REA (Rare Earths Americas) Effective Interest Rate on Debt %: 18.02% (As of Dec. 2025)

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REA Rare Earths Americas Inc REA
14 GF Score
Price $11.93
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What is Rare Earths Americas Effective Interest Rate on Debt %?

Rare Earths Americas REA +6.14% 14 Effective Interest Rate on Debt % is 18.02% as of Dec. 2025. GuruFocus rates REA with a GF Score™ of 14/100. The stock has 1 warning sign investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Rare Earths Americas's annualized positive value of Interest Expense for the quarter that ended in Dec. 2025 was $0.21 Mil. Rare Earths Americas's average total debt for the quarter that ended in Dec. 2025 was $1.14 Mil. Therefore, Rare Earths Americas's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 was 18.02%.


Rare Earths Americas  (AMEX:REA) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Rare Earths Americas Effective Interest Rate on Debt % Related Terms


Rare Earths Americas Effective Interest Rate on Debt % Historical Data

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The historical data trend for Rare Earths Americas's Effective Interest Rate on Debt % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Rare Earths Americas Effective Interest Rate on Debt % Chart

Rare Earths Americas Annual Data
Trend Dec23 Dec24 Dec25
Effective Interest Rate on Debt %
0.00 0.00 18.02

Rare Earths Americas Semi-Annual Data
Dec23 Dec24 Dec25
Effective Interest Rate on Debt % 0.00 0.00 18.02

REA vs REEMF, LZM, SBMT: Effective Interest Rate on Debt % Comparison

For the Other Industrial Metals & Mining subindustry, Rare Earths Americas's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Rare Earths Americas Effective Interest Rate on Debt % vs Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Rare Earths Americas's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Rare Earths Americas's Effective Interest Rate on Debt % falls into.


REA
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Rare Earths Americas Inc REA
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Rare Earths Americas Effective Interest Rate on Debt % Calculation

Rare Earths Americas's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2024 )+Total Debt  (A: Dec. 2025 ))/ count )
=-1  *  -0.206/( (0+1.143)/ 1 )
=-1  *  -0.206/1.143
=18.02 %

where

Total Debt  (A: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.02 + 1.123
=1.143

Rare Earths Americas's annualized Effective Interest Rate on Debt % for the quarter that ended in Dec. 2025 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2024 )+Total Debt  (Q: Dec. 2025 ))/ count )
=-1  *  -0.206/( (0+1.143)/ 1 )
=-1  *  -0.206/1.143
=18.02 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=0.02 + 1.123
=1.143

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is one times the annual (Dec. 2025) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 18.02% mean?
Rare Earths Americas (REA) has a Effective Interest Rate on Debt % of 18.02% as of Dec. 2025. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Rare Earths Americas and its competitors.
Is Rare Earths Americas' Effective Interest Rate on Debt % too high?
Rare Earths Americas' current Effective Interest Rate on Debt % is 18.02%. Overall, Rare Earths Americas has a GF Score™ of 14/100, reflecting its overall financial health beyond just this single metric.
How does Rare Earths Americas' Effective Interest Rate on Debt % compare to REEMF and LZM?
Rare Earths Americas' Effective Interest Rate on Debt % of 18.02% can be compared against companies in the Metals & Mining industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Metals & Mining company?
A good Effective Interest Rate on Debt % depends on the Metals & Mining industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Rare Earths Americas and its competitors. Rare Earths Americas's current Effective Interest Rate on Debt % is 18.02%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Rare Earths Americas stock overvalued right now?
Rare Earths Americas (REA) has a current Effective Interest Rate on Debt % of 18.02%. The current Effective Interest Rate on Debt % is 18.02%. Rare Earths Americas' overall GF Score™ is 14/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Rare Earths Americas (REA), the current Effective Interest Rate on Debt % is 18.02% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Rare Earths Americas Business Description

Address 101 W. Main Street, Manchester, GA, USA, 31816
Rare Earths Americas Inc is an exploration stage company focused on advancing projects related to rare earth minerals. Its activities include evaluating mineralization and assessing the characteristics and economic potential of its assets. Its portfolio includes the Shiloh Project in Georgia, United States; the Alpha Project in Bahia, Brazil; and the Constellation Project in Minas Gerais, Brazil. It also holds additional early-stage exploration projects, including the Homer Project in Goiás, Brazil, and the Liberty Peak Project in Georgia, United States. The company has two reportable segments due to their geographical location: United States Mining Operations and Brazil Mining Operations.
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