Core Insights - MP Materials (NYSE: MP) is a California-based rare earth miner that has seen its stock price increase significantly this year, with a peak growth of over 500% before stabilizing around a 250% gain, which is notable for a non-profitable mining company [1][2] Stock Performance - Over the past five years, MP's share price has shown a decent trajectory, starting at approximately $21 and reaching around $60 today, resulting in a 186% gain for an initial investment of $100 [3] - In comparison, a $100 investment in an S&P 500 ETF would have grown about 87% over the same period, resulting in approximately $187 [3] Market Context - Prior to 2025, MP's stock was trending downward, but the escalation of trade tensions between China and the U.S. has increased the strategic significance of MP Materials as one of the few scaled rare earth miners in the U.S. [4] - This unique value proposition has contributed to the stock's remarkable rise this year, raising questions about its future potential and whether it can meet investor expectations, including those from the Pentagon [5] Company Operations - MP Materials operates the Mountain Pass mine in California, which is one of the only scaled rare earth mines in the U.S. [7]

Company Overview - MP Materials is the owner and operator of the Mountain Pass rare earth mining and processing facility, which is the only integrated site of its kind in the Western Hemisphere [2] - The company is undergoing a 3-stage transformation to refine rare earth materials mined at Mountain Pass and become a supplier of permanent magnets for various industries, including automotive and those critical for national security [2] Financial Metrics - MP Materials has an equity market capitalization of approximately $16 billion and a total enterprise value of around $14 to $15 billion [3] Strategic Importance - The company has gained attention due to its investment and backing from the Department of Defense, highlighting its strategic importance in the rare earth materials sector [3]

Core Viewpoint - Cleveland-Cliffs (CLF) shares surged over 20% following the company's indication of a potential expansion into rare earth mining, which is timely given the current trade tensions with China and its dominance in the rare earth market [1][3]. Group 1: Stock Performance - CLF stock has increased more than 170% from its year-to-date low, reflecting strong market interest and investor confidence [2]. - The recent rally in CLF shares is attributed to the company's strategic move towards rare earth mining, which aligns with national security interests [4]. Group 2: Rare Earth Mining Potential - The company is exploring existing mines in Michigan and Minnesota for rare-earth deposits, which could enhance its market position amid rising supply chain concerns due to China's export restrictions [1][3]. - Federal support for domestic rare earth mining is evident, with previous deals such as an $8.5 billion partnership with Australia, indicating a favorable environment for CLF's expansion plans [4]. Group 3: Financial Performance - In its fiscal third quarter, CLF reported revenue of $4.73 billion, which was lower than expected, alongside an adjusted per-share loss of $0.45 [5]. - Despite the disappointing earnings, steel shipments increased to 4.03 million net tons, driven by improved demand from the global automotive sector, showcasing the core business's resilience [5]. Group 4: Cost Management and Strategic Partnerships - The company has shown fiscal responsibility by reducing its full-year capital spending forecast from $600 million to $525 million and lowering administrative costs guidance, which supports a bullish outlook for CLF shares [5][6]. - A new memorandum of understanding (MOU) with a major global steel producer is expected to be highly beneficial for shareholders, further enhancing the company's growth prospects [6].