MOUNTAIN PASS, Calif.--(BUSINESS WIRE)--MP Materials Corp. (NYSE: MP) (“MP Materials” or the “Company”), the largest rare earth materials producer in the Western Hemisphere, today announced its financial results for the third quarter and year-to-date ended September 30, 2020. A more detailed review of the year-to-date results can be found in the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission today.

“Our results show continued strong operational execution throughout 2020,” said James Litinsky, Chairman and Chief Executive Officer of MP Materials. “With our business combination complete, MP has a fully equitized balance sheet to support the execution of our long-term plans to become a key supply chain partner as global industry advances towards electrification,” added Litinsky. “Our next several quarters will be focused on our move downstream into production of higher-margin separated rare earths with a focus on NdPr. We expect to continue driving profitable growth as we produce our rare earth concentrate, which comprises 15% of global rare earth content today.”

Recent Business Highlights

Completed its Business Combination with Fortress Value Acquisition Corp. on November 17, 2020, resulting in the listing of MP Materials shares on the New York Stock Exchange under the symbol “MP”
Through the business combination and related PIPE transaction, MP Materials raised $545 million to fully fund its three-stage business plan to restore the full rare earth materials supply chain to the U.S., closing a critical defense and economic security gap
On November 17, 2020, the Department of Defense (“DoD”) announced that MP Materials was awarded a Defense Production Act Title III technology investment agreement, which includes a $9.6 million DoD contribution to MP’s Stage II optimization
Completed front-end engineering design (FEED) and all circuit designs for Stage II optimization

Q3 Financial and Operating Highlights

Third quarter revenue increased 52% year-over-year, to $41.0 million, driven primarily by higher realized pricing and inclusive of an $8.9 million tariff refund received
Adjusted EBITDA for the third quarter of 2020 increased 159% year-over-year to $11.6 million; the Adjusted EBITDA calculation excludes the $8.9 million benefit from the tariff refund
In the third quarter, MP produced 10,197 metric tons of contained rare earth oxide (“REO”) in concentrate, higher both year-over-year and sequentially; production cost of $1,389 per metric ton of REO was down modestly on a sequential basis
MP sold 9,429 metric tons of REO in the quarter at an average realized price of $3,393 per metric ton; higher realized pricing was driven by higher market prices and the lifting of certain import duties; sold volumes fluctuate quarter to quarter based on production and shipment timing and MP continues to foresee 100% sell through of its production

Third Quarter and Year-To-Date 2020 Financial Results



MP MINE OPERATIONS LLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS	Three months ended						Nine months ended
(Unaudited)	September 30,						September 30,
		2020			2019			2020			2019
	(in thousands)
Product Sales (including sales to related parties)	$	41,022		$	26,916		$	92,132		$	52,363
Operating costs and expenses (excluding one-time settlement charge)		(24,868	)		(25,008	)		(67,961	)		(61,597	)
One-time settlement charge		-			-			(66,615	)		-
Operating Income/(Loss)		16,154			1,908			(42,444	)		(9,234	)
Other income, net		61			1,729			298			4,114
Interest expense		(1,713	)		(825	)		(3,582	)		(2,671	)
Income/(Loss) before income taxes		14,502			2,812			(45,728	)		(7,791	)
Income tax benefit/(expense)		125			-			(211	)		(1	)
Net Income/(Loss)	$	14,627		$	2,812		$	(45,939	)	$	(7,792	)


MP MINE OPERATIONS LLC
RECONCILIATION OF NET INCOME/(LOSS) TO ADJUSTED EBITDA
(Unaudited)	Three months ended					Six months ended						Nine months ended
	September 30,					June 30,						September 30,
		2020			2019		2020			2019			2020			2019
	(in thousands)
Net Income/(Loss)	$	14,627		$	2,812	$	(60,566	)	$	(10,604	)	$	(45,939	)	$	(7,792	)
Adjusted for:
Depreciation, depletion and amortization		2,179			1,356		2,653			2,379			4,832			3,735
Interest expense		1,713			825		1,869			1,846			3,582			2,671
Income tax expense/(benefit)		(125	)		-		336			1			211			1
Transaction-related costs¹		80			-		1,572			-			1,652			-
Accretion of ARO and environmental reserves		563			526		1,128			1,051			1,691			1,577
Other non-recurring costs²		479			125		259			125			738			250
Royalties to SNR³		1,055			564		853			521			1,908			1,085
One-time settlement charge⁴		-			-		66,615			-			66,615			-
Tariff credits⁵		(8,901	)		-		(1,446	)		-			(10,347	)		-
Other income, net⁶		(61	)

MP Materials Announces Financial Results for the Third Quarter and Year-To-Date Ended September 30, 2020