This Rare Earths Stock Just Scored a Major Win. Should You Buy It Now?

Core Insights - Trilogy Metals Inc. secured a significant approval from the U.S. federal government for its Ambler Mining District project, which includes a key infrastructure link and a 10% stake acquisition by the government [1][2] Group 1: Company Developments - Trilogy Metals' share price increased by 15.9% on October 24 after Alaska executed essential right-of-way permits for the Ambler access project, reinstating a 50-year right-of-way across federal lands [2] - The approved 211-mile industrial access road into the Ambler Mining District enhances Trilogy's development prospects, which had previously faced delays [3] - The company's market capitalization is approximately $984.3 million [3] Group 2: Stock Performance - Trilogy Metals' stock price has risen dramatically this year, increasing from just over $1 in early 2025 to above $10 recently due to government-backed developments [4] - The stock reached a 52-week high of about $11.29 on October 14, following a $35.6 million investment announcement from the U.S. government [5] - Year-to-date, the stock has gained 251%, and it has increased by 542% over the past year [5] Group 3: Market Sentiment - Despite the stock's volatility and speculative nature, the recent rally indicates a market reevaluation of Trilogy's prospects in critical minerals and infrastructure access [6] - The stock appears overvalued compared to industry peers, with a price-book ratio of 6.1x [7]