MP Materials Corp

Latest Results (20.08.2024):

Revenue Decline

MP Materials Corp reported a significant decrease in revenue for the first quarter of 2024, with total revenue falling by 49% year-over-year to $48.7 million. This decline was primarily driven by a 54% decrease in the realized price of rare earth oxide (REO) in concentrate and a 9% decrease in REO sales volumes. The softer pricing environment for rare earth products compared to the prior year period contributed to this revenue drop.

Net Income Reduction

For the first quarter of 2024, MP Materials Corp's net income decreased by $21.0 million year-over-year, resulting in a net income of $16.5 million. This reduction was mainly due to lower Adjusted Net Income (Loss) and higher depreciation expenses from increased capital assets placed into service over the last year. Additionally, higher interest expenses from newly issued 2030 convertible notes also impacted net income.

Adjusted EBITDA

MP Materials Corp's Adjusted EBITDA for the first quarter of 2024 declined to $(1.2) million, a significant drop from $58.7 million in the same period of the previous year. This decline was driven by lower revenue, higher cost of sales, and increased personnel and general administrative costs. The start of Stage II production also contributed to higher production costs, including a $6.0 million reserve for initial production carrying costs.

REO Production and Sales

In the first quarter of 2024, MP Materials Corp achieved REO production volumes of 11,151 metric tons, marking a 4% increase year-over-year. However, REO sales volumes decreased by 9% to 9,332 metric tons. The increase in production was attributed to higher uptimes and feed rates, while the decrease in sales volume was due to the start-up of separated rare earth production, which diverted some REO for work-in-process or finished products.

Adjusted Net Income (Loss)

MP Materials Corp reported an Adjusted Net Income (Loss) of $(7.5) million for the first quarter of 2024, a significant decrease from $51.3 million in the same period of the previous year. This decline was primarily due to lower Adjusted EBITDA, higher depreciation expenses, and increased interest expenses from the newly issued 2030 convertible notes. These factors were partially offset by lower income tax expenses associated with reduced pre-tax income.