USA Rare Earth, Inc. USAR is working to advance rare earth mining and magnet manufacturing operations in the United States, including the Round Top mining project in Texas and a magnet production facility in Oklahoma. However, the company is still in the pre-revenue phase, as its mining assets have not yet achieved commercial-scale output, leading to ongoing operating losses since inception.
USAR has been facing escalating development expenditures as it moves forward through the project development stage. In the third quarter of 2025, the company’s selling, general and administrative expenses rose to $11.4 million from $0.8 million recorded in the year-ago quarter, due to higher legal and consulting costs, an expanded workforce, recruitment spending and additional overheads.
USA Rare Earth’s research and development expenses also increased to $4.45 million from $1.16 million in the same period due to higher employee-related costs linked to staff expansion. As a result, the company posted a loss of 25 cents per share for the third quarter.
Despite higher spending, USA Rare Earth continues to advance toward the targeted commercialization of multiple rare earth projects. These projects are expected to take at least several more quarters before achieving commercial production.
It is worth noting that USAR disclosed that its Round Top rare earth and critical minerals project is now anticipated to commence commercial production in late 2028, which is two years earlier than its prior timeline. Until revenue generation begins, substantial project development outlays and operating expenses are expected to remain a short-term drag. The absence of revenues, along with increasing development costs, is likely to pressure the company’s near-term financial performance.
Among its major peers, Trilogy Metals Inc. TMQ continues to maintain financial discipline as it advances work at the Upper Kobuk Mineral Projects through its joint venture, Ambler Metals LLC. Trilogy’s salaries expense increased in fiscal 2025, recording higher cash-based compensation compared with fiscal 2024. Trilogy Metals’ disciplined capital approach is allowing it to manage expenditures at a time when development projects often require significant investment.
Its another peer, NioCorp Developments Ltd. NB, is facing cost pressure. In the first quarter of fiscal 2026, its total operating expenses increased significantly on a year-over-year basis due to expenses incurred for the advancement of the Elk Creek Project. Rising costs and expenses, if not controlled, might affect NioCorp Developments’ margin performance moving ahead.