MP Materials (MP) Earnings Call Presentation

Transaction Overview - The Department of Defense (DoD) is making a multi-billion-dollar commitment to accelerate American rare earth supply chain independence[8] - The DoD is investing $400 million in convertible preferred equity and providing a $150 million loan[8] - The DoD will receive 15% ownership pre-close due to warrant exercisability at $30031[12] NdPr Price Floor Commitment - A $110/kg NdPr price floor is established, with shared upside potential[9] - The price floor applies to all NdPr products, including oxide, metal, and concentrate[13] - Once the 10X facility reaches target capacity, the DoD receives 30% of the upside above $110/kg[13] 10X Magnet Manufacturing Expansion - MP Materials will construct a new "10X" facility[10] - The 10X facility will target 10000 MT of annual capacity[14] - The DoD has a 100% offtake commitment for defense consumption and commercial syndication[14] - The 10X facility has a cost-plus pricing model with a $140 million minimum EBITDA guarantee, escalating at 20% annually[14] Financial Projections - At a $60/kg NdPr price, the illustrative annual Materials Segment EBITDA is $160 million[16] - At a $110/kg NdPr price, the illustrative annual Materials Segment EBITDA is $410 million[16] - At a $200/kg NdPr price, the illustrative annual Materials Segment EBITDA is $790 million[16] - The illustrative annual 10X Facility EBITDA is $140 million at minimum, with potential upside to $255 million or more[19]