MP Materials Corp 10-Q for FY2024 Q3

MP Materials Corp. (MP)

10-Q 2024-11-08 For: 2024-09-30

Added on April 11, 2026

About this 10-Q

MP Materials Corp filed this 10-Q on November 8, 2024, covering the quarter ended September 30, 2024 (FY2024 Q3).

Headline figures

Quarter ended September 30, 2024, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $62.93M; up 19.8% from $52.52M a year earlier
Net loss: $25.52M; compared with a net loss of $4.28M a year earlier
Diluted EPS: -$0.16; compared with -$0.02 a year earlier

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Delaware						84-4465489
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value of $0.0001 per share	MP	New York Stock Exchange


			Page
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements			1
Condensed Consolidated Balance Sheets (unaudited)			1
Condensed Consolidated Statements of Operations (unaudited)			2
Condensed Consolidated Statements of Comprehensive Income (Loss) (unaudited)			3
Condensed Consolidated Statements of Changes in Stockholders’ Equity (unaudited)			4
Condensed Consolidated Statements of Cash Flows (unaudited)			5
Notes to Condensed Consolidated Financial Statements (unaudited)			6
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			23
Item 3. Quantitative and Qualitative Disclosures About Market Risk			37
Item 4. Controls and Procedures			37

PART II—OTHER INFORMATION
Item 1. Legal Proceedings			37
Item 1A. Risk Factors			37
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			38

Item 4. Mine Safety Disclosures			38
Item 5. Other Information			38
Item 6. Exhibits			39
Signatures			40



(in thousands, except share and per share data)	September 30, 2024		December 31, 2023
Assets
Current assets
Cash and cash equivalents	$	284,434	$	263,351
Short-term investments	582,056		734,493
Total cash, cash equivalents and short-term investments	866,490		997,844
Accounts receivable, net of allowance for credit losses of $0 and $0, respectively (including related party)	14,549		10,029
Inventories	116,699		95,182

Government grant receivable	7,846		19,302
Prepaid expenses and other current assets	11,599		8,820
Total current assets	1,017,183		1,131,177
Non-current assets
Property, plant and equipment, net	1,230,517		1,158,054
Operating lease right-of-use assets	9,004		10,065
Inventories	19,825		13,350
Equity method investment	8,962		9,673
Intangible assets, net	7,970		8,881
Other non-current assets	6,825		5,252
Total non-current assets	1,283,103		1,205,275
Total assets	$	2,300,286	$	2,336,452
Liabilities and stockholders’ equity
Current liabilities
Accounts and construction payable	$	21,711	$	27,995
Accrued liabilities	66,224		73,939

Deferred revenue	50,000		—
Other current liabilities	8,854		6,616
Total current liabilities	146,789		108,550
Non-current liabilities
Asset retirement obligations	5,856		5,518
Environmental obligations	16,506		16,545
Long-term debt, net	937,634		681,980
Operating lease liabilities	6,016		6,829
Deferred government grant	19,836		17,433
Deferred income taxes	98,541		130,793
Other non-current liabilities	4,568		3,025
Total non-current liabilities	1,088,957		862,123
Total liabilities	1,235,746		970,673
Commitments and contingencies (Note 13)
Stockholders’ equity:
Preferred stock ($0.0001 par value, 50,000,000 shares authorized, none issued and outstanding in either period)	—		—
Common stock ($0.0001 par value, 450,000,000 shares authorized, 178,439,486 and 178,082,383 shares issued, and 163,189,704 and 178,082,383 shares outstanding, as of September 30, 2024, and December 31, 2023, respectively)	18		17
Additional paid-in capital	948,687		979,891
Retained earnings	342,644		385,726
Accumulated other comprehensive income	296		145
Treasury stock, at cost, 15,249,782 and 0 shares, respectively	(227,105)		—
Total stockholders’ equity	1,064,540		1,365,779
Total liabilities and stockholders’ equity	$	2,300,286	$	2,336,452


	For the three months ended September 30,				For the nine months ended September 30,
(in thousands, except share and per share data)	2024		2023		2024		2023
Revenue:
Rare earth concentrate (including related party)	$	43,053	$	52,472	$	107,555	$	212,139
NdPr oxide and metal (including related party)	19,179		—		34,037		—
Other revenue	695		44		1,277		101
Total revenue	62,927		52,516		142,869		212,240

Operating costs and expenses:
Cost of sales (excluding depreciation, depletion and amortization) (including related party)	57,266		22,217		134,323		69,137
Selling, general and administrative	21,525		19,561		64,226		57,829
Depreciation, depletion and amortization	19,344		16,751		55,939		37,076
Start-up costs	1,627		7,336		4,287		16,125
Advanced projects and development	2,051		2,873		8,143		9,586


Other operating costs and expenses	654		1,314		1,415		6,578
Total operating costs and expenses	102,467		70,052		268,333		196,331
Operating income (loss)	(39,540)		(17,536)		(125,464)		15,909
Interest expense, net	(6,646)		(1,396)		(16,248)		(4,147)
Gain on early extinguishment of debt	—		—		46,265		—
Other income, net	11,320		14,456		36,061		41,970
Income (loss) before income taxes	(34,866)		(4,476)		(59,386)		53,732
Income tax benefit (expense)	9,350		200		16,304		(13,166)
Net income (loss)	$	(25,516)	$	(4,276)	$	(43,082)	$	40,566

Earnings (loss) per share:
Basic	$	(0.16)	$	(0.02)	$	(0.26)	$	0.23
Diluted	$	(0.16)	$	(0.02)	$	(0.44)	$	0.22

Weighted-average shares outstanding:
Basic	164,149,348		177,231,717		168,002,773		177,034,068
Diluted	164,149,348		177,231,717		172,066,214		193,632,662


☑						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


	For the three months ended September 30,				For the nine months ended September 30,
(in thousands)	2024		2023		2024		2023
Net income (loss)	$	(25,516)	$	(4,276)	$	(43,082)	$	40,566
Other comprehensive income (loss), net of tax:

Change in net unrealized gains (losses) on available-for-sale securities	388		134		203		(221)


Foreign currency translation loss	(2)		—		(52)		—
Total comprehensive income (loss)	$	(25,130)	$	(4,142)	$	(42,931)	$	40,345


	Three months ended September 30, 2024 and 2023
	Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders’ Equity
(in thousands, except share data)	Shares	Amount		Shares	Amount
Balance as of July 1, 2024	—	$	—	165,331,382	$	18	$	943,508	$	368,160	$	(90)	$	(202,558)	$	1,109,038
Stock-based compensation	—	—		83,850	—		5,632		—		—		—		5,632
Shares used to settle payroll tax withholding	—	—		(31,707)	—		(453)		—		—		—		(453)
Repurchases of common stock	—	—		(2,237,394)	—		—		—		—		(24,547)		(24,547)

Common stock issued to acquire intangible asset	—	—		43,573	—		—		—		—		—		—

Net loss	—	—		—	—		—		(25,516)		—		—		(25,516)
Other comprehensive income, net of tax	—	—		—	—		—		—		386		—		386
Balance as of September 30, 2024	—	$	—	163,189,704	$	18	$	948,687	$	342,644	$	296	$	(227,105)	$	1,064,540

Balance as of July 1, 2023	—	$	—	177,626,668	$	17	$	958,819	$	406,261	$	(166)	$	—	$	1,364,931
Stock-based compensation	—	—		37,236	—		6,665		—		—		—		6,665
Shares used to settle payroll tax withholding	—	—		(13,808)	—		(344)		—		—		—		(344)
Common stock issued to acquire intangible asset	—	—		152,504	—		8,963		—		—		—		8,963
Net loss	—	—		—	—		—		(4,276)		—		—		(4,276)
Other comprehensive income, net of tax	—	—		—	—		—		—		134		—		134
Balance as of September 30, 2023	—	$	—	177,802,600	$	17	$	974,103	$	401,985	$	(32)	$	—	$	1,376,073

	Nine months ended September 30, 2024 and 2023
	Preferred Stock			Common Stock			Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Treasury Stock		Total Stockholders’ Equity
(in thousands, except share data)	Shares	Amount		Shares	Amount
Balance as of January 1, 2024	—	$	—	178,082,383	$	17	$	979,891	$	385,726	$	145	$	—	$	1,365,779
Stock-based compensation	—	—		354,237	1		18,907		—		—		—		18,908
Shares used to settle payroll tax withholding	—	—		(281,370)	—		(4,577)		—		—		—		(4,577)
Repurchases of common stock	—	—		(15,249,782)	—		—		—		—		(227,105)		(227,105)
Common stock issued for services	—	—		240,663	—		3,737		—		—		—		3,737
Common stock issued to acquire intangible asset	—	—		43,573	—		—		—		—		—		—
Capped Call Options related to 2030 Notes	—	—		—	—		(49,271)		—		—		—		(49,271)
Net loss	—	—		—	—		—		(43,082)		—		—		(43,082)
Other comprehensive income, net of tax	—	—		—	—		—		—		151		—		151
Balance as of September 30, 2024	—	$	—	163,189,704	$	18	$	948,687	$	342,644	$	296	$	(227,105)	$	1,064,540

Balance as of January 1, 2023	—	$	—	177,706,608	$	18	$	951,008	$	361,419	$	189	$	—	$	1,312,634
Stock-based compensation	—	—		149,922	—		20,607		—		—		—		20,607
Shares used to settle payroll tax withholding	—	—		(206,434)	(1)		(6,475)		—		—		—		(6,476)
Common stock issued to acquire intangible asset	—	—		152,504	—		8,963		—		—		—		8,963
Net income	—	—		—	—		—		40,566		—		—		40,566
Other comprehensive loss, net of tax	—	—		—	—		—		—		(221)		—		(221)
Balance as of September 30, 2023	—	$	—	177,802,600	$	17	$	974,103	$	401,985	$	(32)	$	—	$	1,376,073


	Location on Unaudited Condensed Consolidated Balance Sheets	September 30, 2024		December 31, 2023
(in thousands)
Operating leases:
Right-of-use assets	Operating lease right-of-use assets	$	9,004	$	10,065

Operating lease liability, current	Other current liabilities	$	1,057	$	959
Operating lease liability, non-current	Operating lease liabilities	6,016		6,829
Total operating lease liabilities		$	7,073	$	7,788

Finance leases:
Right-of-use assets	Other non-current assets	$	1,002	$	591

Finance lease liability, current	Other current liabilities	$	566	$	195
Finance lease liability, non-current	Other non-current liabilities	442		388
Total finance lease liabilities		$	1,008	$	583


Level 1:						Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

Level 2:						Quoted prices in markets that are not active, quoted prices for similar assets or liabilities in active markets, quoted prices or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability and model-based valuation techniques (e.g., the Black-Scholes model) for which all significant inputs are observable in active markets.

Level 3:						Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).


	September 30, 2024
(in thousands)	Carrying Amount		Fair Value		Level 1		Level 2		Level 3
Financial assets:
Cash and cash equivalents	$	284,434	$	284,434	$	284,434	$	—	$	—
Short-term investments	$	582,056	$	582,056	$	582,056	$	—	$	—
Restricted cash	$	1,160	$	1,160	$	1,160	$	—	$	—
Financial liabilities:
2026 Notes	$	208,362	$	192,938	$	192,938	$	—	$	—
2030 Notes	$	729,272	$	823,812	$	823,812	$	—	$	—
Equipment notes	$	3,147	$	3,114	$	—	$	3,114	$	—


	For the three months ended September 30,				Change				For the nine months ended September 30,				Change
(in whole units or dollars, except percentages)	2024		2023		Amount		%		2024		2023		Amount		%
Rare earth concentrate
REO Production Volume (MTs)	13,742		10,766		2,976		28	%	33,977		32,300		1,677		5	%
REO Sales Volume (MTs)	9,729		9,177		552		6	%	24,900		29,663		(4,763)		(16)	%
Realized Price per REO MT	$	4,425	$	5,718	$	(1,293)	(23)	%	$	4,319	$	7,152	$	(2,833)	(40)	%
Separated NdPr products
NdPr Production Volume (MTs)	478		50		428		856	%	881		50		831		N/M
NdPr Sales Volume (MTs)	404		—		404		N/A		674		—		674		N/A
NdPr Realized Price per KG	$	47	N/A		N/A		N/A		$	51	N/A		N/A		N/A

N/M = Not meaningful.
N/A = Not applicable as there was no NdPr sales volume in these periods.


	FY2024						FY2023								FY2022
(in whole units or dollars)	Q3		Q2		Q1		Q4		Q3		Q2		Q1		Q4		Q3
Rare earth concentrate
REO Production Volume (MTs)	13,742		9,084		11,151		9,257		10,766		10,863		10,671		10,485		10,886
REO Sales Volume (MTs)	9,729		5,839		9,332		7,174		9,177		10,271		10,215		10,816		10,676
Realized Price per REO MT	$	4,425	$	4,183	$	4,294	$	5,622	$	5,718	$	6,231	$	9,365	$	8,515	$	11,636
Separated NdPr products
NdPr Production Volume (MTs)	478		272		131		150		50		N/A		N/A		N/A		N/A
NdPr Sales Volume (MTs)	404		136		134		10		—		N/A		N/A		N/A		N/A
NdPr Realized Price per KG	$	47	$	48	$	62	$	70	N/A		N/A		N/A		N/A		N/A

N/A = Not applicable as there was either no NdPr production volume or no NdPr sales volume in these periods.


	For the nine months ended September 30,				Change
(in thousands, except percentages)	2024		2023		$		%
Net cash provided by (used in):
Operating activities	$	(17,128)	$	76,480	$	(93,608)	N/M
Investing activities	$	31,697	$	337,831	$	(306,134)	(91)	%
Financing activities	$	6,037	$	(8,577)	$	14,614	N/M


	September 30, 2024								December 31, 2023
(in thousands)	Amortized Cost Basis		Unrealized Gains		Unrealized Losses		Estimated Fair Value		Amortized Cost Basis		Unrealized Gains		Unrealized Losses		Estimated Fair Value
Cash:
Demand deposits	$	5,406	$	—	$	—	$	5,406	$	2,795	$	—	$	—	$	2,795
Cash equivalents:
Money market funds	118,774		—		—		118,774		61,166		—		—		61,166

U.S. Treasury securities	68,669		13		—		68,682		92,113		14		—		92,127
Commercial paper	84,626		23		—		84,649		93,447		15		—		93,462
Certificates of deposit	6,672		1		—		6,673		13,799		2		—		13,801
Municipal securities	250		—		—		250		—		—		—		—
Total cash equivalents	278,991		37		—		279,028		260,525		31		—		260,556
Total cash and equivalents	284,397		37		—		284,434		263,320		31		—		263,351
Short-term investments:
U.S. agency securities	2,240		—		(1)		2,239		118,370		—		(78)		118,292
U.S. Treasury securities	562,072		429		(8)		562,493		615,962		249		(10)		616,201
Commercial paper	17,320		4		—		17,324		—		—		—		—
Total short-term investments	581,632		433		(9)		582,056		734,332		249		(88)		734,493
Total cash, cash equivalents and short-term investments	$	866,029	$	470	$	(9)	$	866,490	$	997,652	$	280	$	(88)	$	997,844


	September 30, 2024		December 31, 2023
(in thousands)
Raw materials and supplies, including spare parts(1)	$	46,138	$	42,371
Mined ore stockpiles	30,300		28,507
Work in process	24,695		15,019
Finished goods	15,566		9,285
Total current inventories	116,699		95,182
Add: Non-current portion(2)	19,825		13,350
Total inventories	$	136,524	$	108,532


	September 30, 2024		December 31, 2023
(in thousands)
Land and land improvements	$	40,254	$	27,091
Buildings and building improvements	95,236		92,203
Machinery and equipment	564,681		503,145
Assets under construction	262,994		211,848
Mineral rights	438,395		438,395
Property, plant and equipment, gross	1,401,560		1,272,682
Less: Accumulated depreciation and depletion	(171,043)		(114,628)
Property, plant and equipment, net	$	1,230,517	$	1,158,054


(in thousands, except for share and price per share data)
Period	Total Number of Shares Purchased	Average Price Paid per Share(1)		Total Number of Shares Purchased as Part of Publicly Announced Program	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program
7/1/2024 - 7/31/2024	—	$	—	—	$	99,250
8/1/2024 - 8/31/2024	2,237,394	$	10.84	2,237,394	$	374,991
9/1/2024 - 9/30/2024	—	$	—	—	$	374,991
Total	2,237,394	$	10.84	2,237,394	$	374,991


Exhibit No.						Description












































31.1*						CEO Certification pursuant to rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.

31.2*						CFO Certification pursuant to rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes‑Oxley Act of 2002.

32.1**						CEO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.

32.2**						CFO Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes‑Oxley Act of 2002.

95.1*						Mine Safety Disclosure pursuant to Section 1503(a) of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

101.INS						Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.

101.SCH						Inline XBRL Taxonomy Extension Schema Document.

101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.

101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.

104						Cover Page Inline XBRL File (included in Exhibit 101).

*						Filed herewith.

**						Furnished herewith.


	MP MATERIALS CORP.

Dated: November 8, 2024	By:	/s/ Ryan Corbett
		Ryan Corbett
		Chief Financial Officer