Q2 2024 MP Materials Corp Earnings Call Transcript
Key Points
- MP Materials Corp (MP) achieved its second-best quarter of upstream productivity measured by REO produced per hour of uptime.
- Production momentum coming out of Q2 and into Q3 has been very strong, with Q3 on track for record levels of upstream production.
- NdPr production more than doubled in Q2 to over 270 tons, with expectations of another 50% increase in Q3.
- MP Materials Corp (MP) signed an agreement for a substantial commitment of NdPr oxide with a new customer, a household name global automaker.
- The company expects to earn approximately $190 million of incremental cash sources from additional customer prepayments and tax credits by the end of 2025, maintaining a strong balance sheet.
- Q2 was a challenging quarter operationally and financially due to rig damage in a thickener, impacting operations for about three weeks.
- The unanticipated downtime led to a significant reduction in REO production and financial performance.
- The company posted an adjusted EBITDA loss of $27.1 million and an adjusted diluted loss per share of $0.17 in the quarter.
- Realized pricing for REO and NdPr oxide is expected to be down low-single-digit percentages sequentially in Q3.
- Mechanical reliability of new assets in the midstream operation remains a significant challenge, impacting production efficiency.
Good afternoon, and welcome to the MP Materials second-quarter 2024 earnings call and webcast. My name is Harry, and I'll be your operator today. (Operator Instructions)
I would now like to hand the conference over to Martin Sheehan, Head of Investor Relations. Thank you. Please go ahead.
Thank you, operator, and good afternoon, everyone. Welcome to the MP Materials second-quarter 2024 earnings conference call. With me today from MP Materials are Jim Litinsky, Founder, Chairman, and Chief Executive Officer; Michael Rosenthal, Founder and Chief Operating Officer; and Ryan Corbette, Chief Financial Officer.
As a reminder, today's discussion will contain forward-looking statements relating to future events and expectations that are subject to various assumptions and caveats. Factors that may cause the Company's actual results to differ materially from these statements are included in today's presentation, earnings release, and in our SEC filings.
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