Ucore Rare Metals (UCU) AI Stock Analysis

• Market Cap: C$896.36M
• Dividend Yield: N/A
• Average Volume (3M): 1.01M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.65
• Revenue Growth: N/A
• EPS Growth: -58.77%
• Country: CA
• Employees: 8
• Sector: General
• Sector Strength: N/A
• Industry: Industrial Materials
• EPS (TTM): -0.25
• Shares Outstanding: 112,185,530
• 10 Day Avg. Volume: 1,613,782
• 30 Day Avg. Volume: 1,012,152
• PEG Ratio: -0.05
• Price to Book (P/B): 1.17
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -7.52
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$14.35
• Price Target Upside: 79.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: C$8.00 ▲(0.13% Upside)

Score is primarily held down by weak financial performance (pre-revenue, widening losses, and continued cash burn with rising leverage). Technicals are a supporting factor due to a strong uptrend, but overbought signals temper the near-term outlook. Valuation remains challenging given ongoing losses and no dividend support.

Positive Factors

Proprietary Separation Technology

Ucore’s RapidSX proprietary separation tech constitutes a durable competitive asset: it can lower unit costs and shorten project timelines versus greenfield alternatives, enable licensing or JV income, and position the company as a differentiated North American REE processor for years.

North American REE Processing Focus

Targeting domestic REE processing aligns with long-term structural demand for secure supply chains in defense and clean energy. This geographic/strategic focus increases prospects for government support, long-duration contracts, and reduced competition from overseas refiners over the medium term.

Equity Cushion on Balance Sheet

A meaningful equity base relative to debt provides a moderate financial cushion that lengthens runway versus firms with high leverage. This supports funding of development milestones and JV or partner negotiations, reducing immediate liquidity pressure while projects advance toward commercialization.

Negative Factors

Pre-revenue with Widening Losses

The company remains pre-revenue and losses have more than doubled year-over-year, a durable risk: without operating revenue, development spending drives escalating deficits, increasing dependence on capital raises and making profitable operations and scale-up timelines uncertain over the next several quarters.

Persistent Negative Cash Flow

Consistent negative operating and free cash flow indicate ongoing cash burn that must be financed externally. Even if burn improved slightly, sustained negative cash generation undermines self-funded growth, raising dilution or refinancing risk and constraining long-term project execution flexibility.

Rising Leverage and Funding Risk

Leverage has increased materially over recent years, tightening financial flexibility. Higher debt elevates refinancing and interest risks, potentially forcing costly financing or asset dilution to fund operations, which can slow strategic execution and erode stakeholder returns over the medium term.

Ucore Rare Metals Business Overview & Revenue Model

Company Description

Ucore Rare Metals Inc. engages in the exploration and separation of elements in Canada and the United States. It primarily holds a 100% interest in the Bokan Mountain/Dotson Ridge property located in Prince of Wales Island, Alaska. The company was formerly known as Ucore Uranium Inc. and changed its name to Ucore Rare Metals Inc. in June 2010. Ucore Rare Metals Inc. was founded in 2006 and is headquartered in Halifax, Canada.

How the Company Makes Money

Ucore Rare Metals generates revenue primarily through the exploration and potential future production of rare earth elements and other critical metals. The company aims to capitalize on the growing demand for REEs by advancing its mining projects and utilizing proprietary technologies to efficiently separate and purify these minerals. Ucore is also involved in securing partnerships and collaborations with industry stakeholders to enhance its market position and revenue potential. Revenue is expected to be driven by the sale of processed rare earth materials to manufacturers and industries that require these elements for their products. Additionally, Ucore's development of innovative separation and purification technologies could provide licensing and service opportunities, further contributing to its earnings.

Ucore Rare Metals Financial Statement Overview

Summary

Development-stage profile with zero revenue, widening losses (TTM net income about -$32.4M vs. -$13.5M in 2024), and ongoing cash burn (TTM FCF about -$9.2M). Balance sheet has meaningful equity support, but leverage has risen notably (TTM debt-to-equity ~0.54) and ROE is deeply negative (~-0.71), increasing funding risk.

Income Statement

Results remain firmly pre-revenue (revenue is consistently 0), with persistent operating losses across the period. Losses have widened meaningfully in TTM (Trailing-Twelve-Months) (net income of about -$32.4M vs. -$13.5M in 2024), indicating a higher spend profile and weaker earnings trajectory. While this can be normal for development-stage materials companies, the lack of revenue and deepening losses are clear near-term negatives.

Balance Sheet

The balance sheet shows a moderate leverage profile with meaningful equity support (TTM (Trailing-Twelve-Months) debt-to-equity ~0.54, equity ~$47.6M vs. debt ~$25.9M). However, leverage has increased sharply versus prior years (debt-to-equity ~0.17 in 2023 and ~0.36 in 2024), and returns on equity are deeply negative (TTM (Trailing-Twelve-Months) ROE ~-0.71), reflecting ongoing losses and rising financial risk if funding needs persist.

Cash Flow

Cash generation is weak with consistently negative operating cash flow and free cash flow (TTM (Trailing-Twelve-Months) operating cash flow about -$8.7M and free cash flow about -$9.2M), implying continued cash burn. A positive free cash flow growth rate in TTM (Trailing-Twelve-Months) suggests the burn rate may have improved versus the prior period, but the company is still reliant on external funding while it remains pre-revenue.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	0.00	0.00	0.00	0.00
Gross Profit	-944.46K	-2.74M	-178.84K	-96.46K	-114.96K	-94.94K
EBITDA	-26.41M	-8.11M	-4.77M	-4.62M	-4.93M	-4.94M
Net Income	-32.39M	-13.47M	-7.61M	-5.47M	-5.51M	-5.53M
Balance Sheet
Total Assets	76.02M	62.06M	60.62M	53.24M	49.44M	46.70M
Cash, Cash Equivalents and Short-Term Investments	19.32M	627.52K	248.38K	2.26M	3.33M	1.04M
Total Debt	25.89M	15.14M	8.52M	3.70M	2.51M	4.54M
Total Liabilities	28.38M	20.41M	11.55M	5.02M	3.42M	5.28M
Stockholders Equity	47.65M	41.64M	49.08M	48.22M	46.03M	41.41M
Cash Flow
Free Cash Flow	-9.17M	-6.46M	-9.86M	-6.88M	-5.79M	-4.51M
Operating Cash Flow	-8.71M	-5.67M	-3.98M	-4.46M	-5.43M	-3.78M
Investing Cash Flow	-460.84K	-783.53K	-5.89M	-2.43M	1.20M	-724.27K
Financing Cash Flow	28.13M	6.83M	7.85M	5.82M	6.55M	2.70M

Ucore Rare Metals Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 7.99
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:UCU, the sentiment is Neutral. The current price of 7.99 is below the 20-day moving average (MA) of 8.73, above the 50-day MA of 7.18, and above the 200-day MA of 4.43, indicating a neutral trend. The MACD of 0.43 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 10.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:UCU.

Ucore Rare Metals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
AVL	52 Neutral	C$58.42M	-7.74	-4.00%	―	―	-760.00%
NMI	51 Neutral	C$58.82M	-56.82	-3.86%	―	―	―
MKA	51 Neutral	C$368.02M	-15.85	―	―	―	-341.26%
UCU	49 Neutral	C$896.36M	-17.94	-75.16%	―	―	-58.77%
LEM	49 Neutral	C$80.18M	-22.79	-12.25%	―	―	17.24%
GMA	42 Neutral	C$49.83M	-115.52	-102.86%	―	-100.00%	-33.58%

Ucore Rare Metals Corporate Events

Ucore Backs U.S. Push for Domestic Rare Earth Processing as Policy Tailwinds Grow

Ucore Rare Metals has publicly endorsed new U.S. federal actions under Section 232 of the Trade Expansion Act that prioritize secure domestic and allied supply chains for processed critical minerals, emphasizing that processing capacity—not just mining—is the key bottleneck in rare earths. The company argues that these policy moves validate its strategy to build U.S.-based rare earth processing infrastructure, led by its planned Louisiana Strategic Metals Complex using its proprietary RapidSX separation technology, which is designed to be modular, rapidly scalable, environmentally efficient, and independent of Chinese equipment, potentially positioning Ucore to benefit from evolving trade, industrial, and national security policies that favor vertically integrated and allied-nation processing solutions.

The most recent analyst rating on (TSE:UCU) stock is a Hold with a C$7.50 price target. To see the full list of analyst forecasts on Ucore Rare Metals stock, see the TSE:UCU Stock Forecast page.

Ucore Advances Rare Earth Processing with Louisiana Facility Plans

Ucore Rare Metals Inc. announced significant progress in the commercialization of its RapidSX™ rare earth element separation technology, which is set to transition from its current facility in Kingston, Ontario, to a new Strategic Metals Complex in Alexandria, Louisiana, by 2026. This development is part of a $22.4 million project with the U.S. Department of War, aiming to enhance U.S. capabilities in rare earth processing. The advancements include improved processing efficiency and environmental impact, positioning Ucore as a key player in the rare earth industry, with implications for stakeholders in terms of increased production capacity and reduced operational costs.

The most recent analyst rating on (TSE:UCU) stock is a Buy with a C$9.00 price target. To see the full list of analyst forecasts on Ucore Rare Metals stock, see the TSE:UCU Stock Forecast page.