800 square foot brownfield facility, known as the Louisiana Strategic Metals Complex, will be North America’s first full-scale rare earth elements refinery. The company will develop the complex to process 2,000 tonnes of rare earth oxides per year by the first half of 2025, expanding to 5,000 tonnes by 2026, and 7,500 tonnes by 2027.

The land package spans more than 10.7 acres and is secured through a multi-decade lease with the England Economic and Industrial Development District (EEIDD) at their England Airpark complex. England Airpark is a former Air Force base operating to bring economic development to Central Louisiana.

The Greater Alexandria Economic Development Authority (GAEDA) has approved a US$360,000 grant to England Airpark to support project development through lease assistance over the first two years.

“Ucore is very pleased to announce the completion of this acquisition process and is extremely grateful to the City of Alexandria, England Airpark, GAEDA, the governor of Louisiana, Louisiana Central, Louisiana Economic Development, Rapides Parish, Louisiana’s federal delegation and numerous other entities that helped us secure this long-term arrangement in Alexandria,” Mike Schrider, Ucore’s vice president and chief operating officer, said in a statement.

“This lease structure allows us time to get to a revenue position and to simultaneously cultivate developing opportunities for planned expansion and prospective joint ventures for the adjacent 50 acres of industrial property, as we truly seek to establish a comprehensive and integrated rare earth supply chain in North America,” he added.

An underappreciated tech innovator

Ucore stock’s flat performance over the past five years runs counter to the company’s numerous positive near-term catalysts, including:

• Differentiated metal separation technology that saves on space and supercharges throughput compared to legacy options
• A management team with a combined 22 per cent ownership stake
• A target market in line with global electrification and decarbonization expected to grow by 7x during this decade
• Substantial funding from the governments of Canada and the United States for technology demonstration programs
• Three feedstock agreements in place, with numerous others in the works

All of this unacknowledged potential makes Ucore a prime target for undervaluation. Interested investors can continue their due diligence by reading my recent overview of the company.

Ucore is focused on critical metals extraction, beneficiation and separation technologies.

Ucore Rare Metals stock (TSXV:UCU) last traded at C$0.92 per share. The stock is up by 15 per cent year-over-year, but has gained only 2.22 per cent since 2019.

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