U.S. Rare Earth Miner MP Materials Boosts Third Quarter Net Profit 192% Thanks to Strong Prices and Production
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(Kitco News) – MP Materials (NYSE: MP), the largest producer of rare earth materials in the Western Hemisphere, today announced that in the third quarter of 2021, the company’s revenue increased by 143% year on year, thanks to the increase in realized sales prices of rare earth oxides (“REO”) in concentrate as well as metric tons (“MT” of REO sold).
The 127% realized sales price increase is due to increased demand for rare earths leading to higher market prices. The 36% increase in MT sold is mainly due to higher production volumes as well as the timing of shipments, the company said.
Adjusted EBITDA increased 488% year-on-year, driven by higher unit profitability, partially offset by higher costs for public companies and growth and development.
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. other to $ 52.0 million, primarily due to higher Adjusted EBITDA, partially offset by a higher income tax expense primarily related to the increase in pre-tax earnings.
“The MP Materials team continues to deliver, with record quarterly production and shipments driving strong sales growth and adjusted EBITDA,” said James H. Litinsky, President and CEO of MP Materials . “Our performance reflects the continued execution and cost discipline at Mountain Pass, coupled with strong global demand for rare earth materials. Also during the quarter, we continued to make progress toward our goal of restoring the entire rare earth supply chain in the United States, including progress on our Phase II optimization project and the ‘downstream expansion of phase III in the magnetic domain. “
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, the only scale rare earth mining and processing site in North America.
MP Materials reported that it produced around 15% of the rare earth content consumed in the global market in 2020.
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