MP Materials Reports 431% Rise in First Quarter Net Profit on High Rare Earth Prices and Increased Production

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(Kitco News) – On Thursday, MP Materials (NYSE:MP) reported record revenue, net income and adjusted EBITDA on higher rare earth prices, production and sales in the first quarter 2022.

The company said the 10% increase in rare earth production volumes in the first quarter of 2022 (10,828 tons) compared to the first quarter of 2021 (9,849 tons) was due to improved efficiency of its processing operations, primarily through higher ore feed and recovery rates. , as well as a slightly higher factory availability.

The company’s revenue increased 177% year over year, driven by the increase in the realized price of rare earth oxide in concentrate form and metric tons of REO sold. The 135% increase in realized price compared to the first quarter of 2021 is due to increased demand for rare earths resulting in higher market prices.

Adjusted EBITDA increased 301% year-on-year, driven by higher unit profitability, partially offset by higher personnel and other general and administrative expenses, as well as advanced projects and costs of development.

Net income increased 431% year-over-year, driven by a significant increase in adjusted EBITDA in the first quarter of 2022. Adjusted net income increased 316% year-over-year to $96.3 million, primarily due to higher adjusted EBITDA, partially offset by higher tax expense related primarily to higher pre-tax earnings.

The company added that diluted earnings per share (“EPS”) rose 400% year over year to $0.45, thanks to higher net income. Adjusted diluted EPS increased 285% to $0.50 due to higher adjusted net income.

“The MP team delivered strong execution and performance in the first quarter, highlighted by record quarterly revenue and profitability. We benefited from our continued focus on cost discipline and strong realized pricing,” said Chairman and Chief Executive Officer James H. Litinsky. “We are making steady progress toward our goal of re-establishing the entire rare earth supply chain in the United States, including our Phase II project at Mountain Pass and our first Phase III magnetic facility in Texas.”

MP Materials is the largest producer of rare earths in the Western Hemisphere. The Company owns and operates the Mountain Pass rare earth mine and processing facility in California, the only active, large-scale rare earth production site in North America.

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