Micron Technology: Record Outlook Ahead of September 30
In the age of artificial intelligence, memory is gaining strategic value. This is evident at Micron Technology. In the third fiscal quarter, the Boise-based company posted revenue of USD 41.46 billion. By comparison, revenue in the same quarter of last year was just USD 9.30 billion. For the fourth quarter, management projected USD 50.0 billion, plus or minus USD 1.0 billion, with a gross margin of approximately 86%. The company is already shipping large volumes of high-performance HBM4-generation memory for the platform of one of its most important customers. Revenue has surged accordingly.
At the same time, Micron is advancing new initiatives. On August 13, the investment arm Micron Ventures launched a new USD 250 million fund that invests in startups and other companies focused on artificial intelligence. A week later, the company announced Micron Research Labs. Over the next ten years, USD 10 billion is set to flow into the research centre, with its core location in Boise, as well as into partnerships and additional labs. On September 15, AMD and Intel unveiled a 512 GB memory module for servers, which they are currently validating. Mass production is scheduled to begin in the second half of 2027.
On September 30, Micron will release its fourth-quarter results. That is when we will see whether the company’s own outlook holds up. If the US company reaches its target of USD 50.0 billion, it will significantly exceed the record revenue from the third quarter. What management says about the new fiscal year will also be important. However, in addition to its Research Labs, Micron has committed to investing more than USD 250 billion in manufacturing and research in the US. Such investments take years to pay off. The bar is therefore set high.
Kobo Resources: High-Grade Discoveries Ahead of the First Resource Estimate
For a gold explorer, location is key. Kobo Resources is drilling in Côte d’Ivoire right next to one of the region’s largest gold mines, which already has processing facilities in place. The Kossou project is located about 20 km northwest of Yamoussoukro and is 100% owned by the Canadian company. Over a strike length of more than 9 km, ground surveys indicate elevated gold values. To date, more than 51,000 m have been drilled there. Two drill rigs are currently in operation. The metallurgy is also promising. In tests conducted by SGS Canada Inc., the average gold recovery rate was approximately 97%.
On September 3, Kobo released new results from the northern part of the Road Cut Zone. One result in particular stands out. One drill hole returned 1.0 m at 68.60 g/t gold. The same hole also returned 5.0 m at 4.55 g/t, including 1.0 m at 17.60 g/t. Other holes added 2.0 m at 7.75 g/t and 7.0 m at 2.25 g/t. The drill holes span about 200 m of strike length, and the mineralization remains open to the north and at depth. According to CEO Edward Gosselin, the hits show where the zone can still grow.
Kossou’s first resource estimate is expected in the fourth quarter. This is a milestone, as the many individual drill results will then be consolidated into a reliable figure. Only then will it be possible to quantify, for the first time, how much gold is in the ground. The data available so far is encouraging. The high-grade hits, the good gold recovery in the tests, and the proximity to a major mine all speak in favour of the project. If the Canadians succeed in producing a convincing mineral resource estimate, it could attract further investor attention to the company. The estimate could be the big breakthrough.
MP Materials: More Rare Earths, Smaller Loss
The Pentagon is tightening its rules for rare earth magnets. Starting January 1, 2027, it will exclude China, Russia, North Korea, and Iran from the entire supply chain, from the mine to the finished magnet, for certain types of magnets. Las Vegas-based MP Materials mines and processes the raw materials in Mountain Pass, California, and is beginning to manufacture magnets in Fort Worth, Texas. Through Project Swarm, the company is pooling demand from the drone industry and has signed contracts with several customers from the US and allied countries. It also secured a long-term offtake agreement for gadolinium with a new US customer in the aerospace and defence sectors.
On August 6, MP Materials reported its second-quarter results. Revenue rose to USD 108.49 million, up from USD 57.39 million in the same quarter last year. The company produced 840 metric tons of NdPr, up from 597 metric tons, and sold 1,006 metric tons, up from 443 metric tons. Adjusted EBITDA turned positive at just over USD 28.49 million, after posting a loss of nearly USD 12.54 million a year earlier. The bottom line showed a loss of about USD 20.3 million, compared with a profit of USD 30.87 million. Operationally, the company is on the right track.
But not everything went smoothly. In the magnet business, revenue fell by 17% to USD 16.5 million. Financially, the group is in a solid position, with cash and short-term investments totaling USD 1,452.64 million as of June 30. If MP Materials succeeds in ramping up magnet production, the Pentagon’s stricter regulations could bring the group new orders. China remains a risk. According to Reuters, the state-owned China Rare Earth Group is negotiating a takeover of Shenghe Resources, which holds a stake in MP. Shenghe denied that its major shareholder intends to transfer its shares. A Chinese state-owned enterprise among the shareholders would add uncertainty.
The coming months will provide new insights for all three companies. Micron Technology has established a strong position with memory for artificial intelligence and must demonstrate on September 30 that its own record outlook holds. Kobo Resources has delivered high-grade hits and a good gold yield. With its first resource estimate in the fourth quarter, Kossou could take its next big step. MP Materials has turned its operations around, but its magnet business still lacks momentum. The Pentagon’s stricter regulations could give the American company an additional boost. All three have something to show for themselves.
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