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  5. MP: UCU has had a strong run. [MP Materials Corp.]
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Investment Q&A

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Q: UCU has had a strong run. With its critical mineral focus, apparently unique RapidSX technology, its build out in Louisiana, and funding support from the US Army, how does it look to 5i's for future stock appreciation? Fundamentals? Would 5i's consider it a worthy investment or is the stock more likely to crash after its 1000%+ climb this past year?

Many thanks.
Asked by David C. on September 30, 2025
5i Research Answer:

While not yet producing, it is scheduled to start rare earth output in Louisiana in May. Its $80M plant will produce rare earth magnet materials, some of which are under China export restrictions. It has signed some offtake agreement and has capacity. The stock has run hard with the Trump administration's focus on being less dependent on China, and the government's investment in MP certainly helped. UCU is now large enough for new investors and in focus. There has been some insider buying this year. We think it can keep going, as long as there is no change in the US government's stance, which we highly doubt will happen. It needs to be considered speculative, and we would manage position size after such a big run, but we would not be surprised at more gains. Production needs to come through as expected, though, and it is hard to justify on current financials as there really are none. Only one small broker covers it. We could see it as part of a small cap sector allocation in a very small weighting for speculative investors.