U.S. rare earths miner MP Materials ups net income 192% in Q3 on strong prices and production
(Kitco News) - MP Materials (NYSE: MP), the largest rare earth materials producer in the Western Hemisphere, today announced that in Q3 2021, the company’s revenue increased 143% year-over-year, driven by increases in the realized sales prices of rare earth oxide (“REO”) in concentrate as well as metric tons (“MT”) of REO sold.
The realized sales price increase of 127% was due to higher demand for rare earths driving increased market prices. The 36% increase in MTs sold was mainly due to the higher production volumes as well as the timing of shipments, the company said.
Adjusted EBITDA increased 488% year-over-year, driven by higher per-unit profitability, partially offset by increased public company and growth and development costs.
Net income increased 192% year-over-year, driven by the significantly higher adjusted EBITDA in the third quarter of 2021, whereas adjusted net income increased by 617% year-over-year to $52.0 million, mainly due to the higher adjusted EBITDA, partially offset by higher income tax expense related mainly to the higher pre-tax earnings.
“The MP Materials team continues to deliver, with record quarterly production and shipments driving strong growth in revenue and adjusted EBITDA,” said MP Materials Chairman and CEO, James H. Litinsky. “Our performance reflects continued execution and cost discipline at Mountain Pass coupled with strong global demand for rare earth materials. Also in the quarter, we continued to march toward our goal to restore the full rare earth supply chain to the United States, including progress on our Stage II optimization project and Stage III downstream expansion into magnetics.”
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 scale in North America.
MP Materials indicated it produced approximately 15% of the rare earth content consumed in the global market in 2020.