US Rare Earth Miner MP Materials' Q3 Net Income Up 192%

MP Materials, the largest rare earth miner in the Western Hemisphere, today announced that in the third quarter of 2021, the company's revenues increased 143% year-over-year, primarily due to higher sales prices for rare earth oxides (REO) in concentrate and higher metric tons (MT) sold.

The realized sales price increase of 127 percent was due to higher demand for rare earths driving increased market prices. The company said metric tons sold increased 36 percent, primarily due to higher volumes and timing of shipments. Adjusted EBITDA increased 488 percent year-over-year, driven by higher unit margins.

Net income increased 192% year-over-year, driven by significantly higher Adjusted EBITDA in the third quarter of 2021, while Adjusted Net Income increased 617% year-over-year to $52 million, primarily due to higher adjusted EBITDA, partially offset by higher income tax expense primarily related to higher pre-tax earnings.

The company’s team continues to deliver results, with record quarterly volumes and shipments driving strong revenue and adjusted EBITDA growth," said James H. Litinsky, MP Materials' Chairman and Chief Executive Officer. Our results reflect Mountain Pass' continued execution and cost control, as well as strong global demand for rare earth materials. In addition, during the quarter, we continued to make progress toward our goal of restoring the complete rare earth supply chain in the U.S., including progress on the Phase II optimization project and Phase III expansion downstream into magnetic materials."

MP Materials is the largest producer of rare earth materials in the Western Hemisphere. The company owns and operates the Mountain Pass rare earth mine and processing facility, the only rare earth mining and processing site of its size in North America. The company says it produces approximately 15 percent of the rare earth content that will be consumed in the global market in 2020. The company’s integrated operations at Mountain Pass combine low production costs with high environmental standards, thereby restoring American leadership to a critical industry with a strong commitment to sustainability.

MP Materials, formerly Fortress Value Acquisition Corp. is a rare earth miner. The company owns and operates the Mountain Pass Rare Earth Mine and processing facility, a rare earth mining and processing site of scale in the Western Hemisphere. The company focuses on the production of neodymium-praseodymium (NdPr), lanthanum and cerium oxides and carbonates. The company's NdPr magnets are used in many technologies, including electric vehicles, drones, defense systems, medical devices, wind turbines, robotics, and many others.

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