Q: May I please have your thoughts on Ucore.Is it a buy given it's recent run?Do you think it will reach it's previous high around $12.
Thank you
Thank you
5i Research Answer:
UCU is a Canadian critical metals tech company focused on developing scalable rare earth element (REE) refinining infrastructure in North America. It is targeting to begin production at its Louisiana Strategic Metals Complex processing facility in 2026. It is a $900M market cap name, but it is pre-revenue and generates negative free cash flow, but its momentum has been solid recently, and it operates in a space with secular growth tailwinds. We think it looks interesting, but there are risks involved (pre-revenue, small-cap). If the markets continue to move higher, and small-caps continue to see a bid, we think that names in this space can continue to move higher.