USA Rare Earth Is Burning Through Cash at $57 Million a Quarter. At That Rate, Here's How Long the Money Lasts.
USA Rare Earth has costly ambitions. Here's how long the company's cash could last.
Overview
USA Rare Earth (NASDAQ: USAR) has big ambitions -- and those ambitions aren't cheap. The rare-earth miner -- or would-be miner, since it's not mining yet -- burned roughly $56.7 million in second-quarter operating cash, up from about $19 million in the first quarter. That brings its 2026 cash burn to about $75 million, already more than four times the roughly $18 million it burned in all of 2025.
That's a lot of cash, but USAR, fortunately, isn't scrounging for loose change. It ended June with about $1.5 billion in cash and equivalents. If we were to divide that by its latest quarterly cash burn of $56.7 million, that would give USAR a cash runway of about 27 quarters, or nearly seven years.
Details
That isn't highly accurate, though. For one, it doesn't take into account capital expenditures (capex), which have already totaled about $108 million through the first six months of 2026. USAR is also building a large-scale rare-earth mine and two magnet factories, and potentially acquiring Serra Verde for $300 million in cash. The next few years are going to be costly, and its cash pile will likely dwindle much faster than seven years will pass.
Source
Originally published at www.fool.com.