MP Materials(MP) - 2024 Q4 - Annual Results

Financial Performance - Generated fourth quarter revenues of $61.0 million, a 48% increase year over year[1] - Revenue for the full year 2024 decreased 20% to $203.9 million compared to 2023[10] - Total revenue for Q4 2024 was $60.986 million, a 48% increase from $41.205 million in Q4 2023, while full-year revenue decreased by 19.6% to $203.855 million from $253.445 million in 2023[32] - Adjusted EBITDA declined by $12.0 million year-over-year to $(10.7) million, driven primarily by elevated production costs[6] - Adjusted EBITDA for Q4 2024 was $(10.707) million, down from $1.300 million in Q4 2023, and for the full year, it decreased to $(50.168) million from $102.502 million in 2023[38] - Adjusted Net Loss decreased by $145.5 million year-over-year to $(74.1) million, driven mainly by lower Adjusted EBITDA[12] - Net loss increased by $6.1 million year-over-year to $(22.3) million, primarily due to higher interest expense and depreciation[8] - Net loss for Q4 2024 was $(22.342) million, compared to $(16.259) million in Q4 2023, and for the full year, the net loss was $(65.424) million compared to a net income of $24.307 million in 2023[32] - The adjusted net loss for the year ended December 31, 2024, was $74.104 million, a significant decline from the adjusted net income of $71.378 million in 2023[45] - Diluted earnings per share for the year ended December 31, 2024, was $(0.57), compared to $0.14 for the year ended December 31, 2023[48] - The adjusted diluted earnings per share for the year ended December 31, 2024, was $(0.44), down from $0.39 in 2023[48] Production and Operations - Achieved record production of 45,455 metric tons of REO in concentrate in 2024[1] - Produced record 1,294 metric tons of NdPr oxide in 2024[1] - The Materials segment operates the Mountain Pass Rare Earth Mine, producing refined rare earth products and concentrate, while the Magnetics segment began production of magnetic precursor products in December 2024[64] - REO Production Volume is a key performance indicator, reflecting the efficiency of the Company's upstream operations, and includes volumes for downstream circuits starting from Q2 2023[66] - NdPr Production Volume is a critical measure of the Company's midstream operations, indicating the efficiency of separating and finishing NdPr oxide[69] - NdPr Sales Volume is calculated in MTs and is a key measure of the Company's ability to convert production into revenue, with future sales expected to include transactions with the Magnetics segment[71] Costs and Expenses - Adjusted EBITDA declined $10.5 million to $(1.3) million year-over-year, impacted by higher production costs[22] - Operating loss for Q4 2024 was $(43.962) million, compared to $(33.628) million in Q4 2023, and for the full year, the operating loss increased to $(169.426) million from $(17.719) million in 2023[32] - Total operating costs and expenses for Q4 2024 were $104.948 million, up from $74.833 million in Q4 2023, and for the full year, they rose to $373.281 million from $271.164 million[32] - The company incurred $1.397 million in start-up costs for Q4 2024, down from $5.205 million in Q4 2023, reflecting a reduction in initial operational expenditures[32][39] - The company incurred $5.5 million in demolition costs in 2023 to remove older facilities at the Mountain Pass site for future expansion in rare earth processing[42] Financial Position - Cash and cash equivalents increased to $282.442 million in 2024 from $263.351 million in 2023, while total cash, cash equivalents, and short-term investments decreased to $850.868 million from $997.844 million[30] - Long-term debt increased significantly to $908.729 million in 2024 from $681.980 million in 2023, reflecting a rise in financial leverage[30] - The company reported a decrease in inventories to $107.905 million in 2024 from $95.182 million in 2023, indicating potential supply chain challenges[30] Strategic Initiatives - The company plans to expand its manufacturing operations downstream to provide a full supply chain solution from materials to magnetics[54] - The company is focusing on its Upstream 60K strategy to increase REO production and achieve run rate production of separated rare earth materials[56] - The company is currently assessing the timing and costs associated with its Stage II and Stage III projects, which are critical for future growth[57] Segment Performance - Materials Segment revenue increased 48% to $61.0 million year-over-year, driven by higher NdPr oxide and metal sales[21] - Magnetics Segment Adjusted EBITDA for Q4 2024 declined by $0.7 million to $(3.061) million compared to Q4 2023, and for the full year, it decreased by $5.7 million to $(12.224) million[26][27] - MP Materials reported a modification in its segment structure, now comprising two operating segments: Materials and Magnetics, effective from Q4 2024[63] Market Indicators - The realized price per REO MT is a significant indicator of market pricing for the Company's concentrate products, calculated based on sales revenue and sales volume[68] - The NdPr Realized Price per KG is an important measure of market pricing for NdPr products, expected to include future sales to the Magnetics segment[72] - Adjusted EBITDA, Adjusted Net Income (Loss), and Adjusted Diluted EPS are used by management for performance comparison and trend analysis, providing insights into financial conditions[61] - The Company emphasizes that non-GAAP measures should not be solely relied upon for assessing financial performance due to their inherent limitations[62] - Segment Adjusted EBITDA is calculated as segment revenues minus significant segment expenses, excluding certain non-recurring and non-cash costs[65]