Contra Guys: Why we’re not selling our shares in Neo Performance Materials despite its formidable run
Neo Performance Materials has seen significant growth due to increased demand for rare earths amid geopolitical tensions. The company has expanded its production capabilities, including a new magnet manufacturing facility in Estonia. Despite its remarkable run, the investment team has chosen not to sell more shares, believing in the long-term potential of the company.
- ▪Neo Performance Materials' stock rallied 94.7% in 2025 due to rising demand for rare earths.
- ▪The company has completed a new magnet manufacturing facility in Estonia, which is set to produce 2,000 tonnes annually.
- ▪Management has raised the annual adjusted-EBITDA forecast from $75-$80 million to $100-$110 million.
Opening excerpt (first ~120 words) tap to expand
Open this photo in gallery:Neo Performance Materials President and CEO Rahim Suleman speaks at the 2025 U.S.-Canada Summit in Toronto in October, 2025.Sammy Kogan/The Globe and MailShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountCasting back to the start of 2025, Neo Performance Materials Inc. NEO-T was our top pick for the year. For those new to the name, Toronto-based Neo Performance refines and manufactures rare earth metals, magnets, and magnetic powders. Here at Contra the Heard Investment Newsletter, our average purchase price is $7.41 since we began buying the stock in January, 2024. The thesis 18 months ago was simple.
…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Globe and Mail.
Discussion
0 commentsMore from The Globe and Mail
