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MP Materials posts record quarterly rare earths production at Mountain Pass, boosts EBITDA and net income

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(Kitco News) - MP Materials (NYSE: MP), the largest rare earth materials producer in the Western Hemisphere, today announced an 11% increase in production volumes in Q2 2021 to 10,305 tonnes of rare earth oxide (REO) compared to 9,287 tonnes Q2 2020, which was due to a modest improvement in the efficiency of its processing operations at Mountain Pass.

The company said that its revenue increased 141% year-over-year, driven by increases in the realized sales prices of REO in concentrate, which have increased 137% due to higher demand for rare earths driving increased market prices. Adjusted EBITDA increased 491% year-over-year, driven by higher per-unit profitability, partially offset by increased public company and growth and development costs.

Net income was $27.2 million compared to a net loss of $62.5 million in the prior year period. The improvement was mainly due to a $66.6 million one-time, non-cash charge related to the cancellation of a distribution and marketing agreement in the prior year period, as well as the significantly higher adjusted EBITDA in the second quarter of 2021. Adjusted net income increased by 583% year-over-year to $33.4 million, mainly due to the higher adjusted EBITDA, partially offset by higher income tax expense related mainly to the higher pre-tax earnings.

“MP Materials’ second quarter results demonstrate our strong execution as demand for rare earth materials continues to grow. The MP team produced the highest quarterly REO output in Mountain Pass history, driving revenues to more than double and adjusted EBITDA to increase nearly six times compared to the second quarter of 2020,” said Chairman and CEO James H. Litinsky.

MP Materials is the largest producer of rare earth materials in the Western Hemisphere. With over 300 employees, the company owns and operates the Mountain Pass Rare Earth Mine and Processing Facility, an iconic American industrial asset, which is the only rare earth mining and processing site of scale in the Western Hemisphere.

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