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Strategies & Market Trends : Value Investing
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To: bruwin who wrote (78678)12/9/2025 11:05:34 AM
From: E_K_S1 Recommendation

Recommended By
roguedolphin

  Read Replies (1) of 78743
 
Agree; The Rare Earth investment is not a true Value investment (but miners do own hard assets in the ground) but now a Political and/or strategic assets play.

Based on Mp Materials Corp (MP) valuation, no earnings, 5x Price/Book, debt and burning cash it's market cap now $10.8 Billion (+10x after market has valued this as a strategic asset play).

Based on the above, Tronox Inc (TROX) may now/could be also valued as a strategic asset play. I think we have to look out over the next year as they implement their Rare Earth mine/processing build out. When they actually have production, will the market increase their market cap from $594 million to over $5 Billion? Price/Book 0.38x; Debt/Equity 2.03x (very high); Price/cash flow 2.14x; metric not too bad when compared to MP.

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Interesting that this announcement is w/ Australia for the development of an Australia processing facility. Rare Earth procession is very dirty and have significant environmental impacts if not monitored/controlled.

It will be interesting how the geo-political part play out and if TROX will get a strategic asset premium like MP/

Stay Tuned . . .
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